Income Tax (Benefit) Expense (Tables)

12 Months Ended

Jan. 02, 2016

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

(Loss) income before income taxes consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2016			January 3, 2015			December 28, 2013
Canada	$	24.2		$	17.2		$	30.7
Outside Canada		(26.3	)		(62.2	)		(6.9	)
(Loss) income before income taxes	$	(2.1	)	$	(45.0	)	$	23.8

Income Tax (Benefit) Expense

Income tax (benefit) expense consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2016			January 3, 2015			December 28, 2013
Current
Canada	$	4.0		$	—		$	(0.3	)
Outside Canada		3.7			2.5			(0.4	)
	$	7.7		$	2.5		$	(0.7	)
Deferred
Canada	$	(2.5	)	$	0.3		$	(0.6	)
Outside Canada		(27.9	)		(64.2	)		3.1
	$	(30.4	)	$	(63.9	)	$	2.5
Income tax (benefit) expense	$	(22.7	)	$	(61.4	)	$	1.8

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
	January 2,			January 3,			December 28,
(in millions of U.S. dollars)	2016			2015			2013
Income tax (benefit) expense based on Canadian statutory rates	$	(0.5	)	$	(11.5	)	$	5.7
Foreign tax rate differential		(3.7	)		(9.3	)		(0.6	)
Nontaxable interest income		(5.5	)		(9.3	)		(9.7	)
Nontaxable dividend income		(13.8	)		(11.2	)		(5.4	)
Nontaxable capital (gain) loss		(1.4	)		1.5			—
Dividend income		0.9			—			—
Changes in enacted tax rates		1.3			(1.4	)		(1.5	)
Change in valuation allowance		(0.4	)		(29.4	)		12.5
(Decrease) increase to uncertain tax positions		(0.6	)		1.9			0.8
Non-controlling interests		(2.1	)		(1.9	)		(1.8	)
Equity compensation adjustment to net operating loss		—			2.7			—
Permanent differences		1.3			1.7			0.4
Contingent consideration goodwill basis adjustments		—			1.0			(0.1	)
Equity compensation permanent adjustment		0.9			0.6			0.6
Mexico deferred adjustment		—			2.5			—
Preferred share costs		0.4			—			—
Other items		0.5			0.7			0.9
Income tax (benefit) expense	$	(22.7	)	$	(61.4	)	$	1.8

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:

	January 2,			January 3,
(in millions of U.S. dollars)	2016			2015
Deferred tax assets
Loss carryforwards	$	136.9		$	148.9
Leases		0.3			0.1
Property, plant & equipment		5.5			3.3
Liabilities and reserves		42.1			22.3
Stock options		5.9			3.0
Inventories		2.2			2.6
Other		5.6			4.4
		198.5			184.6
Deferred tax liabilities
Property, plant & equipment		(105.6	)		(127.9	)
Intangible assets		(146.4	)		(146.4	)
Other		—			(0.5	)
		(252.0	)		(274.8	)
Valuation allowance		(15.4	)		(15.8	)
Net deferred tax liability	$	(68.9	)	$	(106.0	)

Schedule of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities have been classified as follows on the Consolidated Balance Sheets:

	January 2,			January 3,
(in millions of U.S. dollars)	2016			2015
Deferred tax assets:
Current	$	—		$	—
Long-term		7.6			3.4
Deferred tax liabilities:
Current	$	—		$	—
Long-term		(76.5	)		(109.4	)
Net deferred tax liability	$	(68.9	)	$	(106.0	)

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
	January 2,			January 3,			December 28,
(in millions of U.S. dollars)	2016			2015			2013
Unrecognized tax benefits at beginning of year	$	12.5		$	10.5		$	9.2
Additions based on tax positions taken during a prior period		0.2			0.5			0.2
Reductions based on tax positions taken during a prior period		(0.2	)		(0.9	)		—
Settlement on tax positions taken during a prior period		(0.6	)		(0.8	)		(1.2	)
Lapse in statute of limitations		(1.8	)		—			—
Additions based on tax positions taken during the current period		1.9			3.9			2.4
Foreign exchange		(0.5	)		(0.7	)		(0.1	)
Unrecognized tax benefits at end of year	$	11.5		$	12.5		$	10.5