Segment Reporting

Our broad portfolio of products includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, beverage concentrates and mineral water.

Our business operates through three reporting segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other. Our corporate oversight function is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments. During the second quarter of 2018, we combined and disclosed the corporate oversight function in the All Other category. Segment reporting results have been recast to reflect these changes for all periods presented.

Subsequent to the completion of the Transaction, management re-evaluated the measure of profit for our reportable segments and determined that excluding corporate allocations from segment operating income was appropriate as these costs are not considered by management when evaluating performance. Operating income for the prior periods have been recast to reflect this change and resulted in a $0.6 million increase to operating income for the three and six months ended July 1, 2017 in our Route Based Services reporting segment with an offsetting decrease of $0.6 million in the All Other category.



(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations			Total
For the Three Months Ended June 30, 2018
Revenue, net ¹	$	412.6	$	145.5	$	47.0		$	(1.5	)	$	603.6
Depreciation and amortization	41.1		5.7		1.9			—			48.7
Operating income (loss)	27.7		3.2		(10.2		)	—			20.7
Additions to property, plant and equipment	24.9		2.5		1.5			—			28.9
For the Six Months Ended June 30, 2018
Revenue, net ¹	$	783.7	$	291.6	$	91.7		$	(2.6	)	$	1,164.4
Depreciation and amortization	80.9		11.4		3.8			—			96.1
Operating income (loss)	40.1		7.3		(20.6		)	—			26.8
Additions to property, plant and equipment	52.0		4.6		2.1			—			58.7
As of June 30, 2018
Total assets ²	$	2,378.7	$	455.9	$	300.6		$	—		$	3,135.2

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¹	Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $1.5 million and $2.6 million for the three and six months ended June 30, 2018, respectively. All Other includes $4.2 million of related party concentrate sales to discontinued operations for the six months ended June 30, 2018.


²	Excludes intersegment receivables, investments and notes receivable.



(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations		Total
For the Three Months Ended July 1, 2017
Revenue, net ¹	$	385.3	$	153.5	$	41.8		$	—	$	580.6
Depreciation and amortization	41.4		5.7		1.7			—		48.8
Operating income (loss)	22.9		4.0		(10.4		)	—		16.5
Additions to property, plant and equipment	28.0		2.3		0.4			—		30.7
For the Six Months Ended July 1, 2017
Revenue, net ¹	$	737.6	$	296.8	$	83.1		$	—	$	1,117.5
Depreciation and amortization	77.4		11.2		3.8			—		92.4
Operating income (loss)	32.3		9.6		(20.2		)	—		21.7
Additions to property, plant and equipment	51.1		7.3		0.5			—		58.9
As of December 30, 2017
Total assets ²	$	2,343.4	$	455.7	$	207.8		$	—	$	3,006.9

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¹	All Other includes $11.5 million and $21.8 million of related party concentrate sales to discontinued operations for the three and six months ended July 1, 2017, respectively.


²	Excludes intersegment receivables, investments and notes receivable, as well as assets of discontinued operations.



Reconciliation of Segment Assets to Total Assets
(in millions of U.S. dollars)	December 30, 2017
Segment assets ¹	$	3,006.9
Assets of discontinued operations ¹	1,086.2
Total assets	$	4,093.1

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¹	Excludes intersegment receivables, investments and notes receivable.

Credit risk arises from the potential default of a customer in meeting its financial obligations to us. Concentrations of credit exposure may arise with a group of customers that have similar economic characteristics or that are located in the same geographic region. The ability of such customers to meet obligations would be similarly affected by changing economic, political or other conditions. We are not currently aware of any facts that would create a material credit risk.

Revenues by channel by reporting segment were as follows:



	For the Three Months Ended June 30, 2018
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations			Total
Revenue, net
Home and office bottled water delivery	$	259.5	$	—	$	—	$	—		$	259.5
Coffee and tea services	48.1		118.8		0.9		(1.5		)	166.3
Retail	61.1		—		16.8		—			77.9
Other	43.9		26.7		29.3		—			99.9
Total	$	412.6	$	145.5	$	47.0	$	(1.5	)	$	603.6



	For the Six Months Ended June 30, 2018
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations			Total
Revenue, net
Home and office bottled water delivery	$	488.4	$	—	$	—	$	—		$	488.4
Coffee and tea services	94.4		236.0		1.6		(2.5		)	329.5
Retail	115.8		—		32.2		—			148.0
Other	85.1		55.6		57.9		(0.1		)	198.5
Total	$	783.7	$	291.6	$	91.7	$	(2.6	)	$	1,164.4



	For the Three Months Ended July 1, 2017
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations		Total
Revenue, net
Home and office bottled water delivery	$	244.6	$	—	$	—	$	—	$	244.6
Coffee and tea services	44.8		129.0		0.7		—		174.5
Retail	55.7		—		10.5		—		66.2
Other	40.2		24.5		30.6		—		95.3
Total	$	385.3	$	153.5	$	41.8	$	—	$	580.6



	For the Six Months Ended July 1, 2017
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations		Total
Revenue, net
Home and office bottled water delivery	$	462.6	$	—	$	—	$	—	$	462.6
Coffee and tea services	90.7		248.7		1.3		—		340.7
Retail	107.5		—		22.2		—		129.7
Other	76.8		48.1		59.6		—		184.5
Total	$	737.6	$	296.8	$	83.1	$	—	$	1,117.5