v2.4.0.8
Discontinued operations
12 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Discontinued Operations And Disposal Groups [Abstract]    
Disposal Groups Including Discontinued Operations Disclosure Text Block

3. Discontinued Operations

Divestiture in Fiscal 2012

Purity Life Natural Health Products

 

On June 5, 2012, the Company completed the sale of Purity Life Natural Health Products (“Purity”), its Canadian natural health products distribution business, for cash consideration of $ 13,443 (Cdn $ 14,000) at closing, plus up to $ 672 (Cdn $ 700) of contingent consideration if Purity achieved certain earnings targets during the one-year period following the closing date. The earnings targets were not met and, therefore, no contingent consideration was recognized. The divestiture of Purity completed the Company's exit from all non-core distribution businesses. Purity was formerly part of the Company's former International Foods Group operating segment.

 

For the year ended December 29, 2012, the company recognized the following gain on sale of Purity in discontinued operations:

 

 

(1)              The divestiture resulted in a pre-tax accounting loss on sale of $750 (before giving effect to the accumulated currency translation adjustment). The Company recognized a recovery of income taxes for the associated loss for Canadian tax purposes.

 

Included in the loss before income taxes from discontinued operations for the year ended December 31, 2011, are impairment charges of $6,025 and $1,485 related to the write-down of intangible assets and property, plant and equipment, respectively, of Purity.

Divestiture in Fiscal 2011

Colorado Sun Oil Processing LLC

 

On August 12, 2011, the Company disposed of its interest in the Colorado Sun Oil Processing LLC (“CSOP”) joint venture to Colorado Mills, LLC (“Colorado Mills”) pursuant to the outcome of related bankruptcy proceedings. CSOP operated a vegetable oil refinery adjacent to Colorado Mills' sunflower crush plant and was formerly part of the former Grains and Foods Group operating segment. The operating results of CSOP were reclassified to discontinued operations, which included a pre-tax charge of $5,246 recorded in the year ended December 31, 2011, which was related to a separate arbitration ruling in favor of Colorado Mills in respect of the joint venture agreement. On June 18, 2013, the Company reached an agreement with Colorado Mills to settle the arbitration proceeding (see note 19). In connection with the settlement, the Company paid Colorado Mills $5,884, consisting of cash and equipment in use at the CSOP refinery. The expenses of CSOP included in discontinued operations for the years ended December 28, 2013 and December 29, 2012, related to legal fees and period interest costs the Company incurred in connection with the arbitration proceeding.

 

Operating Results Reported in Discontinued Operations

The following table presents the aggregate operating results of Purity and CSOP reported in earnings (loss) from discontinued operations:

 

    December 28, 2013December 29, 2012December 31, 2011
    $$$
Revenues - 26,914 62,205
       
Earnings (loss) before income taxes (570) 528 (15,724)
Recovery of (provision for) income taxes 210 (80) 4,465
Loss allocated to non-controlling interests - - 254
Earnings (loss) from discontinued operations,   
 net of income taxes (360) 448 (11,005)
     $
Cash consideration13,443
Transaction and related costs(1,254)
Net proceeds12,189
      
Net assets sold12,939
Accumulated currency translation adjustment related to net assets sold(1,359)
Pre-tax gain on sale609
Recovery of income taxes(1)199
Gain on sale of discontinued operations, net of income taxes808