Segment Reporting

6 Months Ended

Jul. 01, 2017

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, malt drinks, creamers/whiteners, cereals and beverage concentrates.

During the first quarter of 2016, we completed the acquisition of Aquaterra, followed by the S&D Acquisition and the Eden Acquisition in the third quarter of 2016. These businesses were added to our DSS reporting segment, which was then renamed “Water & Coffee Solutions” to reflect the increased scope of our offering. Other than the change in name, there was no impact on prior period results for this reporting segment. The Water & Coffee Solutions reporting segment produces a product category consisting primarily of bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers and filtration equipment.

Our business operates through four reporting segments: Water & Coffee Solutions, Cott North America, Cott U.K. and All Other. We refer to our Cott North America, Cott U.K. and All Other reporting segments together as our “traditional business.” Our corporate oversight function is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments.

(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Corporate			Eliminations			Total
For the Three Months Ended July 1, 2017
Revenue, net1	$	538.9	$	345.0	$	124.5	$	12.1	$	—		$	(6.4	)	$	1,014.1
Depreciation and amortization		47.0		17.8		4.8		0.1		—			—			69.7
Operating income (loss)		26.4		9.1		2.2		1.9		(9.0	)		—			30.6
Additions to property, plant & equipment		30.6		8.8		0.9		0.1		—			—			40.4
For the Six Months Ended July 1, 2017
Revenue, net1	$	1,034.4	$	646.1	$	218.7	$	23.6	$	—		$	(12.3	)	$	1,910.5
Depreciation and amortization		88.6		35.6		9.6		0.3		—			—			134.1
Operating income (loss)		41.3		10.2		2.2		3.5		(15.8	)		—			41.4
Additions to property, plant & equipment		58.7		17.1		4.5		0.7		—			—			81.0
As of July 1, 2017
Total assets2	$	2,814.1	$	916.2	$	359.1	$	28.2	$	—		$	—		$	4,117.6

^1.  Intersegment revenue between Cott North America and the other reporting segments was $6.4 million and $12.3 million for the three and six months ended July 1, 2017, respectively.

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

(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Corporate			Eliminations			Total
For the Three Months Ended July 2, 2016
Revenue, net1	$	275.7	$	349.2	$	132.3	$	14.8	$	—		$	(7.0	)	$	765.0
Depreciation and amortization		29.3		18.6		5.4		0.2		—			—			53.5
Operating income (loss)		17.8		18.4		11.7		3.4		(14.7	)		—			36.6
Additions to property, plant & equipment		22.7		6.6		3.8		0.1		—			—			33.2
For the Six Months Ended July 2, 2016
Revenue, net1	$	533.0	$	662.5	$	252.9	$	28.4	$	—		$	(13.4	)	$	1,463.4
Depreciation and amortization		57.7		36.9		10.9		0.5		—			—			106.0
Operating income (loss)		23.5		19.0		21.6		5.9		(18.7	)		—			51.3
Additions to property, plant & equipment		40.5		16.0		5.8		0.4		—			—			62.7
As of December 31, 2016													—
Total assets2	$	2,735.1	$	862.9	$	316.5	$	25.2	$	—		$	—		$	3,939.7

^1.  Intersegment revenue between Cott North America and the other reporting segments was $7.0 and $13.4 million for the three and six months ended July 2, 2016.

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

For the six months ended July 1, 2017, sales to Walmart accounted for 13.0% of our total revenue (July 2, 2016—17.9%), 1.2% of our Water & Coffee Solutions reporting segment revenue (July 2, 2016—2.4%), 32.8% of our Cott North America reporting segment revenue (July 2, 2016—33.7%), 11.2% of our Cott U.K. reporting segment revenue (July 2, 2016—10.4%), and 2.4% of our All Other reporting segment revenue (July 2, 2016—2.1%).

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 July 1, 2017
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	23.5	$	268.1	$	54.4	$	0.8	$	(0.4	)	$	346.4
Branded retail		20.3		24.1		40.3		1.1		(0.5	)		85.3
Contract packaging		—		45.7		24.9		3.3		(2.3	)		71.6
Home and office bottled water delivery		256.6		—		—		—		—			256.6
Coffee and tea services		173.8		—		0.7		—		—			174.5
Concentrate and other		64.7		7.1		4.2		6.9		(3.2	)		79.7
Total	$	538.9	$	345.0	$	124.5	$	12.1	$	(6.4	)	$	1,014.1

	For the Six Months Ended July 1, 2017
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	44.9	$	508.7	$	92.7	$	1.7	$	(0.8	)	$	647.2
Branded retail		39.4		46.7		69.8		2.0		(0.9	)		157.0
Contract packaging		—		76.8		46.7		6.3		(4.2	)		125.6
Home and office bottled water delivery		485.7		—		—		—		—			485.7
Coffee and tea services		339.4		—		1.3		—		—			340.7
Concentrate and other		125.0		13.9		8.2		13.6		(6.4	)		154.3
Total	$	1,034.4	$	646.1	$	218.7	$	23.6	$	(12.3	)	$	1,910.5

	For the Three Months Ended July 2, 2016
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	20.7	$	280.9	$	54.9	$	1.1	$	(0.3	)	$	357.3
Branded retail		22.9		24.8		41.2		1.0		(0.4	)		89.5
Contract packaging		—		35.7		31.0		5.0		(2.5	)		69.2
Home and office bottled water delivery		177.2		—		—		—		—			177.2
Coffee and tea services		30.0		—		0.8		—		—			30.8
Concentrate and other		24.9		7.8		4.4		7.7		(3.8	)		41.0
Total	$	275.7	$	349.2	$	132.3	$	14.8	$	(7.0	)	$	765.0

	For the Six Months Ended July 2, 2016
(in millions of U.S. dollars)	Water & Coffee Solutions		Cott North America		Cott U.K.		All Other		Eliminations			Total
Revenue, net
Private label retail	$	37.6	$	529.4	$	105.6	$	1.6	$	(0.7	)	$	673.5
Branded retail		47.2		51.6		77.4		1.8		(0.7	)		177.3
Contract packaging		—		67.1		59.3		9.7		(4.6	)		131.5
Home and office bottled water delivery		339.2		—		—		—		—			339.2
Coffee and tea services		61.5		—		1.6		—		—			63.1
Concentrate and other		47.5		14.4		9.0		15.3		(7.4	)		78.8
Total	$	533.0	$	662.5	$	252.9	$	28.4	$	(13.4	)	$	1,463.4