Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Feb. 26, 2021 | Jun. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2021 | ||
Current Fiscal Year End Date | --01-02 | ||
Document Transition Report | false | ||
Entity File Number | 001-31410 | ||
Entity Registrant Name | PRIMO WATER CORP | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Tax Identification Number | 98-0154711 | ||
Entity Address, Address Line One | 4221 West Boy Scout Boulevard | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Tampa, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33607 | ||
Entity Address, Country | US | ||
City Area Code | 813 | ||
Local Phone Number | 313-1732 | ||
Title of 12(b) Security | Common Shares, no par value per share | ||
Trading Symbol | PRMW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,121.3 | ||
Entity Common Stock, Shares Outstanding (in shares) | 160,776,356 | ||
Documents Incorporated by Reference | Portions of our definitive proxy statement for the 2021 Annual and Special Meeting of Shareowners, to be filed within 120 days of January 2, 2021, are incorporated by reference in Part III. Such proxy statement, except for the parts therein which have been specifically incorporated by reference, shall not be deemed “filed” for the purposes of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000884713 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||
Revenue, net | $ 1,953.5 | $ 1,795.4 | $ 1,791 |
Cost of sales | 839.6 | 734.2 | 767.4 |
Gross profit | 1,113.9 | 1,061.2 | 1,023.6 |
Selling, general and administrative expenses | 1,006.6 | 962.2 | 955 |
Loss on disposal of property, plant and equipment, net | 10.6 | 7.6 | 8.7 |
Acquisition and integration expenses | 33.7 | 16.4 | 17.2 |
Goodwill and intangible asset impairment charges | 115.2 | 0 | 0 |
Operating (loss) income | (52.2) | 75 | 42.7 |
Other expense (income), net | 18.7 | 3.7 | (42) |
Interest expense, net | 81.6 | 77.6 | 77.6 |
(Loss) income from continuing operations before income taxes | (152.5) | (6.3) | 7.1 |
Income tax expense (benefit) | 4.3 | 4.5 | (8.3) |
Net (loss) income from continuing operations | (156.8) | (10.8) | 15.4 |
Net income from discontinued operations, net of income taxes (Note 2) | 25.1 | 13.7 | 368.1 |
Net (loss) income | (131.7) | 2.9 | 383.5 |
Less: Net income attributable to non-controlling interests - discontinued operations | 0 | 0 | 0.6 |
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ (131.7) | $ 2.9 | $ 382.9 |
Basic: | |||
Continuing operations (In USD per share) | $ (1.01) | $ (0.08) | $ 0.11 |
Discontinued operations (In USD per share) | 0.16 | 0.10 | 2.64 |
Net (loss) income (In USD per share) | (0.85) | 0.02 | 2.75 |
Diluted: | |||
Continuing operations (In USD per share) | (1.01) | (0.08) | 0.11 |
Discontinued operations (In USD per share) | 0.16 | 0.10 | 2.60 |
Net (loss) income (In USD per share) | $ (0.85) | $ 0.02 | $ 2.71 |
Weighted average common shares outstanding (in thousands) | |||
Basic (in shares) | 155,446 | 135,224 | 139,097 |
Diluted (in shares) | 155,446 | 135,224 | 141,436 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (131.7) | $ 2.9 | $ 383.5 | |
Other comprehensive (loss) income: | ||||
Currency translation adjustment | (6.9) | 13.6 | (16.1) | |
Pension benefit plan, net of tax | [1],[2] | (0.1) | (1.3) | 17.1 |
(Loss) income on derivative instruments, net of tax | [3],[4] | (11.2) | 20.9 | (8.3) |
Total other comprehensive (loss) income | (18.2) | 33.2 | (7.3) | |
Comprehensive (loss) income | (149.9) | 36.1 | 376.2 | |
Less: Comprehensive income attributable to non-controlling interests | 0 | 0 | 0.6 | |
Comprehensive (loss) income attributable to Primo Water Corporation | $ (149.9) | $ 36.1 | $ 375.6 | |
[1] | Net of $3.6 million of associated tax impact that resulted in an increase to the gain on sale of discontinued operations for the year ended December 29, 2018. | |||
[2] | Net of the effect of $0.2 million tax benefit and $0.1 million tax expense for the years ended December 28, 2019 and December 29, 2018, respectively. | |||
[3] | Net of $1.3 million of associated tax impact that resulted in a decrease to the gain on sale of discontinued operations for the year ended January 2, 2021. | |||
[4] | Net of the effect of $3.0 million tax benefit, $6.8 million tax expense and $2.5 million tax benefit for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Tax Impact | $ 1.3 | $ 3.6 | |
Tax benefit (expense) | $ 0.2 | (0.1) | |
Derivative instruments, tax expense (benefit) | $ (3) | $ 6.8 | $ (2.5) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Current assets | ||
Cash and cash equivalents | $ 115.1 | $ 156.9 |
Accounts receivable, net of allowance of $20.7 ($8.8 as of December 28, 2019) | 222.3 | 216.7 |
Inventories | 83.8 | 62.9 |
Prepaid expenses and other current assets | 21.3 | 19.1 |
Current assets of discontinued operations | 0 | 186.7 |
Total current assets | 442.5 | 642.3 |
Property, plant and equipment, net | 685.6 | 558.1 |
Operating lease right-of-use-assets | 180.6 | 185.7 |
Goodwill | 1,284.3 | 1,047.5 |
Intangible assets, net | 987.6 | 597 |
Other long-term assets, net | 24.1 | 20.5 |
Long-term assets of discontinued operations | 0 | 339.8 |
Total assets | 3,604.7 | 3,390.9 |
Current liabilities | ||
Short-term borrowings | 107.7 | 92.4 |
Current maturities of long-term debt | 17.9 | 6.9 |
Accounts payable and accrued liabilities | 387.7 | 370.6 |
Current operating lease obligations | 35.5 | 36.5 |
Current liabilities of discontinued operations | 0 | 101.2 |
Total current liabilities | 548.8 | 607.6 |
Long-term debt | 1,345.1 | 1,259.1 |
Operating lease obligations | 148 | 155.2 |
Deferred tax liabilities | 148.1 | 90.6 |
Other long-term liabilities | 67.8 | 58.7 |
Long-term liabilities of discontinued operations | 0 | 53.5 |
Total liabilities | 2,257.8 | 2,224.7 |
Commitments and contingencies - Note 20 | ||
Equity | ||
Common shares, no par value - 160,406,464 (December 28, 2019 - 134,803,211) shares issued | 1,268 | 892.3 |
Additional paid-in-capital | 84.5 | 77.4 |
Retained earnings | 81.1 | 265 |
Accumulated other comprehensive loss | (86.7) | (68.5) |
Total Primo Water Corporation equity | 1,346.9 | 1,166.2 |
Total liabilities and equity | $ 3,604.7 | $ 3,390.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 20.7 | $ 8.8 |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, issued (in shares) | 160,406,464 | 134,803,211 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Cash flows from operating activities of continuing operations: | |||
Net (loss) income | $ (131.7) | $ 2.9 | $ 383.5 |
Net income from discontinued operations, net of income taxes | 25.1 | 13.7 | 368.1 |
Net (loss) income from continuing operations | (156.8) | (10.8) | 15.4 |
Adjustments to reconcile net (loss) income from continuing operations to cash flows from operating activities: | |||
Depreciation and amortization | 202.1 | 168.6 | 171.7 |
Amortization of financing fees | 3.5 | 3.5 | 3.5 |
Share-based compensation expense | 22.1 | 11.7 | 19.1 |
Provision (benefit) for deferred income taxes | 0.2 | (1.1) | (12.5) |
Loss (gain) on extinguishment of long-term debt | 19.7 | 0 | (7.1) |
(Gain) loss on sale of business | (0.6) | 6 | (6) |
Goodwill and intangible asset impairment charges | 115.2 | 0 | 0 |
Loss on disposal of property, plant and equipment, net | 10.6 | 7.6 | 8.7 |
Other non-cash items | (1.2) | (2.4) | (2.9) |
Change in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 14.2 | 13.9 | (10.8) |
Inventories | 1 | (5.4) | (0.2) |
Prepaid expenses and other current assets | 2.4 | 4.4 | (0.7) |
Other assets | (3.6) | 1.5 | (1) |
Accounts payable and accrued liabilities and other liabilities | (35.2) | 7.7 | 19.1 |
Net cash provided by operating activities from continuing operations | 193.6 | 205.2 | 196.3 |
Cash flows from investing activities of continuing operations: | |||
Acquisitions, net of cash received | (446.1) | (54.6) | (164) |
Additions to property, plant and equipment | (114) | (101.3) | (114.8) |
Additions to intangible assets | (9.3) | (8.8) | (12.9) |
Proceeds from sale of property, plant and equipment | 1.8 | 2.2 | 2.9 |
Proceeds from sale of business, net of cash sold | 0 | 50.5 | 12.8 |
Proceeds from sale of equity securities | 0 | 0 | 7.9 |
Other investing activities | 0.7 | 0.4 | 0 |
Net cash used in investing activities from continuing operations | (566.9) | (111.6) | (268.1) |
Cash flows from financing activities of continuing operations: | |||
Payments of long-term debt | (545.6) | (5) | (264.5) |
Issuance of long-term debt | 533.5 | 0 | 2.7 |
Payments on short-term borrowings | (334.7) | (64.2) | (17.4) |
Proceeds from short-term borrowings | 347.5 | 75.1 | 98.4 |
Premiums and costs paid upon extinguishment of long-term debt | (14.7) | 0 | (12.5) |
Issuance of common shares | 3.4 | 1.2 | 6.4 |
Common shares repurchased and canceled | (33.2) | (31.8) | (74.9) |
Financing fees | (11.2) | 0 | (1.5) |
Equity issuance fees | (1.1) | 0 | 0 |
Dividends paid to common and preferred shareholders | (39.6) | (32.5) | (33.4) |
Payment of contingent consideration for acquisitions | (1.2) | (0.3) | (2.8) |
Other financing activities | 5.9 | (7.9) | 2.9 |
Net cash used in financing activities from continuing operations | (91) | (65.4) | (296.6) |
Cash flows from discontinued operations: | |||
Operating activities of discontinued operations | (17.4) | 41.6 | (49.6) |
Investing activities of discontinued operations | 388.9 | (36.2) | 1,210.9 |
Financing activities of discontinued operations | (0.1) | (0.6) | (769.7) |
Net cash provided by discontinued operations | 371.4 | 4.8 | 391.6 |
Effect of exchange rate changes on cash | 2.5 | 1.7 | (10.3) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (90.4) | 34.7 | 12.9 |
Cash and cash equivalents and restricted cash, beginning of year | 205.5 | 170.8 | 157.9 |
Cash and cash equivalents and restricted cash, end of year | 115.1 | 205.5 | 170.8 |
Cash and cash equivalents and restricted cash of discontinued operations, end of year | 0 | 48.6 | 32.1 |
Cash and cash equivalents and restricted cash from continuing operations, end of year | 115.1 | 156.9 | 138.7 |
Supplemental Non-cash Investing and Financing Activities: | |||
Shares issued in connection with business combination | 377.6 | 0 | 0 |
Additions to property, plant and equipment through accounts payable and accrued liabilities and other liabilities | 12.5 | 14.2 | 11.6 |
Accrued deferred financing fees | 0.7 | 0 | 0 |
Dividends payable issued through accounts payable and other accrued liabilities | 0.3 | 0.1 | 0.3 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 87.2 | 74.6 | 68.9 |
Cash paid for income taxes, net | $ 8.1 | $ 6.7 | $ 8.6 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative effect of changes in accounting principle, net of taxes | Common Shares | Additional Paid-in-Capital | Retained Earnings (Accumulated deficit) | Retained Earnings (Accumulated deficit)Cumulative effect of changes in accounting principle, net of taxes | Accumulated Other Comprehensive Loss | Non-Controlling Interests | 2010 Equity Incentive Plan | 2010 Equity Incentive PlanCommon Shares | 2010 Equity Incentive PlanAdditional Paid-in-Capital |
Beginning Balance (in shares) at Dec. 30, 2017 | 139,489,000 | ||||||||||
Beginning Balance at Dec. 30, 2017 | $ 885.7 | $ 917.1 | $ 69.1 | $ (12.2) | $ (94.4) | $ 6.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 383.5 | 382.9 | 0.6 | ||||||||
Net current-period OCI | (7.3) | (7.3) | |||||||||
Common shares dividends | (33.7) | (33.7) | |||||||||
Share-based compensation | 17.4 | 17.4 | |||||||||
Common shares repurchased and canceled (in shares) | (4,981,000) | ||||||||||
Common shares repurchased and canceled | (74.9) | $ (36.7) | (38.2) | ||||||||
Common shares issued- Equity Incentive Plan (in shares) | 1,581,000 | ||||||||||
Common shares issued - Equity Incentive Plan | $ 5 | $ 17.4 | $ (12.4) | ||||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 20,000 | ||||||||||
Common shares issued - Dividend Reinvestment Plan | 0.3 | $ 0.3 | |||||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 86,000 | ||||||||||
Common shares issued - Employee Stock Purchase Plan | 1.1 | $ 1.3 | (0.2) | ||||||||
Distributions to non-controlling interests | (0.9) | (0.9) | |||||||||
Sale of subsidiary shares of non-controlling interests | (5.8) | (5.8) | |||||||||
Ending Balance (in shares) at Dec. 29, 2018 | 136,195,000 | ||||||||||
Ending Balance at Dec. 29, 2018 | 1,170.4 | $ 10.5 | $ 899.4 | 73.9 | 298.8 | $ 10.5 | (101.7) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 2.9 | 2.9 | |||||||||
Net current-period OCI | 33.2 | 33.2 | |||||||||
Common shares dividends | (32.6) | (32.6) | |||||||||
Share-based compensation | 12.4 | 12.4 | |||||||||
Common shares repurchased and canceled (in shares) | (2,270,000) | ||||||||||
Common shares repurchased and canceled | (31.8) | $ (17.2) | (14.6) | ||||||||
Common shares issued- Equity Incentive Plan (in shares) | 781,000 | ||||||||||
Common shares issued - Equity Incentive Plan | 0.1 | $ 8.8 | (8.7) | ||||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 3,000 | ||||||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 94,000 | ||||||||||
Common shares issued - Employee Stock Purchase Plan | $ 1.1 | $ 1.3 | (0.2) | ||||||||
Ending Balance (in shares) at Dec. 28, 2019 | 134,803,211 | 134,803,000 | |||||||||
Ending Balance at Dec. 28, 2019 | $ 1,166.2 | $ (3.6) | $ 892.3 | 77.4 | 265 | $ (3.6) | (68.5) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | (131.7) | (131.7) | |||||||||
Net current-period OCI | (18.2) | (18.2) | |||||||||
Common shares dividends | (38.9) | (38.9) | |||||||||
Share-based compensation | $ 19.8 | 19.8 | |||||||||
Common shares issued in connection with business combination and assumed vested awards, net of equity issuance costs of $1.1 million (in shares) | 26,497,000 | ||||||||||
Common shares issued in connection with business combination and assumed vested awards, net of equity issuance costs of $1.1 million | $ 379.4 | $ 376.5 | 2.9 | ||||||||
Common shares repurchased and canceled (in shares) | (2,857,000) | ||||||||||
Common shares repurchased and canceled | (33.2) | $ (23.5) | (9.7) | ||||||||
Common shares issued- Equity Incentive Plan (in shares) | 1,833,000 | ||||||||||
Common shares issued - Equity Incentive Plan | $ 5.9 | $ 21.2 | $ (15.3) | ||||||||
Common shares issued - Dividend Reinvestment Plan (in shares) | 1,000 | ||||||||||
Common shares issued - Dividend Reinvestment Plan | 0 | ||||||||||
Common shares issued - Employee Stock Purchase Plan (in shares) | 129,000 | ||||||||||
Common shares issued - Employee Stock Purchase Plan | $ 1.2 | $ 1.5 | (0.3) | ||||||||
Ending Balance (in shares) at Jan. 02, 2021 | 160,406,464 | 160,406,000 | |||||||||
Ending Balance at Jan. 02, 2021 | $ 1,346.9 | $ 1,268 | $ 84.5 | $ 81.1 | $ (86.7) | $ 0 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 29, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Common shares dividends (in USD per share) | $ 0.24 | |
Equity issuance costs | $ 1.1 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business On March 2, 2020, Cott Corporation completed the acquisition of Primo Water Corporation (“Legacy Primo” and such transaction, the “Legacy Primo Acquisition”). In connection with the closing of the Legacy Primo Acquisition, Cott Corporation changed its corporate name to Primo Water Corporation ( “Primo”) and its ticker symbol on the New York Stock Exchange and Toronto Stock Exchange to “PRMW”. The Legacy Primo Acquisition is consistent with our strategy of transitioning to a pure-play water solutions provider. As used herein, “Primo,” “the Company,” “our Company,” “Primo Water Corporation,” “we,” “us,” or “our” refers to Primo Water Corporation, together with its consolidated subsidiaries. Primo is a leading pure-play water solutions provider in North America, Europe and Israel. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration, which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer’s door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position . Primo's water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association in North America as well as with Watercoolers Europe, which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection. In the third quarter of 2020, our U.S. operations achieved a carbon neutral certification under the Carbon Neutral Protocol, an international standard administered by Natural Capital Partners. This certification is in addition to the certifications in our European operations where we have maintained carbon neutrality for the past nine |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation These Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) using the U.S. dollar as the reporting currency, as the majority of our business and the majority of our shareowners are in the United States. Our fiscal year is based on either a 52- or 53- week period ending on the Saturday closest to December 31. For the fiscal year ended January 2, 2021, we had 53- weeks of activity, compared to 52- weeks of activity for the fiscal years ended December 28, 2019 and December 29, 2018. We estimate the additional week contributed $19.4 million of additional revenue and $3.9 million of additional operating income for the fiscal year ended January 2, 2021. One of our subsidiaries uses a calendar year-end which differs from the Company’s 52- or 53- week fiscal year end. Differences arising from the use of the different fiscal year ends were not deemed material for the fiscal years ended January 2, 2021, December 28, 2019 or December 29, 2018. Basis of Consolidation The Consolidated Financial Statements include our accounts, our wholly-owned and majority-owned subsidiaries that we control. All intercompany transactions and accounts have been eliminated in consolidation. Changes in Presentation During the second quarter of 2020, we implemented a restructuring program intended to optimize synergies from the Company’s transition to a pure-play water company following the Legacy Primo Acquisition and, as a result, reorganized into two reporting segments: North America (which includes our DS Services of America, Inc. (“DSS”), Aquaterra Corporation (“Aquaterra”), Mountain Valley Spring Company (“Mountain Valley”) and Legacy Primo businesses) and Rest of World (which includes our Eden Springs Nederland B.V. (“Eden”), Aimia Foods Limited (“Aimia”), Decantae Mineral Water Limited (“Decantae”) and John Farrer & Company Limited (“Farrers”) businesses). Our corporate oversight function and other miscellaneous expenses are aggregated and included in the All Other category. Our segment reporting results have been recast to reflect these changes for all periods presented. Discontinued Operations On February 28, 2020, we completed the sale of our coffee, tea and extract solutions business, S. & D. Coffee, Inc. (“S&D”) for consideration of $405.0 million paid at closing in cash, with customary post-closing working capital adjustments, which were resolved in June 2020 by payment of 1.5 million from the Company to the purchasers of S&D. As a result of this transaction representing a strategic shift in our operations, the Company has reclassified the financial results of our discontinued operations to net income from discontinued operations, net of income taxes in the Consolidated Statements of Operations for the years ended December 28, 2019 and December 29, 2018. The assets and liabilities associated with S&D have been reflected as current and long-term assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of December 28, 2019. Cash flows from our discontinued operations are presented in the Consolidated Statements of Cash Flows for the years ended December 28, 2019 and December 29, 2018. The Notes to the Consolidated Financial Statements are presented on a continuing operations basis unless otherwise noted. In July 2017, we entered into a Share Purchase Agreement with Refresco Group B.V., a Dutch company (“Refresco”), pursuant to which we sold to Refresco, on January 30, 2018, our carbonated soft drinks and juice businesses and our Royal Crown International finished goods export business (collectively, the “Traditional Business” and such transaction, the “Traditional Business Divestiture”). The Traditional Business Divestiture was structured as a sale of the assets of our Canadian business and a sale of the stock of the operating subsidiaries engaged in the Traditional Business in the other jurisdictions after we completed an internal reorganization. The aggregate deal consideration was $1.25 billion, paid at closing in cash, with customary post-closing adjustments resolved in December 2018 by the payment of 7.9 million from the Company to Refresco. The sale of the Traditional Business represented a strategic shift and had a major effect on our operations and, therefore, the Traditional Business is presented herein as discontinued operations. The Traditional Business excludes our North America and Rest of World reporting segments, and our Cott Beverages LLC business. See Note 2 to the Consolidated Financial Statements for additional information on discontinued operations. Impact of the COVID-19 Pandemic The outbreak of the novel coronavirus (“COVID-19”) had a significant impact on our business, financial condition, results of operations and cash flows for the year ended January 2, 2021. In response to COVID-19, authorities in many of the markets in which we operate have implemented numerous measures to stall the spread of COVID-19, including travel bans and restrictions, quarantines, curfews, shelter in place orders, and business shutdowns. These measures have impacted and will continue to impact us, our customers, employees, distributors, suppliers and other third parties with whom we do business. There is considerable uncertainty regarding how these measures and future measures in response to the pandemic will impact our business in the future, including whether they will result in further changes in demand for our services and products, further increases in operating costs (whether as a result of changes to our supply chain or increases in employee costs or otherwise), and how they will further impact our supply chain, each or all of which can impact our ability to make, manufacture, distribute and sell our products. In addition, measures that impact our ability to access our offices, plants, warehouses, distribution centers or other facilities, or that impact the ability of our customers, employees, distributors, suppliers and other third parties to do the same, may impact the availability of our and their employees, many of whom are not able to perform their job functions remotely. In response to COVID-19, certain government authorities have enacted programs which provide various economic stimulus measures, including several tax provisions. Among the business tax provisions is the deferral of certain payroll and other tax remittances to future years and wage subsidies as reimbursement for a portion of certain furloughed employees’ salaries. During the year ended January 2, 2021, we received wage subsidies under these programs totaling $7.4 million. We review our eligibility for these programs for each qualifying period and account for such wage subsidies on an accrual basis when the conditions for eligibility are met. The Company has adopted an accounting policy to present wage subsidies as a reduction of selling, general and administrative (“SG&A”) expenses. In addition, deferred payroll and other taxes totaling $9.0 million were included in accounts payable and accrued liabilities and $7.5 million were included in other long-term liabilities on our Consolidated Balance Sheet as of January 2, 2021. During the year ended January 2, 2021, we recorded a total of $115.2 million of non-cash impairment charges related to goodwill and intangible assets. See goodwill and intangible asset impairment information below. The impairment charges were driven primarily by the impact of the COVID-19 pandemic and revised projections of future operating results. In addition, on June 11, 2020, we announced that our Board of Directors approved a plan intended to optimize synergies from the Company’s transition to a pure-play water company following the Legacy Primo Acquisition and to mitigate the negative financial and operational impacts of the COVID-19 pandemic, including implementing headcount reductions and furloughs in our North America and Rest of World reporting segments (“2020 Restructuring Plan”). When we implement these programs, we incur various charges, including severance, asset impairments, and other employment related costs. In connection with the 2020 Restructuring Plan, we expected to incur approximately $19.0 million in severance costs. We have revised this estimate to $10.5 million and all costs related to the 2020 Restructuring Plan have been recorded as of January 2, 2021. All severance costs incurred by the 2020 Restructuring Plan during the year ended January 2, 2021 are included in SG&A expenses on the Consolidated Statement of Operations. The following table summarizes restructuring charges for the year ended January 2, 2021: For the Year Ended (in millions of U.S. dollars) January 2, 2021 North America $ 2.7 Rest of World 7.8 Total $ 10.5 The following table summarizes our restructuring liability as of January 2, 2021, along with charges to costs and expenses and cash payments. We expect to pay the remaining restructuring liability in the first half of 2021. Restructuring Liability (in millions of U.S. dollars) Balance at December 28, 2019 Charges to Costs and Expenses Cash Payments Balance at January 2, 2021 North America $ — $ 2.7 $ (2.7) $ — Rest of World — 7.8 (7.5) 0.3 Total $ — $ 10.5 $ (10.2) $ 0.3 Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Consolidated Financial Statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, realization of deferred income tax assets, the resolution of tax contingencies and projected benefit plan obligations. Revenue Recognition We recognize revenue, net of sales returns, when ownership passes to customers for products manufactured in our own plants and/or by third-parties on our behalf, and when prices to our customers are fixed or determinable and collection is reasonably assured. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue. Although we occasionally accept returns of products from our customers, historically returns have not been material. We also recognize rental income on filtration, brewers and dispensing equipment at customer locations based on the terms of the related rental agreements, which are generally measured based on 28-day periods. Amounts billed to customers for rental in future periods are deferred and included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. Sales Incentives We participate in various incentive programs with our customers, including volume-based incentives, contractual rebates and promotional allowances. Volume incentives are based on our customers achieving volume targets for a period of time. Volume incentives and contractual rebates are deducted from revenue and accrued as the incentives are earned and are based on management’s estimate of the total the customer is expected to earn and claim. Promotional allowances are accrued at the time of revenue recognition and are deducted from revenue based on either the volume shipped or the volume sold at the retailer location, depending on the terms of the allowance. We regularly review customer sales forecasts to ensure volume targets will be met and adjust incentive accruals and revenues accordingly. Cost of Sales We record costs associated with the manufacturing of our products in cost of sales. Shipping and handling costs incurred to store, prepare and move products between production facilities or from production facilities to branch locations or storage facilities are recorded in cost of sales. Shipping and handling costs incurred to deliver products from our North America and Rest of World reporting segments branch locations to the end-user consumer of those products are recorded in selling, general and administrative (“SG&A”) expenses. All other costs incurred in shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A were $441.4 million, $479.3 million, and $461.7 million for the years ended January 2, 2021, December 28, 2019, and December 29, 2018, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. Selling, General and Administrative Expenses We record all other expenses not charged to production as SG&A expenses. Advertising costs are expensed at the commencement of an advertising campaign and are recognized as a component of SG&A expenses. Advertising costs expensed were approximately $21.2 million, $22.5 million, and $23.0 million for the years ended January 2, 2021, December 28, 2019, and December 29, 2018, respectively. Share-Based Compensation We have in effect equity incentive plans under which Time-based RSUs, Performance-based RSUs, non-qualified stock options and director share awards have been granted (as such terms are defined in Note 9 of the Consolidated Financial Statements). Share-based compensation expense for all share-based compensation awards is based on the grant-date fair value. We recognized these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years, and account for forfeitures when they occur. The fair value of the Company’s Time-based RSUs, Performance-based RSUs and director share awards are based on the closing market price of its common shares on the date of grant as stated on the NYSE. We estimate the fair value of non-qualified options as of the date of grant using the Black-Scholes option pricing model. This model considers, among other factors, the expected life of the award, the expected volatility of the Company’s share price, and expected dividends. The Company records share-based compensation expense in SG&A expenses. All excess tax benefits and tax deficiencies related to share-based compensation are recognized in results of operations at settlement or expiration of the award. The excess tax benefit or deficiency is calculated as the difference between the grant date price and the price of our common shares on the vesting or exercise date. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities not exceeding three months at the time of purchase. The fair values of our cash and cash equivalents approximate the amounts shown on our Consolidated Balance Sheets due to their short-term nature. Accounts Receivable, Net of Allowance for Credit Losses All trade accounts receivable are uncollected amounts owed to us from transactions with our North America and Rest of World customers. Trade accounts receivable represent amounts billed to customers and not yet collected, and are presented net of allowance for credit losses. We estimate an allowance for credit losses based on historical loss experience, adverse situations that may affect a customer's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Customer demographic, such as large commercial customers as compared to small businesses or individual customers, and the customer's geographic market are also considered when estimating credit losses. Historical loss experience was based on actual loss rates over a one year period. Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or net realizable value. Finished goods and work-in-process include the inventory costs of raw materials, direct labor and manufacturing overhead costs. As a result, we use an inventory reserve to adjust our inventory costs down to a net realizable value and to reserve for estimated obsolescence of both raw materials and finished goods. Customer Deposits The Company generally collects deposits on multi-gallon bottles used by our residential and commercial water delivery customers. Such deposits are refunded only after customers return such bottles in satisfactory condition. The associated bottle deposit liability is estimated based on the number of water customers, average consumption and return rates and bottle deposit market rates. The Company analyzes these assumptions quarterly and adjusts the bottle deposit liability as necessary. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is allocated between cost of sales and SG&A expenses and is determined using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the remaining life of the lease or useful life of the asset, whichever is shorter. Maintenance and repairs are charged to operating expense when incurred. Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. At inception, we determine whether an agreement represents a lease and, at commencement, we evaluate each lease agreement to determine whether the lease constitutes an operating or financing lease. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. We adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02 - Leases as of December 30, 2018 using the cumulative-effect adjustment method and elected the package of practical expedients permitted in Accounting Standards Codification (“ASC”) Topic 842. Accordingly, we accounted for our existing leases as operating or finance leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 29, 2018) would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. We also elected to not separate lease components from non-lease components for all fixed payments. Adoption of ASU 2016-02 did not have a material impact on the Company’s cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of operating lease right-of-use assets and operating lease obligations on our balance sheet. Right-of-use lease assets represent our right to use the underlying asset for the lease term, and the operating lease obligation represents our commitment to make the lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with terms of one-year or less. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually. The following table summarizes our goodwill on a reporting segment basis as of January 2, 2021 and December 28, 2019: Reporting Segment (in millions of U.S. dollars) North America Rest of World All Other Total Balance December 29, 2018 Goodwill $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Accumulated impairment losses — — — — $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Goodwill acquired during the year 17.4 17.9 — 35.3 Measurement period adjustments (3.1) — — (3.1) Divestitures — — (4.5) (4.5) Foreign exchange 1.0 (7.3) — (6.3) Balance December 28, 2019 Goodwill 673.1 374.4 — 1,047.5 Accumulated impairment losses — — — — $ 673.1 $ 374.4 $ — $ 1,047.5 Goodwill acquired during the year 343.3 5.6 — 348.9 Measurement period adjustments (35.9) — — (35.9) Impairment losses — (104.1) — (104.1) Foreign exchange 1.6 26.3 — 27.9 Balance January 2, 2021 Goodwill 982.1 406.3 — 1,388.4 Accumulated impairment losses — (104.1) — (104.1) $ 982.1 $ 302.2 $ — $ 1,284.3 The Company operates through two operating segments: North America and Rest of World. These two operating segments are also reportable segments. We test goodwill for impairment at least annually on the first day of the fourth quarter, based on our reporting unit carrying values, calculated as total assets less non-interest bearing liabilities, as of the end of the third quarter, or more frequently if we determine a triggering event has occurred during the year. During the second quarter of 2020, given the general deterioration in economic and market conditions in which we operate arising from the COVID-19 pandemic, we identified a triggering event indicating possible impairment of goodwill and intangible assets, as further described below. We did not identify impairment of our property, plant and equipment, lease-related right-of-use assets, or long-lived assets. We evaluate goodwill for impairment on a reporting unit basis, which is an operating segment or a level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment can be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Our North America operating segment was determined to have three components: DSS, Mountain Valley, and Aquaterra. We have determined that DSS and Aquaterra have similar economic characteristics and have aggregated them as a single reporting unit for the purpose of testing goodwill for impairment (“DSSAqua”). Our Rest of World operating segment was determined to have four components: Eden, Aimia, Decantae, and Farrers, none of which have similar economic characteristics. For the purpose of testing goodwill for impairment in 2020, we have determined reporting units are DSSAqua, Mountain Valley, Eden, Aimia, Decantae, and Farrers. Due to the triggering event identified above arising from the impact of the COVID-19 pandemic, we first performed a qualitative assessment of goodwill to determine whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. Based on this qualitative assessment, we determined that it was more likely than not that the fair value of our Eden, Aimia, Decantae, and Farrers reporting units did not exceed their respective carrying values. As a result, we performed an interim quantitative impairment test as of June 27, 2020 on these reporting units. We determined the fair value of the reporting units being evaluated using a mix of the income approach (which is based on the discounted cash flows of the reporting unit) and the guideline public company approach. We weighted the income approach and the guideline public company approach at 50% each to determine the fair value of the reporting unit. We believe using a combination of these approaches provides a more accurate valuation because it incorporates the expected cash generation of the Company in addition to how a third-party market participant would value the reporting unit. As the business is assumed to continue in perpetuity, the discounted future cash flows includes a terminal value. Critical assumptions used in our valuation of the Eden reporting unit included the anticipated future cash flows, a weighted-average terminal revenue growth rate of 1.5% and a discount rate of 9.5%. Critical assumptions used in our valuation of the Aimia, Decantae, and Farrers reporting units included a weighted-average terminal revenue growth rate of 2.0% and a discount rate of 11.5%. The anticipated future cash flows assumption reflects projected revenue growth rates, SG&A expenses and capital expenditures. The terminal growth rate assumption incorporated into the discounted cash flow calculation reflects our long-term view of the market and industry, projected changes in the sale of our products, pricing of such products and operating profit margins. The discount rate was determined using various factors and sensitive assumptions, including bond yields, size premiums and tax rates. This rate was based on the weighted average cost of capital a market participant would use if evaluating the reporting unit as an investment. These assumptions are considered significant unobservable inputs and represent our best estimate of assumptions that market participants would use to determine the fair value of the respective reporting units. The key inputs into the discounted cash flow analysis were consistent with market data, where available, indicating that the assumptions used were in a reasonable range of observable market data. Based on the quantitative assessment including consideration of the sensitivity of the assumptions made and methods used to determine fair value, industry trends and other relevant factors, we noted that the estimated fair value of the Aimia reporting unit exceeded its carrying value by approximately 23.5%. Therefore, no goodwill impairment charge was recorded for the Aimia reporting unit. Based on the quantitative assessment including consideration of the sensitivity of the assumptions made and methods used to determine fair value, industry trends and other relevant factors, we determined that goodwill was impaired for the Eden, Decantae, and Farrers reporting units and recognized impairment charges of $103.3 million, $0.3 million and $0.5 million, respectively. These impairment charges are included in goodwill and intangible asset impairment charges in the Consolidated Statement of Operations for the year ended January 2, 2021. We had goodwill of $1,284.3 million on our Consolidated Balance Sheet at January 2, 2021, which represents amounts for the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units. For purposes of the 2020 annual test, we elected to perform a qualitative assessment for our DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units to assess whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management relied on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. Based on these factors, management concluded that it was more likely than not that the fair values of the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units were greater than their respective carrying amounts, including goodwill, indicating no impairment. Goodwill allocated to the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units as of January 2, 2021 are $966.1 million, $16.0 million, $246.3 million, $54.6 million, and $1.3 million, respectively. Each year during the fourth quarter, we re-evaluate the assumptions used in our assessments, such as revenue growth rates, SG&A expenses, capital expenditures and discount rates, to reflect any significant changes in the business environment that could materially affect the fair value of our reporting units. Based on the evaluations performed in 2020, we determined that the fair value of each of our reporting units exceeded their carrying amounts. Intangible Assets As of January 2, 2021, our intangible assets subject to amortization, net of accumulated amortization were $532.1 million, consisting principally of $485.2 million of customer relationships that arose from acquisitions, $24.3 million of software, and $12.8 million of patents. Customer relationships are typically amortized on an accelerated basis for the period over which we expect to receive the economic benefits. The customer relationship intangible assets acquired in our acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the estimated undiscounted after-tax cash flows. We review the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a loss of a significant customer. Our review of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in the intangible asset would result in either an impairment in the value of the intangible asset or an accelerated amortization of any remaining value and could lead to an impairment of the fixed assets that were used to service that customer. In 2020, we recorded $245.2 million in customer relationships acquired with the Legacy Primo Acquisition (as defined in Note 5 to the Consolidated Financial Statements). We did not record impairment charges for our intangible assets subject to amortization in 2020, 2019 or 2018. Our intangible assets with indefinite lives relate to trademarks acquired in the acquisition of Legacy Primo (the “Legacy Primo Trademarks”), trademarks acquired in the acquisition of DSS (the “DSS Trademarks”), trademarks acquired in the acquisition of Eden (the “Eden Trademarks”), trademarks acquired in the acquisition of Aquaterra (the “Aquaterra Trademarks”), trademarks acquired in the Mountain Valley Acquisition (the “Mountain Valley Trademarks”) and trademarks acquired in the Crystal Rock Acquisition (the “Crystal Rock Trademarks”). These assets have an aggregate net book value of $455.5 million as of January 2, 2021. There are no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. The life of the Legacy Primo Trademarks, DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks are considered to be indefinite and therefore these intangible assets are not amortized. Rather, they are tested for impairment at least annually or more frequently if we determine a triggering event has occurred during the year. We compare the carrying amount of the intangible asset to its fair value and when the carrying amount is greater than the fair value, we recognize an impairment loss. As a result of the triggering event described above arising from the impact of the COVID-19 pandemic, we performed recoverability tests on our intangible assets, primarily trademarks, within each of our reporting segments as of June 27, 2020. We assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of our trademarks with indefinite lives were less than their respective carrying |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jan. 02, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On February 28, 2020, the Company completed the sale of S&D to Westrock Coffee Company, LLC, a Delaware limited liability company (“Westrock”), pursuant to which Westrock acquired all of the issued and outstanding equity of S&D from the Company (S&D Divestiture”). The consideration was $405.0 million paid at closing in cash, with customary post-closing working capital adjustments, which were resolved in June 2020 by payment of $1.5 million from the Company to Westrock. The Company used the proceeds of the S&D Divestiture to finance a portion of the Legacy Primo Acquisition. See Note 5 to the Consolidated Financial Statements for additional information on the Legacy Primo Acquisition. On January 30, 2018, the Company completed the sale of the Traditional Business to Refresco. The Traditional Business Divestiture was structured as a sale of the assets of the Canadian business and a sale of the stock of the operating subsidiaries engaged in the Traditional Business in the other jurisdictions after the Company completed an internal reorganization. The aggregate deal consideration was $1.25 billion, paid at closing in cash, with customary post-closing adjustments, resolved in December 2018 by the payment of $7.9 million from the Company to Refresco. As of December 28, 2019, $12.4 million of the total sale proceeds were being held in escrow by a third-party escrow agent to secure potential indemnification claims. These funds are included in cash and cash equivalents on the Consolidated Balance Sheet. In July 2020, a settlement agreement was reached with Refresco. In exchange for a settlement of pending and future claims, $4.0 million of the escrow funds were released to Refresco and the remaining $8.4 million were released to us. In connection with the Traditional Business Divestiture, the Company and Refresco entered into a Transition Services Agreement pursuant to which the Company and Refresco provide certain services to each other for various service periods, with the longest service period being 18 months, including tax and accounting services, certain human resources services, communications systems and support, and insurance/risk management. Each party was compensated for services rendered as set forth in the Transition Services Agreement. All service periods under the Transition Services Agreement have expired. In addition, the Company and Refresco entered into certain Co-pack Manufacturing Agreements pursuant to which the Company and Refresco manufacture and supply certain beverage products for each other. Each party will be compensated for the products they supply as set forth in the Co-pack Manufacturing Agreements. The Co-pack Manufacturing Agreements have a term of 36 months. For the year ended December 28, 2019, the Company paid Refresco $0.7 million for the contract manufacture of beverage products and reimbursed Refresco $0.7 million for various operational expenses that were paid by Refresco on its behalf. For the year ended December 28, 2019, Refresco paid the Company $7.2 million for the contract manufacture of beverage products. For the year ended December 29, 2018, the Company paid Refresco $8.7 million for the contract manufacture of beverage products and reimbursed Refresco $47.2 million for various operational expenses that were paid by Refresco on its behalf. For the year ended December 29, 2018, Refresco paid the Company $45.5 million for the contract manufacture of beverage products. The major components of net income from discontinued operations, net of income taxes in the accompanying Consolidated Statements of Operations include the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Revenue, net 1 $ 97.1 $ 605.0 $ 698.8 Cost of sales 71.1 438.4 534.0 Operating (loss) income from discontinued operations (0.5) 15.4 18.1 Gain on sale of discontinued operations 53.7 — 427.9 Income from discontinued operations, before income taxes 53.1 15.7 419.5 Income tax expense 2, 3 28.0 2.0 51.4 Net income from discontinued operations, net of income taxes 25.1 13.7 368.1 Less: Net income attributable to non-controlling interests — — 0.6 Net income attributable to Primo Water Corporation – discontinued operations 4 $ 25.1 $ 13.7 $ 367.5 ______________________ 1 Includes related party sales to continuing operations of $1.0 million, $5.9 million and $5.7 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. 2 The Traditional Business Divestiture resulted in a taxable gain on sale in the U.S., which utilized a significant portion of the existing U.S. net operating loss carryforwards. As a result, the Company was in a net deferred tax liability position in the U.S. and thus a tax benefit of approximately $35.1 million related to a release of the U.S. valuation allowance was recorded in 2018 and is offsetting the overall income tax expense related to discontinued operations. The Traditional Business Divestiture resulted in a non-taxable gain on sale in the United Kingdom. No tax benefit resulted from the Traditional Business Divestiture related to the taxable loss on sale in Canada due to the Company's valuation allowance position. During 2019, $3.0 million of tax benefit was recorded related to the finalization of the U.S. tax gain calculation. 3 The S&D Divestiture resulted in tax expense of $28.5 million on the gain on sale in 2020 and utilized a significant portion of the existing U.S. net operating loss carryforwards. 4 Net income attributable to Primo Water Corporation - discontinued operations is inclusive of interest expense on short-term borrowings and debt required to be repaid or extinguished as part of divestiture of $3.4 million for the year ended December 29, 2018. Assets and liabilities of discontinued operations presented in the accompanying Consolidated Balance Sheet as of December 28, 2019 include the following: (in millions of U.S. dollars) December 28, 2019 ASSETS Cash and cash equivalents $ 48.6 Accounts receivable, net 62.6 Inventories 59.6 Prepaid expenses and other current assets 15.9 Current assets of discontinued operations 186.7 Property, plant and equipment, net 89.7 Operating lease right-of-use assets 17.5 Goodwill 128.2 Intangible assets, net 104.4 Long-term assets of discontinued operations $ 339.8 LIABILITIES Current maturities of long-term debt $ 0.5 Accounts payable and accrued liabilities 95.5 Current operating lease obligations 5.2 Current liabilities of discontinued operations 101.2 Long-term debt 1.1 Operating lease obligations 12.6 Deferred tax liabilities 36.8 Other long-term liabilities 3.0 Long-term liabilities of discontinued operations $ 53.5 Cash flows from discontinued operations included borrowings and payments under our previously existing asset-based lending credit facility of $262.4 million and $482.8 million, respectively, for the year ended December 29, 2018. |
Leases
Leases | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from one year to seven years, while our operating leases range from one year to 20 years, some of which may include options to extend the leases generally between one year and 10 years, and some of which may include options to terminate the leases within one year. The components of lease expense were as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Operating lease cost $ 49.0 $ 47.7 Short-term lease cost 8.0 3.0 Finance lease cost Amortization of right-of-use assets $ 11.7 $ 4.5 Interest on lease liabilities 3.5 1.2 Total finance lease cost $ 15.2 $ 5.7 Sublease income $ 0.7 $ 0.8 Supplemental cash flow information related to leases was as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 52.2 $ 47.2 Operating cash flows from finance leases 3.6 1.1 Financing cash flows from finance leases 10.5 3.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 29.5 $ 25.0 Finance leases 52.2 28.6 Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) January 2, 2021 December 28, 2019 Operating leases Operating lease right-of-use assets $ 180.6 $ 185.7 Current operating lease obligations 35.5 36.5 Operating lease obligations 148.0 155.2 Total operating lease obligations $ 183.5 $ 191.7 Financing leases Property, plant and equipment, net $ 71.0 $ 30.4 Current maturities of long-term debt 13.2 5.8 Long-term debt 58.3 23.6 Total finance lease obligations $ 71.5 $ 29.4 Weighted Average Remaining Lease Term January 2, 2021 December 28, 2019 Operating leases 7.6 years 8.7 years Finance leases 5.5 years 5.6 years Weighted Average Discount Rate Operating leases 6.1 % 6.2 % Finance leases 4.9 % 6.3 % Maturities of operating lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 45.4 2022 35.1 2023 30.5 2024 25.2 2025 20.6 Thereafter 81.0 Total lease payments 237.8 Less imputed interest (54.3) Present value of lease obligations $ 183.5 Maturities of finance lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 16.5 2022 15.5 2023 14.5 2024 12.7 2025 11.6 Thereafter 11.6 Total lease payments 82.4 Less imputed interest (10.9) Present value of lease obligations $ 71.5 During the fourth quarter of 2020, we entered into two building leases; the first with a 64 month term beginning in 2021 and the second with an 18 year term beginning in 2023. The total lease commitment for these two operating leases is approximately $28.8 million. |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from one year to seven years, while our operating leases range from one year to 20 years, some of which may include options to extend the leases generally between one year and 10 years, and some of which may include options to terminate the leases within one year. The components of lease expense were as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Operating lease cost $ 49.0 $ 47.7 Short-term lease cost 8.0 3.0 Finance lease cost Amortization of right-of-use assets $ 11.7 $ 4.5 Interest on lease liabilities 3.5 1.2 Total finance lease cost $ 15.2 $ 5.7 Sublease income $ 0.7 $ 0.8 Supplemental cash flow information related to leases was as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 52.2 $ 47.2 Operating cash flows from finance leases 3.6 1.1 Financing cash flows from finance leases 10.5 3.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 29.5 $ 25.0 Finance leases 52.2 28.6 Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) January 2, 2021 December 28, 2019 Operating leases Operating lease right-of-use assets $ 180.6 $ 185.7 Current operating lease obligations 35.5 36.5 Operating lease obligations 148.0 155.2 Total operating lease obligations $ 183.5 $ 191.7 Financing leases Property, plant and equipment, net $ 71.0 $ 30.4 Current maturities of long-term debt 13.2 5.8 Long-term debt 58.3 23.6 Total finance lease obligations $ 71.5 $ 29.4 Weighted Average Remaining Lease Term January 2, 2021 December 28, 2019 Operating leases 7.6 years 8.7 years Finance leases 5.5 years 5.6 years Weighted Average Discount Rate Operating leases 6.1 % 6.2 % Finance leases 4.9 % 6.3 % Maturities of operating lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 45.4 2022 35.1 2023 30.5 2024 25.2 2025 20.6 Thereafter 81.0 Total lease payments 237.8 Less imputed interest (54.3) Present value of lease obligations $ 183.5 Maturities of finance lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 16.5 2022 15.5 2023 14.5 2024 12.7 2025 11.6 Thereafter 11.6 Total lease payments 82.4 Less imputed interest (10.9) Present value of lease obligations $ 71.5 During the fourth quarter of 2020, we entered into two building leases; the first with a 64 month term beginning in 2021 and the second with an 18 year term beginning in 2023. The total lease commitment for these two operating leases is approximately $28.8 million. |
Revenue
Revenue | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueOur principal source of revenue is from bottled water delivery direct to customers primarily in North America and Europe and from providing multi-gallon purified bottled water, self-service refill drinking water and water dispensers through major retailers in North America for the years ended January 2, 2021, December 28, 2019 and December 29, 2018. Revenue is recognized, net of sales returns, when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We measure revenue based on the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. A performance obligation is a contractual promise to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when the customer receives the benefit of the performance obligation. Clients typically receive the benefit of our services as they are performed. Substantially all our client contracts require that we be compensated for services performed to date. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue and costs incurred by us for shipping and handling activities that are performed after a customer obtains control of the product are accounted for as fulfillment costs. In addition, we exclude from net revenue and cost of sales taxes assessed by governmental authorities on revenue-producing transactions. Although we occasionally accept returns of products from our customers, historically returns have not been material. Contract Estimates The nature of certain of the Company’s contracts give rise to variable consideration including cash discounts, volume-based rebates, point of sale promotions, and other promotional discounts to certain customers. For all promotional programs and discounts, the Company estimates the rebate or discount that will be granted to the customer and records an accrual upon invoicing. These estimated rebates or discounts are included in the transaction price of the Company’s contracts with customers as a reduction to net revenues and are included as accrued sales incentives in accounts payable and accrued liabilities in the Consolidated Balance Sheets. This methodology is consistent with the manner in which the Company historically estimated and recorded promotional programs and discounts. Accrued sales incentives were $9.9 million and $7.1 million at January 2, 2021 and December 28, 2019, respectively. We do not disclose the value of unsatisfied performance obligations for contracts (i) with an original expected length of one year or less or (ii) for which the Company recognizes revenue at the amount in which it has the right to invoice as the product is delivered. Contract Balances Contract liabilities relate primarily to advances received from the Company’s customers before revenue is recognized. These amounts are recorded as deferred revenue and are included in accounts payable and accrued liabilities in the Consolidated Balance Sheets. The advances are expected to be earned as revenue within one year of receipt. Deferred revenues at January 2, 2021 and December 28, 2019 were $11.7 million and $23.6 million, respectively. The amount of revenue recognized for the year ended January 2, 2021 that was included in the December 28, 2019 deferred revenue balance was $23.5 million. The Company does not have any material contract assets as of January 2, 2021 and December 28, 2019. Disaggregated Revenue In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment’s results of operations. Further disaggregation of net revenue to external customers by geographic area based on customer location is as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 United States $ 1,429.6 $ 1,210.0 $ 1,205.0 United Kingdom 142.2 172.0 173.2 Canada 64.1 67.0 64.1 All other countries 317.6 346.4 348.7 Total $ 1,953.5 $ 1,795.4 $ 1,791.0 |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 02, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Legacy Primo Acquisition On March 2, 2020, the Company completed the Legacy Primo Acquisition, adding North America’s leading single source provider of multi-gallon purified bottled water, self-service refill drinking water and water dispensers sold through major retailers to the Company’s catalog of residential and commercial bottled water delivery businesses in North America and Europe. Primo is a familiar name in sustainable water solutions that will help drive the visibility of our water businesses, moving us towards a pure-play water solutions company. The Legacy Primo Acquisition broadens our capabilities and our portfolio, creating new cross-selling opportunities and vertical integration across residential and commercial delivery, retail, filtration, refill and exchange services. Integrating Legacy Primo with our North America business will enable us to combine the expertise and innovation of these two growing companies with complementary business models. The integration gives us the ability to expand Legacy Primo’s products and services across our 21-country footprint. The Legacy Primo Acquisition was structured as an exchange offer to purchase all of the outstanding shares of common stock of Legacy Primo for per-share consideration of (i) $14.00 in cash, (ii) 1.0229 common shares plus cash in lieu of any fractional common share, or (iii) $5.04 in cash and 0.6549 common shares, at the election of Legacy Primo’s stockholders, subject to the proration procedures set forth in the merger agreement. Immediately following the consummation of the exchange offer, we indirectly acquired the remaining Legacy Primo shares through a merger between Legacy Primo and one of our wholly-owned subsidiaries. The total cash and stock consideration paid by us in the Legacy Primo Acquisition is summarized below: (in millions of U.S. dollars, except share and per share amounts) Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) $ 377.6 Cash to holders of Legacy Primo common stock 216.1 Cash paid to retire outstanding indebtedness on behalf of Legacy Primo 196.9 Settlement of pre-existing relationship 4.7 Fair value of replacement common share options and restricted stock units for Legacy Primo awards 2.9 Total consideration $ 798.2 The Legacy Primo Acquisition supported the Company's strategy of transitioning to a pure-play water solutions provider. The Company has accounted for this transaction as a business combination which requires that assets acquired and liabilities assumed be measured at their acquisition date fair values. The purchase price of $798.2 million has been allocated to the assets acquired and liabilities assumed based on management's estimates of their fair values as of the acquisition date. The excess of the adjusted purchase price over the aggregate fair values was recorded as goodwill. Measurement period adjustments recorded during the year ended January 2, 2021 included adjustments to property, plant and equipment and intangible assets based on results of the preliminary valuations, adjustments to operating and financing lease right-of-use assets and obligations based on a review of acquired leases, deferred tax adjustments related to the preliminary valuations, an adjustment to a note receivable existing at the acquisition date, as well as adjustments to inventory, prepaid expenses and other current assets, other assets, accounts payable and accrued liabilities, long-term debt and other long-term liabilities based on a review of their respective fair values as of the date of the Legacy Primo Acquisition. The measurement period adjustments did not have a material effect on our results of operations in prior periods. The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the purchase price allocation of the assets acquired and the liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.3 $ — $ 1.3 Accounts receivable 21.9 (0.3) $ 21.6 Inventory 12.7 5.7 $ 18.4 Prepaid expenses and other current assets 4.3 1.0 $ 5.3 Property, plant and equipment 119.0 (11.2) $ 107.8 Operating lease right-of-use-assets 4.9 (0.6) $ 4.3 Goodwill 337.4 (36.2) $ 301.2 Intangible assets 361.3 60.3 $ 421.6 Other assets 3.9 (3.5) $ 0.4 Current maturities of long-term debt (2.2) (0.1) $ (2.3) Accounts payable and accrued liabilities (41.6) (0.4) $ (42.0) Current operating lease obligations (1.8) 0.4 $ (1.4) Long-term debt (5.8) 0.2 $ (5.6) Operating lease obligations (3.1) 0.1 $ (3.0) Deferred tax liabilities (11.7) (15.9) $ (27.6) Other long-term liabilities (2.3) 0.5 $ (1.8) Total $ 798.2 $ — $ 798.2 The assets and liabilities acquired in the Legacy Primo Acquisition are recorded at their estimated fair values per preliminary valuations and management estimates and are subject to change when formal valuations and other studies are finalized. Estimated fair values for deferred tax balances are preliminary and are also subject to change based on the final valuation results. In addition, consideration for potential loss contingencies are still under review. We incurred $27.1 million of acquisition-related costs associated with the Legacy Primo Acquisition, which are included in acquisition and integration expenses in the Consolidated Statement of Operations for the year ended January 2, 2021. During the third quarter of 2020, Legacy Primo was integrated with our North America business, therefore it is impracticable to determine the amount of revenue and net income related to the Legacy Primo Acquisition included in our Consolidated Statement of Operations for the period from the date of the Legacy Primo Acquisition through January 2, 2021. Intangible Assets In our determination of the fair value of intangible assets, we consider, among other factors, the best use of acquired assets, analysis of historical financial performance and estimates of future performance of the acquired business’ products. The estimated fair values of identified intangible assets are calculated considering both market participant assumptions, using an income approach, as well as estimates and assumptions provided by Primo management and management of the acquired business. The estimated fair value of customer relationships represent future after-tax discounted cash flows that will be derived from sales to existing customers of the acquired business as of the date of acquisition. Critical assumptions used in our valuation of customer relationships include, but are not limited to, anticipated future cash flows, customer attrition rate and risk adjusted discount rate. Anticipated future cash flows assumption reflects projected revenue growth rates, EBITDA margins, synergies and capital expenditures. The estimated fair value of trademarks and trade names represent the future projected cost savings associated with the premium and brand image obtained as a result of owning the trademark or trade name as opposed to obtaining the benefit of the trademark or trade name through a royalty or rental fee. Critical assumptions used in our valuation of trademarks and trade names include, but are not limited to, projected revenue growth rates, weighted-average terminal growth rate, risk adjusted discount rate and royalty rate. The following table sets forth the components of identified intangible assets associated with the Legacy Primo Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Estimated Useful Life Customer relationships 245.2 26 years Trade names 174.9 Indefinite Software 1.5 3 years Total $ 421.6 Goodwill Goodwill is calculated as the excess of the purchase consideration transferred over the fair value of the identifiable assets acquired less the liabilities assumed. The primary factors that contributed to the recognition of goodwill are cash flow projections that include expected future earnings, projections of growth and expected cost synergies resulting from integration of Legacy Primo into our operations. The goodwill recognized as part of the Legacy Primo Acquisition was allocated to the North America reporting segment, a portion of which is expected to be tax deductible. Supplemental Pro Forma Data (unaudited) The following unaudited pro forma financial information for the years ended January 2, 2021 and December 28, 2019, represent the combined results of our operations as if the Legacy Primo Acquisition had occurred on December 30, 2018. The unaudited pro forma financial information results reflect certain adjustments related to the Legacy Primo Acquisition such as increased amortization expense on acquired intangible assets resulting from the preliminary fair valuation of assets acquired. The unaudited pro forma financial information does not necessarily reflect the results of operations that would have occurred had we operated as a single entity during such periods. For the Year Ended (in millions of U.S. dollars, except per share amounts) January 2, 2021 December 28, 2019 Revenue $ 1,993.3 $ 2,064.5 Net loss from continuing operations $ (136.3) $ (20.5) Net loss $ (111.2) $ (6.8) Net loss per common share from continuing operations, diluted $ (0.88) $ (0.13) Net loss per common share, diluted $ (0.72) $ (0.04) |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Jan. 02, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | Other Expense (Income), Net The following table summarizes other expense (income), net for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Foreign exchange losses (gains), net $ 1.5 $ 0.9 $ (7.1) Proceeds from legal settlements (1.9) — (14.9) (Gain) loss on sale of business (0.6) 6.0 (6.0) Transition services agreement service income — (0.3) (2.6) Loss (gain) on extinguishment of long-term debt 19.7 — (7.1) Other gains, net — (2.9) (4.3) Total $ 18.7 $ 3.7 $ (42.0) |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Jan. 02, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Interest Expense, Net | Interest Expense, Net The following table summarizes interest expense, net for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Interest on long-term debt $ 68.7 $ 69.5 $ 72.2 Interest on short-term debt 5.0 4.3 — Other interest expense, net 7.9 3.8 5.4 Total $ 81.6 $ 77.6 $ 77.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision (Benefit) for Income Taxes Income (loss) from continuing operations, before income taxes consisted of the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Canada $ (88.4) $ (57.0) $ (26.1) Outside Canada (64.1) 50.7 33.2 (Loss) income from continuing operations, before income taxes $ (152.5) $ (6.3) $ 7.1 Income tax expense (benefit) consisted of the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Current Canada $ — (0.2) $ — Outside Canada 1.9 12.2 3.8 $ 1.9 $ 12.0 $ 3.8 Deferred Canada $ — $ (1.0) $ (5.6) Outside Canada 2.4 (6.5) (6.5) $ 2.4 $ (7.5) $ (12.1) Income tax expense (benefit) $ 4.3 $ 4.5 $ (8.3) The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Income tax (benefit) expense based on Canadian statutory rates $ (40.4) $ (1.7) $ 1.9 Foreign tax rate differential (4.3) (10.0) (1.5) Local taxes 2.1 1.1 (0.6) Nontaxable interest income (8.7) (8.4) (9.8) Impairment expense 17.6 — — Impact of intercompany transactions and dividends 10.8 12.2 1.0 Income tax credits (0.5) (0.7) — Change in enacted tax rates (1.7) (0.1) 3.4 Change in valuation allowance 28.5 19.7 (4.2) Change in uncertain tax positions (1.5) 0.1 (1.8) Equity compensation 1.9 1.3 1.2 Permanent differences 1.6 1.3 0.8 Adjustments to deferred taxes (1.1) (10.4) 0.7 Other items — 0.1 0.6 Income tax expense (benefit) $ 4.3 $ 4.5 $ (8.3) Deferred Tax Assets and Liabilities Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Deferred tax assets Net operating loss carryforwards $ 196.4 $ 133.6 Capital loss carryforwards 14.5 12.0 Liabilities and reserves 32.0 25.7 Stock options 10.7 8.0 Inventories 2.4 3.4 Interest expense 9.8 11.3 Right of use lease obligations 50.7 44.6 316.5 238.6 Deferred tax liabilities Property, plant and equipment (65.0) (63.7) Intangible assets (191.8) (101.0) Right of use assets (50.1) (43.2) Other (0.7) (1.0) (307.6) (208.9) Valuation allowance (156.5) (120.3) Net deferred tax liability $ (147.6) $ (90.6) As of January 2, 2021, we have outside tax basis differences, including undistributed earnings, in our foreign subsidiaries. For 2020, deferred taxes have not been recorded on the undistributed earnings because our foreign subsidiaries have the ability to repatriate funds to their respective parent company tax-efficiently or the undistributed earnings are indefinitely reinvested under the accounting guidance. In order to arrive at this conclusion, we considered factors including, but not limited to, past experience, domestic cash requirements, cash requirements to satisfy the ongoing operations, capital expenditures and other financial obligations of our subsidiaries. It is not practicable to determine the excess book basis over outside tax basis in the shares or the amount of incremental taxes that might arise if these earnings were to be remitted. The amount of tax payable could be significantly impacted by the jurisdiction in which a distribution was made, the amount of the distribution, foreign withholding taxes under applicable tax laws when distributed, relevant tax treaties and foreign tax credits. We repatriated earnings of $221.8 million and $75.1 million to Canada in 2020 and 2019, respectively, incurring no tax expense. As of January 2, 2021, we have operating loss carryforwards totaling $786.6 million, capital loss carryforwards totaling $54.8 million, and tax credit carryforwards totaling $2.6 million. The operating loss carryforward amount was attributable to Canadian operating loss carryforwards of $273.1 million that will expire from 2027 to 2040; U.S. federal and state operating loss carryforwards of $231.1 million and $19.1 million, respectively, that will expire from 2021 to 2040; U.S. federal operating loss carryforwards of $37.6 million that have indefinite lives; Dutch operating loss carryforwards of $128.3 million that will expire from 2021 to 2027; and various other operating loss carryforwards of $97.4 million that will expire from 2021 to 2040. The capital loss carryforward is primarily attributable to Canadian capital losses of $49.2 million and Israeli capital losses of $5.5 million, all with indefinite lives. The tax credit carryforward of $2.6 million will expire from 2021 to 2023. In general, under Section 382 and 383 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), a U.S. corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change net operating losses (“NOLs”) or tax credits to offset future taxable income. Therefore, current or future changes in our Canadian stock ownership, many of which are outside of our control, could result in a U.S. ownership change under Section 382 and 383 of the Code. If we undergo a U.S. ownership change, our ability to utilize U.S. federal or state NOLs or tax credits could be limited. We monitor changes in our ownership on an ongoing basis and do not believe we had a change of control limitation as of January 2, 2021. We establish a valuation allowance to reduce deferred tax assets if, based on the weight of the available evidence, both positive and negative, for each respective tax jurisdiction, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Due to recent cumulative losses, it was determined that it is more likely than not we will not realize the benefit of net operating loss carryforwards and other net deferred assets in Canada, and certain jurisdictions within the Eden business. The balance of the valuation allowance was $156.5 million and $120.3 million for the years ended January 2, 2021 and December 28, 2019, respectively. The valuation allowance increase in 2020 was primarily related to losses generated in tax jurisdictions with existing valuation allowances. Additionally, we have determined that it is more likely than not that the benefit from our capital losses in Canada and Israel will not be realized in the future due to the uncertainty regarding potential future capital gains in the jurisdiction. In recognition of this risk, we have provided a valuation allowance of $14.5 million on our capital losses. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Unrecognized tax benefits at beginning of year $ 16.9 $ 15.1 $ 15.8 Additions based on tax positions taken during a prior period — 5.0 1.3 Reductions based on tax positions taken during a prior period — (1.9) (0.1) Settlement on tax positions taken during a prior period (1.7) — — Tax rate change — — (0.1) Lapse in statute of limitations (1.0) (2.9) (4.3) Additions based on tax positions taken during the current period 1.3 1.7 3.0 Cash payments (0.2) (0.2) — Foreign exchange 0.3 0.1 (0.5) Unrecognized tax benefits at end of year $ 15.6 $ 16.9 $ 15.1 As of January 2, 2021, we had $15.6 million of unrecognized tax benefits, a net decrease of $1.3 million from $16.9 million as of December 28, 2019. If we recognized our tax positions, approximately $14.4 million would favorably impact the effective tax rate. We believe it is reasonably possible that our unrecognized tax benefits will decrease or be recognized in the next twelve months by up to $3.0 million due to the settlement of certain tax positions and lapses in statutes of limitation in various tax jurisdictions. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. No interest or penalties were recovered during the years ended January 2, 2021, December 28, 2019 and December 29, 2018. The amount of interest and penalties recognized on the Consolidated Balance Sheets for 2020 and 2019 were a liability of $0.8 million and $0.9 million, respectively. Years through 2009 have been audited by the U.S. Internal Revenue Service, though the statutes are still open back to 2008 due to certain net operating loss carryforwards. Years prior to 2014 are closed to audit by U.S. state jurisdictions. We are currently under audit in Canada by the Canada Revenue Agency (“CRA”) for tax years 2014 and 2016. Years prior to 2014 are closed to audit by the CRA. We are currently under audit in Israel for the 2013 to 2017 tax years. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our shareowners approved our Amended and Restated Primo Water Corporation Equity Incentive Plan (the “Amended and Restated Equity Plan”) in its current form in May 2016, and approved the Primo Water Corporation 2018 Equity Incentive Plan (“2018 Equity Plan” and together with the Amended and Restated Equity Plan, the “Equity Plans”) in May 2018. Awards under the Equity Plans may be in the form of incentive stock options, non-qualified stock options, restricted shares, restricted share units, performance shares, performance units, stock appreciation rights, and stock payments to employees, directors and outside consultants. The Equity Plans are administered by the Human Resources and Compensation Committee (“HRCC”) of the Board of Directors or any other board committee as may be designated by the Board of Directors from time to time. Under the Amended and Restated Equity Plan, 20,000,000 shares are reserved for future issuance, and under the 2018 Equity Plan, 8,000,000 shares are reserved for future issuance, subject to adjustment upon a share split, share dividend, recapitalization, and other similar transactions and events. Shares that are issued under the Equity Plans are applied to reduce the maximum number of shares remaining available for issuance under the Equity Plans; provided that the total number of shares available for issuance under the Equity Plans are reduced two shares for each share issued pursuant to a “full-value” award (i.e., an award other than an option or stock appreciation right). Shares to be issued pursuant to Time-based RSUs, Performance-based RSUs, or stock options that are forfeited, expired, or are canceled or settled without the issuance of shares return to the pool of shares available for issuance under the Equity Plans. As of January 2, 2021, there were approximately 120,000 shares available for future issuance under the Amended and Restated Equity Plan, and approximately 6,026,000 shares available for future issuance under the 2018 Equity Plan. In the second quarter of 2020, the Human Resources and Compensation Committee of the Board of Directors (the “HRCC”) approved a bonus for a select group of associates that will be settled in fully vested common shares based on the closing share price on the date the achievement of the performance target described below is certified by the HRCC. The aggregate target payout of $2.4 million is based on (1) attainment of a specified percentage target under the Company's annual cash performance bonus plan for the DSS business, and (2) attainment of a specified annualized 2020 synergy target. This bonus was accounted for as a liability-classified award with a performance condition. The final bonus payout was based upon the performance percentage, which was 122% of the target payout. For the year ended January 2, 2021, the Company recorded $2.9 million of share-based compensation expense, which is included in SG&A expenses on the Consolidated Statement of Operations. A related liability associated with these awards of $2.9 million was recorded in accounts payable and accrued liabilities on the Consolidated Balance Sheet as of January 2, 2021. The table below summarizes the share-based compensation expense for the years ended January 2, 2021, December 28, 2019, and December 29, 2018. Share-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Operations. As referenced below: (i) “Performance-based RSUs” represent restricted share units with performance-based vesting, (ii) “Time-based RSUs” represent restricted share units with time-based vesting, (iii) “Stock options” represent non-qualified stock options, (iv) “Director share awards” represent common shares issued in consideration of the annual board retainer fee to non-management members of our Board of Directors, and (v) the “ESPP” represents the Primo Water Corporation Employee Share Purchase Plan, under which common shares are issued to eligible employees at a discount through payroll deductions. For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Stock options $ 5.5 $ 3.3 $ 5.3 Performance-based RSUs 7.8 5.7 7.0 Time-based RSUs 4.9 2.1 3.8 Director share awards 1.3 1.1 1.0 Liability-classified awards 2.9 — — Employee Share Purchase Plan 0.3 0.2 0.3 Total 1 $ 22.7 $ 12.4 $ 17.4 ______________________ 1 Includes $0.6 million and $0.7 million of share-based compensation expense from our discontinued operations, which were included in net income from discontinued operations, net of income taxes on the Consolidated Statements of Operations for the years ended January 2, 2021 and December 28, 2019, respectively, and a reduction of $1.7 million of share-based compensation expense from our discontinued operations, which were included in net income from discontinued operations, net of income taxes on the Consolidated Statement of Operations for the year ended December 29, 2018. On August 4, 2020, we amended the Equity Plans to provide for defined criteria for a retirement along with continued vesting of equity awards upon a retirement. The total incremental compensation expense associated with the modification was $5.9 million and was included in SG&A expenses on the Consolidated Statement of Operations for the year ended January 2, 2021. On August 1, 2018, in connection with the appointment of Mr. Jerry Fowden to executive chairman of the Board effective December 30, 2018, the Board approved the modification of certain outstanding awards issued to Mr. Fowden. The modified awards will continue to vest in accordance with their normal applicable vesting schedules regardless of continued service. The total incremental compensation expense associated with the modification was $5.5 million for the year ended December 29, 2018. The tax benefit recognized related to share-based compensation expense for the fiscal year ended January 2, 2021 was $0.8 million (December 28, 2019 - $0.6 million; December 29, 2018 - $0.9 million). As of January 2, 2021, the unrecognized share-based compensation expense and weighted average years over which we expect to recognize it as compensation expense were as follows: (in millions of U.S. dollars, except years) Unrecognized share-based compensation expense as of January 2, 2021 Weighted average years expected to recognize compensation Stock options $ 4.5 2.0 Performance-based RSUs 5.8 2.4 Time-based RSUs 4.0 2.0 Total $ 14.3 Stock Options During 2020, 2019 and 2018 approximately 1,053,600, 1,138,000, and 1,182,400 options were granted to certain employees under the Amended and Restated Equity Plan at a weighted-average exercise price of $15.48, $13.68, and $14.67 per share, respectively. The weighted-average grant date fair value of the options was estimated to be $4.63, $3.42, and $3.87 per share in 2020, 2019 and 2018, respectively, using the Black-Scholes option pricing model. The contractual term of an option granted is fixed by the Amended and Restated Equity Plan and cannot exceed ten years from the grant date. The grant date fair value of each option granted during 2020, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Risk-free interest rate 0.7 % 1.8 % 2.8 % Average expected life (years) 6.0 6.0 5.6 Expected volatility 36.2 % 29.0 % 28.8 % Expected dividend yield 1.6 % 1.8 % 1.6 % The following table summarizes the activity for Company stock options: Stock Options (in thousands) Weighted average exercise price Weighted average contractual term (years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2017 5,006 $ 11.41 8.1 $ 26,952.3 Granted 1,182 14.67 Exercised (734) 10.04 4,408.1 Forfeited or expired (8) 10.64 Outstanding at December 29, 2018 5,446 $ 12.30 7.3 $ 11,993.0 Granted 1,138 13.68 Exercised (91) 10.47 389.1 Forfeited or expired — — Outstanding at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 Granted 1,054 15.48 Exercised (252) 10.27 1,185.9 Forfeited or expired (25) 11.98 Outstanding at January 2, 2021 7,270 $ 13.07 6.5 $ 20,659.3 Exercisable at January 2, 2021 5,146 $ 12.38 5.4 $ 18,572.7 Vested or expected to vest at January 2, 2021 7,270 $ 13.07 6.5 $ 20,659.3 The aggregate intrinsic value amounts in the table above represent the difference between the closing price of our common shares on the New York Stock Exchange on December 31, 2020, which was $15.68 (December 27, 2019—$13.45; December 28, 2018—$13.66), and the exercise price, multiplied by the number of in-the-money stock options as of the same date. Stock options granted during the year ended January 2, 2021 vest in three equal annual installments on the first, second and third anniversaries of the date of grant. The total amount of cash received from the exercise of stock options was $2.0 million during the fiscal year ended January 2, 2021 with an associated tax benefit of $0.1 million realized. The total amount of cash received from the exercise of stock options was not material during the fiscal year ended December 28, 2019 with no associated tax benefit realized. The total amount of cash received from the exercise of stock options was $5.0 million during the fiscal year ended December 29, 2018 with $0.2 million associated tax benefit realized. The total fair value of options that vested during the year ended January 2, 2021 was $15.8 million (December 28, 2019 — $19.0 million; December 29, 2018 — $16.8 million). Other Awards In 2020, we granted 118,059 common shares to the non-management members of our Board of Directors under the Amended and Restated Equity Plan with a grant date fair value of approximately $1.3 million. The common shares were issued in consideration of the directors’ annual board retainer fee and were vested upon issuance. Additionally, in 2020, we granted 458,000 Performance-based RSUs, which vest at the end of a three-year performance period beginning on the first day of our 2021 fiscal year, and ending on the last day of our 2023 fiscal year. The number of shares ultimately awarded will be based upon the performance payout rate, which can range from 0% to 200% of the awards granted. The Performance-based RSUs vest primarily on the Company’s achievement of average annual return on invested capital (“ROIC”) and aggregate revenues for the applicable performance period (the “Performance Objectives”). The number of Performance-based RSUs that may vest and the related unrecognized compensation cost is subject to change based on the Performance Objectives achieved during the vesting period. The Company also granted 542,000 Time-based RSUs, which vest over three years in equal annual installments on the first, second and third anniversaries of the date of grant and include a service condition. Number of Performance-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Number of Time-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Balance at December 31, 2017 2,899 $ 9.15 502 $ 13.14 Awarded 312 14.67 208 14.67 Awarded in connection with modification 246 9.21 — — Issued (686) 9.32 (269) 13.07 Forfeited (1,106) 6.55 (14) 13.24 Balance at December 29, 2018 1,665 $ 13.90 427 $ 14.23 Awarded 285 13.69 216 13.69 Awarded in connection with modification 190 11.22 — — Issued (441) 11.30 (239) 13.38 Forfeited (100) 12.33 (7) 14.89 Outstanding at December 28, 2019 1,599 $ 14.36 397 $ 14.43 Awarded 458 15.64 542 14.85 Awarded in connection with modification 344 17.50 — — Issued (842) 16.80 (371) 13.82 Forfeited (374) 16.03 (20) 14.18 Outstanding at January 2, 2021 1,185 $ 15.27 548 $ 14.75 Vested or expected to vest at January 2, 2021 1,279 $ 15.44 548 $ 14.75 The total fair value of Performance-based RSUs vested and issued during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 were $14.1 million, $5.0 million and $6.4 million. The total fair value of Time-based RSUs vested and issued during the years ended January 2, 2021, December 28, 2019, and December 29, 2018 were $5.1 million, $3.2 million, and $3.5 million. Employee Share Purchase Plan The Company has maintained the Primo Water Corporation Employee Share Purchase Plan (the “ESPP”) since 2015. The ESPP qualifies as an “employee share purchase plan” under Section 423 of the Internal Revenue Code of 1986 (“IRC”), as amended. Substantially all employees are eligible to participate in the ESPP and may elect to participate at the beginning of any quarterly offering period. The ESPP authorizes the issuance, and the purchase by eligible employees, of up to 3,000,000 shares of Primo common shares through payroll deductions. Eligible employees who choose to participate may purchase Primo common shares at 90% of market value on the first or last day of the quarterly offering period, whichever is lower. The minimum contribution which an eligible employee may make under the ESPP is 1% of the employee’s eligible compensation, with the maximum contribution limited to 15% of the employee’s eligible compensation. At the end of each quarterly offering period for which the employee participates, the total amount of each employee’s payroll deduction for that offering period will be used to purchase Primo common shares. The Company recognized $0.3 million, $0.2 million and $0.3 million of share-based compensation expense in SG&A expenses in the Consolidated Statements of Operations for 2020, 2019 and 2018, respectively. At January 2, 2021, 2,452,739 shares remained available for issuance under the ESPP. |
Common Shares and Net (Loss) In
Common Shares and Net (Loss) Income per Common Share | 12 Months Ended |
Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |
Common Shares and Net (Loss) Income per Common Share | Common Shares and Net (Loss) Income per Common Share Common Shares On May 1, 2018, our Board of Directors approved a share repurchase program for up to $50.0 million of Primo's outstanding shares over a 12-month period commencing on May 7, 2018 (the “Initial Repurchase Plan”). Since that date, for the year ended December 29, 2018, we repurchased 2,973,282 common shares for approximately $46.0 million through open market transactions under the Initial Repurchase Plan. Shares purchased under the Initial Repurchase Plan were subsequently canceled. On December 11, 2018, our Board of Directors approved a share repurchase program for up to $50.0 million of Primo ’s outstanding common shares over a 12-month period commencing on December 14, 2018 (the “Second Repurchase Plan”). Since that date, for the years ended December 28, 2019 and December 29, 2018, we repurchased 2,006,789 and 1,590,088 common shares for approximately $27.8 million and $22.2 million, respectively, through open market transactions under the Second Repurchase Plan. Shares purchased under the Second Repurchase Plan were subsequently canceled. During the second quarter of 2019, we utilized all funds under the Second Repurchase Plan. On December 11, 2019, our Board of Directors approved a new share repurchase program for up to $50.0 million of Primo’s outstanding common shares over a 12-month period (the “New Repurchase Plan”). We made no repurchases of our common shares under the New Repurchase Plan for the year ended December 28, 2019. For the year ended January 2, 2021, we repurchased 2,316,835 common shares for $25.0 million through open market transactions under the New Repurchase Plan. Shares purchased under the New Repurchase Plan were subsequently canceled. The New Repurchase Plan expired on December 15, 2020 and no further purchases will be made under such plan. On March 2, 2020, the Company completed the Legacy Primo Acquisition, with 26,497,015 common shares issued at $14.25 per share to holders of Legacy Primo (see Note 5 to the Consolidated Financial Statements). Net (Loss) Income Per Common Share Basic net (loss) income per common share is calculated by dividing net (loss) income attributable to Primo Water Corporation by the weighted average number of common shares outstanding during the periods presented. Diluted net (loss) income per common share is calculated by dividing diluted net (loss) income attributable to Primo Water Corporation by the weighted average number of common shares outstanding adjusted to include the effect, if dilutive, of the exercise of in-the-money stock options, Performance-based RSUs, and Time-based RSUs during the periods presented. Set forth below is a reconciliation of the numerator and denominator for the diluted net (loss) income per common share computations for the periods indicated: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Numerator (in millions): Net (loss) income attributable to Primo Water Corporation Continuing operations $ (156.8) $ (10.8) $ 15.4 Discontinued operations 25.1 13.7 367.5 Net (loss) income (131.7) 2.9 382.9 Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 155,446 135,224 139,097 Basic Earnings Per Share: Continuing operations (1.01) (0.08) 0.11 Discontinued operations 0.16 0.10 2.64 Net (loss) income (0.85) 0.02 2.75 Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 155,446 135,224 139,097 Dilutive effect of Stock Options — — 1,199 Dilutive effect of Performance based RSUs — — 900 Dilutive effect of Time-based RSUs — — 240 Weighted average common shares outstanding - diluted 155,446 135,224 141,436 Diluted Earnings Per Share: Continued operations (1.01) (0.08) 0.11 Discontinued operations 0.16 0.10 2.60 Net (loss) income (0.85) 0.02 2.71 The following table summarizes anti-dilutive securities excluded from the computation of diluted net (loss) income per common share for the periods indicated: For the Year Ended (in thousands) January 2, 2021 December 28, 2019 December 29, 2018 Stock options 7,270 6,493 2,095 Performance-based RSUs 1 1,185 1,594 564 Time-based RSUs 2 548 397 148 ______________________ 1 Performance-based RSUs represent the number of shares expected to be issued based on the estimated achievement of pre-tax income for these awards. 2 Time-based RSUs represent the number of shares expected to be issued based on known employee retention information. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingOur broad portfolio of products includes bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, sparkling and flavored water, mineral water, filtration equipment and coffee. During the second quarter of 2020, we implemented a restructuring program intended to optimize synergies from the Company’s transition to a pure-play water company following the Legacy Primo Acquisition and, as a result, reorganized into two reporting segments as follows: North America (which includes our DSS, Aquaterra, Mountain Valley, and Legacy Primo businesses) and Rest of World (which includes our Eden, Aimia, Decantae, and Farrers businesses). Our corporate oversight function and other miscellaneous expenses are aggregated and included in the All Other category. Segment reporting results have been recast to reflect these changes for all periods presented. January 2, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net $ 1,493.2 $ 460.3 $ — $ 1,953.5 Depreciation and amortization 142.4 58.4 1.3 202.1 Operating income (loss) 132.1 (111.4) (72.9) (52.2) Property, plant and equipment, net 550.7 134.1 0.8 685.6 Goodwill 982.1 302.2 — 1,284.3 Intangible assets, net 759.7 222.9 5.0 987.6 Total segment assets 1 2,729.7 841.3 33.7 3,604.7 Additions to property, plant and equipment 87.0 27.2 (0.2) 114.0 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. December 28, 2019 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net $ 1,269.8 $ 518.4 $ 7.2 $ 1,795.4 Depreciation and amortization 113.1 55.2 0.3 168.6 Operating income (loss) 92.7 29.1 (46.8) 75.0 Property, plant and equipment, net 433.2 123.8 1.1 558.1 Goodwill 673.1 374.4 — 1,047.5 Intangible assets, net 358.8 237.2 1.0 597.0 Total segment assets 1 1,874.5 941.6 48.3 2,864.4 Additions to property, plant and equipment 70.7 30.2 0.4 101.3 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. December 29, 2018 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net 1 $ 1,188.4 $ 521.9 $ 80.7 $ 1,791.0 Depreciation and amortization 113.5 57.2 1.0 171.7 Operating income (loss) 69.2 26.8 (53.3) 42.7 Additions to property, plant and equipment 72.3 40.0 2.5 114.8 ______________________ 1 All Other includes $4.2 million of related party concentrate sales to discontinued operations for the year ended December 29, 2018. Reconciliation of Segment Assets to Total Assets (in millions of U.S. dollars) December 28, 2019 Segment assets 1 $ 2,864.4 Assets of discontinued operations 1 526.5 Total assets $ 3,390.9 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. Credit risk arises from the potential default of a customer in meeting its financial obligations to us. Concentrations of credit exposure may arise with a group of customers that have similar economic characteristics or that are located in the same geographic region. The ability of such customers to meet obligations would be similarly affected by changing economic, political or other conditions. We are not currently aware of any facts that would create a material credit risk. The impact of the COVID-19 pandemic may affect the ability of such customers to meet obligations to us. The full extent to which the COVID-19 pandemic will negatively affect our results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in the markets in which we operate and other third parties in response to the pandemic. We have limited customer concentration; no customer accounts for more than 10% of our net revenues. Revenues are attributed to countries based on the location of the customer. Revenues generated from sales to external customers by geographic area were as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 United States $ 1,429.6 $ 1,210.0 $ 1,205.0 United Kingdom 142.2 172.0 173.2 Canada 64.1 67.0 64.1 All other countries 317.6 346.4 348.7 Total $ 1,953.5 $ 1,795.4 $ 1,791.0 Revenues by channel by reporting segment were as follows: For the Year Ended January 2, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 965.8 $ 211.6 $ — $ 1,177.4 Water Refill/Water Filtration 175.1 29.3 — 204.4 Other Water 160.7 63.5 — 224.2 Water Dispensers 75.9 — — 75.9 Other 115.7 155.9 — 271.6 Total $ 1,493.2 $ 460.3 $ — $ 1,953.5 For the Year Ended December 28, 2019 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 905.1 $ 252.7 $ — $ 1,157.8 Water Refill/Water Filtration 35.6 26.8 — 62.4 Other Water 157.8 59.4 — 217.2 Other 171.3 179.5 7.2 358.0 Total $ 1,269.8 $ 518.4 $ 7.2 $ 1,795.4 For the Year Ended December 29, 2018 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 841.0 $ 261.5 $ — $ 1,102.5 Water Refill/Water Filtration 35.7 26.0 — 61.7 Other Water 159.5 55.5 — 215.0 Other 152.2 178.9 80.7 411.8 Total $ 1,188.4 $ 521.9 $ 80.7 $ 1,791.0 Property, plant and equipment, net by geographic area as of January 2, 2021 and December 28, 2019 were as follows: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 United States $ 527.4 $ 415.7 United Kingdom 21.9 20.9 Canada 24.1 18.6 All other countries 1 112.2 102.9 Total $ 685.6 $ 558.1 ______________________ 1 No individual country is greater than 10% of total property, plant and equipment, net as of January 2, 2021 and December 28, 2019. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Jan. 02, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The following table summarizes accounts receivable, net as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Trade receivables $ 226.5 $ 209.9 Allowance for doubtful accounts (20.7) (8.8) Other 16.5 15.6 Total $ 222.3 $ 216.7 |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes inventories as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Raw materials $ 43.6 $ 23.8 Finished goods 28.0 24.2 Resale items 11.1 14.0 Other 1.1 0.9 Total $ 83.8 $ 62.9 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net The following table summarizes property, plant and equipment, net as of January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Estimated Useful Life in Years Cost Accumulated Depreciation Net Cost Accumulated Depreciation Net Land n/a $ 95.8 $ — $ 95.8 $ 95.3 $ — $ 95.3 Buildings 10-40 93.5 32.2 61.3 88.9 26.9 62.0 Machinery and equipment 5-15 167.2 85.6 81.6 146.8 66.0 80.8 Plates, films and molds 1-10 1.8 0.9 0.9 1.5 0.6 0.9 Vehicles and transportation equipment 3-15 94.6 66.6 28.0 90.3 59.5 30.8 Leasehold improvements 1 21.0 13.1 7.9 19.8 10.7 9.1 IT Systems 3-7 17.8 12.2 5.6 15.6 9.9 5.7 Furniture and fixtures 3-10 12.7 10.1 2.6 12.0 8.6 3.4 Customer equipment 2 3-7 470.2 189.3 280.9 339.7 144.9 194.8 Returnable bottles 3 3-5 102.5 52.5 50.0 82.0 37.1 44.9 Finance leases 4 88.4 17.4 71.0 37.6 7.2 30.4 Total $ 1,165.5 $ 479.9 $ 685.6 $ 929.5 $ 371.4 $ 558.1 ______________________ 1 Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life. 2 Customer equipment consists of coolers, brewers, refrigerators, water purification devices and storage racks held on site at customer locations. 3 Returnable bottles are those bottles on site at customer locations. 4 Our recorded assets under finance leases relate to machinery and equipment, customer equipment, IT systems, customer equipment and vehicles and transportation equipment. The amounts above include construction in progress of $1.2 million and $2.4 million for 2020 and 2019, respectively. Depreciation expense, which includes depreciation recorded for assets under finance leases, for the year ended January 2, 2021 was $138.8 million (2019 - $112.1 million; 2018 - $108.7 million). |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net The following table summarizes intangible assets, net as of January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible Assets Not subject to amortization Trademarks $ 455.5 $ — $ 455.5 $ 287.1 $ — $ 287.1 Total intangible assets not subject to amortization $ 455.5 $ — $ 455.5 $ 287.1 $ — $ 287.1 Subject to amortization Customer relationships 809.5 324.3 485.2 534.9 267.5 267.4 Patents 19.2 6.4 12.8 15.2 4.0 11.2 Software 62.5 38.2 24.3 49.4 28.0 21.4 Other 15.9 6.1 9.8 14.9 5.0 9.9 Total intangible assets subject to amortization $ 907.1 $ 375.0 $ 532.1 $ 614.4 $ 304.5 $ 309.9 Total intangible assets $ 1,362.6 $ 375.0 $ 987.6 $ 901.5 $ 304.5 $ 597.0 Amortization expense of intangible assets was $63.3 million during 2020 (2019 - $56.5 million; 2018 - $63.0 million). The estimated amortization expense for intangible assets subject to amortization over the next five years is: (in millions of U.S. dollars) 2021 $ 60.3 2022 56.4 2023 48.0 2024 41.4 2025 35.6 Thereafter 290.4 Total $ 532.1 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Jan. 02, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities The following table summarizes accounts payable and accrued liabilities as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Trade payables $ 135.2 $ 126.5 Accrued compensation 55.5 46.8 Accrued sales incentives 9.9 7.1 Accrued interest 14.8 23.9 Payroll, sales and other taxes 25.2 16.0 Accrued deposits 70.1 77.1 Self-insurance liabilities 15.5 17.5 Other accrued liabilities 61.5 55.7 Total $ 387.7 $ 370.6 |
Debt
Debt | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our total debt as of January 2, 2021 and December 28, 2019 was as follows: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Principal Unamortized Debt Costs Net Principal Unamortized Debt Costs Net 5.500% senior notes due in 2024 $ — $ — $ — $ 499.3 $ 5.8 $ 493.5 5.500% senior notes due in 2025 750.0 7.0 743.0 750.0 8.2 741.8 3.875% senior notes due in 2028 551.9 8.3 543.6 — — — Revolving Credit Facility 104.8 — 104.8 — — — ABL facility — — — 92.0 — 92.0 Short-term borrowings 2.9 — 2.9 0.4 — 0.4 Finance leases 71.5 — 71.5 29.4 — 29.4 Other debt financing 4.9 — 4.9 1.3 — 1.3 Total debt $ 1,486.0 $ 15.3 $ 1,470.7 $ 1,372.4 $ 14.0 $ 1,358.4 Less: Short-term borrowings and current debt: Revolving Credit Facility 104.8 — 104.8 — — — ABL facility — — — 92.0 — 92.0 Short-term borrowings 2.9 — 2.9 0.4 — 0.4 Finance leases - current maturities 13.2 — 13.2 5.8 — 5.8 Other debt financing 4.7 — 4.7 1.1 — 1.1 Total current debt $ 125.6 $ — $ 125.6 $ 99.3 $ — $ 99.3 Total long-term debt $ 1,360.4 $ 15.3 $ 1,345.1 $ 1,273.1 $ 14.0 $ 1,259.1 The long-term debt payments (which include current maturities of long-term debt) required in each of the next five years and thereafter are as follows: (in millions of U.S. dollars) Long-Term Debt (including current) 2021 $ 125.6 2022 12.8 2023 12.4 2024 11.0 2025 760.7 Thereafter 563.5 $ 1,486.0 Revolving Credit Facility On March 6, 2020, the Company entered into a credit agreement (the “Credit Agreement”) among the Company, as parent borrower, Primo Water Holdings Inc. and certain other subsidiary borrowers, certain other subsidiaries of the Company from time to time designated as subsidiary borrowers, Bank of America, N.A., as administrative agent and collateral agent, and the lenders from time to time party thereto. The Credit Agreement provides for a senior secured revolving credit facility in an initial aggregate committed amount of $350.0 million (the “Revolving Credit Facility”), which may be increased by incremental credit extensions from time to time in the form of term loans or additional revolving credit commitments. The Revolving Credit Facility has a five Borrowings under the Revolving Credit Facility were used to refinance in full and terminate our previously existing asset-based lending credit facility (“ABL facility”), governed by the Second Amended and Restated Credit Agreement, dated January 30, 2019, by and among the Company, the other loan parties party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent, and the lenders from time to time party thereto (as amended, the “ABL Credit Agreement”). Certain letters of credit outstanding under the ABL Credit Agreement were rolled over under the Revolving Credit Facility. We incurred approximately $3.4 million of financing fees in connection with the Revolving Credit Facility. The Revolving Credit Facility was considered to be a modification of the ABL facility under GAAP. These new financing fees along with $1.8 million of unamortized deferred costs of the ABL facility are being amortized using the straight-line method over the duration of the Revolving Credit Facility. As of January 2, 2021, the outstanding borrowings under the Revolving Credit Facility were $104.8 million and were recorded in short-term borrowings on the Consolidated Balance Sheet. Outstanding letters of credit totaled $50.6 million resulting in total utilization under the Revolving Credit Facility of $155.4 million. Accordingly, unused availability under the Revolving Credit Facility as of January 2, 2021 amounted to $194.6 million. The weighted average effective interest rate at January 2, 2021 on the Revolving Credit Facility outstanding borrowings was 2.1%. The weighted average effective interest rate at December 28, 2019 on the ABL facility outstanding borrowings was 3.4%. The effective interest rates are based on our aggregate availability. Borrowings under the Credit Agreement will bear interest at a rate per annum equal to either: (a) a euro currency rate as determined under the Credit Agreement, plus the applicable margin, or (b) a base rate equal to the highest of (i) Bank of America’s prime rate, (ii) 0.5% per annum above the federal funds rate, and (iii) the euro currency rate, as determined under the Credit Agreement, for a one month interest period, plus 1.0%, plus the applicable margin. The applicable margin for euro currency rate loans ranges from 137.5 to 200 basis points and the applicable margin for base rate loans ranges from 37.5 to 100 basis points, in each case depending on our consolidated total leverage ratio. Unutilized commitments under the Credit Agreement are subject to a commitment fee ranging from 20 to 30 basis points per annum depending on our consolidated total leverage ratio, payable on a quarterly basis. 3.875% Senior Notes due in 2028 On October 22, 2020, we issued €450.0 million ($551.9 million at exchange rates in effect on January 2, 2021) of 3.875% senior notes due October 31, 2028 (“2028 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 2028 Notes were issued by our wholly-owned subsidiary Primo Water Holdings Inc. The 2028 Notes are guaranteed by the Company and certain subsidiaries that are currently obligors under the Revolving Credit Facility, the €450.0 million of 5.500% senior notes due July 1, 2024 (“2024 Notes”) and the $750.0 million of 5.500% senior notes due April 1, 2025 (“2025 Notes”). The 2028 Notes will mature on October 31, 2028 and interest is payable semi-annually on April 30th and October 31st of each year commencing on April 30, 2021. The proceeds of the 2028 Notes, along with borrowings from the Revolving Credit Facility, were used to redeem in full the 2024 Notes and pay related premiums, fees and expenses. We incurred approximately $8.5 million of financing fees for the issuance of the 2028 Notes. The financing fees are being amortized using the effective interest method over a period of eight years, which represents the term to maturity of the 2028 Notes. 5.500% Senior Notes due in 2025 In March 2017, we issued $750.0 million of our 2025 Notes to qualified purchasers in a private placement offering under Rule 144A under the Securities Act, and outside the United States to non-U.S. purchasers pursuant to Regulation S under the Securities Act and other applicable laws. The 2025 Notes were issued by our wholly-owned subsidiary Primo Water Holdings Inc. (formerly Cott Holdings Inc.), and most of our U.S., Canadian, U.K. and Dutch subsidiaries guarantee the 2025 Notes. The 2025 Notes will mature on April 1, 2025 and interest is payable semi-annually on April 1st and October 1st of each year commencing on October 1, 2017. The proceeds of the 2025 Notes were used to redeem in full $625.0 million of our 6.750% senior notes due 2020, redeem $100.0 million aggregate principal amount of our 10.000% senior secured notes due 2021 and to pay related fees and expenses. We incurred $11.7 million of financing fees in connection with the issuance of the 2025 Notes. The financing fees are being amortized using the effective interest method over a period of eight years, which represents the term to maturity of the 2025 Notes. 5.500% Senior Notes due in 2024 In June 2016, we issued €450.0 million of our 2024 Notes to qualified purchasers in a private placement offering under Rule 144A and Regulation S under the Securities Act and other applicable laws. The 2024 Notes were issued by us, and most of our U.S., Canadian, U.K. and Dutch subsidiaries guaranteed the 2024 Notes. We incurred approximately $11.3 million of financing fees for the issuance of the 2024 Notes and $11.0 million of bridge financing commitment fees and professional fees in connection with the acquisition of Eden. The financing fees were being amortized using the effective interest method over a period of eight years, which represented the term to maturity of the 2024 Notes. The bridge financing commitment fees and professional fees were expensed as incurred. On October 22, 2020, we used the €450.0 million proceeds of the 2028 Notes (U.S. $533.5 million at the exchange rate in effect on October 22, 2020), along with borrowings from the Revolving Credit Facility, to redeem in full the 2024 Notes. The redemption of the 2024 Notes included $14.7 million in premium payments, accrued interest of $9.0 million, and the write-off of $5.1 million in deferred financing fees. Covenant Compliance Indentures governing our outstanding notes Under the indentures governing our outstanding notes, we are subject to a number of covenants, including covenants that limit our and certain of our subsidiaries’ ability, subject to certain exceptions and qualifications, to (i) pay dividends or make distributions, repurchase equity securities, prepay subordinated debt or make certain investments, (ii) incur additional debt or issue certain disqualified stock or preferred stock, (iii) create or incur liens on assets securing indebtedness, (iv) merge or consolidate with another company or sell all or substantially all of our assets taken as a whole, (v) enter into transactions with affiliates and (vi) sell assets. The covenants are substantially similar across the series of notes. As of January 2, 2021, we were in compliance with all of the covenants under each series of notes. There have been no amendments to any covenants of our outstanding notes since the date of their issuance or assumption, as applicable. Revolving Credit Facility The Credit Agreement has two financial covenants, a consolidated secured leverage ratio and an interest coverage ratio. The consolidated secured leverage ratio must not be more than 3.50 to 1.00, with an allowable temporary increase to 4.00 to 1.00 for the quarter in which the Company consummates a material acquisition with a price not less than $125.0 million, for three quarters. The interest coverage ratio must not be less than 3.00 to 1.00. The Company was in compliance with these financial covenants as of January 2, 2021. In addition, the Credit Agreement has certain non-financial covenants, such as covenants regarding indebtedness, investments, and asset dispositions. The Company was in compliance with all covenants as of January 2, 2021. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 02, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Company maintains certain defined contribution (“DC”) retirement plans covering qualifying employees. The total expense with respect to these DC plans was $6.0 million for the year ended January 2, 2021 (2019—$5.2 million; 2018—$2.3 million). The Company also maintains several defined benefit (“DB”) plans acquired as a part of acquisitions covering certain U.S. and non-U.S. employees, referred to as the U.S. and International Plans, respectively. Retirement benefits are based on years of service multiplied by a monthly benefit factor. Pension costs are funded in accordance with the provisions of the applicable law. Our U.S. Plan is closed to new participants and is frozen. The Company uses a January 2, 2021 measurement date for all DB plans. Any variation differences based on two days of trading are deemed immaterial. Obligations and Funded Status The following table summarizes the change in the projected benefit obligation, change in plan assets and unfunded status of the DB plans as of January 2, 2021 and December 28, 2019: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 8.6 $ 13.1 $ 21.7 Service cost — 1.0 1.0 Interest cost 0.3 0.1 0.4 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.1) (1.5) Actuarial losses (gains) 1.0 (0.2) 0.8 Curtailment gains — (0.9) (0.9) Translation losses — 1.1 1.1 Projected benefit obligation at end of year $ 9.5 $ 13.4 $ 22.9 Change in Plan Assets Plan assets beginning of year $ 8.1 $ 5.9 $ 14.0 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (0.8) (1.2) Curtailment losses — (0.6) (0.6) Expected return on plan assets — 0.2 0.2 Actual return on plan assets 1.1 — 1.1 Translation gains — 0.5 0.5 Fair value at end of year $ 9.1 $ 6.0 $ 15.1 Funded Status of Plan Projected benefit obligation $ (9.5) $ (13.4) $ (22.9) Fair value of plan assets 9.1 6.0 15.1 Unfunded status $ (0.4) $ (7.4) $ (7.8) December 28, 2019 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 7.9 $ 10.8 $ 18.7 Plan amendment — 0.4 0.4 Service cost — 0.8 0.8 Interest cost 0.3 0.2 0.5 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.5) (1.9) Actuarial losses 0.8 1.5 2.3 Translation losses — 0.6 0.6 Projected benefit obligation at end of year $ 8.6 $ 13.1 $ 21.7 Change in Plan Assets Plan assets beginning of year $ 6.9 $ 5.8 $ 12.7 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.0) (1.4) Settlement gains — 0.2 0.2 Actual return on plan assets 1.3 (0.1) 1.2 Translation gains — 0.2 0.2 Fair value at end of year $ 8.1 $ 5.9 $ 14.0 Funded Status of Plan Projected benefit obligation $ (8.6) $ (13.1) $ (21.7) Fair value of plan assets 8.1 5.9 14.0 Unfunded status $ (0.5) $ (7.2) $ (7.7) The accumulated benefit obligation for the U.S. Plans equaled $9.5 million and $8.6 million at the end of 2020 and 2019, respectively. The accumulated benefit obligation for the International Plans equaled $13.4 million and $13.1 million at the end of 2020 and 2019, respectively. Periodic Pension Costs The components of net periodic pension cost were as follows: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 1.0 $ 1.0 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5) (0.1) (0.6) Curtailment gain — (0.3) (0.3) Net periodic pension (benefit) cost $ (0.2) $ 0.7 $ 0.5 December 28, 2019 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.2 0.5 Expected return on plan assets (0.5) — (0.5) Net periodic pension (benefit) cost $ (0.2) $ 1.0 $ 0.8 December 29, 2018 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5) — (0.5) Recognized net gain due to settlement — (0.3) (0.3) Net periodic pension (benefit) cost $ (0.2) $ 0.6 $ 0.4 Accumulated Other Comprehensive (Loss) Income Amounts included in accumulated other comprehensive (loss) income, net of tax, at year-end which have not yet been recognized in net periodic benefit cost were as follows: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.4) $ (0.7) $ (1.1) Total accumulated other comprehensive loss $ (0.4) $ (0.7) $ (1.1) December 28, 2019 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.1) $ (0.9) $ (1.0) Total accumulated other comprehensive loss $ (0.1) $ (0.9) $ (1.0) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial (loss) income $ (0.1) $ 0.4 $ 0.3 Total accumulated other comprehensive (loss) income $ (0.1) $ 0.4 $ 0.3 Actuarial Assumptions The following table summarizes the weighted average actuarial assumptions used to determine the projected benefit obligation: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 U.S. Plans Discount rate 2.0 % 3.0 % 4.0 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 6.3 % International Plans Discount rate 1.3 % 1.1 % 2.4 % Expected long-term rate of return on plan assets 2.1 % 1.3 % 2.7 % Rate of compensation increase 1.2 % 2.7 % 1.4 % CPI Inflation factor 0.1 % 0.3 % 0.3 % The following table summarizes the weighted average actuarial assumptions used to determine net periodic benefit cost: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 U.S. Plans Discount rate 3.0 % 4.0 % 3.5 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 6.3 % International Plans Discount rate 1.3 % 1.1 % 2.4 % Expected long-term rate of return on plan assets 2.1 % 1.3 % 2.7 % Inflation factor 0.1 % 0.3 % 0.3 % The Company utilizes a yield curve analysis to determine the discount rates for its DB plan obligations. The yield curve considers pricing and yield information for high quality corporate bonds with maturities matched to estimated payouts of future pension benefits. The Company evaluates its assumption regarding the estimated long-term rate of return on plan assets based on historical experience, future expectations of investment returns, asset allocations, and its investment strategy. The Company’s long-term rate of return on plan assets reflect expectations of projected weighted average market returns of plan assets. Changes in expected returns on plan assets also reflect any adjustments to the Company’s targeted asset allocation. Asset Mix Our DB plans weighted-average asset allocations by asset category were as follows: January 2, 2021 December 28, 2019 U.S. Plans Equity securities 48.2 % 46.3 % Fixed income investments 51.8 % 53.7 % International Plans Equity securities 57.3 % 56.8 % Fixed income investments 32.6 % 33.2 % Real estate 10.1 % 10.0 % Plan Assets Our investment policy is that plan assets will be managed utilizing an investment philosophy and approach characterized by all of the following, listed in priority order: (1) emphasis on total return, (2) emphasis on high-quality securities, (3) sufficient income and stability of income, (4) safety of principal with limited volatility of capital through proper diversification and (5) sufficient liquidity. The target allocation percentages for the U.S. Plans’ assets range between 30% to 45% in equity securities and 55% to 70% in fixed income investments. The target allocation percentages for the International Plans’ assets range between 50% to 80% in equity securities, 20% to 50% in fixed income investments, 0% to 30% in real estate and 0% to 15% in alternative investments. None of our equity or debt securities are included in plan assets. Cash Flows We expect to contribute $0.7 million to the DB plans during the 2021 fiscal year. The following benefit payments are expected to be paid in the periods indicated below: (in millions of U.S. dollars) U.S. International Total Expected benefit payments FY 2021 $ 0.5 $ 1.1 $ 1.6 FY 2022 0.5 0.7 1.2 FY 2023 0.5 0.5 1.0 FY 2024 0.5 0.7 1.2 FY 2025 0.5 0.6 1.1 FY 2026 through FY 2030 2.6 9.2 11.8 The fair values of the Company’s U.S. Plan assets are measured daily at their net asset value and valued at $9.1 million and $8.1 million at January 2, 2021 and December 28, 2019, respectively. The fair values of the Company’s International Plan assets at January 2, 2021 and December 28, 2019 were as follows: January 2, 2021 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.8 — — Fixed income: Non-U.S. bonds 1.6 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.4 $ 2.6 $ — December 28, 2019 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.7 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.3 $ 2.6 $ — |
Consolidated Accumulated Other
Consolidated Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jan. 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
Consolidated Accumulated Other Comprehensive (Loss) Income | Consolidated Accumulated Other Comprehensive (Loss) Income With the Traditional Business Divestiture in 2018, the foreign currency translation balances associated with the Traditional Business were recognized in earnings in the period of disposition. Changes in consolidated accumulated other comprehensive (loss) income (“AOCI”) by component for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 were as follows: (in millions of U.S. dollars) 1 Gains and Losses on Derivative Instruments Pension Benefit Plan Items Currency Translation Adjustment Items Total Balance December 31, 2017 $ (1.4) $ (16.8) $ (76.2) $ (94.4) OCI before reclassifications (14.5) 0.2 (25.5) (39.8) Amounts reclassified from AOCI 6.2 16.9 9.4 32.5 Net current-period OCI (8.3) 17.1 (16.1) (7.3) Balance December 29, 2018 $ (9.7) $ 0.3 $ (92.3) $ (101.7) OCI before reclassifications 12.9 (1.3) 13.6 25.2 Amounts reclassified from AOCI 8.0 — — 8.0 Net current-period OCI 20.9 (1.3) 13.6 33.2 Balance December 28, 2019 $ 11.2 $ (1.0) $ (78.7) $ (68.5) OCI before reclassifications (8.7) (0.1) (6.9) (15.7) Amounts reclassified from AOCI (2.5) — — (2.5) Net current-period OCI (11.2) (0.1) (6.9) (18.2) Balance January 2, 2021 $ — $ (1.1) $ (85.6) $ (86.7) ______________________ 1 All amounts are net of tax. The following table summarizes the amounts reclassified from AOCI to total net (loss) income for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: (in millions of U.S. dollars) For the Year Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 January 2, 2021 December 28, 2019 December 29, 2018 Gains and losses on derivative instruments Foreign currency and commodity hedges $ 0.1 $ (8.0) $ (6.2) Cost of sales Commodity hedges 2 $ 2.4 $ — $ — Gain on sale of discontinued operations $ 2.5 $ (8.0) $ (6.2) Total before taxes — — — Tax (expense) or benefit $ 2.5 $ (8.0) $ (6.2) Net of tax Amortization of pension benefit plan items Recognized net actuarial loss 3 $ — $ — $ (16.9) Gain on sale of discontinued operations — — (16.9) Total before taxes — — — Tax (expense) or benefit $ — $ — $ (16.9) Net of tax Foreign currency translation adjustments — — (9.4) Gain on sale of discontinued operations Total reclassifications for the period $ 2.5 $ (8.0) $ (32.5) Net of tax ______________________ 1 Amounts in parenthesis indicate debits. 2 Net of $1.3 million of associated tax impact that resulted in a decrease to the gain on the sale of discontinued operations for the year ended January 2, 2021. 3 Net of $3.6 million of associated tax impact that resulted in an increase to the gain on the sale of discontinued operations for the year ended December 29, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and legal proceedings with respect to matters such as governmental regulations, and other actions arising out of the normal course of business. Management believes that the resolution of these matters will not have a material adverse effect on our financial position, results of operations, or cash flow. We had $50.6 million in standby letters of credit outstanding as of January 2, 2021 ($47.4 million—December 28, 2019; $46.1 million—December 29, 2018). We have future purchase obligations of $30.4 million that consist of commitments for the purchase of inventory, energy transactions, and payments related to professional fees and information technology outsourcing agreements. These obligations represent the minimum contractual obligations expected under the normal course of business. Guarantees After completion of the Traditional Business Divestiture, the Company continues to provide contractual payment guarantees to two third-party lessors of certain real property used in the Traditional Business. The leases were conveyed to Refresco as part of the Traditional Business Divestiture, but the Company’s guarantee was not released by the landlord. The two lease agreements mature in 2027 and 2028. The maximum potential amount of undiscounted future payments under the guarantee is approximately $19.0 million as of January 2, 2021 was calculated based on the minimum lease payments of the leases over the remaining term of the agreements. The sale documents require Refresco to pay all post-closing obligations under these conveyed leases, and to reimburse us if the landlord calls on a guarantee. Refresco has also agreed to a covenant to negotiate with the landlords for a release of our guarantees. Discussions with the landlords are ongoing. We currently do not believe it is probable we would be required to perform under any of these guarantees or any of the underlying obligations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures , defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Fair Value of Financial Instruments The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, receivables, payables, short-term borrowings and long-term debt approximate their respective fair values, except as otherwise indicated. The carrying values and estimated fair values of our significant outstanding debt as of January 2, 2021 and December 28, 2019 were as follows: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Carrying Value Fair Value Carrying Value Fair Value 5.500% senior notes due in 2024 1, 2 $ — $ — $ 493.5 $ 514.5 5.500% senior notes due in 2025 1, 2 743.0 767.2 741.8 775.3 3.875% senior notes due in 2028 1, 2 543.6 559.9 — — Total $ 1,286.6 $ 1,327.1 $ 1,235.3 $ 1,289.8 ______________________ 1 The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 2 financial instruments. 2 Carrying value of our significant outstanding debt is net of unamortized debt issuance costs as of January 2, 2021 and December 28, 2019 (see Note 17 to the Consolidated Financial Statements). Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a non-recurring basis. These assets can include goodwill, intangible assets, property, plant and equipment, lease-related right-of-use assets, and long-lived assets that have been reduced to fair value when they are held for sale. If certain triggering events occur, or if an annual impairment test is required, we would evaluate these non-financial assets for impairment. If an impairment were to occur, the asset would be recorded at the estimated fair value, using primarily unobservable Level 3 inputs. During the second quarter of 2020, given the general deterioration in economic and market conditions in which we operate arising from the COVID-19 pandemic, we identified a triggering event indicating possible impairment of goodwill and intangible assets. See Note 1 to the Consolidated Financial Statements for additional information on goodwill and intangible asset impairment. We did not identify impairment of our property, plant and equipment, lease-related right-of-use assets, or long-lived assets. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Jan. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) Year Ended January 2, 2021 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 474.2 $ 456.8 $ 517.5 $ 505.0 $ 1,953.5 Cost of sales 200.9 202.1 213.4 223.2 839.6 Gross profit 273.3 254.7 304.1 281.8 1,113.9 Selling, general and administrative expenses 255.1 246.7 257.2 247.6 1,006.6 Loss on disposal of property plant and equipment, net 1.4 2.5 2.3 4.4 10.6 Acquisition and integration expenses 20.8 4.3 3.3 5.3 33.7 Goodwill and intangible asset impairment charges — 115.2 — — 115.2 Operating (loss) income (4.0) (114.0) 41.3 24.5 (52.2) Net (loss) income from continuing operations (27.4) (131.7) 22.3 (20.0) (156.8) Net income (loss) from discontinued operations, net of income taxes 30.9 (4.3) (0.3) (1.2) 25.1 Net income (loss) attributable to Primo Water Corporation $ 3.5 $ (136.0) $ 22.0 $ (21.2) $ (131.7) Per share data: Net income (loss) per common share attributable to Primo Water Corporation Basic: Continuing operations $ (0.19) $ (0.82) $ 0.14 $ (0.12) $ (1.01) Discontinued operations $ 0.22 $ (0.03) $ — $ (0.01) $ 0.16 Net income (loss) $ 0.02 $ (0.85) $ 0.14 $ (0.13) $ (0.85) Diluted: Continuing operations $ (0.19) $ (0.82) $ 0.14 $ (0.12) $ (1.01) Discontinued operations $ 0.22 $ (0.03) $ — $ (0.01) $ 0.16 Net income (loss) $ 0.02 $ (0.85) $ 0.14 $ (0.13) $ (0.85) Year Ended December 28, 2019 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 427.7 $ 455.6 $ 472.1 $ 440.0 $ 1,795.4 Cost of sales 184.6 184.0 185.8 179.8 734.2 Gross profit 243.1 271.6 286.3 260.2 1,061.2 Selling, general and administrative expenses 235.8 245.7 244.2 236.5 962.2 Loss on disposal of property, plant and equipment, net 1.9 1.7 1.1 2.9 7.6 Acquisition and integration expenses 4.7 2.7 2.6 6.4 16.4 Operating income 0.7 21.5 38.4 14.4 75.0 Net (loss) income from continuing operations (22.7) 2.7 7.3 1.9 (10.8) Net income from discontinued operations, net of income taxes 3.0 1.7 2.8 6.2 13.7 Net (loss) income attributable to Primo Water Corporation $ (19.7) $ 4.4 $ 10.1 $ 8.1 $ 2.9 Per share data: Net (loss) income per common share attributable to Primo Water Corporation Basic: Continuing operations $ (0.17) $ 0.02 $ 0.05 $ 0.01 $ (0.08) Discontinued operations $ 0.03 $ 0.01 $ 0.02 $ 0.05 $ 0.10 Net (loss) income $ (0.14) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Diluted: Continuing operations $ (0.17) $ 0.02 $ 0.05 $ 0.01 $ (0.08) Discontinued operations $ 0.03 $ 0.01 $ 0.02 $ 0.05 $ 0.10 Net (loss) income $ (0.14) $ 0.03 $ 0.07 $ 0.06 $ 0.02 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 23, 2021, the Board of Directors declared a dividend of $0.06 per common share, payable in cash on March 29, 2021 to shareowners of record at the close of business on March 12, 2021. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 02, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions of U.S. dollars) Year Ended January 2, 2021 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (8.8) $ 0.1 $ (13.4) $ (4.0) $ 5.4 $ (20.7) Inventories (1.2) — (0.6) — — (1.8) Deferred tax assets (120.3) — (28.5) (7.7) — (156.5) $ (130.3) $ 0.1 $ (42.5) $ (11.7) $ 5.4 $ (179.0) (in millions of U.S. dollars) Year Ended December 28, 2019 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (9.6) $ — $ (12.7) $ 0.1 $ 13.4 $ (8.8) Inventories (1.4) — — — 0.2 (1.2) Deferred tax assets (98.0) — (19.7) (2.6) — (120.3) $ (109.0) $ — $ (32.4) $ (2.5) $ 13.6 $ (130.3) (in millions of U.S. dollars) Year Ended December 29, 2018 Description Balance at Beginning of Year Reduction in Sales Charged to Costs and Expenses Charged to Other Accounts Deductions 1 Balance at End of Year Reserves deducted in the balance sheet from the asset to which they apply Allowances for losses on: Accounts receivables $ (8.0) $ — $ (13.7) $ 9.8 $ 2.3 $ (9.6) Inventories (1.5) — (0.3) — 0.4 (1.4) Deferred tax assets 2 (129.1) — 4.2 26.9 — (98.0) $ (138.6) $ — $ (9.8) $ 36.7 $ 2.7 $ (109.0) ______________________ 1 Deductions primarily represent uncollectible accounts written off. 2 Amounts charged to other accounts include $35.1 million related to the release of the U.S. valuation allowance recorded through discontinued operations as a result of the Traditional Business Divestiture. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) using the U.S. dollar as the reporting currency, as the majority of our business and the majority of our shareowners are in the United States. Our fiscal year is based on either a 52- or 53- week period ending on the Saturday closest to December 31. For the fiscal year ended January 2, 2021, we had 53- weeks of activity, compared to 52- weeks of activity for the fiscal years ended December 28, 2019 and December 29, 2018. We estimate the additional week contributed $19.4 million of additional revenue and $3.9 million of additional operating income for the fiscal year ended January 2, 2021. |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include our accounts, our wholly-owned and majority-owned subsidiaries that we control. All intercompany transactions and accounts have been eliminated in consolidation. |
Discontinued Operations | Discontinued Operations On February 28, 2020, we completed the sale of our coffee, tea and extract solutions business, S. & D. Coffee, Inc. (“S&D”) for consideration of $405.0 million paid at closing in cash, with customary post-closing working capital adjustments, which were resolved in June 2020 by payment of 1.5 million from the Company to the purchasers of S&D. As a result of this transaction representing a strategic shift in our operations, the Company has reclassified the financial results of our discontinued operations to net income from discontinued operations, net of income taxes in the Consolidated Statements of Operations for the years ended December 28, 2019 and December 29, 2018. The assets and liabilities associated with S&D have been reflected as current and long-term assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of December 28, 2019. Cash flows from our discontinued operations are presented in the Consolidated Statements of Cash Flows for the years ended December 28, 2019 and December 29, 2018. The Notes to the Consolidated Financial Statements are presented on a continuing operations basis unless otherwise noted. In July 2017, we entered into a Share Purchase Agreement with Refresco Group B.V., a Dutch company (“Refresco”), pursuant to which we sold to Refresco, on January 30, 2018, our carbonated soft drinks and juice businesses and our Royal Crown International finished goods export business (collectively, the “Traditional Business” and such transaction, the “Traditional Business Divestiture”). The Traditional Business Divestiture was structured as a sale of the assets of our Canadian business and a sale of the stock of the operating subsidiaries engaged in the Traditional Business in the other jurisdictions after we completed an internal reorganization. The aggregate deal consideration was $1.25 billion, paid at closing in cash, with customary post-closing adjustments resolved in December 2018 by the payment of 7.9 million from the Company to Refresco. The sale of the Traditional Business represented a strategic shift and had a major effect on our operations and, therefore, the Traditional Business is presented herein as discontinued operations. The Traditional Business excludes our North America and Rest of World reporting segments, and our Cott Beverages LLC business. See Note 2 to the Consolidated Financial Statements for additional information on discontinued operations. |
Estimates | Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Consolidated Financial Statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, realization of deferred income tax assets, the resolution of tax contingencies and projected benefit plan obligations. |
Revenue Recognition, Sales incentives and Cost of sales | Revenue Recognition We recognize revenue, net of sales returns, when ownership passes to customers for products manufactured in our own plants and/or by third-parties on our behalf, and when prices to our customers are fixed or determinable and collection is reasonably assured. This may be upon shipment of goods or upon delivery to the customer, depending on contractual terms. Shipping and handling costs paid by the customer to us are included in revenue. Although we occasionally accept returns of products from our customers, historically returns have not been material. We also recognize rental income on filtration, brewers and dispensing equipment at customer locations based on the terms of the related rental agreements, which are generally measured based on 28-day periods. Amounts billed to customers for rental in future periods are deferred and included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. Sales Incentives We participate in various incentive programs with our customers, including volume-based incentives, contractual rebates and promotional allowances. Volume incentives are based on our customers achieving volume targets for a period of time. Volume incentives and contractual rebates are deducted from revenue and accrued as the incentives are earned and are based on management’s estimate of the total the customer is expected to earn and claim. Promotional allowances are accrued at the time of revenue recognition and are deducted from revenue based on either the volume shipped or the volume sold at the retailer location, depending on the terms of the allowance. We regularly review customer sales forecasts to ensure volume targets will be met and adjust incentive accruals and revenues accordingly. Cost of Sales We record costs associated with the manufacturing of our products in cost of sales. Shipping and handling costs incurred to store, prepare and move products between production facilities or from production facilities to branch locations or storage facilities are recorded in cost of sales. Shipping and handling costs incurred to deliver products from our North America and Rest of World reporting segments branch locations to the end-user consumer of those products are recorded in selling, general and administrative (“SG&A”) expenses. All other costs incurred in shipment of products from our production facilities to customer locations are reflected in cost of sales. Shipping and handling costs included in SG&A were $441.4 million, $479.3 million, and $461.7 million for the years ended January 2, 2021, December 28, 2019, and December 29, 2018, respectively. Finished goods inventory costs include the cost of direct labor and materials and the applicable share of overhead expense chargeable to production. |
Selling, General and Administrative Expenses | Selling, General and Administrative ExpensesWe record all other expenses not charged to production as SG&A expenses. Advertising costs are expensed at the commencement of an advertising campaign and are recognized as a component of SG&A expenses. |
Share-Based Compensation | Share-Based Compensation We have in effect equity incentive plans under which Time-based RSUs, Performance-based RSUs, non-qualified stock options and director share awards have been granted (as such terms are defined in Note 9 of the Consolidated Financial Statements). Share-based compensation expense for all share-based compensation awards is based on the grant-date fair value. We recognized these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years, and account for forfeitures when they occur. The fair value of the Company’s Time-based RSUs, Performance-based RSUs and director share awards are based on the closing market price of its common shares on the date of grant as stated on the NYSE. We estimate the fair value of non-qualified options as of the date of grant using the Black-Scholes option pricing model. This model considers, among other factors, the expected life of the award, the expected volatility of the Company’s share price, and expected dividends. The Company records share-based compensation expense in SG&A expenses. All excess tax benefits and tax deficiencies related to share-based compensation are recognized in results of operations at settlement or expiration of the award. The excess tax benefit or deficiency is calculated as the difference between the grant date price and the price of our common shares on the vesting or exercise date. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities not exceeding three months at the time of purchase. The fair values of our cash and cash equivalents approximate the amounts shown on our Consolidated Balance Sheets due to their short-term nature. |
Accounts Receivable, Net of Allowance for Credit Losses | Accounts Receivable, Net of Allowance for Credit Losses All trade accounts receivable are uncollected amounts owed to us from transactions with our North America and Rest of World customers. Trade accounts receivable represent amounts billed to customers and not yet collected, and are presented net of allowance for credit losses. We estimate an allowance for credit losses based on historical loss experience, adverse situations that may affect a customer's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Customer demographic, such as large commercial customers as compared to small businesses or individual customers, and the customer's geographic market are also considered when estimating credit losses. Historical loss experience was based on actual loss rates over a one year period. Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. |
Inventories | Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or net realizable value. Finished goods and work-in-process include the inventory costs of raw materials, direct labor and manufacturing overhead costs. As a result, we use an inventory reserve to adjust our inventory costs down to a net realizable value and to reserve for estimated obsolescence of both raw materials and finished goods. |
Customer Deposits | Customer Deposits The Company generally collects deposits on multi-gallon bottles used by our residential and commercial water delivery customers. Such deposits are refunded only after customers return such bottles in satisfactory condition. The associated bottle deposit liability is estimated based on the number of water customers, average consumption and return rates and bottle deposit market rates. The Company analyzes these assumptions quarterly and adjusts the bottle deposit liability as necessary. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is allocated between cost of sales and SG&A expenses and is determined using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the remaining life of the lease or useful life of the asset, whichever is shorter. Maintenance and repairs are charged to operating expense when incurred. |
Leases | Leases We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. At inception, we determine whether an agreement represents a lease and, at commencement, we evaluate each lease agreement to determine whether the lease constitutes an operating or financing lease. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. We adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02 - Leases as of December 30, 2018 using the cumulative-effect adjustment method and elected the package of practical expedients permitted in Accounting Standards Codification (“ASC”) Topic 842. Accordingly, we accounted for our existing leases as operating or finance leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 29, 2018) would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. We also elected to not separate lease components from non-lease components for all fixed payments. Adoption of ASU 2016-02 did not have a material impact on the Company’s cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of operating lease right-of-use assets and operating lease obligations on our balance sheet. Right-of-use lease assets represent our right to use the underlying asset for the lease term, and the operating lease obligation represents our commitment to make the lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with terms of one-year or less. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. |
Goodwill | Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually. The following table summarizes our goodwill on a reporting segment basis as of January 2, 2021 and December 28, 2019: Reporting Segment (in millions of U.S. dollars) North America Rest of World All Other Total Balance December 29, 2018 Goodwill $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Accumulated impairment losses — — — — $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Goodwill acquired during the year 17.4 17.9 — 35.3 Measurement period adjustments (3.1) — — (3.1) Divestitures — — (4.5) (4.5) Foreign exchange 1.0 (7.3) — (6.3) Balance December 28, 2019 Goodwill 673.1 374.4 — 1,047.5 Accumulated impairment losses — — — — $ 673.1 $ 374.4 $ — $ 1,047.5 Goodwill acquired during the year 343.3 5.6 — 348.9 Measurement period adjustments (35.9) — — (35.9) Impairment losses — (104.1) — (104.1) Foreign exchange 1.6 26.3 — 27.9 Balance January 2, 2021 Goodwill 982.1 406.3 — 1,388.4 Accumulated impairment losses — (104.1) — (104.1) $ 982.1 $ 302.2 $ — $ 1,284.3 The Company operates through two operating segments: North America and Rest of World. These two operating segments are also reportable segments. We test goodwill for impairment at least annually on the first day of the fourth quarter, based on our reporting unit carrying values, calculated as total assets less non-interest bearing liabilities, as of the end of the third quarter, or more frequently if we determine a triggering event has occurred during the year. During the second quarter of 2020, given the general deterioration in economic and market conditions in which we operate arising from the COVID-19 pandemic, we identified a triggering event indicating possible impairment of goodwill and intangible assets, as further described below. We did not identify impairment of our property, plant and equipment, lease-related right-of-use assets, or long-lived assets. We evaluate goodwill for impairment on a reporting unit basis, which is an operating segment or a level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment can be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Our North America operating segment was determined to have three components: DSS, Mountain Valley, and Aquaterra. We have determined that DSS and Aquaterra have similar economic characteristics and have aggregated them as a single reporting unit for the purpose of testing goodwill for impairment (“DSSAqua”). Our Rest of World operating segment was determined to have four components: Eden, Aimia, Decantae, and Farrers, none of which have similar economic characteristics. For the purpose of testing goodwill for impairment in 2020, we have determined reporting units are DSSAqua, Mountain Valley, Eden, Aimia, Decantae, and Farrers. Due to the triggering event identified above arising from the impact of the COVID-19 pandemic, we first performed a qualitative assessment of goodwill to determine whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. Based on this qualitative assessment, we determined that it was more likely than not that the fair value of our Eden, Aimia, Decantae, and Farrers reporting units did not exceed their respective carrying values. As a result, we performed an interim quantitative impairment test as of June 27, 2020 on these reporting units. We determined the fair value of the reporting units being evaluated using a mix of the income approach (which is based on the discounted cash flows of the reporting unit) and the guideline public company approach. We weighted the income approach and the guideline public company approach at 50% each to determine the fair value of the reporting unit. We believe using a combination of these approaches provides a more accurate valuation because it incorporates the expected cash generation of the Company in addition to how a third-party market participant would value the reporting unit. As the business is assumed to continue in perpetuity, the discounted future cash flows includes a terminal value. Critical assumptions used in our valuation of the Eden reporting unit included the anticipated future cash flows, a weighted-average terminal revenue growth rate of 1.5% and a discount rate of 9.5%. Critical assumptions used in our valuation of the Aimia, Decantae, and Farrers reporting units included a weighted-average terminal revenue growth rate of 2.0% and a discount rate of 11.5%. The anticipated future cash flows assumption reflects projected revenue growth rates, SG&A expenses and capital expenditures. The terminal growth rate assumption incorporated into the discounted cash flow calculation reflects our long-term view of the market and industry, projected changes in the sale of our products, pricing of such products and operating profit margins. The discount rate was determined using various factors and sensitive assumptions, including bond yields, size premiums and tax rates. This rate was based on the weighted average cost of capital a market participant would use if evaluating the reporting unit as an investment. These assumptions are considered significant unobservable inputs and represent our best estimate of assumptions that market participants would use to determine the fair value of the respective reporting units. The key inputs into the discounted cash flow analysis were consistent with market data, where available, indicating that the assumptions used were in a reasonable range of observable market data. Based on the quantitative assessment including consideration of the sensitivity of the assumptions made and methods used to determine fair value, industry trends and other relevant factors, we noted that the estimated fair value of the Aimia reporting unit exceeded its carrying value by approximately 23.5%. Therefore, no goodwill impairment charge was recorded for the Aimia reporting unit. Based on the quantitative assessment including consideration of the sensitivity of the assumptions made and methods used to determine fair value, industry trends and other relevant factors, we determined that goodwill was impaired for the Eden, Decantae, and Farrers reporting units and recognized impairment charges of $103.3 million, $0.3 million and $0.5 million, respectively. These impairment charges are included in goodwill and intangible asset impairment charges in the Consolidated Statement of Operations for the year ended January 2, 2021. We had goodwill of $1,284.3 million on our Consolidated Balance Sheet at January 2, 2021, which represents amounts for the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units. For purposes of the 2020 annual test, we elected to perform a qualitative assessment for our DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units to assess whether it was more likely than not that the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management relied on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. Based on these factors, management concluded that it was more likely than not that the fair values of the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units were greater than their respective carrying amounts, including goodwill, indicating no impairment. Goodwill allocated to the DSSAqua, Mountain Valley, Eden, Aimia, and Decantae reporting units as of January 2, 2021 are $966.1 million, $16.0 million, $246.3 million, $54.6 million, and $1.3 million, respectively. Each year during the fourth quarter, we re-evaluate the assumptions used in our assessments, such as revenue growth rates, SG&A expenses, capital expenditures and discount rates, to reflect any significant changes in the business environment that could materially affect the fair value of our reporting units. Based on the evaluations performed in 2020, we determined that the fair value of each of our reporting units exceeded their carrying amounts. |
Intangible Assets | Intangible Assets As of January 2, 2021, our intangible assets subject to amortization, net of accumulated amortization were $532.1 million, consisting principally of $485.2 million of customer relationships that arose from acquisitions, $24.3 million of software, and $12.8 million of patents. Customer relationships are typically amortized on an accelerated basis for the period over which we expect to receive the economic benefits. The customer relationship intangible assets acquired in our acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the estimated undiscounted after-tax cash flows. We review the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a loss of a significant customer. Our review of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in the intangible asset would result in either an impairment in the value of the intangible asset or an accelerated amortization of any remaining value and could lead to an impairment of the fixed assets that were used to service that customer. In 2020, we recorded $245.2 million in customer relationships acquired with the Legacy Primo Acquisition (as defined in Note 5 to the Consolidated Financial Statements). We did not record impairment charges for our intangible assets subject to amortization in 2020, 2019 or 2018. Our intangible assets with indefinite lives relate to trademarks acquired in the acquisition of Legacy Primo (the “Legacy Primo Trademarks”), trademarks acquired in the acquisition of DSS (the “DSS Trademarks”), trademarks acquired in the acquisition of Eden (the “Eden Trademarks”), trademarks acquired in the acquisition of Aquaterra (the “Aquaterra Trademarks”), trademarks acquired in the Mountain Valley Acquisition (the “Mountain Valley Trademarks”) and trademarks acquired in the Crystal Rock Acquisition (the “Crystal Rock Trademarks”). These assets have an aggregate net book value of $455.5 million as of January 2, 2021. There are no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. The life of the Legacy Primo Trademarks, DSS Trademarks, Eden Trademarks, Aquaterra Trademarks, Mountain Valley Trademarks and Crystal Rock Trademarks are considered to be indefinite and therefore these intangible assets are not amortized. Rather, they are tested for impairment at least annually or more frequently if we determine a triggering event has occurred during the year. We compare the carrying amount of the intangible asset to its fair value and when the carrying amount is greater than the fair value, we recognize an impairment loss. As a result of the triggering event described above arising from the impact of the COVID-19 pandemic, we performed recoverability tests on our intangible assets, primarily trademarks, within each of our reporting segments as of June 27, 2020. We assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of our trademarks with indefinite lives were less than their respective carrying value. The qualitative factors we assessed included macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant events, the impact of which are all significant judgments and estimates. Based on this qualitative assessment, we determined that impairment was more likely than not with the Eden Trademarks and the Aquaterra Trademarks. As a result, we performed an interim quantitative impairment test as of June 27, 2020 on these intangible assets. To determine the fair value of the trademarks with indefinite lives associated with our Eden and Aquaterra businesses, we use a relief from royalty method of the income approach, which calculates a fair value royalty rate that is applied to revenue forecasts associated with those trademarks. The resulting cash flows are discounted using a rate to reflect the risk of achieving the projected royalty savings attributable to the trademarks. The assumptions used to estimate the fair value of these trademarks are subjective and require significant management judgment, including estimated future revenues, the royalty rate (which is estimated to be a reasonable market royalty charge that would be charged by a licensor of the trademarks) and the risk adjusted discount rate. Based on our impairment test, we determined the Eden Trademarks and the Aquaterra Trademarks were impaired and recognized impairment charges of $9.9 million and $1.2 million, respectively. These impairment charges are included in goodwill and intangible asset impairment charges in the Consolidated Statement of Operations for the year ended January 2, 2021. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived AssetsWhen adverse events occur, we compare the carrying amount of long-lived assets to the estimated undiscounted future cash flows at the lowest level of independent cash flows for the group of long-lived assets and recognize any impairment loss based on discounted cash flows in the Consolidated Statements of Operations, taking into consideration the timing of testing and the asset’s remaining useful life. The expected life and value of these long-lived assets is based on an evaluation of the competitive environment, history and future prospects as appropriate. We did not record impairments of long-lived assets in 2020, 2019 or 2018. As part of normal business operations, we identify long-lived assets that are no longer productive and dispose of them. Losses on disposals of assets are presented separately in our Consolidated Statements of Operations as part of operating income. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of non-U.S. active operations, all of which are self-sustaining, are translated to U.S. dollars at the exchange rates in effect at the balance sheet dates. Revenues and expenses are translated using average monthly exchange rates prevailing during the period. The resulting gains or losses are recorded in accumulated other comprehensive (income) loss. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amount of assets and liabilities and their respective tax bases, using currently enacted income tax rates. A valuation allowance is established to reduce deferred income tax assets if, on the basis of available evidence, it is not more likely than not that all or a portion of any deferred tax assets will be realized. The consideration of available evidence requires significant management judgment including an assessment of the future periods in which the deferred tax assets and liabilities are expected to be realized and projections of future taxable income. The ultimate realization of the deferred tax assets, including net operating losses, is dependent upon the generation of future taxable income during the periods prior to their expiration. If our estimates and assumptions about future taxable income are not appropriate, the value of our deferred tax assets may not be recoverable, which may result in an increase to our valuation allowance that will impact current earnings. We account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, based on the technical merits. The second step requires management to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations, and we include accrued interest and penalties within the other long-term liabilities line in the accompanying Consolidated Balance Sheets. |
Pension Costs | Pension Costs We record annual amounts relating to defined benefit pension plans based on calculations, which include various actuarial assumptions such as discount rates and assumed rates of return on plan assets depending on the pension plan. Material changes in pension costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the discount rate, changes in the expected long-term rate of return on plan assets, changes in the level of contributions to the plans and other factors. The funded status is the difference between the fair value of plan assets and the benefit obligation. Future actuarial gains or losses that are not recognized as net periodic benefits cost in the same periods will be recognized as a component of other comprehensive income. The service cost component of net periodic pension cost is included in cost of sales and SG&A and all other components are included in other expense (income), net in the Consolidated Statements of Operations. |
Recently Adopted and issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Update ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326), Update ASU 2019-05 – Financial Instruments—Credit Losses—Targeted Transition Relief (Topic 326) and Update ASU 2019-11 – Codification Improvements to Financial Instruments—Credit Losses (Topic 326) In June 2016, the FASB amended its guidance to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The amended guidance also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. In May 2019, the FASB amended the original guidance by providing an option to irrevocably elect the fair value option for certain financial instruments previously measured at amortized cost basis. In November 2019, the FASB provided additional guidance around how to report expected recoveries. For public entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Effective December 29, 2019, we adopted the guidance in this amendment using the modified retrospective transition method. The adoption of this new standard, with the impact being the increase in allowance for doubtful accounts related to our trade accounts receivable, resulted in a cumulative-effect adjustment of $3.6 million recognized to the opening balance of retained earnings. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. Update ASU 2018-13 – Fair Value Measurement (Topic 820) In August 2018, the FASB amended its guidance on disclosure requirements for fair value measurement. The update amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this update while delaying adoption of the additional disclosures until their effective date. We adopted the guidance in this amendment effective December 29, 2019 prospectively. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In August 2018, the FASB amended its guidance on customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update also requires customers to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. We adopted the guidance in this amendment effective December 29, 2019. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2019-04 – Codification Improvements to Topic 326—Financial Instruments—Credit Losses, Topic 815—Derivative and Hedging, and Topic 825—Financial Instruments In April 2019, the FASB amended its guidance to clarify and provide narrow-scope amendments for these three recent standards related to financial instruments accounting. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted the guidance in this amendment effective December 29, 2019. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2019-12 – Income Taxes—Simplifying the Accounting for Income Taxes (Topic 740) In December 2019, the FASB amended its guidance to remove certain exceptions to the general principles in Topic 740 and improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted the guidance in this amendment effective December 29, 2019. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Update ASU 2020-03 – Codification Improvements to Financial Instruments In March 2020, the FASB amended its guidance to clarify or improve the financial instrument topics in the existing guidance. These amendments make the guidance easier to understand and apply by eliminating inconsistencies and providing clarifications. Certain amendments in this update are effective upon issuance of this update. The remaining amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. We adopted the guidance in this amendment effective December 29, 2019. Adoption of the new standard did not have a material impact on our Consolidated Financial Statements. Recently issued accounting pronouncements Update ASU 2018-14 – Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) In August 2018, the FASB amended its guidance on disclosure requirements for defined benefit plans. The update amends existing annual disclosure requirements applicable to all employers that sponsor defined benefit pension and other postretirement plans by adding, removing, and clarifying certain disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and are to be applied on a retrospective basis to all periods presented. We are currently assessing the impact of adoption of this standard on our Consolidated Financial Statements. Update ASU 2020-04 – Reference Rate Reform (Topic 848) In March 2020, the FASB issued guidance which provides optional expedients and exceptions to account for contracts, hedging relationships and other transactions that reference LIBOR or any other reference rates expected to be discontinued because of reference rate reform. This guidance is effective as of March 12, 2020 through December 31, 2022 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through January 2, 2021 but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill by Segment | The following table summarizes our goodwill on a reporting segment basis as of January 2, 2021 and December 28, 2019: Reporting Segment (in millions of U.S. dollars) North America Rest of World All Other Total Balance December 29, 2018 Goodwill $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Accumulated impairment losses — — — — $ 657.8 $ 363.8 $ 4.5 $ 1,026.1 Goodwill acquired during the year 17.4 17.9 — 35.3 Measurement period adjustments (3.1) — — (3.1) Divestitures — — (4.5) (4.5) Foreign exchange 1.0 (7.3) — (6.3) Balance December 28, 2019 Goodwill 673.1 374.4 — 1,047.5 Accumulated impairment losses — — — — $ 673.1 $ 374.4 $ — $ 1,047.5 Goodwill acquired during the year 343.3 5.6 — 348.9 Measurement period adjustments (35.9) — — (35.9) Impairment losses — (104.1) — (104.1) Foreign exchange 1.6 26.3 — 27.9 Balance January 2, 2021 Goodwill 982.1 406.3 — 1,388.4 Accumulated impairment losses — (104.1) — (104.1) $ 982.1 $ 302.2 $ — $ 1,284.3 |
Summary of Restructuring Charges and Liability | The following table summarizes restructuring charges for the year ended January 2, 2021: For the Year Ended (in millions of U.S. dollars) January 2, 2021 North America $ 2.7 Rest of World 7.8 Total $ 10.5 The following table summarizes our restructuring liability as of January 2, 2021, along with charges to costs and expenses and cash payments. We expect to pay the remaining restructuring liability in the first half of 2021. Restructuring Liability (in millions of U.S. dollars) Balance at December 28, 2019 Charges to Costs and Expenses Cash Payments Balance at January 2, 2021 North America $ — $ 2.7 $ (2.7) $ — Rest of World — 7.8 (7.5) 0.3 Total $ — $ 10.5 $ (10.2) $ 0.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The major components of net income from discontinued operations, net of income taxes in the accompanying Consolidated Statements of Operations include the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Revenue, net 1 $ 97.1 $ 605.0 $ 698.8 Cost of sales 71.1 438.4 534.0 Operating (loss) income from discontinued operations (0.5) 15.4 18.1 Gain on sale of discontinued operations 53.7 — 427.9 Income from discontinued operations, before income taxes 53.1 15.7 419.5 Income tax expense 2, 3 28.0 2.0 51.4 Net income from discontinued operations, net of income taxes 25.1 13.7 368.1 Less: Net income attributable to non-controlling interests — — 0.6 Net income attributable to Primo Water Corporation – discontinued operations 4 $ 25.1 $ 13.7 $ 367.5 ______________________ 1 Includes related party sales to continuing operations of $1.0 million, $5.9 million and $5.7 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. 2 The Traditional Business Divestiture resulted in a taxable gain on sale in the U.S., which utilized a significant portion of the existing U.S. net operating loss carryforwards. As a result, the Company was in a net deferred tax liability position in the U.S. and thus a tax benefit of approximately $35.1 million related to a release of the U.S. valuation allowance was recorded in 2018 and is offsetting the overall income tax expense related to discontinued operations. The Traditional Business Divestiture resulted in a non-taxable gain on sale in the United Kingdom. No tax benefit resulted from the Traditional Business Divestiture related to the taxable loss on sale in Canada due to the Company's valuation allowance position. During 2019, $3.0 million of tax benefit was recorded related to the finalization of the U.S. tax gain calculation. 3 The S&D Divestiture resulted in tax expense of $28.5 million on the gain on sale in 2020 and utilized a significant portion of the existing U.S. net operating loss carryforwards. 4 Net income attributable to Primo Water Corporation - discontinued operations is inclusive of interest expense on short-term borrowings and debt required to be repaid or extinguished as part of divestiture of $3.4 million for the year ended December 29, 2018. Assets and liabilities of discontinued operations presented in the accompanying Consolidated Balance Sheet as of December 28, 2019 include the following: (in millions of U.S. dollars) December 28, 2019 ASSETS Cash and cash equivalents $ 48.6 Accounts receivable, net 62.6 Inventories 59.6 Prepaid expenses and other current assets 15.9 Current assets of discontinued operations 186.7 Property, plant and equipment, net 89.7 Operating lease right-of-use assets 17.5 Goodwill 128.2 Intangible assets, net 104.4 Long-term assets of discontinued operations $ 339.8 LIABILITIES Current maturities of long-term debt $ 0.5 Accounts payable and accrued liabilities 95.5 Current operating lease obligations 5.2 Current liabilities of discontinued operations 101.2 Long-term debt 1.1 Operating lease obligations 12.6 Deferred tax liabilities 36.8 Other long-term liabilities 3.0 Long-term liabilities of discontinued operations $ 53.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Operating lease cost $ 49.0 $ 47.7 Short-term lease cost 8.0 3.0 Finance lease cost Amortization of right-of-use assets $ 11.7 $ 4.5 Interest on lease liabilities 3.5 1.2 Total finance lease cost $ 15.2 $ 5.7 Sublease income $ 0.7 $ 0.8 Supplemental cash flow information related to leases was as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 52.2 $ 47.2 Operating cash flows from finance leases 3.6 1.1 Financing cash flows from finance leases 10.5 3.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 29.5 $ 25.0 Finance leases 52.2 28.6 |
Schedule of Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: (in millions of U.S. dollars, except lease term and discount rate) January 2, 2021 December 28, 2019 Operating leases Operating lease right-of-use assets $ 180.6 $ 185.7 Current operating lease obligations 35.5 36.5 Operating lease obligations 148.0 155.2 Total operating lease obligations $ 183.5 $ 191.7 Financing leases Property, plant and equipment, net $ 71.0 $ 30.4 Current maturities of long-term debt 13.2 5.8 Long-term debt 58.3 23.6 Total finance lease obligations $ 71.5 $ 29.4 Weighted Average Remaining Lease Term January 2, 2021 December 28, 2019 Operating leases 7.6 years 8.7 years Finance leases 5.5 years 5.6 years Weighted Average Discount Rate Operating leases 6.1 % 6.2 % Finance leases 4.9 % 6.3 % |
Schedule of Operating Lease Obligations | Maturities of operating lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 45.4 2022 35.1 2023 30.5 2024 25.2 2025 20.6 Thereafter 81.0 Total lease payments 237.8 Less imputed interest (54.3) Present value of lease obligations $ 183.5 |
Schedule of Finance Lease Obligations | Maturities of finance lease obligations were as follows: (in millions of U.S. dollars) January 2, 2021 2021 $ 16.5 2022 15.5 2023 14.5 2024 12.7 2025 11.6 Thereafter 11.6 Total lease payments 82.4 Less imputed interest (10.9) Present value of lease obligations $ 71.5 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Further disaggregation of net revenue to external customers by geographic area based on customer location is as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 United States $ 1,429.6 $ 1,210.0 $ 1,205.0 United Kingdom 142.2 172.0 173.2 Canada 64.1 67.0 64.1 All other countries 317.6 346.4 348.7 Total $ 1,953.5 $ 1,795.4 $ 1,791.0 |
Acquisitions - (Tables)
Acquisitions - (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Business Combinations [Abstract] | |
Schedule of Total Cash and Stock Consideration Paid | The total cash and stock consideration paid by us in the Legacy Primo Acquisition is summarized below: (in millions of U.S. dollars, except share and per share amounts) Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) $ 377.6 Cash to holders of Legacy Primo common stock 216.1 Cash paid to retire outstanding indebtedness on behalf of Legacy Primo 196.9 Settlement of pre-existing relationship 4.7 Fair value of replacement common share options and restricted stock units for Legacy Primo awards 2.9 Total consideration $ 798.2 |
Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the purchase price allocation of the assets acquired and the liabilities assumed: (in millions of U.S. dollars) Originally Reported Measurement Period Adjustments Acquired Value Cash and cash equivalents $ 1.3 $ — $ 1.3 Accounts receivable 21.9 (0.3) $ 21.6 Inventory 12.7 5.7 $ 18.4 Prepaid expenses and other current assets 4.3 1.0 $ 5.3 Property, plant and equipment 119.0 (11.2) $ 107.8 Operating lease right-of-use-assets 4.9 (0.6) $ 4.3 Goodwill 337.4 (36.2) $ 301.2 Intangible assets 361.3 60.3 $ 421.6 Other assets 3.9 (3.5) $ 0.4 Current maturities of long-term debt (2.2) (0.1) $ (2.3) Accounts payable and accrued liabilities (41.6) (0.4) $ (42.0) Current operating lease obligations (1.8) 0.4 $ (1.4) Long-term debt (5.8) 0.2 $ (5.6) Operating lease obligations (3.1) 0.1 $ (3.0) Deferred tax liabilities (11.7) (15.9) $ (27.6) Other long-term liabilities (2.3) 0.5 $ (1.8) Total $ 798.2 $ — $ 798.2 |
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 Legacy Primo Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Estimated Useful Life Customer relationships 245.2 26 years Trade names 174.9 Indefinite Software 1.5 3 years Total $ 421.6 |
Schedule of Indefinite-lived Intangible Assets Acquired | The following table sets forth the components of identified intangible assets associated with the Legacy Primo Acquisition and their estimated weighted average useful lives: (in millions of U.S. dollars) Estimated Fair Market Value Estimated Useful Life Customer relationships 245.2 26 years Trade names 174.9 Indefinite Software 1.5 3 years Total $ 421.6 |
Schedule of Pro Forma Financial Information | The unaudited pro forma financial information does not necessarily reflect the results of operations that would have occurred had we operated as a single entity during such periods. For the Year Ended (in millions of U.S. dollars, except per share amounts) January 2, 2021 December 28, 2019 Revenue $ 1,993.3 $ 2,064.5 Net loss from continuing operations $ (136.3) $ (20.5) Net loss $ (111.2) $ (6.8) Net loss per common share from continuing operations, diluted $ (0.88) $ (0.13) Net loss per common share, diluted $ (0.72) $ (0.04) |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income) | The following table summarizes other expense (income), net for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Foreign exchange losses (gains), net $ 1.5 $ 0.9 $ (7.1) Proceeds from legal settlements (1.9) — (14.9) (Gain) loss on sale of business (0.6) 6.0 (6.0) Transition services agreement service income — (0.3) (2.6) Loss (gain) on extinguishment of long-term debt 19.7 — (7.1) Other gains, net — (2.9) (4.3) Total $ 18.7 $ 3.7 $ (42.0) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Interest Expense | The following table summarizes interest expense, net for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Interest on long-term debt $ 68.7 $ 69.5 $ 72.2 Interest on short-term debt 5.0 4.3 — Other interest expense, net 7.9 3.8 5.4 Total $ 81.6 $ 77.6 $ 77.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income From Continuing Operations Before Income Taxes | Income (loss) from continuing operations, before income taxes consisted of the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Canada $ (88.4) $ (57.0) $ (26.1) Outside Canada (64.1) 50.7 33.2 (Loss) income from continuing operations, before income taxes $ (152.5) $ (6.3) $ 7.1 |
Income Tax (Benefit) Expense | Income tax expense (benefit) consisted of the following: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Current Canada $ — (0.2) $ — Outside Canada 1.9 12.2 3.8 $ 1.9 $ 12.0 $ 3.8 Deferred Canada $ — $ (1.0) $ (5.6) Outside Canada 2.4 (6.5) (6.5) $ 2.4 $ (7.5) $ (12.1) Income tax expense (benefit) $ 4.3 $ 4.5 $ (8.3) |
Reconciliation of Income Taxes | The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Income tax (benefit) expense based on Canadian statutory rates $ (40.4) $ (1.7) $ 1.9 Foreign tax rate differential (4.3) (10.0) (1.5) Local taxes 2.1 1.1 (0.6) Nontaxable interest income (8.7) (8.4) (9.8) Impairment expense 17.6 — — Impact of intercompany transactions and dividends 10.8 12.2 1.0 Income tax credits (0.5) (0.7) — Change in enacted tax rates (1.7) (0.1) 3.4 Change in valuation allowance 28.5 19.7 (4.2) Change in uncertain tax positions (1.5) 0.1 (1.8) Equity compensation 1.9 1.3 1.2 Permanent differences 1.6 1.3 0.8 Adjustments to deferred taxes (1.1) (10.4) 0.7 Other items — 0.1 0.6 Income tax expense (benefit) $ 4.3 $ 4.5 $ (8.3) |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Deferred tax assets Net operating loss carryforwards $ 196.4 $ 133.6 Capital loss carryforwards 14.5 12.0 Liabilities and reserves 32.0 25.7 Stock options 10.7 8.0 Inventories 2.4 3.4 Interest expense 9.8 11.3 Right of use lease obligations 50.7 44.6 316.5 238.6 Deferred tax liabilities Property, plant and equipment (65.0) (63.7) Intangible assets (191.8) (101.0) Right of use assets (50.1) (43.2) Other (0.7) (1.0) (307.6) (208.9) Valuation allowance (156.5) (120.3) Net deferred tax liability $ (147.6) $ (90.6) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Unrecognized tax benefits at beginning of year $ 16.9 $ 15.1 $ 15.8 Additions based on tax positions taken during a prior period — 5.0 1.3 Reductions based on tax positions taken during a prior period — (1.9) (0.1) Settlement on tax positions taken during a prior period (1.7) — — Tax rate change — — (0.1) Lapse in statute of limitations (1.0) (2.9) (4.3) Additions based on tax positions taken during the current period 1.3 1.7 3.0 Cash payments (0.2) (0.2) — Foreign exchange 0.3 0.1 (0.5) Unrecognized tax benefits at end of year $ 15.6 $ 16.9 $ 15.1 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Expense | The table below summarizes the share-based compensation expense for the years ended January 2, 2021, December 28, 2019, and December 29, 2018. Share-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Operations. As referenced below: (i) “Performance-based RSUs” represent restricted share units with performance-based vesting, (ii) “Time-based RSUs” represent restricted share units with time-based vesting, (iii) “Stock options” represent non-qualified stock options, (iv) “Director share awards” represent common shares issued in consideration of the annual board retainer fee to non-management members of our Board of Directors, and (v) the “ESPP” represents the Primo Water Corporation Employee Share Purchase Plan, under which common shares are issued to eligible employees at a discount through payroll deductions. For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 Stock options $ 5.5 $ 3.3 $ 5.3 Performance-based RSUs 7.8 5.7 7.0 Time-based RSUs 4.9 2.1 3.8 Director share awards 1.3 1.1 1.0 Liability-classified awards 2.9 — — Employee Share Purchase Plan 0.3 0.2 0.3 Total 1 $ 22.7 $ 12.4 $ 17.4 ______________________ 1 Includes $0.6 million and $0.7 million of share-based compensation expense from our discontinued operations, which were included in net income from discontinued operations, net of income taxes on the Consolidated Statements of Operations for the years ended January 2, 2021 and December 28, 2019, respectively, and a reduction of $1.7 million of share-based compensation expense from our discontinued operations, which were included in net income from discontinued operations, net of income taxes on the Consolidated Statement of Operations for the year ended December 29, 2018. |
Unrecognized Share-based Compensation Expense | As of January 2, 2021, the unrecognized share-based compensation expense and weighted average years over which we expect to recognize it as compensation expense were as follows: (in millions of U.S. dollars, except years) Unrecognized share-based compensation expense as of January 2, 2021 Weighted average years expected to recognize compensation Stock options $ 4.5 2.0 Performance-based RSUs 5.8 2.4 Time-based RSUs 4.0 2.0 Total $ 14.3 |
Schedule of Stock Option Assumptions | The grant date fair value of each option granted during 2020, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Risk-free interest rate 0.7 % 1.8 % 2.8 % Average expected life (years) 6.0 6.0 5.6 Expected volatility 36.2 % 29.0 % 28.8 % Expected dividend yield 1.6 % 1.8 % 1.6 % |
Stock Option Activity | The following table summarizes the activity for Company stock options: Stock Options (in thousands) Weighted average exercise price Weighted average contractual term (years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2017 5,006 $ 11.41 8.1 $ 26,952.3 Granted 1,182 14.67 Exercised (734) 10.04 4,408.1 Forfeited or expired (8) 10.64 Outstanding at December 29, 2018 5,446 $ 12.30 7.3 $ 11,993.0 Granted 1,138 13.68 Exercised (91) 10.47 389.1 Forfeited or expired — — Outstanding at December 28, 2019 6,493 $ 12.57 6.9 $ 11,045.4 Granted 1,054 15.48 Exercised (252) 10.27 1,185.9 Forfeited or expired (25) 11.98 Outstanding at January 2, 2021 7,270 $ 13.07 6.5 $ 20,659.3 Exercisable at January 2, 2021 5,146 $ 12.38 5.4 $ 18,572.7 Vested or expected to vest at January 2, 2021 7,270 $ 13.07 6.5 $ 20,659.3 |
Performance-based RSU and Time-Based RSU Activity | Number of Performance-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Number of Time-based RSUs (in thousands) Weighted Average Grant-Date Fair Value Balance at December 31, 2017 2,899 $ 9.15 502 $ 13.14 Awarded 312 14.67 208 14.67 Awarded in connection with modification 246 9.21 — — Issued (686) 9.32 (269) 13.07 Forfeited (1,106) 6.55 (14) 13.24 Balance at December 29, 2018 1,665 $ 13.90 427 $ 14.23 Awarded 285 13.69 216 13.69 Awarded in connection with modification 190 11.22 — — Issued (441) 11.30 (239) 13.38 Forfeited (100) 12.33 (7) 14.89 Outstanding at December 28, 2019 1,599 $ 14.36 397 $ 14.43 Awarded 458 15.64 542 14.85 Awarded in connection with modification 344 17.50 — — Issued (842) 16.80 (371) 13.82 Forfeited (374) 16.03 (20) 14.18 Outstanding at January 2, 2021 1,185 $ 15.27 548 $ 14.75 Vested or expected to vest at January 2, 2021 1,279 $ 15.44 548 $ 14.75 |
Common Shares and Net (Loss) _2
Common Shares and Net (Loss) Income per Common Share (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominators of Basic and Diluted Net (Loss) Income Per Common Share | Set forth below is a reconciliation of the numerator and denominator for the diluted net (loss) income per common share computations for the periods indicated: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Numerator (in millions): Net (loss) income attributable to Primo Water Corporation Continuing operations $ (156.8) $ (10.8) $ 15.4 Discontinued operations 25.1 13.7 367.5 Net (loss) income (131.7) 2.9 382.9 Basic Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 155,446 135,224 139,097 Basic Earnings Per Share: Continuing operations (1.01) (0.08) 0.11 Discontinued operations 0.16 0.10 2.64 Net (loss) income (0.85) 0.02 2.75 Diluted Earnings Per Share Denominator (in thousands): Weighted average common shares outstanding - basic 155,446 135,224 139,097 Dilutive effect of Stock Options — — 1,199 Dilutive effect of Performance based RSUs — — 900 Dilutive effect of Time-based RSUs — — 240 Weighted average common shares outstanding - diluted 155,446 135,224 141,436 Diluted Earnings Per Share: Continued operations (1.01) (0.08) 0.11 Discontinued operations 0.16 0.10 2.60 Net (loss) income (0.85) 0.02 2.71 |
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 (loss) income per common share for the periods indicated: For the Year Ended (in thousands) January 2, 2021 December 28, 2019 December 29, 2018 Stock options 7,270 6,493 2,095 Performance-based RSUs 1 1,185 1,594 564 Time-based RSUs 2 548 397 148 ______________________ 1 Performance-based RSUs represent the number of shares expected to be issued based on the estimated achievement of pre-tax income for these awards. 2 Time-based RSUs represent the number of shares expected to be issued based on known employee retention information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Operating Segment | January 2, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net $ 1,493.2 $ 460.3 $ — $ 1,953.5 Depreciation and amortization 142.4 58.4 1.3 202.1 Operating income (loss) 132.1 (111.4) (72.9) (52.2) Property, plant and equipment, net 550.7 134.1 0.8 685.6 Goodwill 982.1 302.2 — 1,284.3 Intangible assets, net 759.7 222.9 5.0 987.6 Total segment assets 1 2,729.7 841.3 33.7 3,604.7 Additions to property, plant and equipment 87.0 27.2 (0.2) 114.0 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. December 28, 2019 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net $ 1,269.8 $ 518.4 $ 7.2 $ 1,795.4 Depreciation and amortization 113.1 55.2 0.3 168.6 Operating income (loss) 92.7 29.1 (46.8) 75.0 Property, plant and equipment, net 433.2 123.8 1.1 558.1 Goodwill 673.1 374.4 — 1,047.5 Intangible assets, net 358.8 237.2 1.0 597.0 Total segment assets 1 1,874.5 941.6 48.3 2,864.4 Additions to property, plant and equipment 70.7 30.2 0.4 101.3 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. December 29, 2018 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net 1 $ 1,188.4 $ 521.9 $ 80.7 $ 1,791.0 Depreciation and amortization 113.5 57.2 1.0 171.7 Operating income (loss) 69.2 26.8 (53.3) 42.7 Additions to property, plant and equipment 72.3 40.0 2.5 114.8 ______________________ 1 All Other includes $4.2 million of related party concentrate sales to discontinued operations for the year ended December 29, 2018. Reconciliation of Segment Assets to Total Assets (in millions of U.S. dollars) December 28, 2019 Segment assets 1 $ 2,864.4 Assets of discontinued operations 1 526.5 Total assets $ 3,390.9 ______________________ 1 Excludes intersegment receivables, investments and notes receivable. |
Revenues by Geographic Area | Revenues are attributed to countries based on the location of the customer. Revenues generated from sales to external customers by geographic area were as follows: For the Year Ended (in millions of U.S. dollars) January 2, 2021 December 28, 2019 December 29, 2018 United States $ 1,429.6 $ 1,210.0 $ 1,205.0 United Kingdom 142.2 172.0 173.2 Canada 64.1 67.0 64.1 All other countries 317.6 346.4 348.7 Total $ 1,953.5 $ 1,795.4 $ 1,791.0 |
Revenues by Channel Reporting Segment | Revenues by channel by reporting segment were as follows: For the Year Ended January 2, 2021 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 965.8 $ 211.6 $ — $ 1,177.4 Water Refill/Water Filtration 175.1 29.3 — 204.4 Other Water 160.7 63.5 — 224.2 Water Dispensers 75.9 — — 75.9 Other 115.7 155.9 — 271.6 Total $ 1,493.2 $ 460.3 $ — $ 1,953.5 For the Year Ended December 28, 2019 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 905.1 $ 252.7 $ — $ 1,157.8 Water Refill/Water Filtration 35.6 26.8 — 62.4 Other Water 157.8 59.4 — 217.2 Other 171.3 179.5 7.2 358.0 Total $ 1,269.8 $ 518.4 $ 7.2 $ 1,795.4 For the Year Ended December 29, 2018 (in millions of U.S. dollars) North America Rest of World All Other Total Revenue, net Water Direct/Water Exchange $ 841.0 $ 261.5 $ — $ 1,102.5 Water Refill/Water Filtration 35.7 26.0 — 61.7 Other Water 159.5 55.5 — 215.0 Other 152.2 178.9 80.7 411.8 Total $ 1,188.4 $ 521.9 $ 80.7 $ 1,791.0 |
Property, Plant and Equipment by Geographic Area | Property, plant and equipment, net by geographic area as of January 2, 2021 and December 28, 2019 were as follows: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 United States $ 527.4 $ 415.7 United Kingdom 21.9 20.9 Canada 24.1 18.6 All other countries 1 112.2 102.9 Total $ 685.6 $ 558.1 ______________________ 1 No individual country is greater than 10% of total property, plant and equipment, net as of January 2, 2021 and December 28, 2019. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | The following table summarizes accounts receivable, net as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Trade receivables $ 226.5 $ 209.9 Allowance for doubtful accounts (20.7) (8.8) Other 16.5 15.6 Total $ 222.3 $ 216.7 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes inventories as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Raw materials $ 43.6 $ 23.8 Finished goods 28.0 24.2 Resale items 11.1 14.0 Other 1.1 0.9 Total $ 83.8 $ 62.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes property, plant and equipment, net as of January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Estimated Useful Life in Years Cost Accumulated Depreciation Net Cost Accumulated Depreciation Net Land n/a $ 95.8 $ — $ 95.8 $ 95.3 $ — $ 95.3 Buildings 10-40 93.5 32.2 61.3 88.9 26.9 62.0 Machinery and equipment 5-15 167.2 85.6 81.6 146.8 66.0 80.8 Plates, films and molds 1-10 1.8 0.9 0.9 1.5 0.6 0.9 Vehicles and transportation equipment 3-15 94.6 66.6 28.0 90.3 59.5 30.8 Leasehold improvements 1 21.0 13.1 7.9 19.8 10.7 9.1 IT Systems 3-7 17.8 12.2 5.6 15.6 9.9 5.7 Furniture and fixtures 3-10 12.7 10.1 2.6 12.0 8.6 3.4 Customer equipment 2 3-7 470.2 189.3 280.9 339.7 144.9 194.8 Returnable bottles 3 3-5 102.5 52.5 50.0 82.0 37.1 44.9 Finance leases 4 88.4 17.4 71.0 37.6 7.2 30.4 Total $ 1,165.5 $ 479.9 $ 685.6 $ 929.5 $ 371.4 $ 558.1 ______________________ 1 Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life. 2 Customer equipment consists of coolers, brewers, refrigerators, water purification devices and storage racks held on site at customer locations. 3 Returnable bottles are those bottles on site at customer locations. 4 Our recorded assets under finance leases relate to machinery and equipment, customer equipment, IT systems, customer equipment and vehicles and transportation equipment. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table summarizes intangible assets, net as of January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible Assets Not subject to amortization Trademarks $ 455.5 $ — $ 455.5 $ 287.1 $ — $ 287.1 Total intangible assets not subject to amortization $ 455.5 $ — $ 455.5 $ 287.1 $ — $ 287.1 Subject to amortization Customer relationships 809.5 324.3 485.2 534.9 267.5 267.4 Patents 19.2 6.4 12.8 15.2 4.0 11.2 Software 62.5 38.2 24.3 49.4 28.0 21.4 Other 15.9 6.1 9.8 14.9 5.0 9.9 Total intangible assets subject to amortization $ 907.1 $ 375.0 $ 532.1 $ 614.4 $ 304.5 $ 309.9 Total intangible assets $ 1,362.6 $ 375.0 $ 987.6 $ 901.5 $ 304.5 $ 597.0 |
Estimated Amortization Expense for Intangible Assets | The estimated amortization expense for intangible assets subject to amortization over the next five years is: (in millions of U.S. dollars) 2021 $ 60.3 2022 56.4 2023 48.0 2024 41.4 2025 35.6 Thereafter 290.4 Total $ 532.1 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Liabilities | The following table summarizes accounts payable and accrued liabilities as of January 2, 2021 and December 28, 2019: (in millions of U.S. dollars) January 2, 2021 December 28, 2019 Trade payables $ 135.2 $ 126.5 Accrued compensation 55.5 46.8 Accrued sales incentives 9.9 7.1 Accrued interest 14.8 23.9 Payroll, sales and other taxes 25.2 16.0 Accrued deposits 70.1 77.1 Self-insurance liabilities 15.5 17.5 Other accrued liabilities 61.5 55.7 Total $ 387.7 $ 370.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Our total debt as of January 2, 2021 and December 28, 2019 was as follows: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Principal Unamortized Debt Costs Net Principal Unamortized Debt Costs Net 5.500% senior notes due in 2024 $ — $ — $ — $ 499.3 $ 5.8 $ 493.5 5.500% senior notes due in 2025 750.0 7.0 743.0 750.0 8.2 741.8 3.875% senior notes due in 2028 551.9 8.3 543.6 — — — Revolving Credit Facility 104.8 — 104.8 — — — ABL facility — — — 92.0 — 92.0 Short-term borrowings 2.9 — 2.9 0.4 — 0.4 Finance leases 71.5 — 71.5 29.4 — 29.4 Other debt financing 4.9 — 4.9 1.3 — 1.3 Total debt $ 1,486.0 $ 15.3 $ 1,470.7 $ 1,372.4 $ 14.0 $ 1,358.4 Less: Short-term borrowings and current debt: Revolving Credit Facility 104.8 — 104.8 — — — ABL facility — — — 92.0 — 92.0 Short-term borrowings 2.9 — 2.9 0.4 — 0.4 Finance leases - current maturities 13.2 — 13.2 5.8 — 5.8 Other debt financing 4.7 — 4.7 1.1 — 1.1 Total current debt $ 125.6 $ — $ 125.6 $ 99.3 $ — $ 99.3 Total long-term debt $ 1,360.4 $ 15.3 $ 1,345.1 $ 1,273.1 $ 14.0 $ 1,259.1 |
Schedule of Long-term Debt Payments | The long-term debt payments (which include current maturities of long-term debt) required in each of the next five years and thereafter are as follows: (in millions of U.S. dollars) Long-Term Debt (including current) 2021 $ 125.6 2022 12.8 2023 12.4 2024 11.0 2025 760.7 Thereafter 563.5 $ 1,486.0 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Change in Benefit Obligations, Change in Plan Assets and Unfunded Status of DB Plans | The following table summarizes the change in the projected benefit obligation, change in plan assets and unfunded status of the DB plans as of January 2, 2021 and December 28, 2019: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 8.6 $ 13.1 $ 21.7 Service cost — 1.0 1.0 Interest cost 0.3 0.1 0.4 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.1) (1.5) Actuarial losses (gains) 1.0 (0.2) 0.8 Curtailment gains — (0.9) (0.9) Translation losses — 1.1 1.1 Projected benefit obligation at end of year $ 9.5 $ 13.4 $ 22.9 Change in Plan Assets Plan assets beginning of year $ 8.1 $ 5.9 $ 14.0 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (0.8) (1.2) Curtailment losses — (0.6) (0.6) Expected return on plan assets — 0.2 0.2 Actual return on plan assets 1.1 — 1.1 Translation gains — 0.5 0.5 Fair value at end of year $ 9.1 $ 6.0 $ 15.1 Funded Status of Plan Projected benefit obligation $ (9.5) $ (13.4) $ (22.9) Fair value of plan assets 9.1 6.0 15.1 Unfunded status $ (0.4) $ (7.4) $ (7.8) December 28, 2019 (in millions of U.S. dollars) U.S. International Total Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 7.9 $ 10.8 $ 18.7 Plan amendment — 0.4 0.4 Service cost — 0.8 0.8 Interest cost 0.3 0.2 0.5 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.5) (1.9) Actuarial losses 0.8 1.5 2.3 Translation losses — 0.6 0.6 Projected benefit obligation at end of year $ 8.6 $ 13.1 $ 21.7 Change in Plan Assets Plan assets beginning of year $ 6.9 $ 5.8 $ 12.7 Employer contributions 0.3 0.5 0.8 Plan participant contributions — 0.3 0.3 Benefit payments (0.4) (1.0) (1.4) Settlement gains — 0.2 0.2 Actual return on plan assets 1.3 (0.1) 1.2 Translation gains — 0.2 0.2 Fair value at end of year $ 8.1 $ 5.9 $ 14.0 Funded Status of Plan Projected benefit obligation $ (8.6) $ (13.1) $ (21.7) Fair value of plan assets 8.1 5.9 14.0 Unfunded status $ (0.5) $ (7.2) $ (7.7) |
Schedule of Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 1.0 $ 1.0 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5) (0.1) (0.6) Curtailment gain — (0.3) (0.3) Net periodic pension (benefit) cost $ (0.2) $ 0.7 $ 0.5 December 28, 2019 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.2 0.5 Expected return on plan assets (0.5) — (0.5) Net periodic pension (benefit) cost $ (0.2) $ 1.0 $ 0.8 December 29, 2018 (in millions of U.S. dollars) U.S. International Total Service cost $ — $ 0.8 $ 0.8 Interest cost 0.3 0.1 0.4 Expected return on plan assets (0.5) — (0.5) Recognized net gain due to settlement — (0.3) (0.3) Net periodic pension (benefit) cost $ (0.2) $ 0.6 $ 0.4 |
Schedule of Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax which have Not yet been Recognized in Net Periodic Benefit Cost | Amounts included in accumulated other comprehensive (loss) income, net of tax, at year-end which have not yet been recognized in net periodic benefit cost were as follows: January 2, 2021 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.4) $ (0.7) $ (1.1) Total accumulated other comprehensive loss $ (0.4) $ (0.7) $ (1.1) December 28, 2019 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial loss $ (0.1) $ (0.9) $ (1.0) Total accumulated other comprehensive loss $ (0.1) $ (0.9) $ (1.0) December 29, 2018 (in millions of U.S. dollars) U.S. International Total Unrecognized net actuarial (loss) income $ (0.1) $ 0.4 $ 0.3 Total accumulated other comprehensive (loss) income $ (0.1) $ 0.4 $ 0.3 |
Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | The following table summarizes the weighted average actuarial assumptions used to determine the projected benefit obligation: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 U.S. Plans Discount rate 2.0 % 3.0 % 4.0 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 6.3 % International Plans Discount rate 1.3 % 1.1 % 2.4 % Expected long-term rate of return on plan assets 2.1 % 1.3 % 2.7 % Rate of compensation increase 1.2 % 2.7 % 1.4 % CPI Inflation factor 0.1 % 0.3 % 0.3 % The following table summarizes the weighted average actuarial assumptions used to determine net periodic benefit cost: For the Year Ended January 2, 2021 December 28, 2019 December 29, 2018 U.S. Plans Discount rate 3.0 % 4.0 % 3.5 % Expected long-term rate of return on plan assets 6.3 % 6.3 % 6.3 % International Plans Discount rate 1.3 % 1.1 % 2.4 % Expected long-term rate of return on plan assets 2.1 % 1.3 % 2.7 % Inflation factor 0.1 % 0.3 % 0.3 % |
Schedule of Pension Plan Weighted-Average Asset Allocations by Asset Category | Our DB plans weighted-average asset allocations by asset category were as follows: January 2, 2021 December 28, 2019 U.S. Plans Equity securities 48.2 % 46.3 % Fixed income investments 51.8 % 53.7 % International Plans Equity securities 57.3 % 56.8 % Fixed income investments 32.6 % 33.2 % Real estate 10.1 % 10.0 % |
Schedule of Benefit Payments Expected to be Paid | The following benefit payments are expected to be paid in the periods indicated below: (in millions of U.S. dollars) U.S. International Total Expected benefit payments FY 2021 $ 0.5 $ 1.1 $ 1.6 FY 2022 0.5 0.7 1.2 FY 2023 0.5 0.5 1.0 FY 2024 0.5 0.7 1.2 FY 2025 0.5 0.6 1.1 FY 2026 through FY 2030 2.6 9.2 11.8 |
Schedule of Fair Values of Company's International Plan Assets | The fair values of the Company’s International Plan assets at January 2, 2021 and December 28, 2019 were as follows: January 2, 2021 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.8 — — Fixed income: Non-U.S. bonds 1.6 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.4 $ 2.6 $ — December 28, 2019 (in millions of U.S. dollars) Level 1 Level 2 Level 3 Mutual funds: Non-U.S. equity securities 1.6 — — Fixed income: Non-U.S. bonds 1.7 — — Insurance contract — 2.0 — Real estate: Real estate — 0.6 — Total $ 3.3 $ 2.6 $ — |
Consolidated Accumulated Othe_2
Consolidated Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
Changes in Consolidated Accumulated Other Comprehensive (Loss) Income by Component | Changes in consolidated accumulated other comprehensive (loss) income (“AOCI”) by component for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 were as follows: (in millions of U.S. dollars) 1 Gains and Losses on Derivative Instruments Pension Benefit Plan Items Currency Translation Adjustment Items Total Balance December 31, 2017 $ (1.4) $ (16.8) $ (76.2) $ (94.4) OCI before reclassifications (14.5) 0.2 (25.5) (39.8) Amounts reclassified from AOCI 6.2 16.9 9.4 32.5 Net current-period OCI (8.3) 17.1 (16.1) (7.3) Balance December 29, 2018 $ (9.7) $ 0.3 $ (92.3) $ (101.7) OCI before reclassifications 12.9 (1.3) 13.6 25.2 Amounts reclassified from AOCI 8.0 — — 8.0 Net current-period OCI 20.9 (1.3) 13.6 33.2 Balance December 28, 2019 $ 11.2 $ (1.0) $ (78.7) $ (68.5) OCI before reclassifications (8.7) (0.1) (6.9) (15.7) Amounts reclassified from AOCI (2.5) — — (2.5) Net current-period OCI (11.2) (0.1) (6.9) (18.2) Balance January 2, 2021 $ — $ (1.1) $ (85.6) $ (86.7) ______________________ 1 All amounts are net of tax. |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income to Total Net Income (Loss) | The following table summarizes the amounts reclassified from AOCI to total net (loss) income for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: (in millions of U.S. dollars) For the Year Ended Affected Line Item in the Statement Where Net Income Is Presented Details About AOCI Components 1 January 2, 2021 December 28, 2019 December 29, 2018 Gains and losses on derivative instruments Foreign currency and commodity hedges $ 0.1 $ (8.0) $ (6.2) Cost of sales Commodity hedges 2 $ 2.4 $ — $ — Gain on sale of discontinued operations $ 2.5 $ (8.0) $ (6.2) Total before taxes — — — Tax (expense) or benefit $ 2.5 $ (8.0) $ (6.2) Net of tax Amortization of pension benefit plan items Recognized net actuarial loss 3 $ — $ — $ (16.9) Gain on sale of discontinued operations — — (16.9) Total before taxes — — — Tax (expense) or benefit $ — $ — $ (16.9) Net of tax Foreign currency translation adjustments — — (9.4) Gain on sale of discontinued operations Total reclassifications for the period $ 2.5 $ (8.0) $ (32.5) Net of tax ______________________ 1 Amounts in parenthesis indicate debits. 2 Net of $1.3 million of associated tax impact that resulted in a decrease to the gain on the sale of discontinued operations for the year ended January 2, 2021. 3 Net of $3.6 million of associated tax impact that resulted in an increase to the gain on the sale of discontinued operations for the year ended December 29, 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Values of Outstanding Debt | The carrying values and estimated fair values of our significant outstanding debt as of January 2, 2021 and December 28, 2019 were as follows: January 2, 2021 December 28, 2019 (in millions of U.S. dollars) Carrying Value Fair Value Carrying Value Fair Value 5.500% senior notes due in 2024 1, 2 $ — $ — $ 493.5 $ 514.5 5.500% senior notes due in 2025 1, 2 743.0 767.2 741.8 775.3 3.875% senior notes due in 2028 1, 2 543.6 559.9 — — Total $ 1,286.6 $ 1,327.1 $ 1,235.3 $ 1,289.8 ______________________ 1 The fair values were based on the trading levels and bid/offer prices observed by a market participant and are considered Level 2 financial instruments. 2 Carrying value of our significant outstanding debt is net of unamortized debt issuance costs as of January 2, 2021 and December 28, 2019 (see Note 17 to the Consolidated Financial Statements). |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | Year Ended January 2, 2021 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 474.2 $ 456.8 $ 517.5 $ 505.0 $ 1,953.5 Cost of sales 200.9 202.1 213.4 223.2 839.6 Gross profit 273.3 254.7 304.1 281.8 1,113.9 Selling, general and administrative expenses 255.1 246.7 257.2 247.6 1,006.6 Loss on disposal of property plant and equipment, net 1.4 2.5 2.3 4.4 10.6 Acquisition and integration expenses 20.8 4.3 3.3 5.3 33.7 Goodwill and intangible asset impairment charges — 115.2 — — 115.2 Operating (loss) income (4.0) (114.0) 41.3 24.5 (52.2) Net (loss) income from continuing operations (27.4) (131.7) 22.3 (20.0) (156.8) Net income (loss) from discontinued operations, net of income taxes 30.9 (4.3) (0.3) (1.2) 25.1 Net income (loss) attributable to Primo Water Corporation $ 3.5 $ (136.0) $ 22.0 $ (21.2) $ (131.7) Per share data: Net income (loss) per common share attributable to Primo Water Corporation Basic: Continuing operations $ (0.19) $ (0.82) $ 0.14 $ (0.12) $ (1.01) Discontinued operations $ 0.22 $ (0.03) $ — $ (0.01) $ 0.16 Net income (loss) $ 0.02 $ (0.85) $ 0.14 $ (0.13) $ (0.85) Diluted: Continuing operations $ (0.19) $ (0.82) $ 0.14 $ (0.12) $ (1.01) Discontinued operations $ 0.22 $ (0.03) $ — $ (0.01) $ 0.16 Net income (loss) $ 0.02 $ (0.85) $ 0.14 $ (0.13) $ (0.85) Year Ended December 28, 2019 (in millions of U.S. dollars, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue, net $ 427.7 $ 455.6 $ 472.1 $ 440.0 $ 1,795.4 Cost of sales 184.6 184.0 185.8 179.8 734.2 Gross profit 243.1 271.6 286.3 260.2 1,061.2 Selling, general and administrative expenses 235.8 245.7 244.2 236.5 962.2 Loss on disposal of property, plant and equipment, net 1.9 1.7 1.1 2.9 7.6 Acquisition and integration expenses 4.7 2.7 2.6 6.4 16.4 Operating income 0.7 21.5 38.4 14.4 75.0 Net (loss) income from continuing operations (22.7) 2.7 7.3 1.9 (10.8) Net income from discontinued operations, net of income taxes 3.0 1.7 2.8 6.2 13.7 Net (loss) income attributable to Primo Water Corporation $ (19.7) $ 4.4 $ 10.1 $ 8.1 $ 2.9 Per share data: Net (loss) income per common share attributable to Primo Water Corporation Basic: Continuing operations $ (0.17) $ 0.02 $ 0.05 $ 0.01 $ (0.08) Discontinued operations $ 0.03 $ 0.01 $ 0.02 $ 0.05 $ 0.10 Net (loss) income $ (0.14) $ 0.03 $ 0.07 $ 0.06 $ 0.02 Diluted: Continuing operations $ (0.17) $ 0.02 $ 0.05 $ 0.01 $ (0.08) Discontinued operations $ 0.03 $ 0.01 $ 0.02 $ 0.05 $ 0.10 Net (loss) income $ (0.14) $ 0.03 $ 0.07 $ 0.06 $ 0.02 |
Description of Business - Addit
Description of Business - Additional Information (Details) | 12 Months Ended |
Jan. 02, 2021countrylocation | |
Business And Basis Of Presentation [Line Items] | |
Number of countries, country footprint | country | 21 |
Europe Operations | |
Business And Basis Of Presentation [Line Items] | |
Number of years carbon neutrality maintained | 9 years |
Water Exchange and Water Refill | |
Business And Basis Of Presentation [Line Items] | |
Number of locations that entity operates | 13,000 |
Water Refill | |
Business And Basis Of Presentation [Line Items] | |
Number of locations that entity operates | 22,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Feb. 28, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Jan. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($)segment | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Jan. 02, 2021USD ($)segment_componentsegment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 30, 2018USD ($) | Dec. 30, 2017USD ($) | Jul. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||||||
Additional revenue, impact of additional week in fiscal year | $ 19,400,000 | ||||||||||||||||
Additional operating income, impact of additional week in fiscal year | 3,900,000 | ||||||||||||||||
Number of reporting segments | segment | 2 | ||||||||||||||||
Accounts payable and accrued liabilities | $ 387,700,000 | $ 370,600,000 | 387,700,000 | $ 370,600,000 | |||||||||||||
Other long-term liabilities | 67,800,000 | 58,700,000 | 67,800,000 | 58,700,000 | |||||||||||||
Goodwill and intangible asset impairment charges | 0 | $ 0 | $ 115,200,000 | $ 0 | 115,200,000 | 0 | $ 0 | ||||||||||
Cost of sales | 223,200,000 | 213,400,000 | 202,100,000 | 200,900,000 | 179,800,000 | $ 185,800,000 | $ 184,000,000 | $ 184,600,000 | 839,600,000 | 734,200,000 | 767,400,000 | ||||||
Advertising costs | $ 21,200,000 | 22,500,000 | 23,000,000 | ||||||||||||||
Share-based compensation award vesting period | 3 years | ||||||||||||||||
Number of operating segments | segment | 2 | ||||||||||||||||
Percentage of weight to income approach | 50.00% | ||||||||||||||||
Goodwill impairment | $ 104,100,000 | ||||||||||||||||
Goodwill | 1,284,300,000 | 1,047,500,000 | 1,284,300,000 | 1,047,500,000 | 1,026,100,000 | ||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 532,100,000 | 309,900,000 | 532,100,000 | 309,900,000 | |||||||||||||
Acquired rights | 455,500,000 | 287,100,000 | 455,500,000 | 287,100,000 | |||||||||||||
Loss on disposal of property, plant and equipment, net | 4,400,000 | $ 2,300,000 | $ 2,500,000 | $ 1,400,000 | 2,900,000 | $ 1,100,000 | $ 1,700,000 | $ 1,900,000 | 10,600,000 | 7,600,000 | 8,700,000 | ||||||
Cumulative effect adjustment | 1,346,900,000 | 1,166,200,000 | 1,346,900,000 | 1,166,200,000 | 1,170,400,000 | $ 885,700,000 | |||||||||||
Retained Earnings (Accumulated deficit) | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect adjustment | 81,100,000 | 265,000,000 | 81,100,000 | 265,000,000 | 298,800,000 | $ (12,200,000) | |||||||||||
Cumulative effect of changes in accounting principle, net of taxes | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect adjustment | (3,600,000) | (3,600,000) | 10,500,000 | ||||||||||||||
Cumulative effect of changes in accounting principle, net of taxes | Retained Earnings (Accumulated deficit) | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect adjustment | (3,600,000) | (3,600,000) | 10,500,000 | ||||||||||||||
Trademarks | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Acquired rights | 455,500,000 | 287,100,000 | 455,500,000 | 287,100,000 | |||||||||||||
Customer relationships | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 485,200,000 | 267,400,000 | 485,200,000 | 267,400,000 | |||||||||||||
Software | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 24,300,000 | 21,400,000 | 24,300,000 | 21,400,000 | |||||||||||||
Patents | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Intangible assets subject to amortization, net of accumulated amortization | 12,800,000 | $ 11,200,000 | 12,800,000 | 11,200,000 | |||||||||||||
Eden Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 246,300,000 | 246,300,000 | |||||||||||||||
Aimia Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 54,600,000 | 54,600,000 | |||||||||||||||
Decantae Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 1,300,000 | 1,300,000 | |||||||||||||||
DSSAqua, Mountain Valley, Eden, Aimia, and Decantae Reporting Units | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 1,284,300,000 | 1,284,300,000 | |||||||||||||||
DSSAqua Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | 966,100,000 | 966,100,000 | |||||||||||||||
Mountain Valley | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill | $ 16,000,000 | $ 16,000,000 | |||||||||||||||
North America | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of segment components | segment_component | 3 | ||||||||||||||||
Rest of World | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of segment components | segment_component | 4 | ||||||||||||||||
Rest of World | Aimia Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of fair value exceeding carrying value of reporting units | 23.50% | ||||||||||||||||
Rest of World | Measurement Input, Weighted Average Terminal Growth Rate | Eden Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.015 | 0.015 | |||||||||||||||
Rest of World | Measurement Input, Weighted Average Terminal Growth Rate | Aimia Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.020 | 0.020 | |||||||||||||||
Rest of World | Measurement Input, Weighted Average Terminal Growth Rate | Decantae Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.020 | 0.020 | |||||||||||||||
Rest of World | Measurement Input, Weighted Average Terminal Growth Rate | Farrers Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.020 | 0.020 | |||||||||||||||
Rest of World | Measurement Input, Discount Rate | Eden Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.095 | 0.095 | |||||||||||||||
Rest of World | Measurement Input, Discount Rate | Aimia Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.115 | 0.115 | |||||||||||||||
Rest of World | Measurement Input, Discount Rate | Decantae Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.115 | 0.115 | |||||||||||||||
Rest of World | Measurement Input, Discount Rate | Farrers Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Reporting unit, measurement input | 0.115 | 0.115 | |||||||||||||||
Shipping and Handling | Selling, General and Administrative Expenses | North America and Rest of World Segments | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Cost of sales | $ 441,400,000 | $ 479,300,000 | $ 461,700,000 | ||||||||||||||
COVID-19 Pandemic | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Wage subsidies received | 7,400,000 | ||||||||||||||||
Accounts payable and accrued liabilities | $ 9,000,000 | 9,000,000 | |||||||||||||||
Other long-term liabilities | 7,500,000 | 7,500,000 | |||||||||||||||
Goodwill and intangible asset impairment charges | 115,200,000 | ||||||||||||||||
COVID-19 Pandemic | Eden Reporting Unit | Trademarks | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Indefinite-lived intangible asset impairment | 9,900,000 | ||||||||||||||||
COVID-19 Pandemic | Aquaterra Reporting Unit | Trademarks | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Indefinite-lived intangible asset impairment | 1,200,000 | ||||||||||||||||
COVID-19 Pandemic | Rest of World | Eden Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill impairment | 103,300,000 | ||||||||||||||||
COVID-19 Pandemic | Rest of World | Aimia Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill impairment | $ 0 | ||||||||||||||||
COVID-19 Pandemic | Rest of World | Decantae Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill impairment | 300,000 | ||||||||||||||||
COVID-19 Pandemic | Rest of World | Farrers Reporting Unit | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Goodwill impairment | 500,000 | ||||||||||||||||
COVID-19 Pandemic | Employee Severance | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Restructuring charge, expected to incur | $ 19,000,000 | $ 19,000,000 | |||||||||||||||
Discontinued Operations, Disposed of by Sale | S&D Disposition | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Purchase price received, cash | $ 405,000,000 | ||||||||||||||||
Payments, post-closing working capital adjustments | $ 1,500,000 | ||||||||||||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Purchase price received, cash | $ 7,900,000 | ||||||||||||||||
Aggregate deal consideration | $ 1,250,000,000 | $ 1,250,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | $ 1,047.5 | $ 1,026.1 | |
Accumulated impairment losses | (104.1) | 0 | $ 0 |
Goodwill, Beginning of Period | 1,047.5 | 1,026.1 | |
Goodwill acquired during the year | 348.9 | 35.3 | |
Measurement period adjustments | (35.9) | (3.1) | |
Divestitures | (4.5) | ||
Impairment losses | (104.1) | ||
Foreign exchange | 27.9 | (6.3) | |
Goodwill, Gross, End of Period | 1,388.4 | 1,047.5 | |
Goodwill, End of Period | 1,284.3 | 1,047.5 | |
All Other | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | 0 | 4.5 | |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, Beginning of Period | 0 | 4.5 | |
Goodwill acquired during the year | 0 | 0 | |
Measurement period adjustments | 0 | 0 | |
Divestitures | (4.5) | ||
Impairment losses | 0 | ||
Foreign exchange | 0 | 0 | |
Goodwill, Gross, End of Period | 0 | 0 | |
Goodwill, End of Period | 0 | 0 | |
North America | Operating Segments | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | 673.1 | 657.8 | |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, Beginning of Period | 673.1 | 657.8 | |
Goodwill acquired during the year | 343.3 | 17.4 | |
Measurement period adjustments | (35.9) | (3.1) | |
Divestitures | 0 | ||
Impairment losses | 0 | ||
Foreign exchange | 1.6 | 1 | |
Goodwill, Gross, End of Period | 982.1 | 673.1 | |
Goodwill, End of Period | 982.1 | 673.1 | |
Rest of World | Operating Segments | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | 374.4 | 363.8 | |
Accumulated impairment losses | (104.1) | 0 | $ 0 |
Goodwill, Beginning of Period | 374.4 | 363.8 | |
Goodwill acquired during the year | 5.6 | 17.9 | |
Measurement period adjustments | 0 | 0 | |
Divestitures | 0 | ||
Impairment losses | (104.1) | ||
Foreign exchange | 26.3 | (7.3) | |
Goodwill, Gross, End of Period | 406.3 | 374.4 | |
Goodwill, End of Period | $ 302.2 | $ 374.4 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restructuring Charges and Liability (Details) - 2020 Restructuring Plan $ in Millions | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at December 28, 2019 | $ 0 |
Charges to Costs and Expenses | 10.5 |
Cash Payments | (10.2) |
Balance at January 2, 2021 | 0.3 |
North America | |
Restructuring Reserve [Roll Forward] | |
Balance at December 28, 2019 | 0 |
Charges to Costs and Expenses | 2.7 |
Cash Payments | (2.7) |
Balance at January 2, 2021 | 0 |
Rest of World | |
Restructuring Reserve [Roll Forward] | |
Balance at December 28, 2019 | 0 |
Charges to Costs and Expenses | 7.8 |
Cash Payments | (7.5) |
Balance at January 2, 2021 | $ 0.3 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | Feb. 28, 2020 | Jan. 30, 2018 | Jun. 30, 2020 | Dec. 31, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Jul. 31, 2020 | Jul. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from short-term borrowings | $ 347.5 | $ 75.1 | $ 98.4 | ||||||
Payments under ABL | $ 334.7 | 64.2 | 17.4 | ||||||
Settled Litigation | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Escrow deposit released | $ 8.4 | ||||||||
Abl Facility | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from short-term borrowings | 262.4 | ||||||||
Payments under ABL | 482.8 | ||||||||
Refresco Group NV | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Amount paid | 0.7 | 47.2 | |||||||
Refresco Group NV | Settled Litigation | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Escrow deposit released | $ 4 | ||||||||
Refresco Group NV | Beverage Services | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Amount paid | 0.7 | 8.7 | |||||||
Amount received | 7.2 | $ 45.5 | |||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Gain (loss) on disposal | $ 7.9 | ||||||||
Aggregate deal consideration | $ 1,250 | $ 1,250 | |||||||
Escrow | $ 12.4 | ||||||||
Copack manufacturing agreement term (in months) | 36 months | ||||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | Maximum | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Transition services agreement term (in months) | 18 months | ||||||||
Discontinued Operations, Disposed of by Sale | S&D Disposition | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Gain (loss) on disposal | $ 405 | ||||||||
Payments, post-closing working capital adjustments | $ 1.5 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Discontinued Operations in Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Operations | |||||||||||
Net income from discontinued operations, net of income taxes | $ (1,200) | $ (300) | $ (4,300) | $ 30,900 | $ 6,200 | $ 2,800 | $ 1,700 | $ 3,000 | $ 25,100 | $ 13,700 | $ 368,100 |
Net income attributable to Primo Water Corporation – discontinued operations | 25,100 | 13,700 | 367,500 | ||||||||
Revenue, net | 1,953,500 | 1,795,400 | 1,791,000 | ||||||||
Income tax expense (benefit) | 4,300 | 4,500 | (8,300) | ||||||||
Interest on short-term debt | 5,000 | 4,300 | 0 | ||||||||
Discontinued Operations, Disposed of by Sale | |||||||||||
Statement of Operations | |||||||||||
Revenue, net | 97,100 | 605,000 | 698,800 | ||||||||
Cost of sales | 71,100 | 438,400 | 534,000 | ||||||||
Operating (loss) income from discontinued operations | (500) | 15,400 | 18,100 | ||||||||
Gain on sale of discontinued operations | 53,700 | 0 | 427,900 | ||||||||
Income from discontinued operations, before income taxes | 53,100 | 15,700 | 419,500 | ||||||||
Income tax expense | 28,000 | 2,000 | 51,400 | ||||||||
Net income from discontinued operations, net of income taxes | 25,100 | 13,700 | 368,100 | ||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 600 | ||||||||
Net income attributable to Primo Water Corporation – discontinued operations | 25,100 | 13,700 | 367,500 | ||||||||
Tax benefit, finalization of U.S. tax gain calculation | (28,000) | (2,000) | (51,400) | ||||||||
Discontinued Operations, Disposed of by Sale | Traditional CSD and Juice Business | |||||||||||
Statement of Operations | |||||||||||
Income tax expense | (3,000) | ||||||||||
Income tax expense (benefit) | (35,100) | ||||||||||
Tax benefit, finalization of U.S. tax gain calculation | 3,000 | ||||||||||
Interest on short-term debt | 3,400 | ||||||||||
Discontinued Operations, Disposed of by Sale | S&D Disposition | |||||||||||
Statement of Operations | |||||||||||
Income tax expense (benefit) | 28,500 | ||||||||||
Discontinued Operations, Disposed of by Sale | S&D Disposition | Related Party | |||||||||||
Statement of Operations | |||||||||||
Revenue, net | $ 1,000 | $ 5,900 | $ 5,700 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Discontinued Operations on Balance Sheet (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
ASSETS | ||
Current assets of discontinued operations | $ 0 | $ 186.7 |
Long-term assets of discontinued operations | 0 | 339.8 |
LIABILITIES | ||
Current liabilities of discontinued operations | 0 | 101.2 |
Long-term liabilities of discontinued operations | $ 0 | 53.5 |
Traditional CSD and Juice Business | Discontinued Operations, Disposed of by Sale | ||
ASSETS | ||
Cash and cash equivalents | 48.6 | |
Accounts receivable, net | 62.6 | |
Inventories | 59.6 | |
Prepaid expenses and other current assets | 15.9 | |
Current assets of discontinued operations | 186.7 | |
Property, plant and equipment, net | 89.7 | |
Operating lease right-of-use assets | 17.5 | |
Goodwill | 128.2 | |
Intangible assets, net | 104.4 | |
Long-term assets of discontinued operations | 339.8 | |
LIABILITIES | ||
Current maturities of long-term debt | 0.5 | |
Accounts payable and accrued liabilities | 95.5 | |
Current operating lease obligations | 5.2 | |
Current liabilities of discontinued operations | 101.2 | |
Long-term debt | 1.1 | |
Operating lease obligations | 12.6 | |
Deferred tax liabilities | 36.8 | |
Other long-term liabilities | 3 | |
Long-term liabilities of discontinued operations | $ 53.5 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 02, 2021USD ($)contract | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Option to terminate ( within ) | 1 year | ||
Present value of lease obligations | $ 183.5 | $ 183.5 | $ 191.7 |
Building | |||
Lessee, Lease, Description [Line Items] | |||
Number of leases | contract | 2 | ||
Building, Lease One | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 64 months | 64 months | |
Building, Lease Two | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 18 months | 18 months | |
Present value of lease obligations | $ 28.8 | $ 28.8 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, remaining term of contract (in years) | 1 year | 1 year | |
Operating lease, remaining term of contract (in years) | 1 year | 1 year | |
Renewal term of contract ( in years ) | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, remaining term of contract (in years) | 7 years | 7 years | |
Operating lease, remaining term of contract (in years) | 20 years | 20 years | |
Renewal term of contract ( in years ) | 10 years | 10 years |
Leases - Lease expense (Details
Leases - Lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 49 | $ 47.7 |
Short-term lease cost | 8 | 3 |
Finance lease cost | ||
Amortization of right-of-use assets | 11.7 | 4.5 |
Interest on lease liabilities | 3.5 | 1.2 |
Total finance lease cost | 15.2 | 5.7 |
Sublease income | 0.7 | 0.8 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 52.2 | 47.2 |
Operating cash flows from finance leases | 3.6 | 1.1 |
Financing cash flows from finance leases | 10.5 | 3.8 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 29.5 | 25 |
Finance leases | $ 52.2 | $ 28.6 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Operating leases | ||
Operating lease right-of-use assets | $ 180.6 | $ 185.7 |
Current operating lease obligations | 35.5 | 36.5 |
Operating lease obligations | 148 | 155.2 |
Total operating lease obligations | 183.5 | 191.7 |
Financing leases | ||
Property, plant and equipment, net | 71 | 30.4 |
Current maturities of long-term debt | 13.2 | 5.8 |
Long-term debt | 58.3 | 23.6 |
Total finance lease obligations | $ 71.5 | $ 29.4 |
Weighted Average Remaining Lease Term | ||
Operating leases | 7 years 7 months 6 days | 8 years 8 months 12 days |
Finance leases | 5 years 6 months | 5 years 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases | 6.10% | 6.20% |
Finance leases | 4.90% | 6.30% |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 45.4 | |
2022 | 35.1 | |
2023 | 30.5 | |
2024 | 25.2 | |
2025 | 20.6 | |
Thereafter | 81 | |
Total lease payments | 237.8 | |
Less imputed interest | (54.3) | |
Present value of lease obligations | 183.5 | $ 191.7 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2021 | 16.5 | |
2022 | 15.5 | |
2023 | 14.5 | |
2024 | 12.7 | |
2025 | 11.6 | |
Thereafter | 11.6 | |
Total lease payments | 82.4 | |
Less imputed interest | (10.9) | |
Present value of lease obligations | $ 71.5 | $ 29.4 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Accrued sales incentives | $ 9.9 | $ 7.1 |
Deferred revenue | 11.7 | $ 23.6 |
Revenue recognized | $ 23.5 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, net | $ 1,953.5 | $ 1,795.4 | $ 1,791 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 1,429.6 | 1,210 | 1,205 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 142.2 | 172 | 173.2 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | 64.1 | 67 | 64.1 |
All other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net | $ 317.6 | $ 346.4 | $ 348.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ / shares in Units, $ in Millions | Mar. 02, 2020USD ($)$ / shares | Jan. 02, 2021USD ($)country |
Business Acquisition [Line Items] | ||
Number of countries, country footprint | country | 21 | |
Legacy Primo Acquisition | ||
Business Acquisition [Line Items] | ||
Cash per share, election option one (in dollars per share) | $ / shares | $ 14 | |
Share exchange offer one (in shares) | 1.0229 | |
Cash per share, election option two (in dollars per share) | $ / shares | $ 5.04 | |
Share exchange offer two (in shares) | 0.6549 | |
Purchase price | $ | $ 798.2 | |
Acquisition related costs | $ | $ 27.1 |
Acquisitions - Total Cash and S
Acquisitions - Total Cash and Stock Consideration (Details) - Legacy Primo Acquisition $ / shares in Units, $ in Millions | Mar. 02, 2020USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Fair value of common shares issued to holders of Legacy Primo common stock (26,497,015 shares issued at $14.25 per share) | $ 377.6 |
Expected number of shares to be issued in acquisition (in shares) | shares | 26,497,015 |
Acquisition, number of shares issued (in USD per share) | $ / shares | $ 14.25 |
Cash to holders of Legacy Primo common stock | $ 216.1 |
Cash paid to retire outstanding indebtedness on behalf of Legacy Primo | 196.9 |
Settlement of pre-existing relationship | 4.7 |
Fair value of replacement common share options and restricted stock units for Legacy Primo awards | 2.9 |
Total consideration | $ 798.2 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | |||
Jan. 02, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Mar. 02, 2020 | Dec. 29, 2018 | |
Business Acquisition [Line Items] | |||||
Measurement Period Adjustments, Accounts receivable | $ (0.3) | ||||
Goodwill | 1,284.3 | $ 1,284.3 | $ 1,047.5 | $ 1,026.1 | |
Measurement Period Adjustments, Goodwill | (35.9) | $ (3.1) | |||
Legacy Primo Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 1.3 | 1.3 | $ 1.3 | ||
Accounts receivable | 21.6 | 21.6 | 21.9 | ||
Inventory | 18.4 | 18.4 | 12.7 | ||
Measurement Period Adjustments, Inventory | 5.7 | ||||
Prepaid expenses and other current assets | 5.3 | 5.3 | 4.3 | ||
Measurement Period Adjustments, Prepaid expenses and other current assets | 1 | ||||
Property, plant and equipment | 107.8 | 107.8 | 119 | ||
Measurement Period Adjustments, Property, plant and equipment | (11.2) | ||||
Operating lease right-of-use-assets | 4.3 | 4.3 | 4.9 | ||
Measurement Period Adjustments, Operating lease right-of-use assets | (0.6) | ||||
Goodwill | 301.2 | 301.2 | 337.4 | ||
Measurement Period Adjustments, Goodwill | (36.2) | ||||
Intangible assets | 421.6 | 421.6 | 361.3 | ||
Measurement Period Adjustments, Intangible assets | 60.3 | ||||
Other assets | 0.4 | 0.4 | 3.9 | ||
Measurement Period Adjustments, Other assets | (3.5) | ||||
Current maturities of long-term debt | (2.3) | (2.3) | (2.2) | ||
Measurement Period Adjustments, Current maturities of long-term debt | (0.1) | ||||
Accounts payable and accrued liabilities | (42) | (42) | (41.6) | ||
Measurement Period Adjustments, Accounts payable and accrued liabilities | (0.4) | ||||
Current operating lease obligations | (1.4) | (1.4) | (1.8) | ||
Measurement Period Adjustments, Current operating lease obligations | 0.4 | ||||
Long-term debt | (5.6) | (5.6) | (5.8) | ||
Measurement Period Adjustments, Long-term debt | 0.2 | ||||
Operating lease obligations | (3) | (3) | (3.1) | ||
Measurement Period Adjustments, Operating lease obligations | 0.1 | ||||
Deferred tax liabilities | (27.6) | (27.6) | (11.7) | ||
Measurement Period Adjustments, Deferred tax liabilities | (15.9) | ||||
Other long-term liabilities | (1.8) | (1.8) | (2.3) | ||
Measurement Period Adjustments, Other long-term liabilities | 0.5 | ||||
Total | 798.2 | $ 798.2 | $ 798.2 | ||
Measurement Period Adjustments, Total | $ 0 |
Acquisitions - Components of Id
Acquisitions - Components of Identified Intangible Assets (Details) - Legacy Primo Acquisition - USD ($) $ in Millions | Mar. 02, 2020 | Jan. 02, 2021 |
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 361.3 | $ 421.6 |
Valuation, Income Approach | Estimate of Fair Value Measurement | ||
Business Acquisition [Line Items] | ||
Total | 421.6 | |
Trade names | Valuation, Income Approach | Estimate of Fair Value Measurement | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value, Indefinite-Lived Intangible Assets | $ 174.9 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 26 years | |
Customer relationships | Valuation, Income Approach | Estimate of Fair Value Measurement | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 245.2 | |
Software | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 3 years | |
Software | Valuation, Income Approach | Estimate of Fair Value Measurement | ||
Business Acquisition [Line Items] | ||
Estimated Fair Market Value | $ 1.5 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Financial Information (Details) - Legacy Primo Acquisition - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | ||
Revenue | $ 1,993.3 | $ 2,064.5 |
Net loss from continuing operations | (136.3) | (20.5) |
Net loss | $ (111.2) | $ (6.8) |
Net loss per common share from continuing operations , diluted (in USD per share) | $ (0.88) | $ (0.13) |
Net loss per common share, diluted (in USD per share) | $ (0.72) | $ (0.04) |
Other Expense (Income), Net - S
Other Expense (Income), Net - Schedule of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange losses (gains), net | $ 1.5 | $ 0.9 | $ (7.1) |
Proceeds from legal settlements | (1.9) | 0 | (14.9) |
(Gain) loss on sale of business | (0.6) | 6 | (6) |
Transition services agreement service income | 0 | (0.3) | (2.6) |
Loss (gain) on extinguishment of long-term debt | 19.7 | 0 | (7.1) |
Other gains, net | 0 | (2.9) | (4.3) |
Total | $ 18.7 | $ 3.7 | $ (42) |
Interest Expense, Net - Schedul
Interest Expense, Net - Schedule of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Banking and Thrift, Interest [Abstract] | |||
Interest on long-term debt | $ 68.7 | $ 69.5 | $ 72.2 |
Interest on short-term debt | 5 | 4.3 | 0 |
Other interest expense, net | 7.9 | 3.8 | 5.4 |
Total | $ 81.6 | $ 77.6 | $ 77.6 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Canada | $ (88.4) | $ (57) | $ (26.1) |
Outside Canada | (64.1) | 50.7 | 33.2 |
(Loss) income from continuing operations before income taxes | $ (152.5) | $ (6.3) | $ 7.1 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current | |||
Canada | $ 0 | $ (0.2) | $ 0 |
Outside Canada | 1.9 | 12.2 | 3.8 |
Income tax expense (benefit), Current | 1.9 | 12 | 3.8 |
Deferred | |||
Canada | 0 | (1) | (5.6) |
Outside Canada | 2.4 | (6.5) | (6.5) |
Income tax expense (benefit) , Deferred | 2.4 | (7.5) | (12.1) |
Income tax expense (benefit) | $ 4.3 | $ 4.5 | $ (8.3) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax (benefit) expense based on Canadian statutory rates | $ (40.4) | $ (1.7) | $ 1.9 |
Foreign tax rate differential | (4.3) | (10) | (1.5) |
Local taxes | 2.1 | 1.1 | (0.6) |
Nontaxable interest income | (8.7) | (8.4) | (9.8) |
Impairment expense | 17.6 | 0 | 0 |
Impact of intercompany transactions and dividends | 10.8 | 12.2 | 1 |
Income tax credits | (0.5) | (0.7) | 0 |
Change in enacted tax rates | (1.7) | (0.1) | 3.4 |
Change in valuation allowance | 28.5 | 19.7 | (4.2) |
Change in uncertain tax positions | (1.5) | 0.1 | (1.8) |
Equity compensation | 1.9 | 1.3 | 1.2 |
Permanent differences | 1.6 | 1.3 | 0.8 |
Adjustments to deferred taxes | (1.1) | (10.4) | 0.7 |
Other items | 0 | 0.1 | 0.6 |
Income tax expense (benefit) | $ 4.3 | $ 4.5 | $ (8.3) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred tax assets | ||
Capital loss carryforwards | $ 54.8 | |
Continued Operations | ||
Deferred tax assets | ||
Net operating loss carryforwards | 196.4 | $ 133.6 |
Capital loss carryforwards | 14.5 | 12 |
Liabilities and reserves | 32 | 25.7 |
Stock options | 10.7 | 8 |
Inventories | 2.4 | 3.4 |
Interest expense | 9.8 | 11.3 |
Right of use lease obligations | 50.7 | 44.6 |
Deferred tax assets, gross | 316.5 | 238.6 |
Deferred tax liabilities | ||
Property, plant and equipment | (65) | (63.7) |
Intangible assets | (191.8) | (101) |
Right of use assets | (50.1) | (43.2) |
Other | (0.7) | (1) |
Deferred tax liabilities | (307.6) | (208.9) |
Valuation allowance | (156.5) | (120.3) |
Net deferred tax liability | $ (147.6) | $ (90.6) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Line Items] | ||||
Repatriated earnings | $ 221,800,000 | $ 75,100,000 | ||
Operating loss carry forwards | 786,600,000 | |||
Capital loss carry forwards | 54,800,000 | |||
Credit carryforwards | 2,600,000 | |||
Unrecognized tax benefits | 15,600,000 | 16,900,000 | $ 15,100,000 | $ 15,800,000 |
Decrease in unrecognized tax benefits | 1,300,000 | |||
Favorable impact of effective tax rate | 14,400,000 | |||
Reasonably possible decrease | 3,000,000 | |||
Interest or penalties recovered | 0 | 0 | $ 0 | |
Income tax interest and penalties liability | 800,000 | 900,000 | ||
Other credit carryforward | ||||
Income Taxes [Line Items] | ||||
Credit carryforwards | 2,600,000 | |||
Canada | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 273,100,000 | |||
Capital loss carry forwards | 49,200,000 | |||
Valuation allowance | 156,500,000 | $ 120,300,000 | ||
U.S. Federal | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 231,100,000 | |||
Operating loss carryforwards, indefinite lives | 37,600,000 | |||
State and Local | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 19,100,000 | |||
Netherlands | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 128,300,000 | |||
Other Countries | ||||
Income Taxes [Line Items] | ||||
Operating loss carry forwards | 97,400,000 | |||
Israeli | ||||
Income Taxes [Line Items] | ||||
Capital loss carry forwards | 5,500,000 | |||
Israel and Canada | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 14,500,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 16.9 | $ 15.1 | $ 15.8 |
Additions based on tax positions taken during a prior period | 0 | 5 | 1.3 |
Reductions based on tax positions taken during a prior period | 0 | (1.9) | (0.1) |
Settlement on tax positions taken during a prior period | (1.7) | 0 | 0 |
Tax rate change | 0 | 0 | (0.1) |
Lapse in statute of limitations | (1) | (2.9) | (4.3) |
Additions based on tax positions taken during the current period | 1.3 | 1.7 | 3 |
Cash payments | (0.2) | (0.2) | 0 |
Foreign exchange | 0.3 | 0.1 | (0.5) |
Unrecognized tax benefits at end of year | $ 15.6 | $ 16.9 | $ 15.1 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||
Jun. 27, 2020USD ($) | Jan. 02, 2021USD ($)installment$ / sharesshares | Dec. 28, 2019USD ($)$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 27, 2019$ / shares | Dec. 28, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance for each share issued | shares | 2 | ||||||
Share-based compensation expense | $ 22,700,000 | $ 12,400,000 | $ 17,400,000 | ||||
Income tax benefit recognized related to share-based compensation | $ 800,000 | 600,000 | 900,000 | ||||
Share-based compensation award vesting period | 3 years | ||||||
Closing price of common shares (in USD per share) | $ / shares | $ 15.68 | $ 13.45 | $ 13.66 | ||||
Number of annual installments | installment | 3 | ||||||
Cash received from exercise of stock options | $ 2,000,000 | 0 | 5,000,000 | ||||
Tax benefit realized on exercise of stock option | 100,000 | 0 | 200,000 | ||||
Fair value of options that vested | 15,800,000 | 19,000,000 | 16,800,000 | ||||
Board of directors chairman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expense associated with modification | 5,500,000 | ||||||
Performance-based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 7,800,000 | $ 5,700,000 | $ 7,000,000 | ||||
Share-based compensation award vesting period | 3 years | ||||||
Granted (in shares) | shares | 458,000 | 285,000 | 312,000 | ||||
Aggregate grant date fair value of shares vested | $ 14,100,000 | $ 5,000,000 | $ 6,400,000 | ||||
Performance-based RSUs | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of performance awards granted | 0.00% | ||||||
Performance-based RSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of performance awards granted | 200.00% | ||||||
Time-based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 4,900,000 | 2,100,000 | 3,800,000 | ||||
Share-based compensation award vesting period | 3 years | ||||||
Fair value of options that vested | $ 5,100,000 | $ 3,200,000 | $ 3,500,000 | ||||
Granted (in shares) | shares | 542,000 | 216,000 | 208,000 | ||||
Time-based RSUs | Fist Anniversary, Date of Grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Time-based RSUs | Second Anniversary, Date of Grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Time-based RSUs | Third Anniversary, Date of Grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 33.33% | ||||||
Amended and Restated Equity Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for issuance (in shares) | shares | 20,000,000 | ||||||
Shares available for future issuance | shares | 120,000 | ||||||
Share-based compensation expense | $ 2,900,000 | ||||||
Share-based compensation, liability | 2,900,000 | ||||||
Expense associated with modification | $ 5,900,000 | ||||||
Amended and Restated Equity Plan | Common Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Bonus aggregate target payout, if circumstances met | $ 2,400,000 | ||||||
Bonus aggregate target payout, performance percentage | 122.00% | ||||||
2018 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for issuance (in shares) | shares | 8,000,000 | ||||||
Shares available for future issuance | shares | 6,026,000 | ||||||
Stock Option Plan | Certain employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 1,053,600 | 1,138,000 | 1,182,400 | ||||
Granted (in USD per share) | $ / shares | $ 15.48 | $ 13.68 | $ 14.67 | ||||
Granted, estimated fair value (in USD per share) | $ / shares | $ 4.63 | $ 3.42 | $ 3.87 | ||||
Stock Option Plan | Certain employee | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation award vesting period | 10 years | ||||||
Amended And Restated Equity Plan | Common Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 118,059 | ||||||
Granted, fair value | $ 1,300,000 | ||||||
Employee Share Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for issuance (in shares) | shares | 2,452,739 | ||||||
Share-based compensation expense | $ 300,000 | $ 200,000 | $ 300,000 | ||||
Share based payment award number of shares authorized | shares | 3,000,000 | ||||||
Share based payment award offering price percentage | 90.00% | ||||||
Payroll deduction to purchase share, Minimum | 1.00% | ||||||
Payroll deduction to purchase share, Maximum | 15.00% |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 22.7 | $ 12.4 | $ 17.4 |
Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0.3 | 0.2 | 0.3 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5.5 | 3.3 | 5.3 |
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 7.8 | 5.7 | 7 |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4.9 | 2.1 | 3.8 |
Director share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 1.3 | 1.1 | 1 |
Liability-classified awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2.9 | 0 | 0 |
Discontinued Operations, Held-for-sale | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0.6 | $ 0.7 | $ 1.7 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Share-based Compensation Expense (Details) $ in Millions | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense as of January 2, 2021 | $ 14.3 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense as of January 2, 2021 | $ 4.5 |
Weighted average years expected to recognize compensation | 2 years |
Performance-based RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense as of January 2, 2021 | $ 5.8 |
Weighted average years expected to recognize compensation | 2 years 4 months 24 days |
Time-based RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense as of January 2, 2021 | $ 4 |
Weighted average years expected to recognize compensation | 2 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Option Assumptions (Details) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 0.70% | 1.80% | 2.80% |
Average expected life (years) | 6 years | 6 years | 5 years 7 months 6 days |
Expected volatility | 36.20% | 29.00% | 28.80% |
Expected dividend yield | 1.60% | 1.80% | 1.60% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Stock Options (in thousands) | ||||
Beginning balance (in shares) | 6,493 | 5,446 | 5,006 | |
Granted (in shares) | 1,054 | 1,138 | 1,182 | |
Exercised (in shares) | (252) | (91) | (734) | |
Forfeited or expired (in shares) | (25) | 0 | (8) | |
Ending balance (in shares) | 7,270 | 6,493 | 5,446 | 5,006 |
Exercisable, Ending balance (in shares) | 5,146 | |||
Vested or expected to vest, Ending balance (in shares) | 7,270 | |||
Weighted average exercise price | ||||
Beginning balance (in USD per share) | $ 12.57 | $ 12.30 | $ 11.41 | |
Granted (in USD per share) | 15.48 | 13.68 | 14.67 | |
Exercised (in USD per share) | 10.27 | 10.47 | 10.04 | |
Forfeited or expired (in USD per share) | 11.98 | 0 | 10.64 | |
Ending balance (in USD per share) | 13.07 | $ 12.57 | $ 12.30 | $ 11.41 |
Exercisable, Ending balance (in USD per share) | 12.38 | |||
Vested or expected to vest, Ending balance (USD per share) | $ 13.07 | |||
Additional Information | ||||
Weighted average contractual term (years) | 6 years 6 months | 6 years 10 months 24 days | 7 years 3 months 18 days | 8 years 1 month 6 days |
Weighted average contractual term (years), Exercisable | 5 years 4 months 24 days | |||
Weighted average contractual term (years), Vested or expected to vest | 6 years 6 months | |||
Aggregate intrinsic value (in thousands) | $ 20,659,300 | $ 11,045,400 | $ 11,993,000 | $ 26,952,300 |
Aggregate intrinsic value (in thousands), Exercised | 1,185,900 | $ 389,100 | $ 4,408,100 | |
Aggregate intrinsic value (in thousands), Exercisable | 18,572,700 | |||
Aggregate intrinsic value (in thousands), Vested or expected to vest | $ 20,659,300 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-based RSU and Time-based RSU Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Performance-based RSUs | |||
Number of Performance-based RSUs (in thousands) | |||
Beginning balance (in shares) | 1,599 | 1,665 | 2,899 |
Awarded (in shares) | 458 | 285 | 312 |
Awarded in connection with acquisitions (in shares) | 246 | ||
Awarded in connection with modification (in shares) | 344 | 190 | |
Issued (in shares) | (842) | (441) | (686) |
Forfeited (in shares) | (374) | (100) | (1,106) |
Ending balance (in shares) | 1,185 | 1,599 | 1,665 |
Vested or expected to vest (in shares) | 1,279 | ||
Weighted Average Grant-Date Fair Value | |||
Beginning balance, (USD per share) | $ 14.36 | $ 13.90 | $ 9.15 |
Awarded (USD per share) | 15.64 | 13.69 | 14.67 |
Awarded in connection with acquisitions (USD per share) | 9.21 | ||
Awarded in connection with modification (USD per share) | 17.50 | 11.22 | |
Issued (USD per share) | 16.80 | 11.30 | 9.32 |
Forfeited (USD per share) | 16.03 | 12.33 | 6.55 |
Ending balance (USD per share) | 15.27 | $ 14.36 | $ 13.90 |
Vested or expected to vest, Ending balance (USD per share) | $ 15.44 | ||
Time-based RSUs | |||
Number of Performance-based RSUs (in thousands) | |||
Beginning balance (in shares) | 397 | 427 | 502 |
Awarded (in shares) | 542 | 216 | 208 |
Awarded in connection with acquisitions (in shares) | 0 | ||
Awarded in connection with modification (in shares) | 0 | 0 | |
Issued (in shares) | (371) | (239) | (269) |
Forfeited (in shares) | (20) | (7) | (14) |
Ending balance (in shares) | 548 | 397 | 427 |
Vested or expected to vest (in shares) | 548 | ||
Weighted Average Grant-Date Fair Value | |||
Beginning balance, (USD per share) | $ 14.43 | $ 14.23 | $ 13.14 |
Awarded (USD per share) | 14.85 | 13.69 | 14.67 |
Awarded in connection with acquisitions (USD per share) | 0 | ||
Awarded in connection with modification (USD per share) | 0 | 0 | |
Issued (USD per share) | 13.82 | 13.38 | 13.07 |
Forfeited (USD per share) | 14.18 | 14.89 | 13.24 |
Ending balance (USD per share) | 14.75 | $ 14.43 | $ 14.23 |
Vested or expected to vest, Ending balance (USD per share) | $ 14.75 |
Common Shares and Net (Loss) _3
Common Shares and Net (Loss) Income per Common Share - Additional Information (Details) - USD ($) | Mar. 02, 2020 | Dec. 11, 2019 | Dec. 11, 2018 | May 01, 2018 | Dec. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Common shares repurchased and canceled | $ 33,200,000 | $ 31,800,000 | $ 74,900,000 | |||||
Legacy Primo Acquisition | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Expected number of shares to be issued in acquisition (in shares) | 26,497,015 | |||||||
Acquisition, number of shares issued (in USD per share) | $ 14.25 | |||||||
Initial Repurchase Plan | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Stock repurchase program | $ 50,000,000 | |||||||
Period in force (in months) | 12 years | |||||||
Common shares repurchased and canceled (in shares) | 2,973,282 | |||||||
Common shares repurchased and canceled | $ 46,000,000 | |||||||
New Repurchase Plan, 2018 | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Stock repurchase program | $ 50,000,000 | |||||||
Period in force (in months) | 12 years | |||||||
Common shares repurchased and canceled (in shares) | 2,006,789 | 1,590,088 | ||||||
Common shares repurchased and canceled | $ 27,800,000 | $ 22,200,000 | ||||||
New Repurchase Plan, 2019 | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Stock repurchase program | $ 50,000,000 | |||||||
Period in force (in months) | 12 months | |||||||
Common shares repurchased and canceled (in shares) | 2,316,835 | 0 | ||||||
Common shares repurchased and canceled | $ 25,000,000 |
Common Shares and Net (Loss) _4
Common Shares and Net (Loss) Income per Common Share - Reconciliation of Numerator and Denominators of Basic and Diluted Net (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Numerator (in millions): | |||||||||||
Continuing operations | $ (20) | $ 22.3 | $ (131.7) | $ (27.4) | $ 1.9 | $ 7.3 | $ 2.7 | $ (22.7) | $ (156.8) | $ (10.8) | $ 15.4 |
Net income from discontinued operations, net of income taxes | 25.1 | 13.7 | 367.5 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ (21.2) | $ 22 | $ (136) | $ 3.5 | $ 8.1 | $ 10.1 | $ 4.4 | $ (19.7) | $ (131.7) | $ 2.9 | $ 382.9 |
Basic Earnings Per Share: | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 155,446 | 135,224 | 139,097 | ||||||||
Continuing operations (In USD per share) | $ (0.12) | $ 0.14 | $ (0.82) | $ (0.19) | $ 0.01 | $ 0.05 | $ 0.02 | $ (0.17) | $ (1.01) | $ (0.08) | $ 0.11 |
Discontinued operations (In USD per share) | (0.01) | 0 | (0.03) | 0.22 | 0.05 | 0.02 | 0.01 | 0.03 | 0.16 | 0.10 | 2.64 |
Net (loss) income (In USD per share) | (0.13) | 0.14 | (0.85) | 0.02 | 0.06 | 0.07 | 0.03 | (0.14) | $ (0.85) | $ 0.02 | $ 2.75 |
Denominator (in thousands): | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 155,446 | 135,224 | 139,097 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 155,446 | 135,224 | 141,436 | ||||||||
Diluted Earnings Per Share: | |||||||||||
Continuing operations (In USD per share) | (0.12) | 0.14 | (0.82) | (0.19) | 0.01 | 0.05 | 0.02 | (0.17) | $ (1.01) | $ (0.08) | $ 0.11 |
Discontinued operations (In USD per share) | (0.01) | 0 | (0.03) | 0.22 | 0.05 | 0.02 | 0.01 | 0.03 | 0.16 | 0.10 | 2.60 |
Net (loss) income (In USD per share) | $ (0.13) | $ 0.14 | $ (0.85) | $ 0.02 | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.14) | $ (0.85) | $ 0.02 | $ 2.71 |
Performance-based RSUs | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 0 | 900 | ||||||||
Time-based RSUs | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 0 | 240 | ||||||||
Stock options | |||||||||||
Denominator (in thousands): | |||||||||||
Dilutive effect of awards (in shares) | 0 | 0 | 1,199 |
Common Shares and Net (Loss) _5
Common Shares and Net (Loss) Income per Common Share - Summary of the Anti-dilutive Securities Excluded from the Computation of Diluted Net (Loss) Income Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 7,270 | 6,493 | 2,095 |
Performance-based RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 1,185 | 1,594 | 564 |
Time-based RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted (loss) income per common share (in shares) | 548 | 397 | 148 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Jun. 27, 2020segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | $ 1,953.5 | $ 1,795.4 | $ 1,791 | ||||||||
Depreciation and amortization | 202.1 | 168.6 | 171.7 | ||||||||
Operating income (loss) | $ 24.5 | $ 41.3 | $ (114) | $ (4) | $ 14.4 | $ 38.4 | $ 21.5 | $ 0.7 | (52.2) | 75 | 42.7 |
Property, plant and equipment, net | 685.6 | 558.1 | 685.6 | 558.1 | |||||||
Goodwill | 1,284.3 | 1,047.5 | 1,284.3 | 1,047.5 | 1,026.1 | ||||||
Intangible assets, net | 987.6 | 597 | 987.6 | 597 | |||||||
Additions to property, plant and equipment | 114 | 101.3 | 114.8 | ||||||||
Segment assets | 2,864.4 | 2,864.4 | |||||||||
Assets of discontinued operations | 526.5 | 526.5 | |||||||||
Total assets | 3,604.7 | 3,390.9 | 3,604.7 | 3,390.9 | |||||||
Continued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 3,604.7 | 2,864.4 | 3,604.7 | 2,864.4 | |||||||
Operating Segments | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 1,493.2 | 1,269.8 | 1,188.4 | ||||||||
Depreciation and amortization | 142.4 | 113.1 | 113.5 | ||||||||
Operating income (loss) | 132.1 | 92.7 | 69.2 | ||||||||
Property, plant and equipment, net | 550.7 | 433.2 | 550.7 | 433.2 | |||||||
Goodwill | 982.1 | 673.1 | 982.1 | 673.1 | 657.8 | ||||||
Intangible assets, net | 759.7 | 358.8 | 759.7 | 358.8 | |||||||
Additions to property, plant and equipment | 87 | 70.7 | 72.3 | ||||||||
Operating Segments | North America | Continued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 2,729.7 | 1,874.5 | 2,729.7 | 1,874.5 | |||||||
Operating Segments | Rest of World | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 460.3 | 518.4 | 521.9 | ||||||||
Depreciation and amortization | 58.4 | 55.2 | 57.2 | ||||||||
Operating income (loss) | (111.4) | 29.1 | 26.8 | ||||||||
Property, plant and equipment, net | 134.1 | 123.8 | 134.1 | 123.8 | |||||||
Goodwill | 302.2 | 374.4 | 302.2 | 374.4 | 363.8 | ||||||
Intangible assets, net | 222.9 | 237.2 | 222.9 | 237.2 | |||||||
Additions to property, plant and equipment | 27.2 | 30.2 | 40 | ||||||||
Operating Segments | Rest of World | Continued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 841.3 | 941.6 | 841.3 | 941.6 | |||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 0 | 7.2 | 80.7 | ||||||||
Depreciation and amortization | 1.3 | 0.3 | 1 | ||||||||
Operating income (loss) | (72.9) | (46.8) | (53.3) | ||||||||
Property, plant and equipment, net | 0.8 | 1.1 | 0.8 | 1.1 | |||||||
Goodwill | 0 | 0 | 0 | 0 | 4.5 | ||||||
Intangible assets, net | 5 | 1 | 5 | 1 | |||||||
Additions to property, plant and equipment | (0.2) | 0.4 | 2.5 | ||||||||
Revenue from related parties | $ 4.2 | ||||||||||
All Other | Continued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 33.7 | $ 48.3 | $ 33.7 | $ 48.3 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | $ 505 | $ 517.5 | $ 456.8 | $ 474.2 | $ 440 | $ 472.1 | $ 455.6 | $ 427.7 | $ 1,953.5 | $ 1,795.4 | $ 1,791 |
United States | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 1,429.6 | 1,210 | 1,205 | ||||||||
United Kingdom | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 142.2 | 172 | 173.2 | ||||||||
Canada | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | 64.1 | 67 | 64.1 | ||||||||
All other countries | |||||||||||
Schedule Of Revenues From External Customers [Line Items] | |||||||||||
Total | $ 317.6 | $ 346.4 | $ 348.7 |
Segment Reporting - Revenues _2
Segment Reporting - Revenues by Channel Reporting Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information [Line Items] | |||
Total | $ 1,953.5 | $ 1,795.4 | $ 1,791 |
Water Direct/Water Exchange | |||
Segment Reporting Information [Line Items] | |||
Total | 1,177.4 | 1,157.8 | 1,102.5 |
Water Refill/Water Filtration | |||
Segment Reporting Information [Line Items] | |||
Total | 204.4 | 62.4 | 61.7 |
Other Water | |||
Segment Reporting Information [Line Items] | |||
Total | 224.2 | 217.2 | 215 |
Water Dispensers | |||
Segment Reporting Information [Line Items] | |||
Total | 75.9 | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Total | 271.6 | 358 | 411.8 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Total | 1,493.2 | 1,269.8 | 1,188.4 |
Operating Segments | North America | Water Direct/Water Exchange | |||
Segment Reporting Information [Line Items] | |||
Total | 965.8 | 905.1 | 841 |
Operating Segments | North America | Water Refill/Water Filtration | |||
Segment Reporting Information [Line Items] | |||
Total | 175.1 | 35.6 | 35.7 |
Operating Segments | North America | Other Water | |||
Segment Reporting Information [Line Items] | |||
Total | 160.7 | 157.8 | 159.5 |
Operating Segments | North America | Water Dispensers | |||
Segment Reporting Information [Line Items] | |||
Total | 75.9 | ||
Operating Segments | North America | Other | |||
Segment Reporting Information [Line Items] | |||
Total | 115.7 | 171.3 | 152.2 |
Operating Segments | Rest of World | |||
Segment Reporting Information [Line Items] | |||
Total | 460.3 | 518.4 | 521.9 |
Operating Segments | Rest of World | Water Direct/Water Exchange | |||
Segment Reporting Information [Line Items] | |||
Total | 211.6 | 252.7 | 261.5 |
Operating Segments | Rest of World | Water Refill/Water Filtration | |||
Segment Reporting Information [Line Items] | |||
Total | 29.3 | 26.8 | 26 |
Operating Segments | Rest of World | Other Water | |||
Segment Reporting Information [Line Items] | |||
Total | 63.5 | 59.4 | 55.5 |
Operating Segments | Rest of World | Water Dispensers | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | ||
Operating Segments | Rest of World | Other | |||
Segment Reporting Information [Line Items] | |||
Total | 155.9 | 179.5 | 178.9 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | 7.2 | 80.7 |
All Other | Water Direct/Water Exchange | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | 0 | 0 |
All Other | Water Refill/Water Filtration | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | 0 | 0 |
All Other | Other Water | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | 0 | 0 |
All Other | Water Dispensers | |||
Segment Reporting Information [Line Items] | |||
Total | 0 | ||
All Other | Other | |||
Segment Reporting Information [Line Items] | |||
Total | $ 0 | $ 7.2 | $ 80.7 |
Segment Reporting - Property, P
Segment Reporting - Property, Plant and Equipment, Net by Geographic Area (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Segment Reporting Information [Line Items] | ||
Total | $ 685.6 | $ 558.1 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total | 527.4 | 415.7 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Total | 21.9 | 20.9 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Total | 24.1 | 18.6 |
All other countries | ||
Segment Reporting Information [Line Items] | ||
Total | $ 112.2 | $ 102.9 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Receivables [Abstract] | ||
Trade receivables | $ 226.5 | $ 209.9 |
Allowance for doubtful accounts | (20.7) | (8.8) |
Other | 16.5 | 15.6 |
Total | $ 222.3 | $ 216.7 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 43.6 | $ 23.8 |
Finished goods | 28 | 24.2 |
Resale items | 11.1 | 14 |
Other | 1.1 | 0.9 |
Total | $ 83.8 | $ 62.9 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Cost, Finance leases | $ 88.4 | |
Accumulated Depreciation, Finance leases | 17.4 | |
Net, Finance leases | 71 | $ 30.4 |
Cost, Total | 1,165.5 | 929.5 |
Accumulated Depreciation, Total | 479.9 | 371.4 |
Net, Total | 685.6 | 558.1 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 95.8 | 95.3 |
Accumulated Depreciation | 0 | 0 |
Net | 95.8 | 95.3 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 93.5 | 88.9 |
Accumulated Depreciation | 32.2 | 26.9 |
Net | $ 61.3 | 62 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 40 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 167.2 | 146.8 |
Accumulated Depreciation | 85.6 | 66 |
Net | $ 81.6 | 80.8 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 15 years | |
Plates, films and molds | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 1.8 | 1.5 |
Accumulated Depreciation | 0.9 | 0.6 |
Net | $ 0.9 | 0.9 |
Plates, films and molds | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 1 year | |
Plates, films and molds | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Vehicles and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 94.6 | 90.3 |
Accumulated Depreciation | 66.6 | 59.5 |
Net | $ 28 | 30.8 |
Vehicles and transportation equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Vehicles and transportation equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 15 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 21 | 19.8 |
Accumulated Depreciation | 13.1 | 10.7 |
Net | 7.9 | 9.1 |
IT Systems | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 17.8 | 15.6 |
Accumulated Depreciation | 12.2 | 9.9 |
Net | $ 5.6 | 5.7 |
IT Systems | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
IT Systems | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 7 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 12.7 | 12 |
Accumulated Depreciation | 10.1 | 8.6 |
Net | $ 2.6 | 3.4 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 10 years | |
Customer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 470.2 | 339.7 |
Accumulated Depreciation | 189.3 | 144.9 |
Net | $ 280.9 | 194.8 |
Customer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Customer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 7 years | |
Returnable bottles | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 102.5 | 82 |
Accumulated Depreciation | 52.5 | 37.1 |
Net | $ 50 | 44.9 |
Returnable bottles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 3 years | |
Returnable bottles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life in Years | 5 years | |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Cost, Finance leases | 37.6 | |
Accumulated Depreciation, Finance leases | 7.2 | |
Net, Finance leases | $ 30.4 |
Property, Plant & Equipment, Ne
Property, Plant & Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | $ 685.6 | $ 558.1 | |
Depreciation | 138.8 | 112.1 | $ 108.7 |
Construction In Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | $ 1.2 | $ 2.4 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Not subject to amortization | ||
Total intangible assets not subject to amortization | $ 455.5 | $ 287.1 |
Subject to amortization | ||
Intangibles subject to amortization Cost | 907.1 | 614.4 |
Total intangible assets | 1,362.6 | 901.5 |
Intangible assets - Accumulated Amortization | 375 | 304.5 |
Total | 532.1 | 309.9 |
Total intangible assets - Net | 987.6 | 597 |
Customer relationships | ||
Subject to amortization | ||
Intangibles subject to amortization Cost | 809.5 | 534.9 |
Intangible assets - Accumulated Amortization | 324.3 | 267.5 |
Total | 485.2 | 267.4 |
Patents | ||
Subject to amortization | ||
Intangibles subject to amortization Cost | 19.2 | 15.2 |
Intangible assets - Accumulated Amortization | 6.4 | 4 |
Total | 12.8 | 11.2 |
Software | ||
Subject to amortization | ||
Intangibles subject to amortization Cost | 62.5 | 49.4 |
Intangible assets - Accumulated Amortization | 38.2 | 28 |
Total | 24.3 | 21.4 |
Other | ||
Subject to amortization | ||
Intangibles subject to amortization Cost | 15.9 | 14.9 |
Intangible assets - Accumulated Amortization | 6.1 | 5 |
Total | 9.8 | 9.9 |
Trademarks | ||
Not subject to amortization | ||
Total intangible assets not subject to amortization | $ 455.5 | $ 287.1 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible and other assets | $ 63.3 | $ 56.5 | $ 63 |
Intangible Assets, Net - Estima
Intangible Assets, Net - Estimated Amortization Expense for Intangible Assets (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 60.3 | |
2022 | 56.4 | |
2023 | 48 | |
2024 | 41.4 | |
2025 | 35.6 | |
Thereafter | 290.4 | |
Total | $ 532.1 | $ 309.9 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 135.2 | $ 126.5 |
Accrued compensation | 55.5 | 46.8 |
Accrued sales incentives | 9.9 | 7.1 |
Accrued interest | 14.8 | 23.9 |
Payroll, sales and other taxes | 25.2 | 16 |
Accrued deposits | 70.1 | 77.1 |
Self-insurance liabilities | 15.5 | 17.5 |
Other accrued liabilities | 61.5 | 55.7 |
Total | $ 387.7 | $ 370.6 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) | Jan. 02, 2021USD ($) | Oct. 22, 2020USD ($) | Oct. 22, 2020EUR (€) | Dec. 28, 2019USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Total debt, Unamortized debt issuance costs | $ 15,300,000 | $ 14,000,000 | ||||
Carrying Value | 1,486,000,000 | |||||
Finance leases | 71,500,000 | 29,400,000 | ||||
Other debt financing | 4,900,000 | 1,300,000 | ||||
Long-term debt | 1,470,700,000 | 1,358,400,000 | ||||
Total long-term debt, principal amount | 1,486,000,000 | 1,372,400,000 | ||||
Less: Short-term borrowings and current debt: | ||||||
Short-term borrowings | 107,700,000 | 92,400,000 | ||||
Current maturities of long-term debt | 13,200,000 | 5,800,000 | ||||
Total current debt | 125,600,000 | 99,300,000 | ||||
Total long-term debt | 1,345,100,000 | 1,259,100,000 | ||||
Short-term borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 2,900,000 | 400,000 | ||||
Total debt, Unamortized debt issuance costs | 0 | 0 | ||||
Senior notes | 2,900,000 | 400,000 | ||||
Other debt financing | 4,900,000 | 1,300,000 | ||||
Less: Short-term borrowings and current debt: | ||||||
Short-term borrowings | 2,900,000 | 400,000 | ||||
Other debt financing | 4,700,000 | 1,100,000 | ||||
Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 1,360,400,000 | 1,273,100,000 | ||||
Total debt, Unamortized debt issuance costs | 15,300,000 | 14,000,000 | ||||
Less: Short-term borrowings and current debt: | ||||||
Total long-term debt | 1,345,100,000 | 1,259,100,000 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Carrying Value | 1,286,600,000 | 1,235,300,000 | ||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 104,800,000 | 0 | ||||
Total debt, Unamortized debt issuance costs | 0 | 0 | ||||
Carrying Value | 104,800,000 | 0 | ||||
Less: Short-term borrowings and current debt: | ||||||
Short-term borrowings | 104,800,000 | 0 | ||||
ABL Facility | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 0 | 92,000,000 | ||||
Total debt, Unamortized debt issuance costs | 0 | 0 | ||||
Carrying Value | 0 | 92,000,000 | ||||
Less: Short-term borrowings and current debt: | ||||||
ABL facility | $ 0 | 92,000,000 | ||||
5.500 % Senior Notes Due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | |||||
5.500 % Senior Notes Due in 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||||
Total long-term debt | $ 0 | 499,300,000 | $ 450,000,000 | |||
Total debt, Unamortized debt issuance costs | 0 | 5,800,000 | ||||
Carrying Value | $ 0 | 493,500,000 | ||||
5.500% Senior Notes Due in 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | |||||
5.500% Senior Notes Due in 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||||
Total long-term debt | $ 750,000,000 | 750,000,000 | $ 750,000,000 | |||
Total debt, Unamortized debt issuance costs | 7,000,000 | 8,200,000 | ||||
Carrying Value | 743,000,000 | 741,800,000 | ||||
3.875% Senior Notes Due in 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 3.875% | 3.875% | ||||
Total long-term debt | 551,900,000 | $ 533,500,000 | € 450,000,000 | 0 | ||
Total debt, Unamortized debt issuance costs | 8,300,000 | 0 | ||||
Carrying Value | $ 543,600,000 | $ 0 |
Debt - Long term Debt Payments
Debt - Long term Debt Payments (Details) $ in Millions | Jan. 02, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 125.6 |
2022 | 12.8 |
2023 | 12.4 |
2024 | 11 |
2025 | 760.7 |
Thereafter | 563.5 |
Total debt | $ 1,486 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) | Mar. 06, 2020 | Jan. 02, 2021 | Dec. 28, 2019 |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rate | 3.40% | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowed amount | $ 350,000,000 | ||
Maturity period | 5 years | ||
Financing fees | $ 3,400,000 | ||
Outstanding borrowings | $ 104,800,000 | ||
Unused availability | $ 194,600,000 | ||
Weighted average effective interest rate | 2.10% | ||
Revolving Credit Facility | Line of Credit | Federal Funds | |||
Debt Instrument [Line Items] | |||
Applicable margin | 0.50% | ||
Revolving Credit Facility | Line of Credit | Eurodollar | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.00% | ||
Revolving Credit Facility | Line of Credit | Eurodollar | Minimum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.375% | ||
Revolving Credit Facility | Line of Credit | Eurodollar | Maximum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 2.00% | ||
Revolving Credit Facility | Line of Credit | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 0.375% | ||
Commitment fee (as a percent) | 0.20% | ||
Revolving Credit Facility | Line of Credit | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.00% | ||
Commitment fee (as a percent) | 0.30% | ||
Revolving Credit Facility | Line of Credit | Abl Facility | |||
Debt Instrument [Line Items] | |||
Unamortized deferred costs | $ 1,800,000 | ||
Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 50,600,000 | ||
Letter of Credit aAnd Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 155,400,000 |
Debt - 3.875% Senior Notes due
Debt - 3.875% Senior Notes due in 2028 (Details) | Oct. 22, 2020USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | Jan. 02, 2021USD ($) | Oct. 22, 2020EUR (€) | Dec. 28, 2019USD ($) |
3.875% Senior Notes Due in 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 3.875% | 3.875% | ||||
Debt face amount | $ 533,500,000 | $ 551,900,000 | € 450,000,000 | $ 0 | ||
Financing fees | $ 8,500,000 | |||||
Financing fees, amortization period | 8 years | |||||
5.500 % Senior Notes Due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | |||||
5.500 % Senior Notes Due in 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||||
Debt face amount | $ 450,000,000 | $ 0 | 499,300,000 | |||
Financing fees | $ 11,300,000 | |||||
Financing fees, amortization period | 8 years | |||||
5.500% Senior Notes Due in 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | |||||
5.500% Senior Notes Due in 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||||
Debt face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||
Financing fees | $ 11,700,000 | |||||
Financing fees, amortization period | 8 years |
Debt - 5.500% Senior Notes due
Debt - 5.500% Senior Notes due in 2025 (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2017 | Jan. 02, 2021 | Dec. 28, 2019 | |
5.500% Senior Notes Due in 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate on notes (as a percent) | 5.50% | ||
5.500% Senior Notes Due in 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |
Debt face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 |
Financing fees | $ 11,700,000 | ||
Financing fees, amortization period | 8 years | ||
6.750% Senior Notes Due in 2020 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on notes (as a percent) | 6.75% | ||
Amount to be repaid | $ 625,000,000 | ||
10.000% Senior Notes Due in 2021 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on notes (as a percent) | 10.00% | ||
Amount to be repaid | $ 100,000,000 |
Debt - 5.500% Senior Notes du_2
Debt - 5.500% Senior Notes due in 2024 (Details) | Oct. 22, 2020USD ($) | Jun. 30, 2016USD ($) | Jan. 02, 2021USD ($) | Oct. 22, 2020EUR (€) | Dec. 28, 2019USD ($) |
5.500 % Senior Notes Due in 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | ||||
5.500 % Senior Notes Due in 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | |||
Debt face amount | $ 450,000,000 | $ 0 | $ 499,300,000 | ||
Financing fees | $ 11,300,000 | ||||
Financing fees, amortization period | 8 years | ||||
Repayment of debt, premium payments | $ 14,700,000 | ||||
Repayment of debt, accrued interest payments | 9,000,000 | ||||
Write-off of deferred financing fees | $ 5,100,000 | ||||
5.500 % Senior Notes Due in 2024 | Senior Notes | Eden | |||||
Debt Instrument [Line Items] | |||||
Financing fees | $ 11,000,000 | ||||
3.875% Senior Notes Due in 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes (as a percent) | 3.875% | 3.875% | |||
Debt face amount | $ 533,500,000 | $ 551,900,000 | € 450,000,000 | $ 0 | |
Financing fees | $ 8,500,000 | ||||
Financing fees, amortization period | 8 years |
Debt - Revolving Credit Facil_2
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - Line of Credit | Mar. 06, 2020USD ($)segment |
Debt Instrument [Line Items] | |
Number of financial covenants | segment | 2 |
Leverage ratio (not more than) | 3.50% |
Leverage ratio, allowable temporary increase | 4.00% |
Consummate material acquisition, amount (not less than) | $ | $ 125,000,000 |
Interest rate coverage ratio (not less than) | 3.00% |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Total expenses with respect to plans | $ 6 | $ 5.2 | $ 2.3 |
Expected contribution to pension plans, next fiscal year | 0.7 | ||
Total | 15.1 | 14 | 12.7 |
U.S. | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accumulated benefit obligation | 9.5 | 8.6 | |
Total | $ 9.1 | 8.1 | 6.9 |
U.S. | Equity securities | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 30.00% | ||
U.S. | Equity securities | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 45.00% | ||
U.S. | Fixed income investments | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 55.00% | ||
U.S. | Fixed income investments | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 70.00% | ||
International | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accumulated benefit obligation | $ 13.4 | 13.1 | |
Total | $ 6 | $ 5.9 | $ 5.8 |
International | Equity securities | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 50.00% | ||
International | Equity securities | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 80.00% | ||
International | Fixed income investments | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 20.00% | ||
International | Fixed income investments | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 50.00% | ||
International | Real estate | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 0.00% | ||
International | Real estate | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 30.00% | ||
International | Alternative Investments | Minimum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 0.00% | ||
International | Alternative Investments | Maximum | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets, target allocation percentage in securities | 15.00% |
Retirement Plans - Summary of C
Retirement Plans - Summary of Change in Benefit Obligations, Change in Plan Assets and Unfunded Status of DB Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | |
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | $ 21.7 | $ 18.7 | |||
Plan amendment | 0.4 | ||||
Service cost | 1 | 0.8 | $ 0.8 | ||
Interest cost | 0.4 | 0.5 | 0.4 | ||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.5) | (1.9) | |||
Actuarial losses (gains) | 0.8 | 2.3 | |||
Curtailment gains | (0.9) | ||||
Translation losses | 1.1 | 0.6 | |||
Projected benefit obligation at end of year | 22.9 | 21.7 | 18.7 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 14 | 12.7 | |||
Employer contributions | 0.8 | 0.8 | |||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.2) | (1.4) | |||
Settlement gains | 0.2 | ||||
Curtailment losses | (0.6) | ||||
Expected return on plan assets | 0.2 | ||||
Actual return on plan assets | 1.1 | 1.2 | |||
Translation gains | 0.5 | 0.2 | |||
Fair value at end of year | 15.1 | 14 | 12.7 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (21.7) | (21.7) | (18.7) | $ (22.9) | $ (21.7) |
Fair value of plan assets | 14 | 14 | 12.7 | 15.1 | 14 |
Unfunded status | (7.8) | (7.7) | |||
U.S. | |||||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 8.6 | 7.9 | |||
Plan amendment | 0 | ||||
Service cost | 0 | 0 | 0 | ||
Interest cost | 0.3 | 0.3 | 0.3 | ||
Plan participant contributions | 0 | 0 | |||
Benefit payments | (0.4) | (0.4) | |||
Actuarial losses (gains) | 1 | 0.8 | |||
Curtailment gains | 0 | ||||
Translation losses | 0 | 0 | |||
Projected benefit obligation at end of year | 9.5 | 8.6 | 7.9 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 8.1 | 6.9 | |||
Employer contributions | 0.3 | 0.3 | |||
Plan participant contributions | 0 | 0 | |||
Benefit payments | (0.4) | (0.4) | |||
Settlement gains | 0 | ||||
Curtailment losses | 0 | ||||
Expected return on plan assets | 0 | ||||
Actual return on plan assets | 1.1 | 1.3 | |||
Translation gains | 0 | 0 | |||
Fair value at end of year | 9.1 | 8.1 | 6.9 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (8.6) | (8.6) | (7.9) | (9.5) | (8.6) |
Fair value of plan assets | 8.1 | 8.1 | 6.9 | 9.1 | 8.1 |
Unfunded status | (0.4) | (0.5) | |||
International | |||||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 13.1 | 10.8 | |||
Plan amendment | 0.4 | ||||
Service cost | 1 | 0.8 | 0.8 | ||
Interest cost | 0.1 | 0.2 | 0.1 | ||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (1.1) | (1.5) | |||
Actuarial losses (gains) | (0.2) | 1.5 | |||
Curtailment gains | (0.9) | ||||
Translation losses | 1.1 | 0.6 | |||
Projected benefit obligation at end of year | 13.4 | 13.1 | 10.8 | ||
Change in Plan Assets | |||||
Plan assets beginning of year | 5.9 | 5.8 | |||
Employer contributions | 0.5 | 0.5 | |||
Plan participant contributions | 0.3 | 0.3 | |||
Benefit payments | (0.8) | (1) | |||
Settlement gains | 0.2 | ||||
Curtailment losses | (0.6) | ||||
Expected return on plan assets | 0.2 | ||||
Actual return on plan assets | 0 | (0.1) | |||
Translation gains | 0.5 | 0.2 | |||
Fair value at end of year | 6 | 5.9 | 5.8 | ||
Funded Status of Plan | |||||
Projected benefit obligation | (13.4) | (10.8) | (10.8) | (13.4) | (13.1) |
Fair value of plan assets | $ 5.9 | $ 5.9 | $ 5.8 | 6 | 5.9 |
Unfunded status | $ (7.4) | $ (7.2) |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Benefit Plans [Line Items] | |||
Service cost | $ 1 | $ 0.8 | $ 0.8 |
Interest cost | 0.4 | 0.5 | 0.4 |
Expected return on plan assets | (0.6) | (0.5) | (0.5) |
Curtailment gain | (0.3) | ||
Recognized net gain due to settlement | (0.3) | ||
Net periodic pension (benefit) cost | 0.5 | 0.8 | 0.4 |
U.S. | |||
Benefit Plans [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.3 |
Expected return on plan assets | (0.5) | (0.5) | (0.5) |
Curtailment gain | 0 | ||
Recognized net gain due to settlement | 0 | ||
Net periodic pension (benefit) cost | (0.2) | (0.2) | (0.2) |
International | |||
Benefit Plans [Line Items] | |||
Service cost | 1 | 0.8 | 0.8 |
Interest cost | 0.1 | 0.2 | 0.1 |
Expected return on plan assets | (0.1) | 0 | 0 |
Curtailment gain | (0.3) | ||
Recognized net gain due to settlement | (0.3) | ||
Net periodic pension (benefit) cost | $ 0.7 | $ 1 | $ 0.6 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax which have Not yet been Recognized in Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Benefit Plans [Line Items] | |||
Unrecognized net actuarial (loss) income | $ (1.1) | $ (1) | $ 0.3 |
Total accumulated other comprehensive (loss) income | (1.1) | (1) | 0.3 |
U.S. | |||
Benefit Plans [Line Items] | |||
Unrecognized net actuarial (loss) income | (0.4) | (0.1) | (0.1) |
Total accumulated other comprehensive (loss) income | (0.4) | (0.1) | (0.1) |
International | |||
Benefit Plans [Line Items] | |||
Unrecognized net actuarial (loss) income | (0.7) | (0.9) | 0.4 |
Total accumulated other comprehensive (loss) income | $ (0.7) | $ (0.9) | $ 0.4 |
Retirement Plans - Assumptions
Retirement Plans - Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
U.S. | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 2.00% | 3.00% | 4.00% |
Expected long-term rate of return on plan assets | 6.30% | 6.30% | 6.30% |
International | |||
Net Periodic Benefit Cost Assumptions [Line Items] | |||
Discount rate | 1.30% | 1.10% | 2.40% |
Expected long-term rate of return on plan assets | 2.10% | 1.30% | 2.70% |
Rate of compensation increase | 1.20% | 2.70% | 1.40% |
CPI Inflation factor | 0.10% | 0.30% | 0.30% |
Retirement Plans - Assumption_2
Retirement Plans - Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.00% | 4.00% | 3.50% |
Expected long-term rate of return on plan assets | 6.30% | 6.30% | 6.30% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.30% | 1.10% | 2.40% |
Expected long-term rate of return on plan assets | 2.10% | 1.30% | 2.70% |
Inflation factor | 0.10% | 0.30% | 0.30% |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Pension Plan Weighted-Average Asset Allocations by Asset Category (Details) | Jan. 02, 2021 | Dec. 28, 2019 |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 48.20% | 46.30% |
U.S. | Fixed income investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 51.80% | 53.70% |
International | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 57.30% | 56.80% |
International | Fixed income investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 32.60% | 33.20% |
International | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations (as a percent) | 10.10% | 10.00% |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Benefit Payments Expected to be Paid (Details) $ in Millions | Jan. 02, 2021USD ($) |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2021 | $ 1.6 |
FY 2022 | 1.2 |
FY 2023 | 1 |
FY 2024 | 1.2 |
FY 2025 | 1.1 |
FY 2026 through FY 2030 | 11.8 |
U.S. | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2021 | 0.5 |
FY 2022 | 0.5 |
FY 2023 | 0.5 |
FY 2024 | 0.5 |
FY 2025 | 0.5 |
FY 2026 through FY 2030 | 2.6 |
International | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
FY 2021 | 1.1 |
FY 2022 | 0.7 |
FY 2023 | 0.5 |
FY 2024 | 0.7 |
FY 2025 | 0.6 |
FY 2026 through FY 2030 | $ 9.2 |
Retirement Plans - Schedule o_5
Retirement Plans - Schedule of Fair Values of Company's International Plan Assets (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | $ 15.1 | $ 14 | $ 12.7 |
Level 1 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 3.4 | 3.3 | |
Level 1 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 1.8 | 1.6 | |
Level 1 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 1.6 | 1.7 | |
Level 1 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 1 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 2 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 2.6 | 2.6 | |
Level 2 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 2 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 2 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 2 | 2 | |
Level 2 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0.6 | 0.6 | |
Level 3 | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 3 | Non-U.S. equity securities | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 3 | Non-U.S. bonds | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 3 | Insurance contract | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | 0 | 0 | |
Level 3 | Real estate | |||
Schedule of Expected Future Pension Benefit Payment [Line Items] | |||
Total | $ 0 | $ 0 |
Consolidated Accumulated Othe_3
Consolidated Accumulated Other Comprehensive (Loss) Income - Changes in Consolidated Accumulated Other Comprehensive (Loss) Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,166.2 | $ 1,170.4 | $ 885.7 |
OCI before reclassifications | (15.7) | 25.2 | (39.8) |
Amounts reclassified from AOCI | (2.5) | 8 | 32.5 |
Total other comprehensive (loss) income | (18.2) | 33.2 | (7.3) |
Ending Balance | 1,346.9 | 1,166.2 | 1,170.4 |
Gains and Losses on Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 11.2 | (9.7) | (1.4) |
OCI before reclassifications | (8.7) | 12.9 | (14.5) |
Amounts reclassified from AOCI | (2.5) | 8 | 6.2 |
Total other comprehensive (loss) income | (11.2) | 20.9 | (8.3) |
Ending Balance | 0 | 11.2 | (9.7) |
Pension Benefit Plan Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (1) | 0.3 | (16.8) |
OCI before reclassifications | (0.1) | (1.3) | 0.2 |
Amounts reclassified from AOCI | 0 | 0 | 16.9 |
Total other comprehensive (loss) income | (0.1) | (1.3) | 17.1 |
Ending Balance | (1.1) | (1) | 0.3 |
Currency Translation Adjustment Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (78.7) | (92.3) | (76.2) |
OCI before reclassifications | (6.9) | 13.6 | (25.5) |
Amounts reclassified from AOCI | 0 | 0 | 9.4 |
Total other comprehensive (loss) income | (6.9) | 13.6 | (16.1) |
Ending Balance | (85.6) | (78.7) | (92.3) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (68.5) | (101.7) | (94.4) |
Total other comprehensive (loss) income | (18.2) | 33.2 | (7.3) |
Ending Balance | $ (86.7) | $ (68.5) | $ (101.7) |
Consolidated Accumulated Othe_4
Consolidated Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income to Total Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ (223.2) | $ (213.4) | $ (202.1) | $ (200.9) | $ (179.8) | $ (185.8) | $ (184) | $ (184.6) | $ (839.6) | $ (734.2) | $ (767.4) |
Total before taxes | (152.5) | (6.3) | 7.1 | ||||||||
Tax (expense) or benefit | (4.3) | (4.5) | 8.3 | ||||||||
Net of tax | (131.7) | 2.9 | 383.5 | ||||||||
Tax impact (decrease) increase | 1.3 | 3.6 | |||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net of tax | 2.5 | (8) | (32.5) | ||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Gains and losses on derivative instruments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before taxes | 2.5 | (8) | (6.2) | ||||||||
Tax (expense) or benefit | 0 | 0 | 0 | ||||||||
Net of tax | 2.5 | (8) | (6.2) | ||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Gains and losses on derivative instruments | Foreign currency and commodity hedges | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 0.1 | (8) | (6.2) | ||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Gains and losses on derivative instruments | Commodity hedges | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of discontinued operations | 2.4 | 0 | 0 | ||||||||
Tax impact (decrease) increase | (1.3) | ||||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Amortization of pension benefit plan items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of discontinued operations | 0 | 0 | (16.9) | ||||||||
Total before taxes | 0 | 0 | (16.9) | ||||||||
Tax (expense) or benefit | 0 | 0 | 0 | ||||||||
Net of tax | 0 | 0 | (16.9) | ||||||||
Tax impact (decrease) increase | 3.6 | ||||||||||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Foreign currency translation adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of discontinued operations | $ 0 | $ 0 | $ (9.4) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jan. 02, 2021USD ($)segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) |
Operating Leased Assets [Line Items] | |||
Purchase obligation | $ 30.4 | ||
Number of third-party lessors | segment | 2 | ||
Maximum potential amount of undiscounted future payments under the guarantee | $ 19 | ||
ABL Facility | |||
Operating Leased Assets [Line Items] | |||
Standby letters of credit outstanding | $ 50.6 | $ 47.4 | $ 46.1 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value | $ 1,486 | |||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value | 1,286.6 | $ 1,235.3 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 1,327.1 | 1,289.8 | ||
5.500 % Senior Notes Due in 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate on notes (as a percent) | 5.50% | |||
5.500 % Senior Notes Due in 2024 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||
Carrying Value | $ 0 | 493.5 | ||
5.500 % Senior Notes Due in 2024 | Level 1 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 0 | 514.5 | ||
5.500% Senior Notes Due in 2025 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate on notes (as a percent) | 5.50% | |||
5.500% Senior Notes Due in 2025 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate on notes (as a percent) | 5.50% | 5.50% | ||
Carrying Value | $ 743 | 741.8 | ||
5.500% Senior Notes Due in 2025 | Level 1 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 767.2 | 775.3 | ||
3.875% senior notes due in 2028 1, 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate on notes (as a percent) | 3.875% | |||
3.875% senior notes due in 2028 1, 2 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value | $ 543.6 | 0 | ||
3.875% senior notes due in 2028 1, 2 | Level 1 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 559.9 | $ 0 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) - Schedule of Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, net | $ 505 | $ 517.5 | $ 456.8 | $ 474.2 | $ 440 | $ 472.1 | $ 455.6 | $ 427.7 | $ 1,953.5 | $ 1,795.4 | $ 1,791 |
Cost of sales | 223.2 | 213.4 | 202.1 | 200.9 | 179.8 | 185.8 | 184 | 184.6 | 839.6 | 734.2 | 767.4 |
Gross profit | 281.8 | 304.1 | 254.7 | 273.3 | 260.2 | 286.3 | 271.6 | 243.1 | 1,113.9 | 1,061.2 | 1,023.6 |
Selling, general and administrative expenses | 247.6 | 257.2 | 246.7 | 255.1 | 236.5 | 244.2 | 245.7 | 235.8 | 1,006.6 | 962.2 | 955 |
Loss on disposal of property, plant and equipment, net | 4.4 | 2.3 | 2.5 | 1.4 | 2.9 | 1.1 | 1.7 | 1.9 | 10.6 | 7.6 | 8.7 |
Acquisition and integration expenses | 5.3 | 3.3 | 4.3 | 20.8 | 6.4 | 2.6 | 2.7 | 4.7 | 33.7 | 16.4 | 17.2 |
Goodwill and intangible asset impairment charges | 0 | 0 | 115.2 | 0 | 115.2 | 0 | 0 | ||||
Operating (loss) income | 24.5 | 41.3 | (114) | (4) | 14.4 | 38.4 | 21.5 | 0.7 | (52.2) | 75 | 42.7 |
Net (loss) income from continuing operations | (20) | 22.3 | (131.7) | (27.4) | 1.9 | 7.3 | 2.7 | (22.7) | (156.8) | (10.8) | 15.4 |
Net income (loss) from discontinued operations, net of income taxes | (1.2) | (0.3) | (4.3) | 30.9 | 6.2 | 2.8 | 1.7 | 3 | 25.1 | 13.7 | 368.1 |
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ (21.2) | $ 22 | $ (136) | $ 3.5 | $ 8.1 | $ 10.1 | $ 4.4 | $ (19.7) | $ (131.7) | $ 2.9 | $ 382.9 |
Basic: | |||||||||||
Continuing operations (In USD per share) | $ (0.12) | $ 0.14 | $ (0.82) | $ (0.19) | $ 0.01 | $ 0.05 | $ 0.02 | $ (0.17) | $ (1.01) | $ (0.08) | $ 0.11 |
Discontinued operations (In USD per share) | (0.01) | 0 | (0.03) | 0.22 | 0.05 | 0.02 | 0.01 | 0.03 | 0.16 | 0.10 | 2.64 |
Net (loss) income (In USD per share) | (0.13) | 0.14 | (0.85) | 0.02 | 0.06 | 0.07 | 0.03 | (0.14) | (0.85) | 0.02 | 2.75 |
Diluted: | |||||||||||
Continuing operations (In USD per share) | (0.12) | 0.14 | (0.82) | (0.19) | 0.01 | 0.05 | 0.02 | (0.17) | (1.01) | (0.08) | 0.11 |
Discontinued operations (In USD per share) | (0.01) | 0 | (0.03) | 0.22 | 0.05 | 0.02 | 0.01 | 0.03 | 0.16 | 0.10 | 2.60 |
Net (loss) income (In USD per share) | $ (0.13) | $ 0.14 | $ (0.85) | $ 0.02 | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.14) | $ (0.85) | $ 0.02 | $ 2.71 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Feb. 23, 2021$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividend declared (per share) | $ 0.06 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ (130.3) | $ (109) | $ (138.6) |
Reduction in Sales | 0.1 | 0 | 0 |
Charged to Costs and Expenses | (42.5) | (32.4) | (9.8) |
Charged to Other Accounts | (11.7) | (2.5) | 36.7 |
Deductions | 5.4 | 13.6 | 2.7 |
Balance at End of Year | (179) | (130.3) | (109) |
Discontinued Operations, Disposed of by Sale | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance | 35.1 | ||
Accounts receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (8.8) | (9.6) | (8) |
Reduction in Sales | 0.1 | 0 | 0 |
Charged to Costs and Expenses | (13.4) | (12.7) | (13.7) |
Charged to Other Accounts | (4) | 0.1 | 9.8 |
Deductions | 5.4 | 13.4 | 2.3 |
Balance at End of Year | (20.7) | (8.8) | (9.6) |
Inventories | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (1.2) | (1.4) | (1.5) |
Reduction in Sales | 0 | 0 | 0 |
Charged to Costs and Expenses | (0.6) | 0 | (0.3) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0.2 | 0.4 |
Balance at End of Year | (1.8) | (1.2) | (1.4) |
Deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | (120.3) | (98) | (129.1) |
Reduction in Sales | 0 | 0 | 0 |
Charged to Costs and Expenses | (28.5) | (19.7) | 4.2 |
Charged to Other Accounts | (7.7) | (2.6) | 26.9 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ (156.5) | $ (120.3) | $ (98) |