Segment Reporting

3 Months Ended

Apr. 04, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 8—Segment Reporting

Our product lines include CSDs, 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, purified, spring, artesian, distilled and fluoridated bottled water, energy drinks and shots, sports products, new age beverages, ready-to-drink teas and alcoholic beverages, beverage concentrates, liquid enhancers and freezeables, as well as hot chocolate, coffee, malt drinks, creamers/whiteners and cereals. In addition, Cott is now a national direct-to-consumer provider of bottled water, office coffee and water filtration services offering a comprehensive portfolio of beverage products, equipment and supplies to approximately 1.5 million customer locations through its network of over 200 sales and distribution facilities and daily operation of over 2,100 routes. During the first quarter of 2014, our business operated through three reporting segments—North America, U.K., 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. In December 2014, we added a fourth reporting segment, DSS, in connection with the DSS Acquisition.

(in millions of U.S. dollars)	North America		DSS			U.K.		All Other		Corporate			Total
For the Three Months Ended April 4, 2015
External revenue 1	$	324.3	$	240.3			132.2	$	13.0	$	—		$	709.8
Depreciation and amortization		21.3		30.2			5.5		0.4		—			57.4
Operating income (loss)		7.2		(1.5	)		3.9		1.6		(4.5	)		6.7
Additions to property, plant and equipment		7.2		18.4			1.7		—		—			27.3
As of April 4, 2015
Property, plant and equipment, net		319.2		415.4			103.7		6.9		—			845.2
Goodwill		122.0		559.9			56.0		4.5		—			742.4
Intangibles and other assets		260.8		408.8			93.2		0.1		—			762.9
Total assets 2		1,035.8		1,548.0			418.0		31.8		—			3,033.6

^1.  Intersegment revenue between North America and the other reporting segments was $4.4 million for the three months ended April 4, 2015.

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

(in millions of U.S. dollars)	North America		DSS		U.K.		All Other		Corporate			Total
For the Three Months Ended March 29, 2014
External revenue 1	$	344.7	$	—	$	115.6	$	14.8	$	—		$	475.1
Depreciation and amortization		20.7		—		4.0		0.4		—			25.1
Operating income (loss)		2.5		—		2.2		2.5		(2.9	)		4.3
Additions to property, plant and equipment		5.8		—		3.0		—		—			8.8
As of January 3, 2015
Property, plant and equipment, net		331.9		415.4		109.9		7.3		—			864.5
Goodwill		123.7		556.9		58.5		4.5		—			743.6
Intangibles and other assets		266.8		415.5		99.2		0.2		—			781.7
Total assets 2		1,077.7		1,572.8		426.8		30.4		—			3,107.7

^1.  Intersegment revenue between North America and the other reporting segments was $6.1 million for the three months ended March 29, 2014.

². Excludes intersegment receivables, investments and notes receivable.

For the three months ended April 4, 2015, sales to Walmart accounted for 18.6% (March 29, 2014—28.6%) of our total revenue, 34.0% of our North America reporting segment revenue (March 29, 2014—34.7%), 11.6% of our U.K. reporting segment revenue (March 29, 2014—14.2%), 4.8% of our All Other reporting segment revenue (March 29, 2014—0.3%), and 2.6% of our DSS reporting segment revenue.

Credit risk arises from the potential default of a customer in meeting its financial obligations with 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 for our DSS reporting segment from sales to external customers were located exclusively in the United States. In our other reporting segments, revenues attributed to external customers located outside of Canada are displayed separately within the U.K. and All Other reporting segments above, with the exception of revenues attributed to external customers located in the United States, which are reported within the North America reporting segment. Revenues generated from sales to external customers in the United States for the North America reporting segment were as follows:

	For the Three Months Ended
(in millions of U.S. dollars)	April 4, 2015		March 29, 2014
United States	$	297.2	$	310.7
Total	$	297.2	$	310.7

Revenues by channel by reporting segment were as follows:

	For the Three Months Ended April 4, 2015
(in millions of U.S. dollars)	North America		DSS		U.K.		All Other		Total
Revenue
Private label retail	$	267.2	$	15.6	$	60.5	$	1.2	$	344.5
Branded retail		26.7		19.7		41.2		1.1		88.7
Contract packaging		25.5		—		28.4		4.0		57.9
Home and office bottled water delivery		—		149.6		—		—		149.6
Office coffee services		—		32.0		—		—		32.0
Other		4.9		23.4		2.1		6.7		37.1
Total	$	324.3	$	240.3	$	132.2	$	13.0	$	709.8

	For the Three Months Ended March 29, 2014
(in millions of U.S. dollars)	North America		U.K.		All Other		Total
Revenue
Private label retail	$	299.5	$	64.4	$	1.0	$	364.9
Branded retail		24.7		31.6		1.2		57.5
Contract packaging		17.1		18.9		6.8		42.8
Other		3.4		0.7		5.8		9.9
Total	$	344.7	$	115.6	$	14.8	$	475.1

Property, plant and equipment, net by geographic area as of April 4, 2015 and January 3, 2015 were as follows:

(in millions of U.S. dollars)	April 4, 2015		January 3, 2015
North America	$	734.6	$	747.3
U.K.		103.7		109.9
All Other		6.9		7.3
Total	$	845.2	$	864.5