Discontinued Operations (Tables)

9 Months Ended

Sep. 29, 2018

Discontinued Operations and Disposal Groups [Abstract]

Summary of Discontinued Operations in Financial Statements

The major components of net income from discontinued operations, net of income taxes in the accompanying Consolidated Statements of Operations include the following:

	For the Three Months Ended						For the Nine Months Ended
(in millions of U.S. dollars)	September 29, 2018			September 30, 2017			September 29, 2018		September 30, 2017
Revenue, net	$	—		$	425.6		$	111.2	$	1,244.7
Cost of sales	—			371.3			98.4		1,093.4
Operating income from discontinued operations	—			13.9			2.0		33.6
Gain on sale of discontinued operations	0.6			—			427.6		—
Income (loss) from discontinued operations, before income taxes	0.6			12.1			402.2		(27.5		)
Income tax (benefit) expense 1	(0.9		)	(30.9		)	44.7		(28.5		)
Net income from discontinued operations, net of income taxes	1.5			43.0			357.5		1.0
Less: Net income attributable to non-controlling interests	—			2.1			0.6		6.4
Net income (loss) attributable to Cott Corporation – discontinued operations 2	$	1.5		$	40.9		$	356.9	$	(5.4	)

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¹ The net income (loss) from discontinued operations, before income taxes resulted in income tax benefit of $0.9 million and income tax expense of $44.7 million for the three and nine months ended September 29, 2018, respectively. The Transaction resulted in a taxable gain on sale in the United States, which utilized a significant portion of the existing U.S. net operating loss carry forwards. As a result, the Company is in a net deferred tax liability position in the United States and thus a tax benefit of approximately $25.0 million related to a release of the U.S. valuation allowance was recorded in the first quarter of 2018 and is offsetting the overall income tax expense related to discontinued operations. The Transaction resulted in a non-taxable gain on sale in the United Kingdom. No tax benefit resulted from the Transaction related to the taxable loss on sale in Canada due to the Company's valuation allowance position.

² Net income (loss) attributable to Cott Corporation – discontinued operations is inclusive of interest expense on short-term borrowings and debt required to be repaid or extinguished as part of divestiture of $3.4 million for the nine months endedSeptember 29, 2018 and $8.4 million and $38.5 million for the three and nine months ended September 30, 2017, respectively.