Value Creation Plan

6 Months Ended

Jun. 27, 2020

Restructuring and Related Activities [Abstract]

4. Value Creation Plan

The Value Creation Plan is a broad-based initiative focused on increasing shareholder value through structural investments in people and assets, together with restructuring activities to streamline operations. In the first two quarters of 2020, measures taken under the Value Creation Plan included the consolidation of the Company's corporate office functions, the closure of an organic ingredient warehousing facility located in China, and other business development activities. In the first two quarters of 2019, actions taken under the Value Creation Plan related to the sale of the soy and corn business, and transition of the Company's Chief Executive Officer ("CEO"). The following table summarizes costs incurred by type under the Value Creation Plan for the two quarters ended June 27, 2020 and June 29, 2019:

			Employee
	Asset		recruitment,
	impairments		retention and
	and facility		termination		Professional
	closure costs		costs		fees		Total
	$		$		$		$
June 27, 2020
Balance payable, December 28, 2019⁽¹⁾	201		4,026		—		4,227
Costs incurred and charged to expense	365		1,320		789		2,474
Cash payments, net	(387	)	(2,175	)	(789	)	(3,351	)
Non-cash adjustments	(78	)	894		—		816
Balance payable, June 27, 2020⁽¹⁾	101		4,065		—		4,166

June 29, 2019
Balance payable, December 29, 2018	477		436		—		913
Costs incurred and charged to expense	308		2,947		278		3,533
Cash payments, net	(483	)	(3,886	)	(278	)	(4,647	)
Non-cash adjustments	—		2,102		—		2,102
Balance payable, June 29, 2019	302		1,599		—		1,901

(1) Balance payable was included in accounts payable and accrued liabilities on the consolidated balance sheet.

The following table summarizes costs incurred since the inception of the Value Creation Plan in 2016 to June 27, 2020:

			Employee
	Asset		recruitment,		Professional
	impairments		retention and		fees and
	and facility		termination		temporary
	closure costs		costs		labor costs		Total
	$		$		$		$
Costs incurred and charged to expense	35,325		24,289		23,121		82,735
Cash payments, net	(10,649	)	(25,672	)	(23,121	)	(59,442	)
Non-cash adjustments	(24,575	)	5,448		—		(19,127	)
Balance payable, June 27, 2020	101		4,065		—		4,166

For the quarters and two quarters ended June 27, 2020 and June 29, 2019, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:

	Quarter ended		Two quarters ended
	June 27, 2020	June 29, 2019	June 27, 2020	June 29, 2019
	$	$	$	$
Selling, general and administrative expenses⁽¹⁾	463	954	1,499	1,157
Other expense⁽²⁾	16	721	975	2,376
	479	1,675	2,474	3,533

(1) Professional fees and employee retention, recruitment and relocation costs recorded in selling general and administrative expenses were allocated to Corporate Services.

(2) For the quarter ended June 27, 2020, costs recorded in other expense were allocated as follows: Global Ingredients - $0.4 million (June 29, 2019 - $nil ); Plant-Based Foods and Beverages - $nil (June 29, 2019 - $0.1 million); Fruit-Based Foods and Beverages - $(0.2) million (June 29, 2019 - $0.5 million); and Corporate Services - $(0.2) million (June 29, 2019 - $0.2 million). For the two quarters ended June 27, 2020, costs recorded in other expense were allocated as follows: Global Ingredients - $0.8 million (June 29, 2019 - $0.0 million); Plant-Based Foods and Beverages - $0.0 million (June 29, 2019 - $0.5 million); Fruit-Based Foods and Beverages - $0.8 million (June 29, 2019 - $0.8 million); and Corporate Services - $(0.6) million (June 29, 2019 - $1.1 million).