Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 20, 2020 | Jun. 29, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-31410 | ||
Entity Registrant Name | COTT CORP | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Tax Identification Number | 98-0154711 | ||
Entity Address, Address Line One | 4221 West Boy Scout Boulevard | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Tampa, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33607 | ||
Entity Address, Country | US | ||
City Area Code | 813 | ||
Local Phone Number | 313-1732 | ||
Title of 12(b) Security | COMMON SHARES WITHOUT NOMINAL OR PAR VALUE | ||
Trading Symbol | COT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,759.1 | ||
Entity Common Stock, Shares Outstanding | 135,359,506 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000884713 | ||
Current Fiscal Year End Date | --12-28 | ||
Documents Incorporated by Reference [Text Block] | Portions of our definitive proxy statement for the 2020 Annual Meeting of Shareowners, to be filed within 120 days of December 28, 2019 , are incorporated by reference in Part III. Such proxy statement, except for the parts therein which have been specifically incorporated by reference, shall not be deemed “filed” for the purposes of this Annual Report on Form 10-K. | ||
BCB | |||
Entity Information [Line Items] | |||
Trading Symbol | BCB |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenue, net | $ 600.2 | $ 616.1 | $ 604.1 | $ 574.1 | $ 599.2 | $ 609.3 | $ 603.6 | $ 560.8 | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 |
Cost of sales | 294.6 | 289.9 | 291 | 291.2 | 309 | 298.8 | 302.2 | 287.3 | 1,166.7 | 1,197.3 | 1,142 |
Gross profit | 305.6 | 326.2 | 313.1 | 282.9 | 290.2 | 310.5 | 301.4 | 273.5 | 1,227.8 | 1,175.6 | 1,127.7 |
Selling, general and administrative expenses | 275.9 | 280.8 | 284.2 | 272.1 | 275.9 | 279.9 | 275.2 | 261.1 | 1,113 | 1,092.1 | 1,043.2 |
Loss on disposal of property, plant and equipment, net | 2.9 | 1.1 | 1.6 | 1.9 | 5.6 | 1.2 | 1.3 | 1.3 | 7.5 | 9.4 | 10.2 |
Acquisition and integration expenses | 6.7 | 2.7 | 2.7 | 4.8 | 4.5 | 1.6 | 4.2 | 5 | 16.9 | 15.3 | 30.4 |
Operating income | 20.1 | 41.6 | 24.6 | 4.1 | 4.2 | 27.8 | 20.7 | 6.1 | 90.4 | 58.8 | 43.9 |
Other expense (income), net | 2.8 | (42.9) | (8) | ||||||||
Interest expense, net | 78.2 | 77.6 | 85.5 | ||||||||
Income (loss) from continuing operations before income taxes | 9.4 | 24.1 | (33.6) | ||||||||
Income tax expense (benefit) | 9.5 | (4.8) | (30) | ||||||||
Net (loss) income from continuing operations | 6.6 | 8.6 | 4.4 | (19.7) | 3.6 | 8.5 | 12.2 | 4.6 | (0.1) | 28.9 | (3.6) |
Net income from discontinued operations, net of income taxes | 1.5 | 1.5 | 0 | 0 | (2.9) | 1.5 | (1.4) | 357.4 | 3 | 354.6 | 10.7 |
Net income | 2.9 | 383.5 | 7.1 | ||||||||
Less: Net income attributable to non-controlling interests - discontinued operations | 0 | 0 | 0 | 0.6 | 0 | 0.6 | 8.5 | ||||
Net income (loss) attributable to Cott Corporation | $ 8.1 | $ 10.1 | $ 4.4 | $ (19.7) | $ 0.7 | $ 10 | $ 10.8 | $ 361.4 | $ 2.9 | $ 382.9 | $ (1.4) |
Basic: | |||||||||||
Continuing operations (In USD per share) | $ 0.05 | $ 0.06 | $ 0.03 | $ (0.14) | $ 0.03 | $ 0.06 | $ 0.09 | $ 0.03 | $ 0 | $ 0.21 | $ (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.55 | 0.02 | 2.54 | 0.02 |
Net income (loss) (In USD per share) | 0.06 | 0.07 | 0.03 | (0.14) | 0.01 | 0.07 | 0.08 | 2.58 | 0.02 | 2.75 | (0.01) |
Diluted: | |||||||||||
Continuing operations (In USD per share) | 0.05 | 0.06 | 0.03 | (0.14) | 0.03 | 0.06 | 0.09 | 0.03 | 0 | 0.21 | (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.51 | 0.02 | 2.50 | 0.02 |
Net income (loss) (In USD per share) | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.14) | $ 0.01 | $ 0.07 | $ 0.08 | $ 2.54 | $ 0.02 | $ 2.71 | $ (0.01) |
Weighted average common shares outstanding (in thousands) | |||||||||||
Basic (in shares) | 135,224 | 139,097 | 139,078 | ||||||||
Diluted (in shares) | 135,224 | 141,436 | 139,078 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2.9 | $ 383.5 | $ 7.1 | |
Other comprehensive income (loss): | ||||
Currency translation adjustment | 13.6 | (16.1) | 27.2 | |
Pension benefit plan, net of tax | [1],[2] | (1.3) | 17.1 | (2.4) |
Gain (loss) on derivative instruments, net of tax | [3] | 20.9 | (8.3) | (1.3) |
Total other comprehensive income (loss) | 33.2 | (7.3) | 23.5 | |
Comprehensive income | 36.1 | 376.2 | 30.6 | |
Less: Comprehensive income attributable to non-controlling interests | 0 | 0.6 | 8.5 | |
Comprehensive income attributable to Cott Corporation | 36.1 | 375.6 | 22.1 | |
Tax Impact | (3.6) | |||
Tax (expense) benefit | 0.2 | (0.1) | $ 0.6 | |
Derivative instruments, tax (benefit) expense | $ 6.8 | $ (2.5) | ||
[1] | Net of $3.6 million of associated tax impact that resulted in an increase to the gain on sale of discontinued operations for the year ended December 29, 2018 . | |||
[2] | Net of the effect of a $0.2 million tax benefit, $0.1 million tax expense and $0.6 million tax benefit for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. | |||
[3] | Net of the effect of $6.8 million tax expense and $2.5 million tax benefit for the years ended December 28, 2019 and December 29, 2018 , respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 205.5 | $ 170.8 |
Accounts receivable, net of allowance of $9.1 ($9.6 as of December 29, 2018) | 279.3 | 308.3 |
Inventories | 122.5 | 129.6 |
Prepaid expenses and other current assets | 35 | 27.2 |
Total current assets | 642.3 | 635.9 |
Property, plant and equipment, net | 647.8 | |
Property, plant and equipment, net | 624.7 | |
Operating lease right-of-use assets | 203.1 | |
Goodwill | 1,175.7 | 1,143.9 |
Intangible assets, net | 701.4 | 739.2 |
Deferred tax assets | 0 | 0.1 |
Other long-term assets, net | 20.6 | 31.7 |
Total assets | 3,390.9 | 3,175.5 |
Current liabilities | ||
Short-term borrowings | 92.4 | 89 |
Current maturities of long-term debt | 7.4 | 3 |
Accounts payable and accrued liabilities | 466.1 | 469 |
Current operating lease obligations | 41.7 | |
Total current liabilities | 607.6 | 561 |
Long-term debt | 1,260.2 | 1,250.2 |
Operating lease obligations | 167.8 | |
Deferred tax liabilities | 127.4 | 124.3 |
Other long-term liabilities | 61.7 | 69.6 |
Total liabilities | 2,224.7 | 2,005.1 |
Commitments and contingencies | ||
Equity | ||
Common shares, no par value - 134,803,211 shares issued (December 29, 2018 - 136,195,108 shares issued) | 892.3 | 899.4 |
Additional paid-in-capital | 77.4 | 73.9 |
Retained earnings | 265 | 298.8 |
Accumulated other comprehensive loss | (68.5) | (101.7) |
Total Cott Corporation equity | 1,166.2 | 1,170.4 |
Total liabilities and equity | $ 3,390.9 | $ 3,175.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 9.1 | $ 9.6 |
Capital stock, shares issued | 134,803,211 | 136,195,108 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Cash flows from operating activities of continuing operations: | |||
Net income | $ 2.9 | $ 383.5 | $ 7.1 |
Net income from discontinued operations, net of income taxes | 3 | 354.6 | 10.7 |
Net (loss) income from continuing operations | (0.1) | 28.9 | (3.6) |
Adjustments to reconcile net (loss) income from continuing operations to cash flows from operating activities: | |||
Depreciation and amortization | 192.8 | 194.6 | 188.6 |
Amortization of financing fees | 3.5 | 3.5 | 1.9 |
Share-based compensation expense | 12.4 | 17.3 | 17.5 |
Benefit for deferred income taxes | (2.1) | (6.7) | (33.9) |
Gain on extinguishment of long-term debt | 0 | (7.1) | (1.5) |
Loss (gain) on sale of business | 6 | (6) | 0 |
Loss on disposal of property, plant and equipment, net | 7.5 | 9.4 | 10.2 |
Other non-cash items | (2.2) | (3) | (3.5) |
Change in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 15.1 | (10.8) | (8) |
Inventories | (7.5) | (0.5) | (2) |
Prepaid expenses and other current assets | 2.6 | (4) | 0.9 |
Other assets | 1.7 | (0.5) | 2.1 |
Accounts payable and accrued liabilities and other liabilities | 20.3 | 29.2 | 7.3 |
Net cash provided by operating activities from continuing operations | 250 | 244.3 | 176 |
Cash flows from investing activities of continuing operations: | |||
Acquisitions, net of cash received | (76.3) | (164) | (35.5) |
Additions to property, plant and equipment | (114.6) | (130.8) | (121.3) |
Additions to intangible assets | (10.9) | (13.2) | (5.6) |
Proceeds from sale of property, plant and equipment and sale-leaseback | 2.9 | 4.1 | 7.8 |
Proceeds from sale of business, net of cash sold | 50.5 | 12.8 | 0 |
Proceeds from sale of equity securities | 0 | 7.9 | 0 |
Other investing activities | 0.6 | 0.5 | 1 |
Net cash used in investing activities from continuing operations | (147.8) | (282.7) | (153.6) |
Cash flows from financing activities of continuing operations: | |||
Payments of long-term debt | (5.6) | (264.5) | (101.5) |
Issuance of long-term debt | 0 | 2.7 | 750 |
Borrowings under ABL | 75.1 | 98.4 | 0 |
Payments under ABL | (64.2) | (17.4) | 0 |
Premiums and costs paid upon extinguishment of long-term debt | 0 | (12.5) | (7.7) |
Issuance of common shares | 1.2 | 6.4 | 3.5 |
Common shares repurchased and canceled | (31.8) | (74.9) | (3.8) |
Financing fees | 0 | (1.5) | (11.1) |
Dividends paid to common and preferred shareholders | (32.5) | (33.4) | (33.4) |
Payment of contingent consideration for acquisitions | (0.3) | (2.8) | 0 |
Other financing activities | (7.9) | 2.9 | 0.5 |
Net cash (used in) provided by financing activities from continuing operations | (66) | (296.6) | 596.5 |
Cash flows from discontinued operations: | |||
Operating activities of discontinued operations | (3.2) | (97.6) | 102.7 |
Investing activities of discontinued operations | 0 | 1,225.5 | (44.7) |
Financing activities of discontinued operations | 0 | (769.7) | (643.4) |
Net cash (used in) provided by discontinued operations | (3.2) | 358.2 | (585.4) |
Effect of exchange rate changes on cash | 1.7 | (10.3) | 6.3 |
Net increase in cash, cash equivalents and restricted cash | 34.7 | 12.9 | 39.8 |
Cash and cash equivalents and restricted cash, beginning of year | 170.8 | 157.9 | 118.1 |
Cash and cash equivalents and restricted cash, end of year | 205.5 | 170.8 | 157.9 |
Cash and cash equivalents and restricted cash of discontinued operations, end of year | 0 | 0 | 66 |
Cash and cash equivalents and restricted cash from continuing operations, end of year | 205.5 | 170.8 | 91.9 |
Supplemental Non-cash Investing and Financing Activities: | |||
Additions to property, plant and equipment through accounts payable and accrued liabilities and other liabilities | 14.2 | 11.6 | 10.9 |
Accrued deferred financing fees | 0 | 0 | 0.6 |
Dividends payable issued through accounts payable and other accrued liabilities | 0.1 | 0.3 | 0.3 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 75.2 | 68.9 | 81.6 |
Cash paid for income taxes, net | $ 6.9 | $ 9.6 | $ 1.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Shares | Additional Paid-in-Capital | Retained Earnings (Accumulated deficit) | Accumulated Other Comprehensive Loss | Non-Controlling Interests | 2010 Equity Incentive Plan | 2010 Equity Incentive PlanCommon Shares | 2010 Equity Incentive PlanAdditional Paid-in-Capital |
Balance, shares at Dec. 31, 2016 | 138,591,000 | ||||||||
Balance at Dec. 31, 2016 | $ 873.8 | $ 909.3 | $ 54.2 | $ 22.9 | $ (117.9) | $ 5.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | 7.1 | (1.4) | 8.5 | ||||||
Other comprehensive (loss) income, net of tax | 23.5 | 23.5 | |||||||
Common shares dividends | (33.7) | (33.7) | |||||||
Share-based compensation | 22.9 | 22.9 | |||||||
Common shares repurchased and canceled (in shares) | (277,000) | ||||||||
Common shares repurchased and canceled | (3.8) | $ (3.8) | |||||||
Common shares issued- Equity Incentive Plan(in shares) | 1,004,000 | ||||||||
Common shares issued - Equity Incentive Plan | $ 1.7 | $ 9.4 | $ (7.7) | ||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 34,000 | ||||||||
Common shares issued - Dividend Reinvestment Plan | 0.5 | $ 0.5 | |||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 137,000 | ||||||||
Common shares issued - Employee Stock Purchase Plan | 1.4 | $ 1.7 | (0.3) | ||||||
Distributions to non-controlling interests | (7.7) | (7.7) | |||||||
Balance, shares at Dec. 30, 2017 | 139,489,000 | ||||||||
Balance at Dec. 30, 2017 | 885.7 | $ 917.1 | 69.1 | (12.2) | (94.4) | 6.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | 383.5 | 382.9 | 0.6 | ||||||
Other comprehensive (loss) income, net of tax | (7.3) | (7.3) | |||||||
Common shares dividends | (33.7) | (33.7) | |||||||
Share-based compensation | 17.4 | 17.4 | |||||||
Common shares repurchased and canceled (in shares) | (4,981,000) | ||||||||
Common shares repurchased and canceled | (74.9) | $ (36.7) | (38.2) | ||||||
Common shares issued- Equity Incentive Plan(in shares) | 1,581,000 | ||||||||
Common shares issued - Equity Incentive Plan | 5 | $ 17.4 | (12.4) | ||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 20,000 | ||||||||
Common shares issued - Dividend Reinvestment Plan | 0.3 | $ 0.3 | |||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 86,000 | ||||||||
Common shares issued - Employee Stock Purchase Plan | 1.1 | $ 1.3 | (0.2) | ||||||
Distributions to non-controlling interests | (0.9) | (0.9) | |||||||
Sale of subsidiary shares of non-controlling interests | $ (5.8) | (5.8) | |||||||
Balance, shares at Dec. 29, 2018 | 136,195,108 | 136,195,000 | |||||||
Balance at Dec. 29, 2018 | $ 1,170.4 | $ 899.4 | 73.9 | 298.8 | (101.7) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | 2.9 | 2.9 | |||||||
Other comprehensive (loss) income, net of tax | 33.2 | 33.2 | |||||||
Common shares dividends | (32.6) | (32.6) | |||||||
Share-based compensation | 12.4 | 12.4 | |||||||
Common shares repurchased and canceled (in shares) | (2,270,000) | ||||||||
Common shares repurchased and canceled | (31.8) | $ (17.2) | (14.6) | ||||||
Common shares issued- Equity Incentive Plan(in shares) | 781,000 | ||||||||
Common shares issued - Equity Incentive Plan | $ 0.1 | $ 8.8 | $ (8.7) | ||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 3,000 | ||||||||
Common shares issued - Dividend Reinvestment Plan | 0 | ||||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 94,000 | ||||||||
Common shares issued - Employee Stock Purchase Plan | $ 1.1 | $ 1.3 | (0.2) | ||||||
Balance, shares at Dec. 28, 2019 | 134,803,211 | 134,803,000 | |||||||
Balance at Dec. 28, 2019 | $ 1,166.2 | $ 892.3 | $ 77.4 | $ 265 | $ (68.5) | $ 0 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in USD per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business As used herein, “Cott,” “the Company,” “our Company,” “Cott Corporation,” “we,” “us,” or “our” refers to Cott Corporation, together with its consolidated subsidiaries. Cott is a water and filtration service company with a leading volume-based national presence in the North American and European home and office delivery industry for bottled water. Our platform reaches over 2.5 million customers or delivery points across North America and Europe and is supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors. This enables us to efficiently service residences, businesses, and small and large retailers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation These Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) using the U.S. dollar as the reporting currency, as the majority of our business and the majority of our shareowners are in the United States. Our fiscal year is based on either a 52- or 53- week period ending on the Saturday closest to December 31. For the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , we had 52 - weeks of activity. One of our subsidiaries uses a Gregorian calendar year-end which differs from the Company’s 52- or 53- week fiscal year-end. Differences arising from the use of the different fiscal year-ends were not deemed material for the fiscal years ended December 28, 2019 , December 29, 2018 or December 30, 2017 . Basis of consolidation The Consolidated Financial Statements include our accounts, our wholly-owned and majority-owned subsidiaries that we control. All intercompany transactions and accounts have been eliminated in consolidation. Changes in presentation Certain prior year amounts have been reclassified to conform to the current year presentation on the accompanying Consolidated Statements of Cash Flows. We reclassified amortization of senior notes premium and commodity hedging loss (gain), net to other non-cash items. These reclassifications had no effect on net cash provided by operating activities. During the first quarter of 2019 , we reviewed and realigned our reporting segments to reflect how the business will be managed and the results will be reviewed by the Chief Executive Officer, who is the Company’s chief operating decision maker. Following such review, we realigned our three reporting segments as follows: Route Based Services (which includes our DS Services of America, Inc. (“DSS”), Aquaterra Corporation (“Aquaterra”), Mountain Valley Spring Company (“Mountain Valley”), Eden Springs Europe B.V. (“Eden”) and Aimia Foods (“Aimia”) businesses); Coffee, Tea and Extract Solutions (which includes our S. & D. Coffee, Inc. (“S&D”) business); and All Other (which includes miscellaneous expenses and our Cott Beverages LLC business, which was sold in the first quarter of 2019 ). Our segment reporting results have been recast to reflect these changes for all periods presented. Discontinued operations In July 2017, we entered into a Share Purchase Agreement with Refresco Group B.V., a Dutch company (“Refresco”), pursuant to which we sold to Refresco, on January 30, 2018, our carbonated soft drinks and juice businesses via the sale of our North America, United Kingdom and Mexico business units (including the Canadian business) and our Royal Crown International finished goods export business (collectively, the “Traditional Business” and such transaction, the “Traditional Business Disposition”). The Traditional Business Disposition was structured as a sale of the assets of our Canadian business and a sale of the stock of the operating subsidiaries engaged in the Traditional Business in the other jurisdictions after we completed an internal reorganization. The aggregate deal consideration was $1.25 billion , paid at closing in cash, with customary post-closing adjustments resolved in December 2018 by the payment of $7.9 million from the Company to Refresco. The sale of the Traditional Business represented a strategic shift and had a major effect on our operations and, therefore, the Traditional Business is presented herein as discontinued operations. The Traditional Business excludes our Route Based Services and Coffee, Tea and Extract Solutions reporting segments, and our Cott Beverages LLC business. Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Consolidated Financial Statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, realization of deferred income tax assets, the resolution of tax contingencies and projected benefit plan obligations. Revenue recognition We recognize revenue, net of sales returns, when ownership passes to customers for products manufactured in our own plants and/or by third-parties on our behalf, and when prices to our customers are fixed or determinable and collection is reasonably assured. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue. Although we occasionally accept returns of products from our customers, historically returns have not been material. We also recognize rental income on filtration, brewers and dispensing equipment at customer locations based on the terms of the related rental agreements, which are generally measured based on 28 -day periods. Amounts billed to customers for rental in future periods are deferred and included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. Sales incentives We participate in various incentive programs with our customers, including volume-based incentives, contractual rebates and promotional allowances. Volume incentives are based on our customers achieving volume targets for a period of time. Volume incentives and contractual rebates are deducted from revenue and accrued as the incentives are earned and are based on management’s estimate of the total the customer is expected to earn and claim. Promotional allowances are accrued at the time of revenue recognition and are deducted from revenue based on either the volume shipped or the volume sold at the retailer location, depending on the terms of the allowance. We regularly review customer sales forecasts to ensure volume targets will be met and adjust incentive accruals and revenues accordingly. Cost of sales We record costs associated with the manufacturing of our products in cost of sales. Shipping and handling costs incurred to store, prepare and move products between production facilities or from production facilities to branch locations or storage facilities are recorded in cost of sales. Shipping and handling costs incurred to deliver products from our Route Based Services and Coffee, Tea and Extract Solutions reporting segment branch locations to the end-user consumer of those products are recorded in selling, general and administrative (“SG&A”) expenses. All other costs incurred in shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A were $492.9 million , $473.8 million , and $440.8 million for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 , respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. Selling, general and administrative expenses We record all other expenses not charged to production as SG&A expenses. Advertising costs are expensed at the commencement of an advertising campaign and are recognized as a component of SG&A expenses. Advertising costs are not significant to any reporting segment other than Route Based Services. Advertising costs expensed were approximately $23.8 million , $24.0 million , and $21.6 million for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 , respectively. Share-based compensation We have in effect equity incentive plans under which Time-based RSUs, Performance-based RSUs, non-qualified stock options and director share awards have been granted (as such terms are defined in Note 9 of the Consolidated Financial Statements). Share-based compensation expense for all share-based compensation awards is based on the grant-date fair value. We recognized these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years , and account for forfeitures when they occur. The fair value of the Company’s Time-based RSUs, Performance-based RSUs and director share awards are based on the closing market price of its common shares on the date of grant as stated on the NYSE. We estimate the fair value of non-qualified options as of the date of grant using the Black-Scholes option pricing model. This model considers, among other factors, the expected life of the award, the expected volatility of the Company’s share price, and expected dividends. The Company records share-based compensation expense in SG&A expenses. All excess tax benefits and tax deficiencies related to share-based compensation are recognized in results of operations at settlement or expiration of the award. The excess tax benefit or deficiency is calculated as the difference between the grant date price and the price of our common shares on the vesting or exercise date. Cash and cash equivalents Cash and cash equivalents include all highly liquid investments with original maturities not exceeding three months at the time of purchase. The fair values of our cash and cash equivalents approximate the amounts shown on our Consolidated Balance Sheets due to their short-term nature. Allowance for doubtful accounts A portion of our accounts receivable is not expected to be collected due to non-payment, bankruptcies and deductions. Our accounting policy for the allowance for doubtful accounts requires us to reserve an amount based on the evaluation of the aging of accounts receivable, detailed analysis of high-risk customers’ accounts, and the overall market and economic conditions of our customers. This evaluation considers the customer demographic, such as large commercial customers as compared to small businesses or individual customers. We consider our accounts receivable delinquent or past due based on payment terms established with each customer. Accounts receivable are written off when the account is determined to be uncollectible. Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or net realizable value. Finished goods and work-in-process include the inventory costs of raw materials, direct labor and manufacturing overhead costs. As a result, we use an inventory reserve to adjust our inventory costs down to a net realizable value and to reserve for estimated obsolescence of both raw materials and finished goods. Customer deposits The Company generally collects deposits on three- and five-gallon bottles used by our home and office water delivery customers. Such deposits are refunded only after customers return such bottles in satisfactory condition. The associated bottle deposit liability is estimated based on the number of water customers, average consumption and return rates and bottle deposit market rates. The Company analyzes these assumptions quarterly and adjusts the bottle deposit liability as necessary. Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is allocated between cost of sales and SG&A expenses and is determined using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the remaining life of the lease or useful life of the asset, whichever is shorter. Maintenance and repairs are charged to operating expense when incurred. Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. At inception, we determine whether an agreement represents a lease and, at commencement, we evaluate each lease agreement to determine whether the lease constitutes an operating or financing lease. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. As described below under “Recently adopted accounting pronouncements,” we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02 - Leases as of December 30, 2018. With the adoption of ASU 2016-02, we recorded operating lease right-of-use assets and operating lease obligations on our balance sheet. Right-of-use lease assets represent our right to use the underlying asset for the lease term, and the operating lease obligation represents our commitment to make the lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with terms of one-year or less. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually. The following table summarizes our goodwill on a reporting segment basis as of December 28, 2019 and December 29, 2018 : Reporting Segment (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Total Balance December 30, 2017 $ 982.4 $ 117.8 $ 4.5 $ 1,104.7 Goodwill acquired during the year 63.3 — — 63.3 Adjustments (3.0 ) — — (3.0 ) Foreign exchange $ (21.1 ) $ — $ — $ (21.1 ) Balance December 29, 2018 1,021.6 117.8 4.5 1,143.9 Goodwill acquired during the year 35.3 10.4 — 45.7 Adjustments (3.1 ) — — (3.1 ) Divestitures — — (4.5 ) (4.5 ) Foreign exchange (6.3 ) — — (6.3 ) Balance December 28, 2019 $ 1,047.5 $ 128.2 $ — $ 1,175.7 Cott operates through two operating segments: Route Based Services and Coffee, Tea and Extract Solutions. These two operating segments are also reportable segments. We test goodwill for impairment at least annually on the first day of the fourth quarter, based on our reporting unit carrying values, calculated as total assets less non-interest bearing liabilities, as of the end of the third quarter, or more frequently if we determine a triggering event has occurred during the year. Any impairment loss is recognized in our results of operations. We evaluate goodwill for impairment on a reporting unit basis, which is an operating segment or a level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment can be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Our Route Based Services operating segment was determined to have five components: DSS, Mountain Valley, Aquaterra, Eden and Aimia. We have determined that DSS and Aquaterra have similar economic characteristics and have aggregated them as a single reporting unit for the purpose of testing goodwill for impairment (“DSSAqua”). For the purpose of testing goodwill for impairment in 2019 , we have determined our reporting units are DSSAqua, Mountain Valley, Eden, Aimia and S&D. DSSAqua, Mountain Valley, Eden and Aimia are components of the Route Based Services operating segment. S&D is a component of the Coffee, Tea and Extract Solutions operating segment. We had goodwill of $1,175.7 million on our Consolidated Balance Sheet at December 28, 2019 , which represents amounts for the DSSAqua, Mountain Valley, Eden, Aimia and S&D reporting units. For purposes of the 2019 annual test, we elected to perform a qualitative assessment for our DSSAqua, Mountain Valley, Aimia and S&D reporting units to assess whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management relied on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. Based on these factors, management concluded that it was more likely than not that the fair values of the DSSAqua, Mountain Valley, Aimia and S&D reporting units were greater than their respective carrying amounts, including goodwill, indicating no impairment. Goodwill allocated to the DSSAqua, Mountain Valley, Aimia and S&D reporting units as of December 28, 2019 is $657.0 million , $16.0 million , $53.4 million and $128.2 million , respectively. For the Eden reporting unit, we elected to bypass the qualitative assessment and performed a quantitative analysis due to a decline in 2019 actual versus projected operating results. We determined the fair value of the reporting unit being evaluated using a mix of the income approach (which is based on the discounted cash flows of the reporting unit) and the guideline public company approach. We weighted the income approach and the guideline public company approach at 50% each to determine the fair value of the reporting unit. We believe using a combination of these approaches provides a more accurate valuation because it incorporates the expected cash generation of the Company in addition to how a third-party market participant would value the reporting unit. As the business is assumed to continue in perpetuity, the discounted future cash flows includes a terminal value. Critical assumptions used in our 2019 valuation of the Eden reporting unit included the anticipated future cash flows, weighted-average terminal growth rate of 1.5% and a discount rate of 8.5% . Anticipated future cash flows assumption reflects projected revenue growth rates, operating profit margins and capital expenditures. The terminal growth rate assumption incorporated into the discounted cash flow calculation reflects our long-term view of the market and industry, projected changes in the sale of our products, pricing of such products and operating profit margins. The discount rate was determined using various factors and sensitive assumptions, including bond yields, size premiums and tax rates. This rate was based on the weighted average cost of capital a market participant would use if evaluating the reporting unit as an investment. These assumptions are considered significant unobservable inputs and represent our best estimate of assumptions that market participants would use to determine the fair value of the respective reporting units. The key inputs into the discounted cash flow analysis were consistent with market data, where available, indicating that the assumptions used were in a reasonable range of observable market data. Based on the quantitative assessment including consideration of the sensitivity of the assumptions made and methods used to determine fair value, industry trends and other relevant factors, we noted that the estimated fair value of the Eden reporting unit exceeded its carrying value by approximately 4.2% . Therefore no goodwill impairment charges were recorded in the fourth quarter ended December 28, 2019 . The Company performed a sensitivity analysis that noted that an increase in the discount rate of 50 basis points would have an adverse impact on the impairment testing result. Goodwill allocated to the Eden reporting unit as of December 28, 2019 is $321.1 million . Each year during the fourth quarter, we re-evaluate the assumptions used in our assessments, such as revenue growth rates, operating profit margins and discount rates, to reflect any significant changes in the business environment that could materially affect the fair value of our reporting units. Based on the evaluations performed in 2019 , we determined that the fair value of each of our reporting units exceeded their carrying amounts. Intangible assets As of December 28, 2019 , our intangible assets subject to amortization, net of accumulated amortization were $414.3 million , consisting principally of $367.6 million of customer relationships that arose from acquisitions, $25.6 million of software, and $11.2 million of patents. Customer relationships are typically amortized on an accelerated basis for the period over which we expect to receive the economic benefits. The customer relationship intangible assets acquired in our acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the estimated undiscounted after-tax cash flows. We review the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a loss of a significant customer. Our review of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in the intangible asset would result in either an impairment in the value of the intangible asset or an accelerated amortization of any remaining value and could lead to an impairment of the fixed assets that were used to service that customer. In 2018, we recorded $10.0 million in customer relationships acquired with the Mountain Valley Acquisition (as defined in Note 5 to the Consolidated Financial Statements) and $8.4 million in customer relationships acquired with the Crystal Rock Acquisition (as defined in Note 5 to the Consolidated Financial Statements). We did not record impairment charges for other intangible assets in 2019 , 2018 or 2017 . Our intangible assets with indefinite lives relate to trademarks acquired in the acquisition of DSS (the “DSS Trademarks”); trademarks acquired in the acquisition of Eden (the “Eden Trademarks”), trademarks acquired in the acquisition of Aquaterra (the “Aquaterra Trademarks”), trademarks acquired in the Mountain Valley Acquisition (the “Mountain Valley Trademarks”) and trademarks acquired in the Crystal Rock Acquisition (the “Crystal Rock Trademarks”). These assets have an aggregate net book value of $287.1 million as of December 28, 2019 . There are no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. The life of the DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks are considered to be indefinite and therefore these intangible assets are not amortized. Rather, they are tested for impairment at least annually or more frequently if we determine a triggering event has occurred during the year. We compare the carrying amount of the intangible asset to its fair value and when the carrying amount is greater than the fair value, we recognize in income an impairment loss. During the fourth quarter of 2019 , management concluded that it was more likely than not that the fair value of the DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were greater than their respective carrying value, indicating no impairment. We assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the DSS Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were less than their respective carrying value. The qualitative factors we assessed included macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant events, the impact of which are all significant judgments and estimates. We concluded that it was more likely than not that the fair value of the DSS Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were more than its carrying value and therefore we were not required to perform any additional testing. To determine the fair value of the Eden Trademarks, we use a relief from royalty method of the income approach, which calculates a fair value royalty rate that is applied to revenue forecasts associated with those trademarks. The resulting cash flows are discounted using a rate to reflect the risk of achieving the projected royalty savings attributable to the trademarks. The assumptions used to estimate the fair value of these trademarks are subjective and require significant management judgment, including estimated future revenues, the fair value royalty rate (which is estimated to be a reasonable market royalty charge that would be charged by a licensor of the trademarks) and the risk adjusted discount rate. Based on our impairment test, the estimated fair value of the Eden Trademarks exceeded the carrying value by approximately 42.0% . If actual revenues in future periods are less than currently projected for the Eden Trademarks, these trademarks could be impaired. Impairment and disposal of long-lived assets When adverse events occur, we compare the carrying amount of long-lived assets to the estimated undiscounted future cash flows at the lowest level of independent cash flows for the group of long-lived assets and recognize any impairment loss based on discounted cash flows in the Consolidated Statements of Operations, taking into consideration the timing of testing and the asset’s remaining useful life. The expected life and value of these long-lived assets is based on an evaluation of the competitive environment, history and future prospects as appropriate. We did not record impairments of long-lived assets in 2019 or 2018 . As part of normal business operations, we identify long-lived assets that are no longer productive and dispose of them. Losses on disposals of assets are presented separately in our Consolidated Statements of Operations as part of operating income. We recognized losses on disposal of property, plant and equipment, net of $7.5 million for the year ended December 28, 2019 ( $9.4 million — December 29, 2018 ; $10.2 million — December 30, 2017 ). Derivative financial instruments We use derivative financial instruments to manage our exposure to movements in foreign currencies and certain commodity prices. All derivative instruments are recorded at fair value in the Consolidated Balance Sheets. We do not use derivative financial instruments for trading or speculative purposes. We manage credit risk related to the derivative financial instruments by requiring high credit standards for our counterparties and periodic settlements. Refer to Note 21 to the Consolidated Financial Statements for further information on our derivative financial instruments. Foreign currency translation The assets and liabilities of non-U.S. active operations, all of which are self-sustaining, are translated to U.S. dollars at the exchange rates in effect at the balance sheet dates. Revenues and expenses are translated using average monthly exchange rates prevailing during the period. The resulting gains or losses are recorded in accumulated other comprehensive loss. Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amount of assets and liabilities and their respective tax bases, using currently enacted income tax rates. A valuation allowance is established to reduce deferred income tax assets if, on the basis of available evidence, it is not more likely than not that all or a portion of any deferred tax assets will be realized. The consideration of available evidence requires significant management judgment including an assessment of the future periods in which the deferred tax assets and liabilities are expected to be realized and projections of future taxable income. The ultimate realization of the deferred tax assets, including net operating losses, is dependent upon the generation of future taxable income during the periods prior to their expiration. If our estimates and assumptions about future taxable income are not appropriate, the value of our deferred tax assets may not be recoverable, which may result in an increase to our valuation allowance that will impact current earnings. We account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, based on the technical merits. The second step requires management to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations, and we include accrued interest and penalties within the other long-term liabilities line in the accompanying Consolidated Balance Sheets. Pension costs We record annual amounts relating to defined benefit pension plans based on calculations, which include various actuarial assumptions such as discount rates and assumed rates of return on plan assets depending on the pension plan. Material changes in pension costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the discount rate, changes in the expected long-term rate of return on plan assets, changes in the level of contributions to the plans and other factors. The funded status is the difference between the fair value of plan assets and the benefit obligation. Future actuarial gains or losses that are not recognized as net periodic benefits cost in the same periods will be recognized as a component of other comprehensive income. Recently adopted accounting pronouncements Update ASU 2016-02 – Leases (Topic 842), amended by Update ASU 2018-11 – Leases—Targeted Improvements (Topic 842) and Update ASU 2019-01 – Leases—Codification Improvements (Topic 842) In February 2016, the FASB issued an update to its guidance on lease accounting for lessees and lessors. This update revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the balance sheet. The distinction between finance and operating leases has not changed, and the update does not significantly change the effect of finance and operating leases on the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows. Additionally, this update requires both qualitative and specific quantitativ |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our leases range from one year to 22 years, some of which may include options to extend the leases generally between one and 10 years , and some of which may include options to terminate the leases within one year. The components of lease expense for the year ended December 28, 2019 were as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Operating lease cost $ 54.7 Short-term lease cost 5.0 Finance lease cost Amortization of right-of-use assets $ 5.0 Interest on lease liabilities 1.3 Total finance lease cost $ 6.3 Sublease income $ 0.8 Supplemental cash flow information related to leases for the year ended December 28, 2019 was as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 54.0 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 4.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases 28.9 Finance leases 30.6 Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) December 28, 2019 Operating leases Operating lease right-of-use assets $ 203.1 Current operating lease obligations 41.7 Operating lease obligations 167.8 Total operating lease obligations $ 209.5 Financing leases Property, plant and equipment, net $ 31.9 Current maturities of long-term debt 6.3 Long-term debt 24.6 Total finance lease obligations $ 30.9 Weighted Average Remaining Lease Term Operating leases 7.8 years Finance leases 5.9 years Weighted Average Discount Rate Operating leases 6.1 % Finance leases 6.0 % Maturities of lease obligations as of December 28, 2019 were as follows: (in millions of U.S. dollars) Operating Leases Finance Leases 2020 $ 53.9 $ 7.5 2021 42.9 6.4 2022 32.9 5.9 2023 27.7 5.6 2024 22.3 4.8 Thereafter 95.9 6.4 Total lease payments 275.6 36.6 Less imputed interest (66.1 ) (5.7 ) Present value of lease obligations $ 209.5 $ 30.9 Leases (Topic 840) Disclosures On December 30, 2018, we adopted the new lease standard using a modified-retrospective approach by recognizing and measuring leases at the adoption date with accumulative effect of initially applying the guidance recognized at the date of initial application and did not restate the prior periods presented in our Consolidated Financial Statements. As such, prior periods presented in our Consolidated Financial Statements continue to be in accordance with the former lease standard, Topic 840 Leases. See Note 1 to the Consolidated Financial Statements for additional information on our recently adopted accounting pronouncement. Operating Leases Under the previous lease standard, we leased buildings, machinery and equipment, computer hardware and furniture and fixtures. All contractual increases and rent-free periods included in the lease contract were taken into account when calculating the minimum lease payment and were recognized on a straight-line basis over the lease term. Certain leases had renewal periods and contingent rentals, which were not included in the table below. As of December 29, 2018, the minimum annual payments under operating leases were as follows: (in millions of U.S. dollars) Operating Leases 2019 $ 51.6 2020 42.9 2021 36.2 2022 29.2 2023 23.4 Thereafter 106.9 Total rent expense under operating leases was $63.2 million and $54.3 million for the year ended December 29, 2018 and December 30, 2017, respectively, which is net of sublease income of $0.9 million for the year ended December 29, 2018 . Capital Leases As of December 29, 2018, we had capital lease assets and accumulated depreciation of $6.7 million and $1.0 million , respectively, which were included in property, plant and equipment, net on the Consolidated Balance Sheet. In addition, as of December 29, 2018, the future minimum payments required under capital leases over their remaining terms are summarized below: (in millions of U.S. dollars) Capital Leases 2019 $ 1.9 2020 1.4 2021 0.7 2022 0.5 2023 0.4 Thereafter 0.1 |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our leases range from one year to 22 years, some of which may include options to extend the leases generally between one and 10 years , and some of which may include options to terminate the leases within one year. The components of lease expense for the year ended December 28, 2019 were as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Operating lease cost $ 54.7 Short-term lease cost 5.0 Finance lease cost Amortization of right-of-use assets $ 5.0 Interest on lease liabilities 1.3 Total finance lease cost $ 6.3 Sublease income $ 0.8 Supplemental cash flow information related to leases for the year ended December 28, 2019 was as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 54.0 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 4.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases 28.9 Finance leases 30.6 Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) December 28, 2019 Operating leases Operating lease right-of-use assets $ 203.1 Current operating lease obligations 41.7 Operating lease obligations 167.8 Total operating lease obligations $ 209.5 Financing leases Property, plant and equipment, net $ 31.9 Current maturities of long-term debt 6.3 Long-term debt 24.6 Total finance lease obligations $ 30.9 Weighted Average Remaining Lease Term Operating leases 7.8 years Finance leases 5.9 years Weighted Average Discount Rate Operating leases 6.1 % Finance leases 6.0 % Maturities of lease obligations as of December 28, 2019 were as follows: (in millions of U.S. dollars) Operating Leases Finance Leases 2020 $ 53.9 $ 7.5 2021 42.9 6.4 2022 32.9 5.9 2023 27.7 5.6 2024 22.3 4.8 Thereafter 95.9 6.4 Total lease payments 275.6 36.6 Less imputed interest (66.1 ) (5.7 ) Present value of lease obligations $ 209.5 $ 30.9 Leases (Topic 840) Disclosures On December 30, 2018, we adopted the new lease standard using a modified-retrospective approach by recognizing and measuring leases at the adoption date with accumulative effect of initially applying the guidance recognized at the date of initial application and did not restate the prior periods presented in our Consolidated Financial Statements. As such, prior periods presented in our Consolidated Financial Statements continue to be in accordance with the former lease standard, Topic 840 Leases. See Note 1 to the Consolidated Financial Statements for additional information on our recently adopted accounting pronouncement. Operating Leases Under the previous lease standard, we leased buildings, machinery and equipment, computer hardware and furniture and fixtures. All contractual increases and rent-free periods included in the lease contract were taken into account when calculating the minimum lease payment and were recognized on a straight-line basis over the lease term. Certain leases had renewal periods and contingent rentals, which were not included in the table below. As of December 29, 2018, the minimum annual payments under operating leases were as follows: (in millions of U.S. dollars) Operating Leases 2019 $ 51.6 2020 42.9 2021 36.2 2022 29.2 2023 23.4 Thereafter 106.9 Total rent expense under operating leases was $63.2 million and $54.3 million for the year ended December 29, 2018 and December 30, 2017, respectively, which is net of sublease income of $0.9 million for the year ended December 29, 2018 . Capital Leases As of December 29, 2018, we had capital lease assets and accumulated depreciation of $6.7 million and $1.0 million , respectively, which were included in property, plant and equipment, net on the Consolidated Balance Sheet. In addition, as of December 29, 2018, the future minimum payments required under capital leases over their remaining terms are summarized below: (in millions of U.S. dollars) Capital Leases 2019 $ 1.9 2020 1.4 2021 0.7 2022 0.5 2023 0.4 Thereafter 0.1 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 30, 2018, the Company completed the sale of the Traditional Business to Refresco. The Traditional Business Disposition was structured as a sale of the assets of the Canadian business and a sale of the stock of the operating subsidiaries engaged in the Traditional Business in the other jurisdictions after the Company completed an internal reorganization. The aggregate deal consideration was $1.25 billion , paid at closing in cash, with customary post-closing adjustments, resolved in December 2018 by the payment of $7.9 million from the Company to Refresco. As of December 28, 2019 and December 29, 2018 , $12.4 million and $12.5 million of the total sale proceeds are being held in escrow by a third-party escrow agent to secure potential indemnification claims. These funds are included in cash and cash equivalents on the Consolidated Balance Sheets. In connection with the Traditional Business Disposition, the Company and Refresco entered into a Transition Services Agreement pursuant to which the Company and Refresco provide certain services to each other for various service periods, with the longest service period being 18 months , including tax and accounting services, certain human resources services, communications systems and support, and insurance/risk management. Each party is compensated for services rendered as set forth in the Transition Services Agreement. Each service period may be extended as set forth in the Transition Services Agreement, up to a maximum extension of 180 days . All service periods under the Transition Services Agreement have expired. In addition, the Company and Refresco entered into certain Co-pack Manufacturing Agreements pursuant to which the Company and Refresco manufacture and supply certain beverage products for each other and a Concentrate Supply Agreement pursuant to which the Company supplies concentrates to Refresco. Each party will be compensated for the products they supply as set forth in the applicable agreement. The Co-pack Manufacturing Agreements have a term of 36 months , and the Concentrate Supply Agreement had the same term as that of the Transition Services Agreement, which has since expired by its terms. For the year ended December 28, 2019 , the Company paid Refresco $0.7 million for the contract manufacture of beverage products and reimbursed Refresco $0.7 million for various operational expenses that were paid by Refresco on its behalf. For the year ended December 28, 2019 , Refresco paid the Company $7.2 million for the contract manufacture of beverage products. 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 Year Ended December 28, 2019 December 29, 2018 December 30, 2017 (in millions of U.S. dollars) Revenue, net $ — $ 111.2 $ 1,637.1 Cost of sales — 98.4 1,428.4 Operating income from discontinued operations — 2.0 49.9 Gain on sale of discontinued operations — 427.9 — Income (loss) from discontinued operations, before income taxes — 402.5 (20.5 ) Income tax (benefit) expense 1 (3.0 ) 47.9 (31.2 ) Net income from discontinued operations, net of income taxes 3.0 354.6 10.7 Less: Net income attributable to non-controlling interests — 0.6 8.5 Net income attributable to Cott Corporation – discontinued operations 2 $ 3.0 $ 354.0 $ 2.2 ______________________ 1 The Traditional Business Disposition resulted in a taxable gain on sale in the U.S., which utilized a significant portion of the existing U.S. net operating loss carryforwards. As a result, the Company is in a net deferred tax liability position in the U.S. and thus a tax benefit of approximately $35.1 million related to a release of the U.S. valuation allowance was recorded in 2018 and is offsetting the overall income tax expense related to discontinued operations. The Traditional Business Disposition resulted in a non-taxable gain on sale in the United Kingdom. No tax benefit resulted from the Traditional Business Disposition related to the taxable loss on sale in Canada due to the Company's valuation allowance position. During 2019, $3.0 million of tax benefit was recorded related to the finalization of the U.S. tax gain calculation. 2 Net income 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 for the year ended December 29, 2018 ( December 30, 2017 - $49.5 million ). Cash flows from discontinued operations included borrowings and payments under the ABL facility of $262.4 million and $482.8 million , respectively, for the year ended December 29, 2018 , and $3,004.1 million and $2,990.7 million , respectively, for the year ended December 30, 2017 . |
Revenue
Revenue | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our principal source of revenue is from bottled water delivery to residential and business customers primarily in North America and Europe, and the manufacture and distribution of coffee, tea and extracts to institutional and commercial customers in the United States for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 . Revenue is recognized, net of sales returns, when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We measure revenue based on the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. A performance obligation is a contractual promise to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when the customer receives the benefit of the performance obligation. Clients typically receive the benefit of our services as they are performed. Substantially all our client contracts require that we be compensated for services performed to date. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue and costs incurred by us for shipping and handling activities that are performed after a customer obtains control of the product are accounted for as fulfillment costs. In addition, we exclude from net revenue and cost of sales taxes assessed by governmental authorities on revenue-producing transactions. Although we occasionally accept returns of products from our customers, historically returns have not been material. Contract Estimates The nature of certain of the Company’s contracts give rise to variable consideration including cash discounts, volume-based rebates, point of sale promotions, and other promotional discounts to certain customers. For all promotional programs and discounts, the Company estimates the rebate or discount that will be granted to the customer and records an accrual upon invoicing. These estimated rebates or discounts are included in the transaction price of the Company’s contracts with customers as a reduction to net revenues and are included as accrued sales incentives in accounts payable and accrued liabilities in the Consolidated Balance Sheets. This methodology is consistent with the manner in which the Company historically estimated and recorded promotional programs and discounts. Accrued sales incentives were $10.0 million and $10.5 million at December 28, 2019 and December 29, 2018 , respectively. We do not disclose the value of unsatisfied performance obligations for contracts (i) with an original expected length of one year or less or (ii) for which the Company recognizes revenue at the amount in which it has the right to invoice as the product is delivered. Contract Balances Contract liabilities relate primarily to advances received from the Company’s customers before revenue is recognized. These amounts are recorded as deferred revenue and are included in accounts payable and accrued liabilities in the Consolidated Balance Sheets. The advances are expected to be earned as revenue within one year of receipt. Deferred revenues at December 28, 2019 and December 29, 2018 were $23.7 million and $22.0 million , respectively. The amount of revenue recognized for the year ended December 28, 2019 that was included in the December 29, 2018 deferred revenue balance was $21.7 million . The Company does not have any material contract assets as of December 28, 2019 . Disaggregated Revenue In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment’s results of operations. Further disaggregation of net revenue to external customers by geographic area based on customer location is as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 United States $ 1,801.7 $ 1,786.9 $ 1,709.0 United Kingdom 172.0 173.2 160.0 Canada 67.4 64.1 61.8 All other countries 353.4 348.7 338.9 Total 1 $ 2,394.5 $ 2,372.9 $ 2,269.7 ______________________ 1 Prior-period amounts are not adjusted under the modified-retrospective method of adoption. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Mountain Valley Acquisition In October 2018, DSS, a wholly-owned subsidiary of Cott, acquired Mountain Valley, a growing American brand of spring and sparkling bottled water delivered to homes and offices throughout the United States (the “Mountain Valley Acquisition”). The initial purchase price paid by DSS in the Mountain Valley Acquisition was $80.4 million on a debt and cash free basis. The post-closing working capital adjustment was resolved in February 2019 by the payment of $0.4 million by the former owners of Mountain Valley to DSS. The Mountain Valley Acquisition was funded through a combination of incremental borrowings under the Company’s ABL facility and cash on hand. The total consideration paid by DSS in the Mountain Valley Acquisition is summarized below: (in millions of U.S. dollars) Cash paid to sellers $ 62.5 Cash paid on behalf of sellers for sellers’ transaction expenses 1.8 Cash paid to retire outstanding debt on behalf of sellers 16.1 Working capital settlement (0.4 ) Total consideration $ 80.0 The Mountain Valley Acquisition supported the Company’s strategy to expand the Company’s existing home and office bottled water category into premium spring, sparkling and flavored water. The Company has accounted for this transaction as a business combination which requires that assets acquired and liabilities assumed be measured at their acquisition date fair values. The adjusted purchase price of $80.0 million has been allocated to the assets acquired and liabilities assumed based on management’s estimates of their fair values as of the acquisition date. The excess of the adjusted purchase price over the aggregate fair values was recorded as goodwill. Measurement period adjustments recorded during the year ended December 28, 2019 included adjustments to property, plant and equipment and intangible assets based on final valuations of such assets, as well as the assumed customer bottle deposit liability based on a review by management. These measurement period adjustments did not have a material effect on our results of operations in prior periods. The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the final purchase price allocation of the assets acquired and liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 8.2 $ — $ 8.2 Accounts receivable 4.2 — 4.2 Inventory 2.3 — 2.3 Prepaid expenses and other assets 0.2 — 0.2 Property, plant and equipment 38.5 3.0 41.5 Goodwill 20.5 (4.5 ) 16.0 Intangible assets 25.8 2.6 28.4 Accounts payable and accrued liabilities (19.3 ) (1.5 ) (20.8 ) Total $ 80.4 (0.4 ) 80.0 The amount of revenues and net income related to the Mountain Valley Acquisition included in the Company’s Consolidated Statement of Operations for the period from the acquisition date through December 29, 2018 were $10.1 million and $1.2 million , respectively. During the year ended December 29, 2018, the Company incurred $1.0 million of acquisition-related costs associated with the Mountain Valley Acquisition, which are included in acquisition and integration expenses in the Consolidated Statement of Operations for the year ended December 29, 2018. Crystal Rock Acquisition In March 2018, the Company completed the acquisition of Crystal Rock Holdings, Inc., a direct-to-consumer home and office water, coffee and filtration business serving customers throughout New York and New England (“Crystal Rock”). The transaction was structured as a merger following a cash tender offer for all outstanding shares of Crystal Rock, with Crystal Rock becoming a wholly-owned indirect subsidiary of the Company (the “Crystal Rock Acquisition”). The aggregate consideration paid was $37.7 million and includes the purchase price paid to the Crystal Rock shareholders of $20.7 million , $0.8 million in costs paid on behalf of the sellers for the seller’s transaction costs and $16.2 million of assumed debt and accrued interest obligations of Crystal Rock that was paid by the Company. The total consideration paid by the Company in the Crystal Rock Acquisition is summarized below: (in millions of U.S. dollars) Cash paid to sellers $ 20.7 Cash paid on behalf of sellers for sellers’ transaction expenses 0.8 Total consideration $ 21.5 The Crystal Rock Acquisition strengthens the Company’s presence in New York and New England. The Company has accounted for this transaction as a business combination which requires that assets acquired and liabilities assumed be measured at their acquisition date fair values. The purchase price of $21.5 million , net of debt, has been allocated to the assets acquired and liabilities assumed based on management’s estimates of their fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. The measurement period adjustment recorded during the year ended December 28, 2019 was an adjustment to deferred taxes based on analysis of certain tax positions. This measurement period adjustment did not have a material effect on our results of operations in prior periods. The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustment recorded and the final purchase price allocation of the assets acquired and liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.6 $ — $ 1.6 Accounts receivable 6.4 — 6.4 Inventory 2.2 — 2.2 Prepaid expenses and other current assets 2.2 — 2.2 Property, plant and equipment 8.9 — 8.9 Goodwill 13.7 0.5 14.2 Intangible assets 12.6 — 12.6 Other assets 0.1 — 0.1 Short-term borrowings (4.1 ) — (4.1 ) Current maturities of long-term debt (1.6 ) — (1.6 ) Accounts payable and accrued liabilities (6.7 ) — (6.7 ) Long-term debt (10.4 ) — (10.4 ) Deferred tax liabilities (2.5 ) (0.5 ) (3.0 ) Other long-term liabilities (0.9 ) — (0.9 ) Total $ 21.5 $ — $ 21.5 The amount of revenues related to the Crystal Rock Acquisition included in the Company’s Consolidated Statement of Operations for the period from the acquisition date through December 29, 2018 was $42.3 million . During the year ended December 29, 2018, the Company incurred $3.6 million of acquisition-related costs associated with the Crystal Rock Acquisition, which are included in acquisition and integration expenses in the Consolidated Statement of Operations for the year ended December 29, 2018. During the second quarter of 2018, Crystal Rock was integrated within our DSS business, therefore it is impracticable to determine the amount of net income related to the Crystal Rock Acquisition included in the Company’s Statement of Operations for the period from the acquisition date through December 29, 2018. Intangible Assets In our determination of the estimated fair value of intangible assets, we consider, among other factors, the best use of acquired assets, analysis of historical financial performance and estimates of future performance of the acquired business’ products. The estimated fair values of identified intangible assets are calculated considering both market participant assumptions, using an income approach as well as estimates and assumptions provided by Cott management and management of the acquired business. Assumptions include, but are not limited to, expected revenue growth, weighted-average terminal growth rate, risk adjusted discount rate and fair value royalty rate. The estimated fair value of customer relationships represent future after-tax discounted cash flows that will be derived from sales to existing customers of the acquired business as of the date of acquisition. The estimated fair value of trademarks and trade names represent the future projected cost savings associated with the premium and brand image obtained as a result of owning the trademark or trade name as opposed to obtaining the benefit of the trademark or trade name through a royalty or rental fee. Mountain Valley Acquisition The following table sets forth the components of identified intangible assets associated with the Mountain Valley Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Weighted Average Estimated Useful Life Customer relationships $ 10.0 20 years Trademarks and trade names 18.4 Indefinite Total $ 28.4 Crystal Rock Acquisition The following table sets forth the components of identified intangible assets associated with the Crystal Rock Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Weighted Average Estimated Useful Life Customer relationships $ 8.4 11 years Trademarks and trade names 4.2 Indefinite Total $ 12.6 Goodwill Mountain Valley Acquisition The principal factor that resulted in recognition of goodwill in the Mountain Valley Acquisition was that the purchase price was based in part on cash flow projections assuming the reduction of administration costs and the integration of acquired customers and products into our operations, which is of greater value than on a standalone basis. The goodwill recognized as part of the Mountain Valley Acquisition was allocated to the Route Based Services reporting segment and is expected to be tax deductible. Crystal Rock Acquisition The principal factor that resulted in recognition of goodwill in the Crystal Rock Acquisition was that the purchase price was based in part on cash flow projections assuming the reduction of administration costs and the integration of acquired customers and products into our operations, which is of greater value than on a standalone basis. The goodwill recognized as part of the Crystal Rock Acquisition was allocated to the Route Based Services reporting segment, none of which is expected to be tax deductible. |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | Other Expense (Income), Net The following table summarizes other expense (income), net for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Foreign exchange losses (gains), net $ 0.9 $ (7.1 ) $ (1.7 ) Proceeds from legal settlements — (14.9 ) — Loss (gain) on sale of business 6.0 (6.0 ) — Transition services agreement service income (0.3 ) (2.6 ) — Pension curtailment gain — — (4.5 ) Gain on extinguishment of long-term debt — (7.1 ) (1.5 ) Other gains, net (3.8 ) (5.2 ) (0.3 ) Total $ 2.8 $ (42.9 ) $ (8.0 ) |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 28, 2019 | |
Banking and Thrift, Interest [Abstract] | |
Interest Expense, Net | Interest Expense, Net The following table summarizes interest expense, net for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Interest on long-term debt $ 69.5 $ 72.2 $ 83.1 Interest on short-term debt 4.8 — — Other interest expense, net 3.9 5.4 2.4 Total $ 78.2 $ 77.6 $ 85.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision (Benefit) for Income Taxes Income (loss) from continuing operations, before income taxes consisted of the following: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Canada $ (57.0 ) $ (26.1 ) $ (29.1 ) Outside Canada 66.4 50.2 (4.5 ) Income (loss) from continuing operations, before income taxes $ 9.4 $ 24.1 $ (33.6 ) Income tax expense (benefit) consisted of the following: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Current Canada $ (0.2 ) — $ — Outside Canada 12.6 2.3 3.9 $ 12.4 $ 2.3 $ 3.9 Deferred Canada $ (1.0 ) $ (5.6 ) $ — Outside Canada (1.9 ) (1.5 ) (33.9 ) $ (2.9 ) $ (7.1 ) $ (33.9 ) Income tax expense (benefit) $ 9.5 $ (4.8 ) $ (30.0 ) The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Income tax expense (benefit) based on Canadian statutory rates $ 2.5 $ 6.4 $ (8.7 ) Foreign tax rate differential (11.1 ) (2.6 ) (1.3 ) Local taxes 2.1 0.5 (0.2 ) Nontaxable interest income (8.4 ) (9.8 ) (11.3 ) Impact of intercompany transactions and dividends 12.2 1.0 (9.2 ) Nontaxable capital gains — — (3.7 ) Income tax credits (0.5 ) — — Change in enacted tax rates (0.1 ) 3.4 (32.7 ) Change in valuation allowance 19.7 (4.2 ) 45.8 Change in uncertain tax positions 0.3 (3.4 ) (2.4 ) Equity compensation 1.5 1.5 1.1 Permanent differences 1.6 1.1 (0.6 ) Outside basis differences on discontinued operations — — (3.8 ) Adjustments to deferred taxes (10.4 ) 0.7 (3.4 ) Other items 0.1 0.6 0.4 Income tax expense (benefit) $ 9.5 $ (4.8 ) $ (30.0 ) Deferred Tax Assets and Liabilities Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Deferred tax assets Net operating loss carryforwards $ 134.2 $ 109.8 Capital loss carryforwards 12.0 13.1 Liabilities and reserves 28.2 25.0 Stock options 8.2 8.1 Inventories 4.0 3.8 Interest expense 11.3 12.2 Derivatives 1 — 2.8 Right of use lease obligations 49.1 — Other 1 — 3.9 247.0 178.7 Deferred tax liabilities Property, plant and equipment (76.3 ) (65.7 ) Intangible assets (125.1 ) (139.2 ) Right of use assets (47.6 ) — Derivatives (3.9 ) — Other (1.2 ) — (254.1 ) (204.9 ) Valuation allowance (120.3 ) (98.0 ) Net deferred tax liability $ (127.4 ) $ (124.2 ) ______________________ 1 Derivatives prior year amounts have been reclassified from other to conform to the current year presentation. As of December 28, 2019 , we have outside tax basis differences, including undistributed earnings, in our foreign subsidiaries. For 2019, deferred taxes have not been recorded on the undistributed earnings because the foreign subsidiaries have the ability to repatriate funds to its parent company tax-efficiently or the undistributed earnings are indefinitely reinvested under the accounting guidance. In order to arrive at this conclusion, we considered factors including, but not limited to, past experience, domestic cash requirements, cash requirements to satisfy the ongoing operations, capital expenditures and other financial obligations of our subsidiaries. It is not practicable to determine the excess book basis over outside tax basis in the shares or the amount of incremental taxes that might arise if these earnings were to be remitted. The amount of tax payable could be significantly impacted by the jurisdiction in which a distribution was made, the amount of the distribution, foreign withholding taxes under applicable tax laws when distributed, relevant tax treaties and foreign tax credits. We repatriated earnings of $75.1 million and $83.1 million to Canada in 2019 and 2018 , respectively, incurring no tax expense. As of December 28, 2019 , we have operating loss carryforwards totaling $516.0 million , capital loss carryforwards totaling $44.8 million , and tax credit carryforwards totaling $1.7 million . The operating loss carryforward amount was attributable to Canadian operating loss carryforwards of $213.4 million that will expire from 2027 to 2039; U.S. federal and state operating loss carryforwards of $120.6 million and $11.1 million , respectively, that will expire from 2020 to 2039 ; Dutch operating loss carryforwards of $115.9 million that will expire from 2020 to 2025 ; and various other operating loss carryforwards of $55.0 million that will expire from 2020 to 2039 . The capital loss carryforward is attributable to Canadian capital losses of $39.2 million and Israeli capital losses of $5.6 million , all with indefinite lives. The tax credit carryforward of $1.7 million will expire from 2020 to 2022 . In general, under Section 382 and 383 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), a U.S. corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change net operating losses (“NOLs”) or tax credits to offset future taxable income. Therefore, current or future changes in our Canadian stock ownership, many of which are outside of our control, could result in a U.S. ownership change under Section 382 and 383 of the Code. If we undergo a U.S. ownership change, our ability to utilize U.S. federal or state NOLs or tax credits could be limited. We monitor changes in our ownership on an ongoing basis and do not believe we had a change of control limitation as of December 28, 2019 . We establish a valuation allowance to reduce deferred tax assets if, based on the weight of the available evidence, both positive and negative, for each respective tax jurisdiction, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Due to recent cumulative losses, it was determined that it is more likely than not we will not realize the benefit of net operating loss carryforwards and other net deferred assets in Canada, and certain jurisdictions within the Eden business. The balance of the valuation allowance was $120.3 million and $98.0 million for the years ended December 28, 2019 and December 29, 2018 , respectively. The valuation allowance increase in 2019 was primarily related to losses generated in tax jurisdictions with existing valuation allowances. Additionally, we have determined that it is more likely than not that the benefit from our capital losses in Canada and Israel will not be realized in the future due to the uncertainty regarding potential future capital gains in the jurisdiction. In recognition of this risk, we have provided a valuation allowance of $12.0 million on our capital losses. The Tax Act enacted new Section 163(j) interest expense limitation rules on December 22, 2017. On November 26, 2018, the U.S. Department of the Treasury released proposed regulations to provide interpretative guidance for the new Section 163(j) rules, with early adoption permitted. We have not adopted the proposed regulations. If the proposed regulations are finalized as currently written, they could have a material impact to our consolidated financial statements in the year in which they are finalized. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefits at beginning of year $ 15.5 $ 16.2 $ 28.6 Additions based on tax positions taken during a prior period 5.0 1.3 0.2 Reductions based on tax positions taken during a prior period (1.9 ) (0.1 ) (6.3 ) Settlement on tax positions taken during a prior period — — (1.0 ) Tax rate change — (0.1 ) (4.5 ) Lapse in statute of limitations (2.9 ) (4.3 ) (3.2 ) Additions based on tax positions taken during the current period 1.7 3.0 1.7 Cash payments (0.2 ) — — Foreign exchange 0.1 (0.5 ) 0.7 Unrecognized tax benefits at end of year $ 17.3 $ 15.5 $ 16.2 As of December 28, 2019 , we had $17.3 million of unrecognized tax benefits, a net increase of $1.8 million from $15.5 million as of December 29, 2018 . If we recognized our tax positions, approximately $11.4 million would favorably impact the effective tax rate. We believe it is reasonably possible that our unrecognized tax benefits will decrease or be recognized in the next twelve months by up to $1.7 million due to the settlement of certain tax positions and lapses in statutes of limitation in various tax jurisdictions. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. We recovered nil of interest and penalties during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 . The amount of interest and penalties recognized in the Consolidated Balance Sheets for 2019 and 2018 were a liability of $1.0 million and $0.6 million , respectively. Years through 2009 have been audited by the U.S. Internal Revenue Service, though the statutes are still open back to 2008 due to certain net operating loss carryforwards. Years prior to 2014 are closed to audit by U.S. state jurisdictions. We are currently under audit in Canada by the Canada Revenue Agency (“CRA”) for tax year 2014. Years prior to 2014 are closed to audit by the CRA. We are currently under audit in Israel for the 2013 to 2017 tax years, the United Kingdom for the 2016 and 2017 tax years, and Poland for the 2014 tax year. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our shareowners approved our Amended and Restated Cott Corporation Equity Incentive Plan (the “Amended and Restated Equity Plan”) in its current form in May 2016, and approved the Cott Corporation 2018 Equity Incentive Plan (“2018 Equity Plan” and together with the Amended and Restated Equity Plan, the “Equity Plans”) in May 2018. Awards under the Equity Plans may be in the form of incentive stock options, non-qualified stock options, restricted shares, restricted share units, performance shares, performance units, stock appreciation rights, and stock payments to employees, directors and outside consultants. The Equity Plans are administered by the Human Resources and Compensation Committee (“HRCC”) of the Board of Directors or any other board committee as may be designated by the Board of Directors from time to time. Under the Amended and Restated Equity Plan, 20,000,000 shares are reserved for future issuance, and under the 2018 Equity Plan, 8,000,000 shares are reserved for future issuance, subject to adjustment upon a share split, share dividend, recapitalization, and other similar transactions and events. Shares that are issued under the Equity Plans are applied to reduce the maximum number of shares remaining available for issuance under the Equity Plans; provided that the total number of shares available for issuance under the Equity Plans are reduced two shares for each share issued pursuant to a “full-value” award (i.e., an award other than an option or stock appreciation right). Shares to be issued pursuant to Time-based RSUs, Performance-based RSUs, or stock options that are forfeited, expired, or are canceled or settled without the issuance of shares return to the pool of shares available for issuance under the Equity Plans. As of December 28, 2019 , there were 670,280 shares available for future issuance under the Amended and Restated Equity Plan, and 8,000,000 shares available for future issuance under the 2018 Equity Plan. The table below summarizes the share-based compensation expense for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 . Share-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Operations. As referenced below: (i) “Performance-based RSUs” represent restricted share units with performance-based vesting, (ii) “Time-based RSUs” represent restricted share units with time-based vesting, (iii) “Stock options” represent non-qualified stock options, (iv) “Director share awards” represent common shares issued in consideration of the annual board retainer fee to non-management members of our Board of Directors, and (v) the “ESPP” represents the Cott Corporation Employee Share Purchase Plan, under which common shares are issued to eligible employees at a discount through payroll deductions. For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Stock options $ 3.3 $ 5.3 $ 5.5 Performance-based RSUs 5.7 7.0 12.0 Time-based RSUs 2.1 3.8 4.2 Director share awards 1.1 1.0 1.1 Employee Share Purchase Plan 0.2 0.3 0.1 Total 1 $ 12.4 $ 17.4 $ 22.9 ______________________ 1 Includes $0.1 million and $5.4 million of share-based compensation expense from our discontinued operations, which were included in net income (loss) from discontinued operations, net of income taxes on the Consolidated Statements of Operations for the years ended December 29, 2018 and December 30, 2017 , respectively. On August 1, 2018, in connection with the appointment of the Company’s chief executive officer to executive chairman of the Board effective December 30, 2018, the Board approved the modification of certain outstanding awards issued to the chief executive officer. The modified awards will continue to vest in accordance with their normal applicable vesting schedules regardless of continued service. The total incremental compensation expense associated with the modification was $5.5 million for the year ended December 29, 2018 . During the third quarter of 2017, in connection with the sale of the Traditional Business and upon a determination by the HRCC, outstanding awards granted to Traditional Business employees vested as follows: outstanding time-based RSUs vested in full, outstanding unvested stock options vested in full (and remain exercisable for three years from the date of closing of the Traditional Business Disposition), and outstanding performance-based RSUs vested in full, assuming achievement of the applicable pre-tax income level at the “target” level. As a result, an additional $1.2 million of expense was recorded for the year ended December 30, 2017 and included in net income (loss) from discontinued operations, net of income taxes on the Consolidated Statement of Operations. The tax benefit recognized related to share-based compensation expense for the fiscal year ended December 28, 2019 was $0.6 million ( December 29, 2018 - $0.9 million ; December 30, 2017 - $0.5 million ). As of December 28, 2019 , the unrecognized share-based compensation expense and weighted average years over which we expect to recognize it as compensation expense were as follows: (in millions of U.S. dollars, except years) Unrecognized share-based compensation expense as of December 28, 2019 Weighted average years expected to recognize compensation Stock options $ 5.3 2.1 Performance-based RSUs 6.9 2.4 Time-based RSUs 3.9 2.1 Total $ 16.1 Stock Options During 2019 , 2018 and 2017 approximately 1,138,000 , 1,182,400 , and 734,500 options were granted to certain employees under the Amended and Restated Equity Plan at a weighted-average exercise price of $13.68 , $14.67 , and $17.50 per share, respectively. The weighted-average grant date fair value of the options was estimated to be $3.42 , $3.87 , and $4.82 per share in 2019 , 2018 and 2017 , respectively, using the Black-Scholes option pricing model. The contractual term of an option granted is fixed by the Amended and Restated Equity Plan and cannot exceed ten years from the grant date. The grant date fair value of each option granted during 2019 , 2018 and 2017 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Risk-free interest rate 1.8 % 2.8 % 2.3 % Average expected life (years) 6.0 5.6 6.0 Expected volatility 29.0 % 28.8 % 29.2 % Expected dividend yield 1.8 % 1.6 % 1.4 % The following table summarizes the activity for Company stock options: Stock Options (in thousands) Weighted average exercise price Weighted average contractual term (years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2016 4,474 $ 10.32 8.8 $ 5,623.3 Granted 734 17.50 Exercised (169 ) 9.21 1,092.9 Forfeited or expired (33 ) 10.28 Outstanding at December 30, 2017 5,006 $ 11.41 8.1 $ 26,952.3 Granted 1,182 14.67 Exercised (734 ) 10.04 4,408.1 Forfeited or expired (8 ) 10.64 Outstanding at December 29, 2018 5,446 $ 12.30 7.3 $ 11,993.0 Granted 1,138 13.68 Exercised (91 ) 10.47 389.1 Forfeited or expired — — Outstanding at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 Exercisable at December 28, 2019 4,336 $ 11.64 5.8 $ 11,018.6 Vested or expected to vest at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 The aggregate intrinsic value amounts in the table above represent the difference between the closing price of our common shares on the New York Stock Exchange on December 27, 2019 , which was $13.45 (December 28, 2018— $13.66 ; December 29, 2017— $16.66 ), and the exercise price, multiplied by the number of in-the-money stock options as of the same date. Stock options granted during the year ended December 28, 2019 vest in three equal annual installments on the first, second and third anniversaries of the date of grant. The total amount of cash received from the exercise of stock options was not material during the fiscal year ended December 28, 2019 . The total amount of cash received from the exercise of stock options was $5.0 million during the fiscal year ended December 29, 2018 with an associated tax benefit of $0.2 million realized. The total amount of cash received from the exercise of stock options was $1.6 million during the fiscal year ended December 30, 2017 with no associated tax benefit realized. The total fair value of options that vested during the year ended December 28, 2019 was $19.0 million ( December 29, 2018 — $16.8 million ; December 30, 2017 — $16.4 million ). Other Awards In 2019 , we granted 74,238 common shares to the non-management members of our Board of Directors under the Amended and Restated Equity Plan with a grant date fair value of approximately $1.1 million . The common shares were issued in consideration of the directors’ annual board retainer fee and were vested upon issuance. Additionally, in 2019 , we granted 284,591 Performance-based RSUs, which vest on the last day of our 2022 fiscal year. The number of shares ultimately awarded will be based upon the performance percentage, which can range from 0% to 200% of the awards granted. The Performance-based RSUs vest primarily on the Company’s achievement of a specified level of cumulative pre-tax income for the applicable performance period. The number of Performance-based RSUs that may vest and the related unrecognized compensation cost is subject to change based on the level of targeted pre-tax income that is achieved during the vesting period. The Company also granted 216,057 Time-based RSUs, which vest over three years in equal annual installments on the first, second and third anniversaries of the date of grant and include a service condition. Number of Performance-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Number of Time-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Balance at December 31, 2016 3,063 $ 9.89 800 $ 11.10 Awarded 235 17.06 135 17.50 Awarded in connection with modification 64 11.32 — — Issued (320 ) 8.00 (409 ) 10.55 Forfeited (143 ) 15.18 (24 ) 12.28 Balance at December 30, 2017 2,899 $ 9.15 502 $ 13.14 Awarded 312 14.67 208 14.67 Awarded in connection with modification 246 9.21 — — Issued (686 ) 9.32 (269 ) 13.07 Forfeited (1,106 ) 6.55 (14 ) 13.24 Outstanding at December 29, 2018 1,665 $ 13.90 427 $ 14.23 Awarded 285 13.69 216 13.69 Awarded in connection with modification 190 11.22 — — Issued (441 ) 11.30 (239 ) 13.38 Forfeited (100 ) 12.33 (7 ) 14.89 Outstanding at December 28, 2019 1,599 $ 14.36 397 $ 14.43 Vested or expected to vest at December 28, 2019 1,594 $ 13.30 397 $ 14.43 The total fair value of Performance-based RSUs vested and issued during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 were $5.0 million , $6.4 million and $2.6 million . The total fair value of Time-based RSUs vested and issued during the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 were $3.2 million , $3.5 million , and $4.3 million . Employee Share Purchase Plan The Company has maintained the Cott Corporation Employee Share Purchase Plan (the “ESPP”) since 2015. The ESPP qualifies as an “employee share purchase plan” under Section 423 of the Internal Revenue Code of 1986 (“IRC”), as amended. Substantially all employees are eligible to participate in the ESPP and may elect to participate at the beginning of any quarterly offering period. The ESPP authorizes the issuance, and the purchase by eligible employees, of up to 3,000,000 shares of Cott common shares through payroll deductions. Eligible employees who choose to participate may purchase Cott common shares at 90% of market value on the first or last day of the quarterly offering period, whichever is lower. The minimum contribution which an eligible employee may make under the ESPP is 1% of the employee’s eligible compensation, with the maximum contribution limited to 15% of the employee’s eligible compensation. At the end of each quarterly offering period for which the employee participates, the total amount of each employee’s payroll deduction for that offering period will be used to purchase Cott common shares. The Company recognized $0.2 million , $0.3 million and $0.1 million of share-based compensation expense in SG&A expenses in the Consolidated Statement of Operations for 2019 , 2018 and 2017 , respectively. At December 28, 2019 , 2,581,340 shares remained available for issuance under the ESPP. |
Common Shares and Net Income (L
Common Shares and Net Income (Loss) per Common Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Common Shares and Net Income (Loss) per Common Share | Common Shares and Net Income (Loss) per Common Share Common Shares On May 1, 2018, our Board of Directors approved a share repurchase program for up to $50.0 million of Cott’s outstanding common shares over a 12 -month period commencing on May 7, 2018 (the “Initial Repurchase Plan”). Since that date, for the year ended December 29, 2018 , we repurchased 2,973,282 common shares for approximately $46.0 million through open market transactions under the Initial Repurchase Plan. Shares purchased under the Initial Repurchase Plan were subsequently canceled. On December 11, 2018, our Board of Directors approved a share repurchase program for up to $50.0 million of Cott’s outstanding common shares over a 12 -month period commencing on December 14, 2018 (the “Second Repurchase Plan”). Since that date, for the years ended December 28, 2019 and December 29, 2018 , we repurchased 2,006,789 and 1,590,088 common shares for approximately $27.8 million and $22.2 million , respectively, through open market transactions under the Second Repurchase Plan. Shares purchased under the Second Repurchase Plan were subsequently canceled. During the second quarter of 2019, we utilized all funds under the Second Repurchase Plan. On December 11, 2019, our Board of Directors approved a new share repurchase program for up to $50.0 million of Cott’s outstanding common shares over a 12 -month period (the “New Repurchase Plan”). We made no repurchases of our common shares under the New Repurchase Plan during 2019. Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) attributable to Cott Corporation by the weighted average number of common shares outstanding during the periods presented. Diluted net income (loss) per common share is calculated by dividing diluted net income (loss) attributable to Cott Corporation by the weighted average number of common shares outstanding adjusted to include the effect, if dilutive, of the exercise of in-the-money stock options, Performance-based RSUs, and Time-based RSUs during the periods presented. Set forth below is a reconciliation of the numerator and denominator for the diluted net income (loss) per common share computations for the periods indicated: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Numerator (in millions): Net income (loss) attributable to Cott Corporation Continuing operations $ (0.1 ) $ 28.9 $ (3.6 ) Discontinued operations 3.0 354.0 2.2 Net income (loss) 2.9 382.9 (1.4 ) Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 135,224 139,097 139,078 Basic Earnings Per Share: Continuing operations — 0.21 (0.03 ) Discontinued operations 0.02 2.54 0.02 Net income (loss) 0.02 2.75 (0.01 ) Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 135,224 139,097 139,078 Dilutive effect of Stock Options — 1,199 — Dilutive effect of Performance based RSUs — 900 — Dilutive effect of Time-based RSUs — 240 — Weighted average common shares outstanding - diluted 135,224 141,436 139,078 Diluted Earnings Per Share: Continued operations — 0.21 (0.03 ) Discontinued operations 0.02 2.50 0.02 Net income (loss) 0.02 2.71 (0.01 ) The following table summarizes anti-dilutive securities excluded from the computation of diluted net income (loss) per common share for the periods indicated: For the Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Stock options 6,493 2,095 5,006 Performance-based RSUs 1 1,594 564 2,235 Time-based RSUs 2 397 148 493 ______________________ 1 Performance-based RSUs represent the number of shares expected to be issued based on the estimated achievement of pre-tax income for these awards. 2 Time-based RSUs represent the number of shares expected to be issued based on known employee retention information. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our broad portfolio of products includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, beverage concentrates, premium spring, sparkling and flavored water, and mineral water. We operate through three reporting segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other. 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. During the first quarter of 2019, we reviewed and realigned our reporting segments to reflect how the business will be managed and the results will be reviewed by the Chief Executive Officer, who is the Company’s chief operating decision maker. Following such review, we realigned our three reporting segments as follows: Route Based Services (which includes our DSS, Aquaterra, Mountain Valley, Eden and Aimia businesses); Coffee, Tea and Extract Solutions (which includes our S&D business); and All Other (which includes miscellaneous expenses and our Cott Beverages LLC business, which was sold in the first quarter of 2019). Our segment reporting results have been recast to reflect these changes for all periods presented. December 28, 2019 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,788.2 $ 605.0 $ 7.2 $ (5.9 ) $ 2,394.5 Depreciation and amortization 168.3 24.2 0.3 — 192.8 Operating income (loss) 115.8 15.4 (40.8 ) — 90.4 Property, plant and equipment, net 557.0 89.7 1.1 — 647.8 Goodwill 1,047.5 128.2 — — 1,175.7 Intangible assets, net 596.0 104.4 1.0 — 701.4 Total segment assets 2 2,816.1 526.5 48.3 — 3,390.9 Additions to property, plant and equipment 100.9 13.3 0.4 — 114.6 ______________________ 1 Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.9 million for the year ended December 28, 2019 . 2 Excludes intersegment receivables, investments and notes receivable. December 29, 2018 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,710.3 $ 587.6 $ 80.7 $ (5.7 ) $ 2,372.9 Depreciation and amortization 170.7 22.9 1.0 — 194.6 Operating income (loss) 89.9 16.1 (47.2 ) — 58.8 Property, plant and equipment, net 530.7 88.3 5.7 — 624.7 Goodwill 1,021.6 117.8 4.5 — 1,143.9 Intangible assets, net 608.3 103.2 27.7 — 739.2 Total segment assets 2 2,578.3 464.8 132.4 — 3,175.5 Additions to property, plant and equipment 112.3 16.0 2.5 — 130.8 ______________________ 1 Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.7 million for the year ended December 29, 2018 . All Other includes $4.2 million of related party concentrate sales to discontinued operations for the year ended December 29, 2018 . 2 Excludes intersegment receivables, investments and notes receivable. December 30, 2017 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,599.6 $ 602.2 $ 67.9 $ — 2,269.7 Depreciation and amortization 164.9 22.7 1.0 — 188.6 Operating income (loss) 2 79.7 15.9 (51.7 ) — 43.9 Additions to property, plant and equipment 100.8 19.0 1.5 — 121.3 ______________________ 1 All Other includes $41.1 million of related party concentrate sales to discontinued operations for the year ended December 30, 2017 . 2 Operating income in our Route Based Services reporting segment for the year ended December 30, 2017 decreased $5.0 million as a result of the adoption of Accounting Standards Update 2017-07 Compensation — Retirement Benefits (“ASU 2017-07”). 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. We have limited customer concentration; no customer accounts for more than 10% of our net revenues. Revenues are attributed to countries based on the location of the customer. Revenues generated from sales to external customers by geographic area were as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 United States $ 1,801.7 $ 1,786.9 $ 1,709.0 United Kingdom 172.0 173.2 160.0 Canada 67.4 64.1 61.8 All other countries 353.4 348.7 338.9 Total $ 2,394.5 $ 2,372.9 $ 2,269.7 Revenues by channel by reporting segment were as follows: For the Year Ended December 28, 2019 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery $ 1,136.0 $ — $ — $ — $ 1,136.0 Coffee and tea services 184.0 483.6 — (5.9 ) 661.7 Retail 297.6 — — — 297.6 Other 170.6 121.4 7.2 — 299.2 Total $ 1,788.2 $ 605.0 $ 7.2 $ (5.9 ) $ 2,394.5 For the Year Ended December 29, 2018 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery 1 $ 1,078.5 $ — $ — $ — $ 1,078.5 Coffee and tea services 192.8 461.9 — (5.7 ) 649.0 Retail 1 286.0 — — — 286.0 Other 1 153.0 125.7 80.7 — 359.4 Total $ 1,710.3 $ 587.6 $ 80.7 $ (5.7 ) $ 2,372.9 ______________________ 1 Revenue by channel of our Route Based Services reporting segment for the year ended December 29, 2018 had $83.7 million of revenues reclassified from “other” and “retail” to “home and office bottled water delivery” as these activities are associated with the “home and office bottled water delivery” channel. In addition, we reclassified $18.0 million out of the “retail" channel and into the “other” channel in order to better align the activities of a recent acquisition with those of our U.S. Route Based Services business. For the Year Ended December 30, 2017 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery 1 $ 990.6 $ — $ — $ — $ 990.6 Coffee and tea services 186.8 501.7 — — 688.5 Retail 1 282.2 — — — 282.2 Other 1 140.0 100.5 67.9 — 308.4 Total $ 1,599.6 $ 602.2 $ 67.9 $ — $ 2,269.7 ______________________ 1 Revenue by channel of our Route Based Services reporting segment for the year ended December 30, 2017 had $50.2 million of revenues reclassified from “other” to “home and office bottled water delivery” as these activities are associated with the “home and office bottled water delivery” channel. Property, plant and equipment, net by geographic area as of December 28, 2019 and December 29, 2018 were as follows: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 United States $ 505.4 $ 491.1 United Kingdom 20.9 17.8 Canada 18.6 19.8 All other countries 1 102.9 96.0 Total $ 647.8 $ 624.7 ______________________ 1 No individual country is greater than 10% of total property, plant and equipment, net as of December 28, 2019 and December 29, 2018 . |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The following table summarizes accounts receivable, net as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Trade receivables $ 268.5 $ 293.0 Allowance for doubtful accounts (9.1 ) (9.6 ) Other 19.9 24.9 Total $ 279.3 $ 308.3 |
Inventories
Inventories | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes inventories as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Raw materials $ 59.5 $ 68.5 Finished goods 36.7 36.3 Resale items 22.8 21.5 Other 3.5 3.3 Total $ 122.5 $ 129.6 |
Property, Plant & Equipment, Ne
Property, Plant & Equipment, Net | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment, Net | Property, Plant and Equipment, Net The following table summarizes property, plant and equipment, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Estimated Useful Life in Years Cost Accumulated Depreciation Net Cost Accumulated Depreciation Net Land n/a $ 99.3 $ — $ 99.3 $ 98.5 $ — $ 98.5 Buildings 10-40 115.7 31.3 84.4 111.9 22.9 89.0 Machinery and equipment 5-15 206.6 85.6 121.0 183.3 67.0 116.3 Plates, films and molds 1-10 1.5 0.6 0.9 1.4 0.4 1.0 Vehicles and transportation equipment 3-15 91.6 60.4 31.2 88.1 50.2 37.9 Leasehold improvements 1 20.0 10.7 9.3 16.7 6.9 9.8 IT Systems 3-7 19.2 11.3 7.9 16.2 8.6 7.6 Furniture and fixtures 3-10 13.6 9.5 4.1 9.3 3.2 6.1 Customer equipment 2 3-7 377.5 164.5 213.0 330.4 118.2 212.2 Returnable bottles 3 3-5 81.9 37.1 44.8 59.7 19.1 40.6 Finance leases 4 39.9 8.0 31.9 6.7 1.0 5.7 Total $ 1,066.8 $ 419.0 $ 647.8 $ 922.2 $ 297.5 $ 624.7 ______________________ 1 Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life. 2 Customer equipment for the Route Based Services reporting segment consists of coolers, brewers, refrigerators, water purification devices and storage racks held on site at customer locations. 3 Returnable bottles are those bottles on site at Route Based Services customer locations. 4 Our recorded assets under finance leases relate to machinery and equipment, customer equipment, IT systems, customer equipment and vehicles and transportation equipment. The amounts above include construction in progress of $8.3 million and $19.3 million for 2019 and 2018 , respectively. Depreciation expense, which includes depreciation recorded for assets under finance leases, for the year ended December 28, 2019 was $127.5 million ( 2018 - $123.6 million ; 2017 - $120.0 million ). |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net The following table summarizes intangible assets, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangibles Not subject to amortization Rights 1 $ — — $ — $ 24.5 — $ 24.5 Trademarks 287.1 — 287.1 282.3 — 282.3 Total intangibles not subject to amortization $ 287.1 — $ 287.1 $ 306.8 — $ 306.8 Subject to amortization Customer relationships 654.1 286.5 367.6 603.1 211.1 392.0 Patents 15.2 4.0 11.2 15.2 2.5 12.7 Software 56.9 31.3 25.6 38.0 20.5 17.5 Other 17.9 8.0 9.9 16.6 6.4 10.2 Total intangibles subject to amortization $ 744.1 $ 329.8 $ 414.3 $ 672.9 $ 240.5 $ 432.4 Total intangible assets $ 1,031.2 $ 329.8 $ 701.4 $ 979.7 $ 240.5 $ 739.2 ______________________ 1 Relates to the 2001 acquisition of intellectual property from Royal Crown Company, Inc. and includes the right to manufacture concentrates, with all related inventions, processes, technologies, technical and manufacturing information, know-how and the use of the Royal Crown brand outside of North America and Mexico at our Cott Beverages LLC business. The Company sold Cott Beverages LLC to Refresco during the first quarter of 2019. Amortization expense of intangible assets was $65.3 million during 2019 ( 2018 - $71.0 million ; 2017 - $68.6 million ). The estimated amortization expense for intangible assets subject to amortization over the next five years is: (in millions of U.S. dollars) 2020 $ 69.7 2021 58.7 2022 47.7 2023 37.4 2024 33.4 Thereafter 167.4 Total $ 414.3 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities The following table summarizes accounts payable and accrued liabilities as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Trade payables $ 200.4 $ 206.1 Accrued compensation 58.8 46.7 Accrued sales incentives 10.0 10.5 Accrued interest 23.9 24.2 Payroll, sales and other taxes 17.4 21.7 Accrued deposits 77.1 70.6 Derivative liability — 10.9 Self-insurance liabilities 18.3 16.9 Other accrued liabilities 60.2 61.4 Total $ 466.1 $ 469.0 |
Debt
Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our total debt as of December 28, 2019 and December 29, 2018 was as follows: December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Principal Unamortized Debt Costs Net Principal Unamortized Debt Costs Net 5.500% senior notes due in 2024 499.3 5.8 493.5 513.1 7.2 505.9 5.500% senior notes due in 2025 750.0 8.2 741.8 750.0 9.8 740.2 ABL facility 92.0 — 92.0 81.1 — 81.1 Short-term borrowings 0.4 — 0.4 7.9 — 7.9 Finance leases 30.9 — 30.9 5.0 — 5.0 Other debt financing 1.4 — 1.4 2.1 — 2.1 Total debt 1,374.0 14.0 1,360.0 1,359.2 17.0 1,342.2 Less: Short-term borrowings and current debt: ABL facility 92.0 — 92.0 81.1 — 81.1 Short-term borrowings 0.4 — 0.4 7.9 — 7.9 Finance leases - current maturities 6.3 — 6.3 1.9 — 1.9 Other debt financing 1.1 — 1.1 1.1 — 1.1 Total current debt 99.8 — 99.8 92.0 — 92.0 Total long-term debt $ 1,274.2 $ 14.0 $ 1,260.2 $ 1,267.2 $ 17.0 $ 1,250.2 The long-term debt payments (which include current maturities of long-term debt) required in each of the next five years and thereafter are as follows: (in millions of U.S. dollars) Long-Term Debt (including current) 2020 $ 100.0 2021 5.6 2022 5.0 2023 4.8 2024 503.4 Thereafter 755.2 $ 1,374.0 Asset-Based Lending Facility In March 2008, we entered into a credit agreement with JPMorgan Chase Bank N.A. as Administrative Agent that created an ABL facility to provide financing for our operations. We have amended and refinanced the ABL facility from time to time and incurred related financing fees, $4.3 million of which have been capitalized and deferred and are being amortized using the straight-line method over the duration of the amended ABL facility. As of December 28, 2019 , our total availability under the ABL facility was $216.4 million , which was based on our borrowing base (accounts receivables, inventory, and fixed assets as of the December 2019 month-end under the terms of the credit agreement governing the ABL facility). As of December 28, 2019 , we had $92.0 million of outstanding borrowings under the ABL facility and $47.4 million of letters of credit. As a result, our excess availability under the ABL facility was $77.0 million as of December 28, 2019 . The commitment fee was 0.250% per annum of the unused commitment, which was $110.6 million as of December 28, 2019 . The weighted average effective interest rate at December 28, 2019 on our outstanding borrowings was 3.40% . The effective interest rates are based on our aggregate availability. In January 2018, we amended and restated the Amended and Restated Credit Agreement. The ABL facility, as amended and restated, provides us with financing in the United States, Canada, the United Kingdom and the Netherlands. Cott and its subsidiaries, Cott Holdings Inc., DSS, S&D, Aimia and Aquaterra, are borrowers under the ABL facility. The ABL facility is a revolving facility of up to $250.0 million with a maturity date of August 3, 2021 . JPMorgan Chase Bank, N.A. serves as administrative agent and administrative collateral agent and JPMorgan Chase Bank, N.A., London Branch serves as U.K. security trustee. Availability under the ABL facility is dependent on a borrowing base calculated as a percentage of the value of eligible inventory, accounts receivable and property, plant and equipment in the manner set forth in the credit agreement. Subject to certain conditions, the ABL facility may be increased up to an additional $100.0 million at our option if lenders agree to increase their commitments. The debt under the ABL facility is guaranteed by most of our U.S., Canadian and U.K. subsidiaries, certain of our Dutch subsidiaries and certain other subsidiaries. As disclosed previously on a Current Report on Form 8-K dated February 7, 2020 (the “ABL Amendment 8-K”), on February 7, 2020, the ABL facility was amended to, among other things, modify certain negative covenants of the ABL facility to facilitate the sale of S&D (see Note 24 to the Consolidated Financial Statements) and to limit the conditions to be met for the acquisition of Primo Water Corporation (see Note 24 to the Consolidated Financial Statements) to be permitted under the ABL facility (the “ABL Amendment”). This reference to the ABL Amendment does not purport to be complete and is qualified in its entirety by reference to Exhibit 10.1 to the ABL Amendment 8-K. 5.500% Senior Notes due in 2025 In March 2017, we issued $750.0 million of our 2025 Notes to qualified purchasers in a private placement offering under Rule 144A under the Securities Act, and outside the United States to non-U.S. purchasers pursuant to Regulation S under the Securities Act and other applicable laws. The 2025 Notes were issued by our wholly-owned subsidiary Cott Holdings Inc., and most of our U.S., Canadian, U.K. and Dutch subsidiaries guarantee the 2025 Notes. The 2025 Notes will mature on April 1, 2025 and interest is payable semi-annually on April 1st and October 1st of each year commencing on October 1, 2017. The proceeds of the 2025 Notes were used to redeem in full the 2020 Notes, redeem $100.0 million aggregate principal amount of our DSS Notes and to pay related fees and expenses. We incurred $11.7 million of financing fees in connection with the issuance of the 2025 Notes. The financing fees are being amortized using the effective interest method over a period of eight years , which represents the term to maturity of the 2025 Notes. 5.500% Senior Notes due in 2024 In June 2016, we issued €450.0 million (U.S. $499.3 million at the exchange rate in effect on December 28, 2019 ) of our 2024 Notes to qualified purchasers in a private placement offering under Rule 144A and Regulation S under the Securities Act and other applicable laws. The 2024 Notes were initially issued by our wholly-owned subsidiary Cott Finance Corporation. In connection with the closing of the acquisition of Eden, we assumed all of the obligations of Cott Finance Corporation under the 2024 Notes, and most of our U.S., Canadian, U.K. and Dutch subsidiaries that are currently obligors under the 2022 Notes and the 2020 Notes entered into a supplemental indenture to guarantee the 2024 Notes. The 2024 Notes will mature on July 1, 2024 and interest is payable semi-annually on January 1st and July 1st of each year commencing on January 1, 2017. The proceeds of the 2024 Notes were used to fund a portion of the purchase price of the acquisition of Eden and to pay related fees and expenses. We incurred approximately $11.3 million of financing fees for the issuance of the 2024 Notes and $11.0 million of bridge financing commitment fees and professional fees in connection with the acquisition of Eden. The financing fees are being amortized using the effective interest method over a period of eight years , which represents the term to maturity of the 2024 Notes. The bridge financing commitment fees and professional fees were expensed as incurred. Covenant Compliance Indentures governing our outstanding notes Under the indentures governing our outstanding notes, we are subject to a number of covenants, including covenants that limit our and certain of our subsidiaries’ ability, subject to certain exceptions and qualifications, to (i) pay dividends or make distributions, repurchase equity securities, prepay subordinated debt or make certain investments, (ii) incur additional debt or issue certain disqualified stock or preferred stock, (iii) create or incur liens on assets securing indebtedness, (iv) merge or consolidate with another company or sell all or substantially all of our assets taken as a whole, (v) enter into transactions with affiliates and (vi) sell assets. The covenants are substantially similar across the series of notes. As of December 28, 2019 , we were in compliance with all of the covenants under each series of notes. There have been no amendments to any covenants of our outstanding notes since the date of their issuance or assumption, as applicable. ABL Facility Under the credit agreement governing the ABL facility, Cott and its restricted subsidiaries are subject to a number of business and financial covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. The minimum fixed charge coverage ratio of 1.0 to 1.0 is effective if and when there exists an event of default or aggregate availability is less than the greater of 10% of the Line Cap under the ABL facility or $22.5 million (which would be reduced to $13.5 million upon the sale of our S&D business, per the ABL Amendment). Line Cap is defined as an amount equal to the lesser of the lenders’ commitments or the borrowing base at such time. If an event of default exists or the excess availability is less than the greater of 10% of the aggregate availability under the ABL facility or $22.5 million (which would be reduced to $13.5 million upon the sale of our S&D business, per the ABL Amendment), the lenders will take dominion over the cash and will apply excess cash to reduce amounts owing under the facility. We were in compliance with all of the applicable covenants under the ABL facility as of December 28, 2019 . |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Company maintains certain defined contribution (“DC”) retirement plans covering qualifying employees. The total expense with respect to these DC plans was $7.3 million for the year ended December 28, 2019 ( 2018 — $4.4 million ; 2017 — $2.0 million ). The Company also maintains several defined benefit (“DB”) plans acquired as a part of acquisitions covering certain U.S. and non-U.S. employees, referred to as the U.S. and International Plans, respectively. Retirement benefits are based on years of service multiplied by a monthly benefit factor. Pension costs are funded in accordance with the provisions of the applicable law. Our U.S. Plan is closed to new participants and is frozen. The Company uses a December 28, 2019 measurement date for all DB plans. Any variation differences based on three days of trading are deemed immaterial. In the third quarter of 2017, our Eden business relocated its corporate headquarters from Switzerland to Spain, which resulted in the dismissal or relocation of certain non-U.S. employees of the International Plans. As a result of the dismissal or relocation of the certain non-U.S. employees, we recorded a gain on pension curtailment of approximately $4.5 million to other expense (income), net, in the Consolidated Statement of Operations for the year ended December 30, 2017 . Obligations and Funded Status The following table summarizes the change in the projected benefit obligation, change in plan assets and unfunded status of the DB plans as of December 28, 2019 and December 29, 2018 : December 28, 2019 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 7.9 $ 10.8 $ 18.7 Plan amendment — 0.4 0.4 Service cost — 0.8 0.8 Interest cost 0.3 0.2 0.5 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.5 ) (1.9 ) Actuarial losses 0.8 1.5 2.3 Translation losses — 0.6 0.6 Projected benefit obligation at end of year $ 8.6 $ 13.1 $ 21.7 Change in Plan Assets Plan assets beginning of year $ 6.9 $ 5.8 $ 12.7 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.0 ) (1.4 ) Settlement gains — 0.2 0.2 Actual return on plan assets 1.3 (0.1 ) 1.2 Translation gains — 0.2 0.2 Fair value at end of year $ 8.1 $ 5.9 $ 14.0 Funded Status of Plan Projected benefit obligation $ (8.6 ) $ (13.1 ) $ (21.7 ) Fair value of plan assets 8.1 5.9 14.0 Unfunded status $ (0.5 ) $ (7.2 ) $ (7.7 ) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 8.4 $ 12.8 $ 21.2 Plan amendment — (0.1 ) (0.1 ) Service cost — 0.8 0.8 Interest cost 0.3 0.1 0.4 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.4 ) (1.8 ) Actuarial gains (0.4 ) (0.4 ) (0.8 ) Settlement gains — (0.8 ) (0.8 ) Translation gains — (0.5 ) (0.5 ) Projected benefit obligation at end of year $ 7.9 $ 10.8 $ 18.7 Change in Plan Assets Plan assets beginning of year $ 7.1 $ 6.6 $ 13.7 Employer contributions 0.3 0.4 0.7 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (0.8 ) (1.2 ) Settlement losses — (0.5 ) (0.5 ) Actual return on plan assets (0.1 ) — (0.1 ) Translation losses — (0.2 ) (0.2 ) Fair value at end of year $ 6.9 $ 5.8 $ 12.7 Funded Status of Plan Projected benefit obligation $ (7.9 ) $ (10.8 ) $ (18.7 ) Fair value of plan assets 6.9 5.8 12.7 Unfunded status $ (1.0 ) $ (5.0 ) $ (6.0 ) The accumulated benefit obligation for the U.S. Plans equaled $8.6 million and $7.9 million at the end of 2019 and 2018 , respectively. The accumulated benefit obligation for the International Plans equaled $13.1 million and $10.8 million at the end of 2019 and 2018 , respectively. Periodic Pension Costs The components of net periodic pension cost were as follows: December 28, 2019 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.2 0.5 Expected return on plan assets (0.5 ) — (0.5 ) Net periodic pension (benefit) cost $ (0.2 ) $ 1.0 $ 0.8 December 29, 2018 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5 ) — (0.5 ) Recognized net gain due to settlement — (0.3 ) (0.3 ) Net periodic pension (benefit) cost $ (0.2 ) $ 0.6 $ 0.4 December 30, 2017 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 1.5 $ 1.5 Interest cost (0.3 ) 0.3 — Expected return on plan assets 0.4 (0.3 ) 0.1 Curtailment gain — (4.5 ) (4.5 ) Net periodic pension cost (benefit) $ 0.1 $ (3.0 ) $ (2.9 ) Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss, net of tax, at year-end which have not yet been recognized in net periodic benefit cost were as follows: December 28, 2019 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.1 ) $ (0.9 ) $ (1.0 ) Total accumulated other comprehensive loss $ (0.1 ) $ (0.9 ) $ (1.0 ) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial (loss) income $ (0.1 ) $ 0.4 $ 0.3 Total accumulated other comprehensive (loss) income $ (0.1 ) $ 0.4 $ 0.3 December 30, 2017 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.6 ) $ (16.2 ) $ (16.8 ) Total accumulated other comprehensive loss $ (0.6 ) $ (16.2 ) $ (16.8 ) Actuarial Assumptions The following table summarizes the weighted average actuarial assumptions used to determine the projected benefit obligation: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. Plans Discount rate 3.0 % 4.0 % 3.5 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 7.0 % International Plans Discount rate 1.1 % 2.4 % 2.0 % Expected long-term rate of return on plan assets 1.3 % 2.7 % 3.1 % Rate of compensation increase 2.7 % 1.4 % 1.4 % CPI Inflation factor 0.3 % 0.3 % 0.3 % The following table summarizes the weighted average actuarial assumptions used to determine net periodic benefit cost: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. Plans Discount rate 4.0 % 3.5 % 3.8 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 7.0 % International Plans Discount rate 1.1 % 2.4 % 2.0 % Expected long-term rate of return on plan assets 1.3 % 2.7 % 3.1 % Inflation factor 0.3 % 0.3 % 0.3 % The Company utilizes a yield curve analysis to determine the discount rates for its DB plan obligations. The yield curve considers pricing and yield information for high quality corporate bonds with maturities matched to estimated payouts of future pension benefits. The Company evaluates its assumption regarding the estimated long-term rate of return on plan assets based on historical experience, future expectations of investment returns, asset allocations, and its investment strategy. The Company’s long-term rate of return on plan assets reflect expectations of projected weighted average market returns of plan assets. Changes in expected returns on plan assets also reflect any adjustments to the Company’s targeted asset allocation. Asset Mix Our DB plans weighted-average asset allocations by asset category were as follows: December 28, 2019 December 29, 2018 U.S. Plans Equity securities 46.3 % 42.8 % Fixed income investments 53.7 % 57.2 % International Plans Equity securities 56.8 % 58.6 % Fixed income investments 33.2 % 31.0 % Real estate 10.0 % 10.4 % Plan Assets Our investment policy is that plan assets will be managed utilizing an investment philosophy and approach characterized by all of the following, listed in priority order: (1) emphasis on total return, (2) emphasis on high-quality securities, (3) sufficient income and stability of income, (4) safety of principal with limited volatility of capital through proper diversification and (5) sufficient liquidity. The target allocation percentages for the U.S. Plans’ assets range between 30% to 45% in equity securities and 55% to 70% in fixed income investments. The target allocation percentages for the International Plans’ assets range between 50% to 80% in equity securities, 20% to 50% in fixed income investments, 0% to 30% in real estate and 0% to 15% in alternative investments. None of our equity or debt securities are included in plan assets. Cash Flows We expect to contribute $1.6 million to the DB plans during the 2020 fiscal year. The following benefit payments are expected to be paid in the periods indicated below: (in millions of U.S. dollars) U.S. International Total Expected benefit payments FY 2020 $ 0.4 $ 1.2 $ 1.6 FY 2021 0.4 0.6 1.0 FY 2022 0.5 0.5 1.0 FY 2023 0.5 0.4 0.9 FY 2024 0.5 0.6 1.1 FY 2025 through FY 2029 2.6 9.7 12.3 The fair values of the Company’s U.S. plan assets are measured daily at their net asset value and valued at $8.1 million and $6.9 million at December 28, 2019 and December 29, 2018 , respectively. The fair values of the Company’s International plan assets at December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.7 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.3 $ 2.6 $ — December 29, 2018 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.9 — — Insurance contract — 1.8 — Real estate: Real estate — 0.6 — Total $ 3.5 $ 2.4 $ — |
Consolidated Accumulated Other
Consolidated Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Consolidated Accumulated Other Comprehensive Income (Loss) | Consolidated Accumulated Other Comprehensive Income (Loss) With the Traditional Business Disposition in 2018, the foreign currency translation balances associated with the Traditional Business were recognized in earnings in the period of disposition. Changes in consolidated accumulated other comprehensive income (loss) (“AOCI”) by component for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 were as follows: (in millions of U.S. dollars) 1 Gains and Losses on Derivative Instruments Pension Benefit Plan Items Currency Translation Adjustment Items Total Balance December 31, 2016 $ (0.1 ) $ (14.4 ) $ (103.4 ) $ (117.9 ) OCI before reclassifications — (2.7 ) 27.2 24.5 Amounts reclassified from AOCI (1.3 ) 0.3 — (1.0 ) Net current-period OCI (1.3 ) (2.4 ) 27.2 23.5 Balance December 30, 2017 $ (1.4 ) $ (16.8 ) $ (76.2 ) $ (94.4 ) OCI before reclassifications (14.5 ) 0.2 (25.5 ) (39.8 ) Amounts reclassified from AOCI 6.2 16.9 9.4 32.5 Net current-period OCI (8.3 ) 17.1 (16.1 ) (7.3 ) Balance December 29, 2018 $ (9.7 ) $ 0.3 $ (92.3 ) $ (101.7 ) OCI before reclassifications 12.9 (1.3 ) 13.6 25.2 Amounts reclassified from AOCI 8.0 — — 8.0 Net current-period OCI 20.9 (1.3 ) 13.6 33.2 Balance December 28, 2019 $ 11.2 $ (1.0 ) $ (78.7 ) $ (68.5 ) ______________________ 1 All amounts are net of tax. The following table summarizes the amounts reclassified from AOCI to total net income for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : (in millions of U.S. dollars) For the Year Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 December 28, 2019 December 29, 2018 December 30, 2017 Gains and losses on derivative instruments Foreign currency and commodity hedges $ (8.0 ) $ (6.2 ) $ 1.3 Cost of sales $ (8.0 ) $ (6.2 ) $ 1.3 Total before taxes — — — Tax (expense) or benefit $ (8.0 ) $ (6.2 ) $ 1.3 Net of tax Amortization of pension benefit plan items Recognized net actuarial loss 2 $ — $ (16.9 ) $ — Gain on sale of discontinued operations Actuarial (losses)/gains 3 — — (0.3 ) — (16.9 ) (0.3 ) Total before taxes — — — Tax (expense) or benefit $ — $ (16.9 ) $ (0.3 ) Net of tax Foreign currency translation adjustments — (9.4 ) — Gain on sale of discontinued operations Total reclassifications for the period $ (8.0 ) $ (32.5 ) $ 1.0 Net of tax ______________________ 1 Amounts in parenthesis indicate debits. 2 Net of $3.6 million of associated tax impact that resulted in an increase to the gain on the sale of discontinued operations for the year ended December 29, 2018. 3 This AOCI component is included in the computation of net periodic pension cost. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and legal proceedings with respect to matters such as governmental regulations, and other actions arising out of the normal course of business. Management believes that the resolution of these matters will not have a material adverse effect on our financial position, results of operations, or cash flow. In addition, the Israeli Ministry of Environmental Protection (the “Ministry”) has alleged that a non-profit recycling corporation, which collects and recycles bottles sold by manufacturers, including Eden, failed to meet recycling quotas in 2016, in violation of Israeli law. The law imposes liability directly on manufacturers, and the Ministry has asserted that the manufacturers involved with the corporation owe a fine. Eden received a notice from the Ministry on June 21, 2018. Although we cannot predict the outcome of any potential proceedings at this early stage, Eden may be subject to a fine in excess of $0.1 million . Management believes, however, that the resolution of this matter will not be material to our financial position, results of operations, or cash flow. We had $47.4 million in standby letters of credit outstanding as of December 28, 2019 ( $46.1 million — December 29, 2018 ; $46.0 million — December 30, 2017 ). We have future purchase obligations of $158.6 million that consist of commitments for the purchase of inventory, energy transactions, and payments related to professional fees and information technology outsourcing agreements. These obligations represent the minimum contractual obligations expected under the normal course of business. Guarantees After completion of the Traditional Business Disposition, the Company continues to provide contractual payment guarantees to three third-party lessors of certain real property used in the Traditional Business. The leases were conveyed to Refresco as part of the Traditional Business Disposition, but the Company’s guarantee was not released by the landlord. The three lease agreements mature in 2027 , 2028 and 2029 . The maximum potential amount of undiscounted future payments under the guarantee of approximately $29.4 million as of December 28, 2019 ( $32.2 million - December 29, 2018 ; $42.0 million - December 30, 2017 ) was calculated based on the minimum lease payments of the leases over the remaining term of the agreements. The Traditional Business Disposition documents require Refresco to pay all post-closing obligations under these conveyed leases, and to reimburse the Company if the landlord calls on a guarantee. Refresco has also agreed to a covenant to negotiate with the landlords for a release of the Company’s guarantees; discussions are ongoing. The Company currently believes it is unlikely that we will be required to perform under any of these guarantees or any of the underlying obligations. |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | Hedging Transactions and Derivative Financial Instruments We are directly and indirectly affected by changes in foreign currency market conditions. These changes in market conditions may adversely impact our financial performance and are referred to as market risks. When deemed appropriate by management, we use derivatives as a risk management tool to mitigate the potential impact of foreign currency market risks. We use various types of derivative instruments including, but not limited to, forward contracts, futures contracts and swap agreements for certain commodities. Forward and futures contracts are agreements to buy or sell a quantity of a currency at a predetermined future date, and at a predetermined rate or price. Forward contracts are traded over-the-counter whereas future contracts are traded on an exchange. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. All derivatives are carried at fair value in the Consolidated Balance Sheets in the line item accounts receivable, net or accounts payable and accrued liabilities. The carrying values of the derivatives reflect the impact of legally enforceable agreements with the same counterparties. These agreements allow us to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the types of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our Consolidated Statements of Operations as the changes in the fair value of the hedged items attributable to the risk being hedged. The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in AOCI and are reclassified into the line item in the Consolidated Statements of Operations in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the fair values or cash flows of the underlying exposures being hedged. The changes in fair values of derivatives that were not designated and/or did not qualify as hedging instruments are immediately recognized into earnings. We classify cash inflows and outflows related to derivative and hedging instruments within the appropriate cash flows section associated with the item being hedged. For derivatives that will be accounted for as hedging instruments, we formally designate and document, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, we formally assess both at the inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are highly effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. We estimate the fair values of our derivatives based on quoted market prices or pricing models using current market rates (see Note 22 to the Consolidated Financial Statements). The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates or other financial indices. We do not view the fair values of our derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions. All of our derivatives are over-the-counter instruments with liquid markets. Credit Risk Associated with Derivatives We have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. We monitor counterparty exposures regularly and review promptly any downgrade in counterparty credit rating. We mitigate pre-settlement risk by being permitted to net settle for transactions with the same counterparty. To minimize the concentration of credit risk, we enter into derivative transactions with a portfolio of financial institutions. Based on these factors, we consider the risk of counterparty default to be minimal. Cash Flow Hedging Strategy We use cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in commodity prices. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. We did not discontinue any cash flow hedging relationships during the years ended December 28, 2019 or December 29, 2018 , respectively. We have entered into coffee futures contracts to hedge our exposure to price fluctuations on green coffee associated with fixed-price sales contracts with customers, which generally range from three to twelve months in length. These derivative instruments have been designated and qualified as a part of our commodity cash flow hedging program effective January 1, 2017. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of green coffee. The notional amount for the coffee futures contracts that were designated and qualified for our commodity cash flow hedging program was 35.7 million pounds and 73.3 million pounds as of December 28, 2019 and December 29, 2018 , respectively. Approximately $8.0 million and $6.2 million of realized losses, representing the effective portion of the cash-flow hedge, were subsequently reclassified from AOCI to earnings and recognized in cost of sales in the Consolidated Statement of Operations for the years ended December 28, 2019 and December 29, 2018 , respectively. As of December 29, 2018, the estimated net amount of gains reported in AOCI that is expected to be reclassified to the Consolidated Statements of Operations within the next twelve months is $15.4 million . The fair value of our derivative assets included in prepaid expenses and other current assets was $8.6 million as of December 28, 2019 . We had no derivative assets as of December 29, 2018 . We had no derivative liabilities as of December 28, 2019 . Our derivative liabilities included in accounts payable and accrued liabilities was $10.9 million as of December 29, 2018 . Set forth below is a reconciliation of the Company’s derivatives by contract type for the periods indicated: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Derivative Contract Assets Liabilities Assets Liabilities Coffee futures 1 $ 8.6 $ — $ — $ (10.9 ) $ 8.6 $ — $ — $ (10.9 ) ______________________ 1 The fair value of the coffee futures excludes amounts in the related margin accounts. We are required to maintain margin accounts in accordance with futures market and broker regulations. As of December 28, 2019 and December 29, 2018 , the aggregate margin account balances were $6.4 million and $12.9 million , respectively and are included in cash and cash equivalents on the Consolidated Balance Sheets. Coffee futures are subject to enforceable master netting arrangements and are presented net in the reconciliation above. The fair value of the coffee futures assets and liabilities which are shown on a net basis are reconciled in the table below: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Coffee futures assets $ 12.1 $ 0.1 Coffee futures liabilities (3.5 ) (11.0 ) Net asset (liability) $ 8.6 $ (10.9 ) The location and amount of gains or losses recognized in the Consolidated Statements of Operations for cash flow hedging relationships, presented on a pre-tax basis, for the years ended December 28, 2019 and December 29, 2018 , respectively, is shown in the table below: For the Year Ended December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Cost of Sales Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,166.7 $ 1,197.3 Loss on cash flow hedging relationship Coffee futures: Loss reclassified from AOCI into income/expense $ 8.0 $ 6.2 The settlement of our derivative instruments resulted in a debit to cost of sales of $8.0 million and $6.2 million for the years ended December 28, 2019 and December 29, 2018 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC No. 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. We have certain assets and liabilities such as our derivative instruments that are required to be recorded at fair value on a recurring basis in accordance with U.S. GAAP. Our derivative assets and liabilities represent Level 2 instruments. Level 2 instruments are valued based on observable inputs for quoted prices for similar assets and liabilities in active markets. The fair value of the derivative assets as of December 28, 2019 was $8.6 million . We had no derivative assets as of December 29, 2018 . We had no derivative liabilities as of December 28, 2019 . The fair value for the derivative liabilities as of December 29, 2018 was $10.9 million . Fair value of financial instruments The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, receivables, payables, short-term borrowings and long-term debt approximate their respective fair values, except as otherwise indicated. The carrying values and estimated fair values of our significant outstanding debt as of December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Carrying Value Fair Value Carrying Value Fair Value 5.500% senior notes due in 2024 1, 2 493.5 514.5 505.9 521.7 5.500% senior notes due in 2025 1, 2 741.8 775.3 740.2 695.8 Total $ 1,235.3 $ 1,289.8 $ 1,246.1 $ 1,217.5 ______________________ 1 The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 2 financial instruments. 2 Carrying value of our significant outstanding debt is net of unamortized debt issuance costs as of December 28, 2019 and December 29, 2018 (see Note 17 to the Consolidated Financial Statements). |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) Year Ended December 28, 2019 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 574.1 $ 604.1 $ 616.1 $ 600.2 $ 2,394.5 Cost of sales 291.2 291.0 289.9 294.6 1,166.7 Gross profit 282.9 313.1 326.2 305.6 1,227.8 Selling, general and administrative expenses 272.1 284.2 280.8 275.9 1,113.0 Loss on disposal of property plant and equipment, net 1.9 1.6 1.1 2.9 7.5 Acquisition and integration expenses 4.8 2.7 2.7 6.7 16.9 Operating income 4.1 24.6 41.6 20.1 90.4 Net (loss) income from continuing operations (19.7 ) 4.4 8.6 6.6 (0.1 ) Net income from discontinued operations, net of income taxes — — 1.5 1.5 3.0 Net (loss) income attributable to Cott Corporation $ (19.7 ) $ 4.4 $ 10.1 $ 8.1 $ 2.9 Per share data: Net (loss) income per common share attributable to Cott Corporation Basic: Continuing operations $ (0.14 ) $ 0.03 $ 0.06 $ 0.05 $ — Discontinued operations $ — $ — $ 0.01 $ 0.01 $ 0.02 Net (loss) income $ (0.14 ) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Diluted: Continuing operations $ (0.14 ) $ 0.03 $ 0.06 $ 0.05 $ — Discontinued operations $ — $ — $ 0.01 $ 0.01 $ 0.02 Net (loss) income $ (0.14 ) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Year Ended December 29, 2018 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 560.8 $ 603.6 $ 609.3 $ 599.2 $ 2,372.9 Cost of sales 287.3 302.2 298.8 309.0 1,197.3 Gross profit 273.5 301.4 310.5 290.2 1,175.6 Selling, general and administrative expenses 261.1 275.2 279.9 275.9 1,092.1 Loss on disposal of property, plant and equipment, net 1.3 1.3 1.2 5.6 9.4 Acquisition and integration expenses 5.0 4.2 1.6 4.5 15.3 Operating income 6.1 20.7 27.8 4.2 58.8 Net income from continuing operations 4.6 12.2 8.5 3.6 28.9 Net income (loss) from discontinued operations, net of income taxes 357.4 (1.4 ) 1.5 (2.9 ) 354.6 Less: Net income attributable to non-controlling interests - discontinued operations 0.6 — — — 0.6 Net income attributable to Cott Corporation $ 361.4 $ 10.8 $ 10.0 $ 0.7 $ 382.9 Per share data: Net income per common share attributable to Cott Corporation Basic: Continuing operations $ 0.03 $ 0.09 $ 0.06 $ 0.03 $ 0.21 Discontinued operations $ 2.55 $ (0.01 ) $ 0.01 $ (0.02 ) $ 2.54 Net income $ 2.58 $ 0.08 $ 0.07 $ 0.01 $ 2.75 Diluted: Continuing operations $ 0.03 $ 0.09 $ 0.06 $ 0.03 $ 0.21 Discontinued operations $ 2.51 $ (0.01 ) $ 0.01 $ (0.02 ) $ 2.50 Net income $ 2.54 $ 0.08 $ 0.07 $ 0.01 $ 2.71 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 13, 2020, Cott entered into an Agreement and Plan of Merger with Cott Holdings Inc., a wholly-owned subsidiary of Cott (“Holdings”), Fore Merger LLC, a wholly-owned subsidiary of Holdings (“Merger Sub”), Fore Acquisition Corporation, a wholly-owned subsidiary of Merger Sub (the “Primo Purchaser”), and Primo Water Corporation (“Primo”), pursuant to which, on January 28, 2020, the Primo Purchaser commenced an exchange offer to purchase all of the outstanding shares of common stock of Primo, par value $0.001 per share, in exchange for, at the election of the Primo’s stockholders, (i) $14.00 in cash, (ii) 1.0229 Cott common shares, no par value per share, plus cash in lieu of any fractional Cott common shares, or (iii) $5.04 in cash and 0.6549 Cott common shares (the “Offer”). As soon as practicable following the consummation of the Offer, the Primo Purchaser intends to acquire any remaining Primo shares by a merger of the Primo Purchaser with and into Primo (the “First Merger”), with Primo surviving the First Merger as a wholly-owned subsidiary of Merger Sub. Immediately following the First Merger, Primo intends to merge with and into Merger Sub, with Merger Sub being the surviving entity (the “Second Merger” and, together with the First Merger, the “Mergers”). Cott expects to issue an aggregate of up to 26,825,842 shares of its common stock in the Offer and the Mergers (collectively, the “Primo Acquisition”). The estimated aggregate consideration to be paid in the Primo Acquisition is approximately $775 million and includes approximately $216 million to be paid in cash, $367 million of Cott common shares and $192 million of cash paid to retire outstanding indebtedness on behalf of Primo. The actual aggregate consideration will be calculated upon closing of the Primo Acquisition based on the closing price of Cott common shares as of that date and actual outstanding indebtedness. The Primo Acquisition is expected to close in the first quarter of 2020, subject to satisfaction of certain conditions to the Offer and the First Merger. On January 30, 2020, Cott entered into a Stock Purchase Agreement with Holdings, S&D, and Westrock Coffee Company, LLC, a Delaware limited liability company (“Purchaser”), pursuant to which Purchaser will acquire all of the issued and outstanding equity of S&D from Holdings (the “S&D Disposition”). The aggregate deal consideration is $405 million , payable at closing in cash, subject to adjustments for indebtedness, working capital, and cash. The S&D Disposition met the held for sale criteria in the first quarter of fiscal year 2020 and, because it represents a strategic shift that will have a major effect on Cott’s operations and financial results, will be reported in discontinued operations. The S&D Disposition is expected to close in the first quarter of 2020 and is subject to satisfaction of certain conditions, including receipt of U.S. regulatory clearance. The Company intends to use the proceeds of the S&D Disposition to finance a portion of its acquisition of Primo, depending on the timing of closing, or otherwise to pay down indebtedness. On February 7, 2020, Cott amended the Second Amended and Restated Credit Agreement, which governs our ABL facility. The amendment limits the conditions that needs to be met to consummate the S&D Disposition and the Primo Acquisition and increases the amount that the Primo assets may contribute to the borrowing base at the closing of the Primo Acquisition. In addition, subject to certain additional conditions, the amendment amends the credit agreement to permit the existence of a term loan to fund the Primo Acquisition and related expenses. On February 19, 2020 , the Board of Directors declared a dividend of $0.06 per common share, payable in cash on March 25, 2020 to shareowners of record at the close of business on March 10, 2020 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions of U.S. dollars) Year Ended December 28, 2019 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (9.6 ) $ 0.1 $ (12.9 ) $ 0.1 $ 13.2 $ (9.1 ) Inventories (1.4 ) — — — 0.2 (1.2 ) Deferred tax assets (98.0 ) — (19.7 ) (2.6 ) — (120.3 ) $ (109.0 ) $ 0.1 $ (32.6 ) $ (2.5 ) $ 13.4 $ (130.6 ) (in millions of U.S. dollars) Year Ended December 29, 2018 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (7.8 ) $ 0.2 $ (13.9 ) $ 9.8 $ 2.1 $ (9.6 ) Inventories (1.5 ) — (0.4 ) — 0.5 (1.4 ) Deferred tax assets 2 (129.1 ) — 4.2 26.9 — (98.0 ) $ (138.4 ) $ 0.2 $ (10.1 ) $ 36.7 $ 2.6 $ (109.0 ) (in millions of U.S. dollars) Year Ended December 30, 2017 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (6.3 ) $ 0.1 $ (16.2 ) $ 10.8 $ 3.8 $ (7.8 ) Inventories (1.3 ) — (0.4 ) — 0.2 (1.5 ) Deferred tax assets (117.7 ) — (17.6 ) 6.2 — (129.1 ) $ (125.3 ) $ 0.1 $ (34.2 ) $ 17.0 $ 4.0 $ (138.4 ) ______________________ 1 Deductions primarily represent uncollectible accounts written off. 2 Amounts charged to other accounts include $35.1 million related to the release of the U.S. valuation allowance recorded through discontinued operations as a result of the Traditional Business Disposition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) using the U.S. dollar as the reporting currency, as the majority of our business and the majority of our shareowners are in the United States. Our fiscal year is based on either a 52- or 53- week period ending on the Saturday closest to December 31. For the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , we had 52 - weeks of activity. One of our subsidiaries uses a Gregorian calendar year-end which differs from the Company’s 52- or 53- week fiscal year-end. Differences arising from the use of the different fiscal year-ends were not deemed material for the fiscal years ended December 28, 2019 , December 29, 2018 or December 30, 2017 |
Basis of consolidation | Basis of consolidation The Consolidated Financial Statements include our accounts, our wholly-owned and majority-owned subsidiaries that we control. All intercompany transactions and accounts have been eliminated in consolidation. |
Changes in presentation | Changes in presentation Certain prior year amounts have been reclassified to conform to the current year presentation on the accompanying Consolidated Statements of Cash Flows. We reclassified amortization of senior notes premium and commodity hedging loss (gain), net to other non-cash items. These reclassifications had no effect on net cash provided by operating activities. |
Estimates | Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Consolidated Financial Statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, realization of deferred income tax assets, the resolution of tax contingencies and projected benefit plan obligations. |
Revenue recognition, Sales incentives & Cost of sales | Revenue recognition We recognize revenue, net of sales returns, when ownership passes to customers for products manufactured in our own plants and/or by third-parties on our behalf, and when prices to our customers are fixed or determinable and collection is reasonably assured. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue. Although we occasionally accept returns of products from our customers, historically returns have not been material. We also recognize rental income on filtration, brewers and dispensing equipment at customer locations based on the terms of the related rental agreements, which are generally measured based on 28 -day periods. Amounts billed to customers for rental in future periods are deferred and included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. Sales incentives We participate in various incentive programs with our customers, including volume-based incentives, contractual rebates and promotional allowances. Volume incentives are based on our customers achieving volume targets for a period of time. Volume incentives and contractual rebates are deducted from revenue and accrued as the incentives are earned and are based on management’s estimate of the total the customer is expected to earn and claim. Promotional allowances are accrued at the time of revenue recognition and are deducted from revenue based on either the volume shipped or the volume sold at the retailer location, depending on the terms of the allowance. We regularly review customer sales forecasts to ensure volume targets will be met and adjust incentive accruals and revenues accordingly. Cost of sales We record costs associated with the manufacturing of our products in cost of sales. Shipping and handling costs incurred to store, prepare and move products between production facilities or from production facilities to branch locations or storage facilities are recorded in cost of sales. Shipping and handling costs incurred to deliver products from our Route Based Services and Coffee, Tea and Extract Solutions reporting segment branch locations to the end-user consumer of those products are recorded in selling, general and administrative (“SG&A”) expenses. All other costs incurred in shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A were $492.9 million , $473.8 million , and $440.8 million for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 , respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. |
Selling, general and administrative expenses | Selling, general and administrative expenses |
Share-based compensation | Share-based compensation We have in effect equity incentive plans under which Time-based RSUs, Performance-based RSUs, non-qualified stock options and director share awards have been granted (as such terms are defined in Note 9 of the Consolidated Financial Statements). Share-based compensation expense for all share-based compensation awards is based on the grant-date fair value. We recognized these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years , and account for forfeitures when they occur. The fair value of the Company’s Time-based RSUs, Performance-based RSUs and director share awards are based on the closing market price of its common shares on the date of grant as stated on the NYSE. We estimate the fair value of non-qualified options as of the date of grant using the Black-Scholes option pricing model. This model considers, among other factors, the expected life of the award, the expected volatility of the Company’s share price, and expected dividends. The Company records share-based compensation expense in SG&A expenses. All excess tax benefits and tax deficiencies related to share-based compensation are recognized in results of operations at settlement or expiration of the award. The excess tax benefit or deficiency is calculated as the difference between the grant date price and the price of our common shares on the vesting or exercise date. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all highly liquid investments with original maturities not exceeding three months at the time of purchase. The fair values of our cash and cash equivalents approximate the amounts shown on our Consolidated Balance Sheets due to their short-term nature. |
Allowance for doubtful accounts | Allowance for doubtful accounts A portion of our accounts receivable is not expected to be collected due to non-payment, bankruptcies and deductions. Our accounting policy for the allowance for doubtful accounts requires us to reserve an amount based on the evaluation of the aging of accounts receivable, detailed analysis of high-risk customers’ accounts, and the overall market and economic conditions of our customers. This evaluation considers the customer demographic, such as large commercial customers as compared to small businesses or individual customers. We consider our accounts receivable delinquent or past due based on payment terms established with each customer. Accounts receivable are written off when the account is determined to be uncollectible. |
Inventories | Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or net realizable value. Finished goods and work-in-process include the inventory costs of raw materials, direct labor and manufacturing overhead costs. As a result, we use an inventory reserve to adjust our inventory costs down to a net realizable value and to reserve for estimated obsolescence of both raw materials and finished goods. |
Customer deposits | Customer deposits The Company generally collects deposits on three- and five-gallon bottles used by our home and office water delivery customers. Such deposits are refunded only after customers return such bottles in satisfactory condition. The associated bottle deposit liability is estimated based on the number of water customers, average consumption and return rates and bottle deposit market rates. The Company analyzes these assumptions quarterly and adjusts the bottle deposit liability as necessary. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is allocated between cost of sales and SG&A expenses and is determined using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the remaining life of the lease or useful life of the asset, whichever is shorter. Maintenance and repairs are charged to operating expense when incurred. |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. At inception, we determine whether an agreement represents a lease and, at commencement, we evaluate each lease agreement to determine whether the lease constitutes an operating or financing lease. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. As described below under “Recently adopted accounting pronouncements,” we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02 - Leases as of December 30, 2018. With the adoption of ASU 2016-02, we recorded operating lease right-of-use assets and operating lease obligations on our balance sheet. Right-of-use lease assets represent our right to use the underlying asset for the lease term, and the operating lease obligation represents our commitment to make the lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with terms of one-year or less. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. |
Goodwill | Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually. |
Intangible assets | Intangible assets As of December 28, 2019 , our intangible assets subject to amortization, net of accumulated amortization were $414.3 million , consisting principally of $367.6 million of customer relationships that arose from acquisitions, $25.6 million of software, and $11.2 million of patents. Customer relationships are typically amortized on an accelerated basis for the period over which we expect to receive the economic benefits. The customer relationship intangible assets acquired in our acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the estimated undiscounted after-tax cash flows. We review the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a loss of a significant customer. Our review of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in the intangible asset would result in either an impairment in the value of the intangible asset or an accelerated amortization of any remaining value and could lead to an impairment of the fixed assets that were used to service that customer. In 2018, we recorded $10.0 million in customer relationships acquired with the Mountain Valley Acquisition (as defined in Note 5 to the Consolidated Financial Statements) and $8.4 million in customer relationships acquired with the Crystal Rock Acquisition (as defined in Note 5 to the Consolidated Financial Statements). We did not record impairment charges for other intangible assets in 2019 , 2018 or 2017 . Our intangible assets with indefinite lives relate to trademarks acquired in the acquisition of DSS (the “DSS Trademarks”); trademarks acquired in the acquisition of Eden (the “Eden Trademarks”), trademarks acquired in the acquisition of Aquaterra (the “Aquaterra Trademarks”), trademarks acquired in the Mountain Valley Acquisition (the “Mountain Valley Trademarks”) and trademarks acquired in the Crystal Rock Acquisition (the “Crystal Rock Trademarks”). These assets have an aggregate net book value of $287.1 million as of December 28, 2019 . There are no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. The life of the DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks are considered to be indefinite and therefore these intangible assets are not amortized. Rather, they are tested for impairment at least annually or more frequently if we determine a triggering event has occurred during the year. We compare the carrying amount of the intangible asset to its fair value and when the carrying amount is greater than the fair value, we recognize in income an impairment loss. During the fourth quarter of 2019 , management concluded that it was more likely than not that the fair value of the DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were greater than their respective carrying value, indicating no impairment. We assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the DSS Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were less than their respective carrying value. The qualitative factors we assessed included macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant events, the impact of which are all significant judgments and estimates. We concluded that it was more likely than not that the fair value of the DSS Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks were more than its carrying value and therefore we were not required to perform any additional testing. To determine the fair value of the Eden Trademarks, we use a relief from royalty method of the income approach, which calculates a fair value royalty rate that is applied to revenue forecasts associated with those trademarks. The resulting cash flows are discounted using a rate to reflect the risk of achieving the projected royalty savings attributable to the trademarks. The assumptions used to estimate the fair value of these trademarks are subjective and require significant management judgment, including estimated future revenues, the fair value royalty rate (which is estimated to be a reasonable market royalty charge that would be charged by a licensor of the trademarks) and the risk adjusted discount rate. Based on our impairment test, the estimated fair value of the Eden Trademarks exceeded the carrying value by approximately 42.0% . If actual revenues in future periods are less than currently projected for the Eden Trademarks, these trademarks could be impaired. |
Impairment and disposal of long-lived assets | Impairment and disposal of long-lived assets When adverse events occur, we compare the carrying amount of long-lived assets to the estimated undiscounted future cash flows at the lowest level of independent cash flows for the group of long-lived assets and recognize any impairment loss based on discounted cash flows in the Consolidated Statements of Operations, taking into consideration the timing of testing and the asset’s remaining useful life. The expected life and value of these long-lived assets is based on an evaluation of the competitive environment, history and future prospects as appropriate. We did not record impairments of long-lived assets in 2019 or 2018 |
Derivative financial instruments | Derivative financial instruments We use derivative financial instruments to manage our exposure to movements in foreign currencies and certain commodity prices. All derivative instruments are recorded at fair value in the Consolidated Balance Sheets. We do not use derivative financial instruments for trading or speculative purposes. We manage credit risk related to the derivative financial instruments by requiring high credit standards for our counterparties and periodic settlements. Refer to Note 21 to the Consolidated Financial Statements for further information on our derivative financial instruments. |
Foreign currency translation | Foreign currency translation The assets and liabilities of non-U.S. active operations, all of which are self-sustaining, are translated to U.S. dollars at the exchange rates in effect at the balance sheet dates. Revenues and expenses are translated using average monthly exchange rates prevailing during the period. The resulting gains or losses are recorded in accumulated other comprehensive loss. |
Income taxes | Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amount of assets and liabilities and their respective tax bases, using currently enacted income tax rates. A valuation allowance is established to reduce deferred income tax assets if, on the basis of available evidence, it is not more likely than not that all or a portion of any deferred tax assets will be realized. The consideration of available evidence requires significant management judgment including an assessment of the future periods in which the deferred tax assets and liabilities are expected to be realized and projections of future taxable income. The ultimate realization of the deferred tax assets, including net operating losses, is dependent upon the generation of future taxable income during the periods prior to their expiration. If our estimates and assumptions about future taxable income are not appropriate, the value of our deferred tax assets may not be recoverable, which may result in an increase to our valuation allowance that will impact current earnings. We account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, based on the technical merits. The second step requires management to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations, and we include accrued interest and penalties within the other long-term liabilities line in the accompanying Consolidated Balance Sheets. |
Pension costs | Pension costs We record annual amounts relating to defined benefit pension plans based on calculations, which include various actuarial assumptions such as discount rates and assumed rates of return on plan assets depending on the pension plan. Material changes in pension costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the discount rate, changes in the expected long-term rate of return on plan assets, changes in the level of contributions to the plans and other factors. The funded status is the difference between the fair value of plan assets and the benefit obligation. Future actuarial gains or losses that are not recognized as net periodic benefits cost in the same periods will be recognized as a component of other comprehensive income. |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements Update ASU 2016-02 – Leases (Topic 842), amended by Update ASU 2018-11 – Leases—Targeted Improvements (Topic 842) and Update ASU 2019-01 – Leases—Codification Improvements (Topic 842) In February 2016, the FASB issued an update to its guidance on lease accounting for lessees and lessors. This update revises accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the balance sheet. The distinction between finance and operating leases has not changed, and the update does not significantly change the effect of finance and operating leases on the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows. Additionally, this update requires both qualitative and specific quantitative disclosures. For public entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The update requires adoption using a modified retrospective transition approach, with certain practical expedients available, with either 1) periods prior to the adoption date being recast or 2) a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. The amended guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component, but instead to account for those components as a single component if the non-lease components otherwise would be accounted for under ASC Topic 606 and both of the following are met: 1) the timing and pattern of transfer of the non-lease component or components and associated lease component are the same; and 2) the lease component, if accounted for separately, would be classified as an operating lease. If the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with ASC Topic 606. Otherwise, the entity must account for the combined component as an operating lease in accordance with ASC Topic 842. Effective December 30, 2018, we adopted the guidance in this amendment using the cumulative-effect adjustment method and elected the package of practical expedients permitted in ASC Topic 842. Accordingly, we accounted for our existing leases as operating or finance leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 29, 2018) would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. We also elected to not separate lease components from non-lease components for all fixed payments. Adoption of the new standard resulted in total operating lease obligations of $234.3 million and operating lease right-of-use assets of $228.0 million as of December 30, 2018. The difference between the initial operating lease obligation and the right-of-use assets is related to previously existing lease liabilities. In addition, the cumulative-effect adjustment recognized to the opening balance of retained earnings was $10.5 million related to unamortized deferred gains associated with sale-leaseback transactions that were previously being amortized over the leaseback term and deferred tax assets associated with these deferred gains. This standard did not have a material impact on the Company’s cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of the right-of-use assets and right-of-use liabilities for operating leases. See Note 2 to the Consolidated Financial Statements for additional information on leases. The standard also requires lessors to classify leases as sales-type, direct financing or operating leases, similar to existing guidance. We concluded that all of our lessor lease arrangements will continue to be classified as operating leases under the new standard. Update ASU 2017-08 – Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) In March 2017, the FASB amended its guidance on accounting for debt securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. We adopted the guidance in this amendment effective December 30, 2018. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2018-02 – Income Statement—Reporting Comprehensive Income (Topic 220) In February 2018, the FASB amended its guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the comprehensive tax legislation enacted by the U.S. government on December 22, 2017 commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) and requires certain disclosures about stranded tax effects. For public entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted, and may be applied in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate tax rate in the Tax Act is recognized. We adopted the guidance in this amendment effective December 30, 2018. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2018-07 – Compensation—Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) In June 2018, the FASB amended its guidance to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amended guidance also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606. We adopted the guidance in this amendment effective December 30, 2018. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2019-07 – Codification Updates to SEC Sections—Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates In July 2019, the FASB amended and aligned its guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The amendments in this update are effective immediately. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Recently issued accounting pronouncements Update ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326), Update ASU 2019-05 – Financial Instruments—Credit Losses—Targeted Transition Relief (Topic 326) and Update ASU 2019-11 – Codification Improvements to Financial Instruments—Credit Losses (Topic 326) In June 2016, the FASB amended its guidance to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The amended guidance also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. In May 2019, the FASB amended the original guidance by providing an option to irrevocably elect the fair value option for certain financial instruments previously measured at amortized cost basis. In November 2019, the FASB provided additional guidance around how to report expected recoveries. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption will be permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This guidance will be applied using a prospective or modified retrospective transition method, depending on the area covered in this update. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2018-13 – Fair Value Measurement (Topic 820) In August 2018, the FASB amended its guidance on disclosure requirements for fair value measurement. The update amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this update while delaying adoption of the additional disclosures until their effective date. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2018-14 – Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) In August 2018, the FASB amended its guidance on disclosure requirements for defined benefit plans. The update amends existing annual disclosure requirements applicable to all employers that sponsor defined benefit pension and other postretirement plans by adding, removing, and clarifying certain disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and are to be applied on a retrospective basis to all periods presented. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In August 2018, the FASB amended its guidance on customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update also requires customers to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted, including adoption in any interim period. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2019-04 – Codification Improvements to Topic 326—Financial Instruments—Credit Losses, Topic 815—Derivative and Hedging, and Topic 825—Financial Instruments In April 2019, the FASB amended its guidance to clarify and provide narrow-scope amendments for these three recent standards related to financial instruments accounting. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a prospective or modified retrospective transition method, depending on the area covered in this update. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2019-12 – Income Taxes—Simplifying the Accounting for Income Taxes (Topic 740) In December 2019, the FASB amended its guidance to remove certain exceptions to the general principles in Topic 740 and improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill by Segment | The following table summarizes our goodwill on a reporting segment basis as of December 28, 2019 and December 29, 2018 : Reporting Segment (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Total Balance December 30, 2017 $ 982.4 $ 117.8 $ 4.5 $ 1,104.7 Goodwill acquired during the year 63.3 — — 63.3 Adjustments (3.0 ) — — (3.0 ) Foreign exchange $ (21.1 ) $ — $ — $ (21.1 ) Balance December 29, 2018 1,021.6 117.8 4.5 1,143.9 Goodwill acquired during the year 35.3 10.4 — 45.7 Adjustments (3.1 ) — — (3.1 ) Divestitures — — (4.5 ) (4.5 ) Foreign exchange (6.3 ) — — (6.3 ) Balance December 28, 2019 $ 1,047.5 $ 128.2 $ — $ 1,175.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lease expense | The components of lease expense for the year ended December 28, 2019 were as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Operating lease cost $ 54.7 Short-term lease cost 5.0 Finance lease cost Amortization of right-of-use assets $ 5.0 Interest on lease liabilities 1.3 Total finance lease cost $ 6.3 Sublease income $ 0.8 Supplemental cash flow information related to leases for the year ended December 28, 2019 was as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 54.0 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 4.4 Right-of-use assets obtained in exchange for lease obligations: Operating leases 28.9 Finance leases 30.6 |
Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) December 28, 2019 Operating leases Operating lease right-of-use assets $ 203.1 Current operating lease obligations 41.7 Operating lease obligations 167.8 Total operating lease obligations $ 209.5 Financing leases Property, plant and equipment, net $ 31.9 Current maturities of long-term debt 6.3 Long-term debt 24.6 Total finance lease obligations $ 30.9 Weighted Average Remaining Lease Term Operating leases 7.8 years Finance leases 5.9 years Weighted Average Discount Rate Operating leases 6.1 % Finance leases 6.0 % |
Maturity of Finance Leases | Maturities of lease obligations as of December 28, 2019 were as follows: (in millions of U.S. dollars) Operating Leases Finance Leases 2020 $ 53.9 $ 7.5 2021 42.9 6.4 2022 32.9 5.9 2023 27.7 5.6 2024 22.3 4.8 Thereafter 95.9 6.4 Total lease payments 275.6 36.6 Less imputed interest (66.1 ) (5.7 ) Present value of lease obligations $ 209.5 $ 30.9 |
Maturity of Operating Leases | Maturities of lease obligations as of December 28, 2019 were as follows: (in millions of U.S. dollars) Operating Leases Finance Leases 2020 $ 53.9 $ 7.5 2021 42.9 6.4 2022 32.9 5.9 2023 27.7 5.6 2024 22.3 4.8 Thereafter 95.9 6.4 Total lease payments 275.6 36.6 Less imputed interest (66.1 ) (5.7 ) Present value of lease obligations $ 209.5 $ 30.9 |
Prior To Adoption | As of December 29, 2018, the minimum annual payments under operating leases were as follows: (in millions of U.S. dollars) Operating Leases 2019 $ 51.6 2020 42.9 2021 36.2 2022 29.2 2023 23.4 Thereafter 106.9 |
Minimum Lease Payments for Capital Leases | In addition, as of December 29, 2018, the future minimum payments required under capital leases over their remaining terms are summarized below: (in millions of U.S. dollars) Capital Leases 2019 $ 1.9 2020 1.4 2021 0.7 2022 0.5 2023 0.4 Thereafter 0.1 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 Year Ended December 28, 2019 December 29, 2018 December 30, 2017 (in millions of U.S. dollars) Revenue, net $ — $ 111.2 $ 1,637.1 Cost of sales — 98.4 1,428.4 Operating income from discontinued operations — 2.0 49.9 Gain on sale of discontinued operations — 427.9 — Income (loss) from discontinued operations, before income taxes — 402.5 (20.5 ) Income tax (benefit) expense 1 (3.0 ) 47.9 (31.2 ) Net income from discontinued operations, net of income taxes 3.0 354.6 10.7 Less: Net income attributable to non-controlling interests — 0.6 8.5 Net income attributable to Cott Corporation – discontinued operations 2 $ 3.0 $ 354.0 $ 2.2 ______________________ 1 The Traditional Business Disposition resulted in a taxable gain on sale in the U.S., which utilized a significant portion of the existing U.S. net operating loss carryforwards. As a result, the Company is in a net deferred tax liability position in the U.S. and thus a tax benefit of approximately $35.1 million related to a release of the U.S. valuation allowance was recorded in 2018 and is offsetting the overall income tax expense related to discontinued operations. The Traditional Business Disposition resulted in a non-taxable gain on sale in the United Kingdom. No tax benefit resulted from the Traditional Business Disposition related to the taxable loss on sale in Canada due to the Company's valuation allowance position. During 2019, $3.0 million of tax benefit was recorded related to the finalization of the U.S. tax gain calculation. 2 Net income 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 for the year ended December 29, 2018 ( December 30, 2017 - $49.5 million ). |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Further disaggregation of net revenue to external customers by geographic area based on customer location is as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 United States $ 1,801.7 $ 1,786.9 $ 1,709.0 United Kingdom 172.0 173.2 160.0 Canada 67.4 64.1 61.8 All other countries 353.4 348.7 338.9 Total 1 $ 2,394.5 $ 2,372.9 $ 2,269.7 ______________________ 1 Prior-period amounts are not adjusted under the modified-retrospective method of adoption. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combination Transfer Consideration | The total consideration paid by the Company in the Crystal Rock Acquisition is summarized below: (in millions of U.S. dollars) Cash paid to sellers $ 20.7 Cash paid on behalf of sellers for sellers’ transaction expenses 0.8 Total consideration $ 21.5 The total consideration paid by DSS in the Mountain Valley Acquisition is summarized below: (in millions of U.S. dollars) Cash paid to sellers $ 62.5 Cash paid on behalf of sellers for sellers’ transaction expenses 1.8 Cash paid to retire outstanding debt on behalf of sellers 16.1 Working capital settlement (0.4 ) Total consideration $ 80.0 |
Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustment recorded and the final purchase price allocation of the assets acquired and liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.6 $ — $ 1.6 Accounts receivable 6.4 — 6.4 Inventory 2.2 — 2.2 Prepaid expenses and other current assets 2.2 — 2.2 Property, plant and equipment 8.9 — 8.9 Goodwill 13.7 0.5 14.2 Intangible assets 12.6 — 12.6 Other assets 0.1 — 0.1 Short-term borrowings (4.1 ) — (4.1 ) Current maturities of long-term debt (1.6 ) — (1.6 ) Accounts payable and accrued liabilities (6.7 ) — (6.7 ) Long-term debt (10.4 ) — (10.4 ) Deferred tax liabilities (2.5 ) (0.5 ) (3.0 ) Other long-term liabilities (0.9 ) — (0.9 ) Total $ 21.5 $ — $ 21.5 The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the final purchase price allocation of the assets acquired and liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 8.2 $ — $ 8.2 Accounts receivable 4.2 — 4.2 Inventory 2.3 — 2.3 Prepaid expenses and other assets 0.2 — 0.2 Property, plant and equipment 38.5 3.0 41.5 Goodwill 20.5 (4.5 ) 16.0 Intangible assets 25.8 2.6 28.4 Accounts payable and accrued liabilities (19.3 ) (1.5 ) (20.8 ) Total $ 80.4 (0.4 ) 80.0 |
Components of Identified Intangible Assets and Estimated Weighted Average Useful Lives | The following table sets forth the components of identified intangible assets associated with the Crystal Rock Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Weighted Average Estimated Useful Life Customer relationships $ 8.4 11 years Trademarks and trade names 4.2 Indefinite Total $ 12.6 The following table sets forth the components of identified intangible assets associated with the Mountain Valley Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Weighted Average Estimated Useful Life Customer relationships $ 10.0 20 years Trademarks and trade names 18.4 Indefinite Total $ 28.4 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) and Expenses | The following table summarizes other expense (income), net for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Foreign exchange losses (gains), net $ 0.9 $ (7.1 ) $ (1.7 ) Proceeds from legal settlements — (14.9 ) — Loss (gain) on sale of business 6.0 (6.0 ) — Transition services agreement service income (0.3 ) (2.6 ) — Pension curtailment gain — — (4.5 ) Gain on extinguishment of long-term debt — (7.1 ) (1.5 ) Other gains, net (3.8 ) (5.2 ) (0.3 ) Total $ 2.8 $ (42.9 ) $ (8.0 ) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Interest Expense | The following table summarizes interest expense, net for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Interest on long-term debt $ 69.5 $ 72.2 $ 83.1 Interest on short-term debt 4.8 — — Other interest expense, net 3.9 5.4 2.4 Total $ 78.2 $ 77.6 $ 85.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income From Continuing Operations Before Income Taxes | Income (loss) from continuing operations, before income taxes consisted of the following: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Canada $ (57.0 ) $ (26.1 ) $ (29.1 ) Outside Canada 66.4 50.2 (4.5 ) Income (loss) from continuing operations, before income taxes $ 9.4 $ 24.1 $ (33.6 ) |
Income Tax (Benefit) Expense | Income tax expense (benefit) consisted of the following: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Current Canada $ (0.2 ) — $ — Outside Canada 12.6 2.3 3.9 $ 12.4 $ 2.3 $ 3.9 Deferred Canada $ (1.0 ) $ (5.6 ) $ — Outside Canada (1.9 ) (1.5 ) (33.9 ) $ (2.9 ) $ (7.1 ) $ (33.9 ) Income tax expense (benefit) $ 9.5 $ (4.8 ) $ (30.0 ) |
Reconciliation of Income Taxes | The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Income tax expense (benefit) based on Canadian statutory rates $ 2.5 $ 6.4 $ (8.7 ) Foreign tax rate differential (11.1 ) (2.6 ) (1.3 ) Local taxes 2.1 0.5 (0.2 ) Nontaxable interest income (8.4 ) (9.8 ) (11.3 ) Impact of intercompany transactions and dividends 12.2 1.0 (9.2 ) Nontaxable capital gains — — (3.7 ) Income tax credits (0.5 ) — — Change in enacted tax rates (0.1 ) 3.4 (32.7 ) Change in valuation allowance 19.7 (4.2 ) 45.8 Change in uncertain tax positions 0.3 (3.4 ) (2.4 ) Equity compensation 1.5 1.5 1.1 Permanent differences 1.6 1.1 (0.6 ) Outside basis differences on discontinued operations — — (3.8 ) Adjustments to deferred taxes (10.4 ) 0.7 (3.4 ) Other items 0.1 0.6 0.4 Income tax expense (benefit) $ 9.5 $ (4.8 ) $ (30.0 ) |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Deferred tax assets Net operating loss carryforwards $ 134.2 $ 109.8 Capital loss carryforwards 12.0 13.1 Liabilities and reserves 28.2 25.0 Stock options 8.2 8.1 Inventories 4.0 3.8 Interest expense 11.3 12.2 Derivatives 1 — 2.8 Right of use lease obligations 49.1 — Other 1 — 3.9 247.0 178.7 Deferred tax liabilities Property, plant and equipment (76.3 ) (65.7 ) Intangible assets (125.1 ) (139.2 ) Right of use assets (47.6 ) — Derivatives (3.9 ) — Other (1.2 ) — (254.1 ) (204.9 ) Valuation allowance (120.3 ) (98.0 ) Net deferred tax liability $ (127.4 ) $ (124.2 ) ______________________ 1 Derivatives prior year amounts have been reclassified from other to conform to the current year presentation. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefits at beginning of year $ 15.5 $ 16.2 $ 28.6 Additions based on tax positions taken during a prior period 5.0 1.3 0.2 Reductions based on tax positions taken during a prior period (1.9 ) (0.1 ) (6.3 ) Settlement on tax positions taken during a prior period — — (1.0 ) Tax rate change — (0.1 ) (4.5 ) Lapse in statute of limitations (2.9 ) (4.3 ) (3.2 ) Additions based on tax positions taken during the current period 1.7 3.0 1.7 Cash payments (0.2 ) — — Foreign exchange 0.1 (0.5 ) 0.7 Unrecognized tax benefits at end of year $ 17.3 $ 15.5 $ 16.2 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Expense | The table below summarizes the share-based compensation expense for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 . Share-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Operations. As referenced below: (i) “Performance-based RSUs” represent restricted share units with performance-based vesting, (ii) “Time-based RSUs” represent restricted share units with time-based vesting, (iii) “Stock options” represent non-qualified stock options, (iv) “Director share awards” represent common shares issued in consideration of the annual board retainer fee to non-management members of our Board of Directors, and (v) the “ESPP” represents the Cott Corporation Employee Share Purchase Plan, under which common shares are issued to eligible employees at a discount through payroll deductions. For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 Stock options $ 3.3 $ 5.3 $ 5.5 Performance-based RSUs 5.7 7.0 12.0 Time-based RSUs 2.1 3.8 4.2 Director share awards 1.1 1.0 1.1 Employee Share Purchase Plan 0.2 0.3 0.1 Total 1 $ 12.4 $ 17.4 $ 22.9 ______________________ 1 Includes $0.1 million and $5.4 million of share-based compensation expense from our discontinued operations, which were included in net income (loss) from discontinued operations, net of income taxes on the Consolidated Statements of Operations for the years ended December 29, 2018 and December 30, 2017 , respectively. |
Unrecognized Share-based Compensation Expense | As of December 28, 2019 , the unrecognized share-based compensation expense and weighted average years over which we expect to recognize it as compensation expense were as follows: (in millions of U.S. dollars, except years) Unrecognized share-based compensation expense as of December 28, 2019 Weighted average years expected to recognize compensation Stock options $ 5.3 2.1 Performance-based RSUs 6.9 2.4 Time-based RSUs 3.9 2.1 Total $ 16.1 |
Schedule of Stock Option Assumptions | The grant date fair value of each option granted during 2019 , 2018 and 2017 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Risk-free interest rate 1.8 % 2.8 % 2.3 % Average expected life (years) 6.0 5.6 6.0 Expected volatility 29.0 % 28.8 % 29.2 % Expected dividend yield 1.8 % 1.6 % 1.4 % |
Stock Option Activity | The following table summarizes the activity for Company stock options: Stock Options (in thousands) Weighted average exercise price Weighted average contractual term (years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2016 4,474 $ 10.32 8.8 $ 5,623.3 Granted 734 17.50 Exercised (169 ) 9.21 1,092.9 Forfeited or expired (33 ) 10.28 Outstanding at December 30, 2017 5,006 $ 11.41 8.1 $ 26,952.3 Granted 1,182 14.67 Exercised (734 ) 10.04 4,408.1 Forfeited or expired (8 ) 10.64 Outstanding at December 29, 2018 5,446 $ 12.30 7.3 $ 11,993.0 Granted 1,138 13.68 Exercised (91 ) 10.47 389.1 Forfeited or expired — — Outstanding at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 Exercisable at December 28, 2019 4,336 $ 11.64 5.8 $ 11,018.6 Vested or expected to vest at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 |
Performance-based RSU and Time-Based RSU Activity | The Company also granted 216,057 Time-based RSUs, which vest over three years in equal annual installments on the first, second and third anniversaries of the date of grant and include a service condition. Number of Performance-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Number of Time-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Balance at December 31, 2016 3,063 $ 9.89 800 $ 11.10 Awarded 235 17.06 135 17.50 Awarded in connection with modification 64 11.32 — — Issued (320 ) 8.00 (409 ) 10.55 Forfeited (143 ) 15.18 (24 ) 12.28 Balance at December 30, 2017 2,899 $ 9.15 502 $ 13.14 Awarded 312 14.67 208 14.67 Awarded in connection with modification 246 9.21 — — Issued (686 ) 9.32 (269 ) 13.07 Forfeited (1,106 ) 6.55 (14 ) 13.24 Outstanding at December 29, 2018 1,665 $ 13.90 427 $ 14.23 Awarded 285 13.69 216 13.69 Awarded in connection with modification 190 11.22 — — Issued (441 ) 11.30 (239 ) 13.38 Forfeited (100 ) 12.33 (7 ) 14.89 Outstanding at December 28, 2019 1,599 $ 14.36 397 $ 14.43 Vested or expected to vest at December 28, 2019 1,594 $ 13.30 397 $ 14.43 |
Common Shares and Net Income _2
Common Shares and Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominators of Basic and Diluted Net (Loss) Income Per Common Share | Set forth below is a reconciliation of the numerator and denominator for the diluted net income (loss) per common share computations for the periods indicated: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Numerator (in millions): Net income (loss) attributable to Cott Corporation Continuing operations $ (0.1 ) $ 28.9 $ (3.6 ) Discontinued operations 3.0 354.0 2.2 Net income (loss) 2.9 382.9 (1.4 ) Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 135,224 139,097 139,078 Basic Earnings Per Share: Continuing operations — 0.21 (0.03 ) Discontinued operations 0.02 2.54 0.02 Net income (loss) 0.02 2.75 (0.01 ) Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 135,224 139,097 139,078 Dilutive effect of Stock Options — 1,199 — Dilutive effect of Performance based RSUs — 900 — Dilutive effect of Time-based RSUs — 240 — Weighted average common shares outstanding - diluted 135,224 141,436 139,078 Diluted Earnings Per Share: Continued operations — 0.21 (0.03 ) Discontinued operations 0.02 2.50 0.02 Net income (loss) 0.02 2.71 (0.01 ) |
Summary of the Anti-dilutive Securities Excluded from the Computation of Diluted Net Income (Loss) Per Common Share | The following table summarizes anti-dilutive securities excluded from the computation of diluted net income (loss) per common share for the periods indicated: For the Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Stock options 6,493 2,095 5,006 Performance-based RSUs 1 1,594 564 2,235 Time-based RSUs 2 397 148 493 ______________________ 1 Performance-based RSUs represent the number of shares expected to be issued based on the estimated achievement of pre-tax income for these awards. 2 Time-based RSUs represent the number of shares expected to be issued based on known employee retention information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Operating Segment | December 28, 2019 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,788.2 $ 605.0 $ 7.2 $ (5.9 ) $ 2,394.5 Depreciation and amortization 168.3 24.2 0.3 — 192.8 Operating income (loss) 115.8 15.4 (40.8 ) — 90.4 Property, plant and equipment, net 557.0 89.7 1.1 — 647.8 Goodwill 1,047.5 128.2 — — 1,175.7 Intangible assets, net 596.0 104.4 1.0 — 701.4 Total segment assets 2 2,816.1 526.5 48.3 — 3,390.9 Additions to property, plant and equipment 100.9 13.3 0.4 — 114.6 ______________________ 1 Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.9 million for the year ended December 28, 2019 . 2 Excludes intersegment receivables, investments and notes receivable. December 29, 2018 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,710.3 $ 587.6 $ 80.7 $ (5.7 ) $ 2,372.9 Depreciation and amortization 170.7 22.9 1.0 — 194.6 Operating income (loss) 89.9 16.1 (47.2 ) — 58.8 Property, plant and equipment, net 530.7 88.3 5.7 — 624.7 Goodwill 1,021.6 117.8 4.5 — 1,143.9 Intangible assets, net 608.3 103.2 27.7 — 739.2 Total segment assets 2 2,578.3 464.8 132.4 — 3,175.5 Additions to property, plant and equipment 112.3 16.0 2.5 — 130.8 ______________________ 1 Intersegment revenue between the Coffee, Tea and Extract Solutions and the Route Based Services reporting segments was $5.7 million for the year ended December 29, 2018 . All Other includes $4.2 million of related party concentrate sales to discontinued operations for the year ended December 29, 2018 . 2 Excludes intersegment receivables, investments and notes receivable. December 30, 2017 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net 1 $ 1,599.6 $ 602.2 $ 67.9 $ — 2,269.7 Depreciation and amortization 164.9 22.7 1.0 — 188.6 Operating income (loss) 2 79.7 15.9 (51.7 ) — 43.9 Additions to property, plant and equipment 100.8 19.0 1.5 — 121.3 ______________________ 1 All Other includes $41.1 million of related party concentrate sales to discontinued operations for the year ended December 30, 2017 . 2 Operating income in our Route Based Services reporting segment for the year ended December 30, 2017 decreased $5.0 million |
Revenues by Geographic Area | Revenues are attributed to countries based on the location of the customer. Revenues generated from sales to external customers by geographic area were as follows: For the Year Ended (in millions of U.S. dollars) December 28, 2019 December 29, 2018 December 30, 2017 United States $ 1,801.7 $ 1,786.9 $ 1,709.0 United Kingdom 172.0 173.2 160.0 Canada 67.4 64.1 61.8 All other countries 353.4 348.7 338.9 Total $ 2,394.5 $ 2,372.9 $ 2,269.7 |
Revenues by Channel Reporting Segment | Revenues by channel by reporting segment were as follows: For the Year Ended December 28, 2019 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery $ 1,136.0 $ — $ — $ — $ 1,136.0 Coffee and tea services 184.0 483.6 — (5.9 ) 661.7 Retail 297.6 — — — 297.6 Other 170.6 121.4 7.2 — 299.2 Total $ 1,788.2 $ 605.0 $ 7.2 $ (5.9 ) $ 2,394.5 For the Year Ended December 29, 2018 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery 1 $ 1,078.5 $ — $ — $ — $ 1,078.5 Coffee and tea services 192.8 461.9 — (5.7 ) 649.0 Retail 1 286.0 — — — 286.0 Other 1 153.0 125.7 80.7 — 359.4 Total $ 1,710.3 $ 587.6 $ 80.7 $ (5.7 ) $ 2,372.9 ______________________ 1 Revenue by channel of our Route Based Services reporting segment for the year ended December 29, 2018 had $83.7 million of revenues reclassified from “other” and “retail” to “home and office bottled water delivery” as these activities are associated with the “home and office bottled water delivery” channel. In addition, we reclassified $18.0 million out of the “retail" channel and into the “other” channel in order to better align the activities of a recent acquisition with those of our U.S. Route Based Services business. For the Year Ended December 30, 2017 (in millions of U.S. dollars) Route Based Services Coffee, Tea and Extract Solutions All Other Eliminations Total Revenue, net Home and office bottled water delivery 1 $ 990.6 $ — $ — $ — $ 990.6 Coffee and tea services 186.8 501.7 — — 688.5 Retail 1 282.2 — — — 282.2 Other 1 140.0 100.5 67.9 — 308.4 Total $ 1,599.6 $ 602.2 $ 67.9 $ — $ 2,269.7 |
Property, Plant and Equipment by Geographic Area | Property, plant and equipment, net by geographic area as of December 28, 2019 and December 29, 2018 were as follows: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 United States $ 505.4 $ 491.1 United Kingdom 20.9 17.8 Canada 18.6 19.8 All other countries 1 102.9 96.0 Total $ 647.8 $ 624.7 ______________________ 1 No individual country is greater than 10% of total property, plant and equipment, net as of December 28, 2019 and December 29, 2018 . |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | The following table summarizes accounts receivable, net as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Trade receivables $ 268.5 $ 293.0 Allowance for doubtful accounts (9.1 ) (9.6 ) Other 19.9 24.9 Total $ 279.3 $ 308.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes inventories as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Raw materials $ 59.5 $ 68.5 Finished goods 36.7 36.3 Resale items 22.8 21.5 Other 3.5 3.3 Total $ 122.5 $ 129.6 |
Property, Plant & Equipment, _2
Property, Plant & Equipment, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes property, plant and equipment, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Estimated Useful Life in Years Cost Accumulated Depreciation Net Cost Accumulated Depreciation Net Land n/a $ 99.3 $ — $ 99.3 $ 98.5 $ — $ 98.5 Buildings 10-40 115.7 31.3 84.4 111.9 22.9 89.0 Machinery and equipment 5-15 206.6 85.6 121.0 183.3 67.0 116.3 Plates, films and molds 1-10 1.5 0.6 0.9 1.4 0.4 1.0 Vehicles and transportation equipment 3-15 91.6 60.4 31.2 88.1 50.2 37.9 Leasehold improvements 1 20.0 10.7 9.3 16.7 6.9 9.8 IT Systems 3-7 19.2 11.3 7.9 16.2 8.6 7.6 Furniture and fixtures 3-10 13.6 9.5 4.1 9.3 3.2 6.1 Customer equipment 2 3-7 377.5 164.5 213.0 330.4 118.2 212.2 Returnable bottles 3 3-5 81.9 37.1 44.8 59.7 19.1 40.6 Finance leases 4 39.9 8.0 31.9 6.7 1.0 5.7 Total $ 1,066.8 $ 419.0 $ 647.8 $ 922.2 $ 297.5 $ 624.7 ______________________ 1 Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life. 2 Customer equipment for the Route Based Services reporting segment consists of coolers, brewers, refrigerators, water purification devices and storage racks held on site at customer locations. 3 Returnable bottles are those bottles on site at Route Based Services customer locations. 4 Our recorded assets under finance leases relate to machinery and equipment, customer equipment, IT systems, customer equipment and vehicles and transportation equipment. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table summarizes intangible assets, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangibles Not subject to amortization Rights 1 $ — — $ — $ 24.5 — $ 24.5 Trademarks 287.1 — 287.1 282.3 — 282.3 Total intangibles not subject to amortization $ 287.1 — $ 287.1 $ 306.8 — $ 306.8 Subject to amortization Customer relationships 654.1 286.5 367.6 603.1 211.1 392.0 Patents 15.2 4.0 11.2 15.2 2.5 12.7 Software 56.9 31.3 25.6 38.0 20.5 17.5 Other 17.9 8.0 9.9 16.6 6.4 10.2 Total intangibles subject to amortization $ 744.1 $ 329.8 $ 414.3 $ 672.9 $ 240.5 $ 432.4 Total intangible assets $ 1,031.2 $ 329.8 $ 701.4 $ 979.7 $ 240.5 $ 739.2 ______________________ 1 Relates to the 2001 acquisition of intellectual property from Royal Crown Company, Inc. and includes the right to manufacture concentrates, with all related inventions, processes, technologies, technical and manufacturing information, know-how and the use of the Royal Crown brand outside of North America and Mexico at our Cott Beverages LLC business. The Company sold Cott Beverages LLC to Refresco during the first quarter of 2019. |
Estimated Amortization Expense for Intangible Assets | The estimated amortization expense for intangible assets subject to amortization over the next five years is: (in millions of U.S. dollars) 2020 $ 69.7 2021 58.7 2022 47.7 2023 37.4 2024 33.4 Thereafter 167.4 Total $ 414.3 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table summarizes accounts payable and accrued liabilities as of December 28, 2019 and December 29, 2018 : (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Trade payables $ 200.4 $ 206.1 Accrued compensation 58.8 46.7 Accrued sales incentives 10.0 10.5 Accrued interest 23.9 24.2 Payroll, sales and other taxes 17.4 21.7 Accrued deposits 77.1 70.6 Derivative liability — 10.9 Self-insurance liabilities 18.3 16.9 Other accrued liabilities 60.2 61.4 Total $ 466.1 $ 469.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | Our total debt as of December 28, 2019 and December 29, 2018 was as follows: December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Principal Unamortized Debt Costs Net Principal Unamortized Debt Costs Net 5.500% senior notes due in 2024 499.3 5.8 493.5 513.1 7.2 505.9 5.500% senior notes due in 2025 750.0 8.2 741.8 750.0 9.8 740.2 ABL facility 92.0 — 92.0 81.1 — 81.1 Short-term borrowings 0.4 — 0.4 7.9 — 7.9 Finance leases 30.9 — 30.9 5.0 — 5.0 Other debt financing 1.4 — 1.4 2.1 — 2.1 Total debt 1,374.0 14.0 1,360.0 1,359.2 17.0 1,342.2 Less: Short-term borrowings and current debt: ABL facility 92.0 — 92.0 81.1 — 81.1 Short-term borrowings 0.4 — 0.4 7.9 — 7.9 Finance leases - current maturities 6.3 — 6.3 1.9 — 1.9 Other debt financing 1.1 — 1.1 1.1 — 1.1 Total current debt 99.8 — 99.8 92.0 — 92.0 Total long-term debt $ 1,274.2 $ 14.0 $ 1,260.2 $ 1,267.2 $ 17.0 $ 1,250.2 |
Long term debt payments | The long-term debt payments (which include current maturities of long-term debt) required in each of the next five years and thereafter are as follows: (in millions of U.S. dollars) Long-Term Debt (including current) 2020 $ 100.0 2021 5.6 2022 5.0 2023 4.8 2024 503.4 Thereafter 755.2 $ 1,374.0 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Change in Benefit Obligations, Change in Plan Assets and Unfunded Status of DB Plans | The following table summarizes the change in the projected benefit obligation, change in plan assets and unfunded status of the DB plans as of December 28, 2019 and December 29, 2018 : December 28, 2019 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 7.9 $ 10.8 $ 18.7 Plan amendment — 0.4 0.4 Service cost — 0.8 0.8 Interest cost 0.3 0.2 0.5 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.5 ) (1.9 ) Actuarial losses 0.8 1.5 2.3 Translation losses — 0.6 0.6 Projected benefit obligation at end of year $ 8.6 $ 13.1 $ 21.7 Change in Plan Assets Plan assets beginning of year $ 6.9 $ 5.8 $ 12.7 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.0 ) (1.4 ) Settlement gains — 0.2 0.2 Actual return on plan assets 1.3 (0.1 ) 1.2 Translation gains — 0.2 0.2 Fair value at end of year $ 8.1 $ 5.9 $ 14.0 Funded Status of Plan Projected benefit obligation $ (8.6 ) $ (13.1 ) $ (21.7 ) Fair value of plan assets 8.1 5.9 14.0 Unfunded status $ (0.5 ) $ (7.2 ) $ (7.7 ) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 8.4 $ 12.8 $ 21.2 Plan amendment — (0.1 ) (0.1 ) Service cost — 0.8 0.8 Interest cost 0.3 0.1 0.4 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (1.4 ) (1.8 ) Actuarial gains (0.4 ) (0.4 ) (0.8 ) Settlement gains — (0.8 ) (0.8 ) Translation gains — (0.5 ) (0.5 ) Projected benefit obligation at end of year $ 7.9 $ 10.8 $ 18.7 Change in Plan Assets Plan assets beginning of year $ 7.1 $ 6.6 $ 13.7 Employer contributions 0.3 0.4 0.7 Plan participant contributions — 0.3 0.3 Benefit payments (0.4 ) (0.8 ) (1.2 ) Settlement losses — (0.5 ) (0.5 ) Actual return on plan assets (0.1 ) — (0.1 ) Translation losses — (0.2 ) (0.2 ) Fair value at end of year $ 6.9 $ 5.8 $ 12.7 Funded Status of Plan Projected benefit obligation $ (7.9 ) $ (10.8 ) $ (18.7 ) Fair value of plan assets 6.9 5.8 12.7 Unfunded status $ (1.0 ) $ (5.0 ) $ (6.0 ) |
Schedule of Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows: December 28, 2019 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.2 0.5 Expected return on plan assets (0.5 ) — (0.5 ) Net periodic pension (benefit) cost $ (0.2 ) $ 1.0 $ 0.8 December 29, 2018 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5 ) — (0.5 ) Recognized net gain due to settlement — (0.3 ) (0.3 ) Net periodic pension (benefit) cost $ (0.2 ) $ 0.6 $ 0.4 December 30, 2017 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 1.5 $ 1.5 Interest cost (0.3 ) 0.3 — Expected return on plan assets 0.4 (0.3 ) 0.1 Curtailment gain — (4.5 ) (4.5 ) Net periodic pension cost (benefit) $ 0.1 $ (3.0 ) $ (2.9 ) |
Schedule of Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax which have Not yet been Recognized in Net Periodic Benefit Cost | Amounts included in accumulated other comprehensive loss, net of tax, at year-end which have not yet been recognized in net periodic benefit cost were as follows: December 28, 2019 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.1 ) $ (0.9 ) $ (1.0 ) Total accumulated other comprehensive loss $ (0.1 ) $ (0.9 ) $ (1.0 ) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial (loss) income $ (0.1 ) $ 0.4 $ 0.3 Total accumulated other comprehensive (loss) income $ (0.1 ) $ 0.4 $ 0.3 December 30, 2017 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.6 ) $ (16.2 ) $ (16.8 ) Total accumulated other comprehensive loss $ (0.6 ) $ (16.2 ) $ (16.8 ) |
Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | The following table summarizes the weighted average actuarial assumptions used to determine the projected benefit obligation: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. Plans Discount rate 3.0 % 4.0 % 3.5 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 7.0 % International Plans Discount rate 1.1 % 2.4 % 2.0 % Expected long-term rate of return on plan assets 1.3 % 2.7 % 3.1 % Rate of compensation increase 2.7 % 1.4 % 1.4 % CPI Inflation factor 0.3 % 0.3 % 0.3 % The following table summarizes the weighted average actuarial assumptions used to determine net periodic benefit cost: For the Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. Plans Discount rate 4.0 % 3.5 % 3.8 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 7.0 % International Plans Discount rate 1.1 % 2.4 % 2.0 % Expected long-term rate of return on plan assets 1.3 % 2.7 % 3.1 % Inflation factor 0.3 % 0.3 % 0.3 % |
Schedule of Pension Plan Weighted-Average Asset Allocations by Asset Category | Our DB plans weighted-average asset allocations by asset category were as follows: December 28, 2019 December 29, 2018 U.S. Plans Equity securities 46.3 % 42.8 % Fixed income investments 53.7 % 57.2 % International Plans Equity securities 56.8 % 58.6 % Fixed income investments 33.2 % 31.0 % Real estate 10.0 % 10.4 % |
Schedule of Benefit Payments Expected to be Paid | The following benefit payments are expected to be paid in the periods indicated below: (in millions of U.S. dollars) U.S. International Total Expected benefit payments FY 2020 $ 0.4 $ 1.2 $ 1.6 FY 2021 0.4 0.6 1.0 FY 2022 0.5 0.5 1.0 FY 2023 0.5 0.4 0.9 FY 2024 0.5 0.6 1.1 FY 2025 through FY 2029 2.6 9.7 12.3 |
Schedule of Fair Values of Company's International Plan Assets | The fair values of the Company’s International plan assets at December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.7 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.3 $ 2.6 $ — December 29, 2018 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.9 — — Insurance contract — 1.8 — Real estate: Real estate — 0.6 — Total $ 3.5 $ 2.4 $ — |
Consolidated Accumulated Othe_2
Consolidated Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Changes in Consolidated Accumulated Other Comprehensive (Loss) Income by Component | Changes in consolidated accumulated other comprehensive income (loss) (“AOCI”) by component for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 were as follows: (in millions of U.S. dollars) 1 Gains and Losses on Derivative Instruments Pension Benefit Plan Items Currency Translation Adjustment Items Total Balance December 31, 2016 $ (0.1 ) $ (14.4 ) $ (103.4 ) $ (117.9 ) OCI before reclassifications — (2.7 ) 27.2 24.5 Amounts reclassified from AOCI (1.3 ) 0.3 — (1.0 ) Net current-period OCI (1.3 ) (2.4 ) 27.2 23.5 Balance December 30, 2017 $ (1.4 ) $ (16.8 ) $ (76.2 ) $ (94.4 ) OCI before reclassifications (14.5 ) 0.2 (25.5 ) (39.8 ) Amounts reclassified from AOCI 6.2 16.9 9.4 32.5 Net current-period OCI (8.3 ) 17.1 (16.1 ) (7.3 ) Balance December 29, 2018 $ (9.7 ) $ 0.3 $ (92.3 ) $ (101.7 ) OCI before reclassifications 12.9 (1.3 ) 13.6 25.2 Amounts reclassified from AOCI 8.0 — — 8.0 Net current-period OCI 20.9 (1.3 ) 13.6 33.2 Balance December 28, 2019 $ 11.2 $ (1.0 ) $ (78.7 ) $ (68.5 ) ______________________ 1 All amounts are net of tax. |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income to Total Net Income (Loss) | The following table summarizes the amounts reclassified from AOCI to total net income for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 : (in millions of U.S. dollars) For the Year Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 December 28, 2019 December 29, 2018 December 30, 2017 Gains and losses on derivative instruments Foreign currency and commodity hedges $ (8.0 ) $ (6.2 ) $ 1.3 Cost of sales $ (8.0 ) $ (6.2 ) $ 1.3 Total before taxes — — — Tax (expense) or benefit $ (8.0 ) $ (6.2 ) $ 1.3 Net of tax Amortization of pension benefit plan items Recognized net actuarial loss 2 $ — $ (16.9 ) $ — Gain on sale of discontinued operations Actuarial (losses)/gains 3 — — (0.3 ) — (16.9 ) (0.3 ) Total before taxes — — — Tax (expense) or benefit $ — $ (16.9 ) $ (0.3 ) Net of tax Foreign currency translation adjustments — (9.4 ) — Gain on sale of discontinued operations Total reclassifications for the period $ (8.0 ) $ (32.5 ) $ 1.0 Net of tax ______________________ 1 Amounts in parenthesis indicate debits. 2 Net of $3.6 million of associated tax impact that resulted in an increase to the gain on the sale of discontinued operations for the year ended December 29, 2018. 3 This AOCI component is included in the computation of net periodic pension cost. |
Hedging Transactions and Deri_2
Hedging Transactions and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Reconciliation of Company's Derivatives by Contract Type | Set forth below is a reconciliation of the Company’s derivatives by contract type for the periods indicated: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Derivative Contract Assets Liabilities Assets Liabilities Coffee futures 1 $ 8.6 $ — $ — $ (10.9 ) $ 8.6 $ — $ — $ (10.9 ) ______________________ 1 The fair value of the coffee futures excludes amounts in the related margin accounts. We are required to maintain margin accounts in accordance with futures market and broker regulations. As of December 28, 2019 and December 29, 2018 , the aggregate margin account balances were $6.4 million and $12.9 million , respectively and are included in cash and cash equivalents on the Consolidated Balance Sheets. |
Summary of Fair Value of Coffee Futures Assets and Liabilities | The fair value of the coffee futures assets and liabilities which are shown on a net basis are reconciled in the table below: (in millions of U.S. dollars) December 28, 2019 December 29, 2018 Coffee futures assets $ 12.1 $ 0.1 Coffee futures liabilities (3.5 ) (11.0 ) Net asset (liability) $ 8.6 $ (10.9 ) |
Summary of Income and Expense Line Items Presented in Consolidated Statements of Operations | The location and amount of gains or losses recognized in the Consolidated Statements of Operations for cash flow hedging relationships, presented on a pre-tax basis, for the years ended December 28, 2019 and December 29, 2018 , respectively, is shown in the table below: For the Year Ended December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Cost of Sales Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,166.7 $ 1,197.3 Loss on cash flow hedging relationship Coffee futures: Loss reclassified from AOCI into income/expense $ 8.0 $ 6.2 |
(Tables)
(Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Values of Outstanding Debt | The carrying values and estimated fair values of our significant outstanding debt as of December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 December 29, 2018 (in millions of U.S. dollars) Carrying Value Fair Value Carrying Value Fair Value 5.500% senior notes due in 2024 1, 2 493.5 514.5 505.9 521.7 5.500% senior notes due in 2025 1, 2 741.8 775.3 740.2 695.8 Total $ 1,235.3 $ 1,289.8 $ 1,246.1 $ 1,217.5 ______________________ 1 The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 2 financial instruments. 2 Carrying value of our significant outstanding debt is net of unamortized debt issuance costs as of December 28, 2019 and December 29, 2018 (see Note 17 to the Consolidated Financial Statements). |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | Year Ended December 28, 2019 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 574.1 $ 604.1 $ 616.1 $ 600.2 $ 2,394.5 Cost of sales 291.2 291.0 289.9 294.6 1,166.7 Gross profit 282.9 313.1 326.2 305.6 1,227.8 Selling, general and administrative expenses 272.1 284.2 280.8 275.9 1,113.0 Loss on disposal of property plant and equipment, net 1.9 1.6 1.1 2.9 7.5 Acquisition and integration expenses 4.8 2.7 2.7 6.7 16.9 Operating income 4.1 24.6 41.6 20.1 90.4 Net (loss) income from continuing operations (19.7 ) 4.4 8.6 6.6 (0.1 ) Net income from discontinued operations, net of income taxes — — 1.5 1.5 3.0 Net (loss) income attributable to Cott Corporation $ (19.7 ) $ 4.4 $ 10.1 $ 8.1 $ 2.9 Per share data: Net (loss) income per common share attributable to Cott Corporation Basic: Continuing operations $ (0.14 ) $ 0.03 $ 0.06 $ 0.05 $ — Discontinued operations $ — $ — $ 0.01 $ 0.01 $ 0.02 Net (loss) income $ (0.14 ) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Diluted: Continuing operations $ (0.14 ) $ 0.03 $ 0.06 $ 0.05 $ — Discontinued operations $ — $ — $ 0.01 $ 0.01 $ 0.02 Net (loss) income $ (0.14 ) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Year Ended December 29, 2018 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 560.8 $ 603.6 $ 609.3 $ 599.2 $ 2,372.9 Cost of sales 287.3 302.2 298.8 309.0 1,197.3 Gross profit 273.5 301.4 310.5 290.2 1,175.6 Selling, general and administrative expenses 261.1 275.2 279.9 275.9 1,092.1 Loss on disposal of property, plant and equipment, net 1.3 1.3 1.2 5.6 9.4 Acquisition and integration expenses 5.0 4.2 1.6 4.5 15.3 Operating income 6.1 20.7 27.8 4.2 58.8 Net income from continuing operations 4.6 12.2 8.5 3.6 28.9 Net income (loss) from discontinued operations, net of income taxes 357.4 (1.4 ) 1.5 (2.9 ) 354.6 Less: Net income attributable to non-controlling interests - discontinued operations 0.6 — — — 0.6 Net income attributable to Cott Corporation $ 361.4 $ 10.8 $ 10.0 $ 0.7 $ 382.9 Per share data: Net income per common share attributable to Cott Corporation Basic: Continuing operations $ 0.03 $ 0.09 $ 0.06 $ 0.03 $ 0.21 Discontinued operations $ 2.55 $ (0.01 ) $ 0.01 $ (0.02 ) $ 2.54 Net income $ 2.58 $ 0.08 $ 0.07 $ 0.01 $ 2.75 Diluted: Continuing operations $ 0.03 $ 0.09 $ 0.06 $ 0.03 $ 0.21 Discontinued operations $ 2.51 $ (0.01 ) $ 0.01 $ (0.02 ) $ 2.50 Net income $ 2.54 $ 0.08 $ 0.07 $ 0.01 $ 2.71 |
Description of Business - Addit
Description of Business - Additional Information (Details) Customer in Millions | 12 Months Ended |
Dec. 28, 2019Customer | |
Direct-to-Consumer Products | Minimum | |
Business And Basis Of Presentation [Line Items] | |
Number of customers | 2.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | Dec. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($)Segment | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)Segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Oct. 15, 2018USD ($) | Mar. 21, 2018USD ($) | Jan. 30, 2018USD ($) | Jul. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||||||
Selling, general and administrative expenses | $ 275.9 | $ 280.8 | $ 284.2 | $ 272.1 | $ 275.9 | $ 279.9 | $ 275.2 | $ 261.1 | $ 1,113 | $ 1,092.1 | $ 1,043.2 | ||||||
Share Based compensation award vesting period | 3 years | ||||||||||||||||
Number of operating segments | Segment | 2 | ||||||||||||||||
Number of reporting segments | Segment | 3 | 2 | |||||||||||||||
Goodwill | 1,175.7 | 1,143.9 | $ 1,175.7 | 1,143.9 | 1,104.7 | ||||||||||||
Percentage of weight to income approach | 50.00% | ||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 414.3 | 432.4 | $ 414.3 | 432.4 | |||||||||||||
Acquired rights | 287.1 | 306.8 | 287.1 | 306.8 | |||||||||||||
Loss on disposal of property, plant and equipment, net | 2.9 | $ 1.1 | $ 1.6 | $ 1.9 | 5.6 | $ 1.2 | $ 1.3 | $ 1.3 | 7.5 | 9.4 | 10.2 | ||||||
Present value of lease obligations | $ 234.3 | 209.5 | 209.5 | ||||||||||||||
Operating lease right-of-use assets | 228 | 203.1 | 203.1 | ||||||||||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Aggregate deal consideration | $ 1,250 | $ 1,250 | |||||||||||||||
Gain (loss) on disposal | $ 7.9 | ||||||||||||||||
Customer relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 367.6 | 392 | 367.6 | 392 | |||||||||||||
Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 25.6 | 17.5 | 25.6 | 17.5 | |||||||||||||
Patents | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 11.2 | 12.7 | 11.2 | 12.7 | |||||||||||||
Route Based Services | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Advertising costs | 23.8 | 24 | 21.6 | ||||||||||||||
Goodwill | 1,047.5 | 1,021.6 | 1,047.5 | 1,021.6 | 982.4 | ||||||||||||
DSSAqua | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 657 | 657 | |||||||||||||||
Aimia Foods Holdings Limited | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 53.4 | 53.4 | |||||||||||||||
S&D | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 128.2 | 128.2 | |||||||||||||||
Mountain Valley | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | $ 16 | $ 16 | |||||||||||||||
DSS Trademarks | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of fair value exceeding carrying value of reporting units | 42.00% | 42.00% | |||||||||||||||
Eden Acquisition | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Weighted-average terminal growth rate | 1.50% | ||||||||||||||||
Discount rate | 8.50% | ||||||||||||||||
Eden | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | $ 321.1 | $ 321.1 | |||||||||||||||
Percentage of fair value exceeding carrying value of reporting units | 4.20% | 4.20% | |||||||||||||||
Mountain Valley | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | $ 16 | $ 16 | $ 20.5 | ||||||||||||||
Intangible assets | 28.4 | 28.4 | 25.8 | ||||||||||||||
Crystal rock acquisition | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 14.2 | 14.2 | $ 13.7 | ||||||||||||||
Intangible assets | $ 12.6 | 12.6 | 12.6 | ||||||||||||||
Shipping and Handling | Route Based Services and Coffee, Tea and Extract Solutions | Selling, General and Administrative Expenses | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Selling, general and administrative expenses | $ 492.9 | 473.8 | $ 440.8 | ||||||||||||||
Estimate of Fair Value Measurement | Valuation, Income Approach | Mountain Valley | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets | $ 28.4 | ||||||||||||||||
Estimate of Fair Value Measurement | Valuation, Income Approach | Mountain Valley | Customer relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets | 10 | 10 | |||||||||||||||
Estimate of Fair Value Measurement | Valuation, Income Approach | Crystal rock acquisition | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets | $ 12.6 | ||||||||||||||||
Estimate of Fair Value Measurement | Valuation, Income Approach | Crystal rock acquisition | Customer relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets | $ 8.4 | $ 8.4 | |||||||||||||||
Retained Earnings (Accumulated deficit) | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect adjustment | $ 10.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 1,143.9 | $ 1,104.7 |
Goodwill acquired during the year | 45.7 | 63.3 |
Adjustments | (3.1) | (3) |
Divestitures | (4.5) | |
Foreign exchange | (6.3) | (21.1) |
Balance at end of year | 1,175.7 | 1,143.9 |
Route Based Services | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 1,021.6 | 982.4 |
Goodwill acquired during the year | 35.3 | 63.3 |
Adjustments | (3.1) | (3) |
Divestitures | 0 | |
Foreign exchange | (6.3) | (21.1) |
Balance at end of year | 1,047.5 | 1,021.6 |
Coffee, Tea and Extract Solutions | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 117.8 | 117.8 |
Goodwill acquired during the year | 10.4 | 0 |
Adjustments | 0 | 0 |
Divestitures | 0 | |
Foreign exchange | 0 | 0 |
Balance at end of year | 128.2 | 117.8 |
All Other | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 4.5 | 4.5 |
Goodwill acquired during the year | 0 | 0 |
Adjustments | 0 | 0 |
Divestitures | (4.5) | |
Foreign exchange | 0 | 0 |
Balance at end of year | $ 0 | $ 4.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Remaining term of contract ( in years ) | 7 years 9 months 18 days | ||
Option to terminate ( in years ) | 1 year | ||
Operating leases, rent expense | $ 63.2 | $ 54.3 | |
Sublease income | $ 0.8 | 0.9 | |
Capital leases | 6.7 | ||
Capital leases, accumulated depreciation | $ 1 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining term of contract ( in years ) | 1 year | ||
Renewal term ( in years ) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining term of contract ( in years ) | 22 years | ||
Renewal term ( in years ) | 10 years |
Leases - Lease expense (Details
Leases - Lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Leases [Abstract] | ||
Operating lease cost | $ 54.7 | |
Short-term lease cost | 5 | |
Amortization of right-of-use assets | 5 | |
Interest on lease liabilities | 1.3 | |
Total finance lease cost | 6.3 | |
Sublease income | 0.8 | $ 0.9 |
Supplemental Cash Flow Information For Lessee | ||
Operating cash flows from operating leases | 54 | |
Operating cash flows from finance leases | 1.2 | |
Financing cash flows from finance leases | 4.4 | |
Operating leases | 28.9 | |
Finance leases | $ 30.6 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 203.1 | $ 228 |
Current operating lease obligations | 41.7 | |
Operating lease obligations | 167.8 | |
Total operating lease obligations | 209.5 | $ 234.3 |
Property, plant and equipment, net | 31.9 | |
Current maturities of long-term debt | 6.3 | |
Long-term debt | 24.6 | |
Total finance lease obligations | $ 30.9 | |
Weighted average remaining lease term, operating leases | 7 years 9 months 18 days | |
Weighted average remaining lease term, finance leases | 5 years 10 months 24 days | |
Weighted average discount rate, operating | 6.10% | |
Weighted average discount rate, finance | 6.00% |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 30, 2018 |
Operating Leases | ||
2020 | $ 53.9 | |
2021 | 42.9 | |
2022 | 32.9 | |
2023 | 27.7 | |
2024 | 22.3 | |
Thereafter | 95.9 | |
Total lease payments | 275.6 | |
Less imputed interest | (66.1) | |
Present value of lease obligations | 209.5 | $ 234.3 |
Finance Leases | ||
2020 | 7.5 | |
2021 | 6.4 | |
2022 | 5.9 | |
2023 | 5.6 | |
2024 | 4.8 | |
Thereafter | 6.4 | |
Total lease payments | 36.6 | |
Less imputed interest | (5.7) | |
Present value of lease obligations | $ 30.9 |
Leases - Prior To Adoption (Det
Leases - Prior To Adoption (Details) $ in Millions | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 51.6 |
2020 | 42.9 |
2021 | 36.2 |
2022 | 29.2 |
2023 | 23.4 |
Thereafter | $ 106.9 |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments for Capital Leases (Details) $ in Millions | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1.9 |
2020 | 1.4 |
2021 | 0.7 |
2022 | 0.5 |
2023 | 0.4 |
Thereafter | $ 0.1 |
Discontinued Operations - Narr
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Jan. 30, 2018 | Dec. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jul. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Borrowings under ABL | $ 75.1 | $ 98.4 | $ 0 | |||
Payments under ABL | 64.2 | 17.4 | 0 | |||
Abl Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Borrowings under ABL | 262.4 | 3,004.1 | ||||
Payments under ABL | 482.8 | $ 2,990.7 | ||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate deal consideration | $ 1,250 | $ 1,250 | ||||
Gain (loss) on disposal | $ 7.9 | |||||
Escrow | 12.4 | $ 12.5 | ||||
Copack manufacturing agreement term (in months) | 36 months | |||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | Maximum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transition services agreement term (in months) | 18 months | |||||
Transition services agreement extension term (in days) | 180 days | |||||
Refresco Group NV | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount paid | 0.7 | |||||
Refresco Group NV | Beverage Services | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount paid | 0.7 | |||||
Amount received | $ 7.2 |
Discontinued Operations - Summ
Discontinued Operations - Summary of Discontinued Operations in Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Operations | |||||||||||
Net income from discontinued operations, net of income taxes | $ 1.5 | $ 1.5 | $ 0 | $ 0 | $ (2.9) | $ 1.5 | $ (1.4) | $ 357.4 | $ 3 | $ 354.6 | $ 10.7 |
Net income (loss) attributable to Cott Corporation – discontinued operations | 3 | 354 | 2.2 | ||||||||
Income tax expense (benefit) | 9.5 | (4.8) | (30) | ||||||||
Interest on short-term debt | 4.8 | 0 | 0 | ||||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | |||||||||||
Statement of Operations | |||||||||||
Revenue, net | 0 | 111.2 | 1,637.1 | ||||||||
Cost of sales | 0 | 98.4 | 1,428.4 | ||||||||
Operating income from discontinued operations | 0 | 2 | 49.9 | ||||||||
Gain on sale of discontinued operations | 0 | 427.9 | 0 | ||||||||
Income (loss) from discontinued operations, before income taxes | 0 | 402.5 | (20.5) | ||||||||
Income tax (benefit) expense | (3) | 47.9 | (31.2) | ||||||||
Net income from discontinued operations, net of income taxes | 3 | 354.6 | 10.7 | ||||||||
Less: Net income attributable to non-controlling interests | 0 | 0.6 | 8.5 | ||||||||
Net income (loss) attributable to Cott Corporation – discontinued operations | $ 3 | 354 | 2.2 | ||||||||
Income tax expense (benefit) | (35.1) | ||||||||||
Interest on short-term debt | $ 3.4 | $ 49.5 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Accrued sales incentives | $ 10 | $ 10.5 |
Deferred revenue | 22 | $ 23.7 |
Revenue recognized | $ 21.7 |
Revenue - Disaggregation of Re
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, net | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 1,801.7 | 1,786.9 | 1,709 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 172 | 173.2 | 160 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 67.4 | 64.1 | 61.8 |
All other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | $ 353.4 | $ 348.7 | $ 338.9 |
Acquisitions - Narrative (Deta
Acquisitions - Narrative (Detail) - USD ($) $ in Millions | Oct. 15, 2018 | Feb. 28, 2019 | Oct. 31, 2018 | Mar. 31, 2018 | Dec. 29, 2018 | Dec. 29, 2018 | Dec. 28, 2019 | Mar. 21, 2018 |
Mountain Valley | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration | $ 80 | $ 80.4 | ||||||
Payment of working capital settlement | 0.4 | $ 0.4 | ||||||
Business combination revenue | $ 10.1 | |||||||
Business combination net incomes | 1.2 | |||||||
Acquisition related costs | 1 | |||||||
Cash paid to sellers | 62.5 | |||||||
Cash paid on behalf of sellers for sellers’ transaction expenses | 1.8 | |||||||
Total consideration | $ 80.4 | $ 80 | ||||||
Crystal rock acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration | $ 37.7 | |||||||
Business combination revenue | $ 42.3 | |||||||
Acquisition related costs | $ 3.6 | |||||||
Cash paid to sellers | 20.7 | |||||||
Cash paid on behalf of sellers for sellers’ transaction expenses | 0.8 | |||||||
Assumed debt | 16.2 | |||||||
Total consideration | $ 21.5 | $ 21.5 | $ 21.5 |
- Business Combination Transfer
- Business Combination Transfer Consideration (Detail) - USD ($) $ in Millions | Oct. 15, 2018 | Feb. 28, 2019 | Oct. 31, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Mar. 21, 2018 |
Mountain Valley | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid to sellers | $ 62.5 | |||||
Cash paid on behalf of sellers for sellers’ transaction expenses | 1.8 | |||||
Cash paid to retire outstanding debt on behalf of sellers | 16.1 | |||||
Working capital settlement | (0.4) | $ (0.4) | ||||
Total consideration | 80 | $ 80.4 | ||||
Total consideration | $ 80.4 | $ 80 | ||||
Crystal rock acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid to sellers | $ 20.7 | |||||
Cash paid on behalf of sellers for sellers’ transaction expenses | 0.8 | |||||
Total consideration | 37.7 | |||||
Total consideration | $ 21.5 | $ 21.5 | $ 21.5 |
- Purchase Price to Fair Value
- Purchase Price to Fair Value (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Oct. 15, 2018 | Mar. 31, 2018 | Mar. 21, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,175.7 | $ 1,143.9 | $ 1,104.7 | |||
Mountain Valley | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 8.2 | $ 8.2 | ||||
Accounts receivable | 4.2 | 4.2 | ||||
Inventory | 2.3 | 2.3 | ||||
Prepaid expenses and other current assets | 0.2 | 0.2 | ||||
Property, plant and equipment | 41.5 | 38.5 | ||||
Goodwill | 16 | 20.5 | ||||
Intangible assets | 28.4 | 25.8 | ||||
Accounts payable and accrued liabilities | (20.8) | (19.3) | ||||
Total | 80 | $ 80.4 | ||||
Crystal rock acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 1.6 | $ 1.6 | ||||
Accounts receivable | 6.4 | 6.4 | ||||
Inventory | 2.2 | 2.2 | ||||
Prepaid expenses and other current assets | 2.2 | 2.2 | ||||
Property, plant and equipment | 8.9 | 8.9 | ||||
Goodwill | 14.2 | 13.7 | ||||
Intangible assets | 12.6 | 12.6 | ||||
Other assets | 0.1 | 0.1 | ||||
Short-term borrowings | (4.1) | (4.1) | ||||
Current maturities of long-term debt | (1.6) | (1.6) | ||||
Accounts payable and accrued liabilities | (6.7) | (6.7) | ||||
Long-term debt | (10.4) | (10.4) | ||||
Deferred tax liabilities | (3) | (2.5) | ||||
Other long-term liabilities | (0.9) | (0.9) | ||||
Total | 21.5 | $ 21.5 | $ 21.5 | |||
Measurement Period Adjustments | Mountain Valley | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment | 3 | |||||
Goodwill | (4.5) | |||||
Intangible assets | 2.6 | |||||
Accounts payable and accrued liabilities | (1.5) | |||||
Total | (0.4) | |||||
Measurement Period Adjustments | Crystal rock acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 0.5 | |||||
Deferred tax liabilities | (0.5) | |||||
Total | $ 0 |
- Components of Identified Inta
- Components of Identified Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 15, 2018 | Mar. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Mountain Valley | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 25.8 | $ 28.4 | ||
Mountain Valley | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | 28.4 | |||
Mountain Valley | Trademarks and trade names | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 18.4 | |||
Mountain Valley | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted average estimated useful life (in years) | 20 years | |||
Mountain Valley | Customer relationships | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 10 | |||
Crystal rock acquisition | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 12.6 | $ 12.6 | ||
Crystal rock acquisition | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | 12.6 | |||
Crystal rock acquisition | Trademarks and trade names | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 4.2 | |||
Crystal rock acquisition | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted average estimated useful life (in years) | 11 years | |||
Crystal rock acquisition | Customer relationships | Valuation, Income Approach | Estimate of Fair Value Measurement | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Market Value | $ 8.4 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange losses (gains), net | $ 0.9 | $ (7.1) | $ (1.7) |
Proceeds from legal settlements | 0 | (14.9) | 0 |
Loss (gain) on sale of business | 6 | (6) | 0 |
Transition services agreement service income | (0.3) | (2.6) | 0 |
Pension curtailment gain | 0 | 0 | (4.5) |
Gain on extinguishment of long-term debt | 0 | (7.1) | (1.5) |
Other gains, net | (3.8) | (5.2) | (0.3) |
Total | $ 2.8 | $ (42.9) | $ (8) |
Interest Expense, Net - Schedul
Interest Expense, Net - Schedule of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Banking and Thrift [Abstract] | |||
Interest on long-term debt | $ 69.5 | $ 72.2 | $ 83.1 |
Interest on short-term debt | 4.8 | 0 | 0 |
Other interest expense, net | 3.9 | 5.4 | 2.4 |
Total | $ 78.2 | $ 77.6 | $ 85.5 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Canada | $ (57) | $ (26.1) | $ (29.1) |
Outside Canada | 66.4 | 50.2 | (4.5) |
Income (loss) from continuing operations before income taxes | $ 9.4 | $ 24.1 | $ (33.6) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current | |||
Canada | $ (0.2) | $ 0 | $ 0 |
Outside Canada | 12.6 | 2.3 | 3.9 |
Income tax (benefit) expense, current continuing operations, Total | 12.4 | 2.3 | 3.9 |
Deferred | |||
Canada | (1) | (5.6) | 0 |
Outside Canada | (1.9) | (1.5) | (33.9) |
Income tax (benefit) expense, deferred continued operations, Total | (2.9) | (7.1) | (33.9) |
Income tax expense (benefit) | $ 9.5 | $ (4.8) | $ (30) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense (benefit) based on Canadian statutory rates | $ 2.5 | $ 6.4 | $ (8.7) |
Foreign tax rate differential | (11.1) | (2.6) | (1.3) |
Local taxes | 2.1 | 0.5 | (0.2) |
Nontaxable interest income | (8.4) | (9.8) | (11.3) |
Impact of intercompany transactions and dividends | 12.2 | 1 | (9.2) |
Nontaxable capital gains | 0 | 0 | (3.7) |
Income tax credits | (0.5) | 0 | 0 |
Change in enacted tax rates | (0.1) | 3.4 | (32.7) |
Change in valuation allowance | 19.7 | (4.2) | 45.8 |
Change in uncertain tax positions | 0.3 | (3.4) | (2.4) |
Equity compensation | 1.5 | 1.5 | 1.1 |
Permanent differences | 1.6 | 1.1 | (0.6) |
Outside basis differences on discontinued operations | 0 | 0 | (3.8) |
Adjustments to deferred taxes | (10.4) | 0.7 | (3.4) |
Other items | 0.1 | 0.6 | 0.4 |
Income tax expense (benefit) | $ 9.5 | $ (4.8) | $ (30) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets | ||
Capital loss carryforwards | $ 44.8 | |
Continued Operations | ||
Deferred tax assets | ||
Net operating loss carryforwards | 134.2 | $ 109.8 |
Capital loss carryforwards | 12 | 13.1 |
Liabilities and reserves | 28.2 | 25 |
Stock options | 8.2 | 8.1 |
Inventories | 4 | 3.8 |
Interest expense | 11.3 | 12.2 |
Derivatives | 0 | (2.8) |
Right of use lease obligations | 49.1 | |
Other | 0 | 3.9 |
Deferred tax assets, gross | 247 | 178.7 |
Deferred tax liabilities | ||
Property, plant and equipment | (76.3) | (65.7) |
Intangible assets | (125.1) | (139.2) |
Right of use assets | (47.6) | |
Derivatives | (3.9) | 0 |
Other | (1.2) | 0 |
Deferred tax liabilities | (254.1) | (204.9) |
Valuation allowance | (120.3) | (98) |
Net deferred tax liability | $ (127.4) | $ (124.2) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 15.5 | $ 16.2 | $ 28.6 |
Additions based on tax positions taken during a prior period | 5 | 1.3 | 0.2 |
Reductions based on tax positions taken during a prior period | (1.9) | (0.1) | (6.3) |
Settlement on tax positions taken during a prior period | 0 | 0 | (1) |
Tax rate change | 0 | (0.1) | (4.5) |
Lapse in statute of limitations | (2.9) | (4.3) | (3.2) |
Additions based on tax positions taken during the current period | 1.7 | 3 | 1.7 |
Cash payments | (0.2) | 0 | 0 |
Foreign exchange | 0.1 | (0.5) | 0.7 |
Unrecognized tax benefits at end of year | $ 17.3 | $ 15.5 | $ 16.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Repatriated earnings | $ 75.1 | $ 83.1 | ||
Operating loss carry forwards | 516 | |||
Capital loss carry forwards | 44.8 | |||
Credit carryforwards | 1.7 | |||
Unrecognized tax benefits | 17.3 | 15.5 | $ 16.2 | $ 28.6 |
Increase (decrease) in unrecognized tax benefits | 1.8 | |||
Favorable impact of effective tax rate | 11.4 | |||
Reasonably possible decrease | 1.7 | |||
Interest and penalties | 1 | 0.6 | ||
Canada | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 213.4 | |||
Capital loss carry forwards | 39.2 | |||
Valuation allowance | 120.3 | $ 98 | ||
U.S. Federal | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 120.6 | |||
State and Local | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 11.1 | |||
Netherlands | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 115.9 | |||
Other Countries | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 55 | |||
Israeli | ||||
Income Taxes [Line Items] | ||||
Capital loss carry forwards | 5.6 | |||
Israel and Canada | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | 12 | |||
Other credit carryforward | ||||
Income Taxes [Line Items] | ||||
Credit carryforwards | $ 1.7 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | 12 Months Ended | ||
Dec. 28, 2019USD ($)installment$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance for each share issued | shares | 2 | ||
Share Based compensation award vesting period | 3 years | ||
Share-based compensation expense | $ | $ 12,400,000 | $ 17,400,000 | $ 22,900,000 |
Income tax benefit recognized related to share-based compensation | $ | $ 600,000 | $ 900,000 | $ 500,000 |
Closing price of common shares (in USD per share) | $ / shares | $ 13.45 | $ 13.66 | $ 16.66 |
Number of annual installments | installment | 3 | ||
Cash received from exercise of stock options | $ | $ 5,000,000 | $ 1,600,000 | |
Tax benefit realized on exercise of stock option | $ | 200,000 | 0 | |
Fair value of options that vested | $ | $ 19,000,000 | 16,800,000 | 16,400,000 |
Income Loss form Discontinued Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | 1,200,000 | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | $ 5,700,000 | 7,000,000 | 12,000,000 |
Common shares granted (in shares) | shares | 284,591 | ||
Aggregate grant date fair value of shares vested | $ | $ 5,000,000 | 6,400,000 | 2,600,000 |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | 2,100,000 | 3,800,000 | 4,200,000 |
Fair value of options that vested | $ | $ 3,200,000 | 3,500,000 | $ 4,300,000 |
Common shares granted (in shares) | shares | 216,057 | ||
Board of directors chairman | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense associated with modification | $ | $ 5,500,000 | ||
Amended and Restated Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | shares | 20,000,000 | ||
Shares available for future issuance | shares | 670,280 | ||
Amended and Restated Equity Plan | Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares granted (in shares) | shares | 74,238 | ||
2018 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | shares | 8,000,000 | ||
Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based compensation award vesting period | 3 years | ||
Stock Option Plan | Certain employee | Exercise Price of $9.22 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 1,138,000 | ||
Granted(in USD per share) | $ / shares | $ 13.68 | ||
Options granted, estimated fair value (in USD per share) | $ / shares | $ 3.42 | ||
Stock Option Plan | Certain employee | Exercise Price of $8.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 1,182,400 | ||
Granted(in USD per share) | $ / shares | $ 14.67 | ||
Options granted, estimated fair value (in USD per share) | $ / shares | $ 3.87 | ||
Stock Option Plan | Certain employee | Exercise Price of $9.29 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 734,500 | ||
Granted(in USD per share) | $ / shares | $ 17.50 | ||
Options granted, estimated fair value (in USD per share) | $ / shares | $ 4.82 | ||
Stock Option Plan | Certain employee | Exercise Price of $9.29 | Amended and Restated Equity Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based compensation award vesting period | 10 years | ||
2010 Equity Incentive Plan | Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based compensation award vesting period | 3 years | ||
2010 Equity Incentive Plan | Time-based RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance awards granted | 0.00% | ||
2010 Equity Incentive Plan | Time-based RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance awards granted | 200.00% | ||
Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | shares | 2,581,340 | ||
Share-based compensation expense | $ | $ 200,000 | $ 300,000 | $ 100,000 |
Share based payment award number of shares authorized | shares | 3,000,000 | ||
Share based payment award offering price percentage | 90.00% | ||
Payroll deduction to purchase share, Minimum | 1.00% | ||
Payroll deduction to purchase share, Maximum | 15.00% |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 12.4 | $ 17.4 | $ 22.9 |
Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0.2 | 0.3 | 0.1 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.3 | 5.3 | 5.5 |
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5.7 | 7 | 12 |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.1 | 3.8 | 4.2 |
Director share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.1 | 1 | 1.1 |
Discontinued Operations, Held-for-sale | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0.1 | $ 5.4 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Share-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 16.1 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 5.3 |
Weighted average years expected to recognize compensation | 2 years 1 month 6 days |
Performance-based RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 6.9 |
Weighted average years expected to recognize compensation | 2 years 4 months 24 days |
Time-based RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 3.9 |
Weighted average years expected to recognize compensation | 2 years 1 month 6 days |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Option Assumptions (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.80% | 2.80% | 2.30% |
Average expected life (years) | 6 years | 5 years 7 months 6 days | 6 years |
Expected volatility (as a percent) | 29.00% | 28.80% | 29.20% |
Expected dividend yield (as a percent) | 1.80% | 1.60% | 1.40% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Stock Options (in thousands) | ||||
Beginning balance (in shares) | 5,446 | 5,006 | 4,474 | |
Granted (in shares) | 1,138 | 1,182 | 734 | |
Exercised (in shares) | (91) | (734) | (169) | |
Forfeited or expired (in shares) | 0 | (8) | (33) | |
Ending balance (in shares) | 6,493 | 5,446 | 5,006 | 4,474 |
Weighted average exercise price | ||||
Beginning balance (in USD per share) | $ 12.30 | $ 11.41 | $ 10.32 | |
Granted (in USD per share) | 13.68 | 14.67 | 17.50 | |
Exercised (in USD per share) | 10.47 | 10.04 | 9.21 | |
Forfeited or expired (in USD per share) | 0 | 10.64 | 10.28 | |
Ending balance (in USD per share) | $ 12.57 | $ 12.30 | $ 11.41 | $ 10.32 |
Exercisable shares, Ending balance | 4,336 | |||
Vested or expected to vest (in shares) | 6,493 | |||
Exercisable (in USD per share) | $ 11.64 | |||
Vested or expected to vest (USD per share) | $ 12.57 | |||
Outstanding balance (years) | 6 years 10 months 24 days | 7 years 3 months 18 days | 8 years 1 month 6 days | 8 years 9 months 18 days |
Exercisable (years) | 5 years 9 months 18 days | |||
Vested or expected to vest (years) | 6 years 10 months 24 days | |||
Beginning balance | $ 11,993,000 | $ 26,952,300 | $ 5,623,300 | |
Exercised | 389,100 | 4,408,100 | 1,092,900 | |
Ending balance | 11,045,400 | $ 11,993,000 | $ 26,952,300 | $ 5,623,300 |
Exercisable | 11,018,600 | |||
Vested or expected to vest | $ 11,045,400 |
- Performance-based RSU and Tim
- Performance-based RSU and Time-based RSU Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Performance-based RSUs | |||
Number of Performance-based RSUs (in thousands) | |||
Beginning balance (in shares) | 1,665,000 | 2,899,000 | 3,063,000 |
Awarded (in shares) | 285,000 | 312,000 | 235,000 |
Awarded in connection with acquisitions (in shares) | 64,000 | ||
Awarded in connection with modification (in shares) | 190,000 | 246,000 | |
Issued (in shares) | (441,000) | (686,000) | (320,000) |
Forfeited (in shares) | (100,000) | (1,106,000) | (143,000) |
Ending balance (in shares) | 1,599,000 | 1,665,000 | 2,899,000 |
Weighted Average Grant-Date Fair Value | |||
Beginning balance, (USD per share) | $ 13.90 | $ 9.15 | $ 9.89 |
Awarded (USD per share) | 13.69 | 14.67 | 17.06 |
Awarded in connection with acquisitions (USD per share) | 11.32 | ||
Awarded in connection with modification (USD per share) | 11.22 | 9.21 | |
Issued (USD per share) | 11.30 | 9.32 | 8 |
Forfeited (USD per share) | 12.33 | 6.55 | 15.18 |
Ending balance (USD per share) | $ 14.36 | $ 13.90 | $ 9.15 |
Vested or expected to vest (in shares) | 1,594,000 | ||
Vested or expected to vest (USD per share) | $ 13.30 | ||
Common shares granted (in shares) | 284,591 | ||
Time-based RSUs | |||
Number of Performance-based RSUs (in thousands) | |||
Beginning balance (in shares) | 427,000 | 502,000 | 800,000 |
Awarded (in shares) | 216,000 | 208,000 | 135,000 |
Awarded in connection with acquisitions (in shares) | 0 | ||
Awarded in connection with modification (in shares) | 0 | 0 | |
Issued (in shares) | (239,000) | (269,000) | (409,000) |
Forfeited (in shares) | (7,000) | (14,000) | (24,000) |
Ending balance (in shares) | 397,000 | 427,000 | 502,000 |
Weighted Average Grant-Date Fair Value | |||
Beginning balance, (USD per share) | $ 14.23 | $ 13.14 | $ 11.10 |
Awarded (USD per share) | 13.69 | 14.67 | 17.50 |
Awarded in connection with acquisitions (USD per share) | 0 | ||
Awarded in connection with modification (USD per share) | 0 | 0 | |
Issued (USD per share) | 13.38 | 13.07 | 10.55 |
Forfeited (USD per share) | 14.89 | 13.24 | 12.28 |
Ending balance (USD per share) | $ 14.43 | $ 14.23 | $ 13.14 |
Vested or expected to vest (in shares) | 397,000 | ||
Vested or expected to vest (USD per share) | $ 14.43 | ||
Common shares granted (in shares) | 216,057 |
Common Shares and Net Income _3
Common Shares and Net Income (Loss) per Common Share - Additional Information (Detail) - USD ($) | Dec. 11, 2018 | May 01, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Common shares repurchased and canceled | $ 31,800,000 | $ 74,900,000 | $ 3,800,000 | ||
Initial Repurchase Plan | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Stock repurchase program | $ 50,000,000 | ||||
Period in force (in months) | 12 years | 12 months | |||
Common shares repurchased and canceled (in shares) | 2,973,282 | ||||
Common shares repurchased and canceled | $ 46,000,000 | ||||
New Repurchase Plan | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Stock repurchase program | $ 50,000,000 | ||||
Common shares repurchased and canceled (in shares) | 2,006,789 | 1,590,088 | |||
Common shares repurchased and canceled | $ 27,800,000 | $ 22,200,000 |
Common Shares and Net Income _4
Common Shares and Net Income (Loss) per Common Share - Reconciliation of Numerator and Denominators of Basic and Diluted Net (Loss) Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Numerator (in millions): | |||||||||||
Continuing operations | $ (0.1) | $ 28.9 | $ (3.6) | ||||||||
Discontinued operations | 3 | 354 | 2.2 | ||||||||
Net income (loss) | $ 2.9 | $ 382.9 | $ (1.4) | ||||||||
Basic Earnings Per Share: | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 135,224 | 139,097 | 139,078 | ||||||||
Continuing operations (In USD per share) | $ 0.05 | $ 0.06 | $ 0.03 | $ (0.14) | $ 0.03 | $ 0.06 | $ 0.09 | $ 0.03 | $ 0 | $ 0.21 | $ (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.55 | 0.02 | 2.54 | 0.02 |
Net income (loss) (In USD per share) | 0.06 | 0.07 | 0.03 | (0.14) | 0.01 | 0.07 | 0.08 | 2.58 | $ 0.02 | $ 2.75 | $ (0.01) |
Denominator (in thousands): | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 135,224 | 139,097 | 139,078 | ||||||||
Diluted (in shares) | 135,224 | 141,436 | 139,078 | ||||||||
Diluted Earnings Per Share: | |||||||||||
Continuing operations (In USD per share) | 0.05 | 0.06 | 0.03 | (0.14) | 0.03 | 0.06 | 0.09 | 0.03 | $ 0 | $ 0.21 | $ (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.51 | 0.02 | 2.50 | 0.02 |
Net income (loss) (In USD per share) | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.14) | $ 0.01 | $ 0.07 | $ 0.08 | $ 2.54 | $ 0.02 | $ 2.71 | $ (0.01) |
Performance-based RSUs | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 900 | 0 | ||||||||
Time-based RSUs | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 240 | 0 | ||||||||
Stock options | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 1,199 | 0 |
Common Shares and Net Income _5
Common Shares and Net Income (Loss) per Common Share - Summary of the Anti-dilutive Securities Excluded from the Computation of Diluted Net (Loss) Income Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 6,493 | 2,095 | 5,006 |
Performance-based RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 1,594 | 564 | 2,235 |
Time-based RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 397 | 148 | 493 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - Segment | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 28, 2019 | |
Segment Reporting [Abstract] | ||
Number of reporting segments | 3 | 2 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 | ||||||||
Depreciation and amortization | 192.8 | 194.6 | 188.6 | ||||||||
Operating income (loss) | $ 20.1 | $ 41.6 | $ 24.6 | $ 4.1 | $ 4.2 | $ 27.8 | $ 20.7 | $ 6.1 | 90.4 | 58.8 | 43.9 |
Property, plant and equipment, net | 647.8 | 647.8 | |||||||||
Property, plant and equipment, net | 624.7 | 624.7 | |||||||||
Goodwill | 1,175.7 | 1,143.9 | 1,175.7 | 1,143.9 | 1,104.7 | ||||||
Intangible assets, net | 701.4 | 739.2 | 701.4 | 739.2 | |||||||
Total assets | 3,390.9 | 3,175.5 | 3,390.9 | 3,175.5 | |||||||
Additions to property, plant and equipment | 114.6 | 130.8 | 121.3 | ||||||||
Route Based Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill | 1,047.5 | 1,021.6 | 1,047.5 | 1,021.6 | 982.4 | ||||||
Coffee, Tea and Extract Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill | 128.2 | 117.8 | 128.2 | 117.8 | 117.8 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill | 0 | 4.5 | 0 | 4.5 | 4.5 | ||||||
Operating Segments | Route Based Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 1,788.2 | 1,710.3 | 1,599.6 | ||||||||
Depreciation and amortization | 168.3 | 170.7 | 164.9 | ||||||||
Operating income (loss) | 115.8 | 89.9 | 79.7 | ||||||||
Property, plant and equipment, net | 557 | 557 | |||||||||
Property, plant and equipment, net | 530.7 | 530.7 | |||||||||
Goodwill | 1,047.5 | 1,021.6 | 1,047.5 | 1,021.6 | |||||||
Intangible assets, net | 596 | 608.3 | 596 | 608.3 | |||||||
Total assets | 2,816.1 | 2,578.3 | 2,816.1 | 2,578.3 | |||||||
Additions to property, plant and equipment | 100.9 | 112.3 | 100.8 | ||||||||
Operating Segments | Coffee, Tea and Extract Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 605 | 587.6 | 602.2 | ||||||||
Depreciation and amortization | 24.2 | 22.9 | 22.7 | ||||||||
Operating income (loss) | 15.4 | 16.1 | 15.9 | ||||||||
Property, plant and equipment, net | 89.7 | 89.7 | |||||||||
Property, plant and equipment, net | 88.3 | 88.3 | |||||||||
Goodwill | 128.2 | 117.8 | 128.2 | 117.8 | |||||||
Intangible assets, net | 104.4 | 103.2 | 104.4 | 103.2 | |||||||
Total assets | 526.5 | 464.8 | 526.5 | 464.8 | |||||||
Additions to property, plant and equipment | 13.3 | 16 | 19 | ||||||||
Operating Segments | All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 7.2 | 80.7 | 67.9 | ||||||||
Depreciation and amortization | 0.3 | 1 | 1 | ||||||||
Operating income (loss) | (40.8) | (47.2) | (51.7) | ||||||||
Property, plant and equipment, net | 1.1 | 1.1 | |||||||||
Property, plant and equipment, net | 5.7 | 5.7 | |||||||||
Goodwill | 0 | 4.5 | 0 | 4.5 | |||||||
Intangible assets, net | 1 | 27.7 | 1 | 27.7 | |||||||
Total assets | 48.3 | 132.4 | 48.3 | 132.4 | |||||||
Additions to property, plant and equipment | 0.4 | 2.5 | 1.5 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | (5.9) | (5.7) | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | |||||||||
Property, plant and equipment, net | 0 | 0 | |||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||
Intangible assets, net | 0 | 0 | 0 | 0 | |||||||
Total assets | $ 0 | $ 0 | 0 | 0 | |||||||
Additions to property, plant and equipment | 0 | 0 | 0 | ||||||||
Eliminations | Coffee, Tea and Extract Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | $ 5.9 | 5.7 | |||||||||
Discontinued Operations, Disposed of by Sale | Concentrate | Operating Segments | All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 41.1 | ||||||||||
Revenue from related parties | $ 4.2 | ||||||||||
ASU 2017-07 | Operating Segments | Route Based Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ (5) |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | $ 600.2 | $ 616.1 | $ 604.1 | $ 574.1 | $ 599.2 | $ 609.3 | $ 603.6 | $ 560.8 | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 |
U.S. | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 1,801.7 | 1,786.9 | 1,709 | ||||||||
United Kingdom | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 172 | 173.2 | 160 | ||||||||
Canada | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 67.4 | 64.1 | 61.8 | ||||||||
All other countries | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | $ 353.4 | $ 348.7 | $ 338.9 |
Segment Reporting - Revenues _2
Segment Reporting - Revenues by Channel Reporting Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenue, net | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | (5.9) | (5.7) | 0 |
Home and office bottled water delivery | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 1,136 | 1,078.5 | 990.6 |
Home and office bottled water delivery | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
Coffee and tea services | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 661.7 | 649 | 688.5 |
Coffee and tea services | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | (5.9) | (5.7) | 0 |
Retail | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 297.6 | 286 | 282.2 |
Retail | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 299.2 | 359.4 | 308.4 |
Other | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
Route Based Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 1,788.2 | 1,710.3 | 1,599.6 |
Route Based Services | Home and office bottled water delivery | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 1,136 | 1,078.5 | 990.6 |
Route Based Services | Coffee and tea services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 184 | 192.8 | 186.8 |
Route Based Services | Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 297.6 | 286 | 282.2 |
Route Based Services | Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 170.6 | 153 | 140 |
Route Based Services | From other to home | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | (83.7) | (50.2) | |
Route Based Services | To home from other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 2 | 1.2 | |
Route Based Services | From retail to other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | (18) | ||
Route Based Services | To other from retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0.2 | 1 | |
Coffee, Tea and Extract Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 605 | 587.6 | 602.2 |
Coffee, Tea and Extract Solutions | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 5.9 | 5.7 | |
Coffee, Tea and Extract Solutions | Home and office bottled water delivery | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
Coffee, Tea and Extract Solutions | Coffee and tea services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 483.6 | 461.9 | 501.7 |
Coffee, Tea and Extract Solutions | Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
Coffee, Tea and Extract Solutions | Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 121.4 | 125.7 | 100.5 |
All Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 7.2 | 80.7 | 67.9 |
All Other | Home and office bottled water delivery | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
All Other | Coffee and tea services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
All Other | Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 0 | 0 | 0 |
All Other | Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | $ 7.2 | $ 80.7 | $ 67.9 |
Segment Reporting - Property, P
Segment Reporting - Property, Plant and Equipment, Net by Geographic Area (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 647.8 | |
Property, plant and equipment, Total | $ 624.7 | |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 505.4 | |
Property, plant and equipment, Total | 491.1 | |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 20.9 | |
Property, plant and equipment, Total | 17.8 | |
Canada | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 18.6 | |
Property, plant and equipment, Total | 19.8 | |
All other countries | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 102.9 | |
Property, plant and equipment, Total | $ 96 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Receivables [Abstract] | ||
Trade receivables | $ 268.5 | $ 293 |
Allowance for doubtful accounts | (9.1) | (9.6) |
Other | 19.9 | 24.9 |
Total | $ 279.3 | $ 308.3 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 59.5 | $ 68.5 |
Finished goods | 36.7 | 36.3 |
Resale items | 22.8 | 21.5 |
Other | 3.5 | 3.3 |
Total | $ 122.5 | $ 129.6 |
Property, Plant & Equipment, _3
Property, Plant & Equipment, Net - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 922.2 | |
Accumulated Depreciation | 297.5 | |
Net | 624.7 | |
Finance leases, Cost | $ 39.9 | |
Finance leases, Accumulated Depreciation | 8 | |
Finance leases, Net | 31.9 | |
Cost | 1,066.8 | |
Accumulated Depreciation | 419 | |
Net | 647.8 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 99.3 | 98.5 |
Net | 99.3 | 98.5 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 115.7 | 111.9 |
Accumulated Depreciation | 31.3 | 22.9 |
Net | 84.4 | 89 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 206.6 | 183.3 |
Accumulated Depreciation | 85.6 | 67 |
Net | 121 | 116.3 |
Plates, films and molds | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1.5 | 1.4 |
Accumulated Depreciation | 0.6 | 0.4 |
Net | 0.9 | 1 |
Vehicles and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 91.6 | 88.1 |
Accumulated Depreciation | 60.4 | 50.2 |
Net | 31.2 | 37.9 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 20 | 16.7 |
Accumulated Depreciation | 10.7 | 6.9 |
Net | 9.3 | 9.8 |
IT Systems | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 19.2 | 16.2 |
Accumulated Depreciation | 11.3 | 8.6 |
Net | 7.9 | 7.6 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 13.6 | 9.3 |
Accumulated Depreciation | 9.5 | 3.2 |
Net | 4.1 | 6.1 |
Customer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 377.5 | 330.4 |
Accumulated Depreciation | 164.5 | 118.2 |
Net | 213 | 212.2 |
Returnable Bottles | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 81.9 | 59.7 |
Accumulated Depreciation | 37.1 | 19.1 |
Net | $ 44.8 | 40.6 |
Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6.7 | |
Accumulated Depreciation | 1 | |
Net | $ 5.7 | |
Minimum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 5 years | |
Minimum | Plates, films and molds | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 1 year | |
Minimum | Vehicles and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | IT Systems | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | Customer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Minimum | Returnable Bottles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Maximum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 40 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 15 years | |
Maximum | Plates, films and molds | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Maximum | Vehicles and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 15 years | |
Maximum | IT Systems | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 7 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Maximum | Customer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 7 years | |
Maximum | Returnable Bottles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 5 years |
Property, Plant & Equipment, _4
Property, Plant & Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment | $ 624.7 | ||
Depreciation | $ 127.5 | 123.6 | $ 120 |
Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment | $ 8.3 | $ 19.3 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Intangibles And Other Assets Net [Line Items] | ||
Intangibles not subject to amortization | $ 287.1 | $ 306.8 |
Intangibles subject to amortization Cost | 744.1 | 672.9 |
Total intangible assets | 1,031.2 | 979.7 |
Intangible assets - Accumulated Amortization | 329.8 | 240.5 |
Total | 414.3 | 432.4 |
Total intangible assets - Net | 701.4 | 739.2 |
Customer relationships | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles subject to amortization Cost | 654.1 | 603.1 |
Intangible assets - Accumulated Amortization | 286.5 | 211.1 |
Total | 367.6 | 392 |
Patents | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles subject to amortization Cost | 15.2 | 15.2 |
Intangible assets - Accumulated Amortization | 4 | 2.5 |
Total | 11.2 | 12.7 |
Software | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles subject to amortization Cost | 56.9 | 38 |
Intangible assets - Accumulated Amortization | 31.3 | 20.5 |
Total | 25.6 | 17.5 |
Other | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles subject to amortization Cost | 17.9 | 16.6 |
Intangible assets - Accumulated Amortization | 8 | 6.4 |
Total | 9.9 | 10.2 |
Rights | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles not subject to amortization | 0 | 24.5 |
Trademarks | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles not subject to amortization | $ 287.1 | $ 282.3 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible and other assets | $ 65.3 | $ 71 | $ 68.6 |
Intangible Assets, Net - Estima
Intangible Assets, Net - Estimated Amortization Expense for Intangible Assets (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 69.7 | |
2021 | 58.7 | |
2022 | 47.7 | |
2023 | 37.4 | |
2024 | 33.4 | |
Thereafter | 167.4 | |
Total | $ 414.3 | $ 432.4 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 200.4 | $ 206.1 |
Accrued compensation | 58.8 | 46.7 |
Accrued sales incentives | 10 | 10.5 |
Accrued interest | 23.9 | 24.2 |
Payroll, sales and other taxes | 17.4 | 21.7 |
Accrued deposits | 77.1 | 70.6 |
Derivative liability | 0 | 10.9 |
Self-insurance liabilities | 18.3 | 16.9 |
Other accrued liabilities | 60.2 | 61.4 |
Total | $ 466.1 | $ 469 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) € in Millions | Dec. 28, 2019USD ($) | Dec. 28, 2019EUR (€) | Dec. 29, 2018USD ($) | Jan. 30, 2018USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,235,300,000 | $ 1,246,100,000 | |||
Present value of lease obligations | 30,900,000 | ||||
Other debt financing | 1,400,000 | 2,100,000 | |||
Total long-term debt, principal amount | 1,374,000,000 | 1,359,200,000 | |||
Total debt, Unamortized debt issuance costs | 14,000,000 | 17,000,000 | |||
Total debt | 1,360,000,000 | 1,342,200,000 | |||
Less: Debt required to be repaid or extinguished as part of divestiture | |||||
Short-term borrowings | 92,400,000 | 89,000,000 | |||
Current maturities of long-term debt | 6,300,000 | ||||
Other debt financing | 1,100,000 | 1,100,000 | |||
Total current debt | 99,800,000 | 92,000,000 | |||
Short-term borrowings | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 400,000 | 7,900,000 | |||
Senior notes | 400,000 | 7,900,000 | |||
Total debt, Unamortized debt issuance costs | 0 | 0 | |||
Less: Debt required to be repaid or extinguished as part of divestiture | |||||
Short-term borrowings | 400,000 | 7,900,000 | |||
Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 1,274,200,000 | 1,267,200,000 | |||
Total debt, Unamortized debt issuance costs | 14,000,000 | 17,000,000 | |||
Less: Debt required to be repaid or extinguished as part of divestiture | |||||
Total long-term debt | 1,260,200,000 | 1,250,200,000 | |||
ABL Facility | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 92,000,000 | 81,100,000 | $ 250,000,000 | ||
Senior notes | 92,000,000 | 81,100,000 | |||
Total debt, Unamortized debt issuance costs | 0 | 0 | |||
Less: Debt required to be repaid or extinguished as part of divestiture | |||||
ABL facility | $ 92,000,000 | 81,100,000 | |||
Finance leases | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 5,000,000 | ||||
Finance leases | 5,000,000 | ||||
Less: Debt required to be repaid or extinguished as part of divestiture | |||||
Capital leases - current maturities | 1,900,000 | ||||
5.500% senior notes due in 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |||
Total long-term debt | $ 499,300,000 | € 450 | 513,100,000 | ||
Senior notes | 493,500,000 | 505,900,000 | |||
Total debt, Unamortized debt issuance costs | $ 5,800,000 | 7,200,000 | |||
5.500% senior notes due in 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |||
Total long-term debt | $ 750,000,000 | 750,000,000 | $ 750,000,000 | ||
Senior notes | 741,800,000 | 740,200,000 | |||
Total debt, Unamortized debt issuance costs | $ 8,200,000 | $ 9,800,000 |
Debt - Long term debt payments
Debt - Long term debt payments (Details) $ in Millions | Dec. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 100 |
2021 | 5.6 |
2022 | 5 |
2023 | 4.8 |
2024 | 503.4 |
Thereafter | 755.2 |
Total long-term debt payments | $ 1,374 |
Debt - Asset-Based Lending Faci
Debt - Asset-Based Lending Facility (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Jan. 30, 2018 | |
Debt Instrument [Line Items] | |||
Capitalized and deferred financing fees | $ 4,300,000 | ||
Total available under facility | 216,400,000 | ||
Outstanding borrowings | 92,000,000 | ||
Unused commitment | 47,400,000 | ||
Additional available borrowing capacity available | $ 77,000,000 | ||
Commitment fee (as a percent) | 0.25% | ||
Maximum borrowing capacity, increase in lender's commitment under credit facility | $ 110,600,000 | ||
Interest rate at period end (as a percent) | 3.40% | ||
ABL Facility | |||
Debt Instrument [Line Items] | |||
Additional available borrowing capacity available | $ 100,000,000 | ||
Senior notes | $ 92,000,000 | $ 81,100,000 | $ 250,000,000 |
Debt - 5.500% Senior Notes due
Debt - 5.500% Senior Notes due in 2025 (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2017 | Dec. 28, 2019 | Dec. 29, 2018 |
5.500% senior notes due in 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes (as a percent) | 5.50% | |||
Senior notes | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 |
Financing fees | $ 11,700,000 | 11,700,000 | ||
Amortization period of financing fees (years) | 8 years | |||
10.000% Senior Notes Due in 2021 | ||||
Debt Instrument [Line Items] | ||||
Amount to be repaid | $ 100,000,000 |
Debt - 5.500% Senior Notes du_2
Debt - 5.500% Senior Notes due in 2024 (Details) € in Millions | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 28, 2019USD ($) | Dec. 28, 2019EUR (€) | Dec. 29, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Document Period End Date | Dec. 28, 2019 | ||||
5.500% senior notes due in 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |||
Senior notes | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | ||
Financing fees | $ 11,700,000 | ||||
Amortization period of financing fees (years) | 8 years | ||||
5.500% senior notes due in 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |||
Senior notes | $ 499,300,000 | € 450 | $ 513,100,000 | ||
Financing fees | $ 11,300,000 | ||||
Amortization period of financing fees (years) | 8 years | ||||
5.500% senior notes due in 2024 | Eden | |||||
Debt Instrument [Line Items] | |||||
Financing fees | $ 11,000,000 |
Debt - ABL Facility (Details)
Debt - ABL Facility (Details) | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Debt Instrument [Line Items] | |
Fixed charge ratio | 1 |
Maximum | ABL Facility | |
Debt Instrument [Line Items] | |
Description of threshold with lenders' commitments (as a percent) | 10.00% |
Facility amount with lenders commitments | $ 22,500,000 |
S&D Disposition | ABL Facility | |
Debt Instrument [Line Items] | |
Facility amount with lenders commitments | $ 13,500,000 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Total expenses with respect to plans | $ 7.3 | $ 4.4 | $ 2 |
Curtailment gain | 0 | 0 | (4.5) |
Expected contribution to pension plans, next fiscal year | 1.6 | ||
Fair value of pension plan assets | 14 | 12.7 | 13.7 |
United States | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailment gain | 0 | ||
Accumulated benefit obligation | 8.6 | 7.9 | |
Fair value of pension plan assets | 8.1 | 6.9 | 7.1 |
International | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailment gain | (4.5) | ||
Accumulated benefit obligation | 13.1 | 10.8 | |
Fair value of pension plan assets | $ 5.9 | $ 5.8 | $ 6.6 |
Equity securities | United States | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 30.00% | ||
Equity securities | United States | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 45.00% | ||
Equity securities | International | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 50.00% | ||
Equity securities | International | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 80.00% | ||
Fixed income investments | United States | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 55.00% | ||
Fixed income investments | United States | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 70.00% | ||
Fixed income investments | International | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 20.00% | ||
Fixed income investments | International | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 50.00% | ||
Real estate | International | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 0.00% | ||
Real estate | International | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 30.00% | ||
Alternative Investments | International | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 0.00% | ||
Alternative Investments | International | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 15.00% |
Retirement Plans - Summary of C
Retirement Plans - Summary of Change in Benefit Obligations, Change in Plan Assets and Unfunded Status of DB Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | |
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | $ 18.7 | $ 21.2 | |||
Plan amendment | 0.4 | (0.1) | |||
Service cost | 0.8 | 0.8 | $ 1.5 | ||
Interest cost | 0.5 | 0.4 | 0 | ||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.9) | (1.8) | |||
Actuarial losses | 2.3 | (0.8) | |||
Settlement gains | (0.8) | ||||
Translation gains | 0.6 | (0.5) | |||
Projected benefit obligation at end of year | 21.7 | 18.7 | 21.2 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 12.7 | 13.7 | |||
Employer contributions | 0.8 | 0.7 | |||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.4) | (1.2) | |||
Settlement gains | 0.2 | ||||
Settlement losses | 0.5 | ||||
Actual return on plan assets | 1.2 | (0.1) | |||
Translation gains | 0.2 | (0.2) | |||
Fair value at end of year | 14 | 12.7 | 13.7 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (18.7) | (18.7) | (21.2) | $ (21.7) | $ (18.7) |
Fair value of plan assets | 12.7 | 12.7 | 13.7 | 14 | 12.7 |
Unfunded status | (7.7) | (6) | |||
U.S. | |||||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 7.9 | 8.4 | |||
Plan amendment | 0 | 0 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 0.3 | 0.3 | (0.3) | ||
Plan participant contributions | 0 | 0 | |||
Benefit payments | (0.4) | (0.4) | |||
Actuarial losses | 0.8 | (0.4) | |||
Settlement gains | 0 | ||||
Translation gains | 0 | 0 | |||
Projected benefit obligation at end of year | 8.6 | 7.9 | 8.4 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 6.9 | 7.1 | |||
Employer contributions | 0.3 | 0.3 | |||
Plan participant contributions | 0 | 0 | |||
Benefit payments | (0.4) | (0.4) | |||
Settlement gains | 0 | ||||
Settlement losses | 0 | ||||
Actual return on plan assets | 1.3 | (0.1) | |||
Translation gains | 0 | 0 | |||
Fair value at end of year | 8.1 | 6.9 | 7.1 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (7.9) | (7.9) | (8.4) | (8.6) | (7.9) |
Fair value of plan assets | 6.9 | 6.9 | 7.1 | 8.1 | 6.9 |
Unfunded status | (0.5) | (1) | |||
International | |||||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 10.8 | 12.8 | |||
Plan amendment | 0.4 | (0.1) | |||
Service cost | 0.8 | 0.8 | 1.5 | ||
Interest cost | 0.2 | 0.1 | 0.3 | ||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.5) | (1.4) | |||
Actuarial losses | 1.5 | (0.4) | |||
Settlement gains | (0.8) | ||||
Translation gains | 0.6 | (0.5) | |||
Projected benefit obligation at end of year | 13.1 | 10.8 | 12.8 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 5.8 | 6.6 | |||
Employer contributions | 0.5 | 0.4 | |||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1) | (0.8) | |||
Settlement gains | 0.2 | ||||
Settlement losses | 0.5 | ||||
Actual return on plan assets | (0.1) | 0 | |||
Translation gains | 0.2 | (0.2) | |||
Fair value at end of year | 5.9 | 5.8 | 6.6 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (10.8) | (10.8) | (12.8) | (13.1) | (10.8) |
Fair value of plan assets | $ 5.8 | $ 5.8 | $ 6.6 | 5.9 | 5.8 |
Unfunded status | $ (7.2) | $ (5) |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Benefit Plans [Line Items] | |||
Service cost | $ 0.8 | $ 0.8 | $ 1.5 |
Interest cost | 0.5 | 0.4 | 0 |
Expected return on plan assets | (0.5) | (0.5) | 0.1 |
Recognized net gain due to settlement | (0.3) | ||
Curtailment gain | 0 | 0 | (4.5) |
Net periodic pension (benefit) cost | 0.8 | 0.4 | (2.9) |
United States | |||
Benefit Plans [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | (0.3) |
Expected return on plan assets | (0.5) | (0.5) | 0.4 |
Recognized net gain due to settlement | 0 | ||
Curtailment gain | 0 | ||
Net periodic pension (benefit) cost | (0.2) | (0.2) | 0.1 |
International | |||
Benefit Plans [Line Items] | |||
Service cost | 0.8 | 0.8 | 1.5 |
Interest cost | 0.2 | 0.1 | 0.3 |
Expected return on plan assets | 0 | 0 | (0.3) |
Recognized net gain due to settlement | (0.3) | ||
Curtailment gain | (4.5) | ||
Net periodic pension (benefit) cost | $ 1 | $ 0.6 | $ (3) |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax which have Not yet been Recognized in Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Benefit Plans [Line Items] | |||
Unrecognized net actuarial loss | $ (1) | $ 0.3 | $ (16.8) |
Total accumulated other comprehensive loss | (1) | 0.3 | (16.8) |
United States | |||
Benefit Plans [Line Items] | |||
Unrecognized net actuarial loss | (0.1) | (0.1) | (0.6) |
Total accumulated other comprehensive loss | (0.1) | (0.1) | (0.6) |
International | |||
Benefit Plans [Line Items] | |||
Unrecognized net actuarial loss | (0.9) | 0.4 | (16.2) |
Total accumulated other comprehensive loss | $ (0.9) | $ 0.4 | $ (16.2) |
Retirement Plans - Assumptions
Retirement Plans - Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
United States | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 3.00% | 4.00% | 3.50% |
Expected long-term rate of return on plan assets | 6.30% | 6.30% | 7.00% |
International | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 1.10% | 2.40% | 2.00% |
Expected long-term rate of return on plan assets | 1.30% | 2.70% | 3.10% |
Rate of compensation increase | 2.70% | 1.40% | 1.40% |
CPI Inflation factor | 0.30% | 0.30% | 0.30% |
Retirement Plans - Assumption_2
Retirement Plans - Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 3.50% | 3.80% |
Expected long-term rate of return on plan assets | 6.30% | 6.30% | 7.00% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.10% | 2.40% | 2.00% |
Expected long-term rate of return on plan assets | 1.30% | 2.70% | 3.10% |
Inflation factor | 0.30% | 0.30% | 0.30% |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Pension Plan Weighted-Average Asset Allocations by Asset Category (Details) | Dec. 28, 2019 | Dec. 29, 2018 |
United States | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 46.30% | 42.80% |
United States | Fixed income investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 53.70% | 57.20% |
International | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 56.80% | 58.60% |
International | Fixed income investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 33.20% | 31.00% |
International | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 10.00% | 10.40% |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Benefit Payments Expected to be Paid (Details) $ in Millions | Dec. 28, 2019USD ($) |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2020 | $ 1.6 |
FY 2021 | 1 |
FY 2022 | 1 |
FY 2023 | 0.9 |
FY 2024 | 1.1 |
FY 2025 through FY 2029 | 12.3 |
United States | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2020 | 0.4 |
FY 2021 | 0.4 |
FY 2022 | 0.5 |
FY 2023 | 0.5 |
FY 2024 | 0.5 |
FY 2025 through FY 2029 | 2.6 |
International | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2020 | 1.2 |
FY 2021 | 0.6 |
FY 2022 | 0.5 |
FY 2023 | 0.4 |
FY 2024 | 0.6 |
FY 2025 through FY 2029 | $ 9.7 |
Retirement Plans - Schedule o_5
Retirement Plans - Schedule of Fair Values of Company's International Plan Assets (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | $ 14 | $ 12.7 | $ 13.7 |
Level 1 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 3.3 | 3.5 | |
Level 1 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 1.6 | 1.6 | |
Level 1 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 1.7 | 1.9 | |
Level 1 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 1 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 2 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 2.6 | 2.4 | |
Level 2 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 2 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 2 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 2 | 1.8 | |
Level 2 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0.6 | 0.6 | |
Level 3 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 3 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 3 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 3 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Level 3 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Fair values of pension plan assets | $ 0 | $ 0 |
Consolidated Accumulated Othe_3
Consolidated Accumulated Other Comprehensive Income (Loss) - Changes in Consolidated Accumulated Other Comprehensive (Loss) Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 1,170.4 | $ 885.7 | $ 873.8 |
OCI before reclassifications | 25.2 | (39.8) | 24.5 |
Amounts reclassified from AOCI | 8 | 32.5 | (1) |
Net current-period OCI | 33.2 | (7.3) | 23.5 |
Balance | 1,166.2 | 1,170.4 | 885.7 |
Gains and Losses on Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (9.7) | (1.4) | (0.1) |
OCI before reclassifications | 12.9 | (14.5) | 0 |
Amounts reclassified from AOCI | 8 | 6.2 | (1.3) |
Net current-period OCI | 20.9 | (8.3) | (1.3) |
Balance | 11.2 | (9.7) | (1.4) |
Pension Benefit Plan Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 0.3 | (16.8) | (14.4) |
OCI before reclassifications | (1.3) | 0.2 | (2.7) |
Amounts reclassified from AOCI | 0 | 16.9 | 0.3 |
Net current-period OCI | (1.3) | 17.1 | (2.4) |
Balance | (1) | 0.3 | (16.8) |
Currency Translation Adjustment Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (92.3) | (76.2) | (103.4) |
OCI before reclassifications | 13.6 | (25.5) | 27.2 |
Amounts reclassified from AOCI | 0 | 9.4 | 0 |
Net current-period OCI | 13.6 | (16.1) | 27.2 |
Balance | (78.7) | (92.3) | (76.2) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (101.7) | (94.4) | (117.9) |
Balance | $ (68.5) | $ (101.7) | $ (94.4) |
Consolidated Accumulated Othe_4
Consolidated Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income to Total Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ (294.6) | $ (289.9) | $ (291) | $ (291.2) | $ (309) | $ (298.8) | $ (302.2) | $ (287.3) | $ (1,166.7) | $ (1,197.3) | $ (1,142) |
Income tax (expense) benefit | (9.5) | 4.8 | 30 | ||||||||
Net (loss) income | 2.9 | 383.5 | 7.1 | ||||||||
Tax Impact | 3.6 | ||||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net (loss) income | (8) | (32.5) | 1 | ||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Gains and Losses on Derivative Instruments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | (8) | (6.2) | 1.3 | ||||||||
Total before taxes | (8) | (6.2) | 1.3 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net (loss) income | (8) | (6.2) | 1.3 | ||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Pension Benefit Plan Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before taxes | 0 | (16.9) | (0.3) | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net (loss) income | 0 | (16.9) | (0.3) | ||||||||
Recognized Actuarial loss | 0 | (16.9) | 0 | ||||||||
Actuarial (losses)/gains | 0 | 0 | (0.3) | ||||||||
Tax Impact | (3.6) | ||||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Currency Translation Adjustment Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Recognized Actuarial loss | $ 0 | $ (9.4) | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 28, 2019USD ($)lessoragreement | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) |
Operating Leased Assets [Line Items] | |||
Fine | $ 0.1 | ||
Purchase obligation | $ 158.6 | ||
Number of third-party lessors | lessor | 3 | ||
Number of lease agreements | agreement | 3 | ||
Maximum potential amount of undiscounted future payments under the guarantee | $ 29.4 | $ 32.2 | $ 42 |
ABL Facility | |||
Operating Leased Assets [Line Items] | |||
Standby letters of credit outstanding | $ 47.4 | $ 46.1 | $ 46 |
Hedging Transactions and Deri_3
Hedging Transactions and Derivative Financial Instruments - Additional Information (Details) lb in Millions | 12 Months Ended | |
Dec. 28, 2019USD ($)lb | Dec. 29, 2018USD ($)lb | |
Derivative [Line Items] | ||
Fair value of derivative assets | $ 8,600,000 | $ 0 |
Fair value of derivative liabilities | 0 | 10,900,000 |
Derivative assets | 0 | |
Coffee futures | ||
Derivative [Line Items] | ||
Gain (loss) expected to be reclassified during next twelve months | 15,400,000 | |
Fair value of derivative assets | 8,600,000 | 0 |
Fair value of derivative liabilities | $ 0 | $ 10,900,000 |
Coffee futures | S&D Acquisition | ||
Derivative [Line Items] | ||
Notional amount (in pounds) | lb | 35.7 | 73.3 |
Cost of sales | Coffee futures | ||
Derivative [Line Items] | ||
Loss reclassified | $ 8,000,000 | $ 6,200,000 |
Hedging Transactions and Deri_4
Hedging Transactions and Derivative Financial Instruments - Summary of Reconciliation of Company's Derivatives by Contract Type (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Derivative [Line Items] | ||
Assets | $ 8,600,000 | $ 0 |
Liabilities | 0 | (10,900,000) |
Aggregate margin account balances | 6,400,000 | 12,900,000 |
Coffee futures | ||
Derivative [Line Items] | ||
Assets | 8,600,000 | 0 |
Liabilities | $ 0 | $ (10,900,000) |
Hedging Transactions and Deri_5
Hedging Transactions and Derivative Financial Instruments - Summary of Fair Value of Coffee Futures Assets and Liabilities (Details) - Coffee Futures - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Derivative [Line Items] | ||
Coffee futures assets | $ 12.1 | $ 0.1 |
Coffee futures liabilities | (3.5) | (11) |
Net asset (liability) | $ 8.6 | $ (10.9) |
Hedging Transactions and Deri_6
Hedging Transactions and Derivative Financial Instruments - Summary of Income and Expense Line Items Presented in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 294.6 | $ 289.9 | $ 291 | $ 291.2 | $ 309 | $ 298.8 | $ 302.2 | $ 287.3 | $ 1,166.7 | $ 1,197.3 | $ 1,142 |
Coffee futures | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Loss reclassified from AOCI into income/expense | $ 8 | $ 6.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value Measurements [Line Items] | ||
Fair value for the derivative liabilities | $ 0 | $ 10,900,000 |
Level 2 | ||
Fair Value Measurements [Line Items] | ||
Fair value for the derivative liabilities | $ 10,900,000 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 1,235.3 | $ 1,246.1 |
5.500% senior notes due in 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate on notes (as a percent) | 5.50% | |
Carrying Value | $ 493.5 | 505.9 |
5.500% senior notes due in 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate on notes (as a percent) | 5.50% | |
Carrying Value | $ 741.8 | 740.2 |
Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,289.8 | 1,217.5 |
Level 1 | 5.500% senior notes due in 2024 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 514.5 | 521.7 |
Level 1 | 5.500% senior notes due in 2025 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 775.3 | $ 695.8 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) - Schedule of Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, net | $ 600.2 | $ 616.1 | $ 604.1 | $ 574.1 | $ 599.2 | $ 609.3 | $ 603.6 | $ 560.8 | $ 2,394.5 | $ 2,372.9 | $ 2,269.7 |
Cost of sales | 294.6 | 289.9 | 291 | 291.2 | 309 | 298.8 | 302.2 | 287.3 | 1,166.7 | 1,197.3 | 1,142 |
Gross profit | 305.6 | 326.2 | 313.1 | 282.9 | 290.2 | 310.5 | 301.4 | 273.5 | 1,227.8 | 1,175.6 | 1,127.7 |
Selling, general and administrative expenses | 275.9 | 280.8 | 284.2 | 272.1 | 275.9 | 279.9 | 275.2 | 261.1 | 1,113 | 1,092.1 | 1,043.2 |
Loss on disposal of property, plant and equipment, net | 2.9 | 1.1 | 1.6 | 1.9 | 5.6 | 1.2 | 1.3 | 1.3 | 7.5 | 9.4 | 10.2 |
Acquisition and integration expenses | 6.7 | 2.7 | 2.7 | 4.8 | 4.5 | 1.6 | 4.2 | 5 | 16.9 | 15.3 | 30.4 |
Operating income | 20.1 | 41.6 | 24.6 | 4.1 | 4.2 | 27.8 | 20.7 | 6.1 | 90.4 | 58.8 | 43.9 |
Net (loss) income from continuing operations | 6.6 | 8.6 | 4.4 | (19.7) | 3.6 | 8.5 | 12.2 | 4.6 | (0.1) | 28.9 | (3.6) |
Net income from discontinued operations, net of income taxes | 1.5 | 1.5 | 0 | 0 | (2.9) | 1.5 | (1.4) | 357.4 | 3 | 354.6 | 10.7 |
Less: Net income attributable to non-controlling interests - discontinued operations | 0 | 0 | 0 | 0.6 | 0 | 0.6 | 8.5 | ||||
Net income (loss) attributable to Cott Corporation | $ 8.1 | $ 10.1 | $ 4.4 | $ (19.7) | $ 0.7 | $ 10 | $ 10.8 | $ 361.4 | $ 2.9 | $ 382.9 | $ (1.4) |
Basic: | |||||||||||
Continuing operations (In USD per share) | $ 0.05 | $ 0.06 | $ 0.03 | $ (0.14) | $ 0.03 | $ 0.06 | $ 0.09 | $ 0.03 | $ 0 | $ 0.21 | $ (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.55 | 0.02 | 2.54 | 0.02 |
Net income (loss) (In USD per share) | 0.06 | 0.07 | 0.03 | (0.14) | 0.01 | 0.07 | 0.08 | 2.58 | 0.02 | 2.75 | (0.01) |
Diluted: | |||||||||||
Continuing operations (In USD per share) | 0.05 | 0.06 | 0.03 | (0.14) | 0.03 | 0.06 | 0.09 | 0.03 | 0 | 0.21 | (0.03) |
Discontinued operations (In USD per share) | 0.01 | 0.01 | 0 | 0 | (0.02) | 0.01 | (0.01) | 2.51 | 0.02 | 2.50 | 0.02 |
Net income (loss) (In USD per share) | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.14) | $ 0.01 | $ 0.07 | $ 0.08 | $ 2.54 | $ 0.02 | $ 2.71 | $ (0.01) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event $ / shares in Units, $ in Millions | Jan. 28, 2020USD ($)$ / sharesshares | Feb. 19, 2020$ / shares | Jan. 30, 2020USD ($) |
Subsequent Event [Line Items] | |||
Dividend declared (per share) | $ / shares | $ 0.06 | ||
S&D Disposition | Discontinued Operations, Held-for-sale or Disposed of by Sale | |||
Subsequent Event [Line Items] | |||
Aggregate deal consideration | $ | $ 405 | ||
Primo Acquisition | |||
Subsequent Event [Line Items] | |||
Cash per share election option one (in dollars per share) | $ / shares | $ 14 | ||
Share exchange offer one (in shares) | 1.0229 | ||
Common stock no par value (in dollars per share) | $ / shares | $ 0 | ||
Cash per share election option two (in dollars per share) | $ / shares | $ 5.04 | ||
Share exchange offer two (in shares) | 0.6549 | ||
Total consideration | $ | $ 775 | ||
Cash paid to sellers | $ | 216 | ||
Value of common shares to be issued in acquisition | $ | 367 | ||
Retirement of debt assumed in acquisition | $ | $ 192 | ||
Primo Water Corporation | Primo Acquisition | |||
Subsequent Event [Line Items] | |||
Common stock par value per share (in dollars per share) | $ / shares | $ 0.001 | ||
Common Shares | Primo Acquisition | |||
Subsequent Event [Line Items] | |||
Expected number of shares to be issued in acquisition (in shares) | shares | 26,825,842 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ (109) | $ (138.4) | $ (125.3) |
Reduction in Sales | 0.1 | 0.2 | 0.1 |
Charged to Costs and Expenses | (32.6) | (10.1) | (34.2) |
Charged to Other Accounts | (2.5) | 36.7 | 17 |
Deductions | 13.4 | 2.6 | 4 |
Balance at End of Year | (130.6) | (109) | (138.4) |
Discontinued Operations, Disposed of by Sale | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance | 35.1 | ||
Accounts receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (9.6) | (7.8) | (6.3) |
Reduction in Sales | 0.1 | 0.2 | 0.1 |
Charged to Costs and Expenses | (12.9) | (13.9) | (16.2) |
Charged to Other Accounts | 0.1 | 9.8 | 10.8 |
Deductions | 13.2 | 2.1 | 3.8 |
Balance at End of Year | (9.1) | (9.6) | (7.8) |
Inventories | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (1.4) | (1.5) | (1.3) |
Reduction in Sales | 0 | 0 | 0 |
Charged to Costs and Expenses | 0 | (0.4) | (0.4) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0.2 | 0.5 | 0.2 |
Balance at End of Year | (1.2) | (1.4) | (1.5) |
Deferred tax assets 2 | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (98) | (129.1) | (117.7) |
Reduction in Sales | 0 | 0 | 0 |
Charged to Costs and Expenses | (19.7) | 4.2 | (17.6) |
Charged to Other Accounts | (2.6) | 26.9 | 6.2 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ (120.3) | $ (98) | $ (129.1) |
Uncategorized Items - a201910-k
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 10,500,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 10,500,000 |