Note 23—Guarantor Subsidiaries

Guarantor Subsidiaries of DSS Notes

The DSS Notes assumed as part of the DSS Acquisition are guaranteed on a senior secured basis pursuant to guarantees by Cott Corporation and certain other 100% owned direct and indirect subsidiaries (the “DSS Guarantor Subsidiaries”). DSS and each DSS Guarantor Subsidiary is 100% owned by Cott Corporation. The guarantees of the DSS Notes by Cott Corporation and the DSS Guarantor Subsidiaries are full and unconditional, and all such guarantees are joint and several. The guarantees of the DSS 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 the DSS Guarantor Subsidiaries due to the presentation of condensed consolidating financial information set forth in this Note, consistent with Securities and Exchange Commission (“SEC”) interpretations governing reporting of subsidiary financial information.

The following summarized condensed consolidating financial information of the Company sets forth on a consolidating basis, our Balance Sheets, Statements of Operations and Cash Flows for Cott Corporation, DSS, the DSS Guarantor Subsidiaries and our other non-guarantor subsidiaries (the “DSS Non-Guarantor Subsidiaries”). The supplemental financial information reflects our investments and those of DSS in their respective subsidiaries using the equity method of accounting.

Condensed Consolidating Statement of Operations

For the year ended January 2, 2016

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries		Elimination Entries			Consolidated
Revenue, net	$	147.7		$	1,021.1		$	1,702.6		$	131.6	$	(59.0	)	$	2,944.0
Cost of sales		124.6			402.8			1,474.7			105.4		(59.0	)		2,048.5

Gross profit		23.1			618.3			227.9			26.2		—			895.5
Selling, general and administrative expenses		23.3			557.3			175.7			12.3		—			768.6
Loss on disposal of property, plant & equipment		0.1			5.3			1.5			—		—			6.9
Acquisition and integration expenses		—			16.7			3.9			—		—			20.6

Operating (loss) income		(0.3	)		39.0			46.8			13.9		—			99.4
Other (income) expense, net		(8.6	)		(1.2	)		0.2			0.1		—			(9.5	)
Intercompany interest (income) expense, net		(4.9	)		43.5			(38.6	)		—		—			—
Interest expense, net		0.2			30.1			80.7			—		—			111.0

Income (loss) before income tax expense (benefit) and equity income		13.0			(33.4	)		4.5			13.8		—			(2.1	)
Income tax expense (benefit)		1.6			(8.1	)		(16.3	)		0.1		—			(22.7	)
Equity income		3.1			—			5.8			—		(8.9	)		—

Net income (loss)	$	14.5		$	(25.3	)	$	26.6		$	13.7	$	(8.9	)	$	20.6
Less: Net income attributable to non-controlling interests		—			—			—			6.1		—			6.1
Less: Accumulated dividends on convertible shares		4.5			—			—			—		—			4.5
Less: Accumulated dividends on non-convertible shares		1.4			—			—			—		—			1.4
Less: Foreign exchange impact on redemption of preferred shares		12.0			—			—			—		—			12.0
Net (loss) income attributed to Cott Corporation	$	(3.4	)	$	(25.3	)	$	26.6		$	7.6	$	(8.9	)	$	(3.4	)

Comprehensive (loss) income attributed to Cott Corporation	$	(29.3	)	$	(25.6	)	$	45.6		$	11.4	$	(31.4	)	$	(29.3	)

Condensed Consolidating Statement of Operations

For the year ended January 3, 2015

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries		Elimination Entries			Consolidated
Revenue, net	$	166.3		$	28.7		$	1,819.0		$	137.9	$	(49.1	)	$	2,102.8
Cost of sales		144.8			15.9			1,600.1			114.6		(49.1	)		1,826.3

Gross profit		21.5			12.8			218.9			23.3		—			276.5
Selling, general and administrative expenses		23.1			14.5			164.1			12.0		—			213.7
Loss on disposal of property, plant & equipment		0.2			0.1			1.3			0.1		—			1.7
Restructuring		2.1			—			0.3			—		—			2.4
Asset impairments		0.9			—			0.8			—		—			1.7
Acquisition and integration expenses		—			—			41.3			—		—			41.3

Operating (loss) income		(4.8	)		(1.8	)		11.1			11.2		—			15.7
Other (income) expense, net		(10.9	)		(0.1	)		31.9			0.1		—			21.0
Intercompany interest (income) expense, net		(0.7	)		2.6			(1.9	)		—		—			—
Interest expense, net		0.2			1.0			38.4			0.1		—			39.7

Income (loss) before income tax expense (benefit) and equity income		6.6			(5.3	)		(57.3	)		11.0		—			(45.0	)
Income tax expense (benefit)		0.3			(2.5	)		(59.8	)		0.6		—			(61.4	)
Equity income		4.5			—			6.1			—		(10.6	)		—

Net income (loss)	$	10.8		$	(2.8	)	$	8.6		$	10.4	$	(10.6	)	$	16.4
Less: Net income attributable to non-controlling interests		—			—			—			5.6		—			5.6
Less: Accumulated dividends on convertible shares		0.6			—			—			—		—			0.6
Less: Accumulated dividends on non-convertible shares		0.2			—			—			—		—			0.2
Net income (loss) attributed to Cott Corporation	$	10.0		$	(2.8	)	$	8.6		$	4.8	$	(10.6	)	$	10.0

Comprehensive (loss) income attributed to Cott Corporation	$	(23.4	)	$	(26.7	)	$	10.6		$	8.5	$	7.6		$	(23.4	)

Condensed Consolidating Statement of Operations

For the year ended December 28, 2013

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.		DSS Guarantor Subsidiaries		DSS Non-Guarantor Subsidiaries		Elimination Entries			Consolidated
Revenue, net	$	170.9		$	—	$	1,802.7	$	147.0	$	(26.6	)	$	2,094.0
Cost of sales		149.0			—		1,567.1		129.1		(26.6	)		1,818.6

Gross profit		21.9			—		235.6		17.9		—			275.4
Selling, general and administrative expenses		28.9			—		142.3		9.1		—			180.3
Loss on disposal of property, plant & equipment		0.1			—		1.6		0.1		—			1.8
Restructuring		0.5			—		1.2		0.3		—			2.0
Acquisition and integration expenses		—			—		3.1		—		—			3.1

Operating (loss) income		(7.6	)		—		87.4		8.4		—			88.2
Other expense, net		0.4			—		12.4		—		—			12.8
Interest expense, net		—			—		51.5		0.1		—			51.6

(Loss) income before income tax (benefit) expense and equity income		(8.0	)		—		23.5		8.3		—			23.8
Income tax (benefit) expense		(0.8	)		—		2.2		0.4		—			1.8
Equity income		24.2			—		3.0		—		(27.2	)		—

Net income	$	17.0		$	—	$	24.3	$	7.9	$	(27.2	)	$	22.0
Less: Net income attributable to non-controlling interests		—			—		—		5.0		—			5.0

Net income attributed to Cott Corporation	$	17.0		$	—	$	24.3	$	2.9	$	(27.2	)	$	17.0

Comprehensive income attributed to Cott Corporation	$	12.6		$	—	$	19.0	$	5.2	$	(24.2	)	$	12.6

Consolidating Balance Sheet

As of January 2, 2016

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	20.8		$	12.8		$	38.4		$	5.1		$	—		$	77.1
Accounts receivable, net of allowance		18.3			122.6			184.6			13.0			(45.2	)		293.3
Income taxes recoverable		—			0.5			0.9			0.2			—			1.6
Inventories		13.0			31.4			199.4			5.6			—			249.4
Prepaid expenses and other assets		2.2			4.8			10.0			0.2			—			17.2

Total current assets		54.3			172.1			433.3			24.1			(45.2	)		638.6
Property, plant & equipment, net		29.7			372.6			360.8			6.7			—			769.8
Goodwill		19.8			579.1			160.7			—			—			759.6
Intangibles and other assets, net		0.8			402.5			305.6			2.8			—			711.7
Deferred tax assets		7.4			—			38.2			0.2			(38.2	)		7.6
Due from affiliates		400.1			—			544.3			—			(944.4	)		—
Investments in subsidiaries		176.3			—			400.0			—			(576.3	)		—

Total assets	$	688.4		$	1,526.3		$	2,242.9		$	33.8		$	(1,604.1	)	$	2,887.3

LIABILITIES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	—		$	122.0		$	—		$	—		$	122.0
Current maturities of long-term debt		—			—			3.0			0.4			—			3.4
Accounts payable and accrued liabilities		47.6			131.8			295.1			8.3			(45.2	)		437.6

Total current liabilities		47.6			131.8			420.1			8.7			(45.2	)		563.0
Long-term debt		—			390.1			1,135.3			—			—			1,525.4
Deferred tax liabilities		—			97.7			17.0			—			(38.2	)		76.5
Other long-term liabilities		0.5			36.2			38.7			1.1			—			76.5
Due to affiliates		1.0			543.3			371.9			28.2			(944.4	)		—

Total liabilities		49.1			1,199.1			1,983.0			38.0			(1,027.8	)		2,241.4
*Equity*
Common shares, no par		534.7			355.5			683.1			38.6			(1,077.2	)		534.7
Additional paid-in-capital		51.2			—			—			—			—			51.2
Retained earnings (deficit)		129.6			(28.1	)		(437.5	)		(58.4	)		524.0			129.6
Accumulated other comprehensive (loss) income		(76.2	)		(0.2	)		14.3			9.0			(23.1	)		(76.2	)

Total Cott Corporation equity		639.3			327.2			259.9			(10.8	)		(576.3	)		639.3
Non-controlling interests		—			—			—			6.6			—			6.6

Total equity		639.3			327.2			259.9			(4.2	)		(576.3	)		645.9

Total liabilities and equity	$	688.4		$	1,526.3		$	2,242.9		$	33.8		$	(1,604.1	)	$	2,887.3

Consolidating Balance Sheet

As of January 3, 2015

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	6.2		$	34.4		$	38.2		$	7.4		$	—		$	86.2
Accounts receivable, net of allowance		16.2			105.4			358.8			12.2			(186.9	)		305.7
Income taxes recoverable		—			0.6			0.6			0.4			—			1.6
Inventories		12.4			34.2			210.3			5.5			—			262.4
Prepaid expenses and other assets		2.3			5.1			39.8			0.4			—			47.6

Total current assets		37.1			179.7			647.7			25.9			(186.9	)		703.5
Property, plant & equipment, net		38.2			415.5			403.0			7.8			—			864.5
Goodwill		23.4			556.9			163.3			—			—			743.6
Intangibles and other assets, net		0.7			415.6			335.0			6.7			—			758.0
Deferred tax assets		3.4			—			36.1			—			(36.1	)		3.4
Other tax receivable		0.1			—			0.1			—			—			0.2
Due from affiliates		183.8			—			403.0			0.1			(586.9	)		—
Investments in subsidiaries		436.3			—			973.1			—			(1,409.4	)		—

Total assets	$	723.0		$	1,567.7		$	2,961.3		$	40.5		$	(2,219.3	)	$	3,073.2

LIABILITIES, PREFERRED
SHARES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	—		$	229.0		$	—		$	—		$	229.0
Current maturities of long-term debt		0.1			—			3.0			0.9			—			4.0
Accounts payable and accrued liabilities		30.4			106.8			461.6			8.1			(186.9	)		420.0

Total current liabilities		30.5			106.8			693.6			9.0			(186.9	)		653.0
Long-term debt		—			405.6			1,135.1			0.6			—			1,541.3
Deferred tax liabilities		—			124.1			21.4			—			(36.1	)		109.4
Other long-term liabilities		0.4			29.6			40.5			1.3			—			71.8
Due to affiliates		1.3			548.8			3.9			32.9			(586.9	)		—

Total liabilities		32.2			1,214.9			1,894.5			43.8			(809.9	)		2,375.5
Convertible preferred shares		116.1			—			—			—			—			116.1
Non-convertible preferred shares		32.7			—			—			—			—			32.7
*Equity*
Common shares, no par		388.3			355.5			1,766.0			39.7			(2,161.2	)		388.3
Additional paid-in-capital		46.6			—			—			—			—			46.6
Retained earnings (deficit)		158.1			(2.8	)		(694.5	)		(55.1	)		752.4			158.1
Accumulated other comprehensive (loss) income		(51.0	)		0.1			(4.7	)		5.2			(0.6	)		(51.0	)

Total Cott Corporation equity		542.0			352.8			1,066.8			(10.2	)		(1,409.4	)		542.0
Non-controlling interests		—			—			—			6.9			—			6.9

Total equity		542.0			352.8			1,066.8			(3.3	)		(1,409.4	)		548.9

Total liabilities, preferred shares and equity	$	723.0		$	1,567.7		$	2,961.3		$	40.5		$	(2,219.3	)	$	3,073.2

Condensed Consolidating Statement of Cash Flows

For the year ended January 2, 2016

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Net cash provided by operating activities		56.2			58.4			152.9			17.3			(30.2	)		254.6

Investing Activities
Acquisition, net of cash received		—			(24.0	)		—			—			—			(24.0	)
Additions to property, plant & equipment		(2.0	)		(67.2	)		(40.3	)		(1.3	)		—			(110.8	)
Additions to intangibles and other assets		—			(3.1	)		(1.5	)		—			—			(4.6	)
Proceeds from sale of property, plant & equipment and sale-leaseback		—			14.3			26.6			—			—			40.9
Other investing activities		—			—			(1.2	)		—			—			(1.2	)

Net cash used in investing activities		(2.0	)		(80.0	)		(16.4	)		(1.3	)		—			(99.7	)

Financing Activities
Payments of long-term debt		(0.1	)		—			(2.9	)		(0.7	)					(3.7	)
Borrowings under ABL		—			—			994.5			—						994.5
Payments under ABL		—			—			(1,101.8	)		—						(1,101.8	)
Distributions to non-controlling interests		—			—			—			(8.5	)					(8.5	)
Issuance of common shares		143.1			—			—			—						143.1
Financing fees		—			—			(0.6	)		—						(0.6	)
Preferred shares repurchased and cancelled		(148.8	)		—			—			—						(148.8	)
Common shares repurchased and cancelled		(0.8	)		—			—			—						(0.8	)
Dividends to common and preferred shareholders		(31.0	)		—			—			—						(31.0	)
Payment of deferred consideration for acquisitions		—			—			(2.5	)		—						(2.5	)
Intercompany dividends		—			—			(21.4	)		(8.8	)		30.2			—

Net cash used in financing activities		(37.6	)		—			(134.7	)		(18.0	)		30.2			(160.1	)
Effect of exchange rate changes on cash		(2.0	)		—			(1.6	)		(0.3	)					(3.9	)

Net increase (decrease) in cash & cash equivalents		14.6			(21.6	)		0.2			(2.3	)		—			(9.1	)

Cash & cash equivalents, beginning of period		6.2			34.4			38.2			7.4			—			86.2

Cash & cash equivalents, end of period	$	20.8		$	12.8		$	38.4		$	5.1		$	—		$	77.1

Condensed Consolidating Statement of Cash Flows

For the year ended January 3, 2015

(in millions of U.S. dollars)


	Cott Corporation			DS Services of America, Inc.			DSS Guarantor Subsidiaries			DSS Non-Guarantor Subsidiaries			Elimination Entries			Consolidated
Net cash provided by operating activities		42.0			9.2			56.6			12.7			(63.8	)		56.7

Investing Activities
Acquisition, net of cash received		—			—			(798.5	)		—			—			(798.5	)
Additions to property, plant & equipment		(1.9	)		(3.6	)		(40.4	)		(0.8	)		—			(46.7	)
Additions to intangibles and other assets		—			—			(6.9	)		—			—			(6.9	)
Proceeds from sale of property, plant & equipment		—			—			1.8			—			—			1.8

Net cash used in investing activities		(1.9	)		(3.6	)		(844.0	)		(0.8	)		—			(850.3	)

Financing Activities
Payments of long-term debt		(0.1	)		—			(392.4	)		(1.1	)		—			(393.6	)
Issue of long-term debt		—			—			1,150.0			—			—			1,150.0
Borrowings under ABL		—			—			959.0			—			—			959.0
Payments under ABL		—			—			(779.6	)		—			—			(779.6	)
Distributions to non-controlling interests		—			—			—			(8.5	)		—			(8.5	)
Financing fees		—			—			(24.0	)		—			—			(24.0	)
Common shares repurchased and cancelled		(12.1	)		—			—			—			—			(12.1	)
Dividends to common shareholders		(22.8	)		—			—			—			—			(22.8	)
Payment of deferred consideration for acquisitions		—			—			(32.4	)		—			—			(32.4	)
Intercompany financing transactions		—			28.8			(28.8	)		—			—			—
Other financing activities		—			—			(0.3	)		—			—			(0.3	)
Intercompany dividends		—			—			(63.8	)		—			63.8			—

Net cash (used in) provided by financing activities		(35.0	)		28.8			787.7			(9.6	)		63.8			835.7
Effect of exchange rate changes on cash		(0.4	)		—			(2.3	)		(0.4	)		—			(3.1	)

Net increase (decrease) in cash & cash equivalents		4.7			34.4			(2.0	)		1.9			—			39.0

Cash & cash equivalents, beginning of period		1.5			—			40.2			5.5			—			47.2

Cash & cash equivalents, end of period	$	6.2		$	34.4		$	38.2		$	7.4		$	—		$	86.2

Condensed Consolidating Statement of Cash Flows

For the year ended December 28, 2013

(in millions of U.S. dollars)


						DSS			DSS
	Cott			DS Services of		Guarantor			Non-Guarantor			Elimination
	Corporation			America, Inc.		Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by operating activities		5.5			—		168.2			15.2			(34.0	)		154.9

Investing Activities
Acquisition, net of cash received		—			—		(11.2	)		—			—			(11.2	)
Additions to property, plant & equipment		(6.8	)		—		(47.2	)		(1.3	)		—			(55.3	)
Additions to intangibles and other assets		—			—		(5.9	)		—			—			(5.9	)
Proceeds from sale of property, plant & equipment		—			—		—			0.2			—			0.2
Proceeds from insurance recoveries		—			—		0.6			—			—			0.6

Net cash used in investing activities		(6.8	)		—		(63.7	)		(1.1	)		—			(71.6	)

Financing Activities
Payments of long-term debt		(0.1	)		—		(219.9	)		(0.8	)		—			(220.8	)
Borrowings under ABL		—			—		131.9			—			—			131.9
Payments under ABL		—			—		(82.1	)		—			—			(82.1	)
Distributions to non-controlling interests		—			—		—			(6.6	)		—			(6.6	)
Financing fees		(0.1	)		—		(0.7	)		—			—			(0.8	)
Common shares repurchased and cancelled		(13.0	)		—		—			—			—			(13.0	)
Dividends to common shareholders		(21.9	)		—		—			—			—			(21.9	)
Intercompany dividends		—			—		(27.1	)		(6.9	)		34.0			—

Net cash used in financing activities		(35.1	)		—		(197.9	)		(14.3	)		34.0			(213.3	)
Effect of exchange rate changes on cash		(1.9	)		—		(0.3	)		—			—			(2.2	)

Net decrease in cash &cash equivalents		(38.3	)		—		(93.7	)		(0.2	)		—			(132.2	)

Cash & cash equivalents, beginning of period		39.8			—		133.9			5.7			—			179.4

Cash & cash equivalents, end of period	$	1.5		$	—	$	40.2		$	5.5		$	—		$	47.2

Guarantor Subsidiaries of 2020 Notes and 2022 Notes

The 2022 Notes and 2020 Notes, each issued by our 100% owned subsidiary, CBI, are guaranteed on a senior basis pursuant to guarantees by Cott Corporation and certain other 100% owned direct and indirect subsidiaries (the “Cott Guarantor Subsidiaries”). CBI and each Cott Guarantor Subsidiary is 100% owned by Cott Corporation. The guarantees of the 2022 Notes and the 2020 Notes by Cott Corporation and the Cott Guarantor Subsidiaries are full and unconditional, and all such guarantees are joint and several. The guarantees of the Cott 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 the Cott Guarantor Subsidiaries due to the presentation of condensed consolidating financial information set forth in this Note, consistent with SEC interpretations governing reporting of subsidiary financial information.

The following summarized condensed consolidating financial information of the Company sets forth on a consolidating basis, our Balance Sheets, Statements of Operations and Cash Flows for Cott Corporation, CBI, the Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries (the “Cott Non-Guarantor Subsidiaries”). The supplemental financial information reflects our investments and those of CBI in their respective subsidiaries using the equity method of accounting.

Condensed Consolidating Statement of Operations

For the year ended January 2, 2016

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor		Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries		Entries			Consolidated
Revenue, net	$	147.7		$	715.0		$	2,008.7		$	131.6	$	(59.0	)	$	2,944.0
Cost of sales		124.6			611.5			1,266.0			105.4		(59.0	)		2,048.5

Gross profit		23.1			103.5			742.7			26.2		—			895.5
Selling, general and administrative expenses		23.3			91.6			641.4			12.3		—			768.6
Loss on disposal of property, plant & equipment		0.1			0.5			6.3			—		—			6.9
Acquisition and integration expenses		—			3.2			17.4			—		—			20.6

Operating (loss) income		(0.3	)		8.2			77.6			13.9		—			99.4
Other (income) expense, net		(8.6	)		—			(1.0	)		0.1		—			(9.5	)
Intercompany interest (income) expense, net		(4.9	)		(51.2	)		56.1			—		—			—
Interest expense, net		0.2			80.1			30.7			—		—			111.0

Income (loss) before income tax expense (benefit) and equity income (loss)		13.0			(20.7	)		(8.2	)		13.8		—			(2.1	)
Income tax expense (benefit)		1.6			(14.8	)		(9.6	)		0.1		—			(22.7	)
Equity income (loss)		3.1			6.1			(0.3	)		—		(8.9	)		—

Net income	$	14.5		$	0.2		$	1.1		$	13.7	$	(8.9	)	$	20.6
Less: Net income attributable to non-controlling interests		—			—			—			6.1		—			6.1
Less: Accumulated dividends on convertible shares		4.5			—			—			—		—			4.5
Less: Accumulated dividends on non-convertible shares		1.4			—			—			—		—			1.4
Less: Foreign exchange impact on redemption of preferred shares		12.0			—			—			—		—			12.0

Net (loss) income attributed to Cott Corporation	$	(3.4	)	$	0.2		$	1.1		$	7.6	$	(8.9	)	$	(3.4	)

Comprehensive (loss) income attributed to Cott Corporation	$	(29.3	)	$	(7.9	)	$	27.9		$	11.4	$	(31.4	)	$	(29.3	)

Condensed Consolidating Statement of Operations

For the year ended January 3, 2015

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor		Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries		Entries			Consolidated
Revenue, net	$	166.3		$	745.1		$	1,102.6		$	137.9	$	(49.1	)	$	2,102.8
Cost of sales		144.8			643.2			972.8			114.6		(49.1	)		1,826.3

Gross profit		21.5			101.9			129.8			23.3		—			276.5
Selling, general and administrative expenses		23.1			85.9			92.7			12.0		—			213.7
Loss on disposal of property, plant & equipment		0.2			0.1			1.3			0.1		—			1.7
Restructuring		2.1			0.3			—			—		—			2.4
Asset impairments		0.9			0.8			—			—		—			1.7
Acquisition and integration expenses		—			38.8			2.5			—		—			41.3

Operating (loss) income		(4.8	)		(24.0	)		33.3			11.2		—			15.7
Other (income) expense, net		(10.9	)		21.8			10.0			0.1		—			21.0
Intercompany interest (income) expense, net		(0.7	)		(18.4	)		19.1			—		—			—
Interest expense, net		0.2			37.2			2.2			0.1		—			39.7

Income (loss) before income tax expense (benefit) and equity income		6.6			(64.6	)		2.0			11.0		—			(45.0	)
Income tax expense (benefit)		0.3			(59.6	)		(2.7	)		0.6		—			(61.4	)
Equity income		4.5			6.1			—			—		(10.6	)		—

Net income	$	10.8		$	1.1		$	4.7		$	10.4	$	(10.6	)	$	16.4
Less: Net income attributable to non-controlling interests		—			—			—			5.6		—			5.6
Less: Accumulated dividends on convertible shares		0.6			—			—			—		—			0.6
Less: Accumulated dividends on non-convertible shares		0.2			—			—			—		—			0.2

Net income attributed to Cott Corporation	$	10.0		$	1.1		$	4.7		$	4.8	$	(10.6	)	$	10.0

Comprehensive (loss) income attributed to Cott Corporation	$	(23.4	)	$	(31.5	)	$	15.4		$	8.5	$	7.6		$	(23.4	)

Condensed Consolidating Statement of Operations

For the year ended December 28, 2013

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor		Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries		Entries			Consolidated
Revenue, net	$	170.9		$	780.4		$	1,022.3		$	147.0	$	(26.6	)	$	2,094.0
Cost of sales		149.0			668.5			898.6			129.1		(26.6	)		1,818.6

Gross profit		21.9			111.9			123.7			17.9		—			275.4
Selling, general and administrative expenses		28.9			74.1			68.2			9.1		—			180.3
Loss on disposal of property, plant & equipment		0.1			1.1			0.5			0.1		—			1.8
Restructuring		0.5			0.5			0.7			0.3		—			2.0
Acquisition and integration expenses		—			1.2			1.9			—		—			3.1

Operating (loss) income		(7.6	)		35.0			52.4			8.4		—			88.2
Other expense (income), net		0.4			12.5			(0.1	)		—		—			12.8
Intercompany interest (income) expense, net		—			(12.0	)		12.0			—		—			—
Interest expense, net		—			50.8			0.7			0.1		—			51.6

(Loss) income before income tax (benefit) expense and equity income (loss)		(8.0	)		(16.3	)		39.8			8.3		—			23.8
Income tax (benefit) expense		(0.8	)		4.6			(2.4	)		0.4		—			1.8
Equity income (loss)		24.2			5.2			(7.3	)		—		(22.1	)		—

Net income (loss)	$	17.0		$	(15.7	)	$	34.9		$	7.9	$	(22.1	)	$	22.0
Less: Net income attributable to non-controlling interests		—			—			—			5.0		—			5.0

Net income (loss) attributed to Cott Corporation	$	17.0		$	(15.7	)	$	34.9		$	2.9	$	(22.1	)	$	17.0

Comprehensive income (loss) attributed to Cott Corporation	$	12.6		$	(4.9	)	$	29.6		$	5.2	$	(29.9	)	$	12.6

Consolidating Balance Sheet

As of January 2, 2016

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor			Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries			Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	20.8		$	1.0		$	50.2		$	5.1		$	—		$	77.1
Accounts receivable, net of allowance		18.3			63.3			361.8			13.0			(163.1	)		293.3
Income taxes recoverable		—			0.6			0.8			0.2			—			1.6
Inventories		13.0			76.7			154.1			5.6			—			249.4
Prepaid expenses and other assets		2.2			4.6			10.2			0.2			—			17.2

Total current assets		54.3			146.2			577.1			24.1			(163.1	)		638.6
Property, plant & equipment, net		29.7			163.3			570.1			6.7			—			769.8
Goodwill		19.8			4.5			735.3			—			—			759.6
Intangibles and other assets, net		0.8			79.2			628.9			2.8			—			711.7
Deferred tax assets		7.4			38.2			—			0.2			(38.2	)		7.6
Due from affiliates		400.1			587.5			2.6			—			(990.2	)		—
Investments in subsidiaries		176.3			847.3			702.5			—			(1,726.1	)		—

Total assets	$	688.4		$	1,866.2		$	3,216.5		$	33.8		$	(2,917.6	)	$	2,887.3

LIABILITIES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	122.0		$	—		$	—		$	—		$	122.0
Current maturities of long-term debt		—			2.6			0.4			0.4			—			3.4
Accounts payable and accrued liabilities		47.6			234.6			310.2			8.3			(163.1	)		437.6

Total current liabilities		47.6			359.2			310.6			8.7			(163.1	)		563.0
Long-term debt		—			1,134.1			391.3			—			—			1,525.4
Deferred tax liabilities		—			—			114.7			—			(38.2	)		76.5
Other long-term liabilities		0.5			20.0			54.9			1.1			—			76.5
Due to affiliates		1.0			1.6			959.4			28.2			(990.2	)		—

Total liabilities		49.1			1,514.9			1,830.9			38.0			(1,191.5	)		2,241.4
*Equity*
Common shares, no par		534.7			701.5			1,486.9			38.6			(2,227.0	)		534.7
Additional paid-in-capital		51.2			—			—			—			—			51.2
Retained earnings (deficit)		129.6			(333.5	)		(132.1	)		(58.4	)		524.0			129.6
Accumulated other comprehensive (loss) income		(76.2	)		(16.7	)		30.8			9.0			(23.1	)		(76.2	)

Total Cott Corporation equity		639.3			351.3			1,385.6			(10.8	)		(1,726.1	)		639.3
Non-controlling interests		—			—			—			6.6			—			6.6

Total equity		639.3			351.3			1,385.6			(4.2	)		(1,726.1	)		645.9

Total liabilities and equity	$	688.4		$	1,866.2		$	3,216.5		$	33.8		$	(2,917.6	)	$	2,887.3

Consolidating Balance Sheet

As of January 3, 2015

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor			Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries			Entries			Consolidated
ASSETS
*Current assets*
Cash & cash equivalents	$	6.2		$	8.6		$	64.0		$	7.4		$	—		$	86.2
Accounts receivable, net of allowance		16.2			130.4			333.8			12.2			(186.9	)		305.7
Income taxes recoverable		—			0.6			0.6			0.4			—			1.6
Inventories		12.4			72.5			172.0			5.5			—			262.4
Prepaid expenses and other assets		2.3			33.9			11.0			0.4			—			47.6

Total current assets		37.1			246.0			581.4			25.9			(186.9	)		703.5
Property, plant & equipment, net		38.2			178.4			640.1			7.8			—			864.5
Goodwill		23.4			4.5			715.7			—			—			743.6
Intangibles and other assets, net		0.7			81.6			669.0			6.7			—			758.0
Deferred tax assets		3.4			36.1			—			—			(36.1	)		3.4
Other tax receivable		0.1			0.1			—			—			—			0.2
Due from affiliates		183.8			564.5			3.0			0.1			(751.4	)		—
Investments in subsidiaries		436.3			623.5			349.6			—			(1,409.4	)		—

Total assets	$	723.0		$	1,734.7		$	2,958.8		$	40.5		$	(2,383.8	)	$	3,073.2

LIABILITIES, PREFERRED SHARES AND EQUITY
*Current liabilities*
Short-term borrowings	$	—		$	229.0		$	—		$	—		$	—		$	229.0
Current maturities of long-term debt		0.1			2.5			0.5			0.9			—			4.0
Accounts payable and accrued liabilities		30.4			212.4			356.0			8.1			(186.9	)		420.0

Total current liabilities		30.5			443.9			356.5			9.0			(186.9	)		653.0
Long-term debt		—			1,133.4			407.3			0.6			—			1,541.3
Deferred tax liabilities		—			—			145.5			—			(36.1	)		109.4
Other long-term liabilities		0.4			5.8			64.3			1.3			—			71.8
Due to affiliates		1.3			1.7			715.5			32.9			(751.4	)		—

Total liabilities		32.2			1,584.8			1,689.1			43.8			(974.4	)		2,375.5
Convertible preferred shares		116.1			—			—			—			—			116.1
Non-convertible preferred shares		32.7			—			—			—			—			32.7
*Equity*
Common shares, no par		388.3			525.7			1,595.8			39.7			(2,161.2	)		388.3
Additional paid-in-capital		46.6			—			—			—			—			46.6
Retained earnings (deficit)		158.1			(367.2	)		(330.1	)		(55.1	)		752.4			158.1
Accumulated other comprehensive (loss) income		(51.0	)		(8.6	)		4.0			5.2			(0.6	)		(51.0	)

Total Cott Corporation equity		542.0			149.9			1,269.7			(10.2	)		(1,409.4	)		542.0
Non-controlling interests		—			—			—			6.9			—			6.9

Total equity		542.0			149.9			1,269.7			(3.3	)		(1,409.4	)		548.9

Total liabilities, preferred shares and equity	$	723.0		$	1,734.7		$	2,958.8		$	40.5		$	(2,383.8	)	$	3,073.2

Condensed Consolidating Statement of Cash Flows

For the year ended January 2, 2016

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor			Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by operating activities		56.2			127.4			106.5			17.3			(52.8	)		254.6

Investing Activities
Acquisition, net of cash received		—			—			(24.0	)		—			—			(24.0	)
Additions to property, plant & equipment		(2.0	)		(22.3	)		(85.2	)		(1.3	)		—			(110.8	)
Additions to intangibles and other assets		—			(1.5	)		(3.1	)		—			—			(4.6	)
Proceeds from sale of property, plant & equipment and sale-leaseback		—			16.0			24.9			—			—			40.9
Other investing activities		—			—			(1.2	)		—			—			(1.2	)

Net cash used in investing activities		(2.0	)		(7.8	)		(88.6	)		(1.3	)		—			(99.7	)

Financing Activities
Payments of long-term debt		(0.1	)		(2.6	)		(0.3	)		(0.7	)		—			(3.7	)
Borrowings under ABL		—			950.2			44.3			—			—			994.5
Payments under ABL		—			(1,057.3	)		(44.5	)		—			—			(1,101.8	)
Distributions to non-controlling interests		—			—			—			(8.5	)		—			(8.5	)
Issuance of common shares		143.1			—			—			—			—			143.1
Financing fees		—			(0.6	)		—			—			—			(0.6	)
Preferred shares repurchased and cancelled		(148.8	)		—			—			—			—			(148.8	)
Common shares repurchased and cancelled		(0.8	)		—			—			—			—			(0.8	)
Dividends to common and preferred shareholders		(31.0	)		—			—			—			—			(31.0	)
Payment of deferred consideration for acquisitions		—			—			(2.5	)		—			—			(2.5	)
Intercompany dividends		—			(16.9	)		(27.1	)		(8.8	)		52.8			—

Net cash used in financing activities		(37.6	)		(127.2	)		(30.1	)		(18.0	)		52.8			(160.1	)
Effect of exchange rate changes on cash		(2.0	)		—			(1.6	)		(0.3	)		—			(3.9	)

Net increase (decrease) in cash & cash equivalents		14.6			(7.6	)		(13.8	)		(2.3	)		—			(9.1	)

Cash & cash equivalents, beginning of period		6.2			8.6			64.0			7.4			—			86.2

Cash & cash equivalents, end of period	$	20.8		$	1.0		$	50.2		$	5.1		$	—		$	77.1

Condensed Consolidating Statement of Cash Flows

For the year ended January 3, 2015

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor			Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by (used in) operating activities		42.0			(29.2	)		112.9			21.5			(90.5	)		56.7

Investing Activities
Acquisition, net of cash received		—			(798.5	)		—			—			—			(798.5	)
Additions to property, plant & equipment		(1.9	)		(27.1	)		(16.9	)		(0.8	)		—			(46.7	)
Additions to intangibles and other assets		—			(6.9	)		—			—			—			(6.9	)
Proceeds from sale of property, plant & equipment		—			1.7			—			0.1			—			1.8

Net cash used in investing activities		(1.9	)		(830.8	)		(16.9	)		(0.7	)		—			(850.3	)

Financing Activities
Payments of long-term debt		(0.1	)		(392.0	)		(0.4	)		(1.1	)		—			(393.6	)
Issue of long-term debt		—			1,150.0			—			—			—			1,150.0
Borrowings under ABL		—			959.0			—			—			—			959.0
Payments under ABL		—			(746.2	)		(33.4	)		—			—			(779.6	)
Distributions to non-controlling interests		—			—			—			(8.5	)		—			(8.5	)
Financing fees		—			(24.0	)		—			—			—			(24.0	)
Common shares repurchased and cancelled		(12.1	)		—			—			—			—			(12.1	)
Dividends to common and preferred shareholders		(22.8	)		—			—			—			—			(22.8	)
Payment of deferred consideration for acquisitions		—			(32.4	)		—			—			—			(32.4	)
Intercompany financing transactions		—			(28.8	)		28.8			—			—			—
Other financing activities		—			(0.3	)		—			—			—			(0.3	)
Intercompany dividends		—			(17.8	)		(63.8	)		(8.9	)		90.5			—

Net cash (used in) provided by financing activities		(35.0	)		867.5			(68.8	)		(18.5	)		90.5			835.7
Effect of exchange rate changes on cash		(0.4	)		—			(2.3	)		(0.4	)		—			(3.1	)

Net increase in cash & cash equivalents		4.7			7.5			24.9			1.9			—			39.0

Cash & cash equivalents, beginning of period		1.5			1.1			39.1			5.5			—			47.2

Cash & cash equivalents, end of period	$	6.2		$	8.6		$	64.0		$	7.4		$	—		$	86.2

Condensed Consolidating Statement of Cash Flows

For the year ended December 28, 2013

(in millions of U.S. dollars)


							Cott			Cott
	Cott			Cott			Guarantor			Non-Guarantor			Elimination
	Corporation			Beverages Inc.			Subsidiaries			Subsidiaries			Entries			Consolidated
Net cash provided by (used in) operating activities		5.5			194.0			(25.8	)		15.2			(34.0	)		154.9

Investing Activities
Acquisition, net of cash received		—			(4.7	)		(6.5	)		—			—			(11.2	)
Additions to property, plant & equipment		(6.8	)		(34.8	)		(12.4	)		(1.3	)		—			(55.3	)
Additions to intangibles and other assets		—			(5.9	)		—			—			—			(5.9	)
Proceeds from sale of property, plant & equipment		—			—			—			0.2			—			0.2
Proceeds from insurance recoveries		—			0.6			—			—			—			0.6

Net cash used in investing activities		(6.8	)		(44.8	)		(18.9	)		(1.1	)		—			(71.6	)

Financing Activities
Payments of long-term debt		(0.1	)		(201.1	)		(18.8	)		(0.8	)		—			(220.8	)
Borrowings under ABL		—			89.0			42.9			—			—			131.9
Payments under ABL		—			(72.9	)		(9.2	)		—			—			(82.1	)
Distributions to non-controlling interests		—			—			—			(6.6	)		—			(6.6	)
Financing fees		(0.1	)		(0.6	)		(0.1	)		—			—			(0.8	)
Common shares repurchased and cancelled		(13.0	)		—			—			—			—			(13.0	)
Dividends to common shareholders		(21.9	)		—			—			—			—			(21.9	)
Intercompany dividends		—			—			(27.1	)		(6.9	)		34.0			—

Net cash used in financing activities		(35.1	)		(185.6	)		(12.3	)		(14.3	)		34.0			(213.3	)
Effect of exchange rate changes on cash		(1.9	)		—			(0.3	)		—			—			(2.2	)

Net decrease in cash & cash equivalents		(38.3	)		(36.4	)		(57.3	)		(0.2	)		—			(132.2	)

Cash & cash equivalents, beginning of period		39.8			37.5			96.4			5.7			—			179.4

Cash & cash equivalents, end of period	$	1.5		$	1.1		$	39.1		$	5.5		$	—		$	47.2