Segments

9 Months Ended

Sep. 29, 2019

3.Segments

The Company evaluates segment reporting in accordance with the FASB Accounting Standards Codification 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the Chief Operating Decision Maker (the “CODM”). The Company has concluded the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer, as a group, represent the CODM. Asset information is not provided to the CODM. The Company believes three operating segments exist. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated revenues and income from operations. The additional two operating segments do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and therefore have been combined into “All Other.”

The Company’s segment results are as follows:

	Third Quarter						First Nine Months
(in thousands)	2019			2018			2019			2018
Net sales:
Nonalcoholic Beverages⁽¹⁾	$	1,236,261		$	1,172,584		$	3,547,373		$	3,405,288
All Other		92,501			93,493			275,358			273,490
Eliminations⁽²⁾		(57,733	)		(62,044	)		(175,131	)		(189,985	)
Consolidated net sales	$	1,271,029		$	1,204,033		$	3,647,600		$	3,488,793

Income from operations:
Nonalcoholic Beverages	$	48,248		$	39,361		$	120,613		$	32,705
All Other		5,598			5,043			20,601			12,381
Consolidated income from operations	$	53,846		$	44,404		$	141,214		$	45,086

Depreciation and amortization:
Nonalcoholic Beverages	$	43,067		$	44,050		$	128,986		$	133,095
All Other		2,521			2,539			7,430			7,401
Consolidated depreciation and amortization	$	45,588		$	46,589		$	136,416		$	140,496

(1)

The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Net sales and SD&A expenses were revised by $7.6 million in the third quarter of 2018 and $22.2 million in the first nine months of 2018. See Note 4 to the condensed consolidated financial statements for additional information.

(2)	The entire net sales elimination for each period presented represents net sales from All Other to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction.