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Commitments and Contingencies | 12 Months Ended
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Jan. 01, 2022
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies [Text Block] | 23. Commitments and Contingencies Legal Proceedings Various current and potential claims and litigation arising in the ordinary course of business are pending against the Company. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable that may be incurred in connection with any such currently pending matter. In the Company's opinion, the eventual resolution of such matters, either individually or in the aggregate, is not expected to have a material impact on the Company's financial position, results of operations, or cash flows. However, litigation is inherently unpredictable and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on the Company's financial position, results of operations, and cash flows for the reporting period in which any such resolution or disposition occurs. Arbitration Proceedings On January 31, 2022, Acomo submitted a Request for Summary Arbitral Proceedings to the Netherlands Arbitration Institute, which was later amended on February 16, 2022, asserting alleged claims against the Company and its subsidiaries, Coöperatie SunOpta U.A. and SunOpta Holdings LLC, relating to a dispute regarding the allocation of the purchase price Acomo paid to acquire the shares of The Organic Corporation B.V. and the membership interests of Tradin Organics USA LLC in connection with the closing of the transactions contemplated by the Master Purchase Agreement entered into by Acomo, the Company and the aforementioned subsidiaries on November 25, 2020. Acomo's claims include requests for the Company to: (i) act in accordance with (a) the purchase price allocation allegedly established with third-party expert advice and (b) the proposed tax allocation; (ii) correct or revise the Company's 2020 U.S. federal income tax return in accordance with the purchase price allocation allegedly established with third-party expert advice and the proposed tax allocation; and (iii) provide information regarding the Company's 2020 U.S. federal income tax return. The Company disagrees with Acomo's position regarding the purchase price allocation and the proposed tax allocation and intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of these claims, nor can it estimate the amount of loss, or range of loss, if any, that may result from these claims. Environmental Laws The Company believes that, with respect to both its operations and real property, it is in material compliance with current environmental laws. Based on known existing conditions and the Company's experience in complying with emerging environmental issues, the Company is of the view that future costs relating to environmental compliance will not have a material adverse effect on its consolidated financial position, but there can be no assurance that unforeseen changes in the laws or enforcement policies of relevant governmental bodies, the discovery of changed conditions on the Company's real property or in its operations, or changes in the use of such properties and any related site restoration requirements, will not result in the incurrence of significant costs. Finance Lease Commitments On August 4, 2021, the Company entered into a finance lease agreement providing for up to $14 million of financing for equipment and leasehold improvements to be installed in connection with the build-out of the Company's new executive office and innovation center located in Eden Prairie, Minnesota. The facility is being occupied under a 12-year building operating lease, with two five-year extension options. The Company recognizes costs incurred related to the build-out as construction in process in property, plant and equipment, with a finance lease liability recognized in long-term debt for the amount funded to-date under the build-out lease, which amounted to $8.7 million as at January 1, 2022. The build-out lease has an implicit rate of interest of 6.82% and a term of 48 months following completion of construction. The Company may purchase the build-out assets for a nominal amount at the end of the lease term. On September 7, 2021, the Company entered into two finance lease agreements providing for up to $50 million of total financing for equipment and leasehold improvements to be installed in connection with the build-out of the Company's new plant-based beverage facility under construction in Midlothian, Texas. Once the construction of the building is completed by the landlord and is made available for use by the Company, which is expected to occur in 2022, the facility will be occupied under a 15-year operating lease, with three five-year extension options. The build-out leases do not include the manufacturing equipment for the facility (described below under "Commitments for Plant Acquisition"). The Company recognizes costs incurred related to the build-out as construction in process in property, plant and equipment, with a finance lease liability recognized in long-term debt for the amount funded to-date under the build-out leases, which amounted to $4.9 million as at January 1, 2022. The build-out leases have an implicit rate of interest of 6.45% and a term of 48 months following completion of construction. The Company may purchase the build-out assets for a nominal amount at the end of the lease term. As at January 1, 2022, the Company had additional commitments under various finance leases that provide for up to approximately $23 million of financing for expansion projects within the Company's plant-based operations, which are expected to become operational during 2022. As these finance leases had not commenced as at January 1, 2022, no amount of underlying right-of-use assets, or lease liabilities, were recognized on the consolidated balance sheet as of that date. Commitments for Plant Acquisition As at January 1, 2022, the Company had approximately $52 million of contractual commitments related to the purchase of manufacturing equipment for its Midlothian, Texas, facility, of which approximately $14 million was paid or payable as at January 1, 2022, with the balance of $38 million expected to be incurred during 2022. These commitments are being principally financed through borrowings under the Term Loan Facility of the Company's Asset-Based Credit Facilities. Letters of Credit As at January 1, 2022, the Company had outstanding letters of credit totaling $7.3 million.

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