Financial
Releases

SEATTLE--(BUSINESS WIRE)-- Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal third quarter ended June 30, 2024. GAAP results in fiscal 2024 and fiscal 2023 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q3 Fiscal 2024 Highlights

• Global comparable store sales declined 3%, driven by a 5% decline in comparable transactions, partially offset by a 2% increase in average ticket
  • North America comparable store sales declined 2%, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket; U.S. comparable store sales declined 2%, driven by a 6% decline in comparable transactions, partially offset by a 4% increase in average ticket
  • International comparable store sales declined 7%, driven by a 4% decline in average ticket and a 3% decline in comparable transactions; China comparable store sales declined 14%, driven by a 7% decline in both average ticket and comparable transactions
• The company opened 526 net new stores in Q3, ending the period with 39,477 stores: 52% company-operated and 48% licensed
  • At the end of Q3, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,730 and 7,306 stores in the U.S. and China, respectively
• Consolidated net revenues declined 1% to $9.1 billion, or a 1% increase on a constant currency basis
• GAAP operating margin contracted 60 basis points year-over-year to 16.7%, primarily driven by increased promotional activity, investments in store partner wages and benefits, and deleverage. This contraction was partially offset by pricing and in-store operational efficiencies.
  • Non-GAAP operating margin contracted 70 basis points year-over-year to 16.7% on a constant currency basis
• GAAP earnings per share of $0.93 declined 6% over prior year
  • Non-GAAP earnings per share of $0.93 declined 7% over prior year, or declined 6% on a constant currency basis
• Starbucks Rewards loyalty program 90-day active members in the U.S. totaled 33.8 million, up 7% year-over-year

“Our three-part action plan is beginning to work and driving operational improvements that we expect to improve financial performance,” commented Laxman Narasimhan, chief executive officer. “Our growing culture of focused innovation and relentless execution continues to enhance our capabilities, while helping return the business to sustainable growth,” Narasimhan added.

“Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment,” commented Rachel Ruggeri, chief financial officer. “Collectively, our disciplined approach enables us to preserve both balance sheet strength and flexibility, positioning us to successfully navigate through the current macroeconomic environment,” Ruggeri added.

Q3 North America Segment Results

	Quarter Ended
($ in millions)	Jun 30, 2024		Jul 2, 2023		Change (%)
Change in Comparable Store Sales (1)	(2)%		7%
Change in Transactions	(6)%		1%
Change in Ticket	3%		6%
Store Count	18,198		17,592		3%
Revenues	$6,816.7		$6,737.8		1%
Operating Income	$1,432.7		$1,463.9		(2)%
Operating Margin	21.0%		21.7%		(70) bps

(1)

Includes only Starbucks ® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed.

Net revenues for the North America segment increased 1% over Q3 FY23 to $6.8 billion in Q3 FY24, primarily driven by net new company-operated store growth of 5% over the past 12 months, as well as growth in our licensed store business. This increase was partially offset by a 2% decline in comparable store sales, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket.

Operating income decreased to $1.4 billion in Q3 FY24 compared to $1.5 billion in Q3 FY23. Operating margin of 21.0% contracted from 21.7% in the prior year, primarily driven by investments in store partner wages and benefits, increased promotional activity, and deleverage. This contraction was partially offset by pricing and in-store operational efficiencies.

Q3 International Segment Results

	Quarter Ended
($ in millions)	Jun 30, 2024		Jul 2, 2023		Change (%)
Change in Comparable Store Sales (1)	(7)%		24%
Change in Transactions	(3)%		21%
Change in Ticket	(4)%		2%
Store Count	21,279		19,630		8%
Revenues	$1,842.1		$1,972.9		(7)%
Operating Income	$287.5		$374.5		(23)%
Operating Margin	15.6%		19.0%		(340) bps

(1)

Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed.

Net revenues for the International segment declined 7% over Q3 FY23 to $1.8 billion in Q3 FY24, primarily driven by an approximate 5% unfavorable impact from foreign currency translation and a 7% decline in comparable store sales, driven by a 4% decline in average ticket and 3% decline in comparable transactions. Another factor was lower product and equipment sales to, and royalty revenues from, our licensees. This decline was partially offset by net new company-operated store growth of 11% over the past 12 months.

Operating income decreased to $287.5 million in Q3 FY24 compared to $374.5 million in Q3 FY23. Operating margin of 15.6% contracted from 19.0% in the prior year, primarily driven by promotional activities, investments in store partner wages and benefits, and strategic investments. This contraction was partially offset by in-store operational efficiencies.

Q3 Channel Development Segment Results

	Quarter Ended
($ in millions)	Jun 30, 2024		Jul 2, 2023		Change (%)
Revenues	$438.3		$448.8		(2)%
Operating Income	$235.2		$208.0		13%
Operating Margin	53.7%		46.3%		740 bps

Net revenues for the Channel Development segment declined 2% over Q3 FY23 to $438.3 million in Q3 FY24, primarily due to a decline in revenue in the Global Coffee Alliance, from SKU optimization and following the sale of Seattle's Best Coffee brand in the prior year. This decline was partially offset by an increase in global ready-to-drink revenue.

Operating income increased to $235.2 million in Q3 FY24 compared to $208.0 million in Q3 FY23. Operating margin of 53.7% expanded from 46.3% in the prior year, primarily due to sales mix shift, lower product costs related to the Global Coffee Alliance, and strength in our North American Coffee Partnership joint venture income.

Fiscal 2024 Financial Targets

The company will discuss fiscal year 2024 financial targets during its Q3 FY24 earnings conference call starting today at 2:00 p.m. Pacific Time. These items can be accessed on the company's Investor Relations website during and after the call. The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.

Company Update

1. In May, the company announced new commitments to further support LGBTQIA2+ partners and communities, including an expanded partnership with the National Center for Transgender Equality, providing transgender, non-binary, and gender non-conforming partners support for name and gender marker changes.
2. In May, Satya Nadella resigned from the company's Board of Directors (the “Board”), stating, "I have the utmost confidence in Laxman and our senior leadership team. Their unwavering commitment and strategic acumen assure me that Starbucks is in capable hands, poised for a future filled with innovation and success." Following his departure, the size of the Board was reduced to ten members.
3. In June, the company announced a partnership with Grubhub, rolling out Starbucks Delivery with Grubhub in select U.S. markets, with the goal of national availability in all 50 states by August 2024. Offering customers the convenience of ordering from Starbucks through three leading delivery platforms, Starbucks Delivery is expected to approach $1 billion in U.S. revenue this fiscal year, doubling in just two years and continuing to be a growing part of our business.
4. In June, the company announced Starbucks Studios. This new initiative will produce original entertainment and amplify stories to advance further our company mission to foster human connection and joy, elevating the brand experience.
5. In June, the company launched loyalty partnerships with Marriott Bonvoy and Hilton Honors, in the U.S. and China, respectively. The partnerships allow Starbucks ^® Rewards members the ability to link accounts and unlock exclusive benefits for travel and coffee, as well as earn additional benefits, creating more value for our members and support program growth.
6. The Board of Directors declared a cash dividend of $0.57 per share, payable on August 30, 2024, to shareholders of record on August 16, 2024. The company had 57 consecutive quarters of dividend payouts with CAGR of approximately 20% over that time period, demonstrating the company's commitment to consistent value creation for shareholders.

Conference Call

Starbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Laxman Narasimhan, ceo, and Rachel Ruggeri, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com . A replay of the webcast will be available until end of day Friday, September 13, 2024.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 39,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com .

Forward-Looking Statements

Certain statements contained herein and in our investor conference call related to these results are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as:

• our ability to preserve, grow, and leverage our brands, including the risk of negative responses by consumers (such as boycotts or negative publicity campaigns) or governmental actors (such as retaliatory legislative treatment) who object to certain actions taken or not taken by the Company, which responses could adversely affect our brand value;
• the acceptance of the company’s products and changes in consumer preferences, consumption, or spending behavior and our ability to anticipate or react to them; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, platforms, reformulations, or other innovations;
• our anticipated operating expenses, including our anticipated total capital expenditures;
• the costs associated with, and the successful execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our Triple Shot Reinvention with Two Pumps Plan ;
• the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts;
• the ability of our business partners, suppliers and third-party providers to fulfill their responsibilities and commitments;
• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients;
• the impact of adverse weather conditions or natural disasters;
• the impact of significant increases in logistics costs;
• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions, or dynamics specific to our relationships with such parties;
• unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, or deflation;
• inherent risks of operating a global business including geopolitical instability, local labor policies and conditions, including labor strikes and work stoppages, protectionist trade policies, or economic or trade sanctions, and compliance with local trade practices and other regulations;
• failure to attract or retain key executive or partner talent or successfully transition executives;
• the potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling;
• negative publicity related to our company, products, brands, marketing, executive leadership, partners, board of directors, founder, operations, business performance, expansions, initiatives, strategies, investments, plans, or prospects;
• potential negative effects of a material breach, failure, or corruption of our information technology systems or those of our direct and indirect business partners, suppliers or third-party providers, or failure to comply with data protection laws;
• our environmental, community, and farmer promises and any reaction related thereto, such as the rise in opposition to “ESG” and inclusion and diversity efforts;
• risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value;
• the impact of foreign currency translation, particularly a stronger U.S. dollar;
• the impact of substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;
• the impact of changes in U.S. tax law and related guidance and regulations that may be implemented, including on tax rates;
• the impact of health epidemics, pandemics, or other public health events on our business and financial results, and the risk of negative economic impacts and related regulatory measures or voluntary actions that may be put in place, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions;
• failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations; and
• the impact of significant legal disputes and proceedings, or government investigations.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

Key Metrics

The company's financial results and long-term growth model will continue to be driven by new store openings, comparable store sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.

STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data)
	Quarter Ended											Quarter Ended
	Jun 30,				Jul 2,				%			Jun 30,			Jul 2,
	2024				2023				Change			2024			2023
												As a % of total net revenues
Net revenues:
Company-operated stores	$	7,516.0			$	7,556.7			(0.5	)%		82.5	%		82.4	%
Licensed stores		1,129.0				1,136.2			(0.6	)		12.4			12.4
Other		468.9				475.4			(1.4	)		5.1			5.2
Total net revenues		9,113.9				9,168.3			(0.6	)		100.0			100.0
Product and distribution costs		2,740.9				2,864.2			(4.3	)		30.1			31.2
Store operating expenses		3,829.1				3,697.6			3.6			42.0			40.3
Other operating expenses		143.9				138.7			3.7			1.6			1.5
Depreciation and amortization expenses		380.4				342.2			11.2			4.2			3.7
General and administrative expenses		576.0				604.3			(4.7	)		6.3			6.6
Restructuring and impairments		—				7.1			nm			—			0.1
Total operating expenses		7,670.3				7,654.1			0.2			84.2			83.5
Income from equity investees		73.9				69.7			6.0			0.8			0.8
Operating income		1,517.5				1,583.9			(4.2	)		16.7			17.3
Interest income and other, net		28.1				21.3			31.9			0.3			0.2
Interest expense		(141.3	)			(140.9	)		0.3			(1.6	)		(1.5	)
Earnings before income taxes		1,404.3				1,464.3			(4.1	)		15.4			16.0
Income tax expense		348.6				322.4			8.1			3.8			3.5
Net earnings including noncontrolling interests		1,055.7				1,141.9			(7.5	)		11.6			12.5
Net earnings attributable to noncontrolling interests		0.9				0.2			350.0			0.0			0.0
Net earnings attributable to Starbucks	$	1,054.8			$	1,141.7			(7.6	)		11.6	%		12.5	%
Net earnings per common share - diluted	$	0.93			$	0.99			(6.1	)%
Weighted avg. shares outstanding - diluted		1,135.8				1,150.5
Cash dividends declared per share	$	0.57			$	0.53
Supplemental Ratios:
Store operating expenses as a % of company-operated store revenues												50.9	%		48.9	%
Effective tax rate including noncontrolling interests												24.8	%		22.0	%

	Three Quarters Ended											Three Quarters Ended
	Jun 30,				Jul 2,				%			Jun 30,			Jul 2,
	2024				2023				Change			2024			2023
												As a % of total net revenues
Net revenues:
Company-operated stores	$	22,323.8			$	21,782.4			2.5	%		82.4	%		81.9	%
Licensed stores		3,375.7				3,325.2			1.5			12.5			12.5
Other		1,402.8				1,494.4			(6.1	)		5.2			5.6
Total net revenues		27,102.3				26,602.0			1.9			100.0			100.0
Product and distribution costs		8,370.2				8,476.1			(1.2	)		30.9			31.9
Store operating expenses		11,404.7				10,998.9			3.7			42.1			41.3
Other operating expenses		427.1				394.1			8.4			1.6			1.5
Depreciation and amortization expenses		1,117.6				1,011.2			10.5			4.1			3.8
General and administrative expenses		1,878.6				1,805.6			4.0			6.9			6.8
Restructuring and impairments		—				21.8			nm			—			0.1
Total operating expenses		23,198.2				22,707.7			2.2			85.6			85.4
Income from equity investees		197.8				179.0			10.5			0.7			0.7
Gain from sale of assets		—				91.3			nm			—			0.3
Operating income		4,101.9				4,164.6			(1.5	)		15.1			15.7
Interest income and other, net		96.0				51.1			87.9			0.4			0.2
Interest expense		(422.0	)			(406.9	)		3.7			(1.6	)		(1.5	)
Earnings before income taxes		3,775.9				3,808.8			(0.9	)		13.9			14.3
Income tax expense		923.2				903.4			2.2			3.4			3.4
Net earnings including noncontrolling interests		2,852.7				2,905.4			(1.8	)		10.5			10.9
Net earnings attributable to noncontrolling interests		1.0				0.2			400.0			0.0			0.0
Net earnings attributable to Starbucks	$	2,851.7			$	2,905.2			(1.8	)		10.5	%		10.9	%
Net earnings per common share - diluted	$	2.51			$	2.52			(0.4	)%
Weighted avg. shares outstanding - diluted		1,137.3				1,152.0
Cash dividends declared per share	$	1.71			$	1.59
Supplemental Ratios:
Store operating expenses as a % of company-operated store revenues												51.1	%		50.5	%
Effective tax rate including noncontrolling interests												24.4	%		23.7	%

Segment Results ( in millions )

North America
	Jun 30,			Jul 2,			%			Jun 30,			Jul 2,
	2024			2023			Change			2024			2023
Quarter Ended										As a % of North America total net revenues
Net revenues:
Company-operated stores	$	6,135.0		$	6,080.6		0.9	%		90.0	%		90.2	%
Licensed stores		681.3			655.8		3.9			10.0			9.7
Other		0.4			1.4		(71.4	)		0.0			0.0
Total net revenues		6,816.7			6,737.8		1.2			100.0			100.0
Product and distribution costs		1,831.9			1,885.4		(2.8	)		26.9			28.0
Store operating expenses		3,131.1			2,990.1		4.7			45.9			44.4
Other operating expenses		69.5			67.8		2.5			1.0			1.0
Depreciation and amortization expenses		266.6			230.4		15.7			3.9			3.4
General and administrative expenses		84.9			93.1		(8.8	)		1.2			1.4
Restructuring and impairments		—			7.1		nm			—			0.1
Total operating expenses		5,384.0			5,273.9		2.1			79.0			78.3
Operating income	$	1,432.7		$	1,463.9		(2.1	)%		21.0	%		21.7	%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues										51.0	%		49.2	%
Three Quarters Ended
Net revenues:
Company-operated stores	$	18,240.7		$	17,693.9		3.1	%		89.8	%		90.0	%
Licensed stores		2,074.1			1,973.2		5.1			10.2			10.0
Other		2.8			2.6		7.7			0.0			0.0
Total net revenues		20,317.6			19,669.7		3.3			100.0			100.0
Product and distribution costs		5,623.5			5,624.7		—			27.7			28.6
Store operating expenses		9,316.2			8,973.2		3.8			45.9			45.6
Other operating expenses		214.0			196.7		8.8			1.1			1.0
Depreciation and amortization expenses		774.2			673.5		15.0			3.8			3.4
General and administrative expenses		287.9			286.6		0.5			1.4			1.5
Restructuring and impairments		—			20.7		nm			—			0.1
Total operating expenses		16,215.8			15,775.4		2.8			79.8			80.2
Operating income	$	4,101.8		$	3,894.3		5.3	%		20.2	%		19.8	%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues										51.1	%		50.7	%

International
	Jun 30,			Jul 2,			%			Jun 30,			Jul 2,
	2024			2023			Change			2024			2023
Quarter Ended										As a % of International total net revenues
Net revenues:
Company-operated stores	$	1,381.0		$	1,476.1		(6.4	)%		75.0	%		74.8	%
Licensed stores		447.7			480.4		(6.8	)		24.3			24.3
Other		13.4			16.4		(18.3	)		0.7			0.8
Total net revenues		1,842.1			1,972.9		(6.6	)		100.0			100.0
Product and distribution costs		637.1			677.3		(5.9	)		34.6			34.3
Store operating expenses		698.0			707.5		(1.3	)		37.9			35.9
Other operating expenses		58.8			54.3		8.3			3.2			2.8
Depreciation and amortization expenses		82.7			83.1		(0.5	)		4.5			4.2
General and administrative expenses		80.5			77.0		4.5			4.4			3.9
Total operating expenses		1,557.1			1,599.2		(2.6	)		84.5			81.1
Income from equity investees		2.5			0.8		212.5			0.1			0.0
Operating income	$	287.5		$	374.5		(23.2	)%		15.6	%		19.0	%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues										50.5	%		47.9	%
Three Quarters Ended
Net revenues:
Company-operated stores	$	4,083.1		$	4,088.5		(0.1	)%		75.0	%		74.2	%
Licensed stores		1,301.6			1,352.0		(3.7	)		23.9			24.5
Other		60.9			67.3		(9.5	)		1.1			1.2
Total net revenues		5,445.6			5,507.8		(1.1	)		100.0			100.0
Product and distribution costs		1,923.5			1,903.8		1.0			35.3			34.6
Store operating expenses		2,088.5			2,025.7		3.1			38.4			36.8
Other operating expenses		168.8			155.0		8.9			3.1			2.8
Depreciation and amortization expenses		251.0			250.8		0.1			4.6			4.6
General and administrative expenses		253.9			244.9		3.7			4.7			4.4
Total operating expenses		4,685.7			4,580.2		2.3			86.0			83.2
Income from equity investees		2.9			2.0		45.0			0.1			0.0
Operating income	$	762.8		$	929.6		(17.9	)%		14.0	%		16.9	%
Supplemental Ratio:
Store operating expenses as a % of company-operated store revenues										51.1	%		49.5	%

Channel Development
	Jun 30,			Jul 2,			%			Jun 30,			Jul 2,
	2024			2023			Change			2024			2023
Quarter Ended										As a % of Channel Development total net revenues
Net revenues	$	438.3		$	448.8		(2.3	)%
Product and distribution costs		257.7			293.0		(12.0	)		58.8	%		65.3	%
Other operating expenses		15.2			14.8		2.7			3.5			3.3
Depreciation and amortization expenses		—			0.0		nm			—			0.0
General and administrative expenses		1.6			1.9		(15.8	)		0.4			0.4
Total operating expenses		274.5			309.7		(11.4	)		62.6			69.0
Income from equity investees		71.4			68.9		3.6			16.3			15.4
Operating income	$	235.2		$	208.0		13.1	%		53.7	%		46.3	%
Three Quarters Ended
Net revenues	$	1,304.5		$	1,407.7		(7.3	)%
Product and distribution costs		789.3			932.7		(15.4	)		60.5	%		66.3	%
Other operating expenses		43.2			40.6		6.4			3.3			2.9
Depreciation and amortization expenses		—			0.1		nm			—			0.0
General and administrative expenses		5.7			6.2		(8.1	)		0.4			0.4
Total operating expenses		838.2			979.6		(14.4	)		64.3			69.6
Income from equity investees		194.9			177.0		10.1			14.9			12.6
Gain from sale of assets		—			91.3		nm			—			6.5
Operating income	$	661.2		$	696.4		(5.1	)%		50.7	%		49.5	%

Corporate and Other
	Jun 30,				Jul 2,				%
	2024				2023				Change
Quarter Ended
Net revenues	$	16.8			$	8.8			90.9	%
Product and distribution costs		14.2				8.5			67.1
Other operating expenses		0.4				1.8			(77.8	)
Depreciation and amortization expenses		31.1				28.7			8.4
General and administrative expenses		409.0				432.3			(5.4	)
Total operating expenses		454.7				471.3			(3.5	)
Operating loss	$	(437.9	)		$	(462.5	)		(5.3	)%
Three Quarters Ended
Net revenues	$	34.6			$	16.8			106.0	%
Product and distribution costs		33.9				14.9			127.5
Other operating expenses		1.1				1.8			(38.9	)
Depreciation and amortization expenses		92.4				86.8			6.5
General and administrative expenses		1,331.1				1,267.9			5.0
Restructuring and impairments		—