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Income Taxes | 12 Months Ended
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Jan. 02, 2021
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 19. Income Taxes The recovery of income taxes differs from the amount that would have resulted from applying the combined Canadian federal and provincial statutory income tax rate to loss from continuing operations before income taxes due to the following:
|  |  | January 2, 2021 |  |  |  | December 28, 2019 |  |  |  | December 29, 2018 |
|  |  | $ |  |  |  | $ |  |  |  | $ |
Loss from continuing operations |  |  | (50,042 | ) |  |  | (16,181 | ) |  |  | (141,036 | )
Canadian statutory rate |  |  | 26.5 | % |  |  | 26.5 | % |  |  | 26.5 | %
Income tax recovery at statutory rate |  |  | (13,261 | ) |  |  | (4,288 | ) |  |  | (37,375 | )
Stock-based compensation |  |  | 3,169 |  |  |  | 1,975 |  |  |  | 2,019 |
Disallowed executive compensation |  |  | 2,801 |  |  |  | — |  |  |  | — |
CARES Act |  |  | 2,472 |  |  |  | — |  |  |  | — |
Change in valuation allowance |  |  | 560 |  |  |  | (113 | ) |  |  | (4,082 | )
Change in enacted tax rates |  |  | 250 |  |  |  | (549 | ) |  |  | 1,976 |
Foreign tax rate differential |  |  | (105 | ) |  |  | 126 |  |  |  | 2,576 |
Goodwill impairment loss |  |  | — |  |  |  | — |  |  |  | 22,239 |
Other |  |  | 1,374 |  |  |  | (252 | ) |  |  | (919 | )
Recovery of income taxes |  |  | (2,740 | ) |  |  | (3,101 | ) |  |  | (13,566 | )
The components of earnings (loss) from continuing operations before income taxes are shown below:
|  | January 2, 2021 |  |  | December 28, 2019 |  |  | December 29, 2018 |
|  | $ |  |  | $ |  |  | $ |
Canada |  | (14,700 | ) |  | (11,295 | ) |  | (13,408 | )
U.S. |  | (34,521 | ) |  | (5,548 | ) |  | (126,042 | )
Other |  | (821 | ) |  | 662 |  |  | (1,586 | )
Loss from continuing operations before income taxes |  | (50,042 | ) |  | (16,181 | ) |  | (141,036 | )
The components of the provision for (recovery of) income taxes are shown below:
|  | January 2, 2021 |  |  | December 28, 2019 |  |  | December 29, 2018 |
|  | $ |  |  | $ |  |  | $ |
Current income tax provision (recovery): |  |  |  |  |  |  |  |  |
Canada |  | (154 | ) |  | (1,023 | ) |  | (1,334 | )
U.S. |  | (14,148 | ) |  | (3,424 | ) |  | (5,303 | )
Other |  | 589 |  |  | 532 |  |  | 321 |
|  | (13,713 | ) |  | (3,915 | ) |  | (6,316 | )
Deferred income tax provision (recovery): |  |  |  |  |  |  |  |  |
Canada |  | (291 | ) |  | 33 |  |  | 547 |
U.S. |  | 10,442 |  |  | 731 |  |  | (7,880 | )
Other |  | 822 |  |  | 50 |  |  | 83 |
|  | 10,973 |  |  | 814 |  |  | (7,250 | )
Recovery of income taxes |  | (2,740 | ) |  | (3,101 | ) |  | (13,566 | )
Deferred income taxes of the Company are comprised of the following:
|  | January 2, 2021 |  |  | December 28, 2019 |
|  | $ |  |  | $ |
Differences in property, plant and equipment and intangible assets |  | (55,105 | ) |  | (54,541 | )
Capital and non-capital losses |  | 14,388 |  |  | 26,540 |
Interest expense limitation (163j) |  | 11,069 |  |  | 19,118 |
Tax benefit of scientific research expenditures |  | 2,699 |  |  | 1,506 |
Inventory basis differences |  | 1,303 |  |  | 2,248 |
Other accrued reserves |  | 4,522 |  |  | 2,308 |
|  | (21,124 | ) |  | (2,821 | )
Less: valuation allowance |  | 4,284 |  |  | 6,219 |
Deferred income tax liability |  | (25,408 | ) |  | (9,040 | )
T he components of the deferred income tax liability are shown below:
|  | January 2, 2021 |  |  | December 28, 2019 |
|  | $ |  |  | $ |
Canada |  | (26 | ) |  | (223 | )
U.S. |  | (25,150 | ) |  | (8,446 | )
Other |  | (232 | ) |  | (371 | )
Deferred income tax liability |  | (25,408 | ) |  | (9,040 | )
The components of the deferred income tax valuation allowance are as follows:
|  | January 2, 2021 |  |  | December 28, 2019 |
|  | $ |  |  | $ |
Balance, beginning of year |  | 6,219 |  |  | 5,445 |
Increase (decrease) in valuation allowance |  | (1,935 | ) |  | 774 |
Balance, end of year |  | 4,284 |  |  | 6,219 |
As at January 2, 2021, the Company had approximately $1.5 million (December 28, 2019 - $0.6 million) in U.S. federal scientific research investment tax credits and $0.9 million (December 28, 2019 - $0.9 million) in U.S. state research and development tax credits, which will expire in varying amounts up to 2029. As at January 2, 2021, the Company had U.S. federal non-capital loss carry-forwards of approximately $37.1 million (December 28, 2019 - $78.0 million). In addition, the Company had state loss carry-forwards of approximately $8.7 million as at January 2, 2021 (December 28, 2019 - $14.4 million). These amounts are available to reduce future federal and state income taxes. As at January 2, 2021, the Company had Canadian capital losses of approximately $27.9 million (December 28, 2019 - $28.9 million) for which a full valuation allowance exists. These amounts are available to reduce future capital gains and do not expire. The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determinations, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Based on this evaluation, as at January 2, 2021, a valuation allowance of $4.3 million (December 28, 2019 - $6.2 million) had been recorded against certain assets to reduce the net benefit recorded in the consolidated financial statements. As the undistributed earnings of the Company's non-Canadian affiliates and associated companies are considered to be indefinitely reinvested, no provision for deferred taxes has been provided thereon. The Company believes it has adequately examined its tax positions taken or expected to be taken in a tax return; however, amounts asserted by taxing authorities could differ from the Company's positions. Accordingly, additional provisions on federal, provincial, state and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. Consistent with its historical financial reporting, the Company has classified interest and penalties related to income tax liabilities, when applicable, as part of interest expense in its consolidated statements of operations, and with the related liability on the consolidated balance sheets. The number of years with open tax audits varies depending on the tax jurisdiction. The Company's major taxing jurisdictions are the U.S. (including multiple states) and Canada (Ontario). The Company's 2017 through 2019 tax years (and any tax year for which available non-capital loss carry-forwards were generated up to the amount of non-capital loss carry-forward) remain subject to examination by the Internal Revenue Service for U.S. federal tax purposes, and tax years 2013 through 2019 remain subject to examination by the appropriate governmental agencies for Canadian federal tax purposes. There are other ongoing audits in various other jurisdictions that are not considered material to the Company's consolidated financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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