Note 7—Segment Reporting

Our product lines include 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, beverage concentrates, liquid enhancers, freezables and ready-to-drink alcoholic beverages, as well as hot chocolate, coffee, malt drinks, creamers/whiteners and cereal. Our business operates through three reporting segments—North America (which includes our U.S. operating segment and Canada operating segment), U.K. (which includes our United Kingdom operating segment and our Continental European operating segment), and All Other (which includes our Mexico operating segment, our Royal Crown International (“RCI”) operating segment and other Miscellaneous Expenses). Our corporate oversight function (“Corporate”) is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments. The primary measures used in evaluating our reporting segments are revenues, operating income (loss), and additions to property, plant and equipment, which have been included as part of our segment disclosures listed below. During the fourth quarter of 2013, management reviewed our reporting segments and subsequently combined our Mexico and RCI reporting segments with the segment previously classified as All Other into one segment classified as All Other. Prior year information has been updated to reflect the change in our reporting segments.

(in millions of U.S. dollars)

North
America

United
Kingdom

All
Other

Corporate

Total

For the Three Months Ended June 28, 2014

External revenue ¹

373.5

159.1

18.3

—

550.9

Depreciation and amortization

20.6

4.9

0.5

—

26.0

Operating income (loss)

15.1

10.8

3.1

(2.9

)

26.1

Additions to property, plant and equipment

7.2

4.6

—

11.8

For the Six Months Ended June 28, 2014

External revenue ¹

718.2

274.7

33.1

—

1,026.0

Depreciation and amortization

41.5

8.9

0.9

—

51.3

Operating income (loss)

17.4

13.0

5.6

(5.8

)

30.2

Additions to property, plant and equipment

13.0

7.6

—

20.6

As of June 28, 2014

Property, plant and equipment

347.2

123.0

9.0

—

479.2

Goodwill

123.9

62.7

4.5

—

191.1

Intangibles and other assets

265.2

113.8

0.2

—

379.2

Total assets ²

1,147.8

523.2

36.1

—

1,707.1

^1.	Intersegment revenue between North America and the other reporting segments was $6.1 million and $12.2 million for the three and six months ended June 28, 2014, respectively.

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


(in millions of U.S. dollars)	North America		United Kingdom		All Other		Corporate			Total

For the Three Months Ended June 29, 2013
External revenue ¹	$	418.1	$	127.9	$	17.8	$	—		$	563.8
Depreciation and amortization		21.1		3.3		0.5		—			24.9
Operating income (loss)		23.8		9.1		2.6		(2.9	)		32.6
Additions to property, plant and equipment		10.4		3.7		0.5		—			14.6

For the Six Months Ended June 29, 2013
External revenue ¹	$	811.3	$	225.3	$	32.6	$	—		$	1,069.2
Depreciation and amortization		42.1		6.5		1.0		—			49.6
Operating income (loss)		40.5		9.1		3.9		(5.8	)		47.7
Additions to property, plant and equipment		24.9		8.3		1.3		—			34.5

As of December 28, 2013
Property, plant and equipment		363.3		111.0		9.4		—			483.7
Goodwill		124.0		8.8		4.5		—			137.3
Intangibles and other assets		268.2		27.7		0.3		—			296.2
Total assets ²		1,089.5		296.3		40.3		—			1,426.1

^1.	Intersegment revenue between North America and the other reporting segments was $5.4 million and $9.2 million for the three and six months ended June 29, 2013, respectively.

2.	Excludes intersegment receivables, investments and notes receivable.

For the six months ended June 28, 2014, sales to Walmart accounted for 27.0% (June 29, 2013—30.7%) of our total revenue, 33.3% of our North America reporting segment revenue (June 29, 2013—36.1%), 13.3% of our U.K. reporting segment revenue (June 29, 2013—14.8%) and 2.2% of our All Other reporting segment revenue (June 29, 2013—5.4%).

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 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
United States	$	340.4		$	367.8		$	664.5		$	722.6
Canada		49.7			62.1			87.0			109.6
United Kingdom		159.1			127.9			274.7			225.3
All Other		18.3			17.8			33.1			32.6
Elimination ¹		(16.6	)		(11.8	)		(33.3	)		(20.9	)

Total	$	550.9		$	563.8		$	1,026.0		$	1,069.2

^1.

Represents intersegment revenue among our operating segments, of which $6.1 million and $12.2 million represents intersegment revenue between the North America reporting segment and our other operating segments for the three and six months ended June 28, 2014, respectively, compared to $5.4 million and $9.2 million for the three and six months ended June 29, 2013, respectively.

During the second quarter of 2014, we reclassified certain products in our North America reporting segment which impacts revenue by product but does not impact total revenue. Prior year reported revenue by product for our North America reporting segment has been revised to reflect this reclassification. Revenues by product by reporting segment were as follows:


For the Three Months Ended June 28, 2014
(in millions of U.S. dollars)	North America		United Kingdom		All Other		Total
Revenue
Carbonated soft drinks	$	133.7	$	47.9	$	2.4	$	184.0
Juice and drinks		106.8		13.7		1.0		121.5
Concentrate		4.0		0.5		7.6		12.1
Sparkling Waters/Mixers		78.5		21.6		0.8		100.9
Energy		6.7		34.1		2.9		43.7
All other products		43.8		41.3		3.6		88.7

Total	$	373.5	$	159.1	$	18.3	$	550.9


For the Six Months Ended June 28, 2014
(in millions of U.S. dollars)	North America		United Kingdom		All Other		Total
Revenue
Carbonated soft drinks	$	254.2	$	86.0	$	3.6	$	343.8
Juice and drinks		225.8		25.5		1.7		253.0
Concentrate		7.6		1.2		13.5		22.3
Sparkling Waters/Mixers		144.1		38.2		1.6		183.9
Energy		13.3		61.1		4.6		79.0
All other products		73.2		62.7		8.1		144.0

Total	$	718.2	$	274.7	$	33.1	$	1,026.0


For the Three Months Ended June 29, 2013
(in millions of U.S. dollars)	North America		United Kingdom		All Other		Total
Revenue
Carbonated soft drinks	$	168.8	$	40.0	$	3.8	$	212.6
Juice and drinks		108.6		5.6		0.9		115.1
Concentrate		2.8		0.6		7.3		10.7
Sparkling Waters/Mixers		79.9		18.4		1.0		99.3
Energy		8.3		36.8		1.5		46.6
All other products		49.7		26.5		3.3		79.5

Total	$	418.1	$	127.9	$	17.8	$	563.8


For the Six Months Ended June 29, 2013
(in millions of U.S. dollars)	North America		United Kingdom		All Other		Total
Revenue
Carbonated soft drinks	$	319.7	$	72.7	$	7.4	$	399.8
Juice and drinks		225.8		8.7		1.4		235.9
Concentrate		5.9		1.2		14.1		21.2
Sparkling Waters/Mixers		149.3		33.1		2.3		184.7
Energy		14.4		64.8		3.1		82.3
All other products		96.2		44.8		4.3		145.3

Total	$	811.3	$	225.3	$	32.6	$	1,069.2

Property, plant and equipment, net by geographic area as of June 28, 2014 and December 28, 2013 were as follows:


(in millions of U.S. dollars)	June 28, 2014		December 28, 2013
United States	$	306.0	$	319.5
Canada		41.2		43.8
United Kingdom		123.0		111.0
All Other		9.0		9.4

Total	$	479.2	$	483.7