v2.4.0.6
Segmented information
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure Text Block

21. Segmented information

As described in note 22, in the first quarter of 2012, the Company implemented changes to its organizational structure to align the operations of SunOpta Foods according to the type of customers and markets served, rather than by product groupings. Consequently, the Company has realigned its reportable operating segments to reflect the resulting changes in management reporting and accountability to the Company's Chief Executive Officer. With this realignment, SunOpta Foods now consists of the following four operating segments: Grains and Foods Group, Ingredients Group, Consumer Products Group and International Foods Group. This new structure is more closely aligned with the Company's integrated business models that specialize in the sourcing, processing and packaging of natural, organic and specialty food products.

 

As a result of this realignment, the former Fruit Group was eliminated and the new Consumer Products Group was created to focus on non-grains based consumer packaged goods and is comprised of the Frozen Foods and Healthy Snacks operations which were part of the former Fruit Group, and the Food Solutions operations which were formerly part of the International Foods Group. The Fruit Ingredient operation of the former Fruit Group has been merged with the existing Ingredients Group. The Grains and Foods Group remains unchanged.

 

Effective with the realignment, the Company operates in two industries divided into six operating segments as follows:

 

(a)        SunOpta Foods sources, processes, packages, markets and distributes a wide range of natural, organic and specialty food products and ingredients with a focus on soy, corn, sunflower, fruit, fiber and other natural and organic food and natural health products. There are four operating segments within SunOpta Foods:

 

  • Grains and Foods Group is focused on vertically integrated sourcing, processing, packaging and marketing of grains, grain-based ingredients and packaged products;

     

  • Ingredients Group is focused primarily on insoluble oat and soy fiber products, and specialty fruit ingredients, and works closely with its customers to identify product formulation, cost and productivity opportunities aimed at transforming raw materials into value-added food ingredient solutions;

     

  • Consumer Products Group provides natural and organic consumer packaged food products to major global food manufacturers, distributors and supermarket chains with a variety of branded and private label non-grains based products; and

     

  • International Foods Group comprises European and North American based operations which source raw material ingredients and trade organic commodities. In addition, this group manufactures, packages and distributes retail natural health products, primarily in the Canadian marketplace.

 

(b)        Opta Minerals processes, distributes and recycles silica-free loose abrasives, roofing granules, industrial minerals and specialty sands for the foundry, steel, and bridge and ship-cleaning industries.

 

(c)        Corporate Services provide a variety of management, financial, information technology, treasury and administration services to the operating segments from the head office in Brampton, Ontario, and information and shared services in Minnesota.

 

The Company's assets, operations and employees are principally located in the U.S., Canada, Europe, China and Ethiopia. Revenues are allocated to the U.S., Canada and Europe and other external markets based on the location of the customer. Other expense (income) net, interest expense, net, and provision for (recovery of) income taxes are not allocated to the segments.

 

The following segmented information for the year ended December 31, 2011 is provided on the basis of the Company's new operating segments alignment:

 

 

 

December 31, 2011
     SunOptaOptaCorporate 
     FoodsMineralsServicesConsolidated
     $$$$
External revenues by market:     
 U.S.  705,043 63,708 - 768,751
 Canada   93,662 15,277 - 108,939
 Europe and other  190,251 14,135 - 204,386
Total revenues from external customers 988,956 93,120 - 1,082,076
         
Segment operating income (loss) 33,386 7,577 (7,769) 33,194
         
Other expense, net     5,097
Interest expense, net     8,839
Provision for income taxes     8,047
Earnings from continuing operations    11,211
         
Identifiable assets  484,185 92,812 54,506 631,503
Depreciation and amortization 14,465 4,207 775 19,447
Goodwill  42,161 7,226 - 49,387
Expenditures on property, plant and equipment 14,469 4,901 636 20,006

Other expense for the year ended December 31, 2011 includes impairments of long-lived assets in the International Foods Group of $7,510 and Consumer Products Group of $358 (see note 14(a)).

 

SunOpta Foods has the following segmented reporting for the year ended December 31, 2011, provided on the basis of the

Company's new operating segments alignment:

December 31, 2011
      Consumer  
    Grains andIngredientsProductsInternationalSunOpta
    Foods GroupGroupGroupFoods GroupFoods
    $$$$$
External revenues by market:     
 U.S. 396,279 80,861 161,339 66,564 705,043
 Canada 14,167 6,957 3,057 69,481 93,662
 Europe and other 68,749 3,256 843 117,403 190,251
Total revenues from     
 external customers 479,195 91,074 165,239 253,448 988,956
         
Segment operating income (loss) 22,813 7,083 (3,978) 7,468 33,386
         
Identifiable assets 235,563 61,426 64,818 122,378 484,185
Depreciation and amortization 6,894 2,454 2,478 2,639 14,465
Goodwill 19,066 12,030 2,934 8,131 42,161
Expenditures on property,     
 plant and equipment 9,182 1,985 2,940 362 14,469

January 1, 2011
    SunOptaOptaCorporate 
    FoodsMineralsServicesConsolidated
    $$$$
External revenues by market:    
 U.S. 582,948 54,713 - 637,661
 Canada 86,395 14,867 - 101,262
 Europe and other 148,098 11,288 - 159,386
Total revenues from    
 external customers 817,441 80,868 - 898,309
        
Segment operating income (loss) 46,442 7,753 (11,213) 42,982
        
Other expense, net    10,945
Goodwill impairment    1,654
Interest expense, net    9,749
Provision for income taxes    6,058
Earnings from continuing operations   14,576
        
Identifiable assets 472,473 87,853 48,974 609,300
Depreciation and amortization 12,642 4,099 1,101 17,842
Goodwill 41,842 6,332 - 48,174
Expenditures on property,    
 plant and equipment 15,214 1,580 856 17,650

Other expense for the year ended January 1, 2011 includes impairments of long-lived assets in the Consumer Products Group of $7,549 (see note 14(a)). The goodwill impairment charge of $1,654 for the year ended January 1, 2011 is related to the International Foods Group (see note 8).

 

SunOpta Foods has the following segmented reporting for the year ended January 1, 2011, provided on the basis of the

Company's new operating segments alignment:

January 1, 2011
      Consumer  
    Grains andIngredientsProductsInternationalSunOpta
    Foods GroupGroupGroupFoods GroupFoods
    $$$$$
External revenues by market:    
 U.S. 302,073 104,745 129,240 46,890 582,948
 Canada 6,474 8,492 4,551 66,878 86,395
 Europe and other 56,358 3,292 977 87,471 148,098
Total revenues from     
 external customers 364,905 116,529 134,768 201,239 817,441
         
Segment operating income (loss) 28,003 18,870 (1,302) 871 46,442
         
Identifiable assets 234,522 59,846 71,307 106,798 472,473
Depreciation and amortization 4,894 2,159 3,291 2,298 12,642
Goodwill 19,066 12,030 2,346 8,400 41,842
Expenditures on property,     
 plant and equipment 6,038 7,754 939 483 15,214

December 31, 2009
    SunOptaOptaCorporate 
    FoodsMineralsServicesConsolidated
    $$$$
External revenues by market:   
 U.S. 484,379 40,019 - 524,398
 Canada 91,475 13,155 - 104,630
 Europe and other 180,654 9,349 - 190,003
Total revenues from    
 external customers 756,508 62,523 - 819,031
        
Segment operating income (loss) 18,100 1,161 (6,614) 12,647
        
Other expense, net    2,245
Goodwill impairment    8,841
Interest expense, net    13,839
Recovery of income taxes    (3,038)
Loss from continuing operations   (9,240)
        
Identifiable assets 350,284 85,998 25,748 462,030
Depreciation and amortization 11,974 3,851 1,205 17,030
Goodwill 25,412 6,019 - 31,431
Expenditures on property,    
 plant and equipment 8,754 2,488 54 11,296

Of the total goodwill impairment charge of $8,841, $8,341 related to the Opta Minerals segment and $500 related to the Consumer Products Group segment (see note 8).

 

SunOpta Foods has the following segmented reporting for the year ended December 31, 2009, provided on the basis of the

Company's new operating segments alignment:

December 31, 2009
      Consumer  
    Grains andIngredientsProductsInternationalSunOpta
    Foods GroupGroupGroupFoods GroupFoods
    $$$$$
External revenues by market:     
 U.S. 226,477 94,347 124,198 39,357 484,379
 Canada 10,805 7,508 6,996 66,166 91,475
 Europe and other 87,747 4,058 1,970 86,879 180,654
Total revenues from     
 external customers 325,029 105,913 133,164 192,402 756,508
         
Segment operating income (loss) 18,484 12,257 (10,327) (2,314) 18,100
         
Identifiable assets 126,680 49,674 82,340 91,590 350,284
Depreciation and amortization 4,072 2,042 3,870 1,990 11,974
Goodwill 2,936 12,030 - 10,446 25,412
Expenditures on property,     
 plant and equipment 5,843 2,020 694 197 8,754

Geographic segments

       December 31, 2011
    U.S.CanadaEurope and OtherTotal
    $$$$
Property, plant and equipment 108,326 8,917 3,491 120,734
Goodwill 41,256 - 8,131 49,387
Total assets 288,767 227,380 115,356 631,503
        
       January 1, 2011
    U.S.CanadaEurope and OtherTotal
    $$$$
Property, plant and equipment 101,065 10,838 3,297 115,200
Goodwill 39,774 - 8,400 48,174
Total assets 247,390 270,666 91,244 609,300

Other includes operations in Europe, China and Ethiopia as part of the International Foods Group and operations in France and Slovakia as part of Opta Minerals.

 

For the years ended December 31, 2011, January 1, 2011 and December 31, 2009, the Company did not have any customers that exceeded 10% of total revenues.