Other Expense (Income), Net

9 Months Ended

Sep. 30, 2017

Other Income And Expenses [Abstract]

Other Income And Other Expense Disclosure [Text Block]

12. Other Expense, Net

The components of other expense (income) were as follows:

		Quarter ended		Three quarters ended
		September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
		$	$	$	$
Impairment of long-lived assets⁽¹⁾		4,467	10,300	8,190	12,035
Employee termination costs⁽²⁾		2,052	138	4,227	1,153
Product withdrawal and recall costs⁽³⁾		134	-	413	1,697
Increase (decrease) in fair value of contingent
	consideration⁽⁴⁾	83	124	287	(1,281)
Legal settlement⁽⁵⁾		(1,024)	-	(1,024)	9,000
Other		260	(250)	(71)	119
		5,972	10,312	12,022	22,723

(1) Impairment of long-lived assets

For the quarter ended September 30, 2017, represented the impairment of assets associated with the exit from flexible resealable pouch and nutrition bar product lines and operations, and, for the three quarters ended September 30, 2017, included $3.2 million paid for the early buyout of the San Bernardino equipment leases (see note 2).

For the quarter ended October 1, 2016, represented the impairment of equipment and leasehold improvements in connection with the closure of the San Bernardino facility. In addition, for the three quarters ended October 1, 2016, included the impairment of leasehold improvements at the Company’s Buena Park, California, facility on the consolidation of Company’s frozen fruit processing operations following the acquisition of Sunrise in October 2015.

(2) Employee termination costs

For the quarter and three quarters ended September 30, 2017, represented severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan (see note 2), including employees affected by the exit from flexible resealable pouch and nutrition bar product lines and operations.

For the quarter and three quarters ended October 1, 2016, primarily represented severance benefits for employees affected by the consolidation of the Company’s frozen fruit processing operations.

(3) Product withdrawal and recall costs

For the three quarters ended September 30, 2017, represented product withdrawal and recall costs that were not eligible for reimbursement under the Company’s insurance policies.

For the quarter and three quarters ended October 1, 2016, the Company recognized estimated costs of $1.1 million related to the voluntary withdrawal of a consumer-packaged product due to a quality-related issue, and the $0.6 million for insurance deductibles related to the sunflower recall (see note 5).

(4) Increase (decrease) in fair value of contingent consideration

For all periods presented, reflected the accretion of contingent consideration obligations to reflect the time value of money. In addition, for the three quarters ended October 1, 2016, included a gain of $1.7 million on the settlement of the contingent consideration obligation related to the acquisition of Niagara Natural in August 2015.

(5) Legal settlement

In the second quarter of 2016, the Company recorded a charge of $9.0 million related to the settlement of a product recall dispute with a customer involving certain flexible resealable pouch products manufactured by the Company in 2013. The settlement amount included up to $4.0 million in rebates payable to the customer over a four-year period. In connection with the exit from the flexible resealable pouch product lines and operations, the Company agreed to an upfront cash settlement of the remaining rebate obligation, resulting in a recovery of $1.0 million recognized in the third quarter of 2017.