2. Discontinued Operations

Tradin Organic

On December 30, 2020 (the "Closing Date"), the Company completed the divestiture of its organic ingredient sourcing and production business, Tradin Organic, by selling all of the Company's interests and rights in The Organic Corporation B.V. and Tradin Organics USA LLC to Amsterdam Commodities N.V. ("Acomo"), pursuant to a Master Purchase Agreement, dated November 25, 2020, among the Company, Acomo, and the other parties thereto (the "Transaction").

As of the Closing Date, the Company received cash consideration of $373.7 million (€305.1 million), net of cash acquired and debt assumed by Acomo. The Company realized a cash loss of $12.7 million on a foreign currency forward contract to economically hedge the exchange rate risks on the euro-denominated cash consideration between the date of the Master Purchase Agreement and the Closing Date. The Company recorded this loss in other expense, net, from continuing operations for the year ended January 2, 2021, as the loss was not considered a direct operating item of the discontinued operations of Tradin Organic. For the year ended January 2, 2021, the Company recognized a pre-tax gain on sale of Tradin Organic of $111.8 million, which was recorded in discontinued operations.

As described in note 20, on May 25, 2022, the Company and Acomo entered into a Settlement Agreement to resolve all outstanding matters related to the Master Purchase Agreement. In connection with the Settlement Agreement, the Company recognized earnings from discontinued operations of $4.7 million for the year ended December 31, 2022, which reflected the estimated tax benefits resulting from the final allocation of the purchase price between the share capital of The Organic Corporation B.V. and the membership interests of Tradin Organics USA LLC, partially offset by a cash payment of $5.9 million from the Company to Acomo to settle certain post-closing adjustments related to the Transaction, as well as professional fees incurred in connection with the arbitration proceedings.

The table below reconciles the major components of the results of discontinued operations to the amounts reported in the consolidated statements of operations for the years ended December 31, 2022 and January 2, 2021. The consolidated statement of operations for the year ended January 1, 2022 did not include any results of discontinued operations.

	December 31, 2022		January 2, 2021
	$		$
Revenues	-		503,036
Cost of goods sold	-		441,277
Selling, general and administrative expenses⁽¹⁾	-		26,953
Intangible asset amortization	-		1,451
Other income, net	-		(782	)
Foreign exchange loss	-		3,142
Interest expense⁽²⁾	-		2,409
Earnings before gain of sale	-		28,586
Pre-tax gain (loss) on sale	(8,241	)	111,818
Earnings from discontinued operations before income taxes	(8,241	)	140,404
Income tax expense (benefit)	(12,918	)	15,885
Loss attributable to non-controlling interests	-		(301	)
Earnings from discontinued operations	4,677		124,820

(1) Selling, general and administrative expenses exclude the allocation of corporate costs and include stock-based compensation expense attributed to employees of Tradin Organic.

(2) Interest expense reflects interest on debt directly attributed to Tradin Organic.