Goodwill and intangible assets

12 Months Ended

Dec. 28, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

9. Goodwill and Intangible Assets

		December 28, 2013	December 29, 2012
		$	$
Goodwill		53,673	57,414
Intangible assets with a finite life at cost, less accumulated
	amortization of $29,033 (December 29, 2012 - $24,300)	47,991	52,885

The following is a summary of changes in goodwill:

			$
Balance at December 31, 2011			49,387
	Acquisitions during the year		7,892
	Impact of foreign exchange and other		135
Balance at December 29, 2012			57,414
	Goodwill impairment		(3,552)
	Impact of foreign exchange and other		(189)
Balance at December 28, 2013			53,673

Opta Minerals performed its annual impairment test for goodwill as at September 30, 2013, and recognized a non-cash goodwill impairment loss of $ 3,552 related to one of its reporting units in the third quarter of 2013. Due to increased competition and reduced demand for industrial minerals in markets along the U.S. east coast, the operating profits and cash flows of the reporting unit were lower than expected in the fourth quarter of 2012 and first three quarters of 2013, reflecting reduced sales volumes, price concessions causing lower gross margins, and lower utilization of plant capacity. The fair value of the reporting unit was estimated based on the expected present value of future cash flows using unobservable (level 3) inputs, which included the following assumptions: (i) an estimated cumulative average operating income growth rate from 2014 to 2017 of 25.7%; (ii) a projected long-term annual operating income growth rate of 2.5%; and (iii) a risk-adjusted discount rate of 14.0%. The goodwill associated with the reporting unit was fully deductible for tax purposes. There was no indication of goodwill impairment related to the other reporting units of Opta Minerals based on the testing done as at September 30, 2013. As at November 30, 2013, Opta Minerals identified certain additional impairment indicators upon approval of its budget for fiscal 2014, which resulted in additional impairment tests being performed. These tests did not, however, result in any additional goodwill impairment losses. Given the timing of the budget approval process, Opta Minerals will now perform its annual impairment tests as at November 30.

The Company performed its annual test for goodwill impairment related to the reporting units of SunOpta Foods as of the beginning of the fourth quarter. Based on the quantitative testing performed as at September 29, 2013 (the first day of the fourth quarter), the Company determined that none of the goodwill associated with the SunOpta Foods reporting units was impaired.

There was no indication of goodwill impairment associated with the reporting units of either SunOpta Foods or Opta Minerals based on the testing done for the years ended December 29, 2012 and December 31, 2011.

The following is a summary of changes in intangible assets:

		Customer and other	Patents and
		relationships	trademarks	Other	Total
		$	$	$	$
Balance at December 31, 2011		45,369	546	2,120	48,035
	Acquisitions (see note 2)	9,347	-	-	9,347
	Additions	-	-	128	128
	Amortization	(4,163)	(101)	(669)	(4,933)
	Impact of foreign exchange	295	-	13	308
Balance at December 29, 2012		50,848	445	1,592	52,885
	Additions	-	12	170	182
	Impairment (see note 13)	(310)	-	-	(310)
	Amortization	(4,206)	(91)	(436)	(4,733)
	Impact of foreign exchange	246	-	(279)	(33)
Balance at December 28, 2013		46,578	366	1,047	47,991

The Company estimates that the aggregate future amortization expense associated with finite-life intangible assets in each of the next five fiscal years and thereafter will be as follows:

					$
2014					4,718
2015					4,551
2016					4,359
2017					4,359
2018					4,324
Thereafter					25,680
					47,991

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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