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Share-based Compensation (Tables)

12 Months Ended

Dec. 29, 2012

The table below summarizes the share-based compensation expense for the years ended December 29, 2012, December 31, 2011, and January 1, 2011. This share-based compensation expense was recorded in selling, general, and administrative expenses in our Consolidated Statements of Operations. As used below: (i) “PSUs” mean performance share units granted under our Amended and Restated Performance Share Unit Plan (the “PSU Plan”), (ii) “Performance-based RSUs” mean restricted share units with performance-based vesting granted under the Company’s 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”); (iii) “Time-based RSUs” mean restricted share units with time-based vesting granted under the 2010 Equity Incentive Plan, (iv) “EISPP” means common share units granted under the Restated Executive Incentive Share Purchase Plan (the “Restated EISPP”); (v) “Director share awards” mean common shares granted to the non-management members of Cott’s board of directors under the 2010 Equity Incentive Plan, which were issued in consideration of such directors’ annual board retainer fee; and (vi) “Share appreciation rights” mean share appreciation rights granted under the Amended and Restated Share Appreciation Rights Plan.


	For the Year Ended
(in millions of U.S. dollars)	December 29, 2012		December 31, 2011			January 1, 2011
Stock options	$	0.4	$	—		$	1.0
PSUs		—		—			0.2
Performance-based RSUs		0.7		(1.2	)		1.4
Time-based RSUs		3.1		3.4			1.3
Directors’ share awards		0.7		0.7			0.7
Share appreciation rights		—		—			0.1

Total	$	4.9	$	2.9		$	4.7

Unrecognized Share-Based Compensation Expense

As of December 29, 2012, the unrecognized share-based compensation expense and years we expect to recognize it as compensation expense were as follows:


(in millions of U.S. dollars)	Unrecognized share-based compensation expense as of December 29, 2012		Weighted average years expected to recognize compensation

Time-based RSUs	$	2.3		1.8
Performance-based RSUs		1.7		2.0
Stock options		1.0		2.0

Total	$	5.0

Schedule of Stock Option Assumptions

The fair value of each option granted during the years ended December 29, 2012, December 31, 2011, and January 1, 2011 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	For the Year Ended
	December 29, 2012			December 31, 2011		January 1, 2011
Risk-free interest rate		2.4	%		n/a		2.5	%
Average expected life (years)		6.5			n/a		5.5
Expected volatility		66.4	%		n/a		74.8	%
Expected dividend yield		—			n/a		—

Stock Option Activity

Stock option activity was as follows:


	Shares (in thousands)			Weighted average exercise price		Weighted average remaining contractual term (years)		Aggregate intrinsic (C$) (in thousands)
Balance at January 2, 2010		831		$	18.97		4.6	$	618.1

Granted		250			8.01
Forfeited or expired		(377	)		20.33

Balance at January 1, 2011		704		$	16.67		4.2	$	625.0

Exercised		(275	)		1.32
Forfeited or expired		(145	)		38.27

Balance at December 31, 2011		284		$	20.47		1.7	$	263.0

Granted		385			6.47
Forfeited or expired		(201	)		24.40

Balance at December 29, 2012		468		$	7.28		7.3	$	819.9

Vested at December 29, 2012		125		$	9.49		2.1	$	330.0

Exercisable at December 29, 2012		125		$	9.49		2.1	$	330.0

Schedule of Stock Option Outstanding

Outstanding options at December 29, 2012 were as follows:


	Options Outstanding						Options Exercisable
Range of Exercise Prices (C$)	Number Exercisable (in thousands)		Remaining Contractual Life (Years)		Weighted Exercise Price (C$)		Number Exercisable (in thousands)		Weighted Exercise Price (C$)
$ 3.50		75		2.6	$	3.50		75	$	3.50
$ 6.47		343		9.2	$	6.47		—	$	—
$18.48		50		1.3	$	18.48		50	$	18.48

		468		7.3	$	7.28		125	$	9.49

Performance-Based RSU and Time-Based RSU Activity

During the year ended December 29, 2012, Performance-based RSU and Time-based RSU activity was as follows:


(in thousands)	Number of Performance- based RSUs			Number of Time-based RSUs

Balance at December 31, 2011		2,319			1,548
Awarded		331			442
Issued		—			(1,240	)
Cancelled		(1,558	)		—
Forfeited		(267	)		(221	)

Outstanding at December 29, 2012		825			529

Average U.S. Dollar Exchange Rate

The table below represents the average Canadian dollar to U.S. dollar exchange rate for the fiscal years ended 2012, 2011 and 2010.


	For the Year Ended
	December 29, 2012		December 31, 2011		January 1, 2011
Average exchange rate	$	1.000	$	1.012	$	0.971