Commitments and Contingencies

12 Months Ended

Jan. 02, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 18—Commitments and Contingencies

We lease buildings, machinery and equipment, computer hardware and furniture and fixtures. All contractual increases and rent free periods included in the lease contract are taken into account when calculating the minimum lease payment and recognized on a straight-line basis over the lease term. Certain leases have renewal periods and contingent rentals, which are not included in the table below. The minimum annual payments under operating leases are as follows:

(in millions of U.S. dollars)
2016	$	37.8
2017		35.2
2018		21.0
2019		18.8
2020		15.0
Thereafter		65.0
Total	$	192.8

Operating lease expenses were:

(in millions of U.S. dollars)
Year ended January 2, 2016	$	48.3
Year ended January 3, 2015		24.8
Year ended December 28, 2013		21.4
Total	$	94.5

Operating lease expenses are shown net of sublease income of $1.1 million for 2015. As of January 2, 2016, we had commitments for capital expenditures of approximately $7.0 million.

We are subject to various claims and legal proceedings with respect to matters such as governmental regulations, and other actions arising out of the normal course of business. Management believes that the resolution of these matters will not have a material adverse effect on our financial position, results of operations, or cash flow.

In June 2013, we completed the Calypso Soft Drinks Acquisition, which included deferred payments of approximately $2.3 million and $2.5 million paid on the first and second anniversaries of the closing date, respectively.

In March 2014, we had a favorable legal settlement in the amount of $3.5 million, of which $3.0 million was collected in April 2014 and $0.5 million was collected in December 2014.

In May 2014, we completed the Aimia Acquisition, which included deferred consideration of £19.9 million ($33.5 million), which was paid by us on September 15, 2014 and aggregate contingent consideration of up to £16.0 million ($23.6 million at exchange rates in effect on January 2, 2016), which is payable upon achievement of certain measures related to Aimia’s performance during the twelve months ending July 1, 2016.

We had $45.6 million in standby letters of credit outstanding as of January 2, 2016 ($6.9 million— January 3, 2015; $7.5 million—December 28, 2013).

We have future purchase obligations of $223.5 million that consist of commitments for the purchase of inventory, energy transactions, and payments related to professional fees and information technology outsourcing agreements. These obligations represent the minimum contractual obligations expected under the normal course of business.