Segment Reporting

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Segment Reporting

Note 5—Segment Reporting

Our broad portfolio of products include bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, filtration equipment, carbonated soft drinks (“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, malt drinks, creamers/whiteners, cereals and beverage concentrates.

During the first quarter of 2016, we completed the acquisition of Aquaterra followed by the S&D Acquisition and the Eden Acquisition in the third quarter of 2016. These businesses were added to our DSS reporting segment, which was then renamed “Water & Coffee Solutions” to reflect the increased scope of our offering. Other than the change in name, there was no impact on prior period results for this reporting segment. The Water & Coffee Solutions reporting segment produces a product category consisting primarily of bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers and filtration equipment.

Our business operates through four reporting segments: Water & Coffee Solutions, Cott North America, Cott U.K. and All Other. We refer to our Cott North America, Cott U.K. and All Other reporting segments together as our “traditional business.” Our corporate oversight function is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments.

	For the Three Months Ended April 1, 2017
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Corporate			Eliminations			Total
Revenue, net 1	$	495.5	$	301.1	$	94.2	$	11.5	$	—		$	(5.9	)	$	896.4
Depreciation and amortization		41.6		17.8		4.8		0.2		—			—			64.4
Operating income (loss)		14.9		1.1		—		1.6		(6.8	)		—			10.8
Additions to property, plant & equipment		28.1		8.3		3.6		0.6		—			—			40.6
As of April 1, 2017
Total assets 2		2,750.9		1,318.8		320.9		26.7		—			—			4,417.3

^1.  Intersegment revenue between Cott North America and the other reporting segments was $5.9 million for the three months ended April 1, 2017.

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

	For the Three Months Ended April 2, 2016
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Corporate			Eliminations			Total
Revenue, net 1	$	257.3	$	313.3	$	120.6	$	13.6	$	—		$	(6.4	)	$	698.4
Depreciation and amortization		28.4		18.3		5.5		0.3		—			—			52.5
Operating income (loss)		5.7		0.6		9.9		2.5		(4.0	)		—			14.7
Additions to property, plant & equipment		17.8		9.4		2.0		0.3		—			—			29.5
As of December 31, 2016													—
Total assets 2		2,735.1		862.9		316.5		25.2		—			—			3,939.7

^1.  Intersegment revenue between Cott North America and the other reporting segments was $6.4 million for the three months ended April 2, 2016.

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

For the three months ended April 1, 2017, sales to Walmart accounted for 13.0% of our total revenue (April 2, 2016—18.2%), 1.3% of our Water & Coffee Solutions reporting segment revenue (April 2, 2016—2.5%), 33.4% of our Cott North America reporting segment revenue (April 2, 2016—34.3%), 9.6% of our Cott U.K. reporting segment revenue (April 2, 2016—11.1%), and 2.7% of our All Other reporting segment revenue (April 2, 2016—1.6%).

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 by channel by reporting segment were as follows:

	For the Three Months Ended April 1, 2017
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	21.4	$	240.6	$	38.3	$	0.9	$	(0.4	)	$	300.8
Branded retail		19.1		22.6		29.5		0.9		(0.4	)		71.7
Contract packaging		—		31.1		21.8		3.0		(1.9	)		54.0
Home and office bottled water delivery		229.1		—		—		—		—			229.1
Coffee and tea services		165.6		—		0.6		—		—			166.2
Concentrate and other		60.3		6.8		4.0		6.7		(3.2	)		74.6
Total	$	495.5	$	301.1	$	94.2	$	11.5	$	(5.9	)	$	896.4

	For the Three Months Ended April 2, 2016
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	16.9	$	248.5	$	50.7	$	0.5	$	(0.4	)	$	316.2
Branded retail		24.3		26.8		36.2		0.8		(0.3	)		87.8
Contract packaging		—		31.4		28.3		4.7		(2.1	)		62.3
Home and office bottled water delivery		162.0		—		—		—		—			162.0
Coffee and tea services		31.5		—		0.8		—		—			32.3
Concentrate and other		22.6		6.6		4.6		7.6		(3.6	)		37.8
Total	$	257.3	$	313.3	$	120.6	$	13.6	$	(6.4	)	$	698.4