8-KRegulation FDExhibits & Filings

STARBUCKS CORP 8-K Report, Regulation FD Disclosure (Jan 24, 2013)

Filed January 24, 2013For Securities:SBUX

Summary

Starbucks Corporation (SBUX) filed an 8-K on January 24, 2013, to disclose changes in its organizational structure and financial reporting segments, effective at the beginning of fiscal 2012 and fiscal 2013. The company realigned its operations into four reportable segments: Americas, EMEA, CAP, and Channel Development. This strategic shift aims to accelerate global growth and improve local decision-making and efficiency. As a result of this realignment, certain leadership functions previously decentralized have been further decentralized to align with the respective operating segment presidents. Consequently, associated general and administrative expenses and depreciation/amortization costs that were previously classified as unallocated corporate expenses are now allocated to the relevant operating segments. Importantly, these changes are retrospective and do not impact Starbucks' previously reported consolidated net income, earnings per share, total assets, or stockholders' equity. The company is providing this information to ensure consistency in financial reporting for the investment community, with financial statements reflecting these changes beginning with the quarter ended December 30, 2012.

Key Highlights

  • 1Starbucks has reorganized its operating structure into four reportable segments: Americas, EMEA, CAP, and Channel Development, effective fiscal 2012.
  • 2Further decentralization of leadership functions in retail marketing, category management, global store development, and partner resources occurred at the beginning of fiscal 2013.
  • 3Associated general and administrative (G&A) and depreciation/amortization expenses are now allocated to specific operating segments, moving from 'Other' unallocated corporate expenses.
  • 4Historical financial statements for fiscal years 2010, 2011, and 2012 have been recast to reflect these new segment classifications.
  • 5This recasting of financial information is for reporting consistency and does not alter previously reported consolidated financial results (net income, EPS, assets, equity).
  • 6The changes are effective for financial reporting periods beginning with the quarter ended December 30, 2012.
  • 7The filing is a Regulation FD disclosure to provide updated segment information to the financial community.

Frequently Asked Questions

Effective at the beginning of fiscal 2012, Starbucks realigned its operations into four reportable segments: Americas, EMEA (Europe, Middle East, and Africa), CAP (China, Asia Pacific), and Channel Development.

Certain leadership functions related to retail marketing, category management, store development, and partner resources have been decentralized to align with segment presidents. The expenses (general and administrative, depreciation, and amortization) associated with these functions are now allocated to the respective operating segments they support, rather than being reported as unallocated corporate expenses.

No, the recasting of historical financial information and the reallocation of expenses do not impact Starbucks' previously reported consolidated net income, earnings per share, total assets, or stockholders' equity for any prior periods. The changes are purely for improved segment reporting and operational alignment.

The new reporting structure and segment classifications will be reflected in Starbucks' financial statements beginning with the fiscal quarter ended December 30, 2012. Prior periods have been adjusted retrospectively for comparative purposes.