Segmented Information

3 Months Ended

Mar. 28, 2020

13. 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 third-party co-manufacturing arrangements 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 inshell 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.

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.

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 quarters ended March 28, 2020 and March 30, 2019 were as follows:

	Quarter ended
	March 28, 2020
		Plant-Based	Fruit-Based
	Global	Foods and	Foods and
	Ingredients	Beverages	Beverages		Consolidated
	$	$	$		$
Segment revenues from external customers	128,352	106,242	101,355		335,949
Segment operating income (loss)	8,114	13,853	(4,702	)	17,265
Corporate Services					(5,806	)
Other income, net (see note 9)					1,298
Interest expense, net					(8,280	)
Earnings before income taxes					4,477

	Quarter ended
	March 30, 2019
		Plant-Based	Fruit-Based
	Global	Foods and	Foods and
	Ingredients	Beverages	Beverages		Consolidated
	$	$	$		$
Segment revenues from external customers	134,842	81,276	89,157		305,275
Segment operating income (loss)	6,543	2,528	(5,605	)	3,466
Corporate Services					(3,146	)
Other income, net (see note 9)					43,512
Interest expense, net					(8,739	)
Earnings before income taxes					35,093

Segment Depreciation and Amortization

Depreciation and amortization by reportable segment for the quarters ended March 28, 2020 and March 30, 2019 was as follows:

	Quarter ended
	March 28, 2020	March 30, 2019
	$	$
Global Ingredients	1,197	1,469
Plant-Based Foods and Beverages	2,368	1,477
Fruit-Based Foods and Beverages	4,136	4,228
Total segment depreciation and amortization	7,701	7,174
Corporate Services	1,221	1,128
Total depreciation and amortization	8,922	8,302