Segmented Information

9 Months Ended

Sep. 29, 2018

Segment Reporting Disclosure [Text Block]

13. Segmented Information

The composition of the Company’s reportable segments is as follows:

Global Ingredients aggregates the Company’s North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused on the procurement and sale of organic commodities and value-added ingredients, and specialty and organic grains and seeds.

Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes IQF fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings and included flexible resealable pouch and nutrition bar product lines that were exited in 2017.

Effective the first quarter of 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. For the quarter and three quarters ended September 30, 2017, these operations generated revenues of $3.3 million and $10.2 million, respectively, and gross profit of $0.4 million and $1.4 million, respectively. The segment information presented below for the quarter and three quarters ended September 30, 2017 has been restated to reflect this realignment.

In addition, Corporate Services provides a variety of management, financial, information technology, treasury and administration services to each of the Company’s operating segments from the Company’s headquarters in Mississauga, Ontario and administrative office in Edina, Minnesota.

When reviewing the operating results of the Company’s operating segments, management uses segment revenues from external customers and segment operating income/loss to assess performance and allocate resources. Segment operating income/loss excludes other income/expense items. In addition, interest expense and income taxes are not allocated to the operating segments.

	Quarter ended
	September 29, 2018
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	136,754	171,617	308,371
Segment operating income	5,304	3,319	8,623
Corporate Services			(4,101)
Other expense, net (see note 9)			(1,136)
Interest expense, net			(8,792)
Loss before income taxes			(5,406)

	Quarter ended
	September 30, 2017
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	137,254	183,459	320,713
Segment operating income	4,846	4,947	9,793
Corporate Services			(4,832)
Other expense, net (see note 9)			(5,972)
Interest expense, net			(8,371)
Loss before income taxes			(9,382)

	Three quarters ended
	September 29, 2018
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	419,770	520,561	940,331
Segment operating income	11,371	11,397	22,768
Corporate Services			(11,942)
Other expense, net (see note 9)			(1,317)
Interest expense, net			(25,486)
Loss before income taxes			(15,977)

	Three quarters ended
	September 30, 2017
	Global	Consumer
	Ingredients	Products	Consolidated
	$	$	$
Segment revenues from external customers	410,022	577,176	987,198
Segment operating income	16,960	16,124	33,084
Corporate Services			(28,460)
Other expense, net (see note 9)			(12,022)
Interest expense, net			(23,820)
Loss before income taxes			(31,218)