Note 23—Guarantor Subsidiaries

The 2017 Notes and 2018 Notes issued by our wholly-owned subsidiary, Cott Beverages, Inc., are unconditionally guaranteed on a senior basis pursuant to guarantees by Cott Corporation and certain other wholly owned subsidiaries (the "Guarantor Subsidiaries"). The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions.

We have not presented separate financial statements and separate disclosures have not been provided concerning subsidiary guarantors because management has determined such information is not material to the holders of the above-mentioned notes.

The following supplemental financial information sets forth on an unconsolidated basis, our Balance Sheets, Statements of Operations and Cash Flows for Cott Corporation, Cott Beverages Inc., Guarantor Subsidiaries and our other subsidiaries (the "Non-guarantor Subsidiaries"). The supplemental financial information reflects our investments and those of Cott Beverages Inc. in their respective subsidiaries using the equity method of accounting.

Condensed Consolidating Statement of Operations

For the year ended December 31, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Revenue, net	$	207.0		$	932.3		$	1,065.7		$	167.3		$	(37.7	)	$	2,334.6
Cost of sales		167.8			825.5			951.7			150.7			(37.7	)		2,058.0

Gross profit		39.2			106.8			114.0			16.6			—			276.6
Selling, general and administrative expenses		30.1			59.0			71.8			11.8			—			172.7
Loss on disposal of property, plant & equipment		—			0.4			0.8			—			—			1.2
Restructuring and asset impairments
Restructuring		—			—			—			—			—			—
Asset impairments		—			—			—			0.6			—			0.6
Intangible asset impairments		—			1.4			—			—			—			1.4

Operating income		9.1			46.0			41.4			4.2			—			100.7
Contingent consideration earn-out adjustment		—			—			0.9			—			—			0.9
Other expense (income), net		1.6			(0.3	)		0.2			0.7			—			2.2
Intercompany interest (income) expense, net		(3.5	)		(4.1	)		7.6			—			—			—
Interest expense, net		0.3			54.8			1.8			0.2			—			57.1

Income (loss) before income tax expense (benefit) and equity income (loss)		10.7			(4.4	)		30.9			3.3			—			40.5
Income tax expense (benefit)		2.9			(0.8	)		(3.3	)		0.5			—			(0.7	)
Equity income (loss)		29.8			4.2			0.8			—			(34.8	)		—

Net income	$	37.6		$	0.6		$	35.0		$	2.8		$	(34.8	)	$	41.2
Less: Net income attributable to non-controlling interests		—			—			—			3.6			—			3.6

Net income (loss) attributed to Cott Corporation	$	37.6		$	0.6		$	35.0		$	(0.8	)	$	(34.8	)	$	37.6

Condensed Consolidating Statement of Operations

For the year ended January 1, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Revenue, net	$	201.0		$	905.6		$	600.4		$	137.6		$	(41.3	)	$	1,803.3
Cost of sales		158.0			774.3			527.0			119.0			(41.3	)		1,537.0

Gross profit		43.0			131.3			73.4			18.6			—			266.3
Selling, general and administrative expenses		31.0			79.1			42.6			14.0			—			166.7
Loss (gain) on disposal of property, plant & equipment		—			1.0			(0.1	)		0.2			—			1.1
Restructuring		—			(0.5	)		—			—			—			(0.5	)

Operating income		12.0			51.7			30.9			4.4			—			99.0
Contingent consideration earn-out adjustment		—			—			(20.3	)		—			—			(20.3	)
Other expense (income), net		2.3			1.3			0.8			(0.4	)		—			4.0
Intercompany interest (income) expense, net		(6.8	)		8.2			(1.3	)		—			(0.1	)		(0.0	)
Interest expense, net		0.2			35.6			0.9			0.2			—			36.9

Income before income tax expense and equity income (loss)		16.3			6.6			50.8			4.6			0.1			78.4
Income tax expense		4.5			12.0			1.7			0.4			—			18.6
Equity income		42.9			6.0			0.9			—			(49.8	)		—

Net income	$	54.7		$	0.6		$	50.0		$	4.2		$	(49.7	)	$	59.8
Less: Net income attributable to non-controlling interests		—			—			—			5.1			—			5.1

Net income (loss) attributed to Cott Corporation	$	54.7		$	0.6		$	50.0		$	(0.9	)	$	(49.7	)	$	54.7

Condensed Consolidating Statement of Operations

For the year ended January 2, 2010

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Revenue, net	$	198.7		$	958.8		$	360.6		$	126.6		$	(48.0	)	$	1,596.7
Cost of sales		167.9			805.9			313.1			108.0			(48.0	)		1,346.9

Gross profit		30.8			152.9			47.5			18.6			—			249.8
Selling, general and administrative expenses		36.5			70.9			24.7			14.7			—			146.8
Loss (gain) on disposal of property, plant & equipment		0.2			0.4			(0.1	)		—			—			0.5
Restructuring and asset impairments:
Restructuring		0.2			1.3			—			—			—			1.5
Asset impairments		—			3.6			—			—			—			3.6

Operating (loss) income		(6.1	)		76.7			22.9			3.9			—			97.4
Other expense, net		0.8			3.6			—			—			—			4.4
Intercompany interest (income) expense, net		(8.1	)		12.9			(4.8	)		—			—			0.0
Interest expense, net		0.3			28.9			0.3			0.2			—			29.7

Income before income tax (benefit) expense and equity income		0.9			31.3			27.4			3.7			—			63.3
Income tax (benefit) expense		(16.8	)		(9.7	)		3.5			0.2			—			(22.8	)
Equity income		63.8			5.7			46.6			—			(116.1	)		—

Net income	$	81.5		$	46.7		$	70.5		$	3.5		$	(116.1	)	$	86.1
Less: Net income attributable to non-controlling interests		—			—			—			4.6			—			4.6

Net income (loss) attributed to Cott Corporation	$	81.5		$	46.7		$	70.5		$	(1.1	)	$	(116.1	)	$	81.5

Consolidating Balance Sheet

As of December 31, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	13.7		$	20.7		$	58.9		$	7.6		$	—		$	100.9
Accounts receivable, net of allowance		22.4			97.2			136.3			14.6			(59.7	)		210.8
Income taxes recoverable		—			8.8			0.8			0.3			—			9.9
Inventories		18.1			60.2			124.2			7.5			—			210.0
Prepaid expenses and other assets		1.8			13.8			3.6			0.1			—			19.3

Total current assets		56.0			200.7			323.8			30.1			(59.7	)		550.9
Property, plant & equipment		48.0			179.3			245.1			9.8			—			482.2
Goodwill		26.9			4.5			98.2			—			—			129.6
Intangibles and other assets		0.9			105.3			216.5			18.4			—			341.1
Deferred income taxes		4.1			—			—			—			—			4.1
Other tax receivable		0.5			—			0.5			—			—			1.0
Due from affiliates		30.3			166.4			79.1			41.9			(317.7	)		—
Investments in subsidiaries		459.8			365.5			572.3			225.3			(1,622.9	)		—

Total assets	$	626.5		$	1,021.7		$	1,535.5		$	325.5		$	(2,000.3	)	$	1,508.9

LIABILITIES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	—		$	—		$	—		$	—		$	—
Current maturities of long-term debt		—			2.9			0.1			0.4			—			3.4
Accounts payable and accrued liabilities		27.1			117.1			181.2			15.4			(59.7	)		281.1

Total current liabilities		27.1			120.0			181.3			15.8			(59.7	)		284.5
Long-term debt		0.2			599.0			1.2			1.7			—			602.1
Deferred income taxes		—			26.8			6.8			0.5			—			34.1
Other long-term liabilities		0.2			3.5			16.3			—			—			20.0
Due to affiliates		43.2			77.8			168.9			27.8			(317.7	)		—

Total liabilities		70.7			827.1			374.5			45.8			(377.4	)		940.7
*Equity*
Capital stock, no par		395.9			569.3			1,396.5			218.2			(2,184.0	)		395.9
Treasury stock		(2.1	)		—			—			—			—			(2.1	)
Additional paid-in-capital		42.6			—			—			—			—			42.6
Retained earnings (deficit)		144.1			(365.5	)		(329.0	)		(43.2	)		737.7			144.1
Accumulated other comprehensive (loss) income		(24.7	)		(9.2	)		93.5			92.3			(176.6	)		(24.7	)

Total Cott Corporation equity		555.8			194.6			1,161.0			267.3			(1,622.9	)		555.8
Non-controlling interests		—			—			—			12.4			—			12.4

Total equity		555.8			194.6			1,161.0			279.7			(1,622.9	)		568.2

Total liabilities and equity	$	626.5		$	1,021.7		$	1,535.5		$	325.5		$	(2,000.3	)	$	1,508.9

Consolidating Balance Sheet

As of January 1, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	7.8		$	9.1		$	26.0		$	5.3		$	—		$	48.2
Accounts receivable, net of allowance		108.6			151.6			128.6			17.3			(192.5	)		213.6
Income taxes recoverable		—			1.3			(1.3	)		0.3			—			0.3
Inventories		18.1			66.1			124.6			6.7			—			215.5
Prepaid expenses and other assets		3.6			19.3			8.1			1.7			—			32.7

Total current assets		138.1			247.4			286.0			31.3			(192.5	)		510.3
Property, plant & equipment		50.0			180.4			259.5			13.9			—			503.8
Goodwill		27.4			4.5			98.3			—			—			130.2
Intangibles and other assets		1.3			114.8			233.6			21.4			—			371.1
Deferred income taxes		3.7			—			—			(1.2	)		—			2.5
Other tax receivable		2.5			7.6			1.2			—			—			11.3
Due from affiliates		241.8			166.9			220.9			41.9			(671.5	)		—
Investments in subsidiaries		—			351.5			—			161.0			(512.5	)		—

Total assets	$	464.8		$	1,073.1		$	1,099.5		$	268.3		$	(1,376.5	)	$	1,529.2

LIABILITIES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	7.9		$	—		$	—		$	—		$	7.9
Current maturities of long-term debt		0.1			5.4			0.1			0.4			—			6.0
Accounts payable and accrued liabilities		97.3			204.0			185.9			14.1			(192.5	)		308.8

Total current liabilities		97.4			217.3			186.0			14.5			(192.5	)		322.7
Long-term debt		—			601.9			1.4			2.5			(0.3	)		605.5
Deferred income taxes		—			31.8			10.7			1.1			—			43.6
Other long-term liabilities		—			5.4			16.9			—			(0.1	)		22.2
Losses and distributions in excess of investment		(198.4	)		—			(322.7	)		—			521.1			—
Due to affiliates		43.2			219.6			377.2			31.7			(671.7	)		—

Total liabilities		(57.8	)		1,076.0			269.5			49.8			(343.5	)		994.0
*Equity*
Capital stock, no par		395.6			354.4			1,182.6			175.0			(1,712.0	)		395.6
Treasury stock		(3.2	)		—			—			—			—			(3.2	)
Additional paid-in-capital		40.7			0.4			—			—			(0.3	)		40.8
Retained earnings (deficit)		106.4			(350.4	)		(352.0	)		(36.4	)		738.9			106.5
Accumulated other comprehensive (loss) income		(16.9	)		(7.3	)		(0.6	)		66.9			(59.6	)		(17.5	)

Total Cott Corporation equity		522.6			(2.9	)		830.0			205.5			(1,033.0	)		522.2
Non-controlling interests		—			—			—			13.0			—			13.0

Total equity		522.6			(2.9	)		830.0			218.5			(1,033.0	)		535.2

Total liabilities and equity	$	464.8		$	1,073.1		$	1,099.5		$	268.3		$	(1,376.5	)	$	1,529.2

Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Operating Activities
Net income	$	37.6		$	0.6		$	35.0		$	2.8		$	(34.8	)	$	41.2
Depreciation & amortization		6.0			35.1			48.2			6.0			—			95.3
Amortization of financing fees		0.3			3.3			0.3			—			—			3.9
Share-based compensation expense		1.1			1.0			0.7			0.1			—			2.9
Increase (decrease) in deferred income taxes		0.4			0.1			(3.9	)		(0.3	)		—			(3.7	)
Loss on disposal of property, plant & equipment		—			0.4			0.8			—			—			1.2
Asset impairments		—			—			—			0.6			—			0.6
Intangible asset impairments		—			1.4			—			—			—			1.4
Contract termination payments		(0.8	)		(2.3	)		—			—			—			(3.1	)
Equity (loss) income, net of distributions		(29.6	)		(4.2	)		0.2			—			33.6			—
Intercompany transactions		25.8			9.6			—			—			(35.4	)		—
Other non-cash items		(0.1	)		1.1			3.6			0.3			—			4.9
Net change in operating assets and liabilities		(25.7	)		210.4			(198.6	)		(3.8	)		36.6			18.9

Net cash provided by (used in) operating activities		15.0			256.5			(113.7	)		5.7			—			163.5


Investing Activities
Acquisition		—			(34.3	)		—			—			—			(34.3	)
Additions to property, plant & equipment		(5.2	)		(33.9	)		(9.5	)		(0.2	)		—			(48.8	)
Additions to intangibles and other assets		(0.2	)		(5.3	)		(0.1	)		(0.1	)		—			(5.7	)
Proceeds from sale of property, plant & equipment		—			0.4			—			—			—			0.4
Other investing activities		—			(1.8	)		—			—			—			(1.8	)
Advances to affiliates		—			—			156.1			3.6			(159.7	)		—

Net cash (used in) provided by investing activities		(5.4	)		(74.9	)		146.5			3.3			(159.7	)		(90.2	)


Financing Activities
Payments of long-term debt		0.1			(6.4	)		—			(0.5	)		—			(6.8	)
Borrowings under ABL		—			224.1			—			—			—			224.1
Payments under ABL		—			(231.9	)		—			—			—			(231.9	)
Advances from affiliates		(3.6	)		(156.1	)		—			—			159.7			—
Distributions to non-controlling interests		—			—			—			(6.0	)		—			(6.0	)
Exercise of options		—			0.3			—			—			—			0.3

Net cash used in financing activities		(3.5	)		(170.0	)		—			(6.5	)		159.7			(20.3	)
Effect of exchange rate changes on cash		(0.2	)		—			0.1			(0.2	)		—			(0.3	)

Net increase in cash & cash equivalents		5.9			11.6			32.9			2.3			—			52.7

Cash & cash equivalents, beginning of period		7.8			9.1			26.0			5.3			—			48.2

Cash & cash equivalents, end of period	$	13.7		$	20.7		$	58.9		$	7.6		$	—		$	100.9

Condensed Consolidating Statement of Cash Flows

For the year ended January 1, 2011

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Operating Activities
Net income	$	54.7		$	0.6		$	50.0		$	4.2		$	(49.7	)	$	59.8
Depreciation & amortization		6.3			35.4			26.4			5.9			—			74.0
Amortization of financing fees		0.4			2.1			0.2			—			—			2.7
Share-based compensation expense		0.7			3.9			0.1			—			—			4.7
Increase in deferred income taxes		2.3			12.0			1.7			1.1			—			17.0
Write-off of financing fees		0.2			1.0			0.2			—			—			1.4
Loss (gain) on disposal of property, plant & equipment		—			1.0			(0.1	)		0.2			—			1.1
Loss on buyback of Notes		—			0.1			—			—			—			0.1
Contingent consideration earn-out adjustment		—			—			(20.3	)		—			—			(20.3	)
Contract termination loss		—			3.6			—			—			—			3.6
Contract termination payments		—			(5.4	)		—			—			—			(5.4	)
Equity (loss) income, net of distributions		(42.9	)		(6.0	)		(0.9	)		—			49.8			—
Intercompany transactions		8.9			7.7			—			—			(16.5	)		—
Other non-cash items		2.0			3.8			—			(0.3	)		—			5.5
Net change in operating assets and liabilities		(35.3	)		63.4			(17.9	)		7.6			16.4			34.2

Net cash (used in) provided by operating activities		(2.8	)		123.1			39.4			18.7			—			178.4


Investing Activities
Acquisition		—			(507.7	)		—			—			—			(507.7	)
Additions to property, plant & equipment		(5.4	)		(26.5	)		(10.6	)		(1.5	)		—			(44.0	)
Additions to intangibles and other assets		—			(4.2	)		—			—			—			(4.2	)
Proceeds from sale of property, plant & equipment		—			0.3			0.3			0.6			—			1.2
Advances to affiliates		21.0			—			(12.3	)		(8.8	)		0.1			—

Net cash provided by (used in) investing activities		15.6			(538.1	)		(22.6	)		(9.7	)		0.1			(554.7	)


Financing Activities
Payments of long-term debt		0.1			(18.3	)		—			(0.5	)		—			(18.7	)
Issuance of long-term debt		—			375.0			—			—			—			375.0
Borrowings under ABL		—			307.1			59.4			—			—			366.5
Payments under ABL		—			(319.3	)		(59.7	)		—			—			(379.0	)
Advances from affiliates		8.8			12.3			(21.0	)		—			(0.1	)		—
Intercompany contributions		(89.8	)		71.1			18.7			—			—			—
Distributions to non-controlling interests		—			—			—			(7.4	)		—			(7.4	)
Issuance of common shares, net of offering fees		71.1			—			—			—			—			71.1
Financing fees		—			(14.2	)		—			—			—			(14.2	)

Net cash (used in) provided by financing activities		(9.8	)		413.7			(2.6	)		(7.9	)		(0.1	)		393.3
Effect of exchange rate changes on cash		0.6			—			(0.4	)		0.1			—			0.3

Net increase (decrease) in cash & cash equivalents		3.6			(1.3	)		13.8			1.2			—			17.3

Cash & cash equivalents, beginning of period		4.2			10.4			12.2			4.1			—			30.9

Cash & cash equivalents, end of period	$	7.8		$	9.1		$	26.0		$	5.3		$	—		$	48.2

Condensed Consolidating Statement of Cash Flows

For the year ended January 2, 2010

(in millions of U.S. dollars)


	Cott Corporation			Cott Beverages Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Operating Activities
Net income	$	81.5		$	46.7		$	70.5		$	3.5		$	(116.1	)	$	86.1
Depreciation & amortization		8.1			37.9			14.6			5.6			—			66.2
Amortization of financing fees		0.2			1.1			0.2			—			—			1.5
Share-based compensation expense		0.1			1.2			—			—			—			1.3
Increase (decrease) in deferred income taxes		3.3			2.9			0.1			(0.1	)		—			6.2
Loss (gain) on disposal of property, plant & equipment		0.2			0.4			(0.1	)		—			—			0.5
Loss on buyback of Notes		1.5			—			—			—			—			1.5
Asset impairments		—			0.1			—			—			—			0.1
Intangible impairments		—			3.5			—			—			—			3.5
Contract termination payments		—			(3.8	)		—			—			—			(3.8	)
Equity (loss) income, net of distributions		(62.4	)		(5.7	)		(46.7	)		(1.3	)		116.1			—
Intercompany transactions		8.6			6.9			—			—			(15.5	)		—
Other non-cash items		—			2.6			—			—			—			2.6
Net change in operating assets and liabilities		(102.0	)		64.6			(0.5	)		11.8			15.5			(10.6	)

Net cash (used in) provided by operating activities		(60.9	)		158.4			38.1			19.5			—			155.1


Investing Activities
Additions to property, plant & equipment		(4.3	)		(18.4	)		(8.6	)		(1.0	)		—			(32.3	)
Additions to intangibles and other assets		—			(1.6	)		—			—			—			(1.6	)
Proceeds from sale of property, plant & equipment		—			1.5			0.2			—			—			1.7
Advances to affiliates		12.6			—			(11.2	)		(9.9	)		8.5			—

Net cash provided by (used in) investing activities		8.3			(18.5	)		(19.6	)		(10.9	)		8.5			(32.2	)


Financing Activities
Payments of long-term debt		—			(265.2	)		—			(0.3	)		—			(265.5	)
Issuance of long-term debt		—			211.9			—			—			—			211.9
Borrowings under ABL		87.0			595.0			86.1			—			—			768.1
Payments under ABL		(90.1	)		(679.4	)		(87.1	)		—			—			(856.6	)
Advances from affiliates		10.0			11.3			(12.8	)		—			(8.5	)		—
Distributions to non-controlling interests		—			—			—			(6.7	)		—			(6.7	)
Issuance of common shares, net of offering fees		47.5			—			—			—			—			47.5
Financing fees		—			(6.2	)		—			—			—			(6.2	)
Other financing activities		—			—			—			(0.1	)		—

Net cash provided by (used in) financing activities		54.4			(132.6	)		(13.8	)		(7.1	)		(8.5	)		(107.5	)
Effect of exchange rate changes on cash		0.3			—			0.1			0.4			—			0.8

Net increase in cash & cash equivalents		2.1			7.3			4.8			1.9			—			16.2

Cash & cash equivalents, beginning of period		2.1			3.1			7.4			2.1			—			14.7

Cash & cash equivalents, end of period	$	4.2		$	10.4		$	12.2		$	4.0		$	—		$	30.9