Segment Reporting

3 Months Ended

Mar. 28, 2020

Our broad portfolio of products includes bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, sparkling and flavored water, mineral water, filtration equipment, coffee, hot chocolate, soups, malt drinks, creamers/whiteners and cereals.

During the first quarter of 2020, we completed the Legacy Primo Acquisition. This business was added to our existing Route Based Services reporting segment, which was renamed “Water Solutions” to reflect our strategy of transitioning to a pure-play water solutions provider. Other than the change in name, there was no impact on prior period results for this reporting segment.


(in millions of U.S. dollars)	Water Solutions		All Other		Total
For the Three Months Ended March 28, 2020
Revenue, net	$	474.2	$	—	$	474.2
Depreciation and amortization	44.9		0.1		$	45.0
Operating income (loss)	21.5		(25.5)		$	(4.0)
Additions to property, plant and equipment	34.9		—		$	34.9
As of March 28, 2020
Total assets ¹	$	3,663.4	$	55.7	$	3,719.1

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¹ Excludes intersegment receivables, investments and notes receivable.


(in millions of U.S. dollars)	Water Solutions		All Other		Total
For the Three Months Ended March 30, 2019
Revenue, net	$	420.5	$	7.2	$	427.7
Depreciation and amortization	39.6		0.1		39.7
Operating income (loss)	14.0		(13.3)		0.7
Additions to property, plant and equipment	21.9		0.1		22.0
As of December 28, 2019
Total assets ¹	$	2,816.1	$	48.3	$	2,864.4

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¹ Excludes intersegment receivables, investments and notes receivable.


(in millions of U.S. dollars)	December 28, 2019
Segment assets ¹	$	2,864.4
Assets of discontinued operations ¹	526.5
Total assets	$	3,390.9

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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.

The impact of the COVID-19 pandemic may impact the ability of such customers to meet obligations to us. The full extent to which the COVID-19 pandemic will negatively affect our results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in the markets in which we operate and other third parties in response to the pandemic.

Revenues by channel by reporting segment were as follows:


	For the Three Months Ended March 28, 2020
(in millions of U.S. dollars)	Water Solutions		All Other		Total
Revenue, net
Water Direct/Water Exchange	$	295.2	$	—	$	295.2
Water Refill/Water Filtration	30.8		—		30.8
Water Retail	55.4		—		55.4
Water Dispensers	5.9		—		5.9
Other	86.9		—		86.9
Total	$	474.2	$	—	$	474.2


	For the For the Three Months Ended March 30, 2019
(in millions of U.S. dollars)	Water Solutions ¹		All Other		Total
Revenue, net
Water Direct/Water Exchange	$	264.2	$	—	$	264.2
Water Refill/Water Filtration	15.3		—		15.3
Water Retail	50.8		—		50.8
Water Dispensers	—		—		—
Other	90.2		7.2		97.4
Total	$	420.5	$	7.2	$	427.7

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¹ Revenues by channel of our Water Solutions reporting segment for the three months ended March 30, 2019 had $15.3 million of revenues reclassified from “other” to “water refill/water filtration” and $5.6 million of revenues reclassified from “other” to “water direct/water exchange” in order to better align the activities after the Legacy Primo Acquisition. In addition, we reclassified $48.6 million of revenues from “coffee and tea services” and $20.1 million of revenues from “retail” into “other” in order to better align with our strategy of transitioning to a pure-play water solutions provider.