Note 9—Segment Reporting

Our broad portfolio of products include bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, filtration equipment, CSDs, 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy drinks and shots, sports products, new age beverages, ready-to-drink teas, liquid enhancers, freezables, ready-to-drink alcoholic beverages, hot chocolate, coffee, malt drinks, creamers/whiteners, cereals and beverage concentrates.

During 2015, our business operated through four reporting segments: DSS, Cott North America, Cott U.K. and All Other (which includes our Mexico operating segment, RCI operating segment and other miscellaneous expenses). We refer to our Cott North America, Cott U.K. and All Other reporting segments together as our “traditional business”. Our Corporate function is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments.

January 2, 2016

(in millions of U.S. dollars)

Cott
North
America

DSS

Cott
U.K.

All
Other

Corporate

Eliminations

Total

Revenue, net ¹

1,330.9

1,021.1

557.0

57.6

—

(22.6

)

2,944.0

Depreciation and amortization

79.6

119.9

22.7

1.6

—

223.8

Operating income (loss)

38.5

39.0

28.0

10.5

(16.6

)

—

99.4

Property, plant & equipment, net

293.4

372.6

97.6

6.2

—

769.8

Goodwill

120.0

579.1

56.0

4.5

—

759.6

Intangibles and other assets, net

222.4

402.5

86.8

—

711.7

Total assets ²

943.1

1,513.1

402.5

28.6

—

2,887.3

Additions to property, plant & equipment

30.9

67.2

11.6

1.1

—

110.8

^1.	Intersegment revenue between Cott North America and the other reporting segments was $22.6 million for the year ended January 2, 2016.

^2.	Excludes intersegment receivables, investments and notes receivable.


	January 3, 2015
(in millions of U.S. dollars)	Cott North America		DSS			Cott U.K.		All Other		Corporate			Eliminations			Total
Revenue, net ¹	$	1,433.5	$	28.7		$	597.9	$	65.0	$	—		$	(22.3	)		2,102.8
Depreciation and amortization		82.1		5.2			21.7		1.7		—			—			110.7
Operating income (loss)		29.7		(1.7	)		26.3		10.0		(48.6	)		—			15.7
Property, plant & equipment, net		331.9		415.4			109.9		7.3		—			—			864.5
Goodwill		123.7		556.9			58.5		4.5		—			—			743.6
Intangibles and other assets, net		243.1		415.5			99.2		0.2		—			—			758.0
Total assets ²		1,048.4		1,567.6			426.8		30.4		—			—			3,073.2
Additions to property, plant & equipment		29.2		3.4			13.3		0.8		—			—			46.7

^1.	Intersegment revenue between Cott North America and the other reporting segments was $22.3 million for the year ended January 3, 2015.

^2.	Excludes intersegment receivables, investments and notes receivable.


	December 28, 2013
(in millions of U.S. dollars)	Cott North America		Cott U.K.		All Other		Corporate			Eliminations			Total
Revenue, net ¹	$	1,556.2	$	494.3	$	64.5	$	—		$	(21.0	)		2,094.0
Depreciation and amortization		84.2		14.2		2.2		—			—			100.6
Operating income (loss)		67.1		25.6		7.2		(11.7	)		—			88.2
Property, plant & equipment, net		360.1		111.0		9.4		—			—			480.5
Goodwill		125.9		8.8		4.5		—			—			139.2
Intangibles and other assets, net		262.6		27.7		0.3		—			—			290.6
Total assets ²		1,075.2		296.3		39.2		—			—			1,410.7
Additions to property, plant & equipment		41.6		12.4		1.3		—			—			55.3

^1.	Intersegment revenue between Cott North America and the other reporting segments was $21.0 million for the year ended December 28, 2013.

^2.	Excludes intersegment receivables, investments and notes receivable.

For the year ended January 2, 2016, sales to Walmart accounted for 18.0% of our total revenue (2014—26.1%; 2013—30.1%), 33.2% of our Cott North America reporting segment revenue (2014—33.3%; 2013—36.1%), 11.5% of our Cott U.K. reporting segment revenue (2014—12.7%; 2013—14.8%), 3.7% of our All Other reporting segment revenue (2014—3.8%; 2013—3.9%) and 2.2% of our DSS reporting segment revenue (2014—2.7%).

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 for our DSS reporting segment from sales to external customers were generated exclusively in the United States. In our other reporting segments, revenues attributed to external customers located outside of Canada are displayed separately within the Cott U.K. and All Other reporting segments above, with the exception of revenues attributed to external customers located in the United States, which are reported within the Cott North America reporting segment. Revenues generated from sales to external customers in the United States for the Cott North America reporting segment were as follows:


	For the Year Ended
	January 2,		January 3,		December 28,
(in millions of U.S. dollars)	2016		2015		2013
United States	$	2,198.0	$	1,259.7	$	1,348.0

Total	$	2,198.0	$	1,259.7	$	1,348.0

Revenues by channel by reporting segment were as follows:

For the Year Ended January 2, 2016

(in millions of U.S. dollars)

Cott
North
America

DSS

Cott
U.K.

All Other

Eliminations

Total

Revenue

Private label retail

1,075.9

65.3

262.3

4.5

(1.6

)

1,406.4

Branded retail

114.9

84.1

169.8

4.1

(1.5

)

371.4

Contract packaging

111.8

—

114.0

22.2

(6.5

)

241.5

Home and office bottled water delivery

—

651.3

—

651.3

Office coffee services

—

121.3

—

121.3

Concentrate and other

28.3

99.1

10.9

26.8

(13.0

)

152.1

Total