Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Summary of Discontinued Operations in Financial Statements

The major components of net income (loss) from discontinued operations, net of income taxes in the accompanying Consolidated Statements of Operations include the following:

	For the Three Months Ended
(in millions of U.S. dollars)	March 31, 2018		April 1, 2017
Revenue, net	$	111.2	$	371.8
Cost of sales		98.4		330.0
Operating income from discontinued operations		2.0		5.6
Gain on sale of discontinued operations		429.4		—
Net income (loss) from discontinued operations, before income taxes		404.0		(24.8	)
Income tax expense (benefit)1		46.6		(0.6	)
Net income (loss) from discontinued operations, net of income taxes		357.4		(24.2	)
Less: Net income attributable to non-controlling interests		0.6		2.0
Net income (loss) attributable to Cott Corporation – discontinued operations2	$	356.8	$	(26.2	)

^1. Overall the net income from discontinued operations, before income taxes for the three months ended March 31, 2018 resulted in income tax expense of $46.6 million. The Transaction resulted in a taxable gain on sale in the U.S., which utilized a significant portion of the existing U.S. net operating loss carry forwards. As a result, the Company is in a net deferred tax liability position in the U.S. and thus a tax benefit of approximately $25.0 million related to a release of the U.S. valuation allowance was recorded and is offsetting the overall income tax expense related to discontinued operations.

^2. Net income (loss) attributable to Cott Corporation – discontinued operations is inclusive of interest expense on short-term borrowings and debt required to be repaid or extinguished as part of divestiture of $3.4 million and $20.4 million for the three months ended March 31, 2018 and April 1, 2017, respectively.