Value Creation Plan

9 Months Ended

Sep. 26, 2020

Restructuring and Related Activities [Abstract]

4. Value Creation Plan

The Value Creation Plan is a broad-based initiative focused on increasing shareholder value through structural investments in people and assets, together with restructuring activities to streamline operations. In the first three quarters of 2020, measures taken under the Value Creation Plan included the consolidation of the Company's corporate office functions, the closure of an organic ingredient warehousing facility located in China, and other business development activities. In the first three quarters of 2019, actions taken under the Value Creation Plan related to the sale of the soy and corn business, a workforce reduction affecting approximately 30 employees, and transitions of the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"). The following table summarizes costs incurred by type under the Value Creation Plan for the three quarters ended September 26, 2020 and September 28, 2019:

			Employee
	Asset		recruitment,
	impairments		retention and
	and facility		termination		Professional
	closure costs		costs		fees		Total
	$		$		$		$
September 26, 2020
Balance payable, December 28, 2019⁽¹⁾	201		4,026		—		4,227
Costs incurred and charged to expense	365		1,524		1,574		3,463
Cash payments, net	(438	)	(5,690	)	(1,574	)	(7,702	)
Non-cash adjustments	(78	)	894		—		816
Balance payable, September 26, 2020⁽¹⁾	50		754		—		804

September 28, 2019
Balance payable, December 29, 2018	477		436		—		913
Costs incurred and charged to expense	308		7,098		964		8,370
Cash payments, net	(533	)	(6,220	)	(901	)	(7,654	)
Non-cash adjustments	—		2,872		—		2,872
Balance payable, September 28, 2019	252		4,186		63		4,501

(1) Balance payable was included in accounts payable and accrued liabilities on the consolidated balance sheet.

The following table summarizes costs incurred since the inception of the Value Creation Plan in 2016 to September 26, 2020:

			Employee
	Asset		recruitment,		Professional
	impairments		retention and		fees and
	and facility		termination		temporary
	closure costs		costs		labor costs		Total
	$		$		$		$
Costs incurred and charged to expense	35,325		24,493		23,906		83,724
Cash payments, net	(10,700	)	(29,187	)	(23,906	)	(63,793	)
Non-cash adjustments	(24,575	)	5,448		—		(19,127	)
Balance payable, September 26, 2020	50		754		—		804

For the quarters and three quarters ended September 26, 2020 and September 28, 2019, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:

	Quarter ended		Three quarters ended
	September 26, 2020	September 28, 2019	September 26, 2020	September 28, 2019
	$	$	$	$
Selling, general and administrative expenses⁽¹⁾	935	1,615	2,434	2,772
Other expense⁽²⁾	54	3,222	1,029	5,598
	989	4,837	3,463	8,370

(1) Professional fees and employee retention, recruitment and relocation costs recorded in selling general and administrative expenses were allocated to Corporate Services.

(2) For the quarter ended September 26, 2020, costs recorded in other expense were allocated as follows: Global Ingredients - $nil (September 28, 2019 - $nil); Plant-Based Foods and Beverages - $nil (September 28, 2019 - $nil); Fruit-Based Foods and Beverages - $(0.0) million (September 28, 2019 - $0.2 million); and Corporate Services - $0.1 million (September 28, 2019 - $3.0 million). For the three quarters ended September 26, 2020, costs recorded in other expense were allocated as follows: Global Ingredients - $0.8 million (September 28, 2019 - $0.0 million); Plant-Based Foods and Beverages - $0.0 million (September 28, 2019 - $0.5 million); Fruit-Based Foods and Beverages - $0.8 million (September 28, 2019 - $1.0 million); and Corporate Services - $(0.5) million (September 28, 2019 - $4.1 million).