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Derivative Financial Instruments and Fair Value Measurements | 9 Months Ended
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Sep. 28, 2019
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] |
Derivative Financial Instruments and Fair Value Measurements [Text Block] | 6. Derivative Financial Instruments and Fair Value Measurements The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of September 28, 2019 and December 29, 2018:
|  |  | September 28, 2019 |
|  |  | Fair value |  |  |  |  |  |  |  |  |  |
|  |  | asset (liability) |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  |  | $ |  |  | $ |  |  | $ |  |  | $ |
Commodity futures contracts(1) |  |  |  |  |  |  |  |  |  |  |  |
| Unrealized short-term derivative liability |  | (703 | ) |  | (703 | ) |  | — |  |  | — |
Forward foreign currency contracts(2) |  |  |  |  |  |  |  |  |  |  |  |
| Not designated as hedging instruments |  | 257 |  |  | — |  |  | 257 |  |  | — |
Contingent consideration(3) |  | (4,286 | ) |  | — |  |  | — |  |  | (4,286 | )
|  |  | December 29, 2018 |
|  |  | Fair value |  |  |  |  |  |  |  |  |  |
|  |  | asset (liability) |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  |  | $ |  |  | $ |  |  | $ |  |  | $ |
Commodity futures and forward contracts(1) |  |  |  |  |  |  |  |  |  |  |  |
| Unrealized short-term derivative asset |  | 620 |  |  | — |  |  | 620 |  |  | — |
| Unrealized long-term derivative asset |  | 7 |  |  | — |  |  | 7 |  |  | — |
| Unrealized short-term derivative liability |  | (581 | ) |  | (94 | ) |  | (487 | ) |  | — |
| Unrealized long-term derivative liability |  | (17 | ) |  | — |  |  | (17 | ) |  | — |
Forward foreign currency contracts(2) |  |  |  |  |  |  |  |  |  |  |  |
| Not designated as hedging instruments |  | 583 |  |  | — |  |  | 583 |  |  | — |
Contingent consideration(3) |  | (4,286 | ) |  | — |  |  | — |  |  | (4,286 | )
Inventories carried at market(4) |  | 3,239 |  |  | — |  |  | 3,239 |  |  | — |
(1) Commodity futures and forward contracts As at September 28, 2019, outstanding contracts comprise exchange-traded commodity futures for cocoa and coffee. As at December 29, 2018, outstanding contracts also included exchange-traded commodity futures and forward commodity purchase and sale contracts associated with the Company's sold soy and corn business. Exchange-traded futures are fair valued based on unadjusted quotes for identical assets priced in active markets and are classified as level 1. Fair value for forward commodity purchase and sale contracts was estimated based on exchange-quoted prices adjusted for differences in local markets and were classified as level 2. Exchange-traded commodity futures for cocoa and coffee are used as part of the Company's risk management strategy and represent economic hedges to limit risk related to fluctuations in the price of these commodities. These contracts are not designated as hedges for accounting purposes. Gains and losses on changes in fair value of these contracts are included in cost of goods sold on the consolidated statement of operations. For the quarter ended September 28, 2019, the Company recognized a loss of $0.9 million (September 29, 2018 - loss of $1.6 million), and for the three quarters ended September 28, 2019, the Company recognized a loss of $0.6 million (September 29, 2018 - loss of $0.8 million), related to changes in the fair value of these contracts. In addition, for the quarter and three quarters ended September 29, 2018, the Company recognized losses of $0.5 million and $0.0 million, respectively, related to changes in the fair value of soy and corn futures and forward contracts. On the consolidated balance sheets, unrealized gains on short-term and long-term contracts are included in other current assets and other assets, respectively, and unrealized losses on short-term and long-term contracts are included in other current liabilities and long-term liabilities, respectively. As at September 28, 2019, the Company had net open futures contracts to sell 4,870 metric tons ("MT") of cocoa (December 29, 2018 - 6,730 MT sold) and to purchase 221 MT (December 29, 2018 - 85 MT purchased) of coffee. (2) Foreign forward currency contracts As part of its risk management strategy, the Company enters into forward foreign exchange contracts to reduce its exposure to fluctuations in foreign currency exchange rates. For any open forward foreign exchange contracts at period end, the contract rate is compared to the forward rate, and a gain or loss is recorded. These contracts are included in level 2 of the fair value hierarchy, as the inputs used in making the fair value determination are derived from and are corroborated by observable market data. These contracts typically represent economic hedges that are not designated as hedging instruments; however, certain of these contracts may be designated as cash flow hedges for accounting purposes. As at September 28, 2019, the Company had open forward foreign exchange contracts to sell euros to buy U.S. dollars with a notional value of €10.6 million ($12.0 million), to sell British pounds to buy euros with a notional value of £0.4 million (€0.5 million), to sell Swiss francs to buy U.S. dollars with a notional value of CHF 3.0 million ($3.0 million), and to sell U.S. dollars to buy Mexican pesos with a notional value of $0.6 million (M$12.6 million). As these contracts were not designated as hedging instruments, gains and losses on changes in the fair value of the derivative instruments are included in foreign exchange loss or gain on the consolidated statement of operations. For the quarter ended September 28, 2019, the Company recognized a gain of $0.1 million (September 29, 2018 - gain of $0.2 million), and for the three quarters ended September 28, 2019, the Company recognized a loss of $0.3 million (September 29, 2018 - gain of $1.6 million), related to changes in the fair value of these contracts. Unrealized gains and losses on these contracts are included in accounts receivable and accounts payable, respectively, on the consolidated balance sheets. Prior to September 29, 2018, the Company had designated open forward exchange contracts to sell U.S. dollars to buy Mexican pesos as hedging instruments. As a result, effective portion of the gains and losses on changes in the fair value of those contracts was included in other comprehensive earnings and reclassified to cost of goods sold in the same period the hedged transaction affected earnings. For the three quarters ended September 29, 2018 the Company recognized a net gain of $0.5 million in other comprehensive earnings related to changes in the fair value of open contract, and reclassified from other comprehensive earnings to cost of goods sold realized losses on closed contracts of $0.0 million for the quarter ended September 29, 2018 and realized gains of $0.1 million for the three quarters ended September 29, 2018. (3) Contingent consideration As at September 28, 2019, the balance represents the remaining contingent consideration obligation under an earn-out arrangement with the former unitholders of Citrusource, LLC ("Citrusource"), under the terms of the Unit Purchase Agreement by which the Company acquired Citrusource in March 2015. The settlement of this obligation is pending the outcome of a dispute between the parties related to the Unit Purchase Agreement. The table below presents a reconciliation of the obligation for the quarters and three quarters ended September 28, 2019 and September 29, 2018. The balance of the obligation is included in the current portion of long-term liabilities on the consolidated balance sheets.
|  |  | Quarter ended |  |  | Three quarters ended |
|  |  | September 28, 2019 |  |  | September 29, 2018 |  |  | September 28, 2019 |  |  | September 29, 2018 |
|  |  | $ |  |  | $ |  |  | $ |  |  | $ |
Balance, beginning of period |  | (4,286 | ) |  | (4,548 | ) |  | (4,286 | ) |  | (11,320 | )
| Fair value adjustments(1) |  | — |  |  | (25 | ) |  | — |  |  | 2,348 |
| Payments(2) |  | — |  |  | — |  |  | — |  |  | 4,399 |
Balance, end of period |  | (4,286 | ) |  | (4,573 | ) |  | (4,286 | ) |  | (4,573 | )
(1) For the three quarters ended September 29, 2018, amount included an adjustment of $2.5 million to reduce the fourth and final contingent consideration obligation payable in 2019 based on the results of Citrusource in fiscal 2018. (2) For the three quarters ended September 29, 2018, amount reflected the third installment payment to the former unitholders of Citrusource. (4) Inventories carried at market As at December 29, 2018, inventories carried at market represented inventories of commodity soy and corn associated with the Company's sold soy and corn business. The fair value of these inventories was determined using quoted market prices from the Chicago Board of Trade, as adjusted for differences in local markets, and broker or dealer quotes, and classified as level 2. Gains and losses on these inventories were included in cost of goods sold on the consolidated statements of operations. Inventories carried at market were included in inventories on the consolidated balance sheet as at December 29, 2018.

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- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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