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Other Expense (Income), Net
6 Months Ended
Jun. 27, 2020
Other Income and Expenses [Abstract]  
Other Expense (Income), Net [Text Block]

10.  Other Expense (Income), Net

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

  Quarter ended  Two quarters ended 
  June 27, 2020  June 29, 2019  June 27, 2020  June 29, 2019 
  $  $  $  $ 
Contingent consideration(1)     (2,286)  
Product withdrawal and recall costs(2) (322)   (322) 260 
Employee termination and recruitment costs(3) 40  669  610  2,068 
Facility closure costs(4) (24) 52  365  308 
Gain on sale of soy and corn business (see note 3)   201    (45,378)
Settlement gain on project cancellation   (507)   (507)
Other (27) 30  2  182 
  (333) 445  (1,631) (43,067)

 

(1) Contingent consideration

For the two quarters ended June 27, 2020, income represents a gain on the settlement of the final contingent consideration obligation payable under an earn-out arrangement with the former unitholders of Citrusource, LLC, which was acquired by the Company in March 2015. On May 5, 2020, the parties agreed to settle the obligation for an amount of $2.0 million, of which $1.0 million was paid at the time of settlement and the remainder is being paid over the subsequent 10 months. As at June 27, 2020, the remaining $0.9 million obligation (December 28, 2019 - $4.3 million) was recorded in the current portion of long-term liabilities on the consolidated balance sheets.

(2) Product withdrawal and recall costs

For the quarter and two quarters ended June 27, 2020, income represents the reversal of previously accrued costs related to a withdrawal of certain consumer-packaged products. These costs were recognized in other expense in 2016.

For the two quarters ended June 29, 2019, expense 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 2016.

 

(3) Employee termination and recruitment costs

For the quarter and two quarters ended June 27, 2020, expense represents severance benefits of $0.5 million and $1.5  million, respectively, for employees terminated in connection with the consolidation of the Company's corporate office functions and other headcount reductions under the Value Creation Plan, net of the reversal of $0.4 million and $0.9 million, respectively, of previously recognized stock-based compensation expense related to forfeited awards previously granted to terminated employees.

For the quarter ended June 29, 2019, expense represents severance benefits of $0.7 million for employees terminated in connection with the Value Creation Plan, and, for the two quarters ended June 29, 2019, expense represents severance benefits of $3.5 million for employees terminated in connection with the Value Creation Plan, including the Company's former CEO, net of the reversal of $2.1 million of previously recognized stock-based compensation expense related to forfeited awards previously granted to those employees. In addition, expenses include recruitment costs related to the Company's CEO transition.

(4) Facility closure costs

For the quarter and two quarters ended June 27, 2020, expense relates to the costs to close an organic ingredient warehousing facility located in China.

For the quarter and two quarters ended June 29, 2019, expense includes the costs to dismantle and move equipment from a former soy extraction facility located in Heuvelton, New York, which was sold in April 2019.