Segmented information

12 Months Ended

Dec. 30, 2017

24. Segmented Information

The composition of the Company’s reportable segments is as follows:

Global Ingredients aggregates our North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused on the procurement and sale of specialty and organic grains and seeds, raw material ingredients, value-added grain- and cocoa-based ingredients, and organic commodities.

Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptic packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes individually quick frozen (“IQF”) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings, and included flexible resealable pouch and nutrition bar product lines, which were exited in 2017.

In addition, Corporate Services provides a variety of management, financial, information technology, treasury and administration services to each of the Company’s operating segments from the Company’s headquarters in Mississauga, Ontario and administrative office in Edina, Minnesota.

When reviewing the operating results of the Company’s operating segments, management uses segment revenues from external customers and segment operating income/loss to assess performance and allocate resources. Segment operating income/loss excludes other income/expense items and goodwill impairment losses. In addition, interest expense and income amounts, and provisions for income taxes are not allocated to the operating segments.

Segment Revenues and Operating Income

Reportable segment operating results for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 were as follows:

	December 30, 2017
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	550,527	729,066	1,279,593
Segment operating income	21,951	9,905	31,856
Corporate Services			(31,089)
Other expense, net (see note 18)			(23,660)
Goodwill impairment (see note 11)			(115,000)
Interest expense, net			(32,504)
Loss from continuing operations before income taxes			(170,397)

	December 31, 2016
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	574,295	772,436	1,346,731
Segment operating income	26,787	1,206	27,993
Corporate Services			(13,247)
Other expense, net (see note 18)			(28,292)
Goodwill impairment(see note 11)			(17,540)
Interest expense, net			(43,275)
Loss from continuing operations before income taxes			(74,361)

	January 2, 2016
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	610,890	534,244	1,145,134
Segment operating income	28,184	3,208	31,392
Corporate Services			(10,094)
Other expense, net (see note 18)			(12,151)
Interest expense, net			(15,669)
Loss from continuing operations before income taxes			(6,522)

Segment Assets

Total assets and goodwill by reportable segment as at December 30, 2017 and December 31, 2016 were as follows:

			December 30, 2017	December 31, 2016
			$	$
Segment assets:
	Global Ingredients		347,971	304,149
	Consumer Products		588,542	776,405
		Total segment assets	936,513	1,080,554
	Corporate Services		45,660	49,004
		Total assets	982,173	1,129,558

Segment goodwill:
	Global Ingredients		9,177	8,255
	Consumer Products		100,356	215,356
		Total segment goodwill	109,533	223,611

Segment Capital Expenditures, Depreciation and Amortization

Capital expenditures, depreciation and amortization by reportable segment for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 were as follows:

			December 30, 2017	December 31, 2016	January 2, 2016
			$	$	$
Segment capital expenditures:
	Global Ingredients		9,060	4,767	5,872
	Consumer Products		27,054	14,586	21,529
		Total segment capital expenditures	36,114	19,353	27,401
	Corporate Services		5,025	3,207	3,785
		Total capital expenditures	41,139	22,560	31,186

Segment depreciation and amortization:
	Global Ingredients		6,464	6,406	6,352
	Consumer Products		23,666	25,532	12,814
		Total segment depreciation and amortization	30,130	31,938	19,166
	Corporate Services		2,694	2,212	1,841
		Total depreciation and amortization	32,824	34,150	21,007

Geographic Information

The Company’s assets, operations and employees are principally located in the U.S., Canada, Europe, Mexico and Ethiopia. Revenues from external customers are attributed to countries based on the location of the customer. Revenues from external customers by geographic area for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 were as follows:

			December 30, 2017	December 31, 2016	January 2, 2016
			$	$	$
Revenues from external customers:
	U.S.		1,001,417	1,084,199	893,637
	Canada		27,929	30,959	33,291
	Europe and other		250,247	231,573	218,206
		Total revenues from external customers	1,279,593	1,346,731	1,145,134

Long-lived assets consist of property, plant and equipment, net of accumulated depreciation, which are attributed to countries based on the physical location of the assets. Long-lived assets by geographic area as at December 30, 2017 and December 31, 2016 were as follows:

			December 30, 2017	December 31, 2016
			$	$
Long-lived assets:
	U.S.		128,367	133,335
	Canada		3,094	3,346
	Europe and other		32,163	25,558
		Total long-lived assets	163,624	162,239

Major Customers

For the years ended December 30, 2017 and December 31, 2016, Costco Wholesale (“Costco”) accounted for approximately 10% and 11%, respectively, of consolidated revenues. Revenues from Costco are included in the Consumer Products operating segment. The Company did not have any customers that exceeded 10% of total revenues for the year ended January 2, 2016.