Other expense (income), net

12 Months Ended

Dec. 29, 2018

Other Income And Expenses [Abstract]

Other Income And Other Expense Disclosure Text Block

17. Other Expense (Income), Net

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

		December 29, 2018	December 30, 2017	December 31, 2016
		$	$	$
Reserve for notes receivable(1)		2,232	-	-
Product withdrawal and recall costs(2)		1,504	413	2,838
Impairment of long-lived assets and facility closure
	costs(3)	1,264	18,193	13,257
Employee termination costs(4)		397	5,636	4,186
Increase (decrease) in fair value of contingent
	consideration (see note 5(4))	(2,635)	371	(1,158)
Legal settlement(5)		-	(1,024)	9,000
Business acquisition costs		-	-	233
Other		63	71	(64)
		2,825	23,660	28,292

(1) Reserve for notes receivable

For the year endedDecember 29, 2018, represents a bad debt reserve for notes receivable associated with a previously sold business. The face amount of the notes was $1.4 million, which represented the Company’s cash investment in the notes. The notes had accelerated payment terms that entitled the Company to a multiple-times payout of the face amount of the notes. The accelerated payment terms were originally fair-valued at $3.4 million. The Company has received cash payments on the notes of $2.2 million through December 29, 2018 and has estimated that it will receive $0.3 million of the remaining balance related to the accelerated payment terms.

(2) Product withdrawal and recall costs

For the years ended December 29, 2018 and December 30, 2017, represents product withdrawal and recall costs that were not eligible for reimbursement under the Company’s insurance policies or exceeded the limits of those policies, including certain costs related to the voluntary recall of certain roasted sunflower kernel products initiated by the Company in the second quarter of 2016.

For the year endedDecember 31, 2016, represents costs related to the voluntary withdrawal of certain consumer-packaged products due to quality-related issues, as well as certain direct costs and insurance deductibles related to the sunflower recall.

(3) Impairment of long-lived assets and facility closure costs

For the year endedDecember 29, 2018, included the remaining lease obligation (net of sublease rentals) related to the vacated nutrition bar processing facility, and an additional impairment loss and closure costs related to the disposal of the Wahpeton roasting facility.

For the year endedDecember 30, 2017,represents the impairment of assets associated with the exits from flexible resealable pouch and nutrition bar products lines and operations, and consolidation of roasted snack operations, as well as the early buyout of the San Bernardino equipment leases.

For the year endedDecember 31, 2016, represents the impairment of assets associated with the closures of the San Bernardino and Heuvelton facilities. In addition, includes 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.

(4)Employee termination costs

For the year endedDecember 29, 2018, represents severance benefits, net of forfeitures of stock-based awards, incurred in connection with the Value Creation Plan.

For the year endedDecember 30, 2017, represents severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan, including employees affected by the exits from flexible resealable pouch and nutrition bar product lines and operations, and consolidation of roasted snack operations.

For the year endedDecember 31, 2016, represents contractual severance benefits and previously unrecognized stock-based compensation expense recognized in connection with the departure of a former CEO, as well as costs for employees affected by the closures of the Company’s San Bernardino, Heuvelton and Buena Park facilities.

(5) Legal settlement

In 2016, the Company recorded a charge of $9.0 million related to the settlement of a product recall dispute with a customer involving certain flexible resealable pouch products manufactured by the Company in 2013. The settlement amount included up to $4.0 million in rebates payable to the customer over a four-year period. In connection with the exit from the flexible resealable pouch product lines and operations, the Company agreed to an upfront cash settlement of the remaining rebate obligation, resulting in a recovery of $1.0 million recognized in 2017.