Segmented information

12 Months Ended

Dec. 29, 2018

23. Segmented Information

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

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

Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes 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 that were exited in 2017.

In 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. The segment information presented below for years ended December 30, 2017 and December 31, 2016 has been restated to reflect this realignment. Specifically, for the years ended December 30, 2017 and December 31, 2016, revenues of $13.6 million and $15.5 million, respectively, and operating income of $2.0 million and $2.0 million, respectively, generated by these operations have been reclassified from Global Ingredients to Consumer Products.

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. In addition, interest expense and income taxes are not allocated to the operating segments.

Segment Revenues and Operating Income

Reportable segment operating results for the years ended December 29, 2018, December 30, 2017 and December 31, 2016 were as follows:

	December 29, 2018
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	559,712	701,140	1,260,852
Segment operating income	16,430	1,238	17,668
Corporate Services			(13,736)
Other expense, net (see note 17)			(2,825)
Goodwill impairment (see note 9)			(81,222)
Interest expense, net			(34,406)
Loss from continuing operations before income taxes			(114,521)

	December 30, 2017
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	536,928	742,665	1,279,593
Segment operating income	19,932	11,924	31,856
Corporate Services			(31,089)
Other expense, net (see note 17)			(23,660)
Goodwill impairment (see note 9)			(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	558,798	787,933	1,346,731
Segment operating income	24,771	3,222	27,993
Corporate Services			(13,247)
Other expense, net (see note 17)			(28,292)
Goodwill impairment (see note 9)			(17,540)
Interest expense, net			(43,275)
Loss from continuing operations before income taxes			(74,361)

Segment Assets

Total assets and goodwill by reportable segment as at December 29, 2018 and December 30, 2017 were as follows:

			December 29, 2018	December 30, 2017
			$	$
Segment assets:
	Global Ingredients		364,454	347,971
	Consumer Products		458,224	588,542
		Total segment assets	822,678	936,513
	Corporate Services		74,060	45,660
		Total assets	896,738	982,173

Segment goodwill:
	Global Ingredients		8,825	9,177
	Consumer Products		19,134	100,356
		Total segment goodwill	27,959	109,533

Segment Capital Expenditures, Depreciation and Amortization

Capital expenditures, depreciation and amortization by reportable segment for the years ended December 29, 2018, December 30, 2017 and December 31, 2016 were as follows:

			December 29, 2018	December 30, 2017	December 31, 2016
			$	$	$
Segment capital expenditures:
	Global Ingredients		7,904	9,060	4,767
	Consumer Products		15,314	27,054	14,586
		Total segment capital expenditures	23,218	36,114	19,353
	Corporate Services		8,385	5,025	3,207
		Total capital expenditures	31,603	41,139	22,560

Segment depreciation and amortization:
	Global Ingredients		6,704	6,464	6,406
	Consumer Products		22,111	23,666	25,532
		Total segment depreciation and amortization	28,815	30,130	31,938
	Corporate Services		3,973	2,694	2,212
		Total depreciation and amortization	32,788	32,824	34,150

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 29, 2018, December 30, 2017 and December 31, 2016 were as follows:

			December 29, 2018	December 30, 2017	December 31, 2016
			$	$	$
Revenues from external customers:
	U.S.		984,122	1,001,417	1,084,199
	Canada		29,055	27,929	30,959
	Europe and other		247,675	250,247	231,573
		Total revenues from external customers	1,260,852	1,279,593	1,346,731

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 29, 2018 and December 30, 2017 were as follows:

			December 29, 2018	December 30, 2017
			$	$
Long-lived assets:
	U.S.		134,598	128,367
	Canada		2,787	3,094
	Europe and other		33,647	32,163
		Total long-lived assets	171,032	163,624

Major Customers

For the year ended December 29, 2018, Starbucks Corporation (“Starbucks”) accounted for approximately 10% of our consolidated revenues. For the years ended December 30, 2017 and December 31, 2016, Costco Wholesale (“Costco”) accounted for approximately 10% and 11%, respectively, of our consolidated revenues. Revenues from Starbucks and Costco are included in the Consumer Products operating segment.