Other Expense (Income), Net

9 Months Ended

Sep. 29, 2018

Other Income And Expenses [Abstract]

Other Income And Other Expense Disclosure [Text Block]

9. Other Expense (Income), Net

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

		Quarter ended		Three quarters ended
		September 29, 2018	September 30, 2017	September 29, 2018	September 30, 2017
		$	$	$	$
Impairment of long-lived assets and facility closure costs⁽¹⁾		-	4,467	1,767	8,190
Product withdrawal and recall costs⁽²⁾		1,010	134	1,455	413
Employee termination costs⁽³⁾		43	2,052	397	4,227
Increase (decrease) in fair value of contingent consideration
	(see note 4(4))	25	83	(2,348)	287
Legal settlement⁽⁴⁾		-	(1,024)	-	(1,024)
Other		58	260	46	(71)
		1,136	5,972	1,317	12,022

(1) Impairment of long-lived assets and facility closure costs

For the three quarters ended September 29, 2018, included the remaining lease obligation related to the vacated nutrition bar processing facility, and an additional impairment loss and closure costs related to the disposal of the Wahpeton roasting facility.

For the quarter ended September 30, 2017, represented the impairment of long-lived assets associated with the exit from flexible resealable pouch and nutrition bar product lines and operations. For the three quarters ended September 30, 2017, represented the loss on the disposal of the San Bernardino assets, including the cost of the early buyout of the equipment leases.

(2) Product withdrawal and recall costs

For the quarters and three quarters ended September 29, 2018 and September 30, 2017, represented product withdrawal and recall costs that were not eligible for reimbursement under the Company’s insurance policies or exceeded the limits of those policies, including certain costs related to the voluntary recall of certain roasted sunflower kernel products initiated by the Company during the second quarter of 2016.

(3) Employee termination costs

For the quarters and three quarters ended September 29, 2018 and September 30, 2017, represented severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan.

(4) 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 Company’s exit from its flexible resealable pouch product lines and operations, the Company and the customer 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.