Segmented Information

12 Months Ended

Dec. 28, 2019

24. Segmented Information

Effective the fourth quarter of 2019, the Company implemented changes to its organization and leadership structure to align with the operational and strategic objectives established by the Company's CEO. As a result, the Company established two new segments - a Plant-Based Foods and Beverages segment and a Fruit-Based Foods and Beverages segment - based on the synergistic nature of the underlying principal product ingredients. In addition, the Company realigned the Global Ingredients segment to combine its international organic ingredients operations and its co-manufactured premium juice program, based on shared raw material sourcing. Each segment has dedicated management, sales, marketing, plant operations, product development and business support teams, with full accountability to the CEO.

With these changes, the composition of the Company's three operating segments is as follows:

Global Ingredients includes the sourcing and sale of organic and non-GMO ingredients, including fruits, vegetables, oils, fats, coffee, nuts, dried fruits, sugars, liquid sweeteners, seeds, grains, rice and pulses, and the processing of value-added ingredients including cocoa liquor, butter and powder, sunflower kernel, oil and cakes, sesame seeds, and avocado oil. In addition, it includes partnerships with third-party co-manufacturers to produce consumer-packaged premium juice products (including private label orange juices, lemonades, and functional waters), utilizing internally-sourced raw materials. It also included the operations of the soy and corn business that was sold in 2019.

Plant-Based Foods and Beverages includes plant-based beverages and liquid and dry ingredients (utilizing almond, soy, coconut, oat, hemp, and other bases), as well as broths, teas and nutritional beverages. In addition, it includes packaged dry- and oil-roasted in-shell sunflower and sunflower kernels, as well as corn-, soy- and legume-based roasted snacks, and the processing and sale of raw sunflower inshell and kernel for food and feed applications. It also included flexible resealable pouch and nutrition bar product lines that were exited in 2017.

Fruit-Based Foods and Beverages includes individually quick frozen (“IQF”) fruit for retail (including strawberries, blueberries, mango, pineapple, blends, and other berries), IQF and bulk frozen fruit for foodservice (including purées, fruit cups and smoothies), and custom fruit preparations for industrial use. In addition, it includes fruit snacks, including bars, twists, ropes and bite-sized varieties.

Corporate Services provides a variety of management, financial, information technology, treasury and administration services to each of the Company's operating segments.

The segment information presented below for the years ended December 29, 2018 and December 30, 2017 has been restated to reflect the new segment structure.

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 28, 2019, December 29, 2018 and December 30, 2017 were as follows:

	December 28, 2019
		Plant-Based	Fruit-Based
	Global	Foods and	Foods and
	Ingredients	Beverages	Beverages		Consolidated
	$	$	$		$
Segment revenues from external customers	478,772	361,398	349,852		1,190,022
Segment operating income (loss)	15,965	29,476	(26,873	)	18,568
Corporate Services					(21,322	)
Other income, net (see note 18)					40,048
Interest expense, net					(34,677	)
Earnings before income taxes					2,617

	December 29, 2018
		Plant-Based	Fruit-Based
	Global	Foods and	Foods and
	Ingredients	Beverages	Beverages		Consolidated
	$	$	$		$
Segment revenues from external customers	581,307	314,076	365,469		1,260,852
Segment operating income (loss)	23,266	10,766	(16,029	)	18,003
Corporate Services					(14,071	)
Other expense, net (see note 18)					(2,825	)
Goodwill impairment (see note 11)					(81,222	)
Interest expense, net					(34,406	)
Loss before income taxes					(114,521	)

	December 30, 2017
		Plant-Based		Fruit-Based
	Global	Foods and		Foods and
	Ingredients	Beverages		Beverages	Consolidated
	$	$		$	$
Segment revenues from external customers	556,166	342,714		380,713	1,279,593
Segment operating income (loss)	25,589	(7,094	)	13,570	32,065
Corporate Services					(31,298	)
Other expense, net (see note 18)					(23,660	)
Goodwill impairment (see note 11)					(115,000	)
Interest expense, net					(32,504	)
Loss before income taxes					(170,397	)

Segment Assets

Total assets by reportable segment as at December 28, 2019 and December 29, 2018 were as follows:

	December 28, 2019	December 29, 2018
	$	$
Segment Assets
Global Ingredients	293,453	354,986
Plant-Based Foods and Beverages	189,013	103,386
Fruit-Based Foods and Beverages	342,099	364,306
Total segment assets	824,565	822,678
Corporate Services	98,794	74,060
Total assets	923,359	896,738

Segment Capital Expenditures, Depreciation and Amortization

Capital expenditures, depreciation and amortization by reportable segment for the years ended December 28, 2019, December 29, 2018 and December 30, 2017 were as follows:

	December 28, 2019	December 29, 2018	December 30, 2017
	$	$	$
Segment Capital Expenditures
Global Ingredients	4,469	5,391	9,531
Plant-Based Foods and Beverages	15,289	12,241	17,401
Fruit-Based Foods and Beverages	9,689	5,586	9,182
Total segment capital expenditures	29,447	23,218	36,114
Corporate Services	3,317	8,385	5,025
Total capital expenditures	32,764	31,603	41,139

Segment Depreciation and Amortization
Global Ingredients	5,480	6,117	5,828
Plant-Based Foods and Beverages	7,134	5,827	6,792
Fruit-Based Foods and Beverages	16,702	16,871	17,510
Total segment depreciation and amortization	29,316	28,815	30,130
Corporate Services	4,636	3,973	2,694
Total depreciation and amortization	33,952	32,788	32,824

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 28, 2019, December 29, 2018 and December 30, 2017 were as follows:

	December 28, 2019	December 29, 2018	December 30, 2017
	$	$	$
Revenues from External Customers
U.S.	929,320	984,122	1,001,417
Canada	22,807	29,055	27,929
Europe and other	237,895	247,675	250,247
Total revenues from external customers	1,190,022	1,260,852	1,279,593

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 28, 2019 and December 29, 2018 were as follows:

	December 28, 2019	December 29, 2018
	$	$
Long-Lived Assets
U.S.	147,465	134,598
Canada	2,401	2,787
Europe and other	34,684	33,647
Total long-lived assets	184,550	171,032

Major Customers

For the year ended December 28, 2019, one customer accounted for approximately 11% of the Company's consolidated revenues and approximately 36% of Plant-Based Foods and Beverages segment revenues. The Company did not have any customers that exceeded 10% of total revenues for the years ended December 29, 2018 and December 30, 2017.