Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31410 | |
Entity Registrant Name | PRIMO WATER 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, no par value per share | |
Trading Symbol | PRMW | |
Security Exchange Name | NYSE | |
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 Common Stock, Shares Outstanding (in shares) | 161,132,135 | |
Entity Central Index Key | 0000884713 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Revenue, net | $ 478.4 | $ 474.2 |
Cost of sales | 213.9 | 200.9 |
Gross profit | 264.5 | 273.3 |
Selling, general and administrative expenses | 248 | 255.1 |
Loss on disposal of property, plant and equipment, net | 2.1 | 1.4 |
Acquisition and integration expenses | 1.3 | 20.8 |
Operating income (loss) | 13.1 | (4) |
Other (income) expense, net | (0.4) | 7 |
Interest expense, net | 19 | 19.7 |
Loss from continuing operations before income taxes | (5.5) | (30.7) |
Income tax expense (benefit) | 4.7 | (3.3) |
Net loss from continuing operations | (10.2) | (27.4) |
Net income from discontinued operations, net of income taxes | 0 | 30.9 |
Net (loss) income | $ (10.2) | $ 3.5 |
Basic: | ||
Continuing operations (in USD per share) | $ (0.06) | $ (0.19) |
Discontinued operations (in USD per share) | 0 | 0.22 |
Net (loss) income (in USD per share) | (0.06) | 0.02 |
Diluted: | ||
Continuing operations (in USD per share) | (0.06) | (0.19) |
Discontinued operations (in USD per share) | 0 | 0.22 |
Net (loss) income (in USD per share) | $ (0.06) | $ 0.02 |
Weighted average common shares outstanding (in thousands) | ||
Basic (in shares) | 160,634 | 141,139 |
Diluted (in shares) | 160,634 | 141,139 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (10.2) | $ 3.5 | |
Other comprehensive income (loss): | |||
Currency translation adjustment | 6.5 | (18.7) | |
Loss on derivative instruments, net of tax | 0 | (11.2) | [1] |
Comprehensive loss | $ (3.7) | $ (26.4) | |
[1] | Net of the effect of $3.0 million tax benefit and of $1.3 million associated tax impact that resulted in a decrease to the gain on sale of discontinued operations for the three months ended March 28, 2020. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Tax expense (benefit) | $ (3) |
Discontinued Operations, Held-for-sale or Disposed of by Sale | S&D Disposition | |
Tax expense (benefit) | $ 1.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 03, 2021 | Jan. 02, 2021 |
Current assets | ||
Cash and cash equivalents | $ 102.2 | $ 115.1 |
Accounts receivable, net of allowance of $22.3 ($20.7 as of January 2, 2021) | 230.8 | 222.3 |
Inventories | 79.9 | 83.8 |
Prepaid expenses and other current assets | 22.7 | 21.3 |
Total current assets | 435.6 | 442.5 |
Property, plant and equipment, net | 676 | 685.6 |
Operating lease right-of-use-assets | 176.4 | 180.6 |
Goodwill | 1,276.8 | 1,284.3 |
Intangible assets, net | 969.5 | 987.6 |
Other long-term assets, net | 24.1 | 24.1 |
Total assets | 3,558.4 | 3,604.7 |
Current liabilities | ||
Short-term borrowings | 115.5 | 107.7 |
Current maturities of long-term debt | 15.2 | 17.9 |
Accounts payable and accrued liabilities | 370 | 387.7 |
Current operating lease obligations | 36.1 | 35.5 |
Total current liabilities | 536.8 | 548.8 |
Long-term debt | 1,321 | 1,345.1 |
Operating lease obligations | 143.3 | 148 |
Deferred tax liabilities | 152.3 | 148.1 |
Other long-term liabilities | 68.3 | 67.8 |
Total liabilities | 2,221.7 | 2,257.8 |
Shareholders' Equity | ||
Common shares, no par value - 160,818,184 (January 2, 2021 - 160,406,464) shares issued | 1,274.2 | 1,268 |
Additional paid-in-capital | 81.6 | 84.5 |
Retained earnings | 61.1 | 81.1 |
Accumulated other comprehensive loss | (80.2) | (86.7) |
Total shareholders' equity | 1,336.7 | 1,346.9 |
Total liabilities and shareholders' equity | $ 3,558.4 | $ 3,604.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 03, 2021 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 22.3 | $ 20.7 |
Common shares, par value (in USD per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 160,818,184 | 160,406,464 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from operating activities of continuing operations: | ||
Net (loss) income | $ (10.2) | $ 3.5 |
Net income from discontinued operations, net of income taxes | 0 | 30.9 |
Net loss from continuing operations | (10.2) | (27.4) |
Adjustments to reconcile net loss from continuing operations to cash flows from operating activities: | ||
Depreciation and amortization | 53.1 | 45 |
Amortization of financing fees | 0.8 | 0.9 |
Share-based compensation expense | 2.4 | 2.4 |
Expense (benefit) for deferred income taxes | 3.6 | (3.5) |
Loss on disposal of property, plant and equipment, net | 2.1 | 1.4 |
Other non-cash items | 0.2 | 6 |
Change in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (9.7) | (28.9) |
Inventories | 3.2 | (0.6) |
Prepaid expenses and other current assets | (2.2) | (1.5) |
Other assets | 0.1 | 0.7 |
Accounts payable and accrued liabilities and other liabilities | (14.7) | 10.2 |
Net cash provided by operating activities from continuing operations | 28.7 | 4.7 |
Cash flows from investing activities of continuing operations: | ||
Acquisitions, net of cash received | 0 | (422.6) |
Additions to property, plant and equipment | (27) | (34.9) |
Additions to intangible assets | (2.3) | (3) |
Proceeds from sale of property, plant and equipment | 0.1 | 0.3 |
Net cash used in investing activities from continuing operations | (29.2) | (460.2) |
Cash flows from financing activities of continuing operations: | ||
Payments of long-term debt | (3.4) | (2.7) |
Proceeds from short-term borrowings | 0 | 135.9 |
Payments on short-term borrowings | 0 | (109.9) |
Issuance of common shares | 1 | 0.6 |
Common shares repurchased and canceled | (3.1) | (31.9) |
Financing fees | (0.7) | (2.5) |
Equity issuance fees | 0 | (1.1) |
Dividends paid to common shareholders | (9.7) | (9.8) |
Payment of deferred consideration for acquisitions | (1.7) | (0.2) |
Other financing activities | 5.2 | 8.8 |
Net cash used in financing activities from continuing operations | (12.4) | (12.8) |
Cash flows from discontinued operations: | ||
Operating activities of discontinued operations | 0.8 | (17.3) |
Investing activities of discontinued operations | 0 | 394.5 |
Financing activities of discontinued operations | 0 | (0.1) |
Net cash provided by discontinued operations | 0.8 | 377.1 |
Effect of exchange rate changes on cash | (0.8) | (2.1) |
Net decrease in cash, cash equivalents and restricted cash | (12.9) | (93.3) |
Cash and cash equivalents and restricted cash, beginning of period | 115.1 | 205.5 |
Cash and cash equivalents and restricted cash, end of period | 102.2 | 112.2 |
Supplemental Non-cash Investing and Financing Activities: | ||
Shares issued in connection with business combination | 0 | 377.6 |
Accrued deferred financing fees | 0.1 | 0.8 |
Dividends payable issued through accounts payable and accrued liabilities | 0.1 | 0.2 |
Additions to property, plant and equipment through accounts payable and accrued liabilities and other liabilities | 17.9 | 11.5 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 23.3 | 15.7 |
Cash paid for income taxes, net | $ 1.9 | $ 2.4 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Equity Incentive Plan | Cumulative effect of changes in accounting principle, net of taxes | Common Shares | Common SharesEquity Incentive Plan | Additional Paid-in-Capital | Additional Paid-in-CapitalEquity Incentive Plan | Retained Earnings | Retained EarningsCumulative effect of changes in accounting principle, net of taxes | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 28, 2019 | 134,803,000 | |||||||||
Beginning Balance at Dec. 28, 2019 | $ 1,166.2 | $ (4.3) | $ 892.3 | $ 77.4 | $ 265 | $ (4.3) | $ (68.5) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 3.5 | 3.5 | ||||||||
Other comprehensive income (loss), net of tax | (29.9) | (29.9) | ||||||||
Common shares dividends ($0.06 per common share) | (9.6) | (9.6) | ||||||||
Share-based compensation | 3.1 | 3.1 | ||||||||
Common shares issued in connection with business combination and assumed vested awards, net of equity issuance costs of $1.1 million (in shares) | 26,497,000 | |||||||||
Common shares issued in connection with business combination and assumed vested awards, net of equity issuance costs of $1.1 million | 379.4 | $ 376.5 | 2.9 | |||||||
Common shares repurchased and canceled (in shares) | (2,776,000) | |||||||||
Common shares repurchased and canceled | (31.9) | $ (22.2) | (9.7) | |||||||
Common shares issued - Equity Incentive Plan (in shares) | 1,277,000 | |||||||||
Common shares issued - Equity Incentive Plan | $ 3.9 | $ 15.7 | $ (11.8) | |||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 25,000 | |||||||||
Common shares issued - Employee Stock Purchase Plan | 0.3 | $ 0.4 | (0.1) | |||||||
Ending Balance (in shares) at Mar. 28, 2020 | 159,826,000 | |||||||||
Ending Balance at Mar. 28, 2020 | $ 1,480.7 | $ 1,262.7 | 71.5 | 244.9 | (98.4) | |||||
Beginning Balance (in shares) at Jan. 02, 2021 | 160,406,464 | 160,406,000 | ||||||||
Beginning Balance at Jan. 02, 2021 | $ 1,346.9 | $ 1,268 | 84.5 | 81.1 | (86.7) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (10.2) | (10.2) | ||||||||
Other comprehensive income (loss), net of tax | 6.5 | 6.5 | ||||||||
Common shares dividends ($0.06 per common share) | (9.8) | (9.8) | ||||||||
Share-based compensation | 2.4 | 2.4 | ||||||||
Common shares repurchased and canceled (in shares) | (179,000) | |||||||||
Common shares repurchased and canceled | (3.1) | $ (3.1) | ||||||||
Common shares issued - Equity Incentive Plan (in shares) | 565,000 | |||||||||
Common shares issued - Equity Incentive Plan | $ 3.6 | $ 8.9 | $ (5.3) | |||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 26,000 | |||||||||
Common shares issued - Employee Stock Purchase Plan | $ 0.4 | $ 0.4 | ||||||||
Ending Balance (in shares) at Apr. 03, 2021 | 160,818,184 | 160,818,000 | ||||||||
Ending Balance at Apr. 03, 2021 | $ 1,336.7 | $ 1,274.2 | $ 81.6 | $ 61.1 | $ (80.2) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared per share (in USD per share) | $ / shares | $ 0.06 |
Common shares issued in connection with business combination and assumed vested awards, equity issuance costs | $ | $ 1.1 |
Business and Recent Accounting
Business and Recent Accounting Pronouncements | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Recent Accounting Pronouncements | Business and Recent Accounting Pronouncements Description of Business As used herein, “Primo,” “the Company,” “our Company,” “Primo Water Corporation,” “we,” “us,” or “our” refers to Primo Water Corporation, together with its consolidated subsidiaries. Primo is a leading pure-play water solutions provider in North America, Europe and Israel. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through retailers and online at various price points. The dispensers help increase household penetration, which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer’s door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position. Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association in North America as well as with Watercoolers Europe, which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection. During 2020, our U.S. operations achieved a carbon neutral certification under the CarbonNeutral Protocol, an international standard administered by Natural Capital Partners. This certification is in addition to the certifications in our European operations where we have maintained carbon neutrality for the past nine Basis of Presentation The accompanying interim unaudited Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of our results of operations for the interim periods reported and of our financial condition as of the date of the interim balance sheet have been included. The Consolidated Balance Sheet as of January 2, 2021 included herein was derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (our “2020 Annual Report”). This Quarterly Report on Form 10-Q should be read in conjunction with the annual audited Consolidated Financial Statements and accompanying notes in our 2020 Annual Report. The accounting policies used in these interim Consolidated Financial Statements are consistent with those used in the annual Consolidated Financial Statements. The presentation of these interim Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. COVID-19 Pandemic In response to the novel coronavirus (“COVID-19”) pandemic, certain government authorities have enacted programs which provide various economic stimulus measures, including several tax provisions. Among the business tax provisions is the deferral of certain payroll and other tax remittances to future years and wage subsidies as reimbursement for a portion of certain furloughed employees’ salaries. During the three months ended April 3, 2021, we received wage subsidies under these programs totaling $1.4 million. We review our eligibility for these programs for each qualifying period and account for such wage subsidies on an accrual basis when the conditions for eligibility are met. We have adopted an accounting policy to present wage subsidies as a reduction of selling, general and administrative (“SG&A”) expenses. In addition, deferred payroll and other taxes totaling $8.6 million and $9.0 million were included in accounts payable and accrued liabilities and $7.5 million was included in other long-term liabilities on our Consolidated Balance Sheets as of April 3, 2021 and January 2, 2021, respectively. Significant Accounting Policies Included in Note 1 of our 2020 Annual Report is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the financial results of the Company. 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 North America and Rest of World reporting segment branch locations to the end-user consumer of those products are recorded in SG&A expenses. All other costs incurred in the shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A expenses were $110.1 million and $120.0 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. Recently adopted accounting pronouncements Update ASU 2018-14 – Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) In August 2018, the Financial Accounting Standards Board (“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. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Recently issued accounting pronouncements Update ASU 2020-04 – Reference Rate Reform (Topic 848) In March 2020, the FASB issued guidance which provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference LIBOR or any other reference rates expected to be discontinued because of reference rate reform. This guidance is effective as of March 12, 2020 through December 31, 2022 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through April 3, 2021 but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Apr. 03, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In February 2020, the Company completed the sale of our coffee, tea and extract solutions business, S. & D. Coffee, Inc. (“S&D”) to Westrock Coffee Company, LLC, a Delaware limited liability company (“Westrock”), pursuant to which Westrock acquired all of the issued and outstanding equity of S&D from the Company (“S&D Divestiture”). The consideration was $405.0 million paid at closing in cash, with customary post-closing working capital adjustments, which were resolved in June 2020 by payment of $1.5 million from the Company to Westrock. The Company used the proceeds of the S&D Divestiture to finance a portion of the acquisition of Primo Water Corporation (“Legacy Primo” and such transaction, the “Legacy Primo Acquisition”). See Note 4 to the Consolidated Financial Statements for additional information on the Legacy Primo Acquisition. The major components of net income from discontinued operations, net of income taxes in the accompanying Consolidated Statement of Operations include the following: For the Three Months Ended (in millions of U.S. dollars) March 28, 2020 Revenue, net 1 $ 97.1 Cost of sales 71.1 Operating loss from discontinued operations (0.5) Gain on sale of discontinued operations 60.5 Net income from discontinued operations, before income taxes 59.8 Income tax expense 2 28.9 Net income from discontinued operations, net of income taxes $ 30.9 ______________________ 1 Includes $1.0 million of related party sales to continuing operations for the three months ended March 28, 2020. 2 The S&D Divestiture resulted in tax expense on the gain on sale of $28.5 million and utilized a significant portion of the existing U.S. net operating loss carry-forwards. |
Revenue
Revenue | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our principal sources of revenue are from bottled water delivery direct to consumers primarily in North America and Europe and from providing multi-gallon purified bottled water, self-service refill drinking water and water dispensers through retailers in North America. 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 customer 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 our 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, we estimate the rebate or discount that will be granted to the customer and record an accrual upon invoicing. These estimated rebates or discounts are included in the transaction price of our 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. Accrued sales incentives were $10.6 million and $9.9 million on April 3, 2021 and January 2, 2021, 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 we recognize 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 our 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 April 3, 2021 and January 2, 2021 were $14.2 million and $11.7 million, respectively. The amount of revenue recognized in the three months ended April 3, 2021 that was included in the January 2, 2021 deferred revenue balance was $8.1 million. The Company does not have any material contract assets as of April 3, 2021 and January 2, 2021. Disaggregated Revenue In general, our business segmentation is aligned according to the nature and economic characteristics of our 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 Three Months Ended (in millions of U.S. dollars) April 3, 2021 March 28, 2020 United States $ 349.9 $ 334.6 United Kingdom 36.7 42.5 Canada 15.9 16.1 All other countries 75.9 81.0 Total $ 478.4 $ 474.2 |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 03, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Legacy Primo Acquisition In March 2020, the Company completed the Legacy Primo Acquisition, adding North America’s leading single source provider of multi-gallon purified bottled water, self-service refill drinking water and water dispensers sold through major retailers to the Company’s catalog of residential and commercial bottled water delivery businesses in North America and Europe. The Legacy Primo Acquisition was structured as an exchange offer to purchase all of the outstanding shares of common stock of Legacy Primo for per-share consideration of (i) $14.00 in cash, (ii) 1.0229 common shares plus cash in lieu of any fractional common share, or (iii) $5.04 in cash and 0.6549 common shares, at the election of Legacy Primo’s stockholders, subject to the proration procedures set forth in the merger agreement. Immediately following the consummation of the exchange offer, we indirectly acquired the remaining Legacy Primo shares through a merger between Legacy Primo and one of our wholly-owned subsidiaries. The total cash and stock consideration paid by us in the Legacy Primo Acquisition is summarized below: (in millions of U.S. dollars, except share and per share amounts) Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) $ 377.6 Cash to holders of Legacy Primo common stock 216.1 Cash paid to retire outstanding indebtedness on behalf of Legacy Primo 196.9 Settlement of pre-existing relationship 4.7 Fair value of replacement common share options and restricted stock units for Legacy Primo awards 2.9 Total consideration $ 798.2 The table below summarizes the previously reported estimated acquisition date fair values, measurement period adjustments recorded, and the final purchase price allocation of the assets acquired and the liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.3 $ — $ 1.3 Accounts receivable 21.6 — 21.6 Inventory 18.4 — 18.4 Prepaid expenses and other current assets 5.3 — 5.3 Property, plant and equipment 107.8 — 107.8 Operating lease right-of-use-assets 4.3 — 4.3 Goodwill 301.2 1.3 302.5 Intangible assets 421.6 — 421.6 Other assets 0.4 — 0.4 Current maturities of long-term debt (2.3) — (2.3) Accounts payable and accrued liabilities (42.0) (0.2) (42.2) Current operating lease obligations (1.4) — (1.4) Long-term debt (5.6) — (5.6) Operating lease obligations (3.0) — (3.0) Deferred tax liabilities (27.6) (1.1) (28.7) Other long-term liabilities (1.8) — (1.8) Total $ 798.2 $ — $ 798.2 Measurement period adjustments recorded during the three months ended April 3, 2021 include a deferred tax adjustment related to the final valuation and an adjustment to accounts payable and accrued liabilities based on a review of the respective fair value as of the date of the Legacy Primo Acquisition. The measurement period adjustment did not have a material effect on our results of operations in prior periods. Supplemental Pro Forma Data (unaudited) The following unaudited pro forma financial information for the three months ended March 28, 2020 represent the combined results of our operations as if the Legacy Primo Acquisition had occurred on December 30, 2018. For the Three Months Ended (in millions of U.S. dollars, except per share amounts) March 28, 2020 Revenue $ 514.7 Net loss from continuing operations $ (13.0) Net income $ 17.9 Net loss per common share from continuing operations, diluted $ (0.09) Net income per common share, diluted $ 0.13 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $4.7 million on pre-tax loss from continuing operations of $5.5 million for the three months ended April 3, 2021, as compared to income tax benefit of $3.3 million on pre-tax loss from continuing operations of $30.7 million in the comparable prior year period. The effective income tax rates for the three months ended April 3, 2021 were (85.5)% compared to 10.7% in the comparable prior year periods. The effective tax rate for the three months ended April 3, 2021 varied from the effective tax rate in the comparable prior year period due primarily to increased earnings in taxable jurisdictions. |
Net (Loss) Income per Common Sh
Net (Loss) Income per Common Share | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Common Share | Net (Loss) Income per Common Share Net (Loss) Income per Common Share Basic net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the periods presented. Diluted net (loss) income per common share is calculated by dividing net (loss) income 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 (loss) income per common share computations for the periods indicated: For the Three Months Ended April 3, 2021 March 28, 2020 Numerator (in millions of U.S. dollars): Net loss from continuing operations $ (10.2) $ (27.4) Net income from discontinued operations — 30.9 Net (loss) income (10.2) 3.5 Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 160,634 141,139 Basic Earnings Per Share: Continuing operations (0.06) (0.19) Discontinued operations — 0.22 Net (loss) income (0.06) 0.02 Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 160,634 141,139 Dilutive effect of Stock Options — — Dilutive effect of Performance-based RSUs — — Dilutive effect of Time-based RSUs — — Weighted average common shares outstanding - diluted 160,634 141,139 Diluted Earnings Per Share: Continuing operations (0.06) (0.19) Discontinued operations — 0.22 Net (loss) income (0.06) 0.02 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 Three Months Ended (in thousands) April 3, 2021 March 28, 2020 Stock Options 7,206 6,477 Performance-based RSUs 1 838 750 Time-based RSUs 485 557 ______________________ |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our broad portfolio of products includes bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, sparkling and flavored water, mineral water, filtration equipment, and coffee. (in millions of U.S. dollars) North America Rest of World All Other Total For the Three Months Ended April 3, 2021 Revenue, net $ 365.5 $ 112.9 $ — $ 478.4 Depreciation and amortization 37.8 14.9 0.4 53.1 Operating income (loss) 26.1 (3.6) (9.4) 13.1 Additions to property, plant and equipment 20.2 6.7 0.1 27.0 (in millions of U.S. dollars) North America Rest of World All Other Total For the Three Months Ended March 28, 2020 Revenue, net $ 350.7 $ 123.5 $ — $ 474.2 Depreciation and amortization 30.6 14.3 0.1 45.0 Operating income (loss) 1 23.1 (2.4) (24.7) (4.0) Additions to property, plant and equipment 23.6 11.3 — 34.9 ______________________ 1 We revised the allocation of information technology costs from the All Other category to our North America and Rest of World reporting segments to reflect how the Chief Executive Officer, who is our chief operating decision maker, measures the performance of our segments. As a result of the change, operating income for the prior period has been recast to decrease operating income in our North America reporting segment by $0.6 million, increase operating loss in our Rest of World reporting segment by $1.9 million, and decrease operating loss in the All Other category by $2.5 million for the three months ended March 28, 2020. Revenues by channel by reporting segment were as follows: For the Three Months Ended April 3, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 238.8 $ 48.8 $ — $ 287.6 Water Refill/Water Filtration 45.1 7.9 — 53.0 Other Water 40.9 15.4 — 56.3 Water Dispensers 15.0 — — 15.0 Other 25.7 40.8 — 66.5 Total $ 365.5 $ 112.9 $ — $ 478.4 For the Three Months Ended March 28, 2020 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 237.4 $ 57.8 $ — $ 295.2 Water Refill/Water Filtration 23.7 7.1 — 30.8 Other Water 42.2 13.2 — 55.4 Water Dispensers 5.9 — — 5.9 Other 41.5 45.4 — 86.9 Total $ 350.7 $ 123.5 $ — $ 474.2 |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes inventories as of April 3, 2021 and January 2, 2021: (in millions of U.S. dollars) April 3, 2021 January 2, 2021 Raw materials $ 41.2 $ 43.6 Finished goods 27.6 28.0 Resale items 10.0 11.1 Other 1.1 1.1 Total $ 79.9 $ 83.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Changes in accumulated other comprehensive (loss) income (“AOCI”) by component for the three months ended April 3, 2021 and March 28, 2020 were as follows: (in millions of U.S. dollars) 1 Gains and Losses Pension Currency Total Beginning balance December 28, 2019 $ 11.2 $ (1.0) $ (78.7) $ (68.5) OCI before reclassifications (8.7) — (18.7) (27.4) Amounts reclassified from AOCI (2.5) — — (2.5) Net current-period OCI (11.2) — (18.7) (29.9) Ending balance March 28, 2020 $ — $ (1.0) $ (97.4) $ (98.4) Beginning balance January 2, 2021 $ — $ (1.1) $ (85.6) $ (86.7) OCI before reclassifications — — 6.5 6.5 Amounts reclassified from AOCI — — — — Net current-period OCI — — 6.5 6.5 Ending balance April 3, 2021 $ — $ (1.1) $ (79.1) $ (80.2) ______________________ 1 All amounts are net of tax. Amounts in parentheses indicate debits. The following table summarizes the amounts reclassified from AOCI for the three months ended April 3, 2021 and March 28, 2020, respectively: (in millions of U.S. dollars) For the Three Months Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 April 3, 2021 March 28, 2020 Gains and losses on derivative instruments Foreign currency and commodity hedges $ — $ 0.1 Cost of sales Commodity hedges 2 — 2.4 Gain on sale of discontinued operations — 2.5 Total before taxes — — Tax expense or (benefit) $ — $ 2.5 Net of tax Amortization of pension benefit plan items Actuarial (losses)/gains 3 $ — $ — Prior service costs 3 — — — — Total before taxes — — Tax expense or (benefit) $ — $ — Net of tax Total reclassifications for the period $ — $ 2.5 Net of tax ______________________ 1 Amounts in parentheses indicate debits. 2 Net of $1.3 million of associated tax impact that resulted in a decrease to the gain on the sale of discontinued operations for the three months ended March 28, 2020. 3 These AOCI components are included in the computation of net periodic pension cost. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2021 | |
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. We had $50.6 million in standby letters of credit outstanding as of April 3, 2021 ( $50.6 million as of January 2, 2021). Guarantees After 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 in January 2018, we have continued to provide contractual payment guarantees to two third-party lessors of certain real property used in these businesses. The leases were conveyed to the buyer as part of the sale, but our guarantee was not released by the landlord. The two lease agreements mature in 2027 and 2028. The maximum potential amount of undiscounted future payments under the guarantee is approximately $18.4 million as of April 3, 2021, which was calculated based on the minimum lease payments of the leases over the remaining term of the agreements. The sale documents require the buyer to pay all post-closing obligations under these conveyed leases, and to reimburse us if the landlord calls on a guarantee. The buyer has also agreed to a covenant to negotiate with the landlords for a release of our guarantees. Discussions with the landlords are ongoing. We currently do not believe it is probable we would be required to perform under any of these guarantees or any of the underlying obligations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures 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. 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 April 3, 2021 and January 2, 2021 were as follows: April 3, 2021 January 2, 2021 (in millions of U.S. dollars) Carrying Fair Carrying Fair 5.500% senior notes due in 2025 1, 2 743.3 763.8 743.0 767.2 3.875% senior notes due in 2028 1, 2 521.1 532.2 543.6 559.9 Total $ 1,264.4 $ 1,296.0 $ 1,286.6 $ 1,327.1 ______________________ 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 April 3, 2021 and January 2, 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 03, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 30, 2021, we issued $750.0 million of 4.375% senior notes due April 30, 2029 (“2029 Notes”) to qualified purchasers in a private placement offering under Rule 144A under the Securities Act of 1933, as amended (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 2029 Notes were issued by our wholly-owned subsidiary Primo Water Holdings Inc. The 2029 Notes are guaranteed by the Company and certain subsidiaries that are currently obligors under the $350.0 million senior secured revolving credit facility, the $750.0 million of 5.500% senior notes due April 1, 2025 (“2025 Notes”) and the €450.0 million of 3.875% senior notes due October 31, 2028. The 2029 Notes will mature on April 30, 2029 and interest is payable semi-annually on April 30th and October 31st of each year commencing on October 31, 2021. The proceeds of the 2029 Notes, along with available cash on hand, were used to redeem in full the 2025 Notes and pay related premiums, fees and expenses. We incurred approximately $11.2 million of financing fees for the issuance of the 2029 Notes. The financing fees are being amortized using the effective interest method over an eight-year period, which represents the term to maturity of the 2029 Notes. The redemption of the 2025 Notes included $20.6 million in premium payments and accrued interest of $3.6 million. On May 4, 2021, our Board of Directors declared a dividend of $0.06 per share on common shares, payable in cash on June 16, 2021 to shareowners of record at the close of business on June 4, 2021. On May 4, 2021, our Board of Directors approved a share repurchase program for up to $50.0 million of our outstanding common shares over a 12-month period commencing on May 10, 2021. |
Business and Recent Accountin_2
Business and Recent Accounting Pronouncements - (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of our results of operations for the interim periods reported and of our financial condition as of the date of the interim balance sheet have been included. The Consolidated Balance Sheet as of January 2, 2021 included herein was derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (our “2020 Annual Report”). This Quarterly Report on Form 10-Q should be read in conjunction with the annual audited Consolidated Financial Statements and accompanying notes in our 2020 Annual Report. The accounting policies used in these interim Consolidated Financial Statements are consistent with those used in the annual Consolidated Financial Statements. |
Cost of sales | Cost of salesWe 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 North America and Rest of World reporting segment branch locations to the end-user consumer of those products are recorded in SG&A expenses. All other costs incurred in the shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A expenses were $110.1 million and $120.0 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements Update ASU 2018-14 – Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) In August 2018, the Financial Accounting Standards Board (“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. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Recently issued accounting pronouncements Update ASU 2020-04 – Reference Rate Reform (Topic 848) In March 2020, the FASB issued guidance which provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference LIBOR or any other reference rates expected to be discontinued because of reference rate reform. This guidance is effective as of March 12, 2020 through December 31, 2022 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through April 3, 2021 but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Revenue | 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 customer 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. |
Discontinued Operations - (Tabl
Discontinued Operations - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The major components of net income from discontinued operations, net of income taxes in the accompanying Consolidated Statement of Operations include the following: For the Three Months Ended (in millions of U.S. dollars) March 28, 2020 Revenue, net 1 $ 97.1 Cost of sales 71.1 Operating loss from discontinued operations (0.5) Gain on sale of discontinued operations 60.5 Net income from discontinued operations, before income taxes 59.8 Income tax expense 2 28.9 Net income from discontinued operations, net of income taxes $ 30.9 ______________________ 1 Includes $1.0 million of related party sales to continuing operations for the three months ended March 28, 2020. 2 The S&D Divestiture resulted in tax expense on the gain on sale of $28.5 million and utilized a significant portion of the existing U.S. net operating loss carry-forwards. |
Revenue - (Tables)
Revenue - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Geographic Area | Further disaggregation of net revenue to external customers by geographic area based on customer location is as follows: For the Three Months Ended (in millions of U.S. dollars) April 3, 2021 March 28, 2020 United States $ 349.9 $ 334.6 United Kingdom 36.7 42.5 Canada 15.9 16.1 All other countries 75.9 81.0 Total $ 478.4 $ 474.2 |
Acquisitions - (Tables)
Acquisitions - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Business Combinations [Abstract] | |
Schedule of Total Cash and Stock Consideration Paid | The total cash and stock consideration paid by us in the Legacy Primo Acquisition is summarized below: (in millions of U.S. dollars, except share and per share amounts) Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) $ 377.6 Cash to holders of Legacy Primo common stock 216.1 Cash paid to retire outstanding indebtedness on behalf of Legacy Primo 196.9 Settlement of pre-existing relationship 4.7 Fair value of replacement common share options and restricted stock units for Legacy Primo awards 2.9 Total consideration $ 798.2 |
Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The table below summarizes the previously reported estimated acquisition date fair values, measurement period adjustments recorded, and the final purchase price allocation of the assets acquired and the liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.3 $ — $ 1.3 Accounts receivable 21.6 — 21.6 Inventory 18.4 — 18.4 Prepaid expenses and other current assets 5.3 — 5.3 Property, plant and equipment 107.8 — 107.8 Operating lease right-of-use-assets 4.3 — 4.3 Goodwill 301.2 1.3 302.5 Intangible assets 421.6 — 421.6 Other assets 0.4 — 0.4 Current maturities of long-term debt (2.3) — (2.3) Accounts payable and accrued liabilities (42.0) (0.2) (42.2) Current operating lease obligations (1.4) — (1.4) Long-term debt (5.6) — (5.6) Operating lease obligations (3.0) — (3.0) Deferred tax liabilities (27.6) (1.1) (28.7) Other long-term liabilities (1.8) — (1.8) Total $ 798.2 $ — $ 798.2 |
Schedule of Pro Forma Financial Information | The following unaudited pro forma financial information for the three months ended March 28, 2020 represent the combined results of our operations as if the Legacy Primo Acquisition had occurred on December 30, 2018. For the Three Months Ended (in millions of U.S. dollars, except per share amounts) March 28, 2020 Revenue $ 514.7 Net loss from continuing operations $ (13.0) Net income $ 17.9 Net loss per common share from continuing operations, diluted $ (0.09) Net income per common share, diluted $ 0.13 |
Net (Loss) Income per Common _2
Net (Loss) Income per Common Share - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
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 (loss) income per common share computations for the periods indicated: For the Three Months Ended April 3, 2021 March 28, 2020 Numerator (in millions of U.S. dollars): Net loss from continuing operations $ (10.2) $ (27.4) Net income from discontinued operations — 30.9 Net (loss) income (10.2) 3.5 Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 160,634 141,139 Basic Earnings Per Share: Continuing operations (0.06) (0.19) Discontinued operations — 0.22 Net (loss) income (0.06) 0.02 Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 160,634 141,139 Dilutive effect of Stock Options — — Dilutive effect of Performance-based RSUs — — Dilutive effect of Time-based RSUs — — Weighted average common shares outstanding - diluted 160,634 141,139 Diluted Earnings Per Share: Continuing operations (0.06) (0.19) Discontinued operations — 0.22 Net (loss) income (0.06) 0.02 |
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 Three Months Ended (in thousands) April 3, 2021 March 28, 2020 Stock Options 7,206 6,477 Performance-based RSUs 1 838 750 Time-based RSUs 485 557 ______________________ |
Segment Reporting - (Tables)
Segment Reporting - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Operating Segment | (in millions of U.S. dollars) North America Rest of World All Other Total For the Three Months Ended April 3, 2021 Revenue, net $ 365.5 $ 112.9 $ — $ 478.4 Depreciation and amortization 37.8 14.9 0.4 53.1 Operating income (loss) 26.1 (3.6) (9.4) 13.1 Additions to property, plant and equipment 20.2 6.7 0.1 27.0 (in millions of U.S. dollars) North America Rest of World All Other Total For the Three Months Ended March 28, 2020 Revenue, net $ 350.7 $ 123.5 $ — $ 474.2 Depreciation and amortization 30.6 14.3 0.1 45.0 Operating income (loss) 1 23.1 (2.4) (24.7) (4.0) Additions to property, plant and equipment 23.6 11.3 — 34.9 ______________________ 1 We revised the allocation of information technology costs from the All Other category to our North America and Rest of World reporting segments to reflect how the Chief Executive Officer, who is our chief operating decision maker, measures the performance of our segments. As a result of the change, operating income for the prior period has been recast to decrease operating income in our North America reporting segment by $0.6 million, increase operating loss in our Rest of World reporting segment by $1.9 million, and decrease operating loss in the All Other category by $2.5 million for the three months ended March 28, 2020. |
Revenues by Channel Reporting Segment | Revenues by channel by reporting segment were as follows: For the Three Months Ended April 3, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 238.8 $ 48.8 $ — $ 287.6 Water Refill/Water Filtration 45.1 7.9 — 53.0 Other Water 40.9 15.4 — 56.3 Water Dispensers 15.0 — — 15.0 Other 25.7 40.8 — 66.5 Total $ 365.5 $ 112.9 $ — $ 478.4 For the Three Months Ended March 28, 2020 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 237.4 $ 57.8 $ — $ 295.2 Water Refill/Water Filtration 23.7 7.1 — 30.8 Other Water 42.2 13.2 — 55.4 Water Dispensers 5.9 — — 5.9 Other 41.5 45.4 — 86.9 Total $ 350.7 $ 123.5 $ — $ 474.2 |
Inventories - (Tables)
Inventories - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes inventories as of April 3, 2021 and January 2, 2021: (in millions of U.S. dollars) April 3, 2021 January 2, 2021 Raw materials $ 41.2 $ 43.6 Finished goods 27.6 28.0 Resale items 10.0 11.1 Other 1.1 1.1 Total $ 79.9 $ 83.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income by Component | Changes in accumulated other comprehensive (loss) income (“AOCI”) by component for the three months ended April 3, 2021 and March 28, 2020 were as follows: (in millions of U.S. dollars) 1 Gains and Losses Pension Currency Total Beginning balance December 28, 2019 $ 11.2 $ (1.0) $ (78.7) $ (68.5) OCI before reclassifications (8.7) — (18.7) (27.4) Amounts reclassified from AOCI (2.5) — — (2.5) Net current-period OCI (11.2) — (18.7) (29.9) Ending balance March 28, 2020 $ — $ (1.0) $ (97.4) $ (98.4) Beginning balance January 2, 2021 $ — $ (1.1) $ (85.6) $ (86.7) OCI before reclassifications — — 6.5 6.5 Amounts reclassified from AOCI — — — — Net current-period OCI — — 6.5 6.5 Ending balance April 3, 2021 $ — $ (1.1) $ (79.1) $ (80.2) ______________________ 1 All amounts are net of tax. Amounts in parentheses indicate debits. |
Summary of Amounts Reclassified from AOCI | The following table summarizes the amounts reclassified from AOCI for the three months ended April 3, 2021 and March 28, 2020, respectively: (in millions of U.S. dollars) For the Three Months Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 April 3, 2021 March 28, 2020 Gains and losses on derivative instruments Foreign currency and commodity hedges $ — $ 0.1 Cost of sales Commodity hedges 2 — 2.4 Gain on sale of discontinued operations — 2.5 Total before taxes — — Tax expense or (benefit) $ — $ 2.5 Net of tax Amortization of pension benefit plan items Actuarial (losses)/gains 3 $ — $ — Prior service costs 3 — — — — Total before taxes — — Tax expense or (benefit) $ — $ — Net of tax Total reclassifications for the period $ — $ 2.5 Net of tax ______________________ 1 Amounts in parentheses indicate debits. 2 Net of $1.3 million of associated tax impact that resulted in a decrease to the gain on the sale of discontinued operations for the three months ended March 28, 2020. 3 These AOCI components are included in the computation of net periodic pension cost. |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
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 April 3, 2021 and January 2, 2021 were as follows: April 3, 2021 January 2, 2021 (in millions of U.S. dollars) Carrying Fair Carrying Fair 5.500% senior notes due in 2025 1, 2 743.3 763.8 743.0 767.2 3.875% senior notes due in 2028 1, 2 521.1 532.2 543.6 559.9 Total $ 1,264.4 $ 1,296.0 $ 1,286.6 $ 1,327.1 ______________________ 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 April 3, 2021 and January 2, 2021. |
Business and Recent Accountin_3
Business and Recent Accounting Pronouncements - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Apr. 03, 2021USD ($)countrylocation | Mar. 28, 2020USD ($) | Jan. 02, 2021USD ($) | |
Business And Basis Of Presentation [Line Items] | |||
Number of countries, country footprint | country | 21 | ||
Accounts payable and accrued liabilities | $ 370 | $ 387.7 | |
Other long-term liabilities | 68.3 | 67.8 | |
COVID-19 | |||
Business And Basis Of Presentation [Line Items] | |||
Wage subsidies received | 1.4 | ||
Accounts payable and accrued liabilities | 8.6 | 9 | |
Other long-term liabilities | $ 7.5 | $ 7.5 | |
Europe | |||
Business And Basis Of Presentation [Line Items] | |||
Number of years carbon neutrality maintained | 9 years | ||
Water Exchange and Water Refill | |||
Business And Basis Of Presentation [Line Items] | |||
Number of locations (over) | location | 13,000 | ||
Water Refill | |||
Business And Basis Of Presentation [Line Items] | |||
Number of locations | location | 22,000 | ||
Shipping and Handling | Selling, General and Administrative Expenses | Route Based Services and Coffee, Tea and Extract Solutions | |||
Business And Basis Of Presentation [Line Items] | |||
Shipping and handling costs | $ 110.1 | $ 120 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - S&D Disposition - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Feb. 28, 2020 | Jun. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Aggregate deal consideration, paid in cash | $ 405 | |
Payments, post-closing working capital adjustments | $ 1.5 |
Discontinued Operations - Major
Discontinued Operations - Major Components of Net Income from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations, net of income taxes | $ 0 | $ 30.9 |
Revenue, net | 478.4 | 474.2 |
Income tax expense | $ 4.7 | (3.3) |
Discontinued Operations, Disposed of by Sale | S&D Disposition | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | 97.1 | |
Cost of sales | 71.1 | |
Operating loss from discontinued operations | (0.5) | |
Gain on sale of discontinued operations | 60.5 | |
Net income from discontinued operations, before income taxes | 59.8 | |
Income tax expense | 28.9 | |
Net income from discontinued operations, net of income taxes | 30.9 | |
Income tax expense | 28.5 | |
Discontinued Operations, Disposed of by Sale | S&D Disposition | Related Party | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | $ 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Accrued sales incentives | $ 10.6 | $ 9.9 |
Deferred revenue | 14.2 | $ 11.7 |
Revenue recognized | $ 8.1 |
Revenue - Schedule of Revenue t
Revenue - Schedule of Revenue to External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 478.4 | $ 474.2 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total | 349.9 | 334.6 |
United Kingdom | ||
Disaggregation of Revenue [Line Items] | ||
Total | 36.7 | 42.5 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total | 15.9 | 16.1 |
All other countries | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 75.9 | $ 81 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Apr. 03, 2021country | Mar. 28, 2020$ / shares |
Business Acquisition [Line Items] | ||
Number of countries, country footprint | country | 21 | |
Legacy Primo Acquisition | ||
Business Acquisition [Line Items] | ||
Cash per share, election option one (in dollars per share) | $ 14 | |
Share exchange offer one (in shares) | 1.0229 | |
Cash per share, election option two (in dollars per share) | $ 5.04 | |
Share exchange offer two (in shares) | 0.6549 |
Acquisitions - Total Cash and S
Acquisitions - Total Cash and Stock Consideration (Details) - Legacy Primo Acquisition $ / shares in Units, $ in Millions | 1 Months Ended |
Mar. 28, 2020USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) | $ 377.6 |
Acquisition, number of shares issued (in shares) | shares | 26,497,015 |
Acquisition, number of shares issued (in USD per share) | $ / shares | $ 14.25 |
Cash to holders of Legacy Primo common stock | $ 216.1 |
Cash paid to retire outstanding indebtedness on behalf of Legacy Primo | 196.9 |
Settlement of pre-existing relationship | 4.7 |
Fair value of replacement common share options and restricted stock units for Legacy Primo awards | 2.9 |
Total consideration | $ 798.2 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 03, 2021 | Jan. 02, 2021 | Mar. 28, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,276.8 | $ 1,284.3 | |
Legacy Primo Acquisition | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 1.3 | $ 1.3 | |
Accounts receivable | 21.6 | 21.6 | |
Inventory | 18.4 | 18.4 | |
Prepaid expenses and other current assets | 5.3 | 5.3 | |
Property, plant and equipment | 107.8 | 107.8 | |
Operating lease right-of-use-assets | 4.3 | 4.3 | |
Goodwill | 302.5 | 301.2 | |
Measurement Period Adjustments, Goodwill | 1.3 | ||
Intangible assets | 421.6 | 421.6 | |
Other assets | 0.4 | 0.4 | |
Current maturities of long-term debt | (2.3) | (2.3) | |
Accounts payable and accrued liabilities | (42.2) | (42) | |
Measurement Period Adjustments, Accounts payable and accrued liabilities | (0.2) | ||
Current operating lease obligations | (1.4) | (1.4) | |
Long-term debt | (5.6) | (5.6) | |
Operating lease obligations | (3) | (3) | |
Deferred tax liabilities | (28.7) | (27.6) | |
Measurement Period Adjustments, Deferred tax liabilities | (1.1) | ||
Other long-term liabilities | (1.8) | (1.8) | |
Total | 798.2 | $ 798.2 | |
Measurement Period Adjustments, Total | $ 0 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Financial Information (Details) - Legacy Primo Acquisition $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ 514.7 |
Net loss from continuing operations | (13) |
Net income | $ 17.9 |
Net loss per common share from continuing operations, diluted (in USD per share) | $ / shares | $ (0.09) |
Net income per common share, diluted (in USD per share) | $ / shares | $ 0.13 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 4.7 | $ (3.3) |
Pre-tax loss from continuing operations | $ 5.5 | $ 30.7 |
Effective income tax rates | (85.50%) | 10.70% |
Net (Loss) Income per Common _3
Net (Loss) Income per Common Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Numerator (in millions of U.S. dollars): | ||
Net loss from continuing operations | $ (10.2) | $ (27.4) |
Net income from discontinued operations | 0 | 30.9 |
Net (loss) income | $ (10.2) | $ 3.5 |
Denominator (in thousands): | ||
Weighted average common shares outstanding - basic (in shares) | 160,634 | 141,139 |
Basic Earnings Per Share: | ||
Continuing operations (in USD per share) | $ (0.06) | $ (0.19) |
Discontinued operations (in USD per share) | 0 | 0.22 |
Net (loss) income (in USD per share) | $ (0.06) | $ 0.02 |
Denominator (in thousands): | ||
Weighted average common shares outstanding - basic (in shares) | 160,634 | 141,139 |
Weighted average common shares outstanding - diluted (in shares) | 160,634 | 141,139 |
Continued operations (in USD per share) | $ (0.06) | $ (0.19) |
Discontinued operations (in USD per share) | 0 | 0.22 |
Net (loss) income (in USD per share) | $ (0.06) | $ 0.02 |
Performance-based RSUs | ||
Denominator (in thousands): | ||
Dilutive effect (in shares) | 0 | 0 |
Time-based RSUs | ||
Denominator (in thousands): | ||
Dilutive effect (in shares) | 0 | 0 |
Stock Options | ||
Denominator (in thousands): | ||
Dilutive effect (in shares) | 0 | 0 |
Net (Loss) Income per Common _4
Net (Loss) Income per Common Share - Anti-dilutive Securities Excluded from the Computation (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted income (loss) per common share (in shares) | 7,206 | 6,477 |
Performance-based RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted income (loss) per common share (in shares) | 838 | 750 |
Time-based RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted income (loss) per common share (in shares) | 485 | 557 |
Net (Loss) Income per Common _5
Net (Loss) Income per Common Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common shares repurchased and canceled | $ 3.1 | $ 31.9 | |
Legacy Primo Acquisition | |||
Equity, Class of Treasury Stock [Line Items] | |||
Acquisition, number of shares issued (in shares) | 26,497,015 | ||
Acquisition, number of shares issued (in USD per share) | $ 14.25 | $ 14.25 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 13.1 | $ (4) |
All Other | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (9.4) | (24.7) |
Revision of Prior Period, Adjustment | All Other | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 2.5 | |
Revision of Prior Period, Adjustment | North America | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (0.6) | |
Revision of Prior Period, Adjustment | Rest of World | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (1.9) |
Segment Reporting - Information
Segment Reporting - Information by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 478.4 | $ 474.2 |
Depreciation and amortization | 53.1 | 45 |
Operating income (loss) | 13.1 | (4) |
Additions to property, plant and equipment | 27 | 34.9 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
Depreciation and amortization | 0.4 | 0.1 |
Operating income (loss) | (9.4) | (24.7) |
Additions to property, plant and equipment | 0.1 | 0 |
North America Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 365.5 | 350.7 |
Depreciation and amortization | 37.8 | 30.6 |
Operating income (loss) | 26.1 | 23.1 |
Additions to property, plant and equipment | 20.2 | 23.6 |
Rest of World | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 112.9 | 123.5 |
Depreciation and amortization | 14.9 | 14.3 |
Operating income (loss) | (3.6) | (2.4) |
Additions to property, plant and equipment | $ 6.7 | $ 11.3 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Channel Reporting Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 478.4 | $ 474.2 |
Water Direct/Water Exchange | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 287.6 | 295.2 |
Water Refill/Water Filtration | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 53 | 30.8 |
Other Water | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 56.3 | 55.4 |
Water Dispensers | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 15 | 5.9 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 66.5 | 86.9 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
All Other | Water Direct/Water Exchange | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
All Other | Water Refill/Water Filtration | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
All Other | Other Water | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
All Other | Water Dispensers | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
All Other | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 365.5 | 350.7 |
North America | Operating Segments | Water Direct/Water Exchange | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 238.8 | 237.4 |
North America | Operating Segments | Water Refill/Water Filtration | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 45.1 | 23.7 |
North America | Operating Segments | Other Water | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 40.9 | 42.2 |
North America | Operating Segments | Water Dispensers | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 15 | 5.9 |
North America | Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 25.7 | 41.5 |
Rest of World | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 112.9 | 123.5 |
Rest of World | Operating Segments | Water Direct/Water Exchange | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 48.8 | 57.8 |
Rest of World | Operating Segments | Water Refill/Water Filtration | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 7.9 | 7.1 |
Rest of World | Operating Segments | Other Water | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 15.4 | 13.2 |
Rest of World | Operating Segments | Water Dispensers | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 0 | 0 |
Rest of World | Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 40.8 | $ 45.4 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Jan. 02, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 41.2 | $ 43.6 |
Finished goods | 27.6 | 28 |
Resale items | 10 | 11.1 |
Other | 1.1 | 1.1 |
Total | $ 79.9 | $ 83.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Changes by Component (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
AOCI Attributable to Parent | ||
Beginning Balance | $ 1,346.9 | $ 1,166.2 |
OCI before reclassifications | 6.5 | (27.4) |
Amounts reclassified from AOCI | 0 | (2.5) |
Net current-period OCI | 6.5 | (29.9) |
Ending Balance | 1,336.7 | 1,480.7 |
Gains and Losses on Derivative Instruments | ||
AOCI Attributable to Parent | ||
Beginning Balance | 0 | 11.2 |
OCI before reclassifications | 0 | (8.7) |
Amounts reclassified from AOCI | 0 | (2.5) |
Net current-period OCI | 0 | (11.2) |
Ending Balance | 0 | 0 |
Pension Benefit Plan Items | ||
AOCI Attributable to Parent | ||
Beginning Balance | (1.1) | (1) |
OCI before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Net current-period OCI | 0 | 0 |
Ending Balance | (1.1) | (1) |
Currency Translation Adjustment Items | ||
AOCI Attributable to Parent | ||
Beginning Balance | (85.6) | (78.7) |
OCI before reclassifications | 6.5 | (18.7) |
Amounts reclassified from AOCI | 0 | 0 |
Net current-period OCI | 6.5 | (18.7) |
Ending Balance | (79.1) | (97.4) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent | ||
Beginning Balance | (86.7) | (68.5) |
Ending Balance | $ (80.2) | $ (98.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $ (213.9) | $ (200.9) |
Total before taxes | (5.5) | (30.7) |
Tax expense or (benefit) | (4.7) | 3.3 |
Net of tax | (10.2) | 3.5 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 0 | 2.5 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Gains and losses on derivative instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | 0 | 2.5 |
Tax expense or (benefit) | 0 | 0 |
Net of tax | 0 | 2.5 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Actuarial (losses)/gains | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial (losses)/gains | 0 | 0 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | 0 | 0 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Amortization of pension benefit plan items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | 0 | 0 |
Tax expense or (benefit) | 0 | 0 |
Net of tax | 0 | 0 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Foreign currency and commodity hedges | Gains and losses on derivative instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | 0 | 0.1 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Commodity hedges | Gains and losses on derivative instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of discontinued operations | $ 0 | 2.4 |
Tax impact | $ 1.3 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Millions | Apr. 03, 2021USD ($)segment | Jan. 02, 2021USD ($) |
Operating Leased Assets [Line Items] | ||
Number of third-party lessors | segment | 2 | |
Maximum potential amount of undiscounted future payments under the guarantee | $ 18.4 | |
ABL facility | ||
Operating Leased Assets [Line Items] | ||
Standby letters of credit outstanding | $ 50.6 | $ 50.6 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Jan. 02, 2021 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,296 | $ 1,327.1 |
Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 1,264.4 | 1,286.6 |
5.500% senior notes due in 2025 | Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 763.8 | 767.2 |
5.500% senior notes due in 2025 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate on notes | 5.50% | |
Carrying Value | $ 743.3 | 743 |
3.875% senior notes due in 2028 | Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 532.2 | 559.9 |
3.875% senior notes due in 2028 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate on notes | 3.875% | |
Carrying Value | $ 521.1 | $ 543.6 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | May 04, 2021USD ($)$ / shares | Apr. 30, 2021USD ($) | Apr. 03, 2021$ / shares | Mar. 28, 2020$ / shares | Apr. 30, 2021EUR (€) |
Subsequent Event [Line Items] | |||||
Dividends declared per share (in USD per share) | $ / shares | $ 0.06 | $ 0.06 | |||
5.500% Senior Notes Due in 2025 | Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Interest rate on notes | 5.50% | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (in USD per share) | $ / shares | $ 0.06 | ||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Stock repurchase program, period in force | 12 months | ||||
Subsequent Event | Line of Credit | Revolving Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Subsequent Event | 4.375% Senior Note Due in 2029 | Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Debt face amount | $ 750,000,000 | ||||
Interest rate on notes | 4.375% | 4.375% | |||
Financing fees | $ 11,200,000 | ||||
Financing fee, amortization period | 8 years | ||||
Subsequent Event | 3.875% Senior Notes Due in 2028 | Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Debt face amount | € | € 450,000,000 | ||||
Interest rate on notes | 3.875% | 3.875% | |||
Subsequent Event | 5.500% Senior Notes Due in 2025 | Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Debt face amount | $ 750,000,000 | ||||
Interest rate on notes | 5.50% | 5.50% | |||
Repayment of debt, premium payments | $ 20,600,000 | ||||
Repayment of debt, accrued interest payments | $ 3,600,000 |