Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2016 | Aug. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | COT | |
Entity Registrant Name | COTT CORP /CN/ | |
Entity Central Index Key | 884,713 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 137,860,725 |
Consolidated Statements of Oper
Consolidated Statements of Operations Unaudited - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 |
Cost of sales | 512.4 | 539.2 | 996.8 | 1,047.7 |
Gross profit | 252.6 | 240.6 | 466.6 | 441.9 |
Selling, general and administrative expenses | 202.1 | 190.2 | 399.1 | 378.7 |
Loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Acquisition and integration expenses | 11.7 | 4.1 | 13.1 | 8.8 |
Operating income | 36.6 | 46.1 | 51.3 | 52.8 |
Other expense (income), net | 3 | 1 | 0.8 | (9.4) |
Interest expense, net | 27 | 27.9 | 54.8 | 55.6 |
Income (loss) before income taxes | 6.6 | 17.2 | (4.3) | 6.6 |
Income tax benefit | 2.3 | 1.1 | 11.3 | 10.5 |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Net income (loss) attributed to Cott Corporation | $ 7.4 | $ 2.2 | $ 4.1 | $ (3.8) |
Net income (loss) per common share attributed to Cott Corporation | ||||
Basic | $ 0.06 | $ 0.02 | $ 0.03 | $ (0.04) |
Diluted | $ 0.06 | $ 0.02 | $ 0.03 | $ (0.04) |
Weighted average common shares outstanding (in thousands) | ||||
Basic | 123,239 | 99,573 | 118,253 | 96,384 |
Diluted | 124,180 | 100,165 | 119,038 | 96,384 |
Dividends declared per share | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Convertible Preferred Shares [Member] | ||||
Less: Accumulated dividends on convertible preferred shares | $ 1.8 | $ 4.5 | ||
Non-convertible Preferred Shares [Member] | ||||
Less: Accumulated dividends on convertible preferred shares | $ 0.6 | $ 1.4 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive (Loss) Income Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | ||
Net income | $ 8.9 | $ 18.3 | $ 7 | $ 17.1 | |
Other comprehensive (loss) income: | |||||
Currency translation adjustment | (14.7) | 24.6 | (17.9) | (1.3) | |
Pension benefit plan, net of tax | [1] | 0.1 | 0.4 | 0.2 | 0.5 |
Unrealized gain (loss) on derivative instruments, net of tax | [2] | 2.6 | (2.8) | 3.1 | (2.8) |
Total other comprehensive (loss) income | (12) | 22.2 | (14.6) | (3.6) | |
Comprehensive (loss) income | (3.1) | 40.5 | (7.6) | 13.5 | |
Less: Comprehensive income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 | |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | |||
Comprehensive (loss) income attributed to Cott Corporation | $ (4.6) | 24.4 | $ (10.5) | (7.4) | |
Convertible Preferred Shares [Member] | |||||
Other comprehensive (loss) income: | |||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | |||
Non-convertible Preferred Shares [Member] | |||||
Other comprehensive (loss) income: | |||||
Less: Accumulated dividends on convertible preferred shares | $ 0.6 | $ 1.4 | |||
[1] | Net of the effect of $0.1 million and $0.2 million tax benefit for the three and six months ended July 2, 2016, respectively, and net of the effect of $0.1 million and $0.2 million tax expense for the three and six months ended July 4, 2015, respectively. | ||||
[2] | Net of the effect of $1.2 million and $1.4 million tax benefit for the three and six months ended July 2, 2016, respectively, and net of the effect of $1.0 million tax benefit for the three and six months ended July 4, 2015. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive (Loss) Income Unaudited (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension benefit plan, tax expense (benefit) | $ (0.1) | $ 0.1 | $ (0.2) | $ 0.2 |
Derivative instruments, tax (benefit) expense | $ 1.2 | $ 1 | $ 1.4 | $ 1 |
Consolidated Balance Sheets Una
Consolidated Balance Sheets Unaudited - USD ($) $ in Millions | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
ASSETS | ||||||
Cash & cash equivalents | $ 249.5 | $ 55.1 | $ 77.1 | $ 79 | $ 34.5 | $ 86.2 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance of $7.9 ($9.2 as of January 2, 2016) | 339.5 | 293.3 | ||||
Income taxes recoverable | 0.9 | 1.6 | ||||
Inventories | 247.1 | 249.4 | ||||
Prepaid expenses and other current assets | 24.1 | 17.2 | ||||
Total current assets | 1,364.2 | 638.6 | ||||
Property, plant & equipment, net | 770.2 | 769.8 | ||||
Goodwill | 777.4 | 759.6 | ||||
Intangibles and other assets, net | 690.4 | 711.7 | ||||
Deferred tax assets | 12.8 | 7.6 | ||||
Total assets | 3,615 | 2,887.3 | ||||
LIABILITIES AND EQUITY | ||||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.6 | 3.4 | ||||
Accounts payable and accrued liabilities | 468 | 437.6 | ||||
Total current liabilities | 471.6 | 563 | ||||
Long-term debt | 2,013.3 | 1,525.4 | ||||
Deferred tax liabilities | 63.7 | 76.5 | ||||
Other long-term liabilities | 72.5 | 76.5 | ||||
Total liabilities | 2,621.1 | 2,241.4 | ||||
Equity | ||||||
Common shares, no par - 137,860,725 (January 2, 2016 - 109,695,435) shares issued | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings | 119 | 129.6 | ||||
Accumulated other comprehensive loss | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | 993.9 | 645.9 | $ 677 | $ 548.9 | ||
Total liabilities and equity | $ 3,615 | $ 2,887.3 |
Consolidated Balance Sheets Un6
Consolidated Balance Sheets Unaudited (Parenthetical) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 7.9 | $ 9.2 |
Capital stock, no par value | ||
Capital stock, shares issued | 137,860,725 | 109,695,435 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Operating Activities | ||||
Net income | $ 8.9 | $ 18.3 | $ 7 | $ 17.1 |
Depreciation & amortization | 53.5 | 58.2 | 106 | 115.6 |
Amortization of financing fees | 1.3 | 1.1 | 2.5 | 2.4 |
Amortization of senior notes premium | (1.5) | (1.4) | (2.9) | (2.9) |
Share-based compensation expense | 3.8 | 3.7 | 6.2 | 6.1 |
Benefit for deferred income taxes | (2.1) | (5.2) | (12.9) | (16.9) |
Loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Other non-cash items | 2.6 | (6.3) | 0.9 | (16.5) |
Change in operating assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (25.7) | (19.4) | (47.4) | (60.7) |
Inventories | 4.6 | 6.1 | 1.3 | (4.9) |
Prepaid expenses and other current assets | (3.4) | (4.5) | (7.8) | 25.8 |
Other assets | (1.2) | (1.3) | 1.2 | (3.7) |
Accounts payable and accrued liabilities, and other liabilities | 44.6 | 25.2 | 14.6 | 10 |
Income taxes recoverable | 1 | (2.9) | 1.6 | |
Net cash provided by operating activities | 87.6 | 75.7 | 68.9 | 74.6 |
Investing Activities | ||||
Acquisitions, net of cash received | (1.8) | (0.5) | (46.2) | (0.5) |
Additions to property, plant & equipment | (33.2) | (29.9) | (62.7) | (57.2) |
Additions to intangibles and other assets | (1) | (0.1) | (3.3) | (2.2) |
Proceeds from sale of property, plant & equipment and sale-leaseback | 0.2 | 40.1 | 2.9 | 40.5 |
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (38.6) | 9.6 | (112.1) | (19.4) |
Financing Activities | ||||
Payments of long-term debt | (0.4) | (1.1) | (1.5) | (1.9) |
Borrowings under ABL | 123.9 | 654.1 | 621.1 | 748.9 |
Payments under ABL | (187.7) | (674.4) | (746) | (777.2) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Financing fees | (0.2) | (0.2) | ||
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends to common and preferred shareholders | (7.4) | (9) | (14.7) | (18) |
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Net cash provided by (used in) financing activities | 147.5 | (41) | 218.7 | (61.4) |
Effect of exchange rate changes on cash | (2.1) | 0.2 | (3.1) | (1) |
Net increase (decrease) in cash & cash equivalents | 194.4 | 44.5 | 172.4 | (7.2) |
Cash & cash equivalents, beginning of period | 55.1 | 34.5 | 77.1 | 86.2 |
Cash & cash equivalents, end of period | 249.5 | 79 | 249.5 | 79 |
Supplemental Non-cash Investing and Financing Activities: | ||||
Long-term debt funded to escrow | 498.7 | 498.7 | ||
Additions to property, plant & equipment through accounts payable and accrued liabilities | 10.2 | 3.4 | 11.4 | 5.5 |
Acquisition related deferred consideration | 2.5 | 11.4 | ||
Accrued deferred financing fees | 9.8 | 0.2 | 9.8 | 0.2 |
Supplemental Disclosures of Cash Flow Information: | ||||
Cash paid for interest | 36.1 | 47.1 | 55.3 | 55.4 |
Cash (received) paid for income taxes, net | $ (0.1) | $ 1.6 | $ 4.1 | $ 2.1 |
Consolidated Statements of Equi
Consolidated Statements of Equity Unaudited - USD ($) $ in Millions | Total | 2010 Equity Incentive Plan [Member] | Common Shares [Member] | Common Shares [Member]2010 Equity Incentive Plan [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]2010 Equity Incentive Plan [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-Controlling Interests [Member] | |
Balance at Jan. 03, 2015 | $ 548.9 | $ 388.3 | $ 46.6 | $ 158.1 | $ (51) | $ 6.9 | ||||
Balance, shares at Jan. 03, 2015 | 93,073,000 | |||||||||
Common shares repurchased and cancelled | (0.7) | $ (0.7) | ||||||||
Common shares repurchased and cancelled, shares | (87,000) | |||||||||
Common shares issued | 142.6 | $ 0.1 | $ 142.6 | $ 1.9 | $ (1.8) | |||||
Common shares issued, shares | 16,215,000 | 384,000 | ||||||||
Share-based compensation | 6.1 | 6.1 | ||||||||
Common shares dividend | (12.1) | (12.1) | ||||||||
Redemption of preferred shares | (12) | (12) | ||||||||
Distributions to non-controlling interests | (3.6) | (3.6) | ||||||||
Currency translation adjustment | (1.3) | (1.3) | 0.1 | |||||||
Pension benefit plan, net of tax | 0.5 | [1] | 0.5 | |||||||
Unrealized gain (loss) on derivative instruments, net of tax | (2.8) | [2] | (2.8) | |||||||
Preferred shares dividend | (5.9) | (5.9) | ||||||||
Net income | 17.1 | 14.1 | 3 | |||||||
Balance at Jul. 04, 2015 | 677 | $ 532.1 | 50.9 | 142.2 | (54.6) | 6.4 | ||||
Balance, shares at Jul. 04, 2015 | 109,585,000 | |||||||||
Balance at Jan. 02, 2016 | $ 645.9 | $ 534.7 | 51.2 | 129.6 | (76.2) | 6.6 | ||||
Balance, shares at Jan. 02, 2016 | 109,695,435 | 109,695,000 | ||||||||
Common shares repurchased and cancelled | $ (1.1) | $ (1.1) | ||||||||
Common shares repurchased and cancelled, shares | (101,000) | |||||||||
Common shares issued | 368 | $ 368 | $ 2.7 | $ (2.7) | ||||||
Common shares issued, shares | 27,853,000 | 353,000 | ||||||||
Common shares issued - Dividend Reinvestment Plan | 0.1 | $ 0.1 | ||||||||
Common shares issued - Reinvestment, shares | 9,000 | |||||||||
Common shares issued - Employee Stock Purchase Plan | 0.4 | $ 0.5 | (0.1) | |||||||
Common shares issued - Employee stock purchase plan, shares | 52,000 | |||||||||
Share-based compensation | 6.2 | 6.2 | ||||||||
Common shares dividend | (14.7) | (14.7) | ||||||||
Distributions to non-controlling interests | (3.3) | (3.3) | ||||||||
Currency translation adjustment | (17.9) | (17.9) | ||||||||
Pension benefit plan, net of tax | 0.2 | [1] | 0.2 | |||||||
Unrealized gain (loss) on derivative instruments, net of tax | 3.1 | [2] | 3.1 | |||||||
Net income | 7 | 4.1 | 2.9 | |||||||
Balance at Jul. 02, 2016 | $ 993.9 | $ 904.9 | $ 54.6 | $ 119 | $ (90.8) | $ 6.2 | ||||
Balance, shares at Jul. 02, 2016 | 137,860,725 | 137,861,000 | ||||||||
[1] | Net of the effect of $0.1 million and $0.2 million tax benefit for the three and six months ended July 2, 2016, respectively, and net of the effect of $0.1 million and $0.2 million tax expense for the three and six months ended July 4, 2015, respectively. | |||||||||
[2] | Net of the effect of $1.2 million and $1.4 million tax benefit for the three and six months ended July 2, 2016, respectively, and net of the effect of $1.0 million tax benefit for the three and six months ended July 4, 2015. |
Business and Recent Accounting
Business and Recent Accounting Pronouncements | 6 Months Ended |
Jul. 02, 2016 | |
Accounting Policies [Abstract] | |
Business and Recent Accounting Pronouncements | Note 1 Business and Recent Accounting Pronouncements 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. With the acquisitions of DS Services of America, Inc. (“DSS”) in December 2014 and the Eden Springs business (“Eden”) in August 2016, we combined leading providers in the direct-to-consumer beverage services industry with our traditional business, one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors. We now have the largest volume-based national presence in the North American and European home and office delivery (“HOD”) industry for bottled water and one of the five largest national market share positions in the U.S. and European office coffee services (“OCS”) and filtration services industries. We reach over 2.3 million customers through routes located across North America and Europe supported by strategically located sales and distribution facilities and fleets. Our broad portfolio allows us to offer, on a direct-to-consumer basis, a variety of bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers and filtration equipment. We believe we have the broadest distribution network in the direct-to-consumer beverage services industry in North America and Europe, which enables us to efficiently service residences and small and medium size businesses, as well as large corporations, universities and government agencies. 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 accruals) 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, 2016 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, 2016 (“2015 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 2015 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. Significant Accounting Policies Included in Note 1 of the 2015 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. Restricted Cash Restricted cash includes cash that is restricted as to withdrawal or usage. The Company’s restricted cash was $503.1 million as of July 2, 2016 on our consolidated balance sheet and consists of the proceeds from the issuance of the 5.500% senior notes due 2024 that are held in escrow to fund a portion of the purchase price for the acquisition of Eden (see Note 16 to the consolidated financial statements). Cost of sales We record costs associated with the manufacturing of our products in costs 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. Costs incurred in shipment of products from our production facilities to customer locations are also reflected in cost of sales, with the exception of shipping and handling costs incurred to deliver products from DSS branch locations to the end-user consumer of those products which are recorded in selling, general and administrative (“SG&A”) expenses and were $78.8 million and $156.6 million for the three and six months ended July 2, 2016 and $69.7 million and $134.7 million for the three and six months ended July 4, 2015, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. Recently Issued Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) or the issuance of new standards to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on these consolidated financial statements. Update ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB amended its guidance regarding revenue recognition and created a new Topic 606, Revenue from Contracts with Customers. The objectives for creating Topic 606 were to remove inconsistencies and weaknesses in revenue recognition, provide a more robust framework for addressing revenue issues, provide more useful information to users of the financial statements through improved disclosure requirements, simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer, and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application. We are currently assessing the impact of adoption of this standard on our consolidated financial statements. Update ASU 2016-02 – Leases (Topic 842) In February 2016, the FASB issued an update to its guidance on lease accounting. 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. At adoption, this update will be applied using a modified retrospective approach. We are currently assessing the impact of adoption of this standard on our consolidated financial statements. Update ASU 2016-09 – Compensation - Stock Compensation (Topic 718) In March 2016, the FASB amended its guidance to simplify several areas of accounting for share-based compensation arrangements. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the consolidated statements of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the consolidated statements of cash flows. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. This guidance will be applied either prospectively, retrospectively or using a 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 2016-13 – 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. 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. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 02, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2—Acquisitions Aquaterra Acquisition On January 4, 2016 (the “Acquisition Date”), the Company acquired 100% of the share capital of Aquaterra Corporation (“Aquaterra”) pursuant to a Share Purchase Agreement dated December 7, 2015 (the “Aquaterra Acquisition”). Aquaterra operates a Canadian direct-to-consumer HOD bottled water and OCS business. The aggregate purchase price paid by the Company in the Aquaterra Acquisition was approximately C$61.2 million (approximately U.S. $44.0 million). The purchase price was paid at closing in cash and was subject to a customary post-closing adjustment of actual working capital. The post-closing adjustment was completed in May 2016 and resulted in the payment of $0.5 million by the former owners of Aquaterra to the Company. This acquisition supports the Company’s strategy to become a more diversified beverage provider across multiple channels and geographies, as well as the Company’s continuing consolidation of the higher margin HOD bottled water and OCS categories. The Company has accounted for this transaction as a business combination in accordance with authoritative accounting guidance. The adjusted purchase consideration of $44.0 million was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the Acquisition Date. A preliminary allocation of the purchase price has been made to major categories of assets and liabilities based on management’s estimates. The table below presents the preliminary purchase price allocation of the estimated acquisition date fair values of the assets acquired and the liabilities assumed and shows the allocation after the post-closing adjustment: As reported at (in millions of U.S. dollars) Acquired Value Adjustments July 2, 2016 Cash $ 1.3 $ — $ 1.3 Accounts receivable 6.2 — 6.2 Inventories 2.1 — 2.1 Prepaid expenses and other current assets 1.3 — 1.3 Property, plant & equipment 13.4 — 13.4 Goodwill 19.2 (0.5 ) 1 18.7 Intangible and other assets 17.4 — 17.4 Accounts payable and accrued liabilities (15.8 ) — (15.8 ) Long-term debt (0.3 ) — (0.3 ) Other long-term liabilities (0.3 ) — (0.3 ) Total $ 44.5 $ (0.5 ) $ 44.0 1. The working capital adjustment was reflected in the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as reported at April 2, 2016. When the post-closing adjustment was completed in May 2016, an adjustment to goodwill was made as reported at July 2, 2016. The fair values of acquired property, plant & equipment, identifiable intangible assets and deferred taxes are provisional pending validation and receipt of the final valuations for those assets. In addition, consideration for potential loss contingencies are still under review. The amount of revenues and net income related to the Aquaterra Acquisition included in the Company’s consolidated statement of operations for the period from the Acquisition Date through July 2, 2016 were $31.0 million and $1.3 million, respectively. During the six months ended July 2, 2016, the Company incurred $0.4 million of acquisition related costs associated with the Aquaterra Acquisition, which are included in acquisition and integration expenses in the consolidated statements of operations. Intangible Assets In our preliminary determination of the fair value of the intangible assets, we considered, among other factors, the best use of acquired assets, analysis of historic financial performance and estimates of future performance of Aquaterra’s products. The estimated fair values of identified intangible assets were calculated considering market participant expectations and using an income approach and estimates and assumptions provided by Aquaterra’s and our management. The following table sets forth the components of identified intangible assets associated with the Aquaterra Acquisition and their estimated weighted average useful lives: Estimated Fair Estimated (in millions of U.S. dollars) Market Value Useful Life Customer relationships $ 10.0 12 years Trademarks and trade names 6.7 Indefinite Total $ 16.7 Customer relationships represent future projected revenue that will be derived from sales to existing customers of Aquaterra. Trademark 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. Goodwill The principal factor that resulted in recognition of goodwill was that the purchase price for the Aquaterra Acquisition 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 Aquaterra Acquisition was allocated to the DSS reporting segment, none of which is expected to be tax deductible. Other HOD Water Business Acquisitions During the six months ended July 2, 2016, the Company, through its DSS reporting segment, acquired five HOD water businesses for cash purchase prices aggregating to $3.5 million. The Company has accounted for these transactions as business combinations in accordance with GAAP. These tuck-in acquisitions support the Company’s ongoing objective of leveraging its assets and further strengthening its customer density. Net assets, including goodwill, acquired have been allocated to the DSS reporting segment. All of the goodwill recorded is expected to be tax deductible. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 3—Share-Based Compensation During the six months ended July 2, 2016, the Company granted 383,670 Performance-based RSUs, 201,921 Time-based RSUs, and 1,163,868 Stock Options. The Performance-based RSUs are restricted share units with performance-based vesting granted under the Amended and Restated Cott Corporation Equity Incentive Plan (the “Equity Incentive Plan”). These Performance-based RSUs vest at the end of the performance period, or the last day of our 2018 fiscal year. The 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 ultimately awarded upon vesting are based primarily on the Company’s achievement of a specified level of cumulative pre-tax income for the performance period. The weighted-average grant date fair value of $11.28 per share for the Performance-based RSUs was based on the closing market price of the Company’s common shares on the date of grant on the New York Stock Exchange (“NYSE”). The Time-based RSUs are restricted share units with time-based vesting granted under the Equity Incentive Plan. The Time-based RSUs vest ratably in three equal annual installments on the first, second and third anniversaries of the date of grant and are based upon a service condition. The weighted-average grant date fair value of $11.29 per share for the Time-based RSUs was based on the closing market price of the Company’s common shares on the date of grant on the NYSE. The Stock Options are non-qualified stock options granted under the Equity Incentive Plan and will vest ratably in three equal installments on the first, second and third anniversaries of the date of grant, are based upon a service condition and have a ten year contractual term. The weighted-average fair value of $2.94 per option for the Stock Options was based on the estimate of fair value on the date of grant using the Black-Scholes option pricing model and related assumptions. During the three months ended July 2, 2016, the Company also granted 62,046 common shares to the non-management members of our board of directors under the Equity Incentive Plan with a grant date fair value of approximately $0.9 million. The common shares were issued in consideration of the directors’ annual board retainer fee and vested upon issuance. The Company’s share-based compensation expense was $6.2 million and $6.1 million for the six months ended July 2, 2016 and July 4, 2015, respectively, and was recorded in SG&A expenses in our consolidated statements of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4—Income Taxes Income tax benefit was $11.3 million on pre-tax loss of $4.3 million for the six months ended July 2, 2016, as compared to an income tax benefit of $10.5 million on pre-tax income of $6.6 million for the six months ended July 4, 2015. This is the result of recognizing income tax benefit of pre-tax losses in certain jurisdictions that is not offset by income tax expense in other jurisdictions with pre-tax income. As we have significant global permanent book to tax differences that exceed our estimated income before taxes on an annual basis, small changes in our estimated income before taxes or changes in year to date income before taxes between jurisdictions can cause material fluctuations in our estimated effective tax rate on a quarterly basis. We have therefore calculated our quarterly income tax provision for the fiscal periods ended July 2, 2016 and July 4, 2015 on a discrete basis for the United States rather than using the estimated annual effective tax rate for the year, in accordance with ASC 740, Income Taxes. The Company evaluates positive and negative evidence on a regular basis to determine if a valuation allowance should be established in our various tax jurisdictions. The interest expense generated by the issuance of our 5.500% senior notes due 2024 (see Note 10 to the consolidated financial statements) in connection with the acquisition of Eden, which closed on August 2, 2016 (see Note 16 to the consolidated financial statements), will lower future projections of Canadian taxable income. Due to the change in projections, the Company may establish a valuation allowance of approximately $7.2 million in the third quarter of fiscal year 2016 against its Canadian tax assets. |
Common Shares and Net Income (L
Common Shares and Net Income (Loss) Per Common Share | 6 Months Ended |
Jul. 02, 2016 | |
Earnings Per Share [Abstract] | |
Common Shares and Net Income (Loss) Per Common Share | Note 5—Common Shares and Net Income (Loss) Per Common Share Common Shares On June 29, 2016, we completed a public offering, on a bought deal basis, of 15,088,000 common shares at a price of $15.25 per share for total gross proceeds to us of $230.1 million (the “June 2016 Offering”). We incurred and recorded $9.2 million of underwriter commissions, $1.1 million in professional fees and a $2.7 million deferred tax benefit to common share capital in connection with the June 2016 Offering. The net proceeds of the 2016 June Offering were used to repay in full the borrowings under our asset based lending facility (“ABL facility”), to finance the acquisition of S&D Coffee, Inc. (“S&D”)(see Note 16 to the consolidated financial statements) and for general corporate purposes. On March 9, 2016, we completed a public offering, on a bought deal basis, of 12,765,000 common shares at a price of $11.80 per share for total gross proceeds to us of $150.6 million (the “March 2016 Offering”). We incurred and recorded $6.0 million of underwriter commissions, $0.8 million in professional fees and a $1.7 million deferred tax benefit to common share capital in connection with the March 2016 Offering. The net proceeds of the March 2016 Offering were used to repay a portion of the borrowings under our ABL facility, to finance the acquisition of Eden (see Note 16 to the consolidated financial statements) and for general corporate purposes. Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) attributed 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) attributed 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, Time-based RSUs and convertible preferred shares issued as part of the acquisition of DSS (“Convertible Preferred Shares”) during the periods presented. The dilutive effect of the Convertible Preferred Shares was calculated using the if-converted method. In applying the if-converted method, the Convertible Preferred Shares are assumed to have been converted at the beginning of the period (or at the time of issuance, if later). 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 Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in millions of U.S. dollars) 2016 2015 2016 2015 Diluted net income (loss) attributed to Cott Corporation (numerator) $ 7.4 $ 2.2 $ 4.1 $ (3.8 ) For the Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in thousands) 2016 2015 2016 2015 Weighted average number of shares outstanding - basic 123,239 99,573 118,253 96,384 Dilutive effect of Stock Options 548 176 424 — Dilutive effect of Time-based RSUs 393 416 361 — Adjusted weighted average number of shares outstanding - diluted (denominator) 124,180 100,165 119,038 96,384 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 For the Six Months Ended July 2, July 4, July 2, July 4, (in thousands) 2016 2015 2016 2015 Stock Options — 685 380 1,886 Performance-based RSUs 1 1,995 1,739 1,995 1,739 Time-based RSUs — — — 856 Convertible Preferred Shares — 18,480 — 18,480 1. Performance-based RSUs represent the number of shares expected to be issued based primarily on the estimated achievement of cumulative pre-tax income targets for these awards. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 6—Segment Reporting Our broad portfolio of products include bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, filtration equipment, carbonated soft drinks (“CSDs”), 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy drinks and shots, sports products, new age beverages, ready-to-drink teas, liquid enhancers, freezables, ready-to-drink alcoholic beverages, hot chocolate, coffee, malt drinks, creamers/whiteners, cereals and beverage concentrates. Our business operates through four reporting segments: DSS, Cott North America, Cott U.K. and All Other (which includes our Mexico operating segment, Royal Crown International operating segment and other miscellaneous expenses). We refer to our Cott North America, Cott U.K. and All Other reporting segments together as our “traditional business”. Our corporate oversight function (“Corporate”) is not treated as a segment; it includes certain general and administrative costs that are not allocated to any of the reporting segments. Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Corporate Eliminations Total For the Three Months Ended July 2, 2016 Revenue, net 1 $ 275.7 $ 349.2 $ 132.3 $ 14.8 $ — $ (7.0 ) $ 765.0 Depreciation and amortization 29.3 18.6 5.4 0.2 — — 53.5 Operating income (loss) 17.8 18.4 11.7 3.4 (14.7 ) — 36.6 Additions to property, plant and equipment 22.7 6.6 3.8 0.1 — — 33.2 For the Six Months Ended July 2, 2016 Revenue, net 1 $ 533.0 $ 662.5 $ 252.9 $ 28.4 $ — $ (13.4 ) $ 1,463.4 Depreciation and amortization 57.7 36.9 10.9 0.5 — — 106.0 Operating income (loss) 23.5 19.0 21.6 5.9 (18.7 ) — 51.3 Additions to property, plant and equipment 40.5 16.0 5.8 0.4 — — 62.7 As of July 2, 2016 Total assets 2 1,606.2 1,610.0 369.0 29.8 — — 3,615.0 1. Intersegment revenue between Cott North America and the other reporting segments was $7.0 million and $13.4 million for the three and six months ended July 2, 2016, respectively. 2. Excludes intersegment receivables, investments and notes receivable. Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Corporate Eliminations Total For the Three Months Ended July 4, 2015 Revenue, net 1 $ 257.0 $ 359.0 $ 153.8 $ 16.4 $ — $ (6.4 ) $ 779.8 Depreciation and amortization 31.8 20.6 5.4 0.4 — — 58.2 Operating income (loss) 13.2 18.3 14.6 3.7 (3.7 ) — 46.1 Additions to property, plant and equipment 20.4 4.5 4.5 0.5 — — 29.9 For the Six Months Ended July 4, 2015 Revenue, net 1 $ 497.3 $ 687.7 $ 286.0 $ 29.4 $ — $ (10.8 ) $ 1,489.6 Depreciation and amortization 62.0 41.9 10.9 0.8 — — 115.6 Operating income (loss) 11.7 25.5 18.5 5.3 (8.2 ) — 52.8 Additions to property, plant and equipment 38.8 11.7 6.2 0.5 — — 57.2 As of January 2, 2016 Total assets 2 1,513.1 943.1 402.5 28.6 — — 2,887.3 1. Intersegment revenue between Cott North America and the other reporting segments was $6.4 million and $10.8 million for the three and six months ended July 4, 2015, respectively. 2. Excludes intersegment receivables, investments and notes receivable. For the six months ended July 2, 2016, sales to Walmart accounted for 17.9% of our total revenue (July 4, 2015—18.3%), 2.4% of our DSS reporting segment revenue (July 4, 2015—2.2%), 33.7% of our Cott North America reporting segment revenue (July 4, 2015—32.7%), 10.4% of our Cott U.K. reporting segment revenue (July 4, 2015—12.0%), and 2.1% of our All Other reporting segment revenue (July 4, 2015—3.4%). Credit risk arises from the potential default of a customer in meeting its financial obligations to us. Concentrations of credit exposure may arise with a group of customers that have similar economic characteristics or that are located in the same geographic region. The ability of such customers to meet obligations would be similarly affected by changing economic, political or other conditions. We are not currently aware of any facts that would create a material credit risk. Revenues by channel by reporting segment were as follows: For the Three Months Ended July 2, 2016 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 20.7 $ 280.9 $ 55.0 $ 1.1 $ (0.3 ) $ 357.4 Branded retail 22.9 24.8 41.7 1.0 (0.4 ) 90.0 Contract packaging — 35.7 31.0 5.0 (2.5 ) 69.2 Home and office bottled water delivery 177.2 — — — — 177.2 Office coffee services 30.0 — — — — 30.0 Concentrate and other 24.9 7.8 4.6 7.7 (3.8 ) 41.2 Total $ 275.7 $ 349.2 $ 132.3 $ 14.8 $ (7.0 ) $ 765.0 For the Six Months Ended July 2, 2016 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 37.6 $ 529.4 $ 106.0 $ 1.6 $ (0.7 ) $ 673.9 Branded retail 47.2 51.6 78.3 1.8 (0.7 ) 178.2 Contract packaging — 67.1 59.3 9.7 (4.6 ) 131.5 Home and office bottled water delivery 339.2 — — — — 339.2 Office coffee services 61.5 — — — — 61.5 Concentrate and other 47.5 14.4 9.3 15.3 (7.4 ) 79.1 Total $ 533.0 $ 662.5 $ 252.9 $ 28.4 $ (13.4 ) $ 1,463.4 For the Three Months Ended July 4, 2015 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 17.2 $ 289.7 $ 71.8 $ 1.7 $ (0.7 ) $ 379.7 Branded retail 20.6 30.8 48.5 1.3 (0.5 ) 100.7 Contract packaging — 31.3 30.9 6.8 (1.6 ) 67.4 Home and office bottled water delivery 164.8 — — — — 164.8 Office coffee services 29.7 — — — — 29.7 Concentrate and other 24.7 7.2 2.6 6.6 (3.6 ) 37.5 Total $ 257.0 $ 359.0 $ 153.8 $ 16.4 $ (6.4 ) $ 779.8 For the Six Months Ended July 4, 2015 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 32.7 $ 557.4 $ 132.7 $ 2.8 $ (1.2 ) $ 724.4 Branded retail 40.3 57.9 89.3 2.4 (0.9 ) 189.0 Contract packaging — 56.9 59.3 10.7 (1.6 ) 125.3 Home and office bottled water delivery 314.4 — — — — 314.4 Office coffee services 61.7 — — — — 61.7 Concentrate and other 48.2 15.5 4.7 13.5 (7.1 ) 74.8 Total $ 497.3 $ 687.7 $ 286.0 $ 29.4 $ (10.8 ) $ 1,489.6 |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 7—Inventories The following table summarizes inventories as of July 2, 2016 and January 2, 2016: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Raw materials $ 93.8 $ 95.3 Finished goods 119.6 118.4 Resale items 13.1 15.8 Other 20.6 19.9 Total $ 247.1 $ 249.4 |
Intangibles and Other Assets
Intangibles and Other Assets | 6 Months Ended |
Jul. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles and Other Assets | Note 8—Intangibles and Other Assets The following table summarizes intangibles and other assets as of July 2, 2016 and January 2, 2016: July 2, 2016 January 2, 2016 Accumulated Accumulated (in millions of U.S. dollars) Cost Amortization Net Cost Amortization Net Intangibles Not subject to amortization Rights 1 $ 45.0 $ — $ 45.0 $ 45.0 $ — $ 45.0 Trademarks 190.2 — 190.2 183.1 — 183.1 Total intangibles not subject to amortization 235.2 — 235.2 228.1 — 228.1 Subject to amortization Customer relationships 665.6 269.3 396.3 663.9 241.0 422.9 Trademarks 32.3 27.9 4.4 33.0 28.1 4.9 Information technology 58.1 33.5 24.6 54.0 29.1 24.9 Other 7.5 4.8 2.7 7.8 4.5 3.3 Total intangibles subject to amortization 763.5 335.5 428.0 758.7 302.7 456.0 Total Intangibles 998.7 335.5 663.2 986.8 302.7 684.1 Other Assets Financing costs 12.6 9.0 3.6 12.6 8.5 4.1 Deposits 11.5 0.4 11.1 10.3 0.4 9.9 Other 14.4 1.9 12.5 15.2 1.6 13.6 Total Other Assets 38.5 11.3 27.2 38.1 10.5 27.6 Total Intangibles & Other Assets $ 1,037.2 $ 346.8 $ 690.4 $ 1,024.9 $ 313.2 $ 711.7 1. Relates to the 2001 acquisition of intellectual property from Royal Crown Company, Inc., including the right to manufacture our 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. Amortization expense of intangibles and other assets was $19.1 million and $38.3 million for the three and six months ended July 2, 2016, compared to $19.6 million and $38.8 million for the three and six months ended July 4, 2015, respectively. The estimated amortization expense for intangibles over the next five years is: (in millions of U.S. dollars) Remainder of 2016 $ 35.5 2017 64.0 2018 56.9 2019 48.0 2020 41.7 Thereafter 181.9 Total $ 428.0 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jul. 02, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 9—Accounts Payable and Accrued Liabilities The following table summarizes accounts payable and accrued liabilities as of July 2, 2016 and January 2, 2016: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Trade payables $ 271.5 $ 227.2 Accrued compensation 37.3 49.8 Accrued sales incentives 25.7 25.2 Accrued interest 12.2 12.2 Payroll, salaries and other taxes 18.9 13.3 Accrued deposits 31.9 28.6 Other accrued liabilities 70.5 81.3 Total $ 468.0 $ 437.6 |
Debt
Debt | 6 Months Ended |
Jul. 02, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 10—Debt Our total debt as of July 2, 2016 and January 2, 2016 was as follows: July 2, 2016 January 2, 2016 Unamortized Unamortized Debt Debt (in millions of U.S. dollars) Principal Costs Net Principal Costs Net 6.750% senior notes due in 2020 $ 625.0 $ 10.7 $ 614.3 $ 625.0 $ 12.0 $ 613.0 10.000% senior notes due in 2021 1 387.2 — 387.2 390.1 — 390.1 5.375% senior notes due in 2022 525.0 7.7 517.3 525.0 8.2 516.8 5.500% senior notes due in 2024 500.2 9.8 490.4 — — — ABL facility — — — 122.0 — 122.0 GE Term Loan 5.5 0.2 5.3 6.4 0.4 6.0 Capital leases and other debt financing 2.4 — 2.4 2.9 — 2.9 Total debt 2,045.3 28.4 2,016.9 1,671.4 20.6 1,650.8 Less: Short-term borrowings and current debt: ABL facility — — — 122.0 — 122.0 Total short-term borrowings — — — 122.0 — 122.0 GE Term Loan - current maturities 2.6 — 2.6 2.2 — 2.2 Capital leases and other debt financing - current maturities 1.0 — 1.0 1.2 — 1.2 Total current debt 3.6 — 3.6 125.4 — 125.4 Total long-term debt $ 2,041.7 $ 28.4 $ 2,013.3 $ 1,546.0 $ 20.6 $ 1,525.4 1. The outstanding aggregate principal amount of $350.0 million of our 10.000% senior secured notes (“DSS Notes”) was assumed by Cott at a fair value of $406.0 million in connection with Cott’s acquisition of DSS. The premium of $56.0 million is being amortized as an adjustment to interest expense using the effective interest method over the remaining contractual term of the DSS Notes. The remaining unamortized premium is $37.2 million and $40.1 million at July 2, 2016 and January 2, 2016, respectively. Asset-Based Lending Facility On June 7, 2016, in connection with the acquisition of Eden (see Note 16 to the consolidated financial statements), we amended the ABL facility to permit, among other things, (1) the acquisition of Eden, (2) a new debt issuance to finance the acquisition of Eden, (3) the sale and leaseback of certain property located in the United Kingdom, and (4) certain other miscellaneous and technical changes. Debt Issuance On June 30, 2016, we issued €450.0 million ($500.2 million at exchange rates in effect on July 2, 2016) of 5.500% senior notes due 2024 (“2024 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 2024 Notes were initially issued by our wholly-owned subsidiary Cott Finance Corporation. In connection with the closing of the acquisition of Eden, Cott Finance Corporation amalgamated with the Company and the combined company, “Cott Corporation”, assumed all of the obligations of Cott Finance Corporation under the 2024 Notes, and most of Cott’s U.S., Canadian, U.K. Luxembourg 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 recorded to restricted cash as of July 2, 2016 and will be used to fund a portion of the purchase price of the acquisition of Eden (see Note 16 to the consolidated financial statements), to repay a portion of certain outstanding indebtedness of Eden, and to pay related fees and expenses. We incurred approximately $9.8 million of financing fees for the issuance of the 2024 Notes and $10.0 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 an eight-year period, which represents the term to maturity of the 2024 Notes. The bridge financing commitment fees and professional fees were recorded in SG&A expenses in our consolidated statements of operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jul. 02, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Note 11—Accumulated Other Comprehensive (Loss) Income Changes in accumulated other comprehensive (loss) income (“AOCI”) by component for the six months ended July 2, 2016 were as follows: July 2, 2016 Gains and Losses Pension Currency on Derivative Benefit Translation (in millions of U.S. dollars) 1 Instruments Plan Items Adjustment Items Total Beginning balance January 2, 2016 $ (4.7 ) $ (10.1 ) $ (61.4 ) $ (76.2 ) OCI before reclassifications 5.8 — (17.9 ) (12.1 ) Amounts reclassified from AOCI (2.7 ) 0.2 — (2.5 ) Net current-period OCI 3.1 0.2 (17.9 ) (14.6 ) Ending balance July 2, 2016 $ (1.6 ) $ (9.9 ) $ (79.3 ) $ (90.8 ) 1. All amounts are net of tax. The following table summarizes the amounts reclassified from AOCI for the three and six months ended July 2, 2016 and July 4, 2015, respectively. (in millions of U.S. dollars) For the Three Months Ended For the Six Months Ended Affected Line Item in Details About AOCI Components 1 July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 the Statement Where Gains and losses on derivative instruments Foreign currency and commodity hedges $ 2.4 $ (0.1 ) $ 4.0 $ 0.2 Cost of sales (0.7 ) 0.1 (1.3 ) — Tax (expense) benefit $ 1.7 $ — $ 2.7 $ 0.2 Net of tax Amortization of pension benefit plan items Prior service costs 2 $ (0.1 ) $ (0.4 ) $ (0.2 ) $ (0.5 ) Cost of sales (0.1 ) (0.4 ) (0.2 ) (0.5 ) Total before taxes — — — — Tax (expense) benefit $ (0.1 ) $ (0.4 ) $ (0.2 ) $ (0.5 ) Net of tax Total reclassifications for the period $ 1.6 $ (0.4 ) $ 2.5 $ (0.3 ) Net of tax 1. Amounts in parentheses indicate debits. 2. These AOCI components are included in the computation of net periodic pension cost. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12—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 $40.7 million in standby letters of credit outstanding as of July 2, 2016 (July 4, 2015 - $41.4 million). In May 2014, our Cott U.K. reporting segment acquired 100% of the share capital of Aimia Foods Holdings Limited (the “Aimia Acquisition”), which included its operating subsidiary company, Aimia Foods Limited (together referred to as “Aimia”) pursuant to a Share Purchase Agreement dated May 30, 2014. The terms of the transaction included aggregate contingent consideration of up to £16.0 million ($21.3 million at exchange rates in effect on July 2, 2016), which is payable upon achievement of certain measures related to Aimia’s performance during the twelve months ended July 1, 2016. The estimated liability as of July 2, 2016 is £12.0 million ($15.9 million at exchange rates in effect on July 2, 2016) and is expected to be paid during the third quarter of 2016. |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 6 Months Ended |
Jul. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | Note 13—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 and swap agreements for certain commodities. Forward contracts are agreements to buy or sell a quantity of a currency at a predetermined future date, and at a predetermined rate or price. 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 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 with 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 effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized into earnings. We estimate the fair values of our derivatives based on quoted market prices or pricing models using current market rates (see Note 14 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 foreign currency exchange rates and 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 six months ended July 2, 2016 or July 4, 2015, respectively. Foreign exchange contracts typically have maturities of less than twelve months and commodity contracts typically have maturities of less than 27 months. All outstanding hedges as of July 2, 2016 are expected to settle in the next twelve months. We maintain a foreign currency cash flow hedging program to reduce the risk that our procurement activities will be adversely affected by changes in foreign currency exchange rates. We enter into forward contracts to hedge certain portions of forecasted cash flows denominated in foreign currencies. The total notional values of derivatives that were designated and qualified for our foreign currency cash flow hedging program were $17.9 million and $4.5 million as of July 2, 2016 and January 2, 2016, respectively. Approximately $0.9 million of unrealized losses net of tax and $1.0 million of unrealized gains net of tax related to the foreign currency cash flow hedges were included in AOCI as of July 2, 2016 and July 4, 2015, respectively. The hedge ineffectiveness for these cash flow hedging instruments was not material during the periods presented. We have entered into commodity swaps on aluminum to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments have been designated and qualify as a part of our commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for our commodity cash flow hedging program were $23.9 million and $49.3 million as of July 2, 2016 and January 2, 2016, respectively. Approximately $1.0 million and $3.8 million of unrealized losses net of tax related to the commodity swaps were included in AOCI as of July 2, 2016 and July 4, 2015, respectively. The cumulative hedge ineffectiveness for these hedging instruments was not material for the six months ended July 2, 2016 and July 4, 2015. The fair value of the Company’s derivative assets included within other receivables as a component of accounts receivable, net was $0.1 million and $0.6 million as of July 2, 2016 and January 2, 2016, respectively. The fair value of the Company’s derivative liabilities included in accrued liabilities was $2.9 million and $8.0 million as of July 2, 2016 and January 2, 2016, respectively. Set forth below is a reconciliation of the Company’s derivatives by contract type for the periods indicated: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Derivative Contract Assets Liabilities Assets Liabilities Foreign currency hedge $ — $ 1.3 $ 0.6 $ — Aluminum swaps 0.1 1.6 — 8.0 $ 0.1 $ 2.9 $ 0.6 $ 8.0 Aluminum swaps subject to enforceable master netting arrangements are presented net in the reconciliation above. The fair value of the aluminum swap assets and liabilities which are shown on a net basis are reconciled in the table below: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Aluminum swap assets $ 0.1 $ — Aluminum swap liabilities (1.6 ) (8.0 ) Net asset (liability) $ (1.5 ) $ (8.0 ) The settlement of our derivative instruments resulted in an increase to cost of sales of $2.3 million and $3.9 million for the three and six months ended July 2, 2016, respectively, compared with a reduction to cost of sales of nil and $0.2 million for the comparable prior year periods. Zero-Cost Collar In June 2016, in order to fund a portion of the acquisition of Eden, the Company entered into a foreign currency option contract known as a zero-cost collar. This contract involves the Company’s purchase of a Euro call option and a simultaneous sale of a Euro put option, with equivalent Euro notional amounts of €30.0 million for the options. The zero-cost collar contract matured and was settled in July 2016, resulting in a cash payment of $33.3 million. The fair value of the Euro call option was determined to be an asset of less than $0.0 million and the Euro put option was determined to be a liability of $0.2 million, resulting in an unrealized loss of $0.2 million for the three and six months ended July 2, 2016. The unrealized loss was recorded in other expense (income), net on the consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 14—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 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 for the derivative assets was $0.1 million and $0.6 million as of July 2, 2016 and January 2, 2016, respectively. The fair value for the derivative liabilities as of July 2, 2016 and January 2, 2016 was $2.9 million and $8.0 million, respectively. Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. Other than the transfer of the contingent consideration liability from Level 3 to Level 1 during the three months ended July 2, 2016, no transfers between levels occurred during the three and six months ended July 2, 2016 and July 4, 2015. 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 July 2, 2016 and January 2, 2016 were as follows: July 2, 2016 January 2, 2016 Carrying Fair Carrying Fair (in millions of U.S. dollars) Value Value Value Value 6.750% senior notes due in 2020 1, 3 614.3 654.7 613.0 641.4 10.000% senior notes due in 2021 1, 2 387.2 392.9 390.1 397.3 5.375% senior notes due in 2022 1, 3 517.3 525.0 516.8 522.4 5.500% senior notes due in 2024 1, 3 490.4 513.4 — — Total $ 2,009.2 $ 2,086.0 $ 1,519.9 $ 1,561.1 1. The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 1 financial instruments. 2. The outstanding aggregate principal amount of $350.0 million of our DSS Notes was assumed by Cott at a fair value of $406.0 million in connection with Cott’s acquisition of DSS. The premium of $56.0 million is being amortized as an adjustment to interest expense using the effective interest method over the remaining contractual term of the DSS Notes. The remaining unamortized premium is $37.2 million and $40.1 million at July 2, 2016 and January 2, 2016, respectively. 3. The carrying value of our significant outstanding debt is net of unamortized debt issuance costs of $28.4 million and $20.6 million as of July 2, 2016 and January 2, 2016, respectively. Fair Value of Contingent Consideration We estimated the fair value of the contingent consideration related to the Aimia Acquisition utilizing financial projections of the acquired business and estimated probabilities of achievement of certain EBITDA targets. The fair value was previously based on significant inputs not observable in the market and thus represented a Level 3 instrument. Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect our own assumptions in measuring fair value. The fair value of the contingent consideration at July 2, 2016 was calculated using actual results for the acquired business for the twelve months ended July 1, 2016. Therefore the liability was transferred out of Level 3 and was classified as Level 1 at July 2, 2016. The acquisition date fair value of the contingent consideration was determined to be £10.6 million using a present valued probability-weighted income approach. The fair value of the contingent consideration at July 2, 2016 was determined to be £12.0 million ($15.9 million at exchange rates in effect on July 2, 2016) and is expected to be paid during the third quarter of 2016. Changes in the fair value of contingent consideration liabilities are recognized in other expense (income), net in our consolidated statements of operations. The following tables provide a reconciliation of the beginning and ending balances of this liability. For the Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in millions of U.S. dollars) 2016 2015 2016 2015 Fair value at beginning of period $ 15.9 $ 15.8 $ 16.4 $ 16.5 Fair value adjustment 1.2 0.6 1.2 0.6 Foreign exchange (gain) loss (1.2 ) 0.8 (1.7 ) 0.1 Transfers out (15.9 ) — (15.9 ) — Fair value at end of period $ — $ 17.2 $ — $ 17.2 |
Guarantor Subsidiaries
Guarantor Subsidiaries | 6 Months Ended |
Jul. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Subsidiaries | Note 15—Guarantor Subsidiaries Guarantor Subsidiaries of DSS Notes The DSS Notes assumed as part of the acquisition of DSS are guaranteed on a senior secured basis by Cott Corporation and certain of its 100% owned direct and indirect subsidiaries (the “DSS Guarantor Subsidiaries”). DSS and each DSS Guarantor Subsidiary is 100% owned by Cott Corporation. The DSS Notes are fully and unconditionally, jointly and severally, guaranteed by Cott Corporation and the DSS Guarantor Subsidiaries. The Indenture governing the DSS Notes requires any 100% owned domestic restricted subsidiary (i) that guarantees or becomes a borrower under the ABL facility or (ii) that guarantees any other debt of Cott Corporation, DSS or any of the DSS Guarantor Subsidiaries (other than junior lien obligations) secured by collateral to guarantee the DSS Notes. The guarantees of Cott Corporation and the DSS Guarantor Subsidiaries may be released in certain limited circumstances set forth in the Indenture governing the DSS Notes. We have not presented separate financial statements and separate disclosures have not been provided concerning the DSS Guarantor Subsidiaries due to the presentation of condensed consolidating financial information set forth in this Note, consistent with Securities and Exchange Commission (“SEC”) interpretations governing reporting of subsidiary financial information. The following summarized condensed consolidating financial information of the Company sets forth on a consolidating basis, our Balance Sheets, Statements of Operations and Cash Flows for Cott Corporation, DSS, the DSS Guarantor Subsidiaries and our other non-guarantor subsidiaries (the “DSS Non-Guarantor Subsidiaries”). This supplemental financial information reflects our investments and those of DSS in their respective subsidiaries using the equity method of accounting. At July 2, 2016, the issuer of the 2024 Notes was Cott Finance Corporation, which was not a DSS Guarantor Subsidiary. Cott Finance Corporation was declared an unrestricted subsidiary under the Indenture governing the DSS Notes. As a result, such entity is reflected as a DSS Non-Guarantor Subsidiary in the following summarized condensed consolidating financial information. Substantially simultaneously with the closing of the acquisition of Eden on August 2, 2016, Cott Finance Corporation combined with the Company by way of an amalgamation and the combined company, “Cott Corporation,” assumed all of the obligations of Cott Finance Corporation as issuer under the 2024 Notes, and Cott’s U.S., Canadian, U.K., Luxembourg 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. Currently, the obligors under the 2024 Notes are different than the obligors under the DSS Notes, but identical to the obligors under the 2022 Notes and the 2020 Notes. Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 48.2 $ 259.0 $ 437.3 $ 35.2 $ (14.7 ) $ 765.0 Cost of sales 38.9 98.9 360.6 28.7 (14.7 ) 512.4 Gross profit 9.3 160.1 76.7 6.5 — 252.6 Selling, general and administrative expenses 16.8 141.2 41.1 3.0 — 202.1 Loss on disposal of property, plant & equipment, net — 1.4 0.8 — — 2.2 Acquisition and integration expenses — 1.1 10.6 — — 11.7 Operating (loss) income (7.5 ) 16.4 24.2 3.5 — 36.6 Other expense (income), net 1.8 (0.3 ) 1.4 0.1 — 3.0 Intercompany interest expense (income), net — 10.8 (10.8 ) — — — Interest expense, net 0.2 7.2 19.6 — — 27.0 (Loss) income before income tax benefit and equity income (9.5 ) (1.3 ) 14.0 3.4 — 6.6 Income tax benefit — 0.4 1.9 — — 2.3 Equity income 16.9 — 1.5 — (18.4 ) — Net income (loss) $ 7.4 $ (0.9 ) $ 17.4 $ 3.4 $ (18.4 ) $ 8.9 Less: Net income attributable to non-controlling interests — — — 1.5 — 1.5 Net income (loss) attributed to Cott Corporation $ 7.4 $ (0.9 ) $ 17.4 $ 1.9 $ (18.4 ) $ 7.4 Comprehensive (loss) income attributed to Cott Corporation $ (4.6 ) $ (0.9 ) $ 75.4 $ 4.0 $ (78.5 ) $ (4.6 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 82.0 $ 502.1 $ 844.1 $ 63.7 $ (28.5 ) $ 1,463.4 Cost of sales 68.6 196.3 708.8 51.6 (28.5 ) 996.8 Gross profit 13.4 305.8 135.3 12.1 — 466.6 Selling, general and administrative expenses 22.3 278.4 92.7 5.7 — 399.1 Loss (gain) on disposal of property, plant & equipment, net — 3.2 (0.1 ) — — 3.1 Acquisition and integration expenses — 2.0 11.1 — — 13.1 Operating (loss) income (8.9 ) 22.2 31.6 6.4 — 51.3 Other expense (income), net 0.2 (1.3 ) 1.8 0.1 — 0.8 Intercompany interest expense (income), net — 21.6 (21.6 ) — — — Interest expense, net 0.4 14.6 39.8 — — 54.8 (Loss) income before income tax (benefit) expense and equity income (9.5 ) (12.7 ) 11.6 6.3 — (4.3 ) Income tax (benefit) expense — (4.6 ) (6.8 ) 0.1 — (11.3 ) Equity income 13.6 — 3.3 — (16.9 ) — Net income (loss) $ 4.1 $ (8.1 ) $ 21.7 $ 6.2 $ (16.9 ) $ 7.0 Less: Net income attributable to non-controlling interests — — — 2.9 — 2.9 Net income (loss) attributed to Cott Corporation $ 4.1 $ (8.1 ) $ 21.7 $ 3.3 $ (16.9 ) $ 4.1 Comprehensive (loss) income attributed to Cott Corporation $ (10.5 ) $ (8.1 ) $ 106.2 $ 3.4 $ (101.5 ) $ (10.5 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 46.9 $ 257.0 $ 457.5 $ 38.3 $ (19.9 ) $ 779.8 Cost of sales 38.4 100.8 389.0 30.9 (19.9 ) 539.2 Gross profit 8.5 156.2 68.5 7.4 — 240.6 Selling, general and administrative expenses 4.9 139.1 43.2 3.0 — 190.2 Loss (gain) on disposal of property, plant & equipment — 0.9 (0.7 ) — — 0.2 Acquisition and integration expenses — 3.1 1.0 — — 4.1 Operating income 3.6 13.1 25.0 4.4 — 46.1 Other expense (income), net 0.7 (0.2 ) 0.6 (0.1 ) — 1.0 Intercompany interest (income) expense, net (1.9 ) 11.0 (9.1 ) — — — Interest expense, net — 7.5 20.4 — — 27.9 Income (loss) before income tax expense (benefit) and equity income 4.8 (5.2 ) 13.1 4.5 — 17.2 Income tax expense (benefit) 1.8 (1.8 ) (1.2 ) 0.1 — (1.1 ) Equity income 13.6 — 1.6 — (15.2 ) — Net income (loss) $ 16.6 $ (3.4 ) $ 15.9 $ 4.4 $ (15.2 ) $ 18.3 Less: Net income attributable to non-controlling interests — — — 1.7 — 1.7 Less: Accumulated dividends on convertible preferred shares 1.8 — — — — 1.8 Less: Accumulated dividends on non-convertible preferred shares 0.6 — — — — 0.6 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net income (loss) attributed to Cott Corporation $ 2.2 $ (3.4 ) $ 15.9 $ 2.7 $ (15.2 ) $ 2.2 Comprehensive income (loss) attributed to Cott Corporation $ 24.4 $ (3.4 ) $ 59.3 $ 4.2 $ (60.1 ) $ 24.4 Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 76.9 $ 497.3 $ 875.8 $ 69.7 $ (30.1 ) $ 1,489.6 Cost of sales 65.4 201.2 754.4 56.8 (30.1 ) 1,047.7 Gross profit 11.5 296.1 121.4 12.9 — 441.9 Selling, general and administrative expenses 10.4 276.3 85.9 6.1 — 378.7 Loss (gain) on disposal of property, plant & equipment — 2.0 (0.4 ) — — 1.6 Acquisition and integration expenses — 6.1 2.7 — — 8.8 Operating income 1.1 11.7 33.2 6.8 — 52.8 Other (income) expense, net (9.8 ) (0.4 ) 0.8 — — (9.4 ) Intercompany interest (income) expense, net (4.9 ) 21.9 (17.0 ) — — — Interest expense, net 0.1 14.8 40.7 — — 55.6 Income (loss) before income tax expense (benefit) and equity income 15.7 (24.6 ) 8.7 6.8 — 6.6 Income tax expense (benefit) 3.0 (9.0 ) (4.7 ) 0.2 — (10.5 ) Equity income 1.4 — 3.0 — (4.4 ) — Net income (loss) $ 14.1 $ (15.6 ) $ 16.4 $ 6.6 $ (4.4 ) $ 17.1 Less: Net income attributable to non-controlling interests — — — 3.0 — 3.0 Less: Accumulated dividends on convertible preferred shares 4.5 — — — — 4.5 Less: Accumulated dividends on non-convertible preferred shares 1.4 — — — — 1.4 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net (loss) income attributed to Cott Corporation $ (3.8 ) $ (15.6 ) $ 16.4 $ 3.6 $ (4.4 ) $ (3.8 ) Comprehensive (loss) income attributed to Cott Corporation $ (7.4 ) $ (15.6 ) $ 43.5 $ 4.8 $ (32.7 ) $ (7.4 ) Consolidating Balance Sheets (in millions of U.S. dollars) Unaudited As of July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Restricted cash — — — 503.1 — 503.1 Accounts receivable, net of allowance 37.1 124.0 226.7 13.2 (61.5 ) 339.5 Income taxes recoverable 0.1 1.1 — 0.4 (0.7 ) 0.9 Inventories 15.1 29.1 196.5 6.4 — 247.1 Prepaid expenses and other assets 1.9 9.5 12.3 0.4 — 24.1 Total current assets 236.8 190.1 468.7 530.8 (62.2 ) 1,364.2 Property, plant & equipment, net 30.3 379.9 353.9 6.1 — 770.2 Goodwill 21.2 580.7 175.5 — — 777.4 Intangibles and other assets, net 0.9 387.7 300.9 0.9 — 690.4 Deferred tax assets 12.6 — 44.7 0.2 (44.7 ) 12.8 Due from affiliates 366.4 — 544.4 — (910.8 ) — Investments in subsidiaries 392.0 — 400.1 — (792.1 ) — Total assets $ 1,060.2 $ 1,538.4 $ 2,288.2 $ 538.0 $ (1,809.8 ) $ 3,615.0 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ — $ 3.4 $ 0.2 $ — $ 3.6 Accounts payable and accrued liabilities 70.8 158.9 277.0 23.5 (62.2 ) 468.0 Total current liabilities 70.8 158.9 280.4 23.7 (62.2 ) 471.6 Long-term debt — 387.2 1,135.7 490.4 — 2,013.3 Deferred tax liabilities — 92.8 15.6 — (44.7 ) 63.7 Other long-term liabilities 0.5 37.2 33.6 1.2 — 72.5 Due to affiliates 1.2 543.3 340.0 26.3 (910.8 ) — Total liabilities 72.5 1,219.4 1,805.3 541.6 (1,017.7 ) 2,621.1 Equity Common shares, no par 904.9 355.5 802.3 39.8 (1,197.6 ) 904.9 Additional paid-in-capital 54.6 — — — — 54.6 Retained earnings (deficit) 119.0 (36.3 ) (418.2 ) (58.7 ) 513.2 119.0 Accumulated other comprehensive (loss) income (90.8 ) (0.2 ) 98.8 9.1 (107.7 ) (90.8 ) Total Cott Corporation equity 987.7 319.0 482.9 (9.8 ) (792.1 ) 987.7 Non-controlling interests — — — 6.2 — 6.2 Total equity 987.7 319.0 482.9 (3.6 ) (792.1 ) 993.9 Total liabilities and equity $ 1,060.2 $ 1,538.4 $ 2,288.2 $ 538.0 $ (1,809.8 ) $ 3,615.0 Consolidating Balance Sheets (in millions of U.S. dollars) As of January 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated ASSETS Current assets Cash & cash equivalents $ 20.8 $ 12.8 $ 38.4 $ 5.1 $ — $ 77.1 Accounts receivable, net of allowance 18.3 122.6 184.6 13.0 (45.2 ) 293.3 Income taxes recoverable — 0.5 0.9 0.2 — 1.6 Inventories 13.0 31.4 199.4 5.6 — 249.4 Prepaid expenses and other assets 2.2 4.8 10.0 0.2 — 17.2 Total current assets 54.3 172.1 433.3 24.1 (45.2 ) 638.6 Property, plant & equipment, net 29.7 372.6 360.8 6.7 — 769.8 Goodwill 19.8 579.1 160.7 — — 759.6 Intangibles and other assets, net 0.8 402.5 305.6 2.8 — 711.7 Deferred tax assets 7.4 — 38.2 0.2 (38.2 ) 7.6 Due from affiliates 400.1 — 544.3 — (944.4 ) — Investments in subsidiaries 176.3 — 400.0 — (576.3 ) — Total assets $ 688.4 $ 1,526.3 $ 2,242.9 $ 33.8 $ (1,604.1 ) $ 2,887.3 LIABILITIES AND EQUITY Current liabilities Short-term borrowings $ — $ — $ 122.0 $ — $ — $ 122.0 Current maturities of long-term debt — — 3.0 0.4 — 3.4 Accounts payable and accrued liabilities 47.6 131.8 295.1 8.3 (45.2 ) 437.6 Total current liabilities 47.6 131.8 420.1 8.7 (45.2 ) 563.0 Long-term debt — 390.1 1,135.3 — — 1,525.4 Deferred tax liabilities — 97.7 17.0 — (38.2 ) 76.5 Other long-term liabilities 0.5 36.2 38.7 1.1 — 76.5 Due to affiliates 1.0 543.3 371.9 28.2 (944.4 ) — Total liabilities 49.1 1,199.1 1,983.0 38.0 (1,027.8 ) 2,241.4 Equity Common shares, no par 534.7 355.5 683.1 38.6 (1,077.2 ) 534.7 Additional paid-in-capital 51.2 — — — — 51.2 Retained earnings (deficit) 129.6 (28.1 ) (437.5 ) (58.4 ) 524.0 129.6 Accumulated other comprehensive (loss) income (76.2 ) (0.2 ) 14.3 9.0 (23.1 ) (76.2 ) Total Cott Corporation equity 639.3 327.2 259.9 (10.8 ) (576.3 ) 639.3 Non-controlling interests — — — 6.6 — 6.6 Total equity 639.3 327.2 259.9 (4.2 ) (576.3 ) 645.9 Total liabilities and equity $ 688.4 $ 1,526.3 $ 2,242.9 $ 33.8 $ (1,604.1 ) $ 2,887.3 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (0.3 ) $ 29.6 $ 67.2 $ 5.2 $ (14.1 ) $ 87.6 Investing Activities Acquisitions, net of cash received 0.5 (2.3 ) — — — (1.8 ) Additions to property, plant & equipment (0.5 ) (20.8 ) (11.6 ) (0.3 ) — (33.2 ) Additions to intangibles and other assets — (0.6 ) (0.4 ) — — (1.0 ) Proceeds from sale of property, plant & equipment — — 0.2 — — 0.2 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (2.8 ) (23.7 ) (11.8 ) (0.3 ) — (38.6 ) Financing Activities Payments of long-term debt — — (0.3 ) (0.1 ) — (0.4 ) Borrowings under ABL 57.2 — 66.7 — — 123.9 Payments under ABL (88.9 ) — (98.8 ) — — (187.7 ) Distributions to non-controlling interests — — — (1.0 ) — (1.0 ) Issuance of common shares 220.1 — — — — 220.1 Dividends paid to common shareowners (7.4 ) — — — — (7.4 ) Intercompany dividends — — (13.0 ) (1.1 ) 14.1 — Net cash provided by (used in) financing activities 181.0 — (45.4 ) (2.2 ) 14.1 147.5 Effect of exchange rate changes on cash (0.2 ) — (1.8 ) (0.1 ) — (2.1 ) Net increase in cash & cash equivalents 177.7 5.9 8.2 2.6 — 194.4 Cash & cash equivalents, beginning of period 4.9 20.5 25.0 4.7 — 55.1 Cash & cash equivalents, end of period $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (137.1 ) $ 55.7 $ 156.9 $ 9.9 $ (16.5 ) $ 68.9 Investing Activities Acquisitions, net of cash received (42.7 ) (3.5 ) — — — (46.2 ) Additions to property, plant & equipment (0.9 ) (37.6 ) (23.6 ) (0.6 ) — (62.7 ) Additions to intangibles and other assets (0.1 ) (1.1 ) (2.1 ) — — (3.3 ) Proceeds from sale of property, plant & equipment — 0.1 2.8 — — 2.9 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (46.5 ) (42.1 ) (22.9 ) (0.6 ) — (112.1 ) Financing Activities Payments of long-term debt — — (1.3 ) (0.2 ) — (1.5 ) Borrowings under ABL 144.8 — 476.3 — — 621.1 Payments under ABL (147.7 ) — (598.3 ) — — (746.0 ) Distributions to non-controlling interests — — — (3.3 ) — (3.3 ) Issuance of common shares 364.2 — — — — 364.2 Common shares repurchased and cancelled (1.1 ) — — — — (1.1 ) Dividends paid to common shareowners (14.7 ) — — — — (14.7 ) Intercompany dividends — — (13.0 ) (3.5 ) 16.5 — Net cash provided by (used in) financing activities 345.5 — (136.3 ) (7.0 ) 16.5 218.7 Effect of exchange rate changes on cash (0.1 ) — (2.9 ) (0.1 ) — (3.1 ) Net increase (decrease) in cash & cash equivalents 161.8 13.6 (5.2 ) 2.2 — 172.4 Cash & cash equivalents, beginning of period 20.8 12.8 38.4 5.1 — 77.1 Cash & cash equivalents, end of period $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 29.3 $ 20.6 $ 24.5 $ 13.5 $ (12.2 ) $ 75.7 Investing Activities Acquisition, net of cash received — (0.5 ) — — — (0.5 ) Additions to property, plant & equipment (0.2 ) (20.4 ) (8.9 ) (0.4 ) — (29.9 ) Additions to intangibles and other assets — (0.1 ) — — — (0.1 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 14.2 25.9 — — 40.1 Net cash (used in) provided by investing activities (0.2 ) (6.8 ) 17.0 (0.4 ) — 9.6 Financing Activities Payments of long-term debt — — (0.9 ) (0.2 ) — (1.1 ) Borrowings under ABL — — 654.1 — — 654.1 Payments under ABL — — (674.4 ) — — (674.4 ) Distributions to non-controlling interests — — — (1.6 ) — (1.6 ) Issuance of common shares 142.5 — — — — 142.5 Financing fees — — (0.2 ) — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Dividends paid to common and preferred shareowners (9.0 ) — — — — (9.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — — (2.2 ) (10.0 ) 12.2 — Net cash used in financing activities (15.3 ) — (26.1 ) (11.8 ) 12.2 (41.0 ) Effect of exchange rate changes on cash (0.3 ) — 0.6 (0.1 ) — 0.2 Net increase in cash & cash equivalents 13.5 13.8 16.0 1.2 — 44.5 Cash & cash equivalents, beginning of period 0.3 14.8 14.8 4.6 — 34.5 Cash & cash equivalents, end of period $ 13.8 $ 28.6 $ 30.8 $ 5.8 $ — $ 79.0 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 33.7 $ 21.2 $ 20.9 $ 15.2 $ (16.4 ) $ 74.6 Investing Activities Acquisition, net of cash received — (0.5 ) — — — (0.5 ) Additions to property, plant & equipment (0.5 ) (38.8 ) (17.5 ) (0.4 ) — (57.2 ) Additions to intangibles and other assets — (1.9 ) (0.3 ) — — (2.2 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 14.2 26.3 — — 40.5 Net cash (used in) provided by investing activities (0.5 ) (27.0 ) 8.5 (0.4 ) — (19.4 ) Financing Activities Payments of long-term debt — — (1.4 ) (0.5 ) — (1.9 ) Borrowings under ABL — — 748.9 — — 748.9 Payments under ABL — — (777.2 ) — — (777.2 ) Distributions to non-controlling interests — — — (3.6 ) — (3.6 ) Issuance of common shares 142.6 — — — — 142.6 Financing fees — — (0.2 ) — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Common shares repurchased and cancelled (0.7 ) — — — — (0.7 ) Dividends paid to common and preferred shareowners (18.0 ) — — — — (18.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — — (4.3 ) (12.1 ) 16.4 — Net cash used in financing activities (24.9 ) — (36.7 ) (16.2 ) 16.4 (61.4 ) Effect of exchange rate changes on cash (0.7 ) — (0.1 ) (0.2 ) — (1.0 ) Net increase (decrease) in cash & cash equivalents 7.6 (5.8 ) (7.4 ) (1.6 ) — (7.2 ) Cash & cash equivalents, beginning of period 6.2 34.4 38.2 7.4 — 86.2 Cash & cash equivalents, end of period $ 13.8 $ 28.6 $ 30.8 $ 5.8 $ — $ 79.0 Guarantor Subsidiaries of 2022 Notes and 2020 Notes The 2022 Notes and 2020 Notes, each issued by Cott Corporation’s 100% owned subsidiary Cott Beverages Inc. (“CBI”), are guaranteed on a senior basis by Cott Corporation and certain of its 100% owned direct and indirect subsidiaries (the “Cott Guarantor Subsidiaries”). The 2022 Notes and the 2020 Notes are fully and unconditionally, jointly and severally, guaranteed by Cott Corporation and the Cott Guarantor Subsidiaries. The Indentures governing the 2022 Notes and the 2020 Notes require (i) any 100% owned direct and indirect restricted subsidiary that guarantees any debt of CBI or any guarantor and (ii) any non-100% owned subsidiary that guarantees any other capital markets debt of CBI or any guarantor to guarantee the 2022 Notes and the 2020 Notes. No non-100% owned subsidiaries guarantee the 2022 Notes or the 2020 Notes. The guarantees of Cott Corporation and the Cott Guarantor Subsidiaries may be released in certain limited circumstances set forth in the Indentures governing the 2022 Notes and the 2020 Notes. We have not presented separate financial statements and separate disclosures have not been provided concerning the Cott Guarantor Subsidiaries due to the presentation of condensed consolidating financial information set forth in this Note, consistent with the SEC interpretations governing reporting of subsidiary financial information. The following summarized condensed consolidating financial information of the Company sets forth on a consolidating basis, our Balance Sheets, Statements of Operations and Cash Flows for Cott Corporation, CBI, the Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries (the “Cott Non-Guarantor Subsidiaries”). This supplemental financial information reflects our investments and those of CBI in their respective subsidiaries using the equity method of accounting. At July 2, 2016, the issuer of the 2024 Notes was Cott Finance Corporation, which was not a Cott Guarantor Subsidiary. Cott Finance Corporation was declared an unrestricted subsidiary under the Indentures governing the 2022 Notes and the 2020 Notes. As a result, such entity is reflected as a Cott Non-Guarantor Subsidiary in the following summarized condensed consolidating financial information. Substantially simultaneously with the closing of the acquisition of Eden on August 2, 2016, Cott Finance Corporation combined with the Company by way of an amalgamation and the combined company, “Cott Corporation,” assumed all of the obligations of Cott Finance Corporation as issuer under the 2024 Notes, and Cott’s U.S., Canadian, U.K., Luxembourg 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. Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Consolidated Revenue, net $ 48.2 $ 191.3 $ 505.0 $ 35.2 $ (14.7 ) $ 765.0 Cost of sales 38.9 158.3 301.2 28.7 (14.7 ) 512.4 Gross profit 9.3 33.0 203.8 6.5 — 252.6 Selling, general and administrative expenses 16.8 15.8 166.5 3.0 — 202.1 Loss on disposal of property, plant & equipment, net — 0.2 2.0 — — 2.2 Acquisition and integration expenses — 10.7 1.0 — — 11.7 Operating (loss) income (7.5 ) 6.3 34.3 3.5 — 36.6 Other expense, net 1.8 0.1 1.0 0.1 — 3.0 Intercompany interest (income) expense, net — (11.3 ) 11.3 — — — Interest expense, net 0.2 19.5 7.3 — — 27.0 (Loss) income before income tax benefit and equity income (9.5 ) (2.0 ) 14.7 3.4 — 6.6 Income tax benefit — 1.6 0.7 — — 2.3 Equity income 16.9 1.5 — — (18.4 ) — Net income $ 7.4 $ 1.1 $ 15.4 $ 3.4 $ (18.4 ) $ 8.9 Less: Net income attributable to non-controlling interests — — — 1.5 — 1.5 Net income attributed to Cott Corporation $ 7.4 $ 1.1 $ 15.4 $ 1.9 $ (18.4 ) $ 7.4 Comprehensive (loss) income attributed to Cott Corporation $ (4.6 ) $ (0.1 ) $ 74.6 $ 4.0 $ (78.5 ) $ (4.6 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 82.0 $ 360.2 $ 986.0 $ 63.7 $ (28.5 ) $ 1,463.4 Cost of sales 68.6 304.3 600.8 51.6 (28.5 ) 996.8 Gross profit 13.4 55.9 385.2 12.1 — 466.6 Selling, general and administrative expenses 22.3 43.9 327.2 5.7 — 399.1 Loss on disposal of property, plant & equipment, net — 0.5 2.6 — — 3.1 Acquisition and integration expenses — 11.0 2.1 — — 13.1 Operating (loss) income (8.9 ) 0.5 53.3 6.4 — 51.3 Other expense, net 0.2 — 0.5 0.1 — 0.8 Intercompany interest (income) expense, net — (22.7 ) 22.7 — — — Interest expense, net 0.4 39.6 14.8 — — 54.8 (Loss) income before income tax (benefit) expense and equity income (9.5 ) (16.4 ) 15.3 6.3 — (4.3 ) Income tax (benefit) expense — (7.2 ) (4.2 ) 0.1 — (11.3 ) Equity income 13.6 3.0 0.3 — (16.9 ) — Net income (loss) $ 4.1 $ (6.2 ) $ 19.8 $ 6.2 $ (16.9 ) $ 7.0 Less: Net income attributable to non-controlling interests — — — 2.9 — 2.9 Net income (loss) attributed to Cott Corporation $ 4.1 $ (6.2 ) $ 19.8 $ 3.3 $ (16.9 ) $ 4.1 Comprehensive (loss) income attributed to Cott Corporation $ (10.5 ) $ (7.5 ) $ 105.6 $ 3.4 $ (101.5 ) $ (10.5 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 46.9 $ 197.1 $ 517.4 $ 38.3 $ (19.9 ) $ 779.8 Cost of sales 38.4 164.9 324.9 30.9 (19.9 ) 539.2 Gross profit 8.5 32.2 192.5 7.4 — 240.6 Selling, general and administrative expenses 4.9 24.6 157.7 3.0 — 190.2 (Gain) loss on disposal of property, plant & equipment — (0.7 ) 0.9 — — 0.2 Acquisition and integration expenses — 0.5 3.6 — — 4.1 Operating income 3.6 7.8 30.3 4.4 — 46.1 Other expense (income), net 0.7 — 0.4 (0.1 ) — 1.0 Intercompany interest (income) expense, net (1.9 ) (13.3 ) 15.2 — — — Interest expense, net — 20.2 7.7 — — 27.9 Income before income tax expense (benefit) and equity income 4.8 0.9 7.0 4.5 — 17.2 Income tax expense (benefit) 1.8 (1.9 ) (1.1 ) 0.1 — (1.1 ) Equity income 13.6 1.6 — — (15.2 ) — Net income $ 16.6 $ 4.4 $ 8.1 $ 4.4 $ (15.2 ) $ 18.3 Less: Net income attributable to non-controlling interests — — — 1.7 — 1.7 Less: Accumulated dividends on convertible preferred shares 1.8 — — — — 1.8 Less: Accumulated dividends on non-convertible preferred shares 0.6 — — — — 0.6 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net income attributed to Cott Corporation $ 2.2 $ 4.4 $ 8.1 $ 2.7 $ (15.2 ) $ 2.2 Comprehensive income attributed to Cott Corporation $ 24.4 $ 26.5 $ 21.4 $ 4.2 $ (52.1 ) $ 24.4 Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 76.9 $ 367.1 $ 1,006.0 $ 69.7 $ (30.1 ) $ 1,489.6 Cost of sales 65.4 310.7 644.9 56.8 (30.1 ) 1,047.7 Gross profit 11.5 56.4 361.1 12.9 — 441.9 Selling, general and administrative expenses 10.4 48.4 313.8 6.1 — 378.7 (Gain) loss on disposal of property, plant & equipment — (0.4 ) 2.0 — — 1.6 Acquisition and integration expenses — 2.0 6.8 — — 8.8 Operating income 1.1 6.4 38.5 6.8 — 52.8 Other (income) expense, net (9.8 ) — 0.4 — — (9.4 ) Intercompany interest (income) expense, net (4.9 ) (25.5 ) 30.4 — — — Interest expense, net 0.1 40.3 15.2 — — 55.6 Income (loss) before income tax expense (benefit) and equity income 15.7 (8.4 ) (7.5 ) 6.8 — 6.6 Income tax expense (benefit) 3.0 (6.5 ) (7.2 ) 0.2 — (10.5 ) Equity income 1.4 3.0 — — (4.4 ) — Net income (loss) $ 14.1 $ 1.1 $ (0.3 ) $ 6.6 $ (4.4 ) $ 17.1 Less: Net income attributable to non-controlling interests — — — 3.0 — 3.0 Less: Accumulated dividends on convertible preferred shares 4.5 — — — — 4.5 Less: Accumulated dividends on non-convertible preferred shares 1.4 — — — — 1.4 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net (loss) income attributed to Cott Corporation $ (3.8 ) $ 1.1 $ (0.3 ) $ 3.6 $ (4.4 ) $ (3.8 ) Comprehensive (loss) income attributed to Cott Corporation $ (7.4 ) $ 3.7 $ 0.9 $ 4.8 $ (9.4 ) $ (7.4 ) Consolidating Balance Sheets (in millions of U.S. dollars) Unaudited As of July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 182.6 $ 2.4 $ 57.2 $ 7.3 $ — $ 249.5 Restricted cash — — — 503.1 — 503.1 Accounts receivable, net of allowance 37.1 82.8 385.7 13.2 (179.3 ) 339.5 Income taxes recoverable 0.1 — 1.1 0.4 (0.7 ) 0.9 Inventories 15.1 75.1 150.5 6.4 — 247.1 Prepaid expenses and other assets 1.9 6.7 15.1 0.4 — 24.1 Total current assets 236.8 167.0 609.6 530.8 (180.0 ) 1,364.2 Property, plant & equipment, net 30.3 156.9 576.9 6.1 — 770.2 Goodwill 21.2 4.5 751.7 — — 777.4 Intangibles and other assets, net 0.9 78.6 610.0 0.9 — 690.4 Deferred tax assets 12.6 44.7 — 0.2 (44.7 ) 12.8 Due from affiliates 366.4 583.2 142.7 — (1,092.3 ) — Investments in subsidiaries 392.0 847.3 729.5 — (1,968.8 ) — Total assets $ 1,060.2 $ 1,882.2 $ 3,420.4 $ 538.0 $ (3,285.8 ) $ 3,615.0 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ 3.0 $ 0.4 $ 0.2 $ — $ 3.6 Accounts payable and accrued liabilities 70.8 218.5 335.2 23.5 (180.0 ) 468.0 Total current liabilities 70.8 221.5 335.6 23.7 (180.0 ) 471.6 Long-term debt — 1,134.6 388.3 490.4 — 2,013.3 Deferred tax liabilities — — 108.4 — (44.7 ) 63.7 Other long-term liabilities 0.5 19.9 50.9 1.2 — 72.5 Due to affiliates 1.2 141.6 923.2 26.3 (1,092.3 ) — Total liabilities 72.5 1,517.6 1,806.4 541.6 (1,317.0 ) 2,621.1 Equity Common shares, no par 904.9 728.4 1,606.1 39.8 (2,374.3 ) 904.9 Additional paid-in-capital 54.6 — — — — 54.6 Retained earnings (deficit) 119.0 (345.8 ) (108.7 ) (58.7 ) 513.2 119.0 Accumulated other comprehensive (loss) income (90.8 ) (18.0 ) 116.6 9.1 (107.7 ) (90.8 ) Total Cott Corporation equity 987.7 364.6 1,614.0 (9.8 ) (1,968.8 ) 987.7 Non-controlling interests — — — 6.2 — 6.2 Total equity 987.7 364.6 1,614.0 (3.6 ) (1,968.8 ) 993.9 Total liabilities and equity $ 1,060.2 $ 1,882.2 $ 3,420.4 $ 538.0 $ (3,285.8 ) $ 3,615.0 Consolidating Balance Sheets (in millions of U.S. dollars) As of January 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages, Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 20.8 $ 1.0 $ 50.2 $ 5.1 $ — $ 77.1 Accounts receivable, net of allowance 18.3 63.3 361.8 13.0 (163.1 ) 293.3 Income taxes recoverable — 0.6 0.8 0.2 — 1.6 Inventories 13.0 76.7 154.1 5.6 — 249.4 Prepaid expenses and other assets 2.2 4.6 10.2 0.2 — 17.2 Total current assets 54.3 146.2 577.1 24.1 (163.1 ) 638.6 Property, plant & equipment, net 29.7 163.3 570.1 6.7 — 769.8 Goodwill 19.8 4.5 735.3 — — 759.6 Intangibles and other assets, net 0.8 79.2 628.9 2.8 — 711.7 Deferred tax assets 7.4 38.2 — 0.2 (38.2 ) 7.6 Due from affiliates 400.1 587.5 2.6 — (990.2 ) — Investments in subsidiaries 176.3 847.3 702.5 — (1,726.1 ) — Total assets $ 688.4 $ 1,866.2 $ 3,216.5 $ 33.8 $ (2,917.6 ) $ 2,887.3 LIABILITIES AND EQUITY Current liabilities Short-term borrowings $ — $ 122.0 $ — $ — $ — $ 122.0 Current maturities of long-term debt — 2.6 0.4 0.4 — 3.4 Accounts payable and accrued liabilities 47.6 234.6 310.2 8.3 (163.1 ) 437.6 Total current liabilities 47.6 359.2 310.6 8.7 (163.1 ) 563.0 Long-term debt — 1,134.1 391.3 — — 1,525.4 Deferred tax liabilities — — 114.7 — (38.2 ) 76.5 Other long-term liabilities 0.5 20.0 54.9 1.1 — 76.5 Due to affiliates 1.0 1.6 959.4 28.2 (990.2 ) — Total liabilities 49.1 1,514.9 1,830.9 38.0 (1,191.5 ) 2,241.4 Equity Common shares, no par 534.7 701.5 1,486.9 38.6 (2,227.0 ) 534.7 Additional paid-in-capital 51.2 — — — — 51.2 Retained earnings (deficit) 129.6 (333.5 ) (132.1 ) (58.4 ) 524.0 129.6 Accumulated other comprehensive (loss) income (76.2 ) (16.7 ) 30.8 9.0 (23.1 ) (76.2 ) Total Cott Corporation equity 639.3 351.3 1,385.6 (10.8 ) (1,726.1 ) 639.3 Non-controlling interests — — — 6.6 — 6.6 Total equity 639.3 351.3 1,385.6 (4.2 ) (1,726.1 ) 645.9 Total liabilities and equity $ 688.4 $ 1,866.2 $ 3,216.5 $ 33.8 $ (2,917.6 ) $ 2,887.3 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott Cott Cott Cott Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (0.3 ) $ 46.8 $ 50.0 $ 5.2 $ (14.1 ) $ 87.6 Investing Activities Acquisitions, net of cash received 0.5 — (2.3 ) — — (1.8 ) Additions to property, plant & equipment (0.5 ) (4.3 ) (28.1 ) (0.3 ) — (33.2 ) Additions to intangibles and other assets — (0.4 ) (0.6 ) — — (1.0 ) Proceeds from sale of property, plant & equipment — 0.1 0.1 — — 0.2 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (2.8 ) (4.6 ) (30.9 ) (0.3 ) — (38.6 ) Financing Activities Payments of long-term debt — (0.3 ) — (0.1 ) — (0.4 ) Borrowings under ABL 57.2 66.7 — — — 123.9 Payments under ABL (88.9 ) (98.8 ) — — — (187.7 ) Distributions to non- |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16—Subsequent Events On August 2, 2016, the Company acquired the sole issued and outstanding share in the share capital of Eden, a leading European direct-to-consumer services provider specializing in HOD water, OCS and filtration, in a share purchase for €470 million (approximately $525 million on the closing date) on a debt and cash free basis, subject to adjustments for working capital, indebtedness and certain expenses. The acquisition was funded using the escrowed proceeds from the 2024 Notes and cash on hand. This acquisition supports the Company’s strategy to become a more diversified beverage provider across multiple channels and geographies, as well as the Company’s continuing move toward the higher margin HOD bottled water and OCS categories. Due to the limited amount of time since the Eden acquisition closing date, the Company is unable to provide actual amounts recognized related to the Eden assets acquired and liabilities assumed as the accounting for the purchase price allocation has not yet been completed. As a result, certain required disclosures relative to the acquisition of Eden, including those related to any goodwill or bargain purchase amounts to be recognized, have not been made. On August 3, 2016, the Company entered into a definitive stock purchase agreement to acquire S&D for approximately $355 million, subject to adjustments for working capital, indebtedness and certain expenses. The Company expects to fund the purchase price using cash on hand as well as borrowings under the ABL facility. S&D is a premium coffee roaster and provider of customized coffee, tea, and extract solutions to the foodservice, convenience, gas, hospitality and office segments in the United States. This acquisition is expected to close during the third quarter of 2016. On August 3, 2016, the Company amended and restated the ABL facility. The amended and restated ABL facility is a five-year revolving facility of up to $500 million and subject to certain conditions, may be increased up to an additional $100 million at the Company’s option if agreed upon by the lenders. The amended and restated ABL facility provides the Company and its subsidiaries, CBI, Cott Beverages Limited, DSS and Cliffstar LLC, with financing in the United States, Canada, the United Kingdom, Luxembourg and the Netherlands. 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 amended and restated 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 governing the amended and restated ABL facility. The debt under the amended and restated ABL facility is guaranteed by most of the Company’s U.S., Canadian, U.K. and Luxembourg subsidiaries and certain of the Company’s Dutch subsidiaries. On August 3, 2016, the Company’s board of directors declared a dividend of $0.06 per share on common shares, payable in cash on September 7, 2016 to shareowners of record at the close of business on August 25, 2016. |
Business and Recent Accountin25
Business and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 02, 2016 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash includes cash that is restricted as to withdrawal or usage. The Company’s restricted cash was $503.1 million as of July 2, 2016 on our consolidated balance sheet and consists of the proceeds from the issuance of the 5.500% senior notes due 2024 that are held in escrow to fund a portion of the purchase price for the acquisition of Eden (see Note 16 to the consolidated financial statements). |
Cost of sales | Cost of sales We record costs associated with the manufacturing of our products in costs 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. Costs incurred in shipment of products from our production facilities to customer locations are also reflected in cost of sales, with the exception of shipping and handling costs incurred to deliver products from DSS branch locations to the end-user consumer of those products which are recorded in selling, general and administrative (“SG&A”) expenses and were $78.8 million and $156.6 million for the three and six months ended July 2, 2016 and $69.7 million and $134.7 million for the three and six months ended July 4, 2015, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. |
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 and swap agreements for certain commodities. Forward contracts are agreements to buy or sell a quantity of a currency at a predetermined future date, and at a predetermined rate or price. 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 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 with 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 effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized into earnings. We estimate the fair values of our derivatives based on quoted market prices or pricing models using current market rates (see Note 14 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. |
Acquisitions (Tables)
Acquisitions (Tables) - AquaTerra Corporation [Member] | 6 Months Ended |
Jul. 02, 2016 | |
Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The table below presents the preliminary purchase price allocation of the estimated acquisition date fair values of the assets acquired and the liabilities assumed and shows the allocation after the post-closing adjustment: As reported at (in millions of U.S. dollars) Acquired Value Adjustments July 2, 2016 Cash $ 1.3 $ — $ 1.3 Accounts receivable 6.2 — 6.2 Inventories 2.1 — 2.1 Prepaid expenses and other current assets 1.3 — 1.3 Property, plant & equipment 13.4 — 13.4 Goodwill 19.2 (0.5 ) 1 18.7 Intangible and other assets 17.4 — 17.4 Accounts payable and accrued liabilities (15.8 ) — (15.8 ) Long-term debt (0.3 ) — (0.3 ) Other long-term liabilities (0.3 ) — (0.3 ) Total $ 44.5 $ (0.5 ) $ 44.0 1. The working capital adjustment was reflected in the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as reported at April 2, 2016. When the post-closing adjustment was completed in May 2016, an adjustment to goodwill was made as reported at July 2, 2016. |
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 Aquaterra Acquisition and their estimated weighted average useful lives: Estimated Fair Estimated (in millions of U.S. dollars) Market Value Useful Life Customer relationships $ 10.0 12 years Trademarks and trade names 6.7 Indefinite Total $ 16.7 |
Common Shares and Net Income 27
Common Shares and Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominators of Basic and Diluted Net Income (Loss) 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 Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in millions of U.S. dollars) 2016 2015 2016 2015 Diluted net income (loss) attributed to Cott Corporation (numerator) $ 7.4 $ 2.2 $ 4.1 $ (3.8 ) For the Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in thousands) 2016 2015 2016 2015 Weighted average number of shares outstanding - basic 123,239 99,573 118,253 96,384 Dilutive effect of Stock Options 548 176 424 — Dilutive effect of Time-based RSUs 393 416 361 — Adjusted weighted average number of shares outstanding - diluted (denominator) 124,180 100,165 119,038 96,384 |
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 For the Six Months Ended July 2, July 4, July 2, July 4, (in thousands) 2016 2015 2016 2015 Stock Options — 685 380 1,886 Performance-based RSUs 1 1,995 1,739 1,995 1,739 Time-based RSUs — — — 856 Convertible Preferred Shares — 18,480 — 18,480 1. Performance-based RSUs represent the number of shares expected to be issued based primarily on the estimated achievement of cumulative pre-tax income targets for these awards. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Operating Segment | Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Corporate Eliminations Total For the Three Months Ended July 2, 2016 Revenue, net 1 $ 275.7 $ 349.2 $ 132.3 $ 14.8 $ — $ (7.0 ) $ 765.0 Depreciation and amortization 29.3 18.6 5.4 0.2 — — 53.5 Operating income (loss) 17.8 18.4 11.7 3.4 (14.7 ) — 36.6 Additions to property, plant and equipment 22.7 6.6 3.8 0.1 — — 33.2 For the Six Months Ended July 2, 2016 Revenue, net 1 $ 533.0 $ 662.5 $ 252.9 $ 28.4 $ — $ (13.4 ) $ 1,463.4 Depreciation and amortization 57.7 36.9 10.9 0.5 — — 106.0 Operating income (loss) 23.5 19.0 21.6 5.9 (18.7 ) — 51.3 Additions to property, plant and equipment 40.5 16.0 5.8 0.4 — — 62.7 As of July 2, 2016 Total assets 2 1,606.2 1,610.0 369.0 29.8 — — 3,615.0 1. Intersegment revenue between Cott North America and the other reporting segments was $7.0 million and $13.4 million for the three and six months ended July 2, 2016, respectively. 2. Excludes intersegment receivables, investments and notes receivable. Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Corporate Eliminations Total For the Three Months Ended July 4, 2015 Revenue, net 1 $ 257.0 $ 359.0 $ 153.8 $ 16.4 $ — $ (6.4 ) $ 779.8 Depreciation and amortization 31.8 20.6 5.4 0.4 — — 58.2 Operating income (loss) 13.2 18.3 14.6 3.7 (3.7 ) — 46.1 Additions to property, plant and equipment 20.4 4.5 4.5 0.5 — — 29.9 For the Six Months Ended July 4, 2015 Revenue, net 1 $ 497.3 $ 687.7 $ 286.0 $ 29.4 $ — $ (10.8 ) $ 1,489.6 Depreciation and amortization 62.0 41.9 10.9 0.8 — — 115.6 Operating income (loss) 11.7 25.5 18.5 5.3 (8.2 ) — 52.8 Additions to property, plant and equipment 38.8 11.7 6.2 0.5 — — 57.2 As of January 2, 2016 Total assets 2 1,513.1 943.1 402.5 28.6 — — 2,887.3 1. Intersegment revenue between Cott North America and the other reporting segments was $6.4 million and $10.8 million for the three and six months ended July 4, 2015, respectively. 2. Excludes intersegment receivables, investments and notes receivable. |
Revenues by Channel Reporting Segment | Revenues by channel by reporting segment were as follows: For the Three Months Ended July 2, 2016 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 20.7 $ 280.9 $ 55.0 $ 1.1 $ (0.3 ) $ 357.4 Branded retail 22.9 24.8 41.7 1.0 (0.4 ) 90.0 Contract packaging — 35.7 31.0 5.0 (2.5 ) 69.2 Home and office bottled water delivery 177.2 — — — — 177.2 Office coffee services 30.0 — — — — 30.0 Concentrate and other 24.9 7.8 4.6 7.7 (3.8 ) 41.2 Total $ 275.7 $ 349.2 $ 132.3 $ 14.8 $ (7.0 ) $ 765.0 For the Six Months Ended July 2, 2016 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 37.6 $ 529.4 $ 106.0 $ 1.6 $ (0.7 ) $ 673.9 Branded retail 47.2 51.6 78.3 1.8 (0.7 ) 178.2 Contract packaging — 67.1 59.3 9.7 (4.6 ) 131.5 Home and office bottled water delivery 339.2 — — — — 339.2 Office coffee services 61.5 — — — — 61.5 Concentrate and other 47.5 14.4 9.3 15.3 (7.4 ) 79.1 Total $ 533.0 $ 662.5 $ 252.9 $ 28.4 $ (13.4 ) $ 1,463.4 For the Three Months Ended July 4, 2015 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 17.2 $ 289.7 $ 71.8 $ 1.7 $ (0.7 ) $ 379.7 Branded retail 20.6 30.8 48.5 1.3 (0.5 ) 100.7 Contract packaging — 31.3 30.9 6.8 (1.6 ) 67.4 Home and office bottled water delivery 164.8 — — — — 164.8 Office coffee services 29.7 — — — — 29.7 Concentrate and other 24.7 7.2 2.6 6.6 (3.6 ) 37.5 Total $ 257.0 $ 359.0 $ 153.8 $ 16.4 $ (6.4 ) $ 779.8 For the Six Months Ended July 4, 2015 Cott North Cott All (in millions of U.S. dollars) DSS America U.K. Other Eliminations Total Revenue, net Private label retail $ 32.7 $ 557.4 $ 132.7 $ 2.8 $ (1.2 ) $ 724.4 Branded retail 40.3 57.9 89.3 2.4 (0.9 ) 189.0 Contract packaging — 56.9 59.3 10.7 (1.6 ) 125.3 Home and office bottled water delivery 314.4 — — — — 314.4 Office coffee services 61.7 — — — — 61.7 Concentrate and other 48.2 15.5 4.7 13.5 (7.1 ) 74.8 Total $ 497.3 $ 687.7 $ 286.0 $ 29.4 $ (10.8 ) $ 1,489.6 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes inventories as of July 2, 2016 and January 2, 2016: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Raw materials $ 93.8 $ 95.3 Finished goods 119.6 118.4 Resale items 13.1 15.8 Other 20.6 19.9 Total $ 247.1 $ 249.4 |
Intangibles and Other Assets (T
Intangibles and Other Assets (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangibles and Other Assets | The following table summarizes intangibles and other assets as of July 2, 2016 and January 2, 2016: July 2, 2016 January 2, 2016 Accumulated Accumulated (in millions of U.S. dollars) Cost Amortization Net Cost Amortization Net Intangibles Not subject to amortization Rights 1 $ 45.0 $ — $ 45.0 $ 45.0 $ — $ 45.0 Trademarks 190.2 — 190.2 183.1 — 183.1 Total intangibles not subject to amortization 235.2 — 235.2 228.1 — 228.1 Subject to amortization Customer relationships 665.6 269.3 396.3 663.9 241.0 422.9 Trademarks 32.3 27.9 4.4 33.0 28.1 4.9 Information technology 58.1 33.5 24.6 54.0 29.1 24.9 Other 7.5 4.8 2.7 7.8 4.5 3.3 Total intangibles subject to amortization 763.5 335.5 428.0 758.7 302.7 456.0 Total Intangibles 998.7 335.5 663.2 986.8 302.7 684.1 Other Assets Financing costs 12.6 9.0 3.6 12.6 8.5 4.1 Deposits 11.5 0.4 11.1 10.3 0.4 9.9 Other 14.4 1.9 12.5 15.2 1.6 13.6 Total Other Assets 38.5 11.3 27.2 38.1 10.5 27.6 Total Intangibles & Other Assets $ 1,037.2 $ 346.8 $ 690.4 $ 1,024.9 $ 313.2 $ 711.7 1. Relates to the 2001 acquisition of intellectual property from Royal Crown Company, Inc., including the right to manufacture our 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. |
Estimated Amortization Expense for Intangible Assets | The estimated amortization expense for intangibles over the next five years is: (in millions of U.S. dollars) Remainder of 2016 $ 35.5 2017 64.0 2018 56.9 2019 48.0 2020 41.7 Thereafter 181.9 Total $ 428.0 |
Accounts Payable and Accrued 31
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table summarizes accounts payable and accrued liabilities as of July 2, 2016 and January 2, 2016: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Trade payables $ 271.5 $ 227.2 Accrued compensation 37.3 49.8 Accrued sales incentives 25.7 25.2 Accrued interest 12.2 12.2 Payroll, salaries and other taxes 18.9 13.3 Accrued deposits 31.9 28.6 Other accrued liabilities 70.5 81.3 Total $ 468.0 $ 437.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Debt Disclosure [Abstract] | |
Components of Debt | Our total debt as of July 2, 2016 and January 2, 2016 was as follows: July 2, 2016 January 2, 2016 Unamortized Unamortized Debt Debt (in millions of U.S. dollars) Principal Costs Net Principal Costs Net 6.750% senior notes due in 2020 $ 625.0 $ 10.7 $ 614.3 $ 625.0 $ 12.0 $ 613.0 10.000% senior notes due in 2021 1 387.2 — 387.2 390.1 — 390.1 5.375% senior notes due in 2022 525.0 7.7 517.3 525.0 8.2 516.8 5.500% senior notes due in 2024 500.2 9.8 490.4 — — — ABL facility — — — 122.0 — 122.0 GE Term Loan 5.5 0.2 5.3 6.4 0.4 6.0 Capital leases and other debt financing 2.4 — 2.4 2.9 — 2.9 Total debt 2,045.3 28.4 2,016.9 1,671.4 20.6 1,650.8 Less: Short-term borrowings and current debt: ABL facility — — — 122.0 — 122.0 Total short-term borrowings — — — 122.0 — 122.0 GE Term Loan - current maturities 2.6 — 2.6 2.2 — 2.2 Capital leases and other debt financing - current maturities 1.0 — 1.0 1.2 — 1.2 Total current debt 3.6 — 3.6 125.4 — 125.4 Total long-term debt $ 2,041.7 $ 28.4 $ 2,013.3 $ 1,546.0 $ 20.6 $ 1,525.4 1. The outstanding aggregate principal amount of $350.0 million of our 10.000% senior secured notes (“DSS Notes”) was assumed by Cott at a fair value of $406.0 million in connection with Cott’s acquisition of DSS. The premium of $56.0 million is being amortized as an adjustment to interest expense using the effective interest method over the remaining contractual term of the DSS Notes. The remaining unamortized premium is $37.2 million and $40.1 million at July 2, 2016 and January 2, 2016, respectively. |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income by Component | Changes in accumulated other comprehensive (loss) income (“AOCI”) by component for the six months ended July 2, 2016 were as follows: July 2, 2016 Gains and Losses Pension Currency on Derivative Benefit Translation (in millions of U.S. dollars) 1 Instruments Plan Items Adjustment Items Total Beginning balance January 2, 2016 $ (4.7 ) $ (10.1 ) $ (61.4 ) $ (76.2 ) OCI before reclassifications 5.8 — (17.9 ) (12.1 ) Amounts reclassified from AOCI (2.7 ) 0.2 — (2.5 ) Net current-period OCI 3.1 0.2 (17.9 ) (14.6 ) Ending balance July 2, 2016 $ (1.6 ) $ (9.9 ) $ (79.3 ) $ (90.8 ) 1. All amounts are net of tax. |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The following table summarizes the amounts reclassified from AOCI for the three and six months ended July 2, 2016 and July 4, 2015, respectively. (in millions of U.S. dollars) For the Three Months Ended For the Six Months Ended Affected Line Item in Details About AOCI Components 1 July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 the Statement Where Gains and losses on derivative instruments Foreign currency and commodity hedges $ 2.4 $ (0.1 ) $ 4.0 $ 0.2 Cost of sales (0.7 ) 0.1 (1.3 ) — Tax (expense) benefit $ 1.7 $ — $ 2.7 $ 0.2 Net of tax Amortization of pension benefit plan items Prior service costs 2 $ (0.1 ) $ (0.4 ) $ (0.2 ) $ (0.5 ) Cost of sales (0.1 ) (0.4 ) (0.2 ) (0.5 ) Total before taxes — — — — Tax (expense) benefit $ (0.1 ) $ (0.4 ) $ (0.2 ) $ (0.5 ) Net of tax Total reclassifications for the period $ 1.6 $ (0.4 ) $ 2.5 $ (0.3 ) Net of tax 1. Amounts in parentheses indicate debits. 2. These AOCI components are included in the computation of net periodic pension cost. |
Hedging Transactions and Deri34
Hedging Transactions and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
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) July 2, 2016 January 2, 2016 Derivative Contract Assets Liabilities Assets Liabilities Foreign currency hedge $ — $ 1.3 $ 0.6 $ — Aluminum swaps 0.1 1.6 — 8.0 $ 0.1 $ 2.9 $ 0.6 $ 8.0 |
Summary of Fair Value of Aluminum Swap Assets and Liabilities | The fair value of the aluminum swap assets and liabilities which are shown on a net basis are reconciled in the table below: (in millions of U.S. dollars) July 2, 2016 January 2, 2016 Aluminum swap assets $ 0.1 $ — Aluminum swap liabilities (1.6 ) (8.0 ) Net asset (liability) $ (1.5 ) $ (8.0 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Values of Outstanding Debt | 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 July 2, 2016 and January 2, 2016 were as follows: July 2, 2016 January 2, 2016 Carrying Fair Carrying Fair (in millions of U.S. dollars) Value Value Value Value 6.750% senior notes due in 2020 1, 3 614.3 654.7 613.0 641.4 10.000% senior notes due in 2021 1, 2 387.2 392.9 390.1 397.3 5.375% senior notes due in 2022 1, 3 517.3 525.0 516.8 522.4 5.500% senior notes due in 2024 1, 3 490.4 513.4 — — Total $ 2,009.2 $ 2,086.0 $ 1,519.9 $ 1,561.1 1. The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 1 financial instruments. 2. The outstanding aggregate principal amount of $350.0 million of our DSS Notes was assumed by Cott at a fair value of $406.0 million in connection with Cott’s acquisition of DSS. The premium of $56.0 million is being amortized as an adjustment to interest expense using the effective interest method over the remaining contractual term of the DSS Notes. The remaining unamortized premium is $37.2 million and $40.1 million at July 2, 2016 and January 2, 2016, respectively. 3. The carrying value of our significant outstanding debt is net of unamortized debt issuance costs of $28.4 million and $20.6 million as of July 2, 2016 and January 2, 2016, respectively. |
Schedule of Business Acquisitions, Reconciliation of Fair Value of Contingent Consideration | The following tables provide a reconciliation of the beginning and ending balances of this liability. For the Three Months Ended For the Six Months Ended July 2, July 4, July 2, July 4, (in millions of U.S. dollars) 2016 2015 2016 2015 Fair value at beginning of period $ 15.9 $ 15.8 $ 16.4 $ 16.5 Fair value adjustment 1.2 0.6 1.2 0.6 Foreign exchange (gain) loss (1.2 ) 0.8 (1.7 ) 0.1 Transfers out (15.9 ) — (15.9 ) — Fair value at end of period $ — $ 17.2 $ — $ 17.2 |
Guarantor Subsidiaries (Tables)
Guarantor Subsidiaries (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
DSS Group Inc [Member] | |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 48.2 $ 259.0 $ 437.3 $ 35.2 $ (14.7 ) $ 765.0 Cost of sales 38.9 98.9 360.6 28.7 (14.7 ) 512.4 Gross profit 9.3 160.1 76.7 6.5 — 252.6 Selling, general and administrative expenses 16.8 141.2 41.1 3.0 — 202.1 Loss on disposal of property, plant & equipment, net — 1.4 0.8 — — 2.2 Acquisition and integration expenses — 1.1 10.6 — — 11.7 Operating (loss) income (7.5 ) 16.4 24.2 3.5 — 36.6 Other expense (income), net 1.8 (0.3 ) 1.4 0.1 — 3.0 Intercompany interest expense (income), net — 10.8 (10.8 ) — — — Interest expense, net 0.2 7.2 19.6 — — 27.0 (Loss) income before income tax benefit and equity income (9.5 ) (1.3 ) 14.0 3.4 — 6.6 Income tax benefit — 0.4 1.9 — — 2.3 Equity income 16.9 — 1.5 — (18.4 ) — Net income (loss) $ 7.4 $ (0.9 ) $ 17.4 $ 3.4 $ (18.4 ) $ 8.9 Less: Net income attributable to non-controlling interests — — — 1.5 — 1.5 Net income (loss) attributed to Cott Corporation $ 7.4 $ (0.9 ) $ 17.4 $ 1.9 $ (18.4 ) $ 7.4 Comprehensive (loss) income attributed to Cott Corporation $ (4.6 ) $ (0.9 ) $ 75.4 $ 4.0 $ (78.5 ) $ (4.6 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 82.0 $ 502.1 $ 844.1 $ 63.7 $ (28.5 ) $ 1,463.4 Cost of sales 68.6 196.3 708.8 51.6 (28.5 ) 996.8 Gross profit 13.4 305.8 135.3 12.1 — 466.6 Selling, general and administrative expenses 22.3 278.4 92.7 5.7 — 399.1 Loss (gain) on disposal of property, plant & equipment, net — 3.2 (0.1 ) — — 3.1 Acquisition and integration expenses — 2.0 11.1 — — 13.1 Operating (loss) income (8.9 ) 22.2 31.6 6.4 — 51.3 Other expense (income), net 0.2 (1.3 ) 1.8 0.1 — 0.8 Intercompany interest expense (income), net — 21.6 (21.6 ) — — — Interest expense, net 0.4 14.6 39.8 — — 54.8 (Loss) income before income tax (benefit) expense and equity income (9.5 ) (12.7 ) 11.6 6.3 — (4.3 ) Income tax (benefit) expense — (4.6 ) (6.8 ) 0.1 — (11.3 ) Equity income 13.6 — 3.3 — (16.9 ) — Net income (loss) $ 4.1 $ (8.1 ) $ 21.7 $ 6.2 $ (16.9 ) $ 7.0 Less: Net income attributable to non-controlling interests — — — 2.9 — 2.9 Net income (loss) attributed to Cott Corporation $ 4.1 $ (8.1 ) $ 21.7 $ 3.3 $ (16.9 ) $ 4.1 Comprehensive (loss) income attributed to Cott Corporation $ (10.5 ) $ (8.1 ) $ 106.2 $ 3.4 $ (101.5 ) $ (10.5 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 46.9 $ 257.0 $ 457.5 $ 38.3 $ (19.9 ) $ 779.8 Cost of sales 38.4 100.8 389.0 30.9 (19.9 ) 539.2 Gross profit 8.5 156.2 68.5 7.4 — 240.6 Selling, general and administrative expenses 4.9 139.1 43.2 3.0 — 190.2 Loss (gain) on disposal of property, plant & equipment — 0.9 (0.7 ) — — 0.2 Acquisition and integration expenses — 3.1 1.0 — — 4.1 Operating income 3.6 13.1 25.0 4.4 — 46.1 Other expense (income), net 0.7 (0.2 ) 0.6 (0.1 ) — 1.0 Intercompany interest (income) expense, net (1.9 ) 11.0 (9.1 ) — — — Interest expense, net — 7.5 20.4 — — 27.9 Income (loss) before income tax expense (benefit) and equity income 4.8 (5.2 ) 13.1 4.5 — 17.2 Income tax expense (benefit) 1.8 (1.8 ) (1.2 ) 0.1 — (1.1 ) Equity income 13.6 — 1.6 — (15.2 ) — Net income (loss) $ 16.6 $ (3.4 ) $ 15.9 $ 4.4 $ (15.2 ) $ 18.3 Less: Net income attributable to non-controlling interests — — — 1.7 — 1.7 Less: Accumulated dividends on convertible preferred shares 1.8 — — — — 1.8 Less: Accumulated dividends on non-convertible preferred shares 0.6 — — — — 0.6 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net income (loss) attributed to Cott Corporation $ 2.2 $ (3.4 ) $ 15.9 $ 2.7 $ (15.2 ) $ 2.2 Comprehensive income (loss) attributed to Cott Corporation $ 24.4 $ (3.4 ) $ 59.3 $ 4.2 $ (60.1 ) $ 24.4 Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 76.9 $ 497.3 $ 875.8 $ 69.7 $ (30.1 ) $ 1,489.6 Cost of sales 65.4 201.2 754.4 56.8 (30.1 ) 1,047.7 Gross profit 11.5 296.1 121.4 12.9 — 441.9 Selling, general and administrative expenses 10.4 276.3 85.9 6.1 — 378.7 Loss (gain) on disposal of property, plant & equipment — 2.0 (0.4 ) — — 1.6 Acquisition and integration expenses — 6.1 2.7 — — 8.8 Operating income 1.1 11.7 33.2 6.8 — 52.8 Other (income) expense, net (9.8 ) (0.4 ) 0.8 — — (9.4 ) Intercompany interest (income) expense, net (4.9 ) 21.9 (17.0 ) — — — Interest expense, net 0.1 14.8 40.7 — — 55.6 Income (loss) before income tax expense (benefit) and equity income 15.7 (24.6 ) 8.7 6.8 — 6.6 Income tax expense (benefit) 3.0 (9.0 ) (4.7 ) 0.2 — (10.5 ) Equity income 1.4 — 3.0 — (4.4 ) — Net income (loss) $ 14.1 $ (15.6 ) $ 16.4 $ 6.6 $ (4.4 ) $ 17.1 Less: Net income attributable to non-controlling interests — — — 3.0 — 3.0 Less: Accumulated dividends on convertible preferred shares 4.5 — — — — 4.5 Less: Accumulated dividends on non-convertible preferred shares 1.4 — — — — 1.4 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net (loss) income attributed to Cott Corporation $ (3.8 ) $ (15.6 ) $ 16.4 $ 3.6 $ (4.4 ) $ (3.8 ) Comprehensive (loss) income attributed to Cott Corporation $ (7.4 ) $ (15.6 ) $ 43.5 $ 4.8 $ (32.7 ) $ (7.4 ) |
Consolidating Balance Sheet | Consolidating Balance Sheets (in millions of U.S. dollars) Unaudited As of July 2, 2016 DSS DSS Cott DS Services of Guarantor Non-Guarantor Elimination Corporation America, Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Restricted cash — — — 503.1 — 503.1 Accounts receivable, net of allowance 37.1 124.0 226.7 13.2 (61.5 ) 339.5 Income taxes recoverable 0.1 1.1 — 0.4 (0.7 ) 0.9 Inventories 15.1 29.1 196.5 6.4 — 247.1 Prepaid expenses and other assets 1.9 9.5 12.3 0.4 — 24.1 Total current assets 236.8 190.1 468.7 530.8 (62.2 ) 1,364.2 Property, plant & equipment, net 30.3 379.9 353.9 6.1 — 770.2 Goodwill 21.2 580.7 175.5 — — 777.4 Intangibles and other assets, net 0.9 387.7 300.9 0.9 — 690.4 Deferred tax assets 12.6 — 44.7 0.2 (44.7 ) 12.8 Due from affiliates 366.4 — 544.4 — (910.8 ) — Investments in subsidiaries 392.0 — 400.1 — (792.1 ) — Total assets $ 1,060.2 $ 1,538.4 $ 2,288.2 $ 538.0 $ (1,809.8 ) $ 3,615.0 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ — $ 3.4 $ 0.2 $ — $ 3.6 Accounts payable and accrued liabilities 70.8 158.9 277.0 23.5 (62.2 ) 468.0 Total current liabilities 70.8 158.9 280.4 23.7 (62.2 ) 471.6 Long-term debt — 387.2 1,135.7 490.4 — 2,013.3 Deferred tax liabilities — 92.8 15.6 — (44.7 ) 63.7 Other long-term liabilities 0.5 37.2 33.6 1.2 — 72.5 Due to affiliates 1.2 543.3 340.0 26.3 (910.8 ) — Total liabilities 72.5 1,219.4 1,805.3 541.6 (1,017.7 ) 2,621.1 Equity Common shares, no par 904.9 355.5 802.3 39.8 (1,197.6 ) 904.9 Additional paid-in-capital 54.6 — — — — 54.6 Retained earnings (deficit) 119.0 (36.3 ) (418.2 ) (58.7 ) 513.2 119.0 Accumulated other comprehensive (loss) income (90.8 ) (0.2 ) 98.8 9.1 (107.7 ) (90.8 ) Total Cott Corporation equity 987.7 319.0 482.9 (9.8 ) (792.1 ) 987.7 Non-controlling interests — — — 6.2 — 6.2 Total equity 987.7 319.0 482.9 (3.6 ) (792.1 ) 993.9 Total liabilities and equity $ 1,060.2 $ 1,538.4 $ 2,288.2 $ 538.0 $ (1,809.8 ) $ 3,615.0 Consolidating Balance Sheets (in millions of U.S. dollars) As of January 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated ASSETS Current assets Cash & cash equivalents $ 20.8 $ 12.8 $ 38.4 $ 5.1 $ — $ 77.1 Accounts receivable, net of allowance 18.3 122.6 184.6 13.0 (45.2 ) 293.3 Income taxes recoverable — 0.5 0.9 0.2 — 1.6 Inventories 13.0 31.4 199.4 5.6 — 249.4 Prepaid expenses and other assets 2.2 4.8 10.0 0.2 — 17.2 Total current assets 54.3 172.1 433.3 24.1 (45.2 ) 638.6 Property, plant & equipment, net 29.7 372.6 360.8 6.7 — 769.8 Goodwill 19.8 579.1 160.7 — — 759.6 Intangibles and other assets, net 0.8 402.5 305.6 2.8 — 711.7 Deferred tax assets 7.4 — 38.2 0.2 (38.2 ) 7.6 Due from affiliates 400.1 — 544.3 — (944.4 ) — Investments in subsidiaries 176.3 — 400.0 — (576.3 ) — Total assets $ 688.4 $ 1,526.3 $ 2,242.9 $ 33.8 $ (1,604.1 ) $ 2,887.3 LIABILITIES AND EQUITY Current liabilities Short-term borrowings $ — $ — $ 122.0 $ — $ — $ 122.0 Current maturities of long-term debt — — 3.0 0.4 — 3.4 Accounts payable and accrued liabilities 47.6 131.8 295.1 8.3 (45.2 ) 437.6 Total current liabilities 47.6 131.8 420.1 8.7 (45.2 ) 563.0 Long-term debt — 390.1 1,135.3 — — 1,525.4 Deferred tax liabilities — 97.7 17.0 — (38.2 ) 76.5 Other long-term liabilities 0.5 36.2 38.7 1.1 — 76.5 Due to affiliates 1.0 543.3 371.9 28.2 (944.4 ) — Total liabilities 49.1 1,199.1 1,983.0 38.0 (1,027.8 ) 2,241.4 Equity Common shares, no par 534.7 355.5 683.1 38.6 (1,077.2 ) 534.7 Additional paid-in-capital 51.2 — — — — 51.2 Retained earnings (deficit) 129.6 (28.1 ) (437.5 ) (58.4 ) 524.0 129.6 Accumulated other comprehensive (loss) income (76.2 ) (0.2 ) 14.3 9.0 (23.1 ) (76.2 ) Total Cott Corporation equity 639.3 327.2 259.9 (10.8 ) (576.3 ) 639.3 Non-controlling interests — — — 6.6 — 6.6 Total equity 639.3 327.2 259.9 (4.2 ) (576.3 ) 645.9 Total liabilities and equity $ 688.4 $ 1,526.3 $ 2,242.9 $ 33.8 $ (1,604.1 ) $ 2,887.3 |
Condensed Consolidating Statement of Cash Flows | Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (0.3 ) $ 29.6 $ 67.2 $ 5.2 $ (14.1 ) $ 87.6 Investing Activities Acquisitions, net of cash received 0.5 (2.3 ) — — — (1.8 ) Additions to property, plant & equipment (0.5 ) (20.8 ) (11.6 ) (0.3 ) — (33.2 ) Additions to intangibles and other assets — (0.6 ) (0.4 ) — — (1.0 ) Proceeds from sale of property, plant & equipment — — 0.2 — — 0.2 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (2.8 ) (23.7 ) (11.8 ) (0.3 ) — (38.6 ) Financing Activities Payments of long-term debt — — (0.3 ) (0.1 ) — (0.4 ) Borrowings under ABL 57.2 — 66.7 — — 123.9 Payments under ABL (88.9 ) — (98.8 ) — — (187.7 ) Distributions to non-controlling interests — — — (1.0 ) — (1.0 ) Issuance of common shares 220.1 — — — — 220.1 Dividends paid to common shareowners (7.4 ) — — — — (7.4 ) Intercompany dividends — — (13.0 ) (1.1 ) 14.1 — Net cash provided by (used in) financing activities 181.0 — (45.4 ) (2.2 ) 14.1 147.5 Effect of exchange rate changes on cash (0.2 ) — (1.8 ) (0.1 ) — (2.1 ) Net increase in cash & cash equivalents 177.7 5.9 8.2 2.6 — 194.4 Cash & cash equivalents, beginning of period 4.9 20.5 25.0 4.7 — 55.1 Cash & cash equivalents, end of period $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (137.1 ) $ 55.7 $ 156.9 $ 9.9 $ (16.5 ) $ 68.9 Investing Activities Acquisitions, net of cash received (42.7 ) (3.5 ) — — — (46.2 ) Additions to property, plant & equipment (0.9 ) (37.6 ) (23.6 ) (0.6 ) — (62.7 ) Additions to intangibles and other assets (0.1 ) (1.1 ) (2.1 ) — — (3.3 ) Proceeds from sale of property, plant & equipment — 0.1 2.8 — — 2.9 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (46.5 ) (42.1 ) (22.9 ) (0.6 ) — (112.1 ) Financing Activities Payments of long-term debt — — (1.3 ) (0.2 ) — (1.5 ) Borrowings under ABL 144.8 — 476.3 — — 621.1 Payments under ABL (147.7 ) — (598.3 ) — — (746.0 ) Distributions to non-controlling interests — — — (3.3 ) — (3.3 ) Issuance of common shares 364.2 — — — — 364.2 Common shares repurchased and cancelled (1.1 ) — — — — (1.1 ) Dividends paid to common shareowners (14.7 ) — — — — (14.7 ) Intercompany dividends — — (13.0 ) (3.5 ) 16.5 — Net cash provided by (used in) financing activities 345.5 — (136.3 ) (7.0 ) 16.5 218.7 Effect of exchange rate changes on cash (0.1 ) — (2.9 ) (0.1 ) — (3.1 ) Net increase (decrease) in cash & cash equivalents 161.8 13.6 (5.2 ) 2.2 — 172.4 Cash & cash equivalents, beginning of period 20.8 12.8 38.4 5.1 — 77.1 Cash & cash equivalents, end of period $ 182.6 $ 26.4 $ 33.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 29.3 $ 20.6 $ 24.5 $ 13.5 $ (12.2 ) $ 75.7 Investing Activities Acquisition, net of cash received — (0.5 ) — — — (0.5 ) Additions to property, plant & equipment (0.2 ) (20.4 ) (8.9 ) (0.4 ) — (29.9 ) Additions to intangibles and other assets — (0.1 ) — — — (0.1 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 14.2 25.9 — — 40.1 Net cash (used in) provided by investing activities (0.2 ) (6.8 ) 17.0 (0.4 ) — 9.6 Financing Activities Payments of long-term debt — — (0.9 ) (0.2 ) — (1.1 ) Borrowings under ABL — — 654.1 — — 654.1 Payments under ABL — — (674.4 ) — — (674.4 ) Distributions to non-controlling interests — — — (1.6 ) — (1.6 ) Issuance of common shares 142.5 — — — — 142.5 Financing fees — — (0.2 ) — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Dividends paid to common and preferred shareowners (9.0 ) — — — — (9.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — — (2.2 ) (10.0 ) 12.2 — Net cash used in financing activities (15.3 ) — (26.1 ) (11.8 ) 12.2 (41.0 ) Effect of exchange rate changes on cash (0.3 ) — 0.6 (0.1 ) — 0.2 Net increase in cash & cash equivalents 13.5 13.8 16.0 1.2 — 44.5 Cash & cash equivalents, beginning of period 0.3 14.8 14.8 4.6 — 34.5 Cash & cash equivalents, end of period $ 13.8 $ 28.6 $ 30.8 $ 5.8 $ — $ 79.0 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 Cott DS Services of DSS DSS Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 33.7 $ 21.2 $ 20.9 $ 15.2 $ (16.4 ) $ 74.6 Investing Activities Acquisition, net of cash received — (0.5 ) — — — (0.5 ) Additions to property, plant & equipment (0.5 ) (38.8 ) (17.5 ) (0.4 ) — (57.2 ) Additions to intangibles and other assets — (1.9 ) (0.3 ) — — (2.2 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 14.2 26.3 — — 40.5 Net cash (used in) provided by investing activities (0.5 ) (27.0 ) 8.5 (0.4 ) — (19.4 ) Financing Activities Payments of long-term debt — — (1.4 ) (0.5 ) — (1.9 ) Borrowings under ABL — — 748.9 — — 748.9 Payments under ABL — — (777.2 ) — — (777.2 ) Distributions to non-controlling interests — — — (3.6 ) — (3.6 ) Issuance of common shares 142.6 — — — — 142.6 Financing fees — — (0.2 ) — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Common shares repurchased and cancelled (0.7 ) — — — — (0.7 ) Dividends paid to common and preferred shareowners (18.0 ) — — — — (18.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — — (4.3 ) (12.1 ) 16.4 — Net cash used in financing activities (24.9 ) — (36.7 ) (16.2 ) 16.4 (61.4 ) Effect of exchange rate changes on cash (0.7 ) — (0.1 ) (0.2 ) — (1.0 ) Net increase (decrease) in cash & cash equivalents 7.6 (5.8 ) (7.4 ) (1.6 ) — (7.2 ) Cash & cash equivalents, beginning of period 6.2 34.4 38.2 7.4 — 86.2 Cash & cash equivalents, end of period $ 13.8 $ 28.6 $ 30.8 $ 5.8 $ — $ 79.0 |
Cott Beverages Inc. [Member] | |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Consolidated Revenue, net $ 48.2 $ 191.3 $ 505.0 $ 35.2 $ (14.7 ) $ 765.0 Cost of sales 38.9 158.3 301.2 28.7 (14.7 ) 512.4 Gross profit 9.3 33.0 203.8 6.5 — 252.6 Selling, general and administrative expenses 16.8 15.8 166.5 3.0 — 202.1 Loss on disposal of property, plant & equipment, net — 0.2 2.0 — — 2.2 Acquisition and integration expenses — 10.7 1.0 — — 11.7 Operating (loss) income (7.5 ) 6.3 34.3 3.5 — 36.6 Other expense, net 1.8 0.1 1.0 0.1 — 3.0 Intercompany interest (income) expense, net — (11.3 ) 11.3 — — — Interest expense, net 0.2 19.5 7.3 — — 27.0 (Loss) income before income tax benefit and equity income (9.5 ) (2.0 ) 14.7 3.4 — 6.6 Income tax benefit — 1.6 0.7 — — 2.3 Equity income 16.9 1.5 — — (18.4 ) — Net income $ 7.4 $ 1.1 $ 15.4 $ 3.4 $ (18.4 ) $ 8.9 Less: Net income attributable to non-controlling interests — — — 1.5 — 1.5 Net income attributed to Cott Corporation $ 7.4 $ 1.1 $ 15.4 $ 1.9 $ (18.4 ) $ 7.4 Comprehensive (loss) income attributed to Cott Corporation $ (4.6 ) $ (0.1 ) $ 74.6 $ 4.0 $ (78.5 ) $ (4.6 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 82.0 $ 360.2 $ 986.0 $ 63.7 $ (28.5 ) $ 1,463.4 Cost of sales 68.6 304.3 600.8 51.6 (28.5 ) 996.8 Gross profit 13.4 55.9 385.2 12.1 — 466.6 Selling, general and administrative expenses 22.3 43.9 327.2 5.7 — 399.1 Loss on disposal of property, plant & equipment, net — 0.5 2.6 — — 3.1 Acquisition and integration expenses — 11.0 2.1 — — 13.1 Operating (loss) income (8.9 ) 0.5 53.3 6.4 — 51.3 Other expense, net 0.2 — 0.5 0.1 — 0.8 Intercompany interest (income) expense, net — (22.7 ) 22.7 — — — Interest expense, net 0.4 39.6 14.8 — — 54.8 (Loss) income before income tax (benefit) expense and equity income (9.5 ) (16.4 ) 15.3 6.3 — (4.3 ) Income tax (benefit) expense — (7.2 ) (4.2 ) 0.1 — (11.3 ) Equity income 13.6 3.0 0.3 — (16.9 ) — Net income (loss) $ 4.1 $ (6.2 ) $ 19.8 $ 6.2 $ (16.9 ) $ 7.0 Less: Net income attributable to non-controlling interests — — — 2.9 — 2.9 Net income (loss) attributed to Cott Corporation $ 4.1 $ (6.2 ) $ 19.8 $ 3.3 $ (16.9 ) $ 4.1 Comprehensive (loss) income attributed to Cott Corporation $ (10.5 ) $ (7.5 ) $ 105.6 $ 3.4 $ (101.5 ) $ (10.5 ) Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 46.9 $ 197.1 $ 517.4 $ 38.3 $ (19.9 ) $ 779.8 Cost of sales 38.4 164.9 324.9 30.9 (19.9 ) 539.2 Gross profit 8.5 32.2 192.5 7.4 — 240.6 Selling, general and administrative expenses 4.9 24.6 157.7 3.0 — 190.2 (Gain) loss on disposal of property, plant & equipment — (0.7 ) 0.9 — — 0.2 Acquisition and integration expenses — 0.5 3.6 — — 4.1 Operating income 3.6 7.8 30.3 4.4 — 46.1 Other expense (income), net 0.7 — 0.4 (0.1 ) — 1.0 Intercompany interest (income) expense, net (1.9 ) (13.3 ) 15.2 — — — Interest expense, net — 20.2 7.7 — — 27.9 Income before income tax expense (benefit) and equity income 4.8 0.9 7.0 4.5 — 17.2 Income tax expense (benefit) 1.8 (1.9 ) (1.1 ) 0.1 — (1.1 ) Equity income 13.6 1.6 — — (15.2 ) — Net income $ 16.6 $ 4.4 $ 8.1 $ 4.4 $ (15.2 ) $ 18.3 Less: Net income attributable to non-controlling interests — — — 1.7 — 1.7 Less: Accumulated dividends on convertible preferred shares 1.8 — — — — 1.8 Less: Accumulated dividends on non-convertible preferred shares 0.6 — — — — 0.6 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net income attributed to Cott Corporation $ 2.2 $ 4.4 $ 8.1 $ 2.7 $ (15.2 ) $ 2.2 Comprehensive income attributed to Cott Corporation $ 24.4 $ 26.5 $ 21.4 $ 4.2 $ (52.1 ) $ 24.4 Condensed Consolidating Statements of Operations (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated Revenue, net $ 76.9 $ 367.1 $ 1,006.0 $ 69.7 $ (30.1 ) $ 1,489.6 Cost of sales 65.4 310.7 644.9 56.8 (30.1 ) 1,047.7 Gross profit 11.5 56.4 361.1 12.9 — 441.9 Selling, general and administrative expenses 10.4 48.4 313.8 6.1 — 378.7 (Gain) loss on disposal of property, plant & equipment — (0.4 ) 2.0 — — 1.6 Acquisition and integration expenses — 2.0 6.8 — — 8.8 Operating income 1.1 6.4 38.5 6.8 — 52.8 Other (income) expense, net (9.8 ) — 0.4 — — (9.4 ) Intercompany interest (income) expense, net (4.9 ) (25.5 ) 30.4 — — — Interest expense, net 0.1 40.3 15.2 — — 55.6 Income (loss) before income tax expense (benefit) and equity income 15.7 (8.4 ) (7.5 ) 6.8 — 6.6 Income tax expense (benefit) 3.0 (6.5 ) (7.2 ) 0.2 — (10.5 ) Equity income 1.4 3.0 — — (4.4 ) — Net income (loss) $ 14.1 $ 1.1 $ (0.3 ) $ 6.6 $ (4.4 ) $ 17.1 Less: Net income attributable to non-controlling interests — — — 3.0 — 3.0 Less: Accumulated dividends on convertible preferred shares 4.5 — — — — 4.5 Less: Accumulated dividends on non-convertible preferred shares 1.4 — — — — 1.4 Less: Foreign exchange impact on redemption of preferred shares 12.0 — — — — 12.0 Net (loss) income attributed to Cott Corporation $ (3.8 ) $ 1.1 $ (0.3 ) $ 3.6 $ (4.4 ) $ (3.8 ) Comprehensive (loss) income attributed to Cott Corporation $ (7.4 ) $ 3.7 $ 0.9 $ 4.8 $ (9.4 ) $ (7.4 ) |
Consolidating Balance Sheet | Consolidating Balance Sheets (in millions of U.S. dollars) Unaudited As of July 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 182.6 $ 2.4 $ 57.2 $ 7.3 $ — $ 249.5 Restricted cash — — — 503.1 — 503.1 Accounts receivable, net of allowance 37.1 82.8 385.7 13.2 (179.3 ) 339.5 Income taxes recoverable 0.1 — 1.1 0.4 (0.7 ) 0.9 Inventories 15.1 75.1 150.5 6.4 — 247.1 Prepaid expenses and other assets 1.9 6.7 15.1 0.4 — 24.1 Total current assets 236.8 167.0 609.6 530.8 (180.0 ) 1,364.2 Property, plant & equipment, net 30.3 156.9 576.9 6.1 — 770.2 Goodwill 21.2 4.5 751.7 — — 777.4 Intangibles and other assets, net 0.9 78.6 610.0 0.9 — 690.4 Deferred tax assets 12.6 44.7 — 0.2 (44.7 ) 12.8 Due from affiliates 366.4 583.2 142.7 — (1,092.3 ) — Investments in subsidiaries 392.0 847.3 729.5 — (1,968.8 ) — Total assets $ 1,060.2 $ 1,882.2 $ 3,420.4 $ 538.0 $ (3,285.8 ) $ 3,615.0 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ 3.0 $ 0.4 $ 0.2 $ — $ 3.6 Accounts payable and accrued liabilities 70.8 218.5 335.2 23.5 (180.0 ) 468.0 Total current liabilities 70.8 221.5 335.6 23.7 (180.0 ) 471.6 Long-term debt — 1,134.6 388.3 490.4 — 2,013.3 Deferred tax liabilities — — 108.4 — (44.7 ) 63.7 Other long-term liabilities 0.5 19.9 50.9 1.2 — 72.5 Due to affiliates 1.2 141.6 923.2 26.3 (1,092.3 ) — Total liabilities 72.5 1,517.6 1,806.4 541.6 (1,317.0 ) 2,621.1 Equity Common shares, no par 904.9 728.4 1,606.1 39.8 (2,374.3 ) 904.9 Additional paid-in-capital 54.6 — — — — 54.6 Retained earnings (deficit) 119.0 (345.8 ) (108.7 ) (58.7 ) 513.2 119.0 Accumulated other comprehensive (loss) income (90.8 ) (18.0 ) 116.6 9.1 (107.7 ) (90.8 ) Total Cott Corporation equity 987.7 364.6 1,614.0 (9.8 ) (1,968.8 ) 987.7 Non-controlling interests — — — 6.2 — 6.2 Total equity 987.7 364.6 1,614.0 (3.6 ) (1,968.8 ) 993.9 Total liabilities and equity $ 1,060.2 $ 1,882.2 $ 3,420.4 $ 538.0 $ (3,285.8 ) $ 3,615.0 Consolidating Balance Sheets (in millions of U.S. dollars) As of January 2, 2016 Cott Cott Cott Cott Guarantor Non-Guarantor Elimination Corporation Beverages, Inc. Subsidiaries Subsidiaries Entries Consolidated ASSETS Current assets Cash & cash equivalents $ 20.8 $ 1.0 $ 50.2 $ 5.1 $ — $ 77.1 Accounts receivable, net of allowance 18.3 63.3 361.8 13.0 (163.1 ) 293.3 Income taxes recoverable — 0.6 0.8 0.2 — 1.6 Inventories 13.0 76.7 154.1 5.6 — 249.4 Prepaid expenses and other assets 2.2 4.6 10.2 0.2 — 17.2 Total current assets 54.3 146.2 577.1 24.1 (163.1 ) 638.6 Property, plant & equipment, net 29.7 163.3 570.1 6.7 — 769.8 Goodwill 19.8 4.5 735.3 — — 759.6 Intangibles and other assets, net 0.8 79.2 628.9 2.8 — 711.7 Deferred tax assets 7.4 38.2 — 0.2 (38.2 ) 7.6 Due from affiliates 400.1 587.5 2.6 — (990.2 ) — Investments in subsidiaries 176.3 847.3 702.5 — (1,726.1 ) — Total assets $ 688.4 $ 1,866.2 $ 3,216.5 $ 33.8 $ (2,917.6 ) $ 2,887.3 LIABILITIES AND EQUITY Current liabilities Short-term borrowings $ — $ 122.0 $ — $ — $ — $ 122.0 Current maturities of long-term debt — 2.6 0.4 0.4 — 3.4 Accounts payable and accrued liabilities 47.6 234.6 310.2 8.3 (163.1 ) 437.6 Total current liabilities 47.6 359.2 310.6 8.7 (163.1 ) 563.0 Long-term debt — 1,134.1 391.3 — — 1,525.4 Deferred tax liabilities — — 114.7 — (38.2 ) 76.5 Other long-term liabilities 0.5 20.0 54.9 1.1 — 76.5 Due to affiliates 1.0 1.6 959.4 28.2 (990.2 ) — Total liabilities 49.1 1,514.9 1,830.9 38.0 (1,191.5 ) 2,241.4 Equity Common shares, no par 534.7 701.5 1,486.9 38.6 (2,227.0 ) 534.7 Additional paid-in-capital 51.2 — — — — 51.2 Retained earnings (deficit) 129.6 (333.5 ) (132.1 ) (58.4 ) 524.0 129.6 Accumulated other comprehensive (loss) income (76.2 ) (16.7 ) 30.8 9.0 (23.1 ) (76.2 ) Total Cott Corporation equity 639.3 351.3 1,385.6 (10.8 ) (1,726.1 ) 639.3 Non-controlling interests — — — 6.6 — 6.6 Total equity 639.3 351.3 1,385.6 (4.2 ) (1,726.1 ) 645.9 Total liabilities and equity $ 688.4 $ 1,866.2 $ 3,216.5 $ 33.8 $ (2,917.6 ) $ 2,887.3 |
Condensed Consolidating Statement of Cash Flows | Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 2, 2016 Cott Cott Cott Cott Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (0.3 ) $ 46.8 $ 50.0 $ 5.2 $ (14.1 ) $ 87.6 Investing Activities Acquisitions, net of cash received 0.5 — (2.3 ) — — (1.8 ) Additions to property, plant & equipment (0.5 ) (4.3 ) (28.1 ) (0.3 ) — (33.2 ) Additions to intangibles and other assets — (0.4 ) (0.6 ) — — (1.0 ) Proceeds from sale of property, plant & equipment — 0.1 0.1 — — 0.2 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (2.8 ) (4.6 ) (30.9 ) (0.3 ) — (38.6 ) Financing Activities Payments of long-term debt — (0.3 ) — (0.1 ) — (0.4 ) Borrowings under ABL 57.2 66.7 — — — 123.9 Payments under ABL (88.9 ) (98.8 ) — — — (187.7 ) Distributions to non-controlling interests — — — (1.0 ) — (1.0 ) Issuance of common shares 220.1 — — — — 220.1 Dividends paid to common shareowners (7.4 ) — — — — (7.4 ) Intercompany dividends — (8.4 ) (4.6 ) (1.1 ) 14.1 — Net cash provided by (used in) financing activities 181.0 (40.8 ) (4.6 ) (2.2 ) 14.1 147.5 Effect of exchange rate changes on cash (0.2 ) — (1.8 ) (0.1 ) — (2.1 ) Net increase in cash & cash equivalents 177.7 1.4 12.7 2.6 — 194.4 Cash & cash equivalents, beginning of period 4.9 1.0 44.5 4.7 — 55.1 Cash & cash equivalents, end of period $ 182.6 $ 2.4 $ 57.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 2, 2016 Cott Cott Cott Cott Non-Guarantor Elimination Consolidated Net cash (used in) provided by operating activities $ (137.1 ) $ 145.8 $ 66.8 $ 9.9 $ (16.5 ) $ 68.9 Investing Activities Acquisitions, net of cash received (42.7 ) — (3.5 ) — — (46.2 ) Additions to property, plant & equipment (0.9 ) (11.0 ) (50.2 ) (0.6 ) — (62.7 ) Additions to intangibles and other assets (0.1 ) (2.1 ) (1.1 ) — — (3.3 ) Proceeds from sale of property, plant & equipment — 0.1 2.8 — — 2.9 Increase in restricted cash (2.8 ) — — — — (2.8 ) Net cash used in investing activities (46.5 ) (13.0 ) (52.0 ) (0.6 ) — (112.1 ) Financing Activities Payments of long-term debt — (1.0 ) (0.3 ) (0.2 ) — (1.5 ) Borrowings under ABL 144.8 476.3 — — — 621.1 Payments under ABL (147.7 ) (598.3 ) — — — (746.0 ) Distributions to non-controlling interests — — — (3.3 ) — (3.3 ) Issuance of common shares 364.2 — — — — 364.2 Common shares repurchased and cancelled (1.1 ) — — — — (1.1 ) Dividends paid to common shareowners (14.7 ) — — — — (14.7 ) Intercompany dividends — (8.4 ) (4.6 ) (3.5 ) 16.5 — Net cash provided by (used in) financing activities 345.5 (131.4 ) (4.9 ) (7.0 ) 16.5 218.7 Effect of exchange rate changes on cash (0.1 ) — (2.9 ) (0.1 ) — (3.1 ) Net increase in cash & cash equivalents 161.8 1.4 7.0 2.2 — 172.4 Cash & cash equivalents, beginning of period 20.8 1.0 50.2 5.1 — 77.1 Cash & cash equivalents, end of period $ 182.6 $ 2.4 $ 57.2 $ 7.3 $ — $ 249.5 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Three Months Ended July 4, 2015 Cott Cott Cott Cott Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 29.3 $ 9.0 $ 44.5 $ 5.1 $ (12.2 ) $ 75.7 Investing Activities Acquisitions, net of cash received — — (0.5 ) — — (0.5 ) Additions to property, plant & equipment (0.2 ) (4.3 ) (25.0 ) (0.4 ) — (29.9 ) Additions to intangibles and other assets — — (0.1 ) — — (0.1 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 25.9 14.2 — — 40.1 Net cash (used in) provided by investing activities (0.2 ) 21.6 (11.4 ) (0.4 ) — 9.6 Financing Activities Payments of long-term debt — (0.9 ) — (0.2 ) — (1.1 ) Borrowings under ABL — 628.1 26.0 — — 654.1 Payments under ABL — (645.5 ) (28.9 ) — — (674.4 ) Distributions to non-controlling interests — — — (1.6 ) — (1.6 ) Issuance of common shares 142.5 — — — — 142.5 Financing fees — (0.2 ) — — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Dividends paid to common and preferred shareowners (9.0 ) — — — — (9.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — (8.4 ) (2.2 ) (1.6 ) 12.2 — Net cash used in financing activities (15.3 ) (26.9 ) (7.6 ) (3.4 ) 12.2 (41.0 ) Effect of exchange rate changes on cash (0.3 ) — 0.6 (0.1 ) — 0.2 Net increase in cash & cash equivalents 13.5 3.7 26.1 1.2 — 44.5 Cash & cash equivalents, beginning of period 0.3 1.4 28.2 4.6 — 34.5 Cash & cash equivalents, end of period $ 13.8 $ 5.1 $ 54.3 $ 5.8 $ — $ 79.0 Consolidating Statements of Condensed Cash Flows (in millions of U.S. dollars) Unaudited For the Six Months Ended July 4, 2015 Cott Cott Cott Cott Non-Guarantor Elimination Consolidated Net cash provided by operating activities $ 33.7 $ 25.9 $ 24.6 $ 6.8 $ (16.4 ) $ 74.6 Investing Activities Acquisitions, net of cash received — — (0.5 ) — — (0.5 ) Additions to property, plant & equipment (0.5 ) (11.2 ) (45.1 ) (0.4 ) — (57.2 ) Additions to intangibles and other assets — (0.3 ) (1.9 ) — — (2.2 ) Proceeds from sale of property, plant & equipment and sale-leaseback — 26.3 14.2 — — 40.5 Net cash (used in) provided by investing activities (0.5 ) 14.8 (33.3 ) (0.4 ) — (19.4 ) Financing Activities Payments of long-term debt — (1.3 ) (0.1 ) (0.5 ) — (1.9 ) Borrowings under ABL — 714.0 34.9 — — 748.9 Payments under ABL — (748.3 ) (28.9 ) — — (777.2 ) Distributions to non-controlling interests — — — (3.6 ) — (3.6 ) Issuance of common shares 142.6 — — — — 142.6 Financing fees — (0.2 ) — — — (0.2 ) Preferred shares repurchased and cancelled (148.8 ) — — — — (148.8 ) Common shares repurchased and cancelled (0.7 ) — — — — (0.7 ) Dividends paid to common and preferred shareowners (18.0 ) — — — — (18.0 ) Payment of deferred consideration for acquisitions — — (2.5 ) — — (2.5 ) Intercompany dividends — (8.4 ) (4.3 ) (3.7 ) 16.4 — Net cash used in financing activities (24.9 ) (44.2 ) (0.9 ) (7.8 ) 16.4 (61.4 ) Effect of exchange rate changes on cash (0.7 ) — (0.1 ) (0.2 ) — (1.0 ) Net increase (decrease) in cash & cash equivalents 7.6 (3.5 ) (9.7 ) (1.6 ) — (7.2 ) Cash & cash equivalents, beginning of period 6.2 8.6 64.0 7.4 — 86.2 Cash & cash equivalents, end of period $ 13.8 $ 5.1 $ 54.3 $ 5.8 $ — $ 79.0 |
Business and Recent Accountin37
Business and Recent Accounting Pronouncements - Additional Information (Detail) | Jun. 30, 2016 | Jul. 02, 2016USD ($) | Jul. 04, 2015USD ($) | Jul. 02, 2016USD ($)Customer | Jul. 04, 2015USD ($) |
Business And Basis Of Presentation [Line Items] | |||||
Restricted cash | $ 503,100,000 | $ 503,100,000 | |||
DSS Group Inc [Member] | Selling, General and Administrative Expenses [Member] | |||||
Business And Basis Of Presentation [Line Items] | |||||
Shipping and handling costs | $ 78.8 | $ 69.7 | $ 156.6 | $ 134.7 | |
5.500% Senior Notes Due in 2024 [Member] | |||||
Business And Basis Of Presentation [Line Items] | |||||
Interest rate on notes | 5.50% | 5.50% | 5.50% | ||
Debt instrument maturity year | 2,024 | 2,024 | |||
Direct-to-Consumer Products [Member] | Minimum [Member] | |||||
Business And Basis Of Presentation [Line Items] | |||||
Number of customers | Customer | 2,300,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) CAD in Millions | Jan. 04, 2016USD ($) | Jan. 04, 2016CAD | May 31, 2016USD ($) | Jul. 02, 2016USD ($)Business |
Business Acquisition [Line Items] | ||||
Goodwill, expected tax deductible amount | $ 0 | |||
AquaTerra Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of share capital acquired | 100.00% | |||
Aggregate purchase price | $ 44,000,000 | CAD 61.2 | ||
Acquisition Date | Jan. 4, 2016 | Jan. 4, 2016 | ||
Payments made by former owners of Aquaterra | $ 500,000 | |||
Aggregate purchase price | $ 44,000,000 | 44,000,000 | ||
Revenue | 31,000,000 | |||
Net income (loss) | 1,300,000 | |||
Acquisition related costs | $ 400,000 | |||
HOD Water Business Acquisitions [Member] | DSS Group Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquired | Business | 5 | |||
Business acquisitions, aggregate cash purchase price | $ 3,500,000 |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 04, 2016 | Jan. 02, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 777.4 | $ 759.6 | ||
AquaTerra Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 1.3 | |||
Accounts receivable | 6.2 | |||
Inventories | 2.1 | |||
Prepaid expenses and other current assets | 1.3 | |||
Property, plant & equipment | 13.4 | |||
Goodwill | 18.7 | |||
Intangible and other assets | 17.4 | |||
Accounts payable and accrued liabilities | (15.8) | |||
Long-term debt | (0.3) | |||
Other long-term liabilities | (0.3) | |||
Total | $ 44 | $ 44 | ||
Scenario, Previously Reported [Member] | AquaTerra Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1.3 | |||
Accounts receivable | 6.2 | |||
Inventories | 2.1 | |||
Prepaid expenses and other current assets | 1.3 | |||
Property, plant & equipment | 13.4 | |||
Goodwill | 19.2 | |||
Intangible and other assets | 17.4 | |||
Accounts payable and accrued liabilities | (15.8) | |||
Long-term debt | (0.3) | |||
Other long-term liabilities | (0.3) | |||
Total | 44.5 | |||
Scenario, Adjustment [Member] | AquaTerra Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | (0.5) | |||
Total | $ (0.5) |
Acquisitions - Components of Id
Acquisitions - Components of Identified Intangible Assets and Estimated Weighted Average Useful Lives (Detail) - AquaTerra Corporation [Member] - USD ($) $ in Millions | Jan. 04, 2016 | Jul. 02, 2016 |
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 17.4 | |
Income Approach Valuation Technique [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 16.7 | |
Trademarks and Trade Names [Member] | Income Approach Valuation Technique [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 6.7 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 12 years | |
Customer Relationships [Member] | Income Approach Valuation Technique [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 10 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 02, 2016 | Jul. 02, 2016 | Jul. 04, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded, shares | 1,163,868 | ||
Share-based compensation expense | $ 6.2 | $ 6.1 | |
2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded | 62,046 | ||
Share-based compensation expense | $ 0.9 | ||
Performance-Based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded | 383,670 | ||
Performance-Based RSUs [Member] | 2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 11.28 | ||
Performance-Based RSUs [Member] | 2010 Equity Incentive Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance awards granted | 0.00% | ||
Performance-Based RSUs [Member] | 2010 Equity Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance awards granted | 200.00% | ||
Time-Based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded | 201,921 | ||
Time-Based RSUs [Member] | 2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 11.29 | ||
Share Based compensation award vesting period | 3 years | ||
Equity based awards, vesting description | The Time-based RSUs are restricted share units with time-based vesting granted under the Equity Incentive Plan. The Time-based RSUs vest ratably in three equal annual installments on the first, second and third anniversaries of the date of grant and are based upon a service condition. | ||
Stock Options [Member] | 2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based compensation award vesting period | 3 years | ||
Equity based awards, vesting description | The Stock Options are non-qualified stock options granted under the Equity Incentive Plan and will vest ratably in three equal installments on the first, second and third anniversaries of the date of grant | ||
Contractual term | 10 years | ||
Weighted-average grant date fair value | $ 2.94 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 |
Income Taxes [Line Items] | |||||
Income tax benefit | $ 2.3 | $ 1.1 | $ 11.3 | $ 10.5 | |
Pretax income (loss) | $ 6.6 | $ 17.2 | $ (4.3) | $ 6.6 | |
5.500% Senior Notes Due in 2024 [Member] | |||||
Income Taxes [Line Items] | |||||
Interest rate on notes | 5.50% | 5.50% | 5.50% | ||
Debt instrument maturity year | 2,024 | 2,024 | |||
Eden [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | $ 7.2 | $ 7.2 | |||
Eden [Member] | 5.500% Senior Notes Due in 2024 [Member] | |||||
Income Taxes [Line Items] | |||||
Interest rate on notes | 5.50% | ||||
Debt instrument maturity year | 2,024 |
Common Shares and Net Income 43
Common Shares and Net Income (Loss) Per Common Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 29, 2016 | Mar. 09, 2016 | Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Net proceeds from offering of common stock | $ 220.1 | $ 142.5 | $ 364.2 | $ 142.6 | ||
Net deferred tax benefit | $ (2.1) | $ (5.2) | $ (12.9) | $ (16.9) | ||
March 2016 Offering [Member] | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Number of shares issued in offering | 12,765,000 | |||||
Public offering price per share | $ 11.80 | |||||
Net proceeds from offering of common stock | $ 150.6 | |||||
Underwriter commissions | 6 | |||||
Professional fees | 0.8 | |||||
Net deferred tax benefit | $ 1.7 | |||||
June 2016 Offering [Member] | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Number of shares issued in offering | 15,088,000 | |||||
Public offering price per share | $ 15.25 | |||||
Net proceeds from offering of common stock | $ 230.1 | |||||
Underwriter commissions | 9.2 | |||||
Professional fees | 1.1 | |||||
Net deferred tax benefit | $ 2.7 |
Common Shares and Net Income 44
Common Shares and Net Income (Loss) Per Common Share - Reconciliation of Numerator and Denominators of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Diluted net income (loss) attributed to Cott Corporation | $ 7.4 | $ 2.2 | $ 4.1 | $ (3.8) |
Weighted average number of shares outstanding - basic | 123,239 | 99,573 | 118,253 | 96,384 |
Adjusted weighted average number of shares outstanding - diluted | 124,180 | 100,165 | 119,038 | 96,384 |
Time-Based RSUs [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of awards | 393 | 416 | 361 | |
Stock Options [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of awards | 548 | 176 | 424 |
Common Shares and Net Income 45
Common Shares and Net Income (Loss) Per Common Share - Summary of the Anti-dilutive Securities Excluded from the Computation of Diluted Net Income (Loss) Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Stock Options [Member] | ||||
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 | 685 | 380 | 1,886 | |
Performance-Based RSUs [Member] | ||||
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 | 1,995 | 1,739 | 1,995 | 1,739 |
Time-Based RSUs [Member] | ||||
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 | 856 | |||
Convertible Preferred Shares [Member] | ||||
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 | 18,480 | 18,480 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 6 Months Ended | |
Jul. 02, 2016 | Jul. 04, 2015 | |
Revenue, Major Customer [Line Items] | ||
Number of reporting segments | 4 | |
Customer Concentration Risk [Member] | Sales [Member] | Walmart [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 17.90% | 18.30% |
Customer Concentration Risk [Member] | Sales [Member] | Walmart [Member] | All Other [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 2.10% | 3.40% |
Customer Concentration Risk [Member] | Sales [Member] | Walmart [Member] | DSS Group Inc [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 2.40% | 2.20% |
Customer Concentration Risk [Member] | Sales [Member] | Walmart [Member] | Cott North America [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 33.70% | 32.70% |
Customer Concentration Risk [Member] | Sales [Member] | Walmart [Member] | Cott United Kingdom [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk | 10.40% | 12.00% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | Jan. 02, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 | |
Depreciation and amortization | 53.5 | 58.2 | 106 | 115.6 | |
Operating income (loss) | 36.6 | 46.1 | 51.3 | 52.8 | |
Additions to property, plant and equipment | 33.2 | 29.9 | 62.7 | 57.2 | |
Total assets | 3,615 | 3,615 | $ 2,887.3 | ||
Operating Segments [Member] | Cott North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | 349.2 | 359 | 662.5 | 687.7 | |
Depreciation and amortization | 18.6 | 20.6 | 36.9 | 41.9 | |
Operating income (loss) | 18.4 | 18.3 | 19 | 25.5 | |
Additions to property, plant and equipment | 6.6 | 4.5 | 16 | 11.7 | |
Total assets | 1,610 | 1,610 | 943.1 | ||
Operating Segments [Member] | Cott United Kingdom [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | 132.3 | 153.8 | 252.9 | 286 | |
Depreciation and amortization | 5.4 | 5.4 | 10.9 | 10.9 | |
Operating income (loss) | 11.7 | 14.6 | 21.6 | 18.5 | |
Additions to property, plant and equipment | 3.8 | 4.5 | 5.8 | 6.2 | |
Total assets | 369 | 369 | 402.5 | ||
Operating Segments [Member] | DSS Group Inc [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | 275.7 | 257 | 533 | 497.3 | |
Depreciation and amortization | 29.3 | 31.8 | 57.7 | 62 | |
Operating income (loss) | 17.8 | 13.2 | 23.5 | 11.7 | |
Additions to property, plant and equipment | 22.7 | 20.4 | 40.5 | 38.8 | |
Total assets | 1,606.2 | 1,606.2 | 1,513.1 | ||
Operating Segments [Member] | All Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | 14.8 | 16.4 | 28.4 | 29.4 | |
Depreciation and amortization | 0.2 | 0.4 | 0.5 | 0.8 | |
Operating income (loss) | 3.4 | 3.7 | 5.9 | 5.3 | |
Additions to property, plant and equipment | 0.1 | 0.5 | 0.4 | 0.5 | |
Total assets | 29.8 | 29.8 | $ 28.6 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (14.7) | (3.7) | (18.7) | (8.2) | |
Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | (7) | (6.4) | (13.4) | (10.8) | |
Elimination [Member] | Cott North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, net | $ 7 | $ 6.4 | $ 13.4 | $ 10.8 |
Segment Reporting - Segment R48
Segment Reporting - Segment Reporting Information by Operating Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 |
Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (7) | (6.4) | (13.4) | (10.8) |
Elimination [Member] | Cott North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 7 | $ 6.4 | $ 13.4 | $ 10.8 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Channel Reporting Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 |
Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (7) | (6.4) | (13.4) | (10.8) |
Cott North America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 349.2 | 359 | 662.5 | 687.7 |
Cott North America [Member] | Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 7 | 6.4 | 13.4 | 10.8 |
Cott United Kingdom [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 132.3 | 153.8 | 252.9 | 286 |
Private Label Retail [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 357.4 | 379.7 | 673.9 | 724.4 |
Private Label Retail [Member] | Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (0.3) | (0.7) | (0.7) | (1.2) |
Private Label Retail [Member] | Cott North America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 280.9 | 289.7 | 529.4 | 557.4 |
Private Label Retail [Member] | Cott United Kingdom [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 55 | 71.8 | 106 | 132.7 |
Branded Retail [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 90 | 100.7 | 178.2 | 189 |
Branded Retail [Member] | Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (0.4) | (0.5) | (0.7) | (0.9) |
Branded Retail [Member] | Cott North America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 24.8 | 30.8 | 51.6 | 57.9 |
Branded Retail [Member] | Cott United Kingdom [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 41.7 | 48.5 | 78.3 | 89.3 |
Contract Packaging Inc [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 69.2 | 67.4 | 131.5 | 125.3 |
Contract Packaging Inc [Member] | Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (2.5) | (1.6) | (4.6) | (1.6) |
Contract Packaging Inc [Member] | Cott North America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 35.7 | 31.3 | 67.1 | 56.9 |
Contract Packaging Inc [Member] | Cott United Kingdom [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 31 | 30.9 | 59.3 | 59.3 |
Home and Office Bottled Water Delivery [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 177.2 | 164.8 | 339.2 | 314.4 |
Office Coffee Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 30 | 29.7 | 61.5 | 61.7 |
Concentrate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 41.2 | 37.5 | 79.1 | 74.8 |
Concentrate and Other [Member] | Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | (3.8) | (3.6) | (7.4) | (7.1) |
Concentrate and Other [Member] | Cott North America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 7.8 | 7.2 | 14.4 | 15.5 |
Concentrate and Other [Member] | Cott United Kingdom [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 4.6 | 2.6 | 9.3 | 4.7 |
DSS Group Inc [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 275.7 | 257 | 533 | 497.3 |
DSS Group Inc [Member] | Private Label Retail [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 20.7 | 17.2 | 37.6 | 32.7 |
DSS Group Inc [Member] | Branded Retail [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 22.9 | 20.6 | 47.2 | 40.3 |
DSS Group Inc [Member] | Home and Office Bottled Water Delivery [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 177.2 | 164.8 | 339.2 | 314.4 |
DSS Group Inc [Member] | Office Coffee Services [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 30 | 29.7 | 61.5 | 61.7 |
DSS Group Inc [Member] | Concentrate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 24.9 | 24.7 | 47.5 | 48.2 |
All Other [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 14.8 | 16.4 | 28.4 | 29.4 |
All Other [Member] | Private Label Retail [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 1.1 | 1.7 | 1.6 | 2.8 |
All Other [Member] | Branded Retail [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 1 | 1.3 | 1.8 | 2.4 |
All Other [Member] | Contract Packaging Inc [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 5 | 6.8 | 9.7 | 10.7 |
All Other [Member] | Concentrate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 7.7 | $ 6.6 | $ 15.3 | $ 13.5 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 93.8 | $ 95.3 |
Finished goods | 119.6 | 118.4 |
Resale items | 13.1 | 15.8 |
Other | 20.6 | 19.9 |
Total | $ 247.1 | $ 249.4 |
Intangibles and Other Assets -
Intangibles and Other Assets - Summary of Intangibles and Other Assets (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | $ 763.5 | $ 758.7 |
Total Intangible Assets - Cost | 998.7 | 986.8 |
Intangibles Assets - Cost | 235.2 | 228.1 |
Intangibles Assets - Accumulated Amortization | 335.5 | 302.7 |
Intangibles Assets- Net | 428 | 456 |
Total Intangible Assets - Net | 663.2 | 684.1 |
Intangibles Assets- Net | 235.2 | 228.1 |
Other Assets - Cost | 38.5 | 38.1 |
Other Assets - Accumulated Amortization | 11.3 | 10.5 |
Other Assets - Net | 27.2 | 27.6 |
Total Intangibles and Other Assets - Cost | 1,037.2 | 1,024.9 |
Total Intangibles and Other Assets - Accumulated Amortization | 346.8 | 313.2 |
Total Intangibles and Other Assets - Net | 690.4 | 711.7 |
Financing Costs [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Other Assets - Cost | 12.6 | 12.6 |
Other Assets - Accumulated Amortization | 9 | 8.5 |
Other Assets - Net | 3.6 | 4.1 |
Deposits [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Other Assets - Cost | 11.5 | 10.3 |
Other Assets - Accumulated Amortization | 0.4 | 0.4 |
Other Assets - Net | 11.1 | 9.9 |
Customer Relationships [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 665.6 | 663.9 |
Intangibles Assets - Accumulated Amortization | 269.3 | 241 |
Intangibles Assets- Net | 396.3 | 422.9 |
Trademarks [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 32.3 | 33 |
Intangibles Assets - Accumulated Amortization | 27.9 | 28.1 |
Intangibles Assets- Net | 4.4 | 4.9 |
Information Technology [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 58.1 | 54 |
Intangibles Assets - Accumulated Amortization | 33.5 | 29.1 |
Intangibles Assets- Net | 24.6 | 24.9 |
Other [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 7.5 | 7.8 |
Intangibles Assets - Accumulated Amortization | 4.8 | 4.5 |
Intangibles Assets- Net | 2.7 | 3.3 |
Rights [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 45 | 45 |
Intangibles Assets- Net | 45 | 45 |
Trademarks [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Intangibles Assets - Cost | 190.2 | 183.1 |
Intangibles Assets- Net | 190.2 | 183.1 |
Other [Member] | ||
Intangibles And Other Assets Net [Line Items] | ||
Other Assets - Cost | 14.4 | 15.2 |
Other Assets - Accumulated Amortization | 1.9 | 1.6 |
Other Assets - Net | $ 12.5 | $ 13.6 |
Intangibles and Other Assets 52
Intangibles and Other Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Intangibles And Other Assets [Abstract] | ||||
Amortization expense of intangibles and other assets | $ 19.1 | $ 19.6 | $ 38.3 | $ 38.8 |
Intangibles and Other Assets 53
Intangibles and Other Assets - Estimated Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2016 | $ 35.5 | |
2,017 | 64 | |
2,018 | 56.9 | |
2,019 | 48 | |
2,020 | 41.7 | |
Thereafter | 181.9 | |
Intangibles Assets- Net | $ 428 | $ 456 |
Accounts Payable and Accrued 54
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 271.5 | $ 227.2 |
Accrued compensation | 37.3 | 49.8 |
Accrued sales incentives | 25.7 | 25.2 |
Accrued interest | 12.2 | 12.2 |
Payroll, salaries and other taxes | 18.9 | 13.3 |
Accrued deposits | 31.9 | 28.6 |
Other accrued liabilities | 70.5 | 81.3 |
Total | $ 468 | $ 437.6 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) € in Millions, $ in Millions | Jul. 02, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Jan. 02, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Total debt, principal amount | $ 2,045.3 | $ 1,671.4 | ||
Total long-term debt, principal amount | 3.6 | 125.4 | ||
Total debt, Unamortized debt issuance costs | 28.4 | 20.6 | ||
Senior notes | 2,009.2 | 1,519.9 | ||
ABL facility | 122 | |||
GE Term Loan | 5.3 | 6 | ||
Capital leases and other debt financing | 2.4 | 2.9 | ||
Total debt | 2,016.9 | 1,650.8 | ||
Total short-term borrowings | 122 | |||
GE Term Loan - current maturities | 2.6 | 2.2 | ||
Capital leases and other debt financing - current maturities | 1 | 1.2 | ||
Total current debt | 3.6 | 125.4 | ||
Total long-term debt | 2,013.3 | 1,525.4 | ||
ABL Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 122 | |||
GE Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 5.5 | 6.4 | ||
Total debt, Unamortized debt issuance costs | 0.2 | 0.4 | ||
Capital Leases and Other Debt Financing [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 2.4 | 2.9 | ||
6.750% Senior Notes Due in 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 625 | 625 | ||
Total debt, Unamortized debt issuance costs | 10.7 | 12 | ||
Senior notes | 614.3 | 613 | ||
10.000% Senior Notes Due in 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 387.2 | 390.1 | ||
Senior notes | 387.2 | 390.1 | ||
5.375% Senior Notes Due in 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 525 | 525 | ||
Total debt, Unamortized debt issuance costs | 7.7 | 8.2 | ||
Senior notes | 517.3 | $ 516.8 | ||
5.500% Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 500.2 | |||
Total debt, Unamortized debt issuance costs | 9.8 | |||
Senior notes | $ 490.4 | $ 500.2 | € 450 |
Debt - Components of Debt (Pare
Debt - Components of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Jul. 02, 2016 | Jan. 02, 2016 | Dec. 12, 2014 |
Debt Instrument [Line Items] | ||||
Outstanding aggregate principal amount | $ 2,045.3 | $ 1,671.4 | ||
6.750% Senior Notes Due in 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 6.75% | |||
Debt instrument maturity year | 2,020 | |||
Outstanding aggregate principal amount | $ 625 | 625 | ||
10.000% Senior Notes Due in 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 10.00% | |||
Debt instrument maturity year | 2,021 | |||
Outstanding aggregate principal amount | $ 387.2 | 390.1 | ||
10.000% Senior Notes Due in 2021 [Member] | DSS Group Inc [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 10.00% | |||
Outstanding aggregate principal amount | $ 350 | |||
Debt instrument fair value | $ 406 | |||
Debt instrument, amortization of premium | $ 37.2 | 40.1 | $ 56 | |
5.375% Senior Notes Due in 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 5.375% | |||
Debt instrument maturity year | 2,022 | |||
Outstanding aggregate principal amount | $ 525 | $ 525 | ||
5.500% Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 5.50% | 5.50% | ||
Debt instrument maturity year | 2,024 | 2,024 | ||
Outstanding aggregate principal amount | $ 500.2 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, $ in Millions | Jun. 30, 2016USD ($) | Jul. 02, 2016USD ($) | Jun. 30, 2016EUR (€) | Jan. 02, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Senior notes | $ 2,009.2 | $ 1,519.9 | ||
5.500% Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 500.2 | $ 490.4 | € 450 | |
Interest rate on notes | 5.50% | 5.50% | 5.50% | |
Debt instrument maturity year | 2,024 | 2,024 | ||
Financing fees | $ 9.8 | |||
Amortization period of financing fees (years) | 8 years | |||
5.500% Senior Notes Due in 2024 [Member] | Eden [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 5.50% | 5.50% | ||
Debt instrument maturity year | 2,024 | |||
Financing fees | $ 10 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) $ in Millions | 6 Months Ended |
Jul. 02, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance January 2, 2016 | $ (76.2) |
OCI before reclassifications | (12.1) |
Amounts reclassified from AOCI | (2.5) |
Net current-period OCI | (14.6) |
Ending balance July 2, 2016 | (90.8) |
Gains and Losses on Derivative Instruments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance January 2, 2016 | (4.7) |
OCI before reclassifications | 5.8 |
Amounts reclassified from AOCI | (2.7) |
Net current-period OCI | 3.1 |
Ending balance July 2, 2016 | (1.6) |
Pension Benefit Plan Items [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance January 2, 2016 | (10.1) |
Amounts reclassified from AOCI | 0.2 |
Net current-period OCI | 0.2 |
Ending balance July 2, 2016 | (9.9) |
Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance January 2, 2016 | (61.4) |
OCI before reclassifications | (17.9) |
Net current-period OCI | (17.9) |
Ending balance July 2, 2016 | $ (79.3) |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ (512.4) | $ (539.2) | $ (996.8) | $ (1,047.7) |
Income tax (expense) benefit | 2.3 | 1.1 | 11.3 | 10.5 |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 1.6 | (0.4) | 2.5 | (0.3) |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income [Member] | Gains and Losses on Derivative Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 2.4 | (0.1) | 4 | 0.2 |
Income tax (expense) benefit | (0.7) | 0.1 | (1.3) | |
Net income | 1.7 | 2.7 | 0.2 | |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income [Member] | Pension Benefit Plan Items [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service costs | (0.1) | (0.4) | (0.2) | (0.5) |
Total before taxes | (0.1) | (0.4) | (0.2) | (0.5) |
Net income | $ (0.1) | $ (0.4) | $ (0.2) | $ (0.5) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) £ in Millions, $ in Millions | Jul. 02, 2016USD ($) | Jul. 02, 2016GBP (£) | Jul. 04, 2015USD ($) | May 31, 2014GBP (£) |
Other Commitments [Line Items] | ||||
Estimated contingent consideration liability | $ 15.9 | £ 12 | ||
ABL Facility [Member] | ||||
Other Commitments [Line Items] | ||||
Standby letters of credit outstanding | 40.7 | $ 41.4 | ||
Aimia Foods Holdings Limited [Member] | ||||
Other Commitments [Line Items] | ||||
Percentage of share capital acquired | 100.00% | |||
Contingent consideration maximum payable amount | 21.3 | £ 16 | ||
Estimated contingent consideration liability | $ 15.9 | £ 12 | £ 10.6 |
Hedging Transactions and Deri61
Hedging Transactions and Derivative Financial Instruments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Jul. 02, 2016USD ($) | Jul. 04, 2015USD ($) | Jul. 02, 2016USD ($) | Jul. 04, 2015USD ($) | Jun. 30, 2016EUR (€) | Jan. 02, 2016USD ($) | |
Derivative [Line Items] | |||||||
Maximum period for foreign exchange contracts | 12 months | ||||||
Maximum period for commodity contracts | 27 months | ||||||
Period over which outstanding cash flow hedges are expected to settle | 12 months | ||||||
Unrealized gain (loss) on cash flow hedge | $ (900,000) | $ 1,000,000 | |||||
Fair value of derivative instruments | $ 100,000 | 100,000 | $ 600,000 | ||||
Fair value of derivative liabilities | 2,900,000 | 2,900,000 | 8,000,000 | ||||
Gains and Losses on Derivative Instruments [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative instruments, charge (increase) to cost of sales | 2,300,000 | $ 0 | 3,900,000 | (200,000) | |||
Aluminum Swaps [Member] | |||||||
Derivative [Line Items] | |||||||
Notional value of cash flow hedges | 23,900,000 | 23,900,000 | 49,300,000 | ||||
Unrealized gain (loss) on cash flow hedge | (1,000,000) | $ (3,800,000) | |||||
Fair value of derivative instruments | 100,000 | 100,000 | |||||
Fair value of derivative liabilities | 1,600,000 | 1,600,000 | 8,000,000 | ||||
Foreign Exchange Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Fair value of derivative instruments | 600,000 | ||||||
Fair value of derivative liabilities | 1,300,000 | 1,300,000 | |||||
Foreign Exchange Contract [Member] | Eden [Member] | |||||||
Derivative [Line Items] | |||||||
Notional value of cash flow hedges | € | € 30,000,000 | ||||||
Zero-cost collar contract settlement amount | $ 33,300,000 | ||||||
Foreign Exchange Contract [Member] | Eden [Member] | Euro Put Option [Member] | |||||||
Derivative [Line Items] | |||||||
Fair value of Euro put option | 200,000 | 200,000 | |||||
Unrealized loss on derivatives | (200,000) | (200,000) | |||||
Foreign Exchange Contract [Member] | Eden [Member] | Euro Call Option [Member] | Maximum [Member] | |||||||
Derivative [Line Items] | |||||||
Fair value of Euro call option | 0 | 0 | |||||
Cash Flow Hedging [Member] | Forward Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Notional value of cash flow hedges | $ 17,900,000 | $ 17,900,000 | $ 4,500,000 |
Hedging Transactions and Deri62
Hedging Transactions and Derivative Financial Instruments - Summary of Reconciliation of Company's Derivatives by Contract Type (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Derivative [Line Items] | ||
Assets | $ 0.1 | $ 0.6 |
Liabilities | 2.9 | 8 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Assets | 0.6 | |
Liabilities | 1.3 | |
Aluminum Swaps [Member] | ||
Derivative [Line Items] | ||
Assets | 0.1 | |
Liabilities | $ 1.6 | $ 8 |
Hedging Transactions and Deri63
Hedging Transactions and Derivative Financial Instruments - Summary of Fair Value of the Aluminum Swap Assets and Liabilities (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 |
Derivative [Line Items] | ||
Net asset (liability) | $ (2.9) | $ (8) |
Aluminum Swaps [Member] | ||
Derivative [Line Items] | ||
Aluminum swap assets | 0.1 | |
Aluminum swap liabilities | (1.6) | (8) |
Net asset (liability) | $ (1.6) | $ (8) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) £ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2016USD ($) | Jul. 04, 2015USD ($) | Jul. 02, 2016USD ($) | Jul. 04, 2015USD ($) | Jul. 02, 2016GBP (£) | Jan. 02, 2016USD ($) | May 31, 2014GBP (£) | |
Fair Value Measurements [Line Items] | |||||||
Fair value for the derivative assets | $ 100,000 | $ 100,000 | $ 600,000 | ||||
Fair value for the derivative liabilities | 2,900,000 | 2,900,000 | 8,000,000 | ||||
Fair value, assets, level 1 to level 2 transfers | 0 | $ 0 | 0 | $ 0 | |||
Fair value, assets, level 2 to level 1 transfers | 0 | 0 | 0 | 0 | |||
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 | 0 | 0 | |||
Fair value, liabilities, level 2 to level 1 transfers | 0 | 0 | 0 | 0 | |||
Fair value, assets transfers into and (out of) level 3 | 0 | 0 | 0 | 0 | |||
Fair value, liabilities, transfers into level 3 | 0 | $ 0 | 0 | $ 0 | |||
Fair value of contingent consideration | 15,900,000 | 15,900,000 | £ 12 | ||||
Aimia Foods Holdings Limited [Member] | |||||||
Fair Value Measurements [Line Items] | |||||||
Fair value of contingent consideration | 15,900,000 | 15,900,000 | £ 12 | £ 10.6 | |||
Level 2 [Member] | |||||||
Fair Value Measurements [Line Items] | |||||||
Fair value for the derivative assets | 100,000 | 100,000 | 600,000 | ||||
Fair value for the derivative liabilities | $ 2,900,000 | $ 2,900,000 | $ 8,000,000 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Values of Outstanding Debt (Detail) € in Millions, $ in Millions | Jul. 02, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Jan. 02, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, carrying value | $ 2,009.2 | $ 1,519.9 | ||
6.750% Senior Notes Due in 2020 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, carrying value | 614.3 | 613 | ||
10.000% Senior Notes Due in 2021 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, carrying value | 387.2 | 390.1 | ||
5.375% Senior Notes Due in 2022 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, carrying value | 517.3 | 516.8 | ||
5.500% Senior Notes Due in 2024 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, carrying value | 490.4 | $ 500.2 | € 450 | |
Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding debt, fair value | 2,086 | 1,561.1 | ||
Level 1 [Member] | 6.750% Senior Notes Due in 2020 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding debt, fair value | 654.7 | 641.4 | ||
Level 1 [Member] | 10.000% Senior Notes Due in 2021 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding debt, fair value | 392.9 | 397.3 | ||
Level 1 [Member] | 5.375% Senior Notes Due in 2022 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding debt, fair value | 525 | $ 522.4 | ||
Level 1 [Member] | 5.500% Senior Notes Due in 2024 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding debt, fair value | $ 513.4 |
Fair Value Measurements - Car66
Fair Value Measurements - Carrying Value and Estimated Fair Values of Outstanding Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Jan. 02, 2016 | Dec. 12, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding aggregate principal amount | $ 2,045.3 | $ 1,671.4 | |
Unamortized debt issuance costs | 28.4 | 20.6 | |
10.000% Senior Notes Due in 2021 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding aggregate principal amount | 387.2 | 390.1 | |
10.000% Senior Notes Due in 2021 [Member] | DSS Group Inc [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding aggregate principal amount | 350 | ||
Debt instrument, fair value | $ 406 | ||
Debt instrument, unamortized premium | $ 37.2 | $ 40.1 | $ 56 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Business Acquisitions, Reconciliation of Fair Value of Contingent Consideration (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | ||||
Fair value at beginning of period | $ 15.9 | $ 15.8 | $ 16.4 | $ 16.5 |
Fair value adjustment | 1.2 | 0.6 | 1.2 | 0.6 |
Foreign exchange (gain) loss | (1.2) | 0.8 | (1.7) | 0.1 |
Transfers out | $ (15.9) | $ (15.9) | ||
Fair value at end of period | $ 17.2 | $ 17.2 |
Guarantor Subsidiaries (Cott Co
Guarantor Subsidiaries (Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Additional Information (Detail) | Jan. 02, 2016 |
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage | 100.00% |
Guarantor Subsidiaries (Cott 69
Guarantor Subsidiaries (Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 |
Cost of sales | 512.4 | 539.2 | 996.8 | 1,047.7 |
Gross profit | 252.6 | 240.6 | 466.6 | 441.9 |
Selling, general and administrative expenses | 202.1 | 190.2 | 399.1 | 378.7 |
(Gain) loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Acquisition and integration expenses | 11.7 | 4.1 | 13.1 | 8.8 |
Operating (loss) income | 36.6 | 46.1 | 51.3 | 52.8 |
Other expense (income), net | 3 | 1 | 0.8 | (9.4) |
Interest expense, net | 27 | 27.9 | 54.8 | 55.6 |
Income (loss) before income taxes | 6.6 | 17.2 | (4.3) | 6.6 |
Income tax (benefit) expense | (2.3) | (1.1) | (11.3) | (10.5) |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 765 | 779.8 | 1,463.4 | 1,489.6 |
Cost of sales | 512.4 | 539.2 | 996.8 | 1,047.7 |
Gross profit | 252.6 | 240.6 | 466.6 | 441.9 |
Selling, general and administrative expenses | 202.1 | 190.2 | 399.1 | 378.7 |
(Gain) loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Acquisition and integration expenses | 11.7 | 4.1 | 13.1 | 8.8 |
Operating (loss) income | 36.6 | 46.1 | 51.3 | 52.8 |
Other expense (income), net | 3 | 1 | 0.8 | (9.4) |
Interest expense, net | 27 | 27.9 | 54.8 | 55.6 |
Income (loss) before income taxes | 6.6 | 17.2 | (4.3) | 6.6 |
Income tax (benefit) expense | (2.3) | (1.1) | (11.3) | (10.5) |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Net income (loss) attributed to Cott Corporation | 7.4 | 2.2 | 4.1 | (3.8) |
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | (14.7) | (19.9) | (28.5) | (30.1) |
Cost of sales | (14.7) | (19.9) | (28.5) | (30.1) |
Equity income | (18.4) | (15.2) | (16.9) | (4.4) |
Net income | (18.4) | (15.2) | (16.9) | (4.4) |
Net income (loss) attributed to Cott Corporation | (18.4) | (15.2) | (16.9) | (4.4) |
Comprehensive (loss) income attributed to Cott Corporation | (78.5) | (60.1) | (101.5) | (32.7) |
Cott Corporation [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 48.2 | 46.9 | 82 | 76.9 |
Cost of sales | 38.9 | 38.4 | 68.6 | 65.4 |
Gross profit | 9.3 | 8.5 | 13.4 | 11.5 |
Selling, general and administrative expenses | 16.8 | 4.9 | 22.3 | 10.4 |
Operating (loss) income | (7.5) | 3.6 | (8.9) | 1.1 |
Other expense (income), net | 1.8 | 0.7 | 0.2 | (9.8) |
Intercompany interest (income) expense, net | (1.9) | (4.9) | ||
Interest expense, net | 0.2 | 0.4 | 0.1 | |
Income (loss) before income taxes | (9.5) | 4.8 | (9.5) | 15.7 |
Income tax (benefit) expense | 1.8 | 3 | ||
Equity income | 16.9 | 13.6 | 13.6 | 1.4 |
Net income | 7.4 | 16.6 | 4.1 | 14.1 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Net income (loss) attributed to Cott Corporation | 7.4 | 2.2 | 4.1 | (3.8) |
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Cott Corporation [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Cott Corporation [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
DSS Group Inc [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 259 | 257 | 502.1 | 497.3 |
Cost of sales | 98.9 | 100.8 | 196.3 | 201.2 |
Gross profit | 160.1 | 156.2 | 305.8 | 296.1 |
Selling, general and administrative expenses | 141.2 | 139.1 | 278.4 | 276.3 |
(Gain) loss on disposal of property, plant & equipment, net | 1.4 | 0.9 | 3.2 | 2 |
Acquisition and integration expenses | 1.1 | 3.1 | 2 | 6.1 |
Operating (loss) income | 16.4 | 13.1 | 22.2 | 11.7 |
Other expense (income), net | (0.3) | (0.2) | (1.3) | (0.4) |
Intercompany interest (income) expense, net | 10.8 | 11 | 21.6 | 21.9 |
Interest expense, net | 7.2 | 7.5 | 14.6 | 14.8 |
Income (loss) before income taxes | (1.3) | (5.2) | (12.7) | (24.6) |
Income tax (benefit) expense | (0.4) | (1.8) | (4.6) | (9) |
Net income | (0.9) | (3.4) | (8.1) | (15.6) |
Net income (loss) attributed to Cott Corporation | (0.9) | (3.4) | (8.1) | (15.6) |
Comprehensive (loss) income attributed to Cott Corporation | (0.9) | (3.4) | (8.1) | (15.6) |
Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 437.3 | 457.5 | 844.1 | 875.8 |
Cost of sales | 360.6 | 389 | 708.8 | 754.4 |
Gross profit | 76.7 | 68.5 | 135.3 | 121.4 |
Selling, general and administrative expenses | 41.1 | 43.2 | 92.7 | 85.9 |
(Gain) loss on disposal of property, plant & equipment, net | 0.8 | (0.7) | (0.1) | (0.4) |
Acquisition and integration expenses | 10.6 | 1 | 11.1 | 2.7 |
Operating (loss) income | 24.2 | 25 | 31.6 | 33.2 |
Other expense (income), net | 1.4 | 0.6 | 1.8 | 0.8 |
Intercompany interest (income) expense, net | (10.8) | (9.1) | (21.6) | (17) |
Interest expense, net | 19.6 | 20.4 | 39.8 | 40.7 |
Income (loss) before income taxes | 14 | 13.1 | 11.6 | 8.7 |
Income tax (benefit) expense | (1.9) | (1.2) | (6.8) | (4.7) |
Equity income | 1.5 | 1.6 | 3.3 | 3 |
Net income | 17.4 | 15.9 | 21.7 | 16.4 |
Net income (loss) attributed to Cott Corporation | 17.4 | 15.9 | 21.7 | 16.4 |
Comprehensive (loss) income attributed to Cott Corporation | 75.4 | 59.3 | 106.2 | 43.5 |
Non-Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 35.2 | 38.3 | 63.7 | 69.7 |
Cost of sales | 28.7 | 30.9 | 51.6 | 56.8 |
Gross profit | 6.5 | 7.4 | 12.1 | 12.9 |
Selling, general and administrative expenses | 3 | 3 | 5.7 | 6.1 |
Operating (loss) income | 3.5 | 4.4 | 6.4 | 6.8 |
Other expense (income), net | 0.1 | (0.1) | 0.1 | |
Income (loss) before income taxes | 3.4 | 4.5 | 6.3 | 6.8 |
Income tax (benefit) expense | 0.1 | 0.1 | 0.2 | |
Net income | 3.4 | 4.4 | 6.2 | 6.6 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Net income (loss) attributed to Cott Corporation | 1.9 | 2.7 | 3.3 | 3.6 |
Comprehensive (loss) income attributed to Cott Corporation | $ 4 | $ 4.2 | $ 3.4 | $ 4.8 |
Guarantor Subsidiaries (Cott 70
Guarantor Subsidiaries (Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | $ 249.5 | $ 55.1 | $ 77.1 | $ 79 | $ 34.5 | $ 86.2 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 339.5 | 293.3 | ||||
Income taxes recoverable | 0.9 | 1.6 | ||||
Inventories | 247.1 | 249.4 | ||||
Prepaid expenses and other assets | 24.1 | 17.2 | ||||
Total current assets | 1,364.2 | 638.6 | ||||
Property, plant & equipment, net | 770.2 | 769.8 | ||||
Goodwill | 777.4 | 759.6 | ||||
Intangibles and other assets, net | 690.4 | 711.7 | ||||
Deferred tax assets | 12.8 | 7.6 | ||||
Total assets | 3,615 | 2,887.3 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.6 | 3.4 | ||||
Accounts payable and accrued liabilities | 468 | 437.6 | ||||
Total current liabilities | 471.6 | 563 | ||||
Long-term debt | 2,013.3 | 1,525.4 | ||||
Deferred tax liabilities | 63.7 | 76.5 | ||||
Other long-term liabilities | 72.5 | 76.5 | ||||
Total liabilities | 2,621.1 | 2,241.4 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | 993.9 | 645.9 | 677 | 548.9 | ||
Total liabilities and equity | 3,615 | 2,887.3 | ||||
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 249.5 | 55.1 | 77.1 | 79 | 34.5 | 86.2 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 339.5 | 293.3 | ||||
Income taxes recoverable | 0.9 | 1.6 | ||||
Inventories | 247.1 | 249.4 | ||||
Prepaid expenses and other assets | 24.1 | 17.2 | ||||
Total current assets | 1,364.2 | 638.6 | ||||
Property, plant & equipment, net | 770.2 | 769.8 | ||||
Goodwill | 777.4 | 759.6 | ||||
Intangibles and other assets, net | 690.4 | 711.7 | ||||
Deferred tax assets | 12.8 | 7.6 | ||||
Total assets | 3,615 | 2,887.3 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.6 | 3.4 | ||||
Accounts payable and accrued liabilities | 468 | 437.6 | ||||
Total current liabilities | 471.6 | 563 | ||||
Long-term debt | 2,013.3 | 1,525.4 | ||||
Deferred tax liabilities | 63.7 | 76.5 | ||||
Other long-term liabilities | 72.5 | 76.5 | ||||
Total liabilities | 2,621.1 | 2,241.4 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | 993.9 | 645.9 | ||||
Total liabilities and equity | 3,615 | 2,887.3 | ||||
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Accounts receivable, net of allowance | (61.5) | (45.2) | ||||
Income taxes recoverable | (0.7) | |||||
Total current assets | (62.2) | (45.2) | ||||
Deferred tax assets | (44.7) | (38.2) | ||||
Due from affiliates | (910.8) | (944.4) | ||||
Investments in subsidiaries | (792.1) | (576.3) | ||||
Total assets | (1,809.8) | (1,604.1) | ||||
Accounts payable and accrued liabilities | (62.2) | (45.2) | ||||
Total current liabilities | (62.2) | (45.2) | ||||
Deferred tax liabilities | (44.7) | (38.2) | ||||
Due to affiliates | (910.8) | (944.4) | ||||
Total liabilities | (1,017.7) | (1,027.8) | ||||
Equity | ||||||
Common shares, no par | (1,197.6) | (1,077.2) | ||||
Retained earnings (deficit) | 513.2 | 524 | ||||
Accumulated other comprehensive (loss) income | (107.7) | (23.1) | ||||
Total Cott Corporation equity | (792.1) | (576.3) | ||||
Total equity | (792.1) | (576.3) | ||||
Total liabilities and equity | (1,809.8) | (1,604.1) | ||||
Cott Corporation [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 182.6 | 4.9 | 20.8 | 13.8 | 0.3 | 6.2 |
Accounts receivable, net of allowance | 37.1 | 18.3 | ||||
Income taxes recoverable | 0.1 | |||||
Inventories | 15.1 | 13 | ||||
Prepaid expenses and other assets | 1.9 | 2.2 | ||||
Total current assets | 236.8 | 54.3 | ||||
Property, plant & equipment, net | 30.3 | 29.7 | ||||
Goodwill | 21.2 | 19.8 | ||||
Intangibles and other assets, net | 0.9 | 0.8 | ||||
Deferred tax assets | 12.6 | 7.4 | ||||
Due from affiliates | 366.4 | 400.1 | ||||
Investments in subsidiaries | 392 | 176.3 | ||||
Total assets | 1,060.2 | 688.4 | ||||
Accounts payable and accrued liabilities | 70.8 | 47.6 | ||||
Total current liabilities | 70.8 | 47.6 | ||||
Other long-term liabilities | 0.5 | 0.5 | ||||
Due to affiliates | 1.2 | 1 | ||||
Total liabilities | 72.5 | 49.1 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Total equity | 987.7 | 639.3 | ||||
Total liabilities and equity | 1,060.2 | 688.4 | ||||
DSS Group Inc [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 26.4 | 20.5 | 12.8 | 28.6 | 14.8 | 34.4 |
Accounts receivable, net of allowance | 124 | 122.6 | ||||
Income taxes recoverable | 1.1 | 0.5 | ||||
Inventories | 29.1 | 31.4 | ||||
Prepaid expenses and other assets | 9.5 | 4.8 | ||||
Total current assets | 190.1 | 172.1 | ||||
Property, plant & equipment, net | 379.9 | 372.6 | ||||
Goodwill | 580.7 | 579.1 | ||||
Intangibles and other assets, net | 387.7 | 402.5 | ||||
Total assets | 1,538.4 | 1,526.3 | ||||
Accounts payable and accrued liabilities | 158.9 | 131.8 | ||||
Total current liabilities | 158.9 | 131.8 | ||||
Long-term debt | 387.2 | 390.1 | ||||
Deferred tax liabilities | 92.8 | 97.7 | ||||
Other long-term liabilities | 37.2 | 36.2 | ||||
Due to affiliates | 543.3 | 543.3 | ||||
Total liabilities | 1,219.4 | 1,199.1 | ||||
Equity | ||||||
Common shares, no par | 355.5 | 355.5 | ||||
Retained earnings (deficit) | (36.3) | (28.1) | ||||
Accumulated other comprehensive (loss) income | (0.2) | (0.2) | ||||
Total Cott Corporation equity | 319 | 327.2 | ||||
Total equity | 319 | 327.2 | ||||
Total liabilities and equity | 1,538.4 | 1,526.3 | ||||
Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 33.2 | 25 | 38.4 | 30.8 | 14.8 | 38.2 |
Accounts receivable, net of allowance | 226.7 | 184.6 | ||||
Income taxes recoverable | 0.9 | |||||
Inventories | 196.5 | 199.4 | ||||
Prepaid expenses and other assets | 12.3 | 10 | ||||
Total current assets | 468.7 | 433.3 | ||||
Property, plant & equipment, net | 353.9 | 360.8 | ||||
Goodwill | 175.5 | 160.7 | ||||
Intangibles and other assets, net | 300.9 | 305.6 | ||||
Deferred tax assets | 44.7 | 38.2 | ||||
Due from affiliates | 544.4 | 544.3 | ||||
Investments in subsidiaries | 400.1 | 400 | ||||
Total assets | 2,288.2 | 2,242.9 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.4 | 3 | ||||
Accounts payable and accrued liabilities | 277 | 295.1 | ||||
Total current liabilities | 280.4 | 420.1 | ||||
Long-term debt | 1,135.7 | 1,135.3 | ||||
Deferred tax liabilities | 15.6 | 17 | ||||
Other long-term liabilities | 33.6 | 38.7 | ||||
Due to affiliates | 340 | 371.9 | ||||
Total liabilities | 1,805.3 | 1,983 | ||||
Equity | ||||||
Common shares, no par | 802.3 | 683.1 | ||||
Retained earnings (deficit) | (418.2) | (437.5) | ||||
Accumulated other comprehensive (loss) income | 98.8 | 14.3 | ||||
Total Cott Corporation equity | 482.9 | 259.9 | ||||
Total equity | 482.9 | 259.9 | ||||
Total liabilities and equity | 2,288.2 | 2,242.9 | ||||
Non-Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 7.3 | $ 4.7 | 5.1 | $ 5.8 | $ 4.6 | $ 7.4 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 13.2 | 13 | ||||
Income taxes recoverable | 0.4 | 0.2 | ||||
Inventories | 6.4 | 5.6 | ||||
Prepaid expenses and other assets | 0.4 | 0.2 | ||||
Total current assets | 530.8 | 24.1 | ||||
Property, plant & equipment, net | 6.1 | 6.7 | ||||
Intangibles and other assets, net | 0.9 | 2.8 | ||||
Deferred tax assets | 0.2 | 0.2 | ||||
Total assets | 538 | 33.8 | ||||
Current maturities of long-term debt | 0.2 | 0.4 | ||||
Accounts payable and accrued liabilities | 23.5 | 8.3 | ||||
Total current liabilities | 23.7 | 8.7 | ||||
Long-term debt | 490.4 | |||||
Other long-term liabilities | 1.2 | 1.1 | ||||
Due to affiliates | 26.3 | 28.2 | ||||
Total liabilities | 541.6 | 38 | ||||
Equity | ||||||
Common shares, no par | 39.8 | 38.6 | ||||
Retained earnings (deficit) | (58.7) | (58.4) | ||||
Accumulated other comprehensive (loss) income | 9.1 | 9 | ||||
Total Cott Corporation equity | (9.8) | (10.8) | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | (3.6) | (4.2) | ||||
Total liabilities and equity | $ 538 | $ 33.8 |
Guarantor Subsidiaries (Cott 71
Guarantor Subsidiaries (Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | $ 87.6 | $ 75.7 | $ 68.9 | $ 74.6 |
Investing Activities | ||||
Acquisition, net of cash received | (1.8) | (0.5) | (46.2) | (0.5) |
Additions to property, plant & equipment | (33.2) | (29.9) | (62.7) | (57.2) |
Additions to intangibles and other assets | (1) | (0.1) | (3.3) | (2.2) |
Proceeds from sale of property, plant & equipment and sale-leaseback | 0.2 | 40.1 | 2.9 | 40.5 |
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (38.6) | 9.6 | (112.1) | (19.4) |
Financing Activities | ||||
Payments of long-term debt | (0.4) | (1.1) | (1.5) | (1.9) |
Borrowings under ABL | 123.9 | 654.1 | 621.1 | 748.9 |
Payments under ABL | (187.7) | (674.4) | (746) | (777.2) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Financing fees | (0.2) | (0.2) | ||
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (7.4) | (9) | (14.7) | (18) |
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Net cash provided by (used in) financing activities | 147.5 | (41) | 218.7 | (61.4) |
Effect of exchange rate changes on cash | (2.1) | 0.2 | (3.1) | (1) |
Net increase (decrease) in cash & cash equivalents | 194.4 | 44.5 | 172.4 | (7.2) |
Cash & cash equivalents, beginning of period | 55.1 | 34.5 | 77.1 | 86.2 |
Cash & cash equivalents, end of period | 249.5 | 79 | 249.5 | 79 |
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 87.6 | 75.7 | 68.9 | 74.6 |
Investing Activities | ||||
Acquisition, net of cash received | (1.8) | (0.5) | (46.2) | (0.5) |
Additions to property, plant & equipment | (33.2) | (29.9) | (62.7) | (57.2) |
Additions to intangibles and other assets | (1) | (0.1) | (3.3) | (2.2) |
Proceeds from sale of property, plant & equipment and sale-leaseback | 0.2 | 40.1 | 2.9 | 40.5 |
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (38.6) | 9.6 | (112.1) | (19.4) |
Financing Activities | ||||
Payments of long-term debt | (0.4) | (1.1) | (1.5) | (1.9) |
Borrowings under ABL | 123.9 | 654.1 | 621.1 | 748.9 |
Payments under ABL | (187.7) | (674.4) | (746) | (777.2) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Financing fees | (0.2) | (0.2) | ||
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (9) | (18) | ||
Dividends paid to common shareowners | (7.4) | (14.7) | ||
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Net cash provided by (used in) financing activities | 147.5 | (41) | 218.7 | (61.4) |
Effect of exchange rate changes on cash | (2.1) | 0.2 | (3.1) | (1) |
Net increase (decrease) in cash & cash equivalents | 194.4 | 44.5 | 172.4 | (7.2) |
Cash & cash equivalents, beginning of period | 55.1 | 34.5 | 77.1 | 86.2 |
Cash & cash equivalents, end of period | 249.5 | 79 | 249.5 | 79 |
Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (14.1) | (12.2) | (16.5) | (16.4) |
Financing Activities | ||||
Intercompany dividends | 14.1 | 12.2 | 16.5 | 16.4 |
Net cash provided by (used in) financing activities | 14.1 | 12.2 | 16.5 | 16.4 |
Cott Corporation [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (0.3) | 29.3 | (137.1) | 33.7 |
Investing Activities | ||||
Acquisition, net of cash received | 0.5 | (42.7) | ||
Additions to property, plant & equipment | (0.5) | (0.2) | (0.9) | (0.5) |
Additions to intangibles and other assets | (0.1) | |||
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (2.8) | (0.2) | (46.5) | (0.5) |
Financing Activities | ||||
Borrowings under ABL | 57.2 | 144.8 | ||
Payments under ABL | (88.9) | (147.7) | ||
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (9) | (18) | ||
Dividends paid to common shareowners | (7.4) | (14.7) | ||
Net cash provided by (used in) financing activities | 181 | (15.3) | 345.5 | (24.9) |
Effect of exchange rate changes on cash | (0.2) | (0.3) | (0.1) | (0.7) |
Net increase (decrease) in cash & cash equivalents | 177.7 | 13.5 | 161.8 | 7.6 |
Cash & cash equivalents, beginning of period | 4.9 | 0.3 | 20.8 | 6.2 |
Cash & cash equivalents, end of period | 182.6 | 13.8 | 182.6 | 13.8 |
DSS Group Inc [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 29.6 | 20.6 | 55.7 | 21.2 |
Investing Activities | ||||
Acquisition, net of cash received | (2.3) | (0.5) | (3.5) | (0.5) |
Additions to property, plant & equipment | (20.8) | (20.4) | (37.6) | (38.8) |
Additions to intangibles and other assets | (0.6) | (0.1) | (1.1) | (1.9) |
Proceeds from sale of property, plant & equipment and sale-leaseback | 14.2 | 0.1 | 14.2 | |
Net cash (used in) provided by investing activities | (23.7) | (6.8) | (42.1) | (27) |
Financing Activities | ||||
Net increase (decrease) in cash & cash equivalents | 5.9 | 13.8 | 13.6 | (5.8) |
Cash & cash equivalents, beginning of period | 20.5 | 14.8 | 12.8 | 34.4 |
Cash & cash equivalents, end of period | 26.4 | 28.6 | 26.4 | 28.6 |
Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 67.2 | 24.5 | 156.9 | 20.9 |
Investing Activities | ||||
Additions to property, plant & equipment | (11.6) | (8.9) | (23.6) | (17.5) |
Additions to intangibles and other assets | (0.4) | (2.1) | (0.3) | |
Proceeds from sale of property, plant & equipment and sale-leaseback | 0.2 | 25.9 | 2.8 | 26.3 |
Net cash (used in) provided by investing activities | (11.8) | 17 | (22.9) | 8.5 |
Financing Activities | ||||
Payments of long-term debt | (0.3) | (0.9) | (1.3) | (1.4) |
Borrowings under ABL | 66.7 | 654.1 | 476.3 | 748.9 |
Payments under ABL | (98.8) | (674.4) | (598.3) | (777.2) |
Financing fees | (0.2) | (0.2) | ||
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Intercompany dividends | (13) | (2.2) | (13) | (4.3) |
Net cash provided by (used in) financing activities | (45.4) | (26.1) | (136.3) | (36.7) |
Effect of exchange rate changes on cash | (1.8) | 0.6 | (2.9) | (0.1) |
Net increase (decrease) in cash & cash equivalents | 8.2 | 16 | (5.2) | (7.4) |
Cash & cash equivalents, beginning of period | 25 | 14.8 | 38.4 | 38.2 |
Cash & cash equivalents, end of period | 33.2 | 30.8 | 33.2 | 30.8 |
Non-Guarantor Subsidiaries [Member] | Cott Corporation, DSS, Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 5.2 | 13.5 | 9.9 | 15.2 |
Investing Activities | ||||
Additions to property, plant & equipment | (0.3) | (0.4) | (0.6) | (0.4) |
Net cash (used in) provided by investing activities | (0.3) | (0.4) | (0.6) | (0.4) |
Financing Activities | ||||
Payments of long-term debt | (0.1) | (0.2) | (0.2) | (0.5) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Intercompany dividends | (1.1) | (10) | (3.5) | (12.1) |
Net cash provided by (used in) financing activities | (2.2) | (11.8) | (7) | (16.2) |
Effect of exchange rate changes on cash | (0.1) | (0.1) | (0.1) | (0.2) |
Net increase (decrease) in cash & cash equivalents | 2.6 | 1.2 | 2.2 | (1.6) |
Cash & cash equivalents, beginning of period | 4.7 | 4.6 | 5.1 | 7.4 |
Cash & cash equivalents, end of period | $ 7.3 | $ 5.8 | $ 7.3 | $ 5.8 |
Guarantor Subsidiaries (Cott 72
Guarantor Subsidiaries (Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Additional Information (Detail) | 6 Months Ended |
Jul. 02, 2016Subsidiary | |
2022 and 2020 Notes [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Number of non wholly owned guaranteed subsidiaries | 0 |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage | 100.00% |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage | 100.00% |
Guarantor Subsidiaries (Cott 73
Guarantor Subsidiaries (Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | $ 765 | $ 779.8 | $ 1,463.4 | $ 1,489.6 |
Cost of sales | 512.4 | 539.2 | 996.8 | 1,047.7 |
Gross profit | 252.6 | 240.6 | 466.6 | 441.9 |
Selling, general and administrative expenses | 202.1 | 190.2 | 399.1 | 378.7 |
(Gain) loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Acquisition and integration expenses | 11.7 | 4.1 | 13.1 | 8.8 |
Operating (loss) income | 36.6 | 46.1 | 51.3 | 52.8 |
Other expense (income), net | 3 | 1 | 0.8 | (9.4) |
Interest expense, net | 27 | 27.9 | 54.8 | 55.6 |
Income (loss) before income taxes | 6.6 | 17.2 | (4.3) | 6.6 |
Income tax expense (benefit) | (2.3) | (1.1) | (11.3) | (10.5) |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 765 | 779.8 | 1,463.4 | 1,489.6 |
Cost of sales | 512.4 | 539.2 | 996.8 | 1,047.7 |
Gross profit | 252.6 | 240.6 | 466.6 | 441.9 |
Selling, general and administrative expenses | 202.1 | 190.2 | 399.1 | 378.7 |
(Gain) loss on disposal of property, plant & equipment, net | 2.2 | 0.2 | 3.1 | 1.6 |
Acquisition and integration expenses | 11.7 | 4.1 | 13.1 | 8.8 |
Operating (loss) income | 36.6 | 46.1 | (51.3) | (52.8) |
Other expense (income), net | 3 | 1 | 0.8 | (9.4) |
Interest expense, net | 27 | 27.9 | 54.8 | 55.6 |
Income (loss) before income taxes | 6.6 | 17.2 | (4.3) | 6.6 |
Income tax expense (benefit) | 2.3 | (1.1) | (11.3) | (10.5) |
Net income | 8.9 | 18.3 | 7 | 17.1 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Net income (loss) attributed to Cott Corporation | 7.4 | 2.2 | 4.1 | (3.8) |
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | (14.7) | (19.9) | (28.5) | (30.1) |
Cost of sales | (14.7) | (19.9) | (28.5) | (30.1) |
Equity income | (18.4) | (15.2) | (16.9) | (4.4) |
Net income | (18.4) | (15.2) | (16.9) | (4.4) |
Net income (loss) attributed to Cott Corporation | (18.4) | (15.2) | (16.9) | (4.4) |
Comprehensive (loss) income attributed to Cott Corporation | (78.5) | (52.1) | (101.5) | (9.4) |
Cott Corporation [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 48.2 | 46.9 | 82 | 76.9 |
Cost of sales | 38.9 | 38.4 | 68.6 | 65.4 |
Gross profit | 9.3 | 8.5 | 13.4 | 11.5 |
Selling, general and administrative expenses | 16.8 | 4.9 | 22.3 | 10.4 |
Operating (loss) income | (7.5) | 3.6 | 8.9 | (1.1) |
Other expense (income), net | 1.8 | 0.7 | 0.2 | (9.8) |
Intercompany interest (income) expense, net | (1.9) | (4.9) | ||
Interest expense, net | 0.2 | 0.4 | 0.1 | |
Income (loss) before income taxes | (9.5) | 4.8 | (9.5) | 15.7 |
Income tax expense (benefit) | 1.8 | 3 | ||
Equity income | 16.9 | 13.6 | 13.6 | 1.4 |
Net income | 7.4 | 16.6 | 4.1 | 14.1 |
Less: Foreign exchange impact on redemption of preferred shares | 12 | 12 | ||
Net income (loss) attributed to Cott Corporation | 7.4 | 2.2 | 4.1 | (3.8) |
Comprehensive (loss) income attributed to Cott Corporation | (4.6) | 24.4 | (10.5) | (7.4) |
Cott Corporation [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 1.8 | 4.5 | ||
Cott Corporation [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Non-convertible Preferred Shares [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Less: Accumulated dividends on convertible preferred shares | 0.6 | 1.4 | ||
Cott Beverages Inc. [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 191.3 | 197.1 | 360.2 | 367.1 |
Cost of sales | 158.3 | 164.9 | 304.3 | 310.7 |
Gross profit | 33 | 32.2 | 55.9 | 56.4 |
Selling, general and administrative expenses | 15.8 | 24.6 | 43.9 | 48.4 |
(Gain) loss on disposal of property, plant & equipment, net | 0.2 | (0.7) | 0.5 | (0.4) |
Acquisition and integration expenses | 10.7 | 0.5 | 11 | 2 |
Operating (loss) income | 6.3 | 7.8 | (0.5) | (6.4) |
Other expense (income), net | 0.1 | |||
Intercompany interest (income) expense, net | (11.3) | (13.3) | (22.7) | (25.5) |
Interest expense, net | 19.5 | 20.2 | 39.6 | 40.3 |
Income (loss) before income taxes | (2) | 0.9 | (16.4) | (8.4) |
Income tax expense (benefit) | 1.6 | (1.9) | (7.2) | (6.5) |
Equity income | 1.5 | 1.6 | 3 | 3 |
Net income | 1.1 | 4.4 | (6.2) | 1.1 |
Net income (loss) attributed to Cott Corporation | 1.1 | 4.4 | (6.2) | 1.1 |
Comprehensive (loss) income attributed to Cott Corporation | (0.1) | 26.5 | (7.5) | 3.7 |
Guarantor Subsidiaries [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 505 | 517.4 | 986 | 1,006 |
Cost of sales | 301.2 | 324.9 | 600.8 | 644.9 |
Gross profit | 203.8 | 192.5 | 385.2 | 361.1 |
Selling, general and administrative expenses | 166.5 | 157.7 | 327.2 | 313.8 |
(Gain) loss on disposal of property, plant & equipment, net | 2 | 0.9 | 2.6 | 2 |
Acquisition and integration expenses | 1 | 3.6 | 2.1 | 6.8 |
Operating (loss) income | 34.3 | 30.3 | (53.3) | (38.5) |
Other expense (income), net | 1 | 0.4 | 0.5 | 0.4 |
Intercompany interest (income) expense, net | 11.3 | 15.2 | 22.7 | 30.4 |
Interest expense, net | 7.3 | 7.7 | 14.8 | 15.2 |
Income (loss) before income taxes | 14.7 | 7 | 15.3 | (7.5) |
Income tax expense (benefit) | 0.7 | (1.1) | (4.2) | (7.2) |
Equity income | 0.3 | |||
Net income | 15.4 | 8.1 | 19.8 | (0.3) |
Net income (loss) attributed to Cott Corporation | 15.4 | 8.1 | 19.8 | (0.3) |
Comprehensive (loss) income attributed to Cott Corporation | 74.6 | 21.4 | 105.6 | 0.9 |
Non-Guarantor Subsidiaries [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue, net | 35.2 | 38.3 | 63.7 | 69.7 |
Cost of sales | 28.7 | 30.9 | 51.6 | 56.8 |
Gross profit | 6.5 | 7.4 | 12.1 | 12.9 |
Selling, general and administrative expenses | 3 | 3 | 5.7 | 6.1 |
Operating (loss) income | 3.5 | 4.4 | (6.4) | (6.8) |
Other expense (income), net | 0.1 | (0.1) | 0.1 | |
Income (loss) before income taxes | 3.4 | 4.5 | 6.3 | 6.8 |
Income tax expense (benefit) | 0.1 | 0.1 | 0.2 | |
Net income | 3.4 | 4.4 | 6.2 | 6.6 |
Less: Net income attributable to non-controlling interests | 1.5 | 1.7 | 2.9 | 3 |
Net income (loss) attributed to Cott Corporation | 1.9 | 2.7 | 3.3 | 3.6 |
Comprehensive (loss) income attributed to Cott Corporation | $ 4 | $ 4.2 | $ 3.4 | $ 4.8 |
Guarantor Subsidiaries (Cott 74
Guarantor Subsidiaries (Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | $ 249.5 | $ 55.1 | $ 77.1 | $ 79 | $ 34.5 | $ 86.2 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 339.5 | 293.3 | ||||
Income taxes recoverable | 0.9 | 1.6 | ||||
Inventories | 247.1 | 249.4 | ||||
Prepaid expenses and other assets | 24.1 | 17.2 | ||||
Total current assets | 1,364.2 | 638.6 | ||||
Property, plant & equipment, net | 770.2 | 769.8 | ||||
Goodwill | 777.4 | 759.6 | ||||
Intangibles and other assets, net | 690.4 | 711.7 | ||||
Deferred tax assets | 12.8 | 7.6 | ||||
Total assets | 3,615 | 2,887.3 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.6 | 3.4 | ||||
Accounts payable and accrued liabilities | 468 | 437.6 | ||||
Total current liabilities | 471.6 | 563 | ||||
Long-term debt | 2,013.3 | 1,525.4 | ||||
Deferred tax liabilities | 63.7 | 76.5 | ||||
Other long-term liabilities | 72.5 | 76.5 | ||||
Total liabilities | 2,621.1 | 2,241.4 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | 993.9 | 645.9 | 677 | 548.9 | ||
Total liabilities and equity | 3,615 | 2,887.3 | ||||
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 249.5 | 55.1 | 77.1 | 79 | 34.5 | 86.2 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 339.5 | 293.3 | ||||
Income taxes recoverable | 0.9 | 1.6 | ||||
Inventories | 247.1 | 249.4 | ||||
Prepaid expenses and other assets | 24.1 | 17.2 | ||||
Total current assets | 1,364.2 | 638.6 | ||||
Property, plant & equipment, net | 770.2 | 769.8 | ||||
Goodwill | 777.4 | 759.6 | ||||
Intangibles and other assets, net | 690.4 | 711.7 | ||||
Deferred tax assets | 12.8 | 7.6 | ||||
Total assets | 3,615 | 2,887.3 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3.6 | 3.4 | ||||
Accounts payable and accrued liabilities | 468 | 437.6 | ||||
Total current liabilities | 471.6 | 563 | ||||
Long-term debt | 2,013.3 | 1,525.4 | ||||
Deferred tax liabilities | 63.7 | 76.5 | ||||
Other long-term liabilities | 72.5 | 76.5 | ||||
Total liabilities | 2,621.1 | 2,241.4 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | 993.9 | 645.9 | ||||
Total liabilities and equity | 3,615 | 2,887.3 | ||||
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Accounts receivable, net of allowance | (179.3) | (163.1) | ||||
Income taxes recoverable | (0.7) | |||||
Total current assets | (180) | (163.1) | ||||
Deferred tax assets | (44.7) | (38.2) | ||||
Due from affiliates | (1,092.3) | (990.2) | ||||
Investments in subsidiaries | (1,968.8) | (1,726.1) | ||||
Total assets | (3,285.8) | (2,917.6) | ||||
Accounts payable and accrued liabilities | (180) | (163.1) | ||||
Total current liabilities | (180) | (163.1) | ||||
Deferred tax liabilities | (44.7) | (38.2) | ||||
Due to affiliates | (1,092.3) | (990.2) | ||||
Total liabilities | (1,317) | (1,191.5) | ||||
Equity | ||||||
Common shares, no par | (2,374.3) | (2,227) | ||||
Retained earnings (deficit) | 513.2 | 524 | ||||
Accumulated other comprehensive (loss) income | (107.7) | (23.1) | ||||
Total Cott Corporation equity | (1,968.8) | (1,726.1) | ||||
Total equity | (1,968.8) | (1,726.1) | ||||
Total liabilities and equity | (3,285.8) | (2,917.6) | ||||
Cott Corporation [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 182.6 | 4.9 | 20.8 | 13.8 | 0.3 | 6.2 |
Accounts receivable, net of allowance | 37.1 | 18.3 | ||||
Income taxes recoverable | 0.1 | |||||
Inventories | 15.1 | 13 | ||||
Prepaid expenses and other assets | 1.9 | 2.2 | ||||
Total current assets | 236.8 | 54.3 | ||||
Property, plant & equipment, net | 30.3 | 29.7 | ||||
Goodwill | 21.2 | 19.8 | ||||
Intangibles and other assets, net | 0.9 | 0.8 | ||||
Deferred tax assets | 12.6 | 7.4 | ||||
Due from affiliates | 366.4 | 400.1 | ||||
Investments in subsidiaries | 392 | 176.3 | ||||
Total assets | 1,060.2 | 688.4 | ||||
Accounts payable and accrued liabilities | 70.8 | 47.6 | ||||
Total current liabilities | 70.8 | 47.6 | ||||
Other long-term liabilities | 0.5 | 0.5 | ||||
Due to affiliates | 1.2 | 1 | ||||
Total liabilities | 72.5 | 49.1 | ||||
Equity | ||||||
Common shares, no par | 904.9 | 534.7 | ||||
Additional paid-in-capital | 54.6 | 51.2 | ||||
Retained earnings (deficit) | 119 | 129.6 | ||||
Accumulated other comprehensive (loss) income | (90.8) | (76.2) | ||||
Total Cott Corporation equity | 987.7 | 639.3 | ||||
Total equity | 987.7 | 639.3 | ||||
Total liabilities and equity | 1,060.2 | 688.4 | ||||
Cott Beverages Inc. [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 2.4 | 1 | 1 | 5.1 | 1.4 | 8.6 |
Accounts receivable, net of allowance | 82.8 | 63.3 | ||||
Income taxes recoverable | 0.6 | |||||
Inventories | 75.1 | 76.7 | ||||
Prepaid expenses and other assets | 6.7 | 4.6 | ||||
Total current assets | 167 | 146.2 | ||||
Property, plant & equipment, net | 156.9 | 163.3 | ||||
Goodwill | 4.5 | 4.5 | ||||
Intangibles and other assets, net | 78.6 | 79.2 | ||||
Deferred tax assets | 44.7 | 38.2 | ||||
Due from affiliates | 583.2 | 587.5 | ||||
Investments in subsidiaries | 847.3 | 847.3 | ||||
Total assets | 1,882.2 | 1,866.2 | ||||
Short-term borrowings | 122 | |||||
Current maturities of long-term debt | 3 | 2.6 | ||||
Accounts payable and accrued liabilities | 218.5 | 234.6 | ||||
Total current liabilities | 221.5 | 359.2 | ||||
Long-term debt | 1,134.6 | 1,134.1 | ||||
Other long-term liabilities | 19.9 | 20 | ||||
Due to affiliates | 141.6 | 1.6 | ||||
Total liabilities | 1,517.6 | 1,514.9 | ||||
Equity | ||||||
Common shares, no par | 728.4 | 701.5 | ||||
Retained earnings (deficit) | (345.8) | (333.5) | ||||
Accumulated other comprehensive (loss) income | (18) | (16.7) | ||||
Total Cott Corporation equity | 364.6 | 351.3 | ||||
Total equity | 364.6 | 351.3 | ||||
Total liabilities and equity | 1,882.2 | 1,866.2 | ||||
Guarantor Subsidiaries [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 57.2 | 44.5 | 50.2 | 54.3 | 28.2 | 64 |
Accounts receivable, net of allowance | 385.7 | 361.8 | ||||
Income taxes recoverable | 1.1 | 0.8 | ||||
Inventories | 150.5 | 154.1 | ||||
Prepaid expenses and other assets | 15.1 | 10.2 | ||||
Total current assets | 609.6 | 577.1 | ||||
Property, plant & equipment, net | 576.9 | 570.1 | ||||
Goodwill | 751.7 | 735.3 | ||||
Intangibles and other assets, net | 610 | 628.9 | ||||
Due from affiliates | 142.7 | 2.6 | ||||
Investments in subsidiaries | 729.5 | 702.5 | ||||
Total assets | 3,420.4 | 3,216.5 | ||||
Current maturities of long-term debt | 0.4 | 0.4 | ||||
Accounts payable and accrued liabilities | 335.2 | 310.2 | ||||
Total current liabilities | 335.6 | 310.6 | ||||
Long-term debt | 388.3 | 391.3 | ||||
Deferred tax liabilities | 108.4 | 114.7 | ||||
Other long-term liabilities | 50.9 | 54.9 | ||||
Due to affiliates | 923.2 | 959.4 | ||||
Total liabilities | 1,806.4 | 1,830.9 | ||||
Equity | ||||||
Common shares, no par | 1,606.1 | 1,486.9 | ||||
Retained earnings (deficit) | (108.7) | (132.1) | ||||
Accumulated other comprehensive (loss) income | 116.6 | 30.8 | ||||
Total Cott Corporation equity | 1,614 | 1,385.6 | ||||
Total equity | 1,614 | 1,385.6 | ||||
Total liabilities and equity | 3,420.4 | 3,216.5 | ||||
Non-Guarantor Subsidiaries [Member] | Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash & cash equivalents | 7.3 | $ 4.7 | 5.1 | $ 5.8 | $ 4.6 | $ 7.4 |
Restricted cash | 503.1 | |||||
Accounts receivable, net of allowance | 13.2 | 13 | ||||
Income taxes recoverable | 0.4 | 0.2 | ||||
Inventories | 6.4 | 5.6 | ||||
Prepaid expenses and other assets | 0.4 | 0.2 | ||||
Total current assets | 530.8 | 24.1 | ||||
Property, plant & equipment, net | 6.1 | 6.7 | ||||
Intangibles and other assets, net | 0.9 | 2.8 | ||||
Deferred tax assets | 0.2 | 0.2 | ||||
Total assets | 538 | 33.8 | ||||
Current maturities of long-term debt | 0.2 | 0.4 | ||||
Accounts payable and accrued liabilities | 23.5 | 8.3 | ||||
Total current liabilities | 23.7 | 8.7 | ||||
Long-term debt | 490.4 | |||||
Other long-term liabilities | 1.2 | 1.1 | ||||
Due to affiliates | 26.3 | 28.2 | ||||
Total liabilities | 541.6 | 38 | ||||
Equity | ||||||
Common shares, no par | 39.8 | 38.6 | ||||
Retained earnings (deficit) | (58.7) | (58.4) | ||||
Accumulated other comprehensive (loss) income | 9.1 | 9 | ||||
Total Cott Corporation equity | (9.8) | (10.8) | ||||
Non-controlling interests | 6.2 | 6.6 | ||||
Total equity | (3.6) | (4.2) | ||||
Total liabilities and equity | $ 538 | $ 33.8 |
Guarantor Subsidiaries (Cott 75
Guarantor Subsidiaries (Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries) - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | $ 87.6 | $ 75.7 | $ 68.9 | $ 74.6 |
Investing Activities | ||||
Acquisitions, net of cash received | (1.8) | (0.5) | (46.2) | (0.5) |
Additions to property, plant & equipment | (33.2) | (29.9) | (62.7) | (57.2) |
Additions to intangibles and other assets | (1) | (0.1) | (3.3) | (2.2) |
Proceeds from sale of property, plant & equipment | 0.2 | 40.1 | 2.9 | 40.5 |
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (38.6) | 9.6 | (112.1) | (19.4) |
Financing Activities | ||||
Payments of long-term debt | (0.4) | (1.1) | (1.5) | (1.9) |
Borrowings under ABL | 123.9 | 654.1 | 621.1 | 748.9 |
Payments under ABL | (187.7) | (674.4) | (746) | (777.2) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Financing fees | (0.2) | (0.2) | ||
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (7.4) | (9) | (14.7) | (18) |
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Net cash provided by (used in) financing activities | 147.5 | (41) | 218.7 | (61.4) |
Effect of exchange rate changes on cash | (2.1) | 0.2 | (3.1) | (1) |
Net increase (decrease) in cash & cash equivalents | 194.4 | 44.5 | 172.4 | (7.2) |
Cash & cash equivalents, beginning of period | 55.1 | 34.5 | 77.1 | 86.2 |
Cash & cash equivalents, end of period | 249.5 | 79 | 249.5 | 79 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 87.6 | 75.7 | 68.9 | 74.6 |
Investing Activities | ||||
Acquisitions, net of cash received | (1.8) | (0.5) | (46.2) | (0.5) |
Additions to property, plant & equipment | (33.2) | (29.9) | (62.7) | (57.2) |
Additions to intangibles and other assets | (1) | (0.1) | (3.3) | (2.2) |
Proceeds from sale of property, plant & equipment | 0.2 | 40.1 | 2.9 | 40.5 |
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (38.6) | 9.6 | (112.1) | (19.4) |
Financing Activities | ||||
Payments of long-term debt | (0.4) | (1.1) | (1.5) | (1.9) |
Borrowings under ABL | 123.9 | 654.1 | 621.1 | 748.9 |
Payments under ABL | (187.7) | (674.4) | (746) | (777.2) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Financing fees | (0.2) | (0.2) | ||
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (9) | (18) | ||
Dividends paid to common shareowners | (7.4) | (14.7) | ||
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Net cash provided by (used in) financing activities | 147.5 | (41) | 218.7 | (61.4) |
Effect of exchange rate changes on cash | (2.1) | 0.2 | (3.1) | (1) |
Net increase (decrease) in cash & cash equivalents | 194.4 | 44.5 | 172.4 | (7.2) |
Cash & cash equivalents, beginning of period | 55.1 | 34.5 | 77.1 | 86.2 |
Cash & cash equivalents, end of period | 249.5 | 79 | 249.5 | 79 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Elimination Entries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (14.1) | (12.2) | (16.5) | (16.4) |
Financing Activities | ||||
Intercompany dividends | 14.1 | 12.2 | 16.5 | 16.4 |
Net cash provided by (used in) financing activities | 14.1 | 12.2 | 16.5 | 16.4 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Cott Corporation [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (0.3) | 29.3 | (137.1) | 33.7 |
Investing Activities | ||||
Acquisitions, net of cash received | 0.5 | (42.7) | ||
Additions to property, plant & equipment | (0.5) | (0.2) | (0.9) | (0.5) |
Additions to intangibles and other assets | (0.1) | |||
Increase in restricted cash | (2.8) | (2.8) | ||
Net cash (used in) provided by investing activities | (2.8) | (0.2) | (46.5) | (0.5) |
Financing Activities | ||||
Borrowings under ABL | 57.2 | 144.8 | ||
Payments under ABL | (88.9) | (147.7) | ||
Issuance of common shares | 220.1 | 142.5 | 364.2 | 142.6 |
Preferred shares repurchased and cancelled | (148.8) | (148.8) | ||
Common shares repurchased and cancelled | (1.1) | (0.7) | ||
Dividends paid to common and preferred shareowners | (9) | (18) | ||
Dividends paid to common shareowners | (7.4) | (14.7) | ||
Net cash provided by (used in) financing activities | 181 | (15.3) | 345.5 | (24.9) |
Effect of exchange rate changes on cash | (0.2) | (0.3) | (0.1) | (0.7) |
Net increase (decrease) in cash & cash equivalents | 177.7 | 13.5 | 161.8 | 7.6 |
Cash & cash equivalents, beginning of period | 4.9 | 0.3 | 20.8 | 6.2 |
Cash & cash equivalents, end of period | 182.6 | 13.8 | 182.6 | 13.8 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Cott Beverages Inc. [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 46.8 | 9 | 145.8 | 25.9 |
Investing Activities | ||||
Additions to property, plant & equipment | (4.3) | (4.3) | (11) | (11.2) |
Additions to intangibles and other assets | (0.4) | (2.1) | (0.3) | |
Proceeds from sale of property, plant & equipment | 0.1 | 25.9 | 0.1 | 26.3 |
Net cash (used in) provided by investing activities | (4.6) | 21.6 | (13) | 14.8 |
Financing Activities | ||||
Payments of long-term debt | (0.3) | (0.9) | (1) | (1.3) |
Borrowings under ABL | 66.7 | 628.1 | 476.3 | 714 |
Payments under ABL | (98.8) | (645.5) | (598.3) | (748.3) |
Financing fees | (0.2) | (0.2) | ||
Intercompany dividends | (8.4) | (8.4) | (8.4) | (8.4) |
Net cash provided by (used in) financing activities | (40.8) | (26.9) | (131.4) | (44.2) |
Net increase (decrease) in cash & cash equivalents | 1.4 | 3.7 | 1.4 | (3.5) |
Cash & cash equivalents, beginning of period | 1 | 1.4 | 1 | 8.6 |
Cash & cash equivalents, end of period | 2.4 | 5.1 | 2.4 | 5.1 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 50 | 44.5 | 66.8 | 24.6 |
Investing Activities | ||||
Acquisitions, net of cash received | (2.3) | (0.5) | (3.5) | (0.5) |
Additions to property, plant & equipment | (28.1) | (25) | (50.2) | (45.1) |
Additions to intangibles and other assets | (0.6) | (0.1) | (1.1) | (1.9) |
Proceeds from sale of property, plant & equipment | 0.1 | 14.2 | 2.8 | 14.2 |
Net cash (used in) provided by investing activities | (30.9) | (11.4) | (52) | (33.3) |
Financing Activities | ||||
Payments of long-term debt | (0.3) | (0.1) | ||
Borrowings under ABL | 26 | 34.9 | ||
Payments under ABL | (28.9) | (28.9) | ||
Payment of deferred consideration for acquisitions | (2.5) | (2.5) | ||
Intercompany dividends | (4.6) | (2.2) | (4.6) | (4.3) |
Net cash provided by (used in) financing activities | (4.6) | (7.6) | (4.9) | (0.9) |
Effect of exchange rate changes on cash | (1.8) | 0.6 | (2.9) | (0.1) |
Net increase (decrease) in cash & cash equivalents | 12.7 | 26.1 | 7 | (9.7) |
Cash & cash equivalents, beginning of period | 44.5 | 28.2 | 50.2 | 64 |
Cash & cash equivalents, end of period | 57.2 | 54.3 | 57.2 | 54.3 |
Cott Corporation, CBI, Cott Guarantor Subsidiaries and our other non-guarantor subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 5.2 | 5.1 | 9.9 | 6.8 |
Investing Activities | ||||
Additions to property, plant & equipment | (0.3) | (0.4) | (0.6) | (0.4) |
Net cash (used in) provided by investing activities | (0.3) | (0.4) | (0.6) | (0.4) |
Financing Activities | ||||
Payments of long-term debt | (0.1) | (0.2) | (0.2) | (0.5) |
Distributions to non-controlling interests | (1) | (1.6) | (3.3) | (3.6) |
Intercompany dividends | (1.1) | (1.6) | (3.5) | (3.7) |
Net cash provided by (used in) financing activities | (2.2) | (3.4) | (7) | (7.8) |
Effect of exchange rate changes on cash | (0.1) | (0.1) | (0.1) | (0.2) |
Net increase (decrease) in cash & cash equivalents | 2.6 | 1.2 | 2.2 | (1.6) |
Cash & cash equivalents, beginning of period | 4.7 | 4.6 | 5.1 | 7.4 |
Cash & cash equivalents, end of period | $ 7.3 | $ 5.8 | $ 7.3 | $ 5.8 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, € in Millions | Aug. 03, 2016USD ($)$ / shares | Aug. 02, 2016USD ($) | Aug. 02, 2016EUR (€) | Jul. 02, 2016$ / shares | Jul. 04, 2015$ / shares | Jul. 02, 2016$ / shares | Jul. 04, 2015$ / shares |
Subsequent Event [Line Items] | |||||||
Dividends declared per share | $ / shares | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 | |||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared per share | $ / shares | $ 0.06 | ||||||
Dividend declared date | Aug. 3, 2016 | ||||||
Dividend declared payable date | Sep. 7, 2016 | ||||||
Dividend payable, record date | Aug. 25, 2016 | ||||||
Subsequent Event [Member] | ABL Facility [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Revolving facility expiration period | 5 years | ||||||
Maximum borrowing capacity of revolving facility | $ 500,000,000 | ||||||
Additional available borrowing capacity available | 100,000,000 | ||||||
Subsequent Event [Member] | Eden [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business acquisitions, aggregate cash purchase price | $ 525,000,000 | € 470 | |||||
Subsequent Event [Member] | S&D Coffee, Inc. [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business acquisitions, aggregate cash purchase price | $ 355,000,000 |