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Segment Reporting

12 Months Ended

Dec. 28, 2019

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, premium spring, sparkling and flavored water, and mineral water.

We operate 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 first quarter of 2019, we reviewed and realigned our reporting segments to reflect how the business will be managed and the results will be reviewed by the Chief Executive Officer, who is the Company’s chief operating decision maker. Following such review, we realigned our three reporting segments as follows: Route Based Services (which includes our DSS, Aquaterra, Mountain Valley, Eden and Aimia businesses); Coffee, Tea and Extract Solutions (which includes our S&D business); and All Other (which includes miscellaneous expenses and our Cott Beverages LLC business, which was sold in the first quarter of 2019). Our segment reporting results have been recast to reflect these changes for all periods presented.



	December 28, 2019
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations			Total
Revenue, net ¹	$	1,788.2	$	605.0	$	7.2		$	(5.9	)	$	2,394.5
Depreciation and amortization	168.3		24.2		0.3			—			192.8
Operating income (loss)	115.8		15.4		(40.8		)	—			90.4
Property, plant and equipment, net	557.0		89.7		1.1			—			647.8
Goodwill	1,047.5		128.2		—			—			1,175.7
Intangible assets, net	596.0		104.4		1.0			—			701.4
Total segment assets ²	2,816.1		526.5		48.3			—			3,390.9
Additions to property, plant and equipment	100.9		13.3		0.4			—			114.6

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¹	Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.9 million for the year ended December 28, 2019.


²	Excludes intersegment receivables, investments and notes receivable.



	December 29, 2018
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations			Total
Revenue, net ¹	$	1,710.3	$	587.6	$	80.7		$	(5.7	)	$	2,372.9
Depreciation and amortization	170.7		22.9		1.0			—			194.6
Operating income (loss)	89.9		16.1		(47.2		)	—			58.8
Property, plant and equipment, net	530.7		88.3		5.7			—			624.7
Goodwill	1,021.6		117.8		4.5			—			1,143.9
Intangible assets, net	608.3		103.2		27.7			—			739.2
Total segment assets ²	2,578.3		464.8		132.4			—			3,175.5
Additions to property, plant and equipment	112.3		16.0		2.5			—			130.8

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¹	Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.7 million for the year ended December 29, 2018. All Other includes $4.2 million of related party concentrate sales to discontinued operations for the year ended December 29, 2018.


²	Excludes intersegment receivables, investments and notes receivable.



	December 30, 2017
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations		Total
Revenue, net ¹	$	1,599.6	$	602.2	$	67.9		$	—	2,269.7
Depreciation and amortization	164.9		22.7		1.0			—		188.6
Operating income (loss) ²	79.7		15.9		(51.7		)	—		43.9
Additions to property, plant and equipment	100.8		19.0		1.5			—		121.3

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¹	All Other includes $41.1 million of related party concentrate sales to discontinued operations for the year ended December 30, 2017.


²	Operating income in our Route Based Services reporting segment for the year ended December 30, 2017 decreased $5.0 million as a result of the adoption of Accounting Standards Update 2017-07 Compensation—Retirement Benefits (“ASU 2017-07”).

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.

We have limited customer concentration; no customer accounts for more than 10% of our net revenues.

Revenues are attributed to countries based on the location of the customer. Revenues generated from sales to external customers by geographic area were as follows:



	For the Year Ended
(in millions of U.S. dollars)	December 28, 2019		December 29, 2018		December 30, 2017
United States	$	1,801.7	$	1,786.9	$	1,709.0
United Kingdom	172.0		173.2		160.0
Canada	67.4		64.1		61.8
All other countries	353.4		348.7		338.9
Total	$	2,394.5	$	2,372.9	$	2,269.7

Revenues by channel by reporting segment were as follows:



	For the Year Ended December 28, 2019
(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	$	1,136.0	$	—	$	—	$	—		$	1,136.0
Coffee and tea services	184.0		483.6		—		(5.9		)	661.7
Retail	297.6		—		—		—			297.6
Other	170.6		121.4		7.2		—			299.2
Total	$	1,788.2	$	605.0	$	7.2	$	(5.9	)	$	2,394.5



	For the Year Ended December 29, 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 ¹	$	1,078.5	$	—	$	—	$	—		$	1,078.5
Coffee and tea services	192.8		461.9		—		(5.7		)	649.0
Retail ¹	286.0		—		—		—			286.0
Other ¹	153.0		125.7		80.7		—			359.4
Total	$	1,710.3	$	587.6	$	80.7	$	(5.7	)	$	2,372.9

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Revenue by channel of our Route Based Services reporting segment for the year ended December 29, 2018 had $83.7 million of revenues reclassified from “other” and “retail” to “home and office bottled water delivery” as these activities are associated with the “home and office bottled water delivery” channel. In addition, we reclassified $18.0 million out of the “retail" channel and into the “other” channel in order to better align the activities of a recent acquisition with those of our U.S. Route Based Services business.



	For the Year Ended December 30, 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 ¹	$	990.6	$	—	$	—	$	—	$	990.6
Coffee and tea services	186.8		501.7		—		—		688.5
Retail ¹	282.2		—		—		—		282.2
Other ¹	140.0		100.5		67.9		—		308.4
Total	$	1,599.6	$	602.2	$	67.9	$	—	$	2,269.7

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¹	Revenue by channel of our Route Based Services reporting segment for the year ended December 30, 2017 had $50.2 million of revenues reclassified from “other” to “home and office bottled water delivery” as these activities are associated with the “home and office bottled water delivery” channel.

Property, plant and equipment, net by geographic area as of December 28, 2019 and December 29, 2018 were as follows:



(in millions of U.S. dollars)	December 28, 2019		December 29, 2018
United States	$	505.4	$	491.1
United Kingdom	20.9		17.8
Canada	18.6		19.8
All other countries ¹	102.9		96.0
Total	$	647.8	$	624.7

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No individual country is greater than 10% of total property, plant and equipment, net as of December 28, 2019 and December 29, 2018.