Segment Reporting

Our broad portfolio of products includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, beverage concentrates, premium spring, sparkling and flavored water, and mineral water.

We operate through three reporting segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other (which includes our Cott Beverages LLC business and other miscellaneous expenses). 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.

During the first quarter of 2019, we reviewed and realigned our reporting segments to reflect how the business will be managed and results will be reviewed by the Chief Executive Officer, who is the Company’s chief operating decision maker. Following such review, we realigned our three reporting segments as follows: Route Based Services (which includes our DSS, Aquaterra, Mountain Valley, Eden and Aimia businesses), Coffee, Tea & Extract Solutions (which includes our S&D business) and All Other (which includes our Cott Beverages LLC business and other miscellaneous expenses). Our segment reporting results have been recast to reflect these changes for all periods presented.



(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations			Total
For the Three Months Ended March 30, 2019
Revenue, net ¹	$	420.5	$	148.0	$	7.2		$	(1.6	)	$	574.1
Depreciation and amortization	39.6		5.5		0.1			—			45.2
Operating income (loss)	14.0		3.4		(13.3		)	—			4.1
Additions to property, plant and equipment	21.9		1.8		0.1			—			23.8
As of March 30, 2019
Total assets ²	$	2,770.6	$	499.3	$	51.6		$	—		$	3,321.5

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¹	Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $1.6 million for the three months ended March 30, 2019.


²	Excludes intersegment receivables, investments and notes receivable.



(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other			Eliminations			Total
For the Three Months Ended March 31, 2018
Revenue, net ^1,2	$	398.1	$	146.1	$	17.7		$	(1.1	)	$	560.8
Depreciation and amortization	41.4		5.7		0.3			—			47.4
Operating income (loss)	14.0		4.0		(11.9		)	—			6.1
Additions to property, plant and equipment	27.1		2.1		0.6			—			29.8
As of December 29, 2018
Total assets ³	$	2,579.0	$	464.8	$	131.7		$	—		$	3,175.5

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¹	All Other includes $4.2 million of related party concentrate sales to discontinued operations for the three months ended March 31, 2018, respectively.


²	Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $1.1 million for the three months ended March 31, 2018.


³	Excludes intersegment receivables, investments and notes receivable.

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 March 30, 2019
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations			Total
Revenue, net
Home and office bottled water delivery	$	258.6	$	—	$	—	$	—		$	258.6
Coffee and tea services	48.6		120.2		—		(1.6		)	167.2
Retail	70.9		—		—		—			70.9
Other	42.4		27.8		7.2		—			77.4
Total	$	420.5	$	148.0	$	7.2	$	(1.6	)	$	574.1



	For the Three Months Ended March 31, 2018
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Eliminations			Total
Revenue, net
Home and office bottled water delivery ¹	$	245.5	$	—	$	—	$	—		$	245.5
Coffee and tea services	47.0		117.2		—		(1.0		)	163.2
Retail ¹	66.6		—		—		—			66.6
Other ¹	39.0		28.9		17.7		(0.1		)	85.5
Total	$	398.1	$	146.1	$	17.7	$	(1.1	)	$	560.8

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Revenues by channel of our Route Based Services reporting segment for the three months ended March 31, 2018 were revised to reclassify $16.6 million of revenues from the other channel to the home and office bottled water delivery channel as these activities are associated with the home and office bottled water delivery channel. In addition, we reclassified $3.5 million out of the retail channel and into the other channel in order to better align the activities of a recent acquisition with those of our U.S. route based services business.