Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting

Note 6 – Segment Reporting

We produce, package and distribute private-label CSDs, clear, still and sparkling flavored waters, energy-related drinks, juice, juice-based products, bottled water and ready-to-drink teas to regional and national grocery, mass-merchandise and wholesale chains and customers in the dollar convenience and drug channels through five reporting segments – North America (which includes our U.S. operating segment and our Canada operating segment), U.K. (which includes our United Kingdom reporting unit and our Continental European reporting unit), Mexico, Royal Crown International (“RCI”) and All Other.

(in millions of U.S. dollars)	North America		United Kingdom		Mexico			RCI		All Other		Total
For the Three Months Ended June 30, 2012
External revenue1	$	475.7	$	131.5	$	10.2		$	8.4	$	—	$	625.8
Depreciation and amortization		20.1		3.1		0.5			—		—		23.7
Operating income (loss)		31.2		10.5		(0.9	)		2.4		—		43.2
Additions to property, plant & equipment		16.4		3.1		0.2			—		—		19.7
For the Six Months Ended June 30, 2012
External revenue1	$	883.8	$	230.7	$	19.3		$	15.8	$	—	$	1,149.6
Depreciation and amortization		40.2		6.4		0.9			—		—		47.5
Operating income (loss)		48.5		13.7		(2.2	)		4.2		—		64.2
Additions to property, plant & equipment		29.0		8.1		0.3			—		—		37.4
As of June 30, 2012
Property, plant & equipment	$	385.1	$	94.6	$	9.1		$	—	$	—	$	488.8
Goodwill		125.1		—		—			4.5		—		129.6
Intangibles and other assets		314.5		14.2		0.4			—		—		329.1
Total assets2		1,236.9		248.1		29.8			13.2		0.7		1,528.7

¹  Intersegment revenue between North America and the other reporting segments was $4.0 million and $8.1 million for the three and six months ended June 30, 2012, respectively.

²  Excludes intersegment receivables, investments and notes receivable.

(in millions of U.S. dollars)	North America		United Kingdom		Mexico			RCI		All Other		Total
For the Three Months Ended July 2, 2011
External revenue1	$	491.3	$	126.0	$	16.2		$	6.5	$	—	$	640.0
Depreciation and amortization		19.9		3.3		0.6			—		—		23.8
Operating income (loss)		30.0		11.4		(0.6	)		2.1		—		42.9
Additions to property, plant & equipment		6.2		4.6		—			—		—		10.8
For the Six Months Ended July 2, 2011
External revenue1	$	920.1	$	212.3	$	27.6		$	14.1	$	—	$	1,174.1
Depreciation and amortization		39.6		6.7		1.1			—		—		47.4
Operating income (loss)		50.8		14.4		(2.1	)		4.3		—		67.4
Additions to property, plant & equipment		16.4		6.9		—			—		—		23.3
As of December 31, 2011
Property, plant & equipment	$	383.1	$	89.8	$	9.3		$	—	$	—	$	482.2
Goodwill		125.1		—		—			4.5		—		129.6
Intangibles and other assets		326.1		14.6		0.4			—		—		341.1
Total assets2		1,231.3		237.0		28.4			11.3		0.9		1,508.9

¹  Intersegment revenue between North America and the other reporting segments was $4.0 million and $8.2 million for the three and six months ended July 2, 2011, respectively.

²  Excludes intersegment receivables, investments and notes receivable.

For the six months ended June 30, 2012, sales to Walmart accounted for 31.8% (July 2, 2011 – 32.3%) of our total revenues, 36.8% of our North America reporting segment revenues (July 2, 2011 – 36.2%), 15.5% of our U.K. reporting segment revenues (July 2, 2011 – 14.7%), and 22.4% of our Mexico reporting segment revenues (July 2, 2011 – 50.0%).

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 are attributed to operating segments based on the location of the customer. Revenues by operating segment were as follows:

	For the Three Months Ended						For the Six Months Ended
(in millions of U.S. dollars)	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
United States	$	414.8		$	433.6		$	781.0		$	822.3
Canada		73.3			71.7			127.1			123.8
United Kingdom		131.5			126.0			230.7			212.3
Mexico		10.2			16.2			19.3			27.6
RCI		8.4			6.5			15.8			14.1
Elimination1		(12.4	)		(14.0	)		(24.3	)		(26.0	)
	$	625.8		$	640.0		$	1,149.6		$	1,174.1

¹  Represents intersegment revenue among our operating segments, of which $4.0 million and $8.1 million represents intersegment revenue between the North America reporting segment and our other operating segments for the three and six months ended June 30, 2012, respectively, compared to $4.0 million and $8.2 million for the three and six months ended July 2, 2011, respectively.

Revenues by product were as follows:

For the Three Months Ended June 30, 2012
(in millions of U.S. dollars)	North America		United Kingdom		Mexico		RCI		Total
Revenue
Carbonated soft drinks	$	187.2	$	45.0	$	5.7	$	—	$	237.9
Juice		139.3		3.7		0.3		—		143.3
Concentrate		3.4		0.5		—		8.4		12.3
All other products		145.8		82.3		4.2		—		232.3
Total	$	475.7	$	131.5	$	10.2	$	8.4	$	625.8

For the Six Months Ended June 30, 2012
(in millions of U.S. dollars)	North America		United Kingdom		Mexico		RCI		Total
Revenue
Carbonated soft drinks	$	351.0	$	78.7	$	11.3	$	—	$	441.0
Juice		273.2		6.8		0.4		—		280.4
Concentrate		6.3		1.3		—		15.8		23.4
All other products		253.3		143.9		7.6		—		404.8
Total	$	883.8	$	230.7	$	19.3	$	15.8	$	1,149.6

For the Three Months Ended June 30, 2012
(in millions of physical cases)	North America		United Kingdom		Mexico		RCI		Total
Volume - 8 oz equivalent cases - Total Beverage (including concentrate)
Carbonated soft drinks		83.3		23.0		3.9		—		110.2
Juice		32.1		1.0		0.2		—		33.3
Concentrate		22.4		4.1		—		71.7		98.2
All other products		66.4		27.6		2.6		—		96.6
Total		204.2		55.7		6.7		71.7		338.3

For the Six Months Ended June 30, 2012
(in millions of physical cases)	North America		United Kingdom		Mexico		RCI		Total
Volume - 8 oz equivalent cases - Total Beverage (including concentrate)
Carbonated soft drinks		158.2		41.1		7.9		—		207.2
Juice		62.5		1.8		0.3		—		64.6
Concentrate		45.6		8.1		—		142.7		196.4
All other products		117.5		49.6		4.4		—		171.5
Total		383.8		100.6		12.6		142.7		639.7

Property, plant and equipment by operating segment as of June 30, 2012 and December 31, 2011 was as follows:

(in millions of U.S. dollars)	June 30, 2012		December 31, 2011
United States	$	337.7	$	336.2
Canada		47.4		46.9
United Kingdom		94.6		89.8
Mexico		9.1		9.3
	$	488.8	$	482.2