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Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2019
Income Tax Disclosure [Abstract]  
(Loss) Income From Continuing Operations Before Income Taxes
Income (loss) from continuing operations, before income taxes consisted of the following:

For the Year Ended
(in millions of U.S. dollars)
December 28, 2019
 
December 29, 2018
 
December 30, 2017
Canada
$
(57.0
)
 
$
(26.1
)
 
$
(29.1
)
Outside Canada
66.4

 
50.2

 
(4.5
)
Income (loss) from continuing operations, before income taxes
$
9.4

 
$
24.1

 
$
(33.6
)
Income Tax (Benefit) Expense
Income tax expense (benefit) consisted of the following:

For the Year Ended
(in millions of U.S. dollars)
December 28, 2019
 
December 29, 2018
 
December 30, 2017
Current

 

 

Canada
$
(0.2
)
 
—

 
$
—

Outside Canada
12.6

 
2.3

 
3.9


$
12.4

 
$
2.3

 
$
3.9

Deferred

 

 

Canada
$
(1.0
)
 
$
(5.6
)
 
$
—

Outside Canada
(1.9
)
 
(1.5
)
 
(33.9
)

$
(2.9
)
 
$
(7.1
)
 
$
(33.9
)
Income tax expense (benefit)
$
9.5

 
$
(4.8
)
 
$
(30.0
)
Reconciliation of Income Taxes
The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision:

For the Year Ended
(in millions of U.S. dollars)
December 28, 2019
 
December 29, 2018
 
December 30, 2017
Income tax expense (benefit) based on Canadian statutory rates
$
2.5

 
$
6.4

 
$
(8.7
)
Foreign tax rate differential
(11.1
)
 
(2.6
)
 
(1.3
)
Local taxes
2.1

 
0.5

 
(0.2
)
Nontaxable interest income
(8.4
)
 
(9.8
)
 
(11.3
)
Impact of intercompany transactions and dividends
12.2

 
1.0

 
(9.2
)
Nontaxable capital gains
—

 
—

 
(3.7
)
Income tax credits
(0.5
)
 
—

 
—

Change in enacted tax rates
(0.1
)
 
3.4

 
(32.7
)
Change in valuation allowance
19.7

 
(4.2
)
 
45.8

Change in uncertain tax positions
0.3

 
(3.4
)
 
(2.4
)
Equity compensation
1.5

 
1.5

 
1.1

Permanent differences
1.6

 
1.1

 
(0.6
)
Outside basis differences on discontinued operations
—

 
—

 
(3.8
)
Adjustments to deferred taxes
(10.4
)
 
0.7

 
(3.4
)
Other items
0.1

 
0.6

 
0.4

Income tax expense (benefit)
$
9.5

 
$
(4.8
)
 
$
(30.0
)
Deferred Income Tax Assets and Liabilities
Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows:
(in millions of U.S. dollars)
December 28, 2019
 
December 29, 2018
Deferred tax assets

 

Net operating loss carryforwards
$
134.2

 
$
109.8

Capital loss carryforwards
12.0

 
13.1

Liabilities and reserves
28.2

 
25.0

Stock options
8.2

 
8.1

Inventories
4.0

 
3.8

Interest expense
11.3

 
12.2

Derivatives 1
—

 
2.8

Right of use lease obligations
49.1

 
—

Other 1
—

 
3.9


247.0

 
178.7

Deferred tax liabilities

 

Property, plant and equipment
(76.3
)
 
(65.7
)
Intangible assets
(125.1
)
 
(139.2
)
Right of use assets
(47.6
)
 
—

Derivatives
(3.9
)
 
—

Other
(1.2
)
 
—


(254.1
)
 
(204.9
)
Valuation allowance
(120.3
)
 
(98.0
)
Net deferred tax liability
$
(127.4
)
 
$
(124.2
)

______________________
1
Derivatives prior year amounts have been reclassified from other to conform to the current year presentation.
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows:

For the Year Ended
(in millions of U.S. dollars)
December 28, 2019
 
December 29, 2018
 
December 30, 2017
Unrecognized tax benefits at beginning of year
$
15.5

 
$
16.2

 
$
28.6

Additions based on tax positions taken during a prior period
5.0

 
1.3

 
0.2

Reductions based on tax positions taken during a prior period
(1.9
)
 
(0.1
)
 
(6.3
)
Settlement on tax positions taken during a prior period
—

 
—

 
(1.0
)
Tax rate change
—

 
(0.1
)
 
(4.5
)
Lapse in statute of limitations
(2.9
)
 
(4.3
)
 
(3.2
)
Additions based on tax positions taken during the current period
1.7

 
3.0

 
1.7

Cash payments
(0.2
)

—


—

Foreign exchange
0.1

 
(0.5
)
 
0.7

Unrecognized tax benefits at end of year
$
17.3

 
$
15.5

 
$
16.2