Other Expense (Income), Net

6 Months Ended

Jul. 01, 2017

Other Income And Expenses [Abstract]

Other Income And Other Expense Disclosure [Text Block]

11. Other Expense, Net

The components of other expense (income) were as follows:

		Quarter ended		Two quarters ended
		July 1, 2017	July 2, 2016	July 1, 2017	July 2, 2016
		$	$	$	$
Impairment of long-lived assets⁽¹⁾		-	-	3,723	1,735
Employee severance costs⁽²⁾		425	543	2,175	1,015
Product withdrawal and recall costs⁽³⁾		-	229	279	1,697
Increase (decrease) in fair value of contingent
	consideration⁽⁴⁾	84	(1,603)	204	(1,405)
Legal settlement⁽⁵⁾		-	9,000	-	9,000
Other		98	264	(331)	369
		607	8,433	6,050	12,411

(1) Impairment of long-lived assets

For the two quarters ended July 1, 2017, represents the loss on the disposal of the San Bernardino assets in connection with the Value Creation Plan (see note 2), including $3.2 million paid for the early buyout of the San Bernardino equipment leases.

For the two quarters ended July 2, 2016, represents the impairment of leasehold improvements at the Company’s Buena Park, California, facility on the consolidation of Company’s frozen fruit processing operations following the acquisition of Sunrise Holdings (Delaware), Inc. (“Sunrise”) in October 2015.

(2) Employee severance costs

For the quarter and two quarters ended July 1, 2017, represents severance benefits, net of forfeitures of stock-based awards, and legal costs incurred related to employee terminations in connection with the Value Creation Plan (see note 2).

For the quarter and two quarters ended July 2, 2016, severance costs primarily relate to employees impacted by the consolidation of the Company’s frozen fruit processing operations.

(3) Product withdrawal and recall costs

For the two quarters ended July 1, 2017, includes certain direct costs related to the voluntary recall of certain sunflower kernel products (see note 4) that were not eligible for reimbursement under the Company’s insurance policies.

For the quarter and two quarters ended July 2, 2016, the Company recognized estimated costs of $1.1 million related to the voluntary withdrawal of a consumer-packaged product due to a quality-related issue, and the $0.6 million for insurance deductibles related to the sunflower recall.

(4) Decrease in fair value of contingent consideration

For the quarter and two quarters ended July 2, 2016, includes a gain of $1.7 million on the settlement of the contingent consideration obligation related to the acquisition of Niagara Natural in August 2015.

(5) Legal settlement

For the quarter and two quarters ended July 2, 2016, reflects a charge related to the settlement of a product recall dispute with a customer involving certain flexible resealable pouch products manufactured by the Company in 2013.