8-KOther EventsExhibits & Filings

STARBUCKS CORP 8-K Report, Corporate Update (Jan 29, 2013)

Filed January 29, 2013For Securities:SBUX

Summary

Starbucks Corporation (SBUX) filed a Current Report on Form 8-K on January 29, 2013, to announce the filing of its Quarterly Report on Form 10-Q for the first quarter ended December 30, 2012. The primary purpose of this 8-K is to disclose changes in the company's reporting segments and the adoption of new accounting guidance for comprehensive income. Specifically, Starbucks has recast its previously issued financial statements to reflect a realignment of certain costs associated with decentralized functions. These costs, previously classified as unallocated corporate expenses, are now attributed to the respective operating segments (Americas, EMEA, CAP, and Channel Development) to better align with improved local decision-making and operational efficiency. Importantly, this segment realignment did not impact the company's historical consolidated net income, earnings per share, assets, or equity. The report also notes the adoption of new FASB guidance requiring the presentation of comprehensive income, which has led to the inclusion of Consolidated Statements of Comprehensive Income for fiscal years 2010, 2011, and 2012.

Key Highlights

  • 1Starbucks filed its Q1'13 10-Q report on January 29, 2013.
  • 2The company has realigned its reportable operating segments from previous structures to Americas, EMEA, CAP, and Channel Development.
  • 3Certain general and administrative and depreciation/amortization expenses have been reallocated from unallocated corporate expenses to specific operating segments.
  • 4This reallocation reflects a decentralization of leadership functions to improve local relevancy and decision-making.
  • 5The segment realignment does not alter historical consolidated financial results (net income, EPS, assets, equity).
  • 6Starbucks adopted new FASB guidance for presenting comprehensive income, adding Consolidated Statements of Comprehensive Income to its filings.
  • 7Prior periods (FY2010, 2011, 2012) have been recast to conform to these reporting changes.

Frequently Asked Questions

This 8-K filing is primarily to announce the filing of Starbucks' first quarter 2013 Form 10-Q and to inform investors about significant changes in how the company reports its financial results by segment. It also highlights the adoption of new accounting standards related to comprehensive income.

The segment realignment, which reallocates certain operational costs to specific geographic segments (Americas, EMEA, CAP, Channel Development), is an internal reporting change. It is designed to improve operational efficiency and local decision-making. Importantly, this change does not affect Starbucks' overall consolidated financial performance, such as net income, earnings per share, total assets, or stockholders' equity for prior periods.

The new FASB guidance requires companies to present comprehensive income in their financial statements. Starbucks has adopted this guidance, which means their filings will now include 'Consolidated Statements of Comprehensive Income.' This change impacts presentation but not the core net income or earnings per share figures.

Yes, Starbucks has recast its historical consolidated financial statements for fiscal years 2010, 2011, and 2012 to conform to the new segment reporting structure and the inclusion of comprehensive income statements. However, the recast does not change the previously reported consolidated net income, earnings per share, total assets, or stockholders' equity.