8-KRegulation FDExhibits & Filings

STARBUCKS CORP 8-K Report, Regulation FD Disclosure (Jan 12, 2012)

Filed January 12, 2012For Securities:SBUX

Summary

Starbucks Corporation (SBUX) filed an 8-K on January 12, 2012, to disclose a significant strategic realignment of its organizational structure, effective at the beginning of fiscal year 2012. This restructuring aims to accelerate global growth by dividing the retail business into three distinct regions: Americas, China and Asia Pacific, and EMEA (Europe, Middle East, Russia, and Africa). Each region will be overseen by a president reporting directly to the CEO, fostering closer collaboration with joint-venture and licensed partners. In conjunction with this organizational shift, Starbucks will also change its financial reporting segments to align with these new operational regions. The company provided a summary of the effects of these reporting changes on historical segment results, noting that the recasting of prior periods does not impact previously reported net income, earnings per share, total assets, or stockholders' equity. Furthermore, certain indirect overhead costs previously allocated to segments are now managed at the corporate level and will be reported as unallocated corporate expenses, reclassifying operating expenses without altering consolidated financial results.

Key Highlights

  • 1Starbucks is implementing a new global organizational structure for its retail business, dividing it into three distinct regions: Americas, China and Asia Pacific, and EMEA.
  • 2Each new region will have a dedicated president reporting to the CEO, aimed at accelerating global growth and improving partner collaboration.
  • 3The company is updating its financial reporting segments to align with the new operational regions, effective for the quarter ended January 1, 2012.
  • 4Prior period financial statements will be recast to reflect the new segment structure, but this does not affect previously reported net income, EPS, assets, or equity.
  • 5Certain indirect overhead costs (merchandising, manufacturing, back-office) will be moved from segment reporting to unallocated corporate expenses.
  • 6This move is intended to better reflect management accountability and operational focus across the new regional structures.
  • 7The filing also includes recast consolidated statements of earnings and segment results as exhibits.

Frequently Asked Questions

The primary reason for the restructuring is to accelerate Starbucks' global growth strategy by creating a more focused and responsive organizational framework, with regional presidents directly overseeing operations and collaborating with local partners.

Starbucks will change its reporting segments to align with the three new operational regions: Americas, China and Asia Pacific, and EMEA. Prior periods will be recast to reflect this new structure, though overall consolidated net income and EPS will remain unchanged.

Certain indirect overhead costs, including merchandising, manufacturing, and back-office shared service costs, are being moved from segment-level reporting to unallocated corporate expenses.

No, the recasting of prior period financial information to align with the new reporting structure does not affect Starbucks' previously reported net income, earnings per share, total assets, or stockholders' equity.