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Commitments and Contingencies | 6 Months Ended
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Jul. 01, 2023
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies [Text Block] | 12. 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. Product Recall On June 21, 2023, the Company announced its subsidiary, Sunrise Growers Inc., had issued a voluntary recall of specific frozen fruit products linked to pineapple provided by a third-party supplier due to possible contamination by Listeria monocytogenes. For the quarter ended July 1, 2023, the Company recognized a reduction to revenues of $0.2 million for customer returns of the recalled products and a $3.0 million reserve for inventory on-hand, which was charged to cost of goods sold. The Company is seeking to recover a portion of the recall-related costs through its insurance coverage, and such recoveries are recorded in the period in which the recoveries are determined to be probable of realization. For the quarter ended July 1, 2023, the Company recognized estimated insurance recoveries of $0.7 million, net of deductibles, in other income, with the corresponding amount included in accounts receivable on the consolidated balance sheet as at July 1, 2023. The Company expects to incur additional costs related to the recall during the second half of 2023, including product warehousing, transportation and destruction costs, as well as administrative costs. In addition, the Company may be subject to additional claims for damages from customers and end-consumers related to the recall. The Company expects that these additional costs and potential claims will be generally covered under its insurance policies; however, as of the date of this filing, the Company cannot be certain of its ability to recover recall-related costs through its insurance coverage or the extent of any such recovery. The Company is currently unable to assess the impact that this recall may have on its future sales of frozen fruit products or on its relationships with its frozen fruit customers, which may have an adverse impact on the fair values of the property, plant and equipment and finite-lived customer relationship intangible assets associated with the frozen fruit business, which had carrying values of $29.6 million and $108.0 million, respectively, as at July 1, 2023. However, based on an assessment of the information available up to the filing date of this report, the Company determined that the carrying values of these long-lived assets were recoverable as at July 1, 2023, and, therefore, testing for impairment was not required.

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