Discontinued Operations

3 Months Ended

Apr. 03, 2021

Discontinued Operations and Disposal Groups [Abstract]

3. Discontinued Operations

Tradin Organic

On December 30, 2020, the Company completed the divestiture of its organic ingredient sourcing and production business, Tradin Organic, by selling all of the Company's interests and rights in The Organic Corporation B.V. and Tradin Organics USA LLC to Amsterdam Commodities N.V. (the "Purchaser") for cash consideration of $373.7 million (€305.1 million), net of cash acquired and debt assumed by the Purchaser and subject to certain post-closing adjustments. The global operations of Tradin Organic included its organic and non-GMO ingredient sourcing operations centered in Amsterdam, The Netherlands, and Scott's Valley, California, together with its consumer-packaged premium juice co-manufacturing business, and its cocoa, sunflower, sesame, and avocado ingredient processing facilities located in the Netherlands, Bulgaria, and Ethiopia. Prior to its divestiture, Tradin Organic comprised the Company's former Global Ingredients operating segment.

The following table reconciles the major components of the results of discontinued operations to the amount reported in the consolidated statement of operations for the quarter ended March 28, 2020:

	$
Revenues	128,352
Cost of goods sold	111,805
Selling, general and administrative expenses⁽¹⁾	7,273
Intangible asset amortization	450
Other income, net	(1,853	)
Foreign exchange loss	124
Interest expense⁽²⁾	615
Earnings before gain of sale	9,938
Earnings from discontinued operations before income taxes	9,938
Provision for income taxes	2,627
Loss attributable to non-controlling interests	(14	)
Earnings from discontinued operations	7,325

(1) Selling, general and administrative expenses exclude management fees charged by SunOpta Corporate Services and include stock-based compensation expense attributable to employees of Tradin Organic.

(2) Interest expense reflects interest on debt directly attributable to Tradin Organic including borrowings by Tradin Organic under the Dutch subfacility of the Company's former Global Credit Facility.

For the quarter ended April 3, 2021, the Company paid $13.4 million to settle accrued transaction costs related to the Tradin Organic divestiture and paid $0.2 million to settle the final contingent consideration obligation related to a prior acquisition of a premium juice business included in the disposed operations of Tradin Organic. These payments were recorded as cash used in investing and financing activities of discontinued operations, respectively, on the consolidated statement of cash flows for the quarter ended April 3, 2021.