Note 8—Segment Reporting

Our broad portfolio of products include bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, filtration equipment, clear, still and sparkling flavored waters, hot chocolate and beverage concentrates.

During the third quarter of 2017, we reviewed our reporting segments as a result of the Refresco transaction. Following such review, we reorganized our reporting segments into three reporting segments: Route Based Services (which includes our DSS, Aquaterra and Eden businesses), Coffee, Tea & Extract Solutions (which includes our S&D business) and All Other (which includes our Aimia and RCI concentrate businesses, the Columbus manufacturing facility and other miscellaneous expenses). Our corporate oversight function is not treated as a segment. This function includes certain general and administrative costs that are not allocated to any of the reporting segments. Segment reporting results have been recast to reflect these changes for all periods presented.

(in millions of U.S. dollars)

Route
Based
Services

Coffee, Tea
and Extract
Solutions

All
Other

Corporate

Total

For the Three Months Ended September 30, 2017

Revenue, net ¹

397.3

143.4

40.2

—

580.9

Depreciation and amortization

41.7

6.0

1.7

—

49.4

Operating income (loss)

34.6

3.7

4.7

(15.8

)

27.2

Additions to property, plant & equipment

34.8

3.3

0.1

—

38.2

For the Nine Months Ended September 30, 2017

Revenue, net ¹

1,134.9

440.2

123.3

—

1,698.4

Depreciation and amortization

119.1

17.2

5.5

—

141.8

Operating income (loss)

66.3

13.3

6.9

(37.6

)

48.9

Additions to property, plant & equipment

85.9

10.6

0.6

—

97.1

As of September 30, 2017

Total assets ²

2,370.3

471.8

206.3

—

3,048.4

^1.	All Other includes $9.5 million and $31.4 million of related party concentrate sales to discontinued operations for the three and nine months ended September 30, 2017.

²	Excludes intersegment receivables, investments and notes receivable.


(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions			All Other		Corporate			Total
For the Three Months Ended October 1, 2016
Revenue, net ¹	$	349.2	$	87.3		$	40.2	$	—		$	476.7
Depreciation and amortization		36.9		2.8			1.5		—			41.2
Operating income (loss)		21.2		(0.1	)		0.7		(8.2	)		13.6
Additions to property, plant & equipment		30.4		1.8			0.2		—			32.4
For the Nine Months Ended October 1, 2016
Revenue, net ¹	$	882.3	$	87.3		$	132.4	$	—		$	1,102.0
Depreciation and amortization		94.6		2.8			5.2		—			102.6
Operating income (loss)		44.7		(0.1	)		7.5		(33.3	)		18.8
Additions to property, plant & equipment		66.6		1.8			0.9		—			69.3
As of December 31, 2016
Total assets ²	$	2,287.1	$	463.2		$	164.3	$	—		$	2,914.6

^1.	All Other includes $9.0 million and $29.7 million of related party concentrate sales to discontinued operations for the three and nine months ended October 1, 2016.

²	Excludes intersegment receivables, investments and notes receivable.


Reconciliation of Segment Assets to Total Assets
(in millions of U.S. dollars)	September 30, 2017		December 31, 2016
Segment assets ¹	$	3,048.4	$	2,914.6
Assets of discontinued operations ¹		1,100.1		1,025.1

Total assets	$	4,148.5	$	3,939.7

^1.	Excludes intersegment receivables, investments and notes receivable.

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 September 30, 2017
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Total
Revenue, net
Home and office bottled water delivery	$	268.0	$	—	$	—	$	268.0
Coffee and tea services		44.2		120.9		0.7		165.8
Retail		43.5		—		11.7		55.2
Other		41.6		22.5		27.8		91.9

Total	$	397.3	$	143.4	$	40.2	$	580.9


	For the Nine Months Ended September 30, 2017
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Total
Revenue, net
Home and office bottled water delivery	$	753.7	$	—	$	—	$	753.7
Coffee and tea services		134.9		369.6		2.0		506.5
Retail		127.8		—		33.9		161.7
Other		118.5		70.6		87.4		276.5

Total	$	1,134.9	$	440.2	$	123.3	$	1,698.4


	For the Three Months Ended October 1, 2016
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Total
Revenue, net
Home and office bottled water delivery	$	235.9	$	—	$	—	$	235.9
Coffee and tea services		38.9		72.0		2.0		112.9
Retail		42.9		—		10.0		52.9
Other		31.5		15.3		28.2		75.0

Total	$	349.2	$	87.3	$	40.2	$	476.7


	For the Nine Months Ended October 1, 2016
(in millions of U.S. dollars)	Route Based Services		Coffee, Tea and Extract Solutions		All Other		Total
Revenue, net
Home and office bottled water delivery	$	575.1	$	—	$	—	$	575.1
Coffee and tea services		100.4		72.0		2.0		174.4
Retail		127.7		—		37.8		165.5
Other		79.1		15.3		92.6		187.0

Total	$	882.3	$	87.3	$	132.4	$	1,102.0