Discontinued operations

9 Months Ended

Sep. 29, 2012

Discontinued Operations And Disposal Groups [Abstract]

Disposal Groups Including Discontinued Operations Disclosure Text Block

3. Divestitures

Purity Life Natural Health Products

On June 5, 2012, the Company completed the sale of Purity, its Canadian natural health products distribution business, for consideration of $13,443(Cdn $14,000) in cash at closing, plus up to approximately $672 (Cdn $700)if Purity achieves certain earnings targets during the one-year period following the closing date. The contingent consideration will not be recognized by the Company until realized. The divestiture of Purity is consistent with the Company's strategy to focus on its core natural and organic foods sourcing and processing business. Purity was formerly part of the Company's International Foods Group operating segment.

The Company recognized the following gain on sale in discontinued operations:

Cash consideration	$	13,443
Transaction and related costs		(1,254)
Net proceeds		12,189
Net assets sold		12,939
Accumulated currency translation adjustment related to net assets sold		(1,359)
Pre-tax gain on sale		609
Recovery of income taxes(1)		67
Gain on sale of discontinued operations, net of income taxes	$	676

(1)       The divestiture resulted in a pre-tax accounting loss on sale of $750(before giving effect to the accumulated currency translation adjustment). The Company recognized a recovery of income taxes for the associated loss for Canadian tax purposes.

The operating results of Purity for the current and comparative periods are included within earnings (loss) from discontinued operations, net of income taxes, as follows:

		Quarter ended		Three quarters ended
		September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
		$	$	$	$
Revenues		-	15,409	26,914	46,013
Earnings (loss) before income taxes		(20)	(64)	1,034	(1,378)
Recovery of (provision for) income taxes		5	14	(300)	309
Earnings (loss) from discontinued operations,
	net of income taxes	(15)	(50)	734	(1,069)

Colorado Sun Oil Processing LLC

Colorado Sun Oil Processing LLC (“CSOP”) was organized in 2008 under the terms of a joint venture agreement with Colorado Mills, LLC (“Colorado Mills”) to construct and operate a vegetable oil refinery adjacent to Colorado Mills' sunflower crush plant. On August 12, 2011, the U.S. Bankruptcy Court, District of Colorado, accepted anasset purchase agreement submitted by Colorado Mills for CSOP and rejected anasset purchase agreement submitted by the Company. Based on the bankruptcy court ruling, the Company disposed of its interest in the CSOP joint venture, which was previously consolidated as a variable interest entityas part of the Grains and Foods Group, and recognized a gain on sale of discontinued operations of $71 in the quarter ended October 1, 2011. In addition, the operating results of CSOP for the current and comparative periods, which include legal fees and interest costs incurred in connection with arbitration proceedings related to the joint venture agreement (see note 12), are included within earnings (loss) from discontinued operations, net of income taxes, as follows:

		Quarter ended		Three quarters ended
		September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
		$	$	$	$
Revenues		-	204	-	538
Earnings (loss) before income taxes		208	(764)	(356)	(1,974)
Recovery of (provision for) income taxes		(81)	283	139	732
Loss allocated to non-controlling interests		-	98	-	254
Earnings (loss) from discontinued operations,
	net of income taxes	127	(383)	(217)	(988)