Segment Reporting

3 Months Ended

Apr. 02, 2016

Segment Reporting [Abstract]

Segment Reporting

Note 6—Segment Reporting

Our broad portfolio of products include bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, filtration equipment, carbonated soft drinks (“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, liquid enhancers, freezables, ready-to-drink alcoholic beverages, hot chocolate, coffee, malt drinks, creamers/whiteners, cereals and beverage concentrates.

Our business operates through four reporting segments: DSS, Cott North America, Cott U.K. and All Other (which includes our Mexico operating segment, Royal Crown International operating segment and other miscellaneous expenses). We refer to our Cott North America, Cott U.K. and All Other reporting segments together as our “traditional business”. 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.

	For the Three Months Ended April 2, 2016
			Cott
			North		Cott		All
(in millions of U.S. dollars)	DSS		America		U.K.		Other		Corporate			Eliminations			Total
Revenue, net1	$	257.3	$	313.3	$	120.6	$	13.6	$	—		$	(6.4	)	$	698.4
Depreciation and amortization		28.4		18.3		5.5		0.3		—			—			52.5
Operating income (loss)		5.7		0.6		9.9		2.5		(4.0	)		—			14.7
Additions to property, plant & equipment		17.8		9.4		2.0		0.3		—			—			29.5
As of April 2, 2016
Total assets 2		1,580.1		930.0		387.4		30.1		—			—			2,927.6

^1. Intersegment revenue between Cott North America and the other reporting segments was $6.4 million for the three months ended April 2, 2016.

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

	For the Three Months Ended April 4, 2015
				Cott
				North		Cott		All
(in millions of U.S. dollars)	DSS			America		U.K.		Other		Corporate			Eliminations			Total
Revenue, net1	$	240.3		$	328.7		132.2	$	13.0	$	—		$	(4.4	)	$	709.8
Depreciation and amortization		30.2			21.3		5.5		0.4		—			—			57.4
Operating (loss) income		(1.5	)		7.2		3.9		1.6		(4.5	)		—			6.7
Additions to property, plant & equipment		18.4			7.2		1.7		—		—			—			27.3
As of January 2, 2016														—
Total assets2		1,513.1			943.1		402.5		28.6		—			—			2,887.3

^1. Intersegment revenue between Cott 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.

For the three months ended April 2, 2016, sales to Walmart accounted for 18.2% of our total revenue (April 4, 2015—18.6%), 2.5% of our DSS reporting segment revenue (April 4, 2015—2.6%), 34.3% of our Cott North America reporting segment revenue (April 4, 2015—34.0%), 11.1% of our Cott U.K. reporting segment revenue (April 4, 2015—11.6%), and 1.6% of our All Other reporting segment revenue (April 4, 2015—4.8%).

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 April 2, 2016
			Cott
			North		Cott		All
(in millions of U.S. dollars)	DSS		America		U.K.		Other		Eliminations			Total
Revenue, net
Private label retail	$	16.9	$	248.5	$	51.0	$	0.5	$	(0.4	)	$	316.5
Branded retail		24.3		26.8		36.6		0.8		(0.3	)		88.2
Contract packaging		—		31.4		28.3		4.7		(2.1	)		62.3
Home and office bottled water delivery		162.0		—		—		—		—			162.0
Office coffee services		31.5		—		—		—		—			31.5
Concentrate and other		22.6		6.6		4.7		7.6		(3.6	)		37.9
Total	$	257.3	$	313.3	$	120.6	$	13.6	$	(6.4	)	$	698.4

	For the Three Months Ended April 4, 2015
			Cott
			North		Cott		All
(in millions of U.S. dollars)	DSS		America		U.K.		Other		Eliminations			Total
Revenue, net
Private label retail	$	15.6	$	267.5	$	60.5	$	1.2	$	(0.3	)	$	344.5
Branded retail		19.7		27.1		41.2		1.1		(0.4	)		88.7
Contract packaging		—		25.7		28.4		4.0		(0.2	)		57.9
Home and office bottled water delivery		149.6		—		—		—		—			149.6
Office coffee services		32.0		—		—		—		—			32.0
Concentrate and other		23.4		8.4		2.1		6.7		(3.5	)		37.1
Total	$	240.3	$	328.7	$	132.2	$	13.0	$	(4.4	)	$	709.8