0001062993-18-002024.txt : 20180509 0001062993-18-002024.hdr.sgml : 20180509 20180509164342 ACCESSION NUMBER: 0001062993-18-002024 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 67 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180509 DATE AS OF CHANGE: 20180509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SunOpta Inc. CENTRAL INDEX KEY: 0000351834 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-FARM PRODUCT RAW MATERIALS [5150] IRS NUMBER: 000000000 STATE OF INCORPORATION: Z4 FISCAL YEAR END: 0101 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34198 FILM NUMBER: 18818966 BUSINESS ADDRESS: STREET 1: 2233 ARGENTIA ROAD STREET 2: SUITE 401 CITY: MISSISSAUGA STATE: A6 ZIP: L5N 2X7 BUSINESS PHONE: (905) 455-1990 MAIL ADDRESS: STREET 1: 2233 ARGENTIA ROAD STREET 2: SUITE 401 CITY: MISSISSAUGA STATE: A6 ZIP: L5N 2X7 FORMER COMPANY: FORMER CONFORMED NAME: SUNOPTA INC DATE OF NAME CHANGE: 20031107 FORMER COMPANY: FORMER CONFORMED NAME: STAKE TECHNOLOGY LTD DATE OF NAME CHANGE: 19940901 10-Q 1 form10q.htm FORM 10-Q SunOpta Inc.: Form 10-Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from________ to ________ .

Commission file number: 001-34198

SUNOPTA INC.
(Exact name of registrant as specified in its charter)

CANADA Not Applicable
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

2233 Argentia Road  
Mississauga, Ontario L5N 2X7, Canada (905) 821-9669
(Address of principal executive offices) (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]          No[   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]          No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [X] Accelerated filer [   ]
Non-accelerated filer [   ] Smaller reporting company [   ]
(Do not check if a smaller reporting company) Emerging growth company [   ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [   ]          No [X] 

The number of the registrant’s common shares outstanding as of May 4, 2018 was 86,864,115.



SUNOPTA INC.
FORM 10-Q
For the Quarterly Period Ended March 31, 2018
 
TABLE OF CONTENTS

PART I FINANCIAL INFORMATION  
Item 1. Financial Statements (unaudited)  
  Consolidated Statements of Operations for the quarters ended March 31, 2018 and April 1, 2017 5
Consolidated Statements of Comprehensive Loss for the quarters ended March 31, 2018 and April 1, 2017 6
  Consolidated Balance Sheets as at March 31, 2018 and December 30, 2017 7
Consolidated Statements of Shareholders’ Equity as at and for the quarters ended March 31, 2018 and April 1, 2017 8
  Consolidated Statements of Cash Flows for the quarters ended March 31, 2018 and April 1, 2017 9
  Notes to Consolidated Financial Statements 10
     
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 28
Item 3 Quantitative and Qualitative Disclosures about Market Risk 42
Item 4 Controls and Procedures 42
     
PART II OTHER INFORMATION  
Item 1 Legal Proceedings 43
Item 1A Risk Factors 43
Item 6 Exhibits 43

Basis of Presentation

Except where the context otherwise requires, all references in this Quarterly Report on Form 10-Q (“Form 10-Q”) to the “Company”, “SunOpta”, “we”, “us”, “our” or similar words and phrases are to SunOpta Inc. and its subsidiaries, taken together.

In this report, all currency amounts presented are expressed in thousands of United States (“U.S.”) dollars (“$”), except per share amounts, unless otherwise stated. Other amounts may be presented in thousands of Canadian dollars (“C$”), euros (“€”), Mexican pesos (“M$”) and British pounds (“£”). As at March 31, 2018, the closing rates of exchange for the Canadian dollar, euro, Mexican peso and British pound, expressed in U.S. dollars, based on Bank of Canada exchange rates, were C$0.7756, €1.2306, M$0.0546 and £1.4042. These rates are provided solely for convenience and do not necessarily reflect the rates used in the preparation of our financial statements.

Forward-Looking Statements

This Form 10-Q contains forward-looking statements which are based on our current expectations and assumptions and involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as “anticipate”, “estimate”, “target”, “intend”, “project”, “potential”, “continue”, “believe”, “expect”, “could”, “would”, “should”, “might”, “plan”, “will”, “may”, “predict”, the negatives of such terms, and words and phrases of similar impact and include, but are not limited to references to future financial and operating results, plans, objectives, expectations and intentions; the anticipated benefits of our efforts to transform our business operations, including the Value Creation Plan; the estimated amount and timing of adjusted earnings before income taxes, depreciation and amortization (“EBITDA”) enhancements attributable to improvements initiated or implemented to date pursuant to the Value Creation Plan; the expected cost and timing for completion of, and increased capacity and cost advantages resulting from, our aseptic capacity expansion plan; anticipated portfolio optimization benefits resulting from expansion projects and/or new processing lines at our Mexican frozen fruit facility, our organic cocoa facility in Holland, our Bulgarian sunflower facility, and our Crookston, Minnesota. facility; expected productivity and cost improvements as a result of our food safety and quality and our “SunOpta 360” continuous improvement initiatives; improved revenue growth and profitability as a result of our growing pipeline of commercial opportunities, recent sales wins in key categories, and continued penetration of high-potential sales channels; sustainable business improvements resulting from our enhanced employee health and safety and advanced sales and operations planning processes and other process sustainability initiatives; our intention to exit businesses or product lines where we are not effectively positioned; and other statements that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on certain assumptions, expectations and analyses we make in light of our experience and our interpretation of current conditions, historical trends and expected future developments, as well as other factors that we believe are appropriate in the circumstances.

SUNOPTA INC. 1 March 31, 2018 10-Q


Whether actual results and developments will be consistent with and meet our expectations and predictions is subject to many risks and uncertainties. Accordingly, there are important factors that could cause our actual results to differ materially from our expectations and predictions. We believe these factors include, but are not limited to, the following:

  failure or inability to implement our value creation strategies to achieve anticipated benefits;
     
  conflicts of interest between our significant investors and our other stakeholders;
     
  disruptions to our business caused by shareholder activism;
     
  product liability suits, recalls and threatened market withdrawals that may arise or be brought against us;
     
  food safety concerns and instances of food-borne illnesses that could harm our business;
     
  litigation and regulatory enforcement concerning marketing and labeling of food products;
     
  significant food and health regulations to which we are subject;
     
  ability to obtain additional capital as required to maintain current growth rates;
     
  the potential for impairment charges in goodwill or other intangible assets;
     
  the highly competitive industry in which we operate;
     
  that our customers may choose not to buy products from us;
     
  the potential loss of one or more key customers;
     
  changes and difficulty in predicting consumer preferences for natural and organic food products;
     
  our ability to effectively manage our supply chain;
     
  volatility in the prices of raw materials and energy;
     
  the availability of organic and non-genetically modified ingredients;
     
  unfavorable growing and operating conditions due to adverse weather conditions;
     
  an interruption at one or more of our manufacturing facilities;
     
  technology failures that could disrupt our operations and negatively impact our business;
     
  the potential for data breaches and the need to comply with data privacy and protection laws and regulations;
     
  the loss of service of our key management;
     
  labor shortages or increased labor costs;
     
  technological innovation by our competitors;

SUNOPTA INC. 2 March 31, 2018 10-Q



  ability to protect our intellectual property and proprietary rights;
     
  changes in laws or regulations governing foreign trade or taxation;
     
  agricultural policies that influence our operations;
     
  substantial environmental regulation and policies to which we are subject;
     
  the enactment of climate change laws;
     
  fluctuations in exchange rates, interest rates and the prices of certain commodities;
     
  exposure to our international operations;
     
  increased vulnerability to economic downturns and adverse industry conditions due to our level of indebtedness;
     
  restrictions under the terms of our debt and equity instruments on how we may operate our business;
     
  our ability to renew our revolving asset-based credit facility (the “Global Credit Facility”) when it becomes due on February 10, 2021;
     
  ability to meet the financial covenants under the Global Credit Facility or to obtain necessary waivers from our lenders;
     
  our ability to effectively manage our growth and integrate acquired companies;
     
  our ability to achieve the estimated benefits or synergies to be realized from business acquisitions;
     
  exposure to unknown liabilities arising from business acquisitions;
     
  unexpected disruptions in our business, including disruptions resulting from business acquisitions;
     
  our ability to successfully consummate possible future divestitures of businesses;
     
  volatility of our operating results and share price;
     
  that we do not currently intend to, and are restricted in our ability to, pay any cash dividends on our common shares in the foreseeable future;
     
  dilution in the value of our common shares through the exchange of convertible preferred stock, exercise of stock options, participation in our employee stock purchase plan and issuance of additional securities; and
     
  impact of the publication of industry analyst research or reports about our business on the value of our common shares.

SUNOPTA INC. 3 March 31, 2018 10-Q


All forward-looking statements made herein are qualified by these cautionary statements, and our actual results or the developments we anticipate may not be realized. Our forward-looking statements are based on current industry, financial and economic information which we have assessed but which by its nature is dynamic and subject to rapid and possibly abrupt changes. As such, our forward-looking statements are based only on information currently available to us and speak only as of the date on which they are made. We do not undertake any obligation to publicly update our forward-looking statements, whether written or oral, after the date of this report for any reason, even if new information becomes available or other events occur in the future, except as may be required under applicable securities laws. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and our Annual Report on Form 10-K for the fiscal year ended December 30, 2017. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found under Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 30, 2017, and in our other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators.

SUNOPTA INC. 4 March 31, 2018 10-Q


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

SunOpta Inc.
Consolidated Statements of Operations
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars, except per share amounts)

          Quarter ended  
    March 31, 2018     April 1, 2017  
  $   $  
Revenues   312,652     330,031  
Cost of goods sold   278,968     291,332  
Gross profit   33,684     38,699  
Selling, general and administrative expenses   28,288     38,272  
Intangible asset amortization   2,771     2,803  
Other expense (income), net (note 9)   (402 )   5,443  
Foreign exchange loss   962     580  
Earnings (loss) before the following   2,065     (8,399 )
Interest expense, net   8,220     7,754  
Loss before income taxes   (6,155 )   (16,153 )
Recovery of income taxes   (1,693 )   (4,969 )
Net loss   (4,462 )   (11,184 )
Earnings (loss) attributable to non-controlling interests   (99 )   214  
Loss attributable to SunOpta Inc.   (4,363 )   (11,398 )
Dividends and accretion on Series A Preferred Stock   (1,967 )   (1,940 )
Loss attributable to common shareholders   (6,330 )   (13,338 )
Loss per share (note 10)            
     Basic   (0.07 )   (0.16 )
     Diluted   (0.07 )   (0.16 )

(See accompanying notes to consolidated financial statements)

SUNOPTA INC. 5 March 31, 2018 10-Q



SunOpta Inc.
Consolidated Statements of Comprehensive Loss
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)

          Quarter ended  
    March 31, 2018     April 1, 2017  
  $   $  
             
Net loss   (4,462 )   (11,184 )
             
Other comprehensive earnings, net of income taxes            
     Changes related to cash flow hedges (note 4)            
           Unrealized gains, net   573     1,242  
           Reclassification of losses to earnings   134     -  
           Net changes related to cash flow hedges   707     1,242  
     Currency translation adjustment   1,456     598  
     Other comprehensive earnings, net of income taxes   2,163     1,840  
             
Comprehensive loss   (2,299 )   (9,344 )
             
Comprehensive earnings attributable to non-controlling interests   21     518  
             
Comprehensive loss attributable to SunOpta Inc.   (2,320 )   (9,862 )

(See accompanying notes to consolidated financial statements)

SUNOPTA INC. 6 March 31, 2018 10-Q



SunOpta Inc.
Consolidated Balance Sheets
As at March 31, 2018 and December 30, 2017
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)

    March 31, 2018     December 30, 2017  
  $   $  
             
             
ASSETS            
Current assets            
     Cash and cash equivalents   2,924     3,228  
     Accounts receivable   143,420     125,152  
     Inventories (note 5)   334,481     354,978  
     Prepaid expenses and other current assets   38,379     33,213  
     Income taxes recoverable   9,078     12,006  
Total current assets   528,282     528,577  
             
Property, plant and equipment   164,518     163,624  
Goodwill   109,729     109,533  
Intangible assets   169,317     172,059  
Deferred income taxes   363     363  
Other assets   7,678     8,017  
             
Total assets   979,887     982,173  
             
LIABILITIES            
Current liabilities            
     Bank indebtedness (note 6)   236,637     234,090  
     Accounts payable and accrued liabilities   162,682     161,364  
     Customer and other deposits   3,499     4,901  
     Income taxes payable   1,854     1,351  
     Other current liabilities   628     818  
     Current portion of long-term debt (note 6)   2,190     2,228  
     Current portion of long-term liabilities   8,904     5,300  
Total current liabilities   416,394     410,052  
             
Long-term debt (note 6)   225,570     225,805  
Long-term liabilities   2,367     8,352  
Deferred income taxes   14,867     15,850  
Total liabilities   659,198     660,059  
             
Series A Preferred Stock (note 7)   80,460     80,193  
             
EQUITY            
SunOpta Inc. shareholders’ equity            
     Common shares, no par value, unlimited shares authorized, 86,840,122 shares issued (December 30, 2017 - 86,757,334)   309,575     308,899  
     Additional paid-in capital   29,650     28,006  
     Accumulated deficit   (95,367 )   (89,291 )
     Accumulated other comprehensive loss (note 8)   (5,225 )   (7,268 )
    238,633     240,346  
Non-controlling interests   1,596     1,575  
Total equity   240,229     241,921  
             
Total equity and liabilities   979,887     982,173  
             
Commitments and contingencies (note 12)            

(See accompanying notes to consolidated financial statements)

SUNOPTA INC. 7 March 31, 2018 10-Q



SunOpta Inc.
Consolidated Statements of Shareholders’ Equity
As at and for the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)

                            Accumulated              
                Additional           other com-     Non-        
                paid-in     Accumulated     prehensive     controlling        
    Common shares     capital     deficit     loss     interests     Total  
    000s   $   $   $   $   $   $  
                                           
Balance at December 30, 2017   86,757     308,899     28,006     (89,291 )   (7,268 )   1,575     241,921  
                                           
Employee stock purchase plan   23     136     -     -     -     -     136  
Stock incentive plan   60     540     (527 )   -     -     -     13  
Stock-based compensation   -     -     2,171     -     -     -     2,171  
Dividends on Series A Preferred Stock (note 7)   -     -     -     (1,700 )   -     -     (1,700 )
Accretion on Series A Preferred Stock (note 7)   -     -     -     (267 )   -     -     (267 )
Net loss   -     -     -     (4,363 )   -     (99 )   (4,462 )
Currency translation adjustment   -     -     -     -     1,336     120     1,456  
Cash flow hedges, net of income taxes of $303 (note 4)   -     -     -     -     707     -     707  
Cumulative effect of adoption of new revenue accounting standard (note 1)   -     -     -     254     -     -     254  
                                           
Balance at March 31, 2018   86,840     309,575     29,650     (95,367 )   (5,225 )   1,596     240,229  

                            Accumulated              
                Additional           other com-     Non-        
                paid-in     Retained     prehensive     controlling        
    Common shares     capital     earnings     loss     interests     Total  
    000s   $   $   $   $   $   $  
                                           
Balance at December 31, 2016   85,744     300,426     25,522     53,838     (13,104 )   2,731     369,413  
                                           
Employee stock purchase plan   15     94     -     -     -     -     94  
Stock incentive plan   248     2,061     (1,061 )   -     -     -     1,000  
Stock-based compensation   -     -     852     -     -     -     852  
Dividends on Series A Preferred Stock (note 7)   -     -     -     (1,700 )   -     -     (1,700 )
Accretion on Series A Preferred Stock (note 7)   -     -     -     (240 )   -     -     (240 )
Net loss   -     -     -     (11,398 )   -     214     (11,184 )
Currency translation adjustment   -     -     -     -     605     (7 )   598  
Cash flow hedges, net of income taxes of $533   -     -     -     -     931     311     1,242  
Acquisition of non-controlling interest   -     -     (162 )   -     (82 )   244     -  
                                           
Balance at April 1, 2017   86,007     302,581     25,151     40,500     (11,650 )   3,493     360,075  

(See accompanying notes to consolidated financial statements)

SUNOPTA INC. 8 March 31, 2018 10-Q



SunOpta Inc.
Consolidated Statements of Cash Flows
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(Expressed in thousands of U.S. dollars)

          Quarter ended  
    March 31, 2018     April 1, 2017  
  $   $  
             
CASH PROVIDED BY (USED IN)            
             
Operating activities            
Net loss   (4,462 )   (11,184 )
Items not affecting cash:            
     Depreciation and amortization   8,141     8,180  
     Amortization of debt issuance costs   608     486  
     Deferred income taxes   (1,286 )   (6,092 )
     Stock-based compensation   2,171     852  
     Unrealized loss on derivative commodity contracts (note 4)   1,521     38  
     Fair value of contingent consideration (note 9)   (2,416 )   -  
     Impairment of long-lived assets (note 3)   339     3,723  
     Other   1     143  
     Changes in non-cash working capital (note 11)   2,889     23,335  
Net cash flows from operations   7,506     19,481  
Investing activities            
Purchases of property, plant and equipment   (6,735 )   (9,024 )
Proceeds from sale of assets (note 3)   700     250  
Other   -     110  
Net cash flows from investing activities   (6,035 )   (8,664 )
Financing activities            
Increase (decrease) under line of credit facilities (note 6)   309     (7,341 )
Repayment of long-term debt (note 6)   (522 )   (527 )
Payment of cash dividends on Series A Preferred Stock   (1,700 )   (1,591 )
Proceeds from the exercise of stock options and employee share purchases   149     1,094  
Other   (40 )   (202 )
Net cash flows from financing activities   (1,804 )   (8,567 )
Foreign exchange gain on cash held in a foreign currency   29     10  
             
Increase (decrease) in cash and cash equivalents in the period   (304 )   2,260  
             
Cash and cash equivalents - beginning of the period   3,228     1,251  
             
Cash and cash equivalents - end of the period   2,924     3,511  
             
Non-cash financing activity            
Accrued cash dividends on Series A Preferred Stock (note 7)   (1,700 )   (1,700 )

(See accompanying notes to consolidated financial statements)

SUNOPTA INC. 9 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

1.

Description of Business and Significant Accounting Policies

SunOpta Inc. (the “Company” or “SunOpta”) was incorporated under the laws of Canada on November 13, 1973. The Company operates businesses focused on a healthy products portfolio that promotes sustainable well-being. The Company’s two reportable segments, Global Ingredients and Consumer Products, operate in the natural, organic and specialty food sectors and utilize an integrated business model to bring cost-effective and quality products to market.

Basis of Presentation

The interim consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended, and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, these condensed interim consolidated financial statements do not include all of the disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included and all such adjustments are of a normal, recurring nature. Operating results for the quarter ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year ending December 29, 2018 or for any other period. The interim consolidated financial statements include the accounts of the Company and its subsidiaries, and have been prepared on a basis consistent with the annual consolidated financial statements for the year ended December 30, 2017, except as described below under “Recent Accounting Pronouncements – Adoption of New Accounting Standards”. For further information, refer to the consolidated financial statements, and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017.

Fiscal Year

The fiscal year of the Company consists of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017.

Recent Accounting Pronouncements

Adoption of New Accounting Standard

As at December 31, 2017 (the first day of fiscal 2018), the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC Topic 606”), which superseded all previous revenue recognition guidance under U.S. GAAP. Under this new standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

The Company analyzed its significant customer contracts to determine the effects of ASC Topic 606. In particular, the Company assessed under the new guidance whether its contracts with customers to produce certain consumer-packaged goods would require the Company to recognize revenue over time versus at a point in time, based on whether the given product has an alternative use and whether there is an enforceable right to payment under the contract for product produced to date. Based on its assessment, the Company concluded that it does not satisfy the criteria to recognize revenue over time. Accordingly, the Company continues to recognize revenue at a point in time consistent with its previous policies and processes, which is typically when title and physical possession of the product has transferred to the customer. The Company also transacts with certain customers on a bill-and-hold basis, whereby the Company bills a customer for product to be delivered at a later date. Prior to the adoption of ASC Topic 606, the Company deferred the recognition of revenue related to these bill-and-hold arrangements, as the arrangements did not typically include a fixed delivery schedule. As this criterion is no longer a consideration under ASC Topic 606, these arrangements now qualify for revenue recognition at the point in time that the customer obtains control of the goods. With the exception of bill-and-hold arrangements, the adoption of ASC Topic 606 did not have a significant impact on the Company’s consolidated financial statements and revenue recognition practices, or its internal controls.

SUNOPTA INC. 10 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

The Company adopted ASC Topic 606 using the modified retrospective approach, which resulted in a cumulative-effect adjustment of $0.3 million to opening accumulated deficit as at December 31, 2017, related to the recognition of $4.8 million of bill-and-hold revenue deferred under previous U.S. GAAP. The change in the timing of the recognition of bill-and-hold revenue did not have a material impact on the Company’s consolidated statement of operations for the quarter ended March 31, 2018 or consolidated balance sheet as at March 31, 2018.

See note 2 for additional disclosures under ASC Topic 606.

Recently Issued Accounting Standards, Not Adopted as at March 31, 2018

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected versus incurred credit losses for most financial assets. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. The Company anticipates that upon adoption of ASU 2016-02, it will recognize significant additional right-to-use assets and corresponding lease liabilities on its balance sheet, related to existing operating leases.

2.

Revenue

The Company sources, processes and packages organic and natural food products, including organic raw commodities and value-added ingredients, specialty and organic grains and seeds, and consumer-ready beverage, frozen fruit and fruit snack products. The Company’s customers include retailers, foodservice operators, branded food companies and food manufacturers.

Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which is upon the transfer of control of the contracted goods. Except for goods sold under bill-and-hold arrangements, control is transferred when title and physical possession of the product has transferred to the customer, which is at the point in time that product is shipped from the Company’s facilities or delivered to a specified destination, depending on the terms of the contract, and the Company has a present right to payment. Under bill-and-hold arrangements—whereby the Company bills a customer for product to be delivered at a later date—control typically transfers when the product is ready for physical transfer to the customer, and the Company has a present right to payment.

A performance obligation is a promise within a contract to transfer distinct goods to the customer. A contract with a customer may involve multiple products and/or multiple delivery dates, with the transfer of each product at each delivery date being considered a distinct performance obligation, as each of the Company’s products has standalone utility to the customer. In these cases, the contract’s transaction price is allocated to each performance obligation based on relative standalone selling prices, and recognized as revenue when each individual product is transferred to the customer. Other promises in the contract—for example, the promise to provide quality assurance testing to ensure the product meets specification and is fit for its intended use—are not separable from the promise to deliver goods and are therefore not considered distinct.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. Consideration is typically determined based on a fixed unit price for the quantity of product transferred. Certain contracts may give rise to an element of variable consideration in the form of rebates or discounts. For contracts involving variable consideration, the Company estimates the transaction price based on the amount of consideration to which it expects to be entitled. These estimates are determined based on historical experience and the expected outcome of the variable consideration, and are updated as new information becomes available, including actual claims paid, which indicate an estimate is not indicative of the expected results. Changes to these estimates are recorded in the period the adjustment is identified. The Company does not typically grant customers a general right of return for goods transferred, but will generally accept returns of product for quality-related issues. The cost of satisfying this promise of quality is accounted for as an assurance-type warranty obligation rather than variable consideration. The Company’s contracts do not typically include any significant payment terms, as payment is normally due shortly after the time of transfer.

SUNOPTA INC. 11 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

Within the Company’s Global Ingredients operating segment, arrangements with customers are in the form of written sales contracts, specifying the quantity and timing of goods to be delivered. The duration of these sales contracts is typically one year or less based on crop-year cycles, and may involve multiple delivery dates over the course of the contract. The Company has elected not to disclose the value of remaining performance obligations for contracts with an original duration of one year or less. Some contracts may extend beyond one year; however, for these contracts, the Company expects to satisfy substantially all of the remaining performance obligations within the next 12 months. For contracts involving the delivery of raw commodities or organic ingredients, the Company evaluated whether it is acting as the principal (whereby revenues are reported on a gross basis) or agent (whereby revenues are reported on a net basis). The Company determined that for these contracts it is the principal, since the Company is primarily responsible for fulfilling the promise to deliver the goods to customers. That is, the Company controls access to the goods through purchase commitments with selected suppliers, and bears responsibility and potential financial risk for quality-related issues related to the delivered product. In addition, the Company has discretion in establishing prices for the product.

Within the Company’s Consumer Products operating segment, contracts are typically represented by short-term, binding purchase orders from customers, identifying the quantity and pricing for products to be transferred. Customer orders may be issued under long-term master supply arrangements. On their own, these master supply arrangements are typically not considered contracts for purposes of revenue recognition, as they do not create enforceable rights and obligations regarding the quantity, pricing or timing of goods to be transferred (for example, by imposing minimum purchase obligations on the part of the customer). Certain master supply arrangements provide for the transfer of product on a bill-and-hold basis at the specific request of the customer. Goods are produced under these bill-and-hold arrangements to meet individual customer specifications, and, therefore, are identifiable as belonging to the customer and cannot be directed to another customer.

The timing of the Company’s revenue recognition, customer billings and cash collections, does not result in significant unbilled receivables (contract assets) or customer advances (contract liabilities) on the consolidated balance sheet. Contract costs, such as sales commissions, are generally expensed as incurred given the short-term nature of the associated contracts.

The following table presents a disaggregation of the Company’s revenues based on categories used by the Company to evaluate sales performance:

          Quarter ended  
    March 31,     April 1,  
    2018     2017  
  $   $  
Global Ingredients            
Internationally-sourced organic ingredients   102,267     84,641  
North American-sourced grains and seeds   34,064     42,001  
Total Global Ingredients   136,331     126,642  
             
Consumer Products            
Beverage products(1)   85,250     81,242  
Frozen fruit products(2)   77,471     98,330  
Snack products(3)   13,600     23,817  
Total Consumer Products   176,321     203,389  
Total revenues   312,652     330,031  
  (1)

Includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters.

  (2)

Includes individually quick frozen (“IQF”) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use.

  (3)

Includes fruit snack offerings, as well as flexible resealable pouch and nutrition bar products, which were exited in 2017 (see note 3).


SUNOPTA INC. 12 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)


3.

Value Creation Plan

Overview

On October 7, 2016, the Company entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, “Oaktree”). On October 7, 2016, Oaktree invested $85.0 million through the purchase of cumulative, non-participating Series A Preferred Stock (the “Preferred Stock”) of the Company’s wholly-owned subsidiary, SunOpta Foods Inc. (“SunOpta Foods”) (see note 7). Following the strategic partnership, with the assistance of Oaktree, the Company conducted a thorough review of its operations, management and governance, with the objective of maximizing the Company’s ability to deliver long-term value to its shareholders. As a product of this review, the Company developed a Value Creation Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Company engaged third-party management consulting firms to support the design and implementation of the Value Creation Plan.

In 2016, measures taken under the Value Creation Plan included the closure of the Company’s San Bernardino, California, juice facility and the Company’s soy extraction facility in Heuvelton, New York.

In 2017, further measures taken under the Value Creation Plan included the exits from flexible resealable pouch and nutrition bar product lines and operations (see below), as well as the consolidation of grain operations and related closure of a grain-handling facility in Moorhead, Minnesota, and the consolidation of roasted snack operations and related planned closure of the Company’s Wahpeton, North Dakota, roasting facility. In addition, the Company made organizational changes within its management and executive teams, along with new leadership to many corporate, commercial and operational functions. The Company also added new employees in the areas of quality, sales, marketing, operations and engineering, and made capital investments at several of its manufacturing facilities to enhance food safety and production efficiencies.

Flexible Resealable Pouch and Nutrition Bar Product Lines and Operations

As the flexible resealable pouch and nutrition bar product lines and operations do not qualify for presentation as discontinued operations, operating results from these activities were reported in continuing operations on the consolidated statements of operations for the current and comparative period. Revenues from sales of these product lines were $2.6 million and $15.4 million for the quarters ended March 31, 2018 and April 1, 2017, respectively. Revenues reported from these operations for the quarter ended March 31, 2018, related to the delivery of remaining inventories to customers under existing contracts at the time of exit. Losses before income taxes from these operations were $1.3 million and $2.0 million for the quarters ended March 31, 2018 and April 1, 2017, respectively. For the quarter ended March 31, 2018, the loss before income taxes from these operations included the recognition of the remaining lease obligation of $1.3 million related to the vacated nutrition bar processing facility. These operations are included in the Consumer Products operating segment.

SUNOPTA INC. 13 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

Costs Incurred Under the Value Creation Plan

The following table summarizes costs incurred under the Value Creation Plan for the quarters ended March 31, 2018 and April 1, 2017:

    (a)     (b)     (c)        
          Employee              
    Asset     recruitment,     Consulting        
    impairments     retention and     fees and        
    and facility     termination     temporary        
    closure costs     costs     labor costs     Total  
  $   $   $   $  
March 31, 2018                        
Balance payable (receivable), December 30, 2017(1)   (700 )   4,427     -     3,727  
Costs incurred and charged to expense   1,650     435     110     2,195  
Cash receipts (payments), net   700     (2,883 )   (110 )   (2,293 )
Non-cash adjustments   (339 )   -     -     (339 )
Balance payable, March 31, 2018(1)   1,311     1,979     -     3,290  
April 1, 2017                        
Balance payable, December 31, 2016   -     1,803     1,657     3,460  
Costs incurred and charged to expense   4,095     3,478     9,710     17,283  
Cash payments   (3,581 )   (2,578 )   (1,774 )   (7,933 )
Non-cash adjustments   (714 )   276     -     (438 )
Balance payable (receivable), April 1, 2017   (200 )   2,979     9,593     12,372  

  (1)

Balance payable was included in accounts payable and accrued liabilities and balance receivable was included in accounts receivable on the consolidated balance sheet.


(a)

Asset impairments and facility closure costs

For the quarter ended March 31, 2018, costs incurred included the remaining lease obligation related to the vacated nutrition bar processing facility, and an additional impairment loss related to the Wahpeton roasting facility. Net cash receipts included proceeds on the sale of nutrition bar equipment. Balance payable as at March 31, 2018, represents the remaining nutrition bar facility lease obligation, which extends until December 2020. The Company is pursuing potential parties interested in assuming the facility lease.

For the quarter ended April 1, 2017, cost incurred included the early buyout of the San Bernardino equipment leases, as well as closure costs related to the San Bernardino facility prior to its disposal to the landlord. In exchange for the San Bernardino assets, the facility landlord released the Company from its remaining property lease obligation and paid proceeds of $0.2 million in December 2017.

(b)

Employee recruitment, retention and termination costs

Represents third-party recruiting fees incurred to identify and retain new employees; reimbursement of relocation costs for new employees; retention and signing bonuses accrued for certain existing and new employees; and severance benefits, net of forfeitures of stock-based awards, and legal costs related to employee terminations. Retention bonuses were paid out in the first quarter of 2018 to employees who remained employed by the Company through December 31, 2017, or other specified dates. Certain employees were entitled to pro-rata payouts of their retention bonuses if their employment terminated earlier than their retention payment date.

SUNOPTA INC. 14 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

(c)

Consulting fees and temporary labor costs

Represents the cost for third-party consultants and temporary labor engaged to support the design and implementation of the Value Creation Plan. These efforts were substantially completed during fiscal 2017.

The following table summarizes costs incurred since the inception of the Value Creation Plan to March 31, 2018:

          Employee              
    Asset     recruitment,     Consulting        
    impairments     retention and     fees and        
    and facility     termination     temporary        
    closure costs     costs     labor costs     Total  
  $   $   $   $  
Costs incurred and charged to expense   34,938     14,816     20,679     70,433  
Cash payments, net   (10,046 )   (13,260 )   (20,679 )   (43,985 )
Non-cash adjustments   (23,581 )   423     -     (23,158 )
Balance payable, March 31, 2018   1,311     1,979     -     3,290  

For the quarters ended March 31, 2018 and April 1, 2017, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:

          Quarter ended  
    March 31,        
    2018     April 1, 2017  
  $   $  
Cost of goods sold(1)   100     372  
Selling, general and administrative expenses(2)   313     11,438  
Other expense(3)   1,782     5,473  
    2,195     17,283  

  (1)

Facility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

  (2)

Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

  (3)

For the quarter ended March 31, 2018, asset impairment, lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $0.3 million (April 1, 2017 – $nil); Consumer Products operating segment - $1.3 million (April 1, 2017 – $4.7 million); and Corporate Services - $0.1 million (April 1, 2017 – $0.8 million).


SUNOPTA INC. 15 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

4.

Derivative Financial Instruments and Fair Value Measurements

The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018 and December 30, 2017:

                      March 31, 2018  
    Fair value                    
    asset (liability)     Level 1     Level 2     Level 3  
  $   $   $   $  
Commodity futures and forward contracts(1)                        
     Current asset   202     -     202     -  
     Long-term asset   45     -     45     -  
     Current liability   (1,266 )   (56 )   (1,210 )   -  
     Long-term liability   (8 )   -     (8 )   -  
Inventories carried at market(2)   4,368     -     4,368     -  
Forward foreign currency contracts(3)                      
     Not designated as hedging instruments   (710 )   -     (710 )   -  
     Designated as hedging instruments   575     -     575     -  
Contingent consideration(4)   (8,904 )   -     -     (8,904 )
Embedded derivative   2,690     -     -     2,690  

                December 30, 2017  
    Fair value                    
    asset (liability)     Level 1     Level 2     Level 3  
  $   $   $   $  
Commodity futures and forward contracts(1)                        
     Current asset   738     -     738     -  
     Current liability   (240 )   (35 )   (205 )   -  
     Long-term liability   (4 )   -     (4 )   -  
Inventories carried at market(2)   3,838     -     3,838     -  
Forward foreign currency contracts(3)                      
     Not designated as hedging instruments   (1,060 )   -     (1,060 )   -  
     Designated as hedging instruments   (435 )   -     (435 )   -  
Contingent consideration(4)   (11,320 )   -     -     (11,320 )
Embedded derivative   2,690     -     -     2,690  

(1)

Commodity futures and forward contracts

Represents exchange-traded commodity futures and forward commodity purchase and sale contracts. Exchange-traded futures are fair valued based on unadjusted quotes for identical assets priced in active markets and are classified as level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Local market adjustments use observable inputs or market transactions for similar assets or liabilities, and, as a result, are classified as level 2. Based on historical experience with the Company’s suppliers and customers, the Company’s own credit risk, and the Company’s knowledge of current market conditions, the Company does not view non-performance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts.

These exchange-traded commodity futures and forward commodity purchase and sale contracts are used as part of the Company’s risk management strategy, and represent economic hedges to limit risk related to fluctuations in the price of certain commodity grains, as well as the prices of cocoa and coffee. These contracts are not designated as hedges for accounting purposes. Gains and losses on changes in fair value of these contracts are included in cost of goods sold on the consolidated statement of operations. For the quarter ended March 31, 2018, the Company recognized a loss of $1.5 million (April 1, 2017 – loss of $0.0 million) related to changes in the fair value of these contracts. Unrealized gains on short-term contracts are included in other current assets; and unrealized losses on short-term and long-term contracts are included in other current liabilities and long-term liabilities, respectively, on the consolidated balance sheets.

SUNOPTA INC. 16 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

As at March 31, 2018, the notional amounts of open commodity futures and forward purchase and sale contracts were as follows (in thousands of bushels):

    Number of bushels purchased (sold)  
    Corn     Soybeans  
Forward commodity purchase contracts   799     393  
Forward commodity sale contracts   (326 )   (899 )
Commodity futures contracts   (750 )   210  

In addition, as at March 31, 2018, the Company had net open forward contracts to sell 716 lots (December 30, 2017 – 299 lots sold) of cocoa.

(2)

Inventories carried at market

The fair value of grain inventories carried at market is determined using quoted market prices from the Chicago Board of Trade (“CBoT”), as adjusted for differences in local markets, and broker or dealer quotes. As at March 31, 2018, the Company had 235,992 bushels of commodity corn and 292,019 bushels of commodity soybeans included in inventories carried at market. The fair value of these inventories is included in level 2 of the fair value hierarchy, as there are observable quoted prices for similar assets in active markets. Gains and losses on these inventories are included in cost of goods sold on the consolidated statements of operations. Inventories carried at market are included in inventories on the consolidated balance sheets.

(3)

Foreign forward currency contracts

As part of its risk management strategy, the Company enters into forward foreign exchange contracts to reduce its exposure to fluctuations in foreign currency exchange rates. For any open forward foreign exchange contracts at period end, the contract rate is compared to the forward rate, and a gain or loss is recorded. These contracts are included in level 2 of the fair value hierarchy, as the inputs used in making the fair value determination are derived from and are corroborated by observable market data. Certain of these forward foreign exchange contracts may be designated as cash flow hedges for accounting purposes, while other of these contracts represent economic hedges that are not designated as hedging instruments.

  (i)

Not designated as hedging instruments

As at March 31, 2018, the Company had open forward foreign exchange contracts to sell euros to buy U.S. dollars with a notional value of €12.8 million ($15.2 million), and to sell British pounds to buy euros with a notional value of £0.4 million (€0.4 million). As these contracts were not designated as hedging instruments, gains and losses on changes in the fair value of these contracts are included in foreign exchange loss or gain on the consolidated statement of operations. For the quarter ended March 31, 2018, the Company recognized a gain of $0.4 million (April 1, 2017 – loss of $0.9 million) related to changes in the fair value of these contracts. Unrealized gains and losses on these contracts are included in accounts receivable and accounts payable, respectively, on the consolidated balance sheets.

SUNOPTA INC. 17 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

  (ii)

Designated as hedging instruments

As at March 31, 2018, the Company had net open forward foreign exchange contracts to sell U.S. dollars to buy Mexican pesos with a notional value of $11.1 million (M$214.5 million). These contracts were entered into as part of a hedging program to manage the variability of cash flows associated with a portion of forecasted purchases of raw fruit inventories denominated in Mexican pesos. As these contracts have been designated as hedging instruments, the effective portion of the gains and losses on changes in the fair value of these contracts is included in other comprehensive earnings and reclassified to cost of goods sold in the same period the hedged transaction affects earnings, which is upon the sale of the inventories. For the quarter ended March 31, 2018, the Company recognized a net unrealized gain in other comprehensive earnings of $0.8 million (April 1, 2017 – gain of $1.8 million) related to changes in the fair value of open contracts, and for the quarter ended March 31, 2018, the Company reclassified $0.2 million of realized losses on closed contracts from other comprehensive earnings to cost of goods sold. The Company expects to reclassify the $0.6 million amount of the unrealized losses recorded in accumulated other comprehensive loss as at March 31, 2018, to earnings over the next five months. Unrealized gains and losses on these contracts are included in other current assets and other current liabilities, respectively, on the consolidated balance sheets.

(4)

Contingent consideration

The fair value measurement of contingent consideration arising from business acquisitions is determined using unobservable (level 3) inputs. These inputs include: (i) the estimated amount and timing of the projected cash flows on which the contingency is based; and (ii) the risk-adjusted discount rate used to calculate the present value of those cash flows. The table below presents a reconciliation of contingent consideration obligations for the quarter ended March 31, 2018 and April 1, 2017. These obligations are included in long-term liabilities (including the current portion thereof) on the consolidated balance sheets.

        Quarter ended  
    March 31,     April 1,  
    2018     2017  
  $   $  
Balance, beginning of period   (11,320 )   (15,279 )
     Fair value adjustments(1)   2,416     (120 )
     Payments   -     269  
Balance, end of period   (8,904 )   (15,130 )

(1)

For the quarter ended March 31, 2018, included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, reflected the accretion for the time value of money. (See note 9.)


5.

Inventories


    March 31,     December 30,  
    2018     2017  
  $   $  
Raw materials and work-in-process   257,407     262,527  
Finished goods   74,191     92,489  
Company-owned grain   10,738     9,937  
Inventory reserves   (7,855 )   (9,975 )
    334,481     354,978  

SUNOPTA INC. 18 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

6.

Bank Indebtedness and Long-Term Debt


    March 31,     December 30,  
    2018     2017  
  $   $  
Bank indebtedness:            
     Global Credit Facility(1)   233,586     230,502  
     Bulgarian credit facility   3,051     3,588  
    236,637     234,090  
             
Long-term debt:            
     Senior Secured Second Lien Notes, net of unamortized debt issuance costs of $7,417 (December 30, 2017 - $7,716)(2)   216,081     215,782  
     Asset-backed term loan   3,577     3,600  
     Capital lease obligations   5,102     5,651  
     Other   3,000     3,000  
    227,760     228,033  
Less: current portion   2,190     2,228  
    225,570     225,805  

(1)

Global Credit Facility

On February 11, 2016, the Company entered into a five-year credit agreement for a senior secured asset-based revolving credit facility with a syndicate of banks in the maximum aggregate principal amount of $350.0 million, subject to borrowing base capacity (the “Global Credit Facility”). The Global Credit Facility is used to support the working capital and general corporate needs of the Company’s global operations, in addition to funding future strategic initiatives. The Global Credit Facility also includes borrowing capacity available for letters of credit and provides for borrowings on same-day notice, including in the form of swingline loans. Subject to customary borrowing conditions and the agreement of any such lenders to provide such increased commitments, the Company may request to increase the total lending commitments under the Global Credit Facility to a maximum aggregate principal amount not to exceed $450.0 million. Outstanding principal amounts under the Global Credit Facility are repayable in full on the maturity date of February 10, 2021.

Individual borrowings under the Global Credit Facility have terms of six months or less and bear interest based on various reference rates, including prime rate and LIBOR plus an applicable margin. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR, and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set quarterly based on average borrowing availability for the preceding fiscal quarter. As at March 31, 2018, the weighted-average interest rate on the facilities was 3.93% .

On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”).

The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again.

Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings.

SUNOPTA INC. 19 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

Obligations under the Global Credit Facility are guaranteed by substantially all of the Company’s subsidiaries and, subject to certain exceptions, such obligations are secured by first priority liens on substantially all of the assets of the Company.

The Global Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to create liens on assets; sell assets and enter into sale and leaseback transactions; pay dividends, prepay junior lien and unsecured indebtedness and make other restricted payments; incur additional indebtedness and make guarantees; make investments, loans or advances, including acquisitions; and engage in mergers or consolidations. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the credit agreement.

(2)

Senior Secured Second Lien Notes

On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due 2022 (the “Notes”). As at March 31, 2018, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. Debt issuance costs are recorded as a reduction against the principal amount of the Notes and are being amortized over the six-year term of the Notes. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017. The Notes will mature on October 9, 2022. Giving effect to the amortization of debt issuance costs, the effective interest rate on the Notes is approximately 10.4% per annum.

Prior to October 9, 2018, SunOpta Foods may redeem some or all of the Notes at any time and from time to time at a “make-whole” redemption price set forth in the indenture governing the Notes. On or after October 9, 2018, SunOpta Foods may redeem the Notes, in whole or in part, at any time at the redemption prices equal to 107.125% through October 8, 2019, 104.750% from October 9, 2019 through October 8, 2020, 102.375% from October 9, 2020 through October 8, 2021 and at par thereafter, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In addition, prior to October 9, 2018, SunOpta Foods may, on one or more occasions, redeem up to 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price equal to 109.500% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. At any time prior to October 9, 2018, SunOpta Foods may also redeem, during each twelve-month period beginning on October 20, 2016, up to 10% of the aggregate principal amount of the Notes at a price equal to 103.000% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In the event of a change of control, SunOpta Foods will be required to make an offer to repurchase the Notes at 101.000% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The Notes are secured by second-priority liens on substantially all of the assets that secure the credit facilities provided under the Global Credit Facility, subject to certain exceptions and permitted liens. The Notes are senior secured obligations and rank equally in right of payment with SunOpta Foods’ existing and future senior debt and senior in right of payment to any future subordinated debt. The Notes are effectively subordinated to debt under the Global Credit Facility and any future indebtedness secured on a first priority basis. The Notes are initially guaranteed on a senior secured second-priority basis by the Company and each of its subsidiaries (other than SunOpta Foods) that guarantees indebtedness under the Global Credit Facility, subject to certain exceptions.

The Notes are subject to covenants that, among other things, limit the Company’s ability to (i) incur additional debt or issue preferred stock; (ii) pay dividends and make certain types of investments and other restricted payments; (iii) create liens; (iv) enter into transactions with affiliates; (v) sell assets; and (vi) create restrictions on the ability of restricted subsidiaries to pay dividends, make loans or advances or transfer assets to the Company, SunOpta Foods or any guarantor of the Notes. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the indenture governing the Notes. In addition, the indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the indenture, certain payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the trustee or holders of at least 25% in principal amount of the outstanding Notes may declare the principal of and accrued and unpaid interest on, if any, all the Notes to be due and payable.

As at March 31, 2018, the estimated fair value of the outstanding Notes was approximately $240 million, based on quoted prices of recent over-the-counter transactions (Level 2).

SUNOPTA INC. 20 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)
   
7.

Series A Preferred Stock

On October 7, 2016 (the “Closing Date”), the Company and SunOpta Foods entered into a subscription agreement (the “Subscription Agreement”) with Oaktree Organics, L.P. and Oaktree Huntington Investment Fund II, L.P. (collectively, the “Investors”). Pursuant to the Subscription Agreement, SunOpta Foods issued an aggregate of 85,000 shares of Preferred Stock to the Investors for consideration in the amount of $85.0 million. In connection with the issuance of the Preferred Stock, the Company incurred direct and incremental expenses of $6.0 million, which reduced the carrying value of the Preferred Stock. At any time on or after the fifth anniversary of the Closing Date, SunOpta Foods may redeem all of the Preferred Stock for an amount, per share of Preferred Stock, equal to the value of the liquidation preference at such time. The carrying value of the Preferred Stock is being accreted to the redemption amount of $85.0 million through charges to retained earnings/accumulated deficit over the period preceding the fifth anniversary of the Closing Date, which accretion amounted to $0.3 million and $0.2 million for the quarters ended March 31, 2018 and April 1, 2017, respectively.

In connection with the Subscription Agreement, the Company agreed to, among other things (i) ensure SunOpta Foods has sufficient funds to pay its obligations under the terms of the Preferred Stock and (ii) grant each holder of Preferred Stock (the “Holder”) the right to exchange the Preferred Stock for shares of common stock of the Company (the “Common Shares”). The Preferred Stock is non-participating with the Common Shares in dividends and undistributed earnings of the Company.

The Preferred Stock has a stated value and initial liquidation preference of $1,000 per share. Cumulative preferred dividends accrue daily on the Preferred Stock at an annualized rate of 8.0% prior to October 5, 2025 and 12.5% thereafter, in each case of the liquidation preference (subject to an increase of 1.0% per quarter, up to a maximum rate of 5.0% per quarter on the occurrence of certain events of non-compliance). Prior to October 5, 2025, SunOpta Foods may pay dividends in cash or elect, in lieu of paying cash, to add the amount that would have been paid to the liquidation preference. After October 4, 2025, the failure to pay dividends in cash will be an event of non-compliance. The Preferred Stock ranks senior to the shares of common stock of SunOpta Foods with respect to dividend rights and rights on the distribution of assets on any liquidation, winding up or dissolution of the Company or SunOpta Foods. For the quarters ended March 31, 2018 and April 1, 2017, the Company paid cash dividends on the Preferred Stock of $1.7 million, and, as at March 31, 2018, the Company had accrued unpaid dividends of $1.7 million, which were recorded in accounts payable and accrued liabilities on the consolidated balance sheet.

At any time, the Holders may exchange their shares of Preferred Stock, in whole or in part, into the number of Common Shares equal to, per share of Preferred Stock, the quotient of the liquidation preference divided by $7.50 (such price, the “Exchange Price” and such quotient, the “Exchange Rate”). As at March 31, 2018, the aggregate shares of Preferred Stock outstanding were exchangeable into 11,333,333 Common Shares. The Exchange Price is subject to certain anti-dilution adjustments, including a weighted-average adjustment for issuances of Common Shares below the Exchange Price, provided that the Exchange Price may not be lower than $7.00 (subject to adjustment in certain circumstances). SunOpta Foods may cause the Holders to exchange all of the Preferred Stock into a number of Common Shares based on the applicable Exchange Price if (i) fewer than 10% of the shares of Preferred Stock issued on the Closing Date remain outstanding, or (ii) on or after the third anniversary of the Closing Date, the average volume-weighted average price of the Common Shares during the then preceding 20 trading day period is greater than 200% of the Exchange Price.

In connection with the Subscription Agreement, the Company issued 11,333,333 Special Shares, Series 1 (the “Special Voting Shares”) to the Investors, which entitle the Investors to one vote per Special Voting Share on all matters submitted to a vote of the holders of Common Shares, together as a single class, subject to certain exceptions. Additional Special Voting Shares will be issued, or existing Special Voting Shares will be redeemed, as necessary to ensure that the aggregate number of Special Voting Shares outstanding is equal to the number of shares of Preferred Stock outstanding from time to time multiplied by the Exchange Rate in effect at such time. As at March 31, 2018, 11,333,333 Special Voting Shares were issued and outstanding, which represented an approximate 11.5% voting interest in the Company. The Special Voting Shares are not transferable and the voting rights associated with the Special Voting Shares will terminate upon the transfer of the Preferred Stock to a third party, other than a controlled affiliate of the Investors. The Investors are entitled to designate up to two nominees for election to the Board of Directors of the Company (the “Board”) and have the right to designate one individual to attend meetings of the Board as a non-voting observer, subject to the Investors maintaining certain levels of beneficial ownership of Common Shares on an as-exchanged basis. For so long as the Investors beneficially own or control at least 50% of the Preferred Stock issued on the Closing Date, including any corresponding Common Shares into which such Preferred Stock are exchanged, the Investors will be entitled to (i) participation rights with respect to future equity offerings of the Company, and (ii) governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries.

SUNOPTA INC. 21 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

8.

Accumulated Other Comprehensive Loss

Net unrealized gains/(losses) recorded in accumulated other comprehensive loss were as follows:

    March 31,     December 30,  
    2018     2017  
  $   $  
Currency translation adjustment   (5,627 )   (6,963 )
Cash flow hedges, net of income taxes   402     (305 )
    (5,225 )   (7,268 )

9.

Other Expense (Income), Net

The components of other expense (income) were as follows:

          Quarter ended  
    March 31,     April 1,  
    2018     2017  
  $   $  
Increase (decrease) in fair value of contingent consideration (see note 4(4))   (2,416 )   120  
Impairment of long-lived assets and lease obligation costs(1)   1,550     3,723  
Product withdrawal and recall costs(2)   323     279  
Employee termination costs(3)   232     1,750  
Other   (91 )   (429 )
    (402 )   5,443  

(1)

Impairment of long-lived assets and lease obligation costs

For the quarter ended March 31, 2018, included the remaining lease obligation related to the vacated nutrition bar processing facility, and an additional impairment loss related to an agreement to sell the Wahpeton roasting facility.

For the quarter ended April 1, 2017, represented the loss on the disposal of the San Bernardino assets, including the cost of the early buyout of the equipment leases.


SUNOPTA INC. 22 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

(2)

Product withdrawal and recall costs

For the quarters ended March 31, 2018 and April 1, 2017, represented product withdrawal and recall costs that were not eligible for reimbursement under the Company’s insurance policies, including certain costs related to the voluntary recall of certain roasted sunflower kernel products initiated by the Company during the second quarter of 2016.

(3)

Employee termination costs

For the quarters ended March 31, 2018 and April 1, 2017, represented severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan (see note 3).

SUNOPTA INC. 23 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

10.

Loss Per Share

Basic and diluted loss per share were calculated as follows (shares in thousands):

  Quarter ended  
    March 31,     April 1,  
    2018     2017  
Numerator for basic loss per share:            
     Loss attributable to SunOpta Inc. $  (4,363 ) $  (11,398 )
     Less: dividends and accretion on Series A Preferred Stock   (1,967 )   (1,940 )
     Loss attributable to common shareholders $  (6,330 ) $  (13,338 )
             
Denominator for basic loss per share:            
     Basic weighted-average number of shares outstanding   86,810     85,929  
             
Basic loss per share $  (0.07 ) $  (0.16 )
             
Numerator for diluted loss per share:            
     Loss attributable to SunOpta Inc. $  (4,363 ) $  (11,398 )
     Less: dividends and accretion on Series A Preferred Stock(1)   (1,967 )   (1,940 )
     Loss attributable to common shareholders $  (6,330 ) $  (13,338 )
             
Denominator for diluted loss per share:            
     Basic weighted-average number of shares outstanding   86,810     85,929  
     Dilutive effect of the following:            
        Series A Preferred Stock(1)   -     -  
        Stock options and restricted stock units(2)   -     -  
     Diluted weighted-average number of shares outstanding   86,810     85,929  
             
Diluted loss per share $  (0.07 ) $  (0.16 )

(1)

For the quarters ended March 31, 2018, it was more dilutive to assume the Preferred Stock was not converted into Common Shares and, therefore, the numerator of the diluted loss per share calculation was not adjusted to add back the dividends and accretion on the Preferred Stock and the denominator was not adjusted to include 11,333,333 Common Shares issuable on an if-converted basis.

 

 

(2)

For the quarters ended March 31, 2018 and April 1, 2017, stock options and restricted stock units to purchase or receive 657,946 and 84,659 Common Shares, respectively, were excluded from the calculation of diluted loss per share due to their anti- dilutive effect of reducing the loss per share. In addition, for the quarters ended March 31, 2018 and April 1, 2017, options to purchase 1,984,184 and 1,362,347 Common Shares, respectively, were anti-dilutive because the exercise prices of these options were greater than the average market price.


SUNOPTA INC. 24 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

11.

Supplemental Cash Flow Information


          Quarter ended  
    March 31,     April 1,  
    2018     2017  
     
Changes in non-cash working capital:            
     Accounts receivable   (12,359 )   (11,127 )
     Inventories   18,302     26,358  
     Income tax recoverable/payable   3,341     (1,460 )
     Prepaid expenses and other current assets   (5,376 )   (4,733 )
     Accounts payable and accrued liabilities   381     12,410  
     Customer and other deposits   (1,400 )   1,887  
    2,889     23,335  

12.

Commitments and Contingencies

Employment Matter

On April 19, 2013, a class-action complaint, in the case titled De Jesus, et al. v. Frozsun, Inc. d/b/a Frozsun Foods, was filed against Sunrise Growers, Inc. (“Sunrise”) (then named Frozsun, Inc.) in California Superior Court, Santa Barbara County seeking damages, equitable relief and reasonable attorneys’ fees for alleged wage and hour violations. This case includes claims for failure to pay all hours worked, failure to pay overtime wages, meal and rest period violations, waiting-time penalties, improper wage statements and unfair business practices. The putative class includes approximately 10,000 non-exempt hourly employees from Sunrise’s production facilities in Santa Maria and Oxnard, California. The parties attended mediation on October 12, 2017, and reached a general agreement to resolve the matter on a class-wide basis. After negotiating the remaining details of the settlement, the parties sought preliminary approval of the settlement from the court in April 2018, and are awaiting the court order. The Company expects to recover the full amount payable under the settlement through insurance coverage and an escrow account established in connection with the Company's acquisition of Sunrise.

Product Recall

On November 20, 2017, Treehouse Foods, Inc., several of its related entities, and its insurer filed a lawsuit against the Company in the Circuit Court of Cook County, Illinois titled Treehouse Foods, Inc. et al. v. SunOpta Grains and Food, Inc. The Company was served with the Summons and Complaint on January 24, 2018, and the plaintiffs filed an Amended Complaint on April 23, 2018. The plaintiffs allege economic damages resulting from the Company’s 2016 voluntary recall of certain roasted sunflower kernel products due to the potential for Listeria monocytogenes contamination. The case includes claims for breach of express and implied warranty, negligence, strict liability, and indemnity seeking $16.2 million in damages. There are no allegations of personal injury. The Company intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of this claim, nor can it estimate the amount of loss, or range of loss, if any, that may result from this claim.

Other Claims

In addition, various claims and potential claims arising in the normal course of business are pending against the Company. It is the opinion of management that these claims or potential claims are without merit and the amount of potential liability, if any, to the Company is not determinable. Management believes the final determination of these claims or potential claims will not materially affect the financial position or results of the Company.

SUNOPTA INC. 25 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

13.

Segmented Information

The composition of the Company’s reportable segments is as follows:

 

Global Ingredients aggregates the Company’s North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused on the procurement and sale of organic commodities and value-added ingredients, and specialty and organic grains and seeds.

   

 

 

Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes IQF fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings, and included flexible resealable pouch and nutrition bar product lines, which were exited in 2017.

Effective the first quarter of 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. Revenues and gross profit related to these operations were $3.4 million and $0.6 million, respectively, for the quarter ended March 31, 2018, compared with $3.6 million and $0.6 million, respectively, for the quarter ended April 1, 2017. The segment information presented below for the quarter ended April 1, 2017 has been restated to reflect this realignment.

In addition, Corporate Services provides a variety of management, financial, information technology, treasury and administration services to each of the Company’s operating segments from the Company’s headquarters in Mississauga, Ontario and administrative office in Edina, Minnesota.

When reviewing the operating results of the Company’s operating segments, management uses segment revenues from external customers and segment operating income/loss to assess performance and allocate resources. Segment operating income/loss excludes other income/expense items. In addition, interest expense and income taxes are not allocated to the operating segments.

          Quarter ended
March 31, 2018
 
    Global     Consumer        
    Ingredients     Products     Consolidated  
       
Segment revenues from external customers   136,331     176,321     312,652  
Segment operating income   3,102     3,316     6,418  
Corporate Services               (4,755 )
Other income, net (see note 9)               402  
Interest expense, net               (8,220 )
Loss before income taxes               (6,155 )

SUNOPTA INC. 26 March 31, 2018 10-Q



SunOpta Inc.
Notes to Consolidated Financial Statements
For the quarters ended March 31, 2018 and April 1, 2017
(Unaudited)
(All tabular amounts expressed in thousands of U.S. dollars, except per share amounts)

          Quarter ended
April 1, 2017
 
    Global     Consumer        
    Ingredients     Products     Consolidated  
       
Segment revenues from external customers   126,642     203,389     330,031  
Segment operating income   4,201     6,498     10,699  
Corporate Services               (13,655 )
Other expense, net (see note 9)               (5,443 )
Interest expense, net               (7,754 )
Loss before income taxes               (16,153 )

SUNOPTA INC. 27 March 31, 2018 10-Q


Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Financial Information

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the interim consolidated financial statements, and notes thereto, for the quarter ended March 31, 2018 contained under Item 1 of this Quarterly Report on Form 10-Q and in conjunction with the annual consolidated financial statements, and notes thereto, contained in the Annual Report on Form 10-K for the fiscal year ended December 30, 2017 (“Form 10-K”). Unless otherwise indicated herein, the discussion and analysis contained in this MD&A includes information available to May 9, 2018.

Certain statements contained in this MD&A may constitute forward-looking statements as defined under securities laws. Forward-looking statements may relate to our future outlook and anticipated events or results and may include statements regarding our future financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives. In some cases, forward-looking statements can be identified by terms such as “anticipate”, “estimate”, “target”, “intend”, “project”, “potential”, “continue”, “believe”, “expect”, “could”, “would”, “should”, “might”, “plan”, “will”, “may”, “predict”, or other similar expressions concerning matters that are not historical facts. To the extent any forward-looking statements contain future-oriented financial information or financial outlooks, such information is being provided to enable a reader to assess our financial condition, material changes in our financial condition, our results of operations, and our liquidity and capital resources. Readers are cautioned that this information may not be appropriate for any other purpose, including investment decisions.

Forward-looking statements contained in this MD&A are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. While we consider these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking statements are also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors are more fully described in the “Risk Factors” section at Item 1A of the Form 10-K and Item 1A of Part II of this report.

Forward-looking statements contained in this commentary are based on our current estimates, expectations and projections, which we believe are reasonable as of the date of this report. Forward-looking statements are not guarantees of future performance or events. You should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. Other than as required under securities laws, we do not undertake to update any forward-looking information at any particular time.

Unless otherwise noted herein, all currency amounts in this MD&A are expressed in U.S. dollars. All tabular dollar amounts are expressed in thousands of U.S. dollars, except per share amounts.

Overview

SunOpta is a global company focused on sourcing organic and non-genetically modified (“non-GMO”) ingredients, and manufacturing healthy food and beverage products. Our global sourcing platform makes us one of the leading suppliers of organic and non-GMO raw materials and ingredients in the food industry. Our consumer products portfolio utilizes internally and externally sourced raw materials and ingredients to manufacture healthy food and beverage products for supply to retail, foodservice and branded food customers. We operate our business in the following reportable segments:

 

Global Ingredients aggregates our North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused on the procurement and sale of organic commodities and value-added ingredients, and specialty and organic grains and seeds.

   

 

 

Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes individually quick frozen (“IQF”) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings, and included flexible resealable pouch and nutrition bar product lines, which were exited in 2017.


SUNOPTA INC. 28 March 31, 2018 10-Q


Effective the first quarter of 2018, we transferred certain of our specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to our Chief Executive Officer. These operations produce liquid bases, including for our non-dairy aseptic beverage operations, as well as spray-dried ingredients. The segment information presented in this MD&A for the comparative period has been restated to reflect this realignment.

Fiscal Year

We operate on a fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017.

Value Creation Plan

On October 7, 2016, we entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, “Oaktree”). On October 7, 2016, Oaktree invested $85.0 million through the purchase of cumulative, non-participating Series A Preferred Stock (the “Preferred Stock”) of our wholly-owned subsidiary, SunOpta Foods Inc. (“SunOpta Foods”).

Following the strategic partnership, with the assistance of Oaktree, we conducted a thorough review of our operations, management and governance, with the objective of maximizing our ability to deliver long-term value to our shareholders. As a product of this review our management and the Board of Directors developed a Value Creation Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Value Creation Plan is a broad-based initiative focused on increasing shareholder value through strategic investments made to the people and assets of the Company to deliver sustained profitable growth. We expect the Value Creation Plan to be implemented in phases, and span several years.

We are targeting implementation of $30 million of productivity-driven annualized enhancements to adjusted EBITDA in the first phase of the plan, to be implemented over 2017 and 2018. For 2017, these adjusted EBITDA benefits were offset by expenses associated with the Value Creation Plan, including structural investments made in the areas of quality, sales, marketing, operations and engineering resources, as well as non-structural third-party consulting support, severance and recruiting costs. The Value Creation Plan also calls for increased investment in capital upgrades at several manufacturing facilities to enhance food safety and manufacturing efficiencies. Over time, these investments are expected to yield additional improvement in adjusted EBITDA beyond the $30 million of initial productivity-driven savings. During the first quarter of 2018, we continued to make progress against each of the four pillars of the Value Creation Plan, and we believe we are on track to achieve targeted productivity enhancements, while continuing to make the necessary structural investments we believe will accelerate growth and drive long-term value. Since the initiation of the Value Creation Plan, we have implemented actions that are expected to yield approximately $20 million of annualized adjusted EBITDA benefits.

Recent progress on each of the four pillars of the Value Creation Plan is highlighted below.

Portfolio Optimization

The focus of the portfolio optimization pillar is to simplify the business, investing where structural advantages exist, while exiting businesses or product lines where we are not effectively positioned. Recent highlights include:

 

Initiated plans to expand aseptic processing and packaging capacity and capabilities at our Allentown, Pennsylvania, beverage facility, based on current growth trends and recent business wins in both the non-dairy and broth categories. This expansion is expected to cost approximately $22 million and come online in mid-2019. The investment is designed to add enhanced mixing and processing capabilities which will enable us to bring additional innovation to the growing plant-based beverage market. In addition, we will be adding increased processing and filling capacity, which is expected to provide increased flexibility and cost advantages across our national network of aseptic plants, while creating needed capacity to continue to grow with organic and conventional broth offerings.


SUNOPTA INC. 29 March 31, 2018 10-Q



 

Completed the expansion project at our Mexican frozen fruit facility, which is expected to drive incremental cost savings, in addition to enhanced profitability from the addition of retail bagging capabilities while continuing to ensure high quality and customer service. The increased freezing and storage capacity also enables further diversification of the fruit varieties sourced from Mexico, which is expected to provide long-term cost advantages.

   

 

 

Began commercial production on the second roasting and processing line at our organic cocoa facility in Holland. In support of increased demand and future growth opportunities in cocoa, this expansion approximately doubles processing capacity in addition to adding new capabilities.

   

 

 

Continued commissioning efforts on a new oil processing line at our Bulgarian sunflower facility, which is expected to drive incremental margins through growth and production efficiency.

   

 

 

Completed the installation of new roasting equipment at our Crookston, Minnesota, facility, and began commissioning activities in April 2018. The new equipment is expected to come on line in the third quarter of 2018, and will support further growth of a variety of roasted grains and seeds.

Operational Excellence

The focus of the operational excellence pillar is to ensure food quality and safety, coupled with improved operational performance and efficiency. We expect these efforts to generate productivity improvements and cost savings in manufacturing, procurement and logistics. Recent highlights include:

 

Continued advancement of food safety and quality efforts across the entire manufacturing footprint. Recent third-party audits of several beverage, snacks, and roasting facilities resulted in high scores and is evidence of our progress in this area.

   

 

Invested considerable time and resources into pack plan readiness initiatives across our frozen fruit facilities in California and Mexico, in preparation for the 2018 strawberry harvest.

   

 

Continued to identify productivity opportunities through the “SunOpta 360” continuous improvement initiative in the areas of manufacturing, purchasing and supply chain management.

Go-To-Market Effectiveness

The focus of the go-to-market effectiveness pillar is to optimize customer and product mix in existing sales channels, and identify and penetrate new high-potential sales channels. We expect efforts under this pillar to improve revenue growth and profitability over time. Recent highlights include:

 

Continued growth of the pipeline of commercial opportunities across the beverage, fruit and snack categories, with new retail and food service opportunities in fruit and roasted snacks.

   

 

Recent sales wins in key categories including everyday broth items with large mass and traditional retailers, non- dairy beverage with a large food distributor, and expanded geographic sales for private label juice.

   

 

Continued penetration into broadline food service with fruit and beverage offerings that utilize innovative and proprietary formulas packaged in control labels.

   

 

Recent retention of a retail frozen fruit account that was being re-bid plus a 14% increase in distribution, and multi- year supply agreement with a large foodservice operator for aseptic beverage products.

Process Sustainability

The focus of the process sustainability pillar is to ensure we have the infrastructure, systems and skills to sustain the business improvements and value captured from the Value Creation Plan. Broadening the skillset and experience of SunOpta’s leadership team is a critical component to the process sustainability pillar of the Value Creation Plan. Recent highlights include:

SUNOPTA INC. 30 March 31, 2018 10-Q



 

Enhanced employee health and safety processes and scorecard resulting in a reduction in recordable incidents year- to-date in 2018 compared to 2017.

   

 

Advanced sales and operations planning processes and tools in the fruit platform, which is enhancing readiness for the upcoming fruit season and positioning the platform to improve customer service metrics.

   

 

Completed the enterprise resource planning implementation project at the Mexican frozen fruit facility.

   

 

Consolidated transactional and other support functions of the Healthy Fruit platform into the North American shared services.

The statements we make in this MD&A about the expected results of the Value Creation Plan, including the timing for completion of measures undertaken, expected improvements in earnings, adjusted EBITDA, working capital efficiencies, expected cash flows, and expected costs, are forward-looking statements. See “Forward-Looking Statements” above. Adjusted EBITDA is a non-GAAP measure that management uses when assessing the performance of our operations. See footnote (3) to the “Consolidated Results of Operations for the Quarters Ended March 31, 2018 and April 1, 2017” table below for a discussion on the use of this non-GAAP measure and for a reconciliation of adjusted EBITDA from net loss, which we consider to be the most directly comparable U.S. GAAP financial measure.

Costs incurred to-date in connection with portfolio optimization measures taken under the Value Creation Plan included impairment charges and facility closure costs primarily related to the closure of certain of our processing facilities and rationalization of our product portfolio, including the exits from flexible resealable pouch and nutrition bar product lines and operations in the fourth quarter of 2017, and consolidation of our roasted snack operations. In addition, we incurred employee recruitment, relocation, retention and severance costs related to exit activities and organizational changes within management and executive teams, and recruiting efforts in the areas of quality, sales, marketing, operations and engineering. We also incurred third-party legal advisory, consulting and temporary labor costs in support of the Value Creation Plan.

Costs incurred and charged to expense in the first quarters of 2018 and 2017, were recorded in the consolidated statement of operations as follows:

          Quarter ended  
    March 31,     April 1,  
    2018     2017  
     
Cost of goods sold(1)   100     372  
Selling, general and administrative expenses(2)   313     11,438  
Other expense(3)   1,782     5,473  
    2,195     17,283  
(1)

Facility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

(2)

Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

(3)

For the quarter ended March 31, 2018, asset impairment, lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $0.3 million (April 1, 2017 – $nil); Consumer Products operating segment - $1.3 million (April 1, 2017 – $4.7 million); and Corporate Services - $0.1 million (April 1, 2017 – $0.8 million).

We do not expect to incur significant additional direct costs related to the Value Creation Plan beyond the first quarter of 2018. Our expectation for additional costs related to the Value Creation Plan does not include costs that could arise from future actions the may be initiated under the plan.

For more information regarding the Value Creation Plan, see note 3 to the unaudited consolidated financial statements included in this report.

SUNOPTA INC. 31 March 31, 2018 10-Q


Consolidated Results of Operations for the Quarters Ended March 31, 2018 and April 1, 2017

    March 31,     April 1,              
For the quarter ended   2018     2017     Change     Change  
          %  
Revenues                        
     Global Ingredients   136,331     126,642     9,689     7.7%  
     Consumer Products   176,321     203,389     (27,068 )   -13.3%  
Total revenues   312,652     330,031     (17,379 )   -5.3%  
                         
Gross profit                        
     Global Ingredients   14,635     15,096     (461 )   -3.1%  
     Consumer Products   19,049     23,603     (4,554 )   -19.3%  
Total gross profit   33,684     38,699     (5,015 )   -13.0%  
                         
Segment operating income (loss)(1)                        
     Global Ingredients   3,102     4,201     (1,099 )   -26.2%  
     Consumer Products   3,316     6,498     (3,182 )   -49.0%  
     Corporate Services   (4,755 )   (13,655 )   8,900     65.2%  
Total segment operating income (loss)   1,663     (2,956 )   4,619     156.3%  
                         
Other expense (income), net   (402 )   5,443     (5,845 )   -107.4%  
                         
Earnings (loss) before the following   2,065     (8,399 )   10,464     124.6%  
Interest expense, net   8,220     7,754     466     6.0%  
Recovery of income taxes   (1,693 )   (4,969 )   3,276     65.9%  
Net loss(2),(3)   (4,462 )   (11,184 )   6,722     60.1%  
Earnings (loss) attributable to non-controlling interests   (99 )   214     (313 )   -146.3%  
Loss attributable to SunOpta Inc.   (4,363 )   (11,398 )   7,035     61.7%  
Dividends and accretion on Series A Preferred Stock   (1,967 )   (1,940 )   (27 )   -1.4%  
                         
Loss attributable to common shareholders(4)   (6,330 )   (13,338 )   7,008     52.5%  

(1)

When assessing the financial performance of our operating segments, we use an internal measure of operating income that excludes other income/expense items and goodwill impairments determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). This measure is the basis on which management, including the Chief Executive Officer, assesses the underlying performance of our operating segments.

   

We believe that disclosing this non-GAAP measure assists investors in comparing financial performance across reporting periods on a consistent basis by excluding items that are not indicative of our operating performance. However, the non-GAAP measure of operating income should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. The following table presents a reconciliation of segment operating income/loss to earnings/loss before the following, which we consider to be the most directly comparable U.S. GAAP financial measure.


  Global     Consumer     Corporate        
      Ingredients     Products     Services     Consolidated  
  For the quarter ended        
  March 31, 2018                        
  Segment operating income (loss)   3,102     3,316     (4,755 )   1,663  
  Other income (expense), net   (615 )   1,143     (126 )   402  
  Earnings (loss) before the following   2,487     4,459     (4,881 )   2,065  
                           
  April 1, 2017                        
  Segment operating income (loss)   4,201     6,498     (13,655 )   (2,956 )
  Other expense, net   (111 )   (4,480 )   (852 )   (5,443 )
  Earnings (loss) before the following   4,090     2,018     (14,507 )   (8,399 )

SUNOPTA INC. 32 March 31, 2018 10-Q


We believe that investors’ understanding of our financial performance is enhanced by disclosing the specific items that we exclude from segment operating income. However, any measure of operating income excluding any or all of these items is not, and should not be viewed as, a substitute for operating income prepared under U.S. GAAP. These items are presented solely to allow investors to more fully understand how we assess financial performance.

(2)

When assessing our financial performance, we use an internal measure of earnings attributable to common shareholders determined in accordance with U.S. GAAP that excludes specific items recognized in other income/expense, impairment losses on goodwill and long-lived assets, and other unusual items that are identified and evaluated on an individual basis, which due to their nature or size, we would not expect to occur as part of our normal business on a regular basis. We believe that the identification of these excluded items enhances an analysis of our financial performance of our business when comparing those operating results between periods, as we do not consider these items to be reflective of normal business operations.

   

The following table presents a reconciliation of adjusted earnings/loss from net loss, which we consider to be the most directly comparable U.S. GAAP financial measure. In addition, in recognition of our exit from flexible resealable pouch and nutrition bar product lines and operations (as described above under “Value Creation Plan”), we have prepared this table in a columnar format to present the effect of these operations on our consolidated results for the current and comparative periods. We believe this presentation assists investors in assessing the results of the operations we have exited and the effect of those operations on our financial performance.


      Excluding flexible     Flexible              
      resealable pouch     resealable pouch              
      and nutrition bar     and nutrition bar           Consolidated  
            Per Diluted           Per Diluted           Per Diluted  
            Share           Share           Share  
         For the quarter ended          $    
         March 31, 2018                                    
         Net loss   (3,478 )         (984 )         (4,462 )      
         Less: loss attributable to non-controlling interests   99           -           99        
         Less: dividends and accretion of Series A Preferred Stock   (1,967 )         -           (1,967 )      
         Loss attributable to common shareholders   (5,346 )   (0.06 )   (984 )   (0.01 )   (6,330 )   (0.07 )
                                       
         Adjusted for:                                    
                 Fair value adjustment on contingent consideration(a)   (2,500 )         -           (2,500 )      
                 Costs related to the Value Creation Plan(b)   984           1,211           2,195        
                 Product withdrawal and recall costs(c)   323           -           323        
                 Other(d)   (7 )         -           (7 )      
                 Net income tax effect(e)   221           (315 )         (94 )      
        Adjusted loss   (6,325 )   (0.07 )   (88 )   -     (6,413 )   (0.07 )
                                     
         April 1, 2017                                    
         Net loss   (9,970 )         (1,214 )         (11,184 )      
         Add: earnings attributable to non-controlling interests   (214 )         -           (214 )      
         Less: dividends and accretion of Series A Preferred Stock   (1,940 )         -           (1,940 )      
         Loss attributable to common shareholders   (12,124 )   (0.14 )   (1,214 )   (0.01 )   (13,338 )   (0.16 )
                                       
         Adjusted for:                                    
                 Costs related to the Value Creation Plan(f)   17,283           -           17,283        
                 Product withdrawal and recall costs(g)   1,008           -           1,008        
                 Other(d)   (309 )         -           (309 )      
                 Net income tax effect(e)   (5,532 )         -           (5,532 )      
         Adjusted earnings (loss)   326     -     (1,214 )   (0.01 )   (888 )   (0.01 )

  (a)

Reflects a fair value adjustment of $2.5 million to reduce the expected contingent consideration that may be payable in 2019 under an earn- out arrangement with the former unitholders of Citrusource LLC (“Citrusource”) (which we acquired in March 2015), based on the projected results for the business in fiscal 2018, which was recorded in other income.

  (b)

Reflects the write-down of remaining flexible resealable pouch and nutrition bar inventories of $0.1 million recorded in cost of goods sold; and consulting fees, and employee recruitment and relocation costs of $0.3 million recorded in selling, general and administrative (“SG&A”) expenses; and asset impairment, lease obligation and employee termination costs of $1.8 million recorded in other expense (as described above under “Value Creation Plan”).

  (c)

Reflects product withdrawal and recall costs not eligible for reimbursement under our insurance policies, which were recorded in other expense.

  (d)

Other included the accretion of contingent consideration obligations and gain/loss on the sale of assets, which were recorded in other expense/income.

  (e)

Reflects the tax effect of the preceding adjustments to earnings and reflects an overall estimated annual effective tax rate of approximately 26% for the quarter ended March 31, 2018 (April 1, 2017 – 30%) on adjusted earnings before tax.


SUNOPTA INC. 33 March 31, 2018 10-Q



  (f)

Reflects facility closure costs of $0.4 million recorded in cost of goods sold; consulting fees, temporary labor, employee recruitment and retention costs of $11.4 million recorded in SG&A expenses; and asset impairment and employee termination costs of $5.5 million recorded in other expense (as described above under “Value Creation Plan”).

     
  (g)

Reflects costs related to the recall of certain sunflower kernel products initiated in the second quarter of 2016, including a $0.7 million adjustment for the estimated lost gross profit caused by the sunflower recall, which reflected a shortfall in revenues in the first quarter of 2017 against first quarter 2016 volumes of approximately $3.3 million, less associated cost of goods sold of approximately $2.6 million; and $0.3 million of direct costs recorded in other expense that are not eligible for reimbursement under our insurance policies.

We believe that investors’ understanding of our financial performance is enhanced by disclosing the specific items that we exclude to compute adjusted earnings/loss. However, adjusted earnings/loss is not, and should not be viewed as, a substitute for earnings prepared under U.S. GAAP. Adjusted earnings/loss is presented solely to allow investors to more fully understand how we assess our financial performance.

(3)

We use a measure of adjusted EBITDA when assessing the performance of our operations, which we believe are useful to investors’ understanding of our operating profitability by excluding non-operating expenses, such as interest and income taxes, and non-cash expenses, such as depreciation, amortization, stock-based compensation and asset impairment charges, as well as other unusual items that affect the comparability of operating performance. We also use these measures to review and assess our progress under the Value Creation Plan, and to assess operating performance in connection with our employee incentive programs. In addition, we are subject to certain debt covenants that restrict our ability to incur additional indebtedness unless we meet certain ratios based on pre-established measures of EBITDA. We define adjusted EBITDA as segment operating income/loss plus depreciation, amortization and non-cash stock-based compensation, and excluding other unusual items as identified in the determination of adjusted earnings (refer above to footnote (2)). The following table presents a reconciliation of segment operating income/loss and adjusted EBITDA from net loss, which we consider to be the most directly comparable U.S. GAAP financial measure. In addition, as described above under footnote (2), we have prepared this table in a columnar format to present the effect of flexible resealable pouch and nutrition bar operations on our consolidated results for the current and comparative periods. We believe this presentation assists investors in assessing the results of the operations we have exited and the effect of those operations on our financial performance.


      Excluding flexible     Flexible        
      resealable pouch     resealable pouch        
      and nutrition bar     and nutrition bar     Consolidated  
  For the quarter ended   $    
  March 31, 2018                  
  Net loss   (3,478 )   (984 )   (4,462 )
  Recovery of income taxes   (1,347 )   (346 )   (1,693 )
  Interest expense, net   8,220     -     8,220  
  Other expense (income), net   (1,613 )   1,211     (402 )
  Total segment operating income (loss)   1,782     (119 )   1,663  
       Depreciation and amortization   8,141     -     8,141  
       Stock-based compensation   2,171     -     2,171  
       Costs related to Value Creation Plan(a)   413     -     413  
  Adjusted EBITDA   12,507     (119 )   12,388  
                     
  April 1, 2017                  
  Net loss   (9,970 )   (1,214 )   (11,184 )
  Recovery of income taxes   (4,194 )   (775 )   (4,969 )
  Interest expense, net   7,754     -     7,754  
  Other expense, net   5,443     -     5,443  
  Total segment operating loss   (967 )   (1,989 )   (2,956 )
       Depreciation and amortization   7,955     225     8,180  
       Stock-based compensation(b)   1,128     -     1,128  
       Costs related to Value Creation Plan(a)   11,810     -     11,810  
       Product withdrawal and recall costs(c)   729     -     729  
  Adjusted EBITDA   20,655     (1,764 )   18,891  

  (a)

For the first quarter of 2018, reflects the write-down of remaining flexible resealable pouch and nutrition bar inventories of $0.1 million recorded in cost of goods sold; and consulting fees, and employee recruitment and relocation costs of $0.3 million recorded in SG&A expenses. For the first quarter of 2017, reflects facility closure costs of $0.4 million recorded in cost of goods sold; and consulting fees, temporary labor, employee recruitment and retention costs of $11.4 million recorded in SG&A expenses.

     
  (b)

For the first quarter of 2017, stock-based compensation of $1.1 million was recorded in SG&A expenses. The reversal of $0.3 million of previously recognized stock-based compensation, related to forfeited awards of employees that were terminated in connection with the Value Creation Plan, was recognized in other expense.

     
  (c)

Reflects the estimated lost gross profit caused by the recall of certain sunflower kernel products of $0.7 million, which reflected the shortfall in revenues in the first quarter of 2017 against first quarter 2016 volumes of approximately $3.3 million, less associated cost of goods sold of approximately $2.6 million.

Although we use adjusted EBITDA as a measure to assess the performance of our business and for the other purposes set forth above, this measure has limitations as analytic tools, and should not be considered in isolation, or as a substitute for an analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

     • adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest payments on our indebtedness;

SUNOPTA INC. 34 March 31, 2018 10-Q



   

adjusted EBITDA does not include the recovery/payment of taxes, which is a necessary element of our operations;

     

   

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; and

     

   

adjusted EBITDA does not include non-cash stock-based compensation, which is an important component of our total compensation program for employees and directors.

Because of these limitations, adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing adjusted EBITDA in isolation, and specifically by using other U.S. GAAP and non-GAAP measures, such as revenues, gross profit, segment operating income, earnings and adjusted earnings to measure our operating performance. Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered as an alternative to our results of operations or cash flows from operations determined in accordance with U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to the calculation of a similarly titled measure reported by other companies.

(4)

In order to evaluate our results of operations, we use certain non-GAAP measures that we believe enhance an investor’s ability to derive meaningful period-over-period comparisons and trends from our results of operations. In particular, we evaluate our revenues on a basis that excludes the effects of fluctuations in commodity pricing and foreign exchange rates. In addition, we exclude specific items from our reported results that due to their nature or size, we do not expect to occur as part of our normal business on a regular basis. These items are identified above under footnote (2), and in the discussion of our results of operations below. These non-GAAP measures are presented solely to allow investors to more fully assess our results of operations and should not considered in isolation of, or as substitutes for an analysis of our results as reported under U.S. GAAP.

Revenues for the quarter ended March 31, 2018 decreased by 5.3% to $312.7 million from $330.0 million for the quarter ended April 1, 2017. Excluding the impact on revenues of sales of flexible resealable pouch and nutrition bar products (a decrease in revenues of $12.7 million), changes in commodity-related pricing (a decrease in revenues of $7.2 million) and foreign exchange rates (an increase in revenues of $7.7 million), revenues decreased by 1.6% in the first quarter of 2018, compared with the first quarter of 2017. The decrease in revenues on an adjusted basis reflected lower sales of frozen fruit and fruit ingredient products due to lower consumer demand, reduced distribution to certain retail customers, and timing of deliveries to a significant foodservice customer. This decrease was mostly offset by increased demand for organic ingredients and higher volumes of beverage and fruit snack products.

Gross profit decreased $5.0 million, or 13.0%, to $33.7 million for the quarter ended March 31, 2018, compared with $38.7 million for the quarter ended April 1, 2017. As a percentage of revenues, gross profit for the quarter ended March 31, 2018 was 10.8% compared to 11.7% for the quarter ended April 1, 2017, a decrease of 0.9%. The gross profit percentage for the first quarter of 2018 would have been approximately 11.7% excluding the write-down of remaining flexible resealable pouch and nutrition bar inventories ($0.1 million), as well as losses of approximately $2.8 million on commodity futures contracts used to hedge our organic cocoa position, which reflected a steep rise in the market price for cocoa in the first quarter of 2018. We expect to recover these losses through improved forward margins on cocoa as we sell through the current cocoa position, which grew during the first quarter of 2018 due to the expansion of our Dutch cocoa facility. The gross profit percentage for the first quarter of 2017 would have been approximately 11.9%, excluding the impact of the lost margin caused by the recall of sunflower kernel products initiated in the second quarter of 2016 ($0.7 million) and facility closure costs under the Value Creation Plan ($0.4 million). The decrease in the gross profit percentage on an adjusted basis reflected lower plant utilization in the healthy fruit platform due to declines in sales volumes, an unfavorable shift in sales mix towards lower margin product offerings, and significant costs in manufacturing related to yield losses, excess labor and handling, storage costs, and outbound freight. These factors were partially offset by improved margins in the healthy beverage and snacks platforms, reflecting favorable plant utilization due to higher production volumes to meet sales demand, as well as productivity-driven cost savings. In addition, we gained operational savings following the discontinuance of flexible resealable pouch and nutrition bar production in the fourth quarter of 2017.

Total segment operating income for the quarter ended March 31, 2018 increased by $4.6 million, or 156.3%, to $1.7 million, compared with a total segment operating loss of $3.0 million for the quarter ended April 1, 2017. The increase in segment operating income reflected a $10.0 million decrease in SG&A expenses that more than offset the lower overall gross profit as described above. The decrease in SG&A expenses mainly reflected a quarter-over-quarter reduction in consulting fees and temporary labor costs ($9.6 million), and employee recruitment, relocation and retention costs ($1.5 million) associated with the Value Creation Plan. Excluding these items, as well as those items identified above affecting gross profit, segment operating income as a percentage of revenues on an adjusted basis would have been 1.6% for the first quarter of 2018, compared with 2.9% for the first quarter of 2017, which reflected the lower quarter-over-quarter gross profit and higher employee compensation-related costs. In addition, segment operating income/loss included a foreign exchange loss of $1.0 million in the first quarter of 2018, compared with a loss of $0.6 million in the first quarter of 2017, which mainly reflected the impact on our international organic ingredient operations of a weakening of the U.S. dollar relative to the euro.

SUNOPTA INC. 35 March 31, 2018 10-Q


Further details on revenue, gross profit and segment operating income/loss variances are provided below under “Segmented Operations Information”.

Other income for the quarter ended March 31, 2018 of $0.4 million mainly reflected a $2.5 million reduction to the remaining contingent consideration obligation that arose from our acquisition of Citrusource in 2015, which was mostly offset by facility lease and asset impairment charges related to our nutrition bar and roasted snack operations ($1.6 million) and employee termination costs ($0.2 million) associated with the Value Creation Plan. Other expense for the quarter ended April 1, 2017 of $5.4 million reflected the impairment of long-lived assets related to the closure of our San Bernardino, California, juice facility ($3.7 million) and employee termination costs ($1.8 million) associated with the Value Creation Plan.

Interest expense increased by $0.5 million to $8.2 million for the quarter ended March 31, 2018, compared with $7.8 million for the quarter ended April 1, 2017. Interest expense included the amortization debt issuance costs of $0.6 million in each of the first quarters of 2018 and 2017. The quarter-over-quarter increase in interest expense primarily reflected higher borrowings under our line of credit facilities to settle costs incurred under the Value Creation Plan during 2017.

We recognized a recovery of income tax of $1.7 million for the quarter ended March 31, 2018, compared with $5.0 million for the quarter ended April 1, 2017. The effective tax rate was 27.5% for the first quarter of 2018, compared with 30.8% for the first quarter of 2017, which reflected the impact of the reduction in the U.S. federal corporate tax rate from 35% to 21% beginning in 2018.

On a consolidated basis, we realized a loss attributable to common shareholders of $6.3 million (diluted loss per share of $0.07) for the quarter ended March 31, 2018, compared with a loss attributable to common shareholders of $13.3 million (diluted loss per share of $0.16) for the quarter ended April 1, 2017.

For the quarter ended March 31, 2018, adjusted loss was $6.4 million, or $0.07 per diluted share, on a consolidated basis, compared with adjusted loss of $0.9 million, or $0.01 per diluted share, on a consolidated basis for the quarter ended April 1, 2017. Excluding flexible resealable pouch and nutrition bar product lines and operations, adjusted loss was $6.3 million, or $0.07 per diluted share, for the quarter ended March 31, 2018, compared with adjusted earnings of $0.3 million, or $0.00 per diluted share, for the quarter ended April 1, 2017. Adjusted EBITDA for the quarter ended March 31, 2018 was $12.4 million on a consolidated basis, compared with $18.9 million on a consolidated basis for the quarter ended April 1, 2017. Excluding flexible resealable pouch and nutrition bar product lines and operations, adjusted EBITDA for the quarter ended March 31, 2018 was $12.5 million, compared with $20.7 million for the quarter ended April 1, 2017. Adjusted earnings and adjusted EBITDA are non-GAAP financial measures. See footnotes (2) and (3) to the table above for a reconciliation of adjusted earnings/loss and adjusted EBITDA from net loss, which we consider to be the most directly comparable U.S. GAAP financial measure.

Segmented Operations Information

Global Ingredients                        
For the quarter ended   March 31, 2018     April 1, 2017     Change     % Change  
                         
Revenues $  136,331   $  126,642   $  9,689     7.7%  
Gross Profit   14,635     15,096     (461 )   -3.1%  
Gross Profit %   10.7%     11.9%           -1.2%  
                         
Operating Income $  3,102   $  4,201   $  (1,099 )   -26.2%  
Operating Income %   2.3%     3.3%           -1.0%  

Global Ingredients contributed $136.3 million in revenues for the quarter ended March 31, 2018, compared to $126.6 million for the quarter ended April 1, 2017, an increase of $9.7 million, or 7.7% . Excluding the impact on revenues of changes including foreign exchange rates and commodity-related pricing (an increase in revenues of $4.5 million), Global Ingredients revenues increased approximately 4.1% . The table below explains the increase in revenue:

SUNOPTA INC. 36 March 31, 2018 10-Q



Global Ingredients Revenue Changes  
Revenues for the quarter ended April 1, 2017 $126,642

Increased volumes of internationally-sourced organic ingredients including animal feed, oils, grains and cocoa, offset by decreased volumes of seeds, fruits and vegetables

12,927

Favorable foreign exchange impact on euro-denominated sales due to a weaker U.S. dollar period-over-period

7,703

Decreased volumes of domestically-sourced specialty soy, sunflower and milled corn, partially offset by higher feed volumes

(7,761)

Decreased commodity pricing for internationally-sourced organic ingredients

(3,004)

Decreased commodity pricing for domestically-sourced sunflower, partially offset by higher pricing for corn and feed

(176)
Revenues for the quarter ended March 31, 2018 $136,331

Gross profit in Global Ingredients decreased by $0.5 million to $14.6 million for the quarter ended March 31, 2018 compared to $15.1 million for the quarter ended April 1, 2017, and the gross profit percentage decreased by 1.2% to 10.7% . The decrease in gross profit as a percentage of revenue was primarily attributable to an unfavorable cocoa commodity hedging result, due to a steep rise in the price of cocoa in the first quarter of 2018, and reduced operating efficiencies within our sunflower operations due to lower production volumes, largely offset by an improved pricing spread on certain organic ingredients. The table below explains the decrease in gross profit:

Global Ingredients Gross Profit Changes  
Gross profit for the quarter ended April 1, 2017 $15,096

Unfavorable cocoa commodity hedging result and start-up costs related to the expansion of our Dutch cocoa facility, partially offset by higher sales volumes of organic cocoa

(2,008)

Lower volumes and pricing for sunflower, partially offset by favorable pricing spread on domestically-sourced organic feed

(755)

Higher volumes and pricing for certain internationally-sourced organic ingredients, as well as a favorable foreign exchange impact on euro-denominated gross profit

2,302
Gross profit for the quarter ended March 31, 2018 $14,635

Operating income in Global Ingredients decreased by $1.1 million, or 26.2%, to $3.1 million for the quarter ended March 31, 2018, compared to $4.2 million for the quarter ended April 1, 2017. The table below explains the decrease in operating income:

Global Ingredients Operating Income Changes  
Operating income for the quarter ended April 1, 2017 $4,201

Decrease in gross profit, as explained above

(461)

Increase in foreign exchange losses primarily related to forward currency contracts

(767)

Higher employee-related compensation costs and an unfavorable foreign exchange impact on euro-denominated SG&A expenses

(237)

Decrease in corporate cost allocations

366
Operating income for the quarter ended March 31, 2018 $3,102

SUNOPTA INC. 37 March 31, 2018 10-Q


Looking forward, we believe Global Ingredients is well positioned in the growing organic food and non-GMO categories. We intend to focus our efforts on (i) growing our organic sourcing and supply capabilities, making certified organic ingredients a larger proportion of our overall sales; (ii) making strategic investments in key product categories that drive higher volume ingredient solutions for our customers; and (iii) leveraging our international sourcing and supply capabilities internally, and forward and backward integrating where opportunities exist. The statements in this paragraph are forward-looking statements. See “Forward-Looking Statements” above. Increased supply pressure in the commodity-based markets in which we operate, increased competition, volume decreases or loss of customers, unexpected delays in our ingredient expansion plans, or our inability to secure quality inputs or achieve our product mix or cost reduction goals, along with the other factors described above under “Forward-Looking Statements”, could adversely impact our ability to meet these forward-looking expectations.

Consumer Products                        
For the quarter ended   March 31, 2018     April 1, 2017     Change     % Change  
                         
Revenues $  176,321   $  203,389   $  (27,068 )   -13.3%  
Gross Profit   19,049     23,603     (4,554 )   -19.3%  
Gross Profit %   10.8%     11.6%           -0.8%  
                         
Operating Income $  3,316   $  6,498   $  (3,182 )   -49.0%  
Operating Income %   1.9%     3.2%           -1.3%  

Consumer Products contributed $176.3 million in revenues for the quarter ended March 31, 2018, compared to $203.4 million for the quarter ended April 1, 2017, a $27.1 million, or 13.3% decrease. Excluding the impact on revenues of sales of flexible resealable pouch and nutrition bar products (a decrease in revenues of $12.7 million) and changes in raw fruit commodity-related pricing (a decrease in revenues of $4.1 million), Consumer Products revenues decreased approximately 5.5% . The table below explains the decrease in revenues:

Consumer Products Revenue Changes  
Revenues for the quarter ended April 1, 2017 $203,389

Lower volumes of frozen fruit and fruit ingredients due to declines in consumer consumption trends, lower distribution to certain customers, and the timing of deliveries to a significant foodservice customer

(20,859)

Impact of the exit from flexible resealable pouch and nutrition bars product lines

(12,743)

Higher volumes of non-dairy aseptic beverage products into the foodservice and retail channels, as well as strong sales of premium juice products

4,008

Higher volumes of fruit snack products

2,526
Revenues for the quarter ended March 31, 2018 $176,321

Gross profit in Consumer Products decreased by $4.6 million to $19.0 million for the quarter ended March 31, 2018 compared to $23.6 million for the quarter ended April 1, 2017, and the gross profit percentage decreased by 0.8% to 10.8% . For the quarter ended March 31, 2018, gross profit as a percentage of revenue was impacted by the write-down of remaining flexible resealable pouch and nutrition bar inventories ($0.1 million). For the quarter ended April 1, 2017, gross profit as a percentage of revenue was impacted by facility closure costs associated with the Value Creation Plan ($0.4 million). Excluding these costs, the gross profit percentage in Consumer Products would have been 10.9% for the quarter ended March 31, 2018, compared with 11.8% for the quarter ended April 1, 2017. The decrease in gross profit percentage reflected lower plant utilization within the healthy fruit platform due to declines in sales volumes, an unfavorable shift in sales mix towards lower margin product offerings, and significant costs in manufacturing related to yield losses, excess labor and handling, storage costs, and outbound freight. These factors were partially offset by increased productivity and improved plant utilization in the healthy beverage and snacks platforms due to higher sales demand, as well as operational savings following the discontinuance of flexible resealable pouch and nutrition bar production in the fourth quarter of 2017. The table below explains the decrease in gross profit:

SUNOPTA INC. 38 March 31, 2018 10-Q



Consumer Products Gross Profit Changes  
Gross profit for the quarter ended April 1, 2017 $23,603

Lower sales volumes of frozen fruit and fruit ingredients, as well as an unfavorable shift in sales mix towards lower margin product offerings, and significant costs in manufacturing related to yield losses, excess labor and handling, storage costs, and outbound freight

(10,853)

Higher sales volumes and plant utilization for aseptic beverage and fruit snack products, partially offset by higher processing and supply chain costs for premium juice products

4,679

Operational savings following the discontinuance of flexible resealable pouch and nutrition bar production in the fourth quarter of 2017

1,620
Gross profit for the quarter ended March 31, 2018 $19,049

Operating income in Consumer Products decreased by $3.2 million, or 49.0%, to $3.3 million for the quarter ended March 31, 2018, compared to $6.5 million for the quarter ended April 1, 2017. The table below explains the decrease in operating income:

Consumer Products Operating Income Changes  
Operating income for the quarter ended April 1, 2017 $6,498

Decrease in gross profit, as explained above

(4,554)

Higher employee-related compensation costs, partially offset by favorable foreign exchange on international operations

  (487)

Decrease in corporate cost allocations

1,859
Operating income for the quarter ended March 31, 2018 $3,316

Looking forward we believe Consumer Products remains well-positioned in markets with long-term growth potential. However, a continued decline in consumer consumption of frozen fruit could adversely affect the near-term performance of the Consumer Products. We intend to focus our efforts on (i) leveraging our new sales and marketing resources to create greater channel specific focus on retail and foodservice to bolster our pipeline of opportunities to diversify our portfolio and drive incremental sales volume; (ii) continuing to invest in our facilities to enhance quality, safety, and manufacturing efficiency to drive both incremental sales and cost reduction; (iii) executing procurement and supply chain cost reduction initiatives focused on leveraging our buying power and creating increased network efficiency in our planning and logistics efforts; and (iv) leveraging our innovation capabilities to bring new value-added packaged products and processes to market and to increase our capacity utilization across Consumer Products. The statements in this paragraph are forward-looking statements. See “Forward-Looking Statements” above. Unfavorable shifts in consumer preferences, increased competition, availability of raw material supply, volume decreases or loss of customers, unexpected delays in our expansion and integration plans, inefficiencies in our manufacturing processes, lack of consumer product acceptance, or our inability to successfully implement the particular goals and strategies indicated above, along with the other factors described above under “Forward-Looking Statements”, could have an adverse impact on these forward-looking expectations.

Corporate Services                        
For the quarter ended   March 31, 2018     April 1, 2017     Change     % Change  
                         
Operating Loss $  (4,755 ) $  (13,655 ) $  8,900     65.2%  

Operating loss at Corporate Services decreased by $8.9 million to $4.8 million for the quarter ended March 31, 2018, from a loss of $13.7 million for the quarter ended April 1, 2017. The table below explains the decrease in operating loss:

SUNOPTA INC. 39 March 31, 2018 10-Q



Corporate Services Operating Loss Changes  
Operating loss for the quarter ended April 1, 2017 $(13,655)

Lower non-structural third-party consulting costs and employee recruitment, relocation and retention costs associated with the Value Creation Plan

11,125

Lower professional fees and other non-compensation costs

979

Unfavorable foreign exchange impact on foreign currency transactions

64

Decrease in corporate cost allocations to SunOpta operating segments

(2,225)

Increased stock-based compensation costs as a result of a change in our long-term incentive plan in the second quarter of 2017

(1,043)
Operating loss for the quarter ended March 31, 2018 $(4,755)

Corporate cost allocations mainly consist of salaries of corporate personnel who directly support the operating segments, as well as costs related to the enterprise resource management system. These expenses are allocated to the operating segments based on (1) specific identification of allocable costs that represent a service provided to each segment and (2) a proportionate distribution of costs based on a weighting of factors such as revenue contribution and number of people employed within each segment.

Liquidity and Capital Resources

We have the following sources from which we can fund our operating cash requirements:

  Existing cash and cash equivalents;
     
  Available operating lines of credit;
     
  Cash flows generated from operating activities, including working capital efficiency efforts;
     
  Cash flows generated from the exercise, if any, of stock options during the year;
     
  Potential additional long-term financing, including the offer and sale of debt and/or equity securities; and
     
  Potential sales of non-core divisions, or assets.

On February 11, 2016, we entered a five-year credit agreement for a senior secured asset-based revolving credit facility in the maximum aggregate principal amount of $350 million, subject to borrowing base capacity (the “Global Credit Facility”). The Global Credit Facility supports the working capital and general corporate needs of our global operations, in addition to funding strategic initiatives. In addition, subject to customary borrowing conditions and the agreement of any such lenders to provide such increased commitments, we may request to increase the total lending commitments under this facility to a maximum aggregate principal amount not to exceed $450 million. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set quarterly based on average borrowing availability for the preceding fiscal quarter.

On September 19, 2017, we entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility (the “New U.S. Subfacility”), which provided for borrowings in an aggregate principal amount of $15.0 million. The principal amount of New U.S. Subfacility is repayable in quarterly instalments of $2.5 million, commencing with the fiscal quarter ending March 31, 2019. Borrowings repaid under the New U.S. Subfacility may not be borrowed again. The applicable margin for the New U.S. Subfacility ranges from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings.

As at March 31, 2018, we had outstanding borrowings of $233.6 million and approximately $60 million of available borrowing capacity under the Global Credit Facility. For more information on the Global Credit Facility, see note 6(1) to the unaudited consolidated financial statements included in this report.

SUNOPTA INC. 40 March 31, 2018 10-Q


On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due October 9, 2022 (the “Notes”). As at March 31, 2018, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. For more information on the Notes, see note 6(2) to the unaudited consolidated financial statements included in this report.

In order to finance significant acquisitions, if any, that may arise in the future, we may need additional sources of cash that we could attempt to obtain through a combination of additional bank or subordinated financing, a private or public offering of debt or equity securities, or the issuance of common stock as consideration in an acquisition. There can be no assurance that these types of financing would be available at all or, if so, on terms that are acceptable to us.

In the event that we require additional liquidity due to market conditions, unexpected actions by our lenders, changes to our growth strategy, or other factors, our ability to obtain any additional financing on favorable terms, if at all, could be limited.

Cash Flows

Net cash and cash equivalents decreased $0.3 million in the first quarter of 2018 to $2.9 million as at March 31, 2018, compared with $3.2 million at December 30, 2017.

Cash provided by operating activities was $7.5 million in the first quarter of 2018, compared with $19.5 million in the first quarter of 2017, a decrease of $12.0 million. This decrease reflected the immediate cash benefit generated from working capital efficiency initiatives implemented under the Value Creation Plan in the first quarter of 2017. As a result of these initiatives, we have maintained a more optimal working capital position through the first quarter of 2018.

Cash used in investing activities was $6.0 million in the first quarter of 2018, compared with $8.7 million in the first quarter of 2017, a decrease of $2.7 million. This decrease reflected higher capital expenditures in the first quarter of 2017, including the early buy-out of equipment leases associated with the closure of the San Bernardino juice facility, and the receipt in the first quarter of 2018 of the remaining proceeds related to the disposal of nutrition bar equipment. Capital expenditures of $6.7 million in the first quarter of 2018 included the expansion of our aseptic beverage and roasted snack processing capabilities, and the implementation of an enterprise resource planning system at our Mexican frozen fruit facility.

Cash used in financing activities was $1.8 million in the first quarter of 2018, compared with $8.6 million in the first quarter of 2017, a decrease of $6.8 million. This decrease mainly reflected repayments made under our line of credit facilities in the first quarter of 2017, with cash generated from working capital efficiencies.

Off-Balance Sheet Arrangements

There are currently no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition.

Contractual Obligations

There have been no material changes outside the normal course of business in our contractual obligations since December 30, 2017.

Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, related revenues and expenses, and disclosure of gain and loss contingencies at the date of the financial statements. The estimates and assumptions made require us to exercise our judgment and are based on historical experience and various other factors that we believe to be reasonable under the circumstances. We continually evaluate the information that forms the basis of our estimates and assumptions as our business and the business environment generally changes.

There have been no material changes to the critical accounting estimates disclosed under the heading “Critical Accounting Estimates” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, of the Form 10-K. For a discussion of new accounting standards, see note 1 to the unaudited consolidated financial statements included in this report.

SUNOPTA INC. 41 March 31, 2018 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures about market risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk”, of the Form 10-K. There have been no material changes to our exposures to market risks since December 30, 2017.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management has established disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within time periods specified in the Securities and Exchange Commission’s rules and forms. Such disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to its management to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we conducted an evaluation of our disclosure controls and procedures (as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act) as of the end of the period covered by this quarterly report. Based on this evaluation, our CEO and our CFO concluded that our disclosure controls and procedures were effective as of March 31, 2018.

Changes in Internal Control Over Financial Reporting

Our management, with the participation of our CEO and CFO, has evaluated whether any change in our internal control over financial reporting (as such term is defined under Rule 13a-15(f) promulgated under the Exchange Act) occurred during the quarter ended March 31, 2018. Based on that evaluation, management concluded that there were no changes in our internal control over financial reporting during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

SUNOPTA INC. 42 March 31, 2018 10-Q


PART II - OTHER INFORMATION

Item 1. Legal Proceedings

For a discussion of legal proceedings, see note 12 to the unaudited consolidated financial statements included under Part I, Item 1 of this report.

Item 1A. Risk Factors

Certain risks associated with our operations are discussed in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 30, 2017. There have been no material changes to the previously-reported risk factors as of the date of this quarterly report. Our previously reported risk factors should be carefully reviewed in connection with an evaluation of our Company.

Item 6. Exhibits

The following exhibits are included as part of this report.

10.1† Letter Agreement, dated March 28, 2018, between Robert McKeracher and SunOpta Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 30, 2018).
   
31.1* Certification by David Colo, President and Chief Executive Officer, pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934, as amended.
   
31.2* Certification by Robert McKeracher, Vice President and Chief Financial Officer, pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934, as amended.
   
32* Certifications by David Colo, President and Chief Executive Officer, and Robert McKeracher,   Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350.
   
101.INS* XBRL Instance Document
   
101.SCH* XBRL Taxonomy Extension Schema Document
   
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document
   
101.DEF* XBRL Taxonomy Extension Definition Linkbase Document
   
101.LAB* XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document
   
Indicates management contract or compensatory plan or arrangement.
   
* Filed herewith.

SUNOPTA INC. 43 March 31, 2018 10-Q


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  SUNOPTA INC.
   
Date: May 9, 2018 /s/ Robert McKeracher
  Robert McKeracher
  Vice President and Chief Financial Officer
  (Authorized Signatory and Principal Financial Officer)

SUNOPTA INC. 44 March 31, 2018 10-Q


EX-31.1 2 exhibit31-1.htm EXHIBIT 31.1 SunOpta Inc.: Exhibit 31.1 - Filed by newsfilecorp.com

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO RULE 13a-14(a)
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Colo, certify that:

(1)

I have reviewed this quarterly report on Form 10-Q of SunOpta Inc. for the quarter ended March 31, 2018;

   
(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   
(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   
(4)

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:


  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     
  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     
  c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     
  d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


(5)

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     
  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ David Colo

David Colo
President and Chief Executive Officer
SunOpta Inc.
Date: May 9, 2018


EX-31.2 3 exhibit31-2.htm EXHIBIT 31.2 SunOpta Inc.: Exhibit 31.2 - Filed by newsfilecorp.com

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO RULE 13a-14(a)
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert McKeracher, certify that:

(1)

I have reviewed this quarterly report on Form 10-Q of SunOpta Inc. for the quarter ended March 31, 2018;

   
(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   
(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   
(4)

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:


  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     
  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     
  c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     
  d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


(5)

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     
  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Robert McKeracher

Robert McKeracher
Vice President and Chief Financial Officer
SunOpta Inc.
Date: May 9, 2018



EX-32 4 exhibit32.htm EXHIBIT 32 SunOpta Inc.: Exhibit 32 - Filed by newsfilecorp.com

Exhibit 32

CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of SunOpta Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2018 as filed with the Securities and Exchange Commission (the “Report”), I, David Colo, President and Chief Executive Officer of the Company, and I, Robert McKeracher, Vice President and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, that to our knowledge:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

   
2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date: May 9, 2018

/s/ David Colo
David Colo
President and Chief Executive Officer
SunOpta Inc.

/s/ Robert McKeracher

Robert McKeracher
Vice President and Chief Financial Officer
SunOpta Inc.

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and should not be deemed to be filed under the Exchange Act by the Company or the certifying officer.


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-110000 0 74191000 10738000 7855000 9937000 262527000 9975000 92489000 false 2018 SunOpta Inc. --12-29 0 2171000 0 0 0 2171000 60000 540000 -527000 0 0 0 <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The interim consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated under the Securities Exchange Act of 1934</font><font style='font-family:Times New Roman;font-size:10pt;' >, as amended, and in </font><font style='font-family:Times New Roman;font-size:10pt;' >accordance with accounting principles generally accepted in the United States of America (&#8220;U.S. GAAP&#8221;) for interim financial information. Accordingly, these condensed interim consolidated financial statements do not include all of the</font><font style='font-family:Times New Roman;font-size:10pt;' > disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included and all such adjustments are of a normal, recurring nature. Operating results </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > are not necessarily indicative of the results that may be expected for the full </font><font style='font-family:Times New Roman;font-size:10pt;' >fiscal </font><font style='font-family:Times New Roman;font-size:10pt;' >year ending </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 29, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > or for any other period. </font><font style='font-family:Times New Roman;font-size:10pt;' >The interim consolidated financial statements include the accounts of the Comp</font><font style='font-family:Times New Roman;font-size:10pt;' >any and its subsidiaries, and have been prepared on a basis consistent with the annual consolidated financial statements for the year ended </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, except as described below under &#8220;Recent Accounting </font><font style='font-family:Times New Roman;font-size:10pt;' >Pronouncements </font><font style='font-family:Times New Roman;font-size:10pt;' >&#8211;</font><font style='font-family:Times New Roman;font-size:10pt;' > Adoption of New Accounting Stan</font><font style='font-family:Times New Roman;font-size:10pt;' >dards</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221;</font><font style='font-family:Times New Roman;font-size:10pt;' >. For further information, refer to the consolidated financial statements, and notes thereto, included in the Company&#8217;s Annual Report on Form 10-K for the fiscal year ended </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p></div> 257407000 -2299000 21000 -2320000 -9344000 518000 -9862000 13000 0 852000 0 0 0 852000 2061000 -1061000 0 0 0 1000000 402000 8220000 -6155000 1336000 120000 0 0 0 0 0 0 605000 -7000 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >4</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Derivative Financial Instruments and Fair Value Measurements</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of </font><font style='font-family:Times New Roman;font-size:10pt;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td 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style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value</font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >asset (liability)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 1</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 2</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 3</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures and forward contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >202</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >202</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >45</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >45</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,266)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(56)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,210)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories carried at market</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,368</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,368</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward foreign currency contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Not designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(710)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(710)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >575</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >575</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Contingent consideration</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Embedded derivative</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td></tr><tr style='height:15.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:285pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:285pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:1;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value</font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >asset (liability)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 1</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 2</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 3</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures and forward contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >738</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >738</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(240)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(35)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(205)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories carried at market</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,838</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,838</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward foreign currency contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Not designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,060)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,060)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(435)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(435)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Contingent consideration</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Embedded derivative</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(</font><font style='font-family:Times New Roman;font-size:10pt;' >1</font><font style='font-family:Times New Roman;font-size:10pt;' >)</font><font style='font-family:Times New Roman;font-size:10pt;' > Commodity futures and forward contracts</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Represents </font><font style='font-family:Times New Roman;font-size:10pt;' >exchange-traded commodity futures and forward commodity purchase and sale contracts. Exchange-traded futures are </font><font style='font-family:Times New Roman;font-size:10pt;' >fair </font><font style='font-family:Times New Roman;font-size:10pt;' >valued based on unadjusted quotes for identical assets priced in active</font><font style='font-family:Times New Roman;font-size:10pt;' > markets and are classified as level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Local market adjustments use observable inputs or market transact</font><font style='font-family:Times New Roman;font-size:10pt;' >ions for similar assets or liabilities, and, as a result, are classified as level 2. Based on historical experience with the Company&#8217;s suppliers and customers, the Company&#8217;s own credit risk, and the Company&#8217;s knowledge of current market conditions, the Co</font><font style='font-family:Times New Roman;font-size:10pt;' >mpany does not view non-performance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >These exchange-traded commodity futures and forward commodity purchase and sale contracts are used as</font><font style='font-family:Times New Roman;font-size:10pt;' > part of the Company&#8217;s risk management strategy, and represent economic hedges to limit risk related to fluctuations in the price of certain commodity grains, as well as the prices of cocoa and coffee. These </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts</font><font style='font-family:Times New Roman;font-size:10pt;' > are not designated as hedges for acco</font><font style='font-family:Times New Roman;font-size:10pt;' >unting purposes. Gains and losses on changes in fair value of these </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts</font><font style='font-family:Times New Roman;font-size:10pt;' > are included in cost of goods sold on the consolidated statement of operations</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company recognized a </font><font style='font-family:Times New Roman;font-size:10pt;' >loss of $1.5</font><font style='font-family:Times New Roman;font-size:10pt;' > million</font><font style='font-family:Times New Roman;font-size:10pt;' > (</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' > &#8211; </font><font style='font-family:Times New Roman;font-size:10pt;' >loss</font><font style='font-family:Times New Roman;font-size:10pt;' > of $0.</font><font style='font-family:Times New Roman;font-size:10pt;' >0</font><font style='font-family:Times New Roman;font-size:10pt;' > million)</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >related to chan</font><font style='font-family:Times New Roman;font-size:10pt;' >ges in the fair value of these contracts</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Unrealized gains </font><font style='font-family:Times New Roman;font-size:10pt;' >on</font><font style='font-family:Times New Roman;font-size:10pt;' > short-term </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts </font><font style='font-family:Times New Roman;font-size:10pt;' >are</font><font style='font-family:Times New Roman;font-size:10pt;' > included</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >in </font><font style='font-family:Times New Roman;font-size:10pt;' >other current assets</font><font style='font-family:Times New Roman;font-size:10pt;' >;</font><font style='font-family:Times New Roman;font-size:10pt;' > and unrealized losses </font><font style='font-family:Times New Roman;font-size:10pt;' >on</font><font style='font-family:Times New Roman;font-size:10pt;' > short-term </font><font style='font-family:Times New Roman;font-size:10pt;' >and long-term contracts </font><font style='font-family:Times New Roman;font-size:10pt;' >are</font><font style='font-family:Times New Roman;font-size:10pt;' > included in </font><font style='font-family:Times New Roman;font-size:10pt;' >other current </font><font style='font-family:Times New Roman;font-size:10pt;' >liabilities</font><font style='font-family:Times New Roman;font-size:10pt;' > and</font><font style='font-family:Times New Roman;font-size:10pt;' > long-term liabilities</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively,</font><font style='font-family:Times New Roman;font-size:10pt;' > on the consolidated balance sheets.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the notional amounts of open commodity futures and forward purchase and sale contracts were as follows (in thousands of bushels):</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:282.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:282.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:187.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:187.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Number of bushels purchased (sold)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:282.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:282.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corn</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Soybeans</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward commodity purchase contracts</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >799</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >393</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward commodity sale contracts</font></td><td style='width:93.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(326)</font></td><td style='width:93.75pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(899)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures contracts</font></td><td style='width:93.75pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(750)</font></td><td style='width:93.75pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >210</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >In addition, as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company had net open forward contracts to </font><font style='font-family:Times New Roman;font-size:10pt;' >sell 716 </font><font style='font-family:Times New Roman;font-size:10pt;' >lots</font><font style='font-family:Times New Roman;font-size:10pt;' > (</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' > &#8211; 299 lots sold)</font><font style='font-family:Times New Roman;font-size:10pt;' > of cocoa.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(</font><font style='font-family:Times New Roman;font-size:10pt;' >2</font><font style='font-family:Times New Roman;font-size:10pt;' >) Inventories carried at market</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The fair value of g</font><font style='font-family:Times New Roman;font-size:10pt;' >rain inventor</font><font style='font-family:Times New Roman;font-size:10pt;' >ies</font><font style='font-family:Times New Roman;font-size:10pt;' > carried at </font><font style='font-family:Times New Roman;font-size:10pt;' >market</font><font style='font-family:Times New Roman;font-size:10pt;' > is determined using quoted market prices from the Chicago Board of Trade (&#8220;CBoT&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' >, as adjusted</font><font style='font-family:Times New Roman;font-size:10pt;' > for differences in local markets, and broker or dealer quotes. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company had </font><font style='font-family:Times New Roman;font-size:10pt;' >235,992</font><font style='font-family:Times New Roman;font-size:10pt;' > bushels of commodity corn and </font><font style='font-family:Times New Roman;font-size:10pt;' >292,019</font><font style='font-family:Times New Roman;font-size:10pt;' > bushels of c</font><font style='font-family:Times New Roman;font-size:10pt;' >ommodity soybeans </font><font style='font-family:Times New Roman;font-size:10pt;' >included </font><font style='font-family:Times New Roman;font-size:10pt;' >in inventories carried at market.</font><font style='font-family:Times New Roman;font-size:10pt;' > The fair value of these inventories is</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >included</font><font style='font-family:Times New Roman;font-size:10pt;' > in level 2 of the fair value hierarchy, as there are observable quoted prices for similar assets in active markets. Gains and losses on </font><font style='font-family:Times New Roman;font-size:10pt;' >these inv</font><font style='font-family:Times New Roman;font-size:10pt;' >entories</font><font style='font-family:Times New Roman;font-size:10pt;' > are included in cost of goods sold on the consolidated statements of operations. </font><font style='font-family:Times New Roman;font-size:10pt;' > Inventories carried at market are included in inventories on the consolidated balance sheets.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(</font><font style='font-family:Times New Roman;font-size:10pt;' >3</font><font style='font-family:Times New Roman;font-size:10pt;' >) </font><font style='font-family:Times New Roman;font-size:10pt;' > Foreign forward currency contracts</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As part of its risk management strategy, the Company enters into forward foreign exchange contracts to reduce its exposure to fluctuations in foreign currency exchange rates. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >For any open forward foreign exchange contracts at period end, the contract rate is compared to the forward rate, and a gain or loss is recorded. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >These contracts are </font><font style='font-family:Times New Roman;font-size:10pt;' >included</font><font style='font-family:Times New Roman;font-size:10pt;' > in level 2 of the fair value hierarchy, as the inputs used in making the fair va</font><font style='font-family:Times New Roman;font-size:10pt;' >lue determination are derived from and are corroborated by observable market data. Certain of these forward foreign exchange contracts may be designated as cash flow hedges for accounting purposes, while other of these contracts represent economic hedges </font><font style='font-family:Times New Roman;font-size:10pt;' >that are not designated as hedging instru</font><font style='font-family:Times New Roman;font-size:10pt;' >ments. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >(i)</font><font style='font-family:Times New Roman;font-size:10pt;' > Not designated as hedging instruments</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >,</font><font style='font-family:Times New Roman;font-size:10pt;' > the Company had open forward foreign exchange contracts to sell euros to buy </font><font style='font-family:Times New Roman;font-size:10pt;' >U.S. </font><font style='font-family:Times New Roman;font-size:10pt;' >dollars with a notional value of &#8364;</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 12.8</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >million ($</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 15.2</font><font style='font-family:Times New Roman;font-size:10pt;' > million)</font><font style='font-family:Times New Roman;font-size:10pt;' >, and to sell British pounds to buy euros with a notional value of </font><font style='font-family:Times New Roman;font-size:10pt;' >&#163;</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 0.4</font><font style='font-family:Times New Roman;font-size:10pt;' > million (</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8364;</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 0.4</font><font style='font-family:Times New Roman;font-size:10pt;' > million)</font><font style='font-family:Times New Roman;font-size:10pt;' >. As these contracts were not designated as hedging instruments, gains and lo</font><font style='font-family:Times New Roman;font-size:10pt;' >sses on changes in the fair value of the</font><font style='font-family:Times New Roman;font-size:10pt;' >se</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts</font><font style='font-family:Times New Roman;font-size:10pt;' > are included in foreign exchange loss or gain on the consolidated statement of operations. </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company recognized a </font><font style='font-family:Times New Roman;font-size:10pt;' >gain</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >of $</font><font style='font-family:Times New Roman;font-size:10pt;' >0.4</font><font style='font-family:Times New Roman;font-size:10pt;' > million (</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' > &#8211; </font><font style='font-family:Times New Roman;font-size:10pt;' >loss </font><font style='font-family:Times New Roman;font-size:10pt;' >of $</font><font style='font-family:Times New Roman;font-size:10pt;' >0.9</font><font style='font-family:Times New Roman;font-size:10pt;' > million) related to changes in the fair value of these </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Unrealized gains and losses on these contracts are included in accounts receivable and accounts payable, respectively, on the consolidated balance sheets.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >(ii)</font><font style='font-family:Times New Roman;font-size:10pt;' > Designated as hedging instr</font><font style='font-family:Times New Roman;font-size:10pt;' >uments</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company had net open forward foreign exchange contracts to sell U.S. dollars to buy Mexican pesos with a notional value of $</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 11.1</font><font style='font-family:Times New Roman;font-size:10pt;' > million (M$</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' > 214.5</font><font style='font-family:Times New Roman;font-size:10pt;' > million). These contracts wer</font><font style='font-family:Times New Roman;font-size:10pt;' >e entered into as part of a hedging program to manage the variability of cash flows associated with a portion of forecasted purchases of raw fruit inventories denominated in Mexican pesos. As these contracts have been designated as hedging instruments, th</font><font style='font-family:Times New Roman;font-size:10pt;' >e effective portion of the gains and losses on changes in the fair value of these contracts is included in other comprehensive earnings and reclassified to cost of goods sold in the same period the hedged transaction affects earnings, which is upon the sal</font><font style='font-family:Times New Roman;font-size:10pt;' >e of the inventories. </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company recognized a net unrealized gain in other comprehensive earnings of $0.8 million </font><font style='font-family:Times New Roman;font-size:10pt;' >(</font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' > &#8211; </font><font style='font-family:Times New Roman;font-size:10pt;' >gain </font><font style='font-family:Times New Roman;font-size:10pt;' >of $</font><font style='font-family:Times New Roman;font-size:10pt;' >1.8</font><font style='font-family:Times New Roman;font-size:10pt;' > million) </font><font style='font-family:Times New Roman;font-size:10pt;' >related to changes in the fair value of open contracts, and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company reclassified $0.2 million of realized losses on closed contracts from other comprehensive earnings to cost of goods sold. The Company expects to reclassify the $0.6 million amount of the unrealized losses recor</font><font style='font-family:Times New Roman;font-size:10pt;' >ded in accumulated other comprehensive loss as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, to earnings over the next five months.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Unrealized gains and losses on these contracts are included in other current assets and other current liabilities, respectively, on the consolidated b</font><font style='font-family:Times New Roman;font-size:10pt;' >alance sheets.</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(</font><font style='font-family:Times New Roman;font-size:10pt;' >4</font><font style='font-family:Times New Roman;font-size:10pt;' >) </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Contingent consideration </font></p><p style='text-align:left;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The fair value measurement of contingent consideration arising from business acquisitions is determined using unobservable (level 3) inputs. These inputs include: (i) the estimated amount and timing of the projected cash </font><font style='font-family:Times New Roman;font-size:10pt;' >flows on which the contingency is based; and (ii) the risk-adjusted discount rate used to calculate the present value of those cash flows. </font><font style='font-family:Times New Roman;font-size:10pt;' >The </font><font style='font-family:Times New Roman;font-size:10pt;' >table below</font><font style='font-family:Times New Roman;font-size:10pt;' > presents a reconciliation of contingent consideration obligations </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >. These obligations are included in long-term liabilities (including the current portion thereof) on the consolidated balance sheets.</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:15pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:15pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance, beginning of period</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(15,279)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value adjustments</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,416</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(120)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Payments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >269</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance, end of period</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(15,130)</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(1</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:8pt;' >, included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in </font><font style='font-family:Times New Roman;font-size:8pt;' >March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, r</font><font style='font-family:Times New Roman;font-size:8pt;' >eflect</font><font style='font-family:Times New Roman;font-size:8pt;' >ed</font><font style='font-family:Times New Roman;font-size:8pt;' > the accretion for the </font><font style='font-family:Times New Roman;font-size:8pt;' >time value of money. </font><font style='font-family:Times New Roman;font-size:8pt;' >(</font><font style='font-family:Times New Roman;font-size:8pt;' >S</font><font style='font-family:Times New Roman;font-size:8pt;' >ee note </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >9</font><font style='font-family:Times New Roman;font-size:8pt;' >.</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font></p></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of </font><font style='font-family:Times New Roman;font-size:10pt;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:285pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:285pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value</font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >asset (liability)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 1</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 2</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 3</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures and forward contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >202</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >202</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >45</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >45</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,266)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(56)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,210)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories carried at market</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,368</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,368</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward foreign currency contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Not designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(710)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(710)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >575</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >575</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Contingent consideration</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Embedded derivative</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td></tr><tr style='height:15.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:285pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:285pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:1;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value</font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >asset (liability)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 1</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 2</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Level 3</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:185.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:185.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures and forward contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:71.25pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current asset</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >738</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >738</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Current liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(240)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(35)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(205)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term liability</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories carried at market</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,838</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,838</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward foreign currency contracts</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Not designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,060)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,060)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:207.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:207.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Designated as hedging instruments</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(435)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(435)</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Contingent consideration</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4)</font></sup></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:219pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:219pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Embedded derivative</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:71.25pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:71.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,690</font></td></tr></table></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the notional amounts of open commodity futures and forward purchase and sale contracts were as follows (in thousands of bushels):</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:282.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:282.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:187.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:187.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Number of bushels purchased (sold)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:282.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:282.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corn</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Soybeans</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward commodity purchase contracts</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >799</font></td><td style='width:93.75pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >393</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Forward commodity sale contracts</font></td><td style='width:93.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(326)</font></td><td style='width:93.75pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(899)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:316.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:316.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Commodity futures contracts</font></td><td style='width:93.75pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(750)</font></td><td style='width:93.75pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:93.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >210</font></td></tr></table></div> <div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Raw materials and work-in-process</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >257,407</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >262,527</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Finished goods</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >74,191</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >92,489</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Company-owned grain</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >10,738</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,937</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventory reserves</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,855)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(9,975)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:top;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >334,481</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >354,978</font></td></tr></table></div> <div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Bank indebtedness:</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global Credit Facility</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >233,586</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >230,502</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Bulgarian credit facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,051</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,588</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >236,637</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >234,090</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term debt:</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Senior Secured Second Lien Notes, net of unamortized debt issuance costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:346.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:346.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >of $7,417 (December 30, 2017 - $7,716)</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >216,081</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >215,782</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset-backed term loan</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,577</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,600</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Capital lease obligations</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,102</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,651</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,000</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,000</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >227,760</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >228,033</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: current portion</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,190</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,228</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >225,570</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >225,805</font></td></tr></table></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The components of other expense (income) </font><font style='font-family:Times New Roman;font-size:10pt;' >we</font><font style='font-family:Times New Roman;font-size:10pt;' >re as follows:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Increase (decrease) in fair value of contingent consideration (see note 4(4))</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,416)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >120</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Impairment of long-lived assets and lease obligation costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,550</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,723</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Product withdrawal and recall costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >323</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >279</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee termination costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >232</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,750</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(91)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(429)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(402)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,443</font></td></tr></table></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Basic and diluted loss</font><font style='font-family:Times New Roman;font-size:10pt;' > per share were calculated as follows (shares in thousands)</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:13.5pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:348pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:120pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:120pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:60pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:60pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td colspan='2' rowspan='1' style='width:60pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:60pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Numerator for basic loss per share:</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to SunOpta Inc.</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,363)</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,398)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: dividends and accretion on Series A Preferred Stock</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,967)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,940)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to common shareholders</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,330)</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,338)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Denominator for basic loss per share:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Basic weighted-average number of shares outstanding</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Basic loss per share</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.07)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.16)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Numerator for diluted loss per share:</font></td><td style='width:10.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to SunOpta Inc.</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,363)</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,398)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: dividends and accretion on Series A Preferred Stock</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,967)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,940)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to common shareholders</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,330)</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,338)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Denominator for diluted loss per share:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Basic weighted-average number of shares outstanding</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Dilutive effect of the following:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:359.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:359.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Series A Preferred Stock</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:359.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:359.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Stock options and restricted stock units</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Diluted weighted-average number of shares outstanding</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Diluted loss per share</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.07)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.16)</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(1) </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, it was more dilutive to assume the Preferred Stock was not converted into Common Shares and, therefore, the numerator of the diluted loss per share calculation was not adjusted to add back the dividends and </font><font style='font-family:Times New Roman;font-size:10pt;' >accretion on the Preferred Stock and the denominator was not adjusted to include 11,333,333 Common Shares issuable on an if-converted basis.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(2)</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, stock options and </font><font style='font-family:Times New Roman;font-size:10pt;' >restricted stock units</font><font style='font-family:Times New Roman;font-size:10pt;' > to purchase or receive </font><font style='font-family:Times New Roman;font-size:10pt;' >657,946</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >and </font><font style='font-family:Times New Roman;font-size:10pt;' >84,659</font><font style='font-family:Times New Roman;font-size:10pt;' > Common Shares, respectively, were excluded from the calculation of diluted loss per share due to their anti-dilutive effect of reducing the loss per share. In addition, </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, options to purch</font><font style='font-family:Times New Roman;font-size:10pt;' >ase </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >1,984,184</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >1,362,347</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Common Shares</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively,</font><font style='font-family:Times New Roman;font-size:10pt;' > were anti-dilutive because the exercise prices of these options were greater than the average</font><font style='font-family:Times New Roman;font-size:10pt;' > market pric</font><font style='font-family:Times New Roman;font-size:10pt;' >e</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p></div> <div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Changes in non-cash working capital:</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Accounts receivable</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(12,359)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,127)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >18,302</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >26,358</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Income tax recoverable/payable</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,341</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,460)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Prepaid expenses and other current assets</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,376)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,733)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Accounts payable and accrued liabilities</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >381</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >12,410</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Customer and other deposits</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,400)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,887</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,889</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >23,335</font></td></tr></table></div> 1973 2163000 248000 <div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consumer</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Products</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consolidated</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment revenues from external customers</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >136,331</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >176,321</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >312,652</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment operating income</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,102</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,316</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >6,418</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corporate Services</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,755)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other income, net (see note 9)</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >402</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Interest expense, net</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,220)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss before income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,155)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consumer</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Products</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consolidated</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment revenues from external customers</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >126,642</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >203,389</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >330,031</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment operating income</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,201</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >6,498</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >10,699</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corporate Services</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,655)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other expense, net (see note 9)</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,443)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Interest expense, net</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,754)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss before income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(16,153)</font></td></tr></table></div> 1840000 799000 393000 -326000 -899000 -750000 210000 STKL 334481000 240229000 -99000 214000 86840122 0 136000 0 0 0 0 136000 23000 94000 0 0 0 0 94000 15000 10-Q 0000351834 Yes No Large Accelerated Filer Yes The fiscal year of the Company consists of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017. 86757334 -6035000 -8664000 <div><table style='border-collapse:collapse;' ><tr style='height:15pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:15pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance, beginning of period</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,320)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(15,279)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Fair value adjustments</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,416</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(120)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Payments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >269</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance, end of period</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,904)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(15,130)</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(1</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:8pt;' >, included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in </font><font style='font-family:Times New Roman;font-size:8pt;' >March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, r</font><font style='font-family:Times New Roman;font-size:8pt;' >eflect</font><font style='font-family:Times New Roman;font-size:8pt;' >ed</font><font style='font-family:Times New Roman;font-size:8pt;' > the accretion for the </font><font style='font-family:Times New Roman;font-size:8pt;' >time value of money. </font><font style='font-family:Times New Roman;font-size:8pt;' >(</font><font style='font-family:Times New Roman;font-size:8pt;' >S</font><font style='font-family:Times New Roman;font-size:8pt;' >ee note </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >9</font><font style='font-family:Times New Roman;font-size:8pt;' >.</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font></p></div> 3723000 339000 1094000 149000 2924000 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >13</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >. Segmented</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Information</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >T</font><font style='font-family:Times New Roman;font-size:10pt;' >he composition of the Company&#8217;s reportable segments is as follows: </font></p><p style='text-align:justify;line-height:12pt;' ></p><ul style='margin-top:0pt;' ><li style='list-style:disc;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global Ingredients aggregates </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >the Company&#8217;s</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >on the </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >procurement and sale of </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >organic commodities and value-added ingredients, and </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >specialty and organic grains and seeds</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >.</font></li></ul><p style='text-align:justify;line-height:12pt;' ></p><ul style='margin-top:0pt;' ><li style='list-style:disc;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages inc</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >ludes aseptic</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >ally-</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >IQF f</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >ruits for retail; IQF and bulk frozen fruit for foodservice; and cu</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >stom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings, and included flexible resealable pouch and nutrition bar product lines, which were exited in 2017.</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></li></ul><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >Effective the first quarter of 2018, the Company transfer</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >red certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >for these operations, and resulting changes in reporting and accountability to the Company&#8217;s Chief Executive Officer. These operations produce liquid bases, including for the Company&#8217;s non-dairy aseptic beverage operations, as well as spray-dried ingredie</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >nts. Revenues and gross profit related to these operations were $3.4 million and $0.6 million, respectively, </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, compared with $3.6 million and $0.6 million, respectively, </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >. The segmen</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >t information presented below </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > has been restated to reflect this realignment.</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >In addition, Corporate Services provides a variety of management, financial, information technology, treasury and administration services t</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >o each of the Company&#8217;s operating segments from the Company&#8217;s headquarters in Mississauga, Ontario and administrative office in Edina, Minnesota.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >When reviewing the operating results of the Company&#8217;s operating segments, management uses segment revenues fr</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >om external customers and segment operating income/loss to assess performance and allocate resources. Segment operating income/loss excludes other income/expense items. In addition, interest expense </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >and</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > income taxes are not allocated to the operating seg</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >ments.</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consumer</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Products</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consolidated</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment revenues from external customers</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >136,331</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >176,321</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >312,652</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment operating income</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,102</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,316</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >6,418</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corporate Services</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,755)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other income, net (see note 9)</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >402</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Interest expense, net</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(8,220)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss before income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,155)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:202.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:202.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consumer</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Products</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consolidated</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:267.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:267.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment revenues from external customers</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >126,642</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >203,389</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >330,031</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Segment operating income</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,201</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >6,498</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >10,699</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Corporate Services</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,655)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other expense, net (see note 9)</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,443)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Interest expense, net</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,754)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:301.5pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:301.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss before income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(16,153)</font></td></tr></table></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >12</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Commitments and Contingencies</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Employment Matter</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >On April 19, 2013, a class-action complaint, in the case titled De Jesus, et al. v. Frozsun, Inc. d/b/a Frozsun Foods, was filed against Sunrise Growers, Inc. (&#8220;Sunrise&#8221;) (then named Frozsun</font><font style='font-family:Times New Roman;font-size:10pt;' >, Inc.) in California Superior Court, Santa Barbara County seeking damages, equitable relief and reasonable attorneys&#8217; fees for alleged wage and hour violations. This case includes claims for failure to pay all hours worked, failure to pay overtime wages, </font><font style='font-family:Times New Roman;font-size:10pt;' >meal and rest period violations, waiting-time penalties, improper wage statements and unfair business practices. The putative class includes approximately 10,000 non-exempt hourly employees from Sunrise&#8217;s production facilities in Santa Maria and Oxnard, Ca</font><font style='font-family:Times New Roman;font-size:10pt;' >lifornia. The parties attended mediation on October 12, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >,</font><font style='font-family:Times New Roman;font-size:10pt;' > and reached a general agreement to resolve the matter on a class-wide basis. After negotiating the remaining details of the settlement, the parties sought preliminary approval of the settlement f</font><font style='font-family:Times New Roman;font-size:10pt;' >rom the court in April 2018, and are awaiting the court order. The Company expects to recover the full amount payable under the settlement through insurance coverage and an escrow account established in connection with the Company&#8217;s acquisition of Sunrise.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Product Recall</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >On November 20, 2017, Treehouse Foods, Inc., several of its rela</font><font style='font-family:Times New Roman;font-size:10pt;' >ted entities, and its insurer filed a lawsuit against the Company in the Circuit Court of Cook County, Illinois titled Treehouse Foods, Inc. et al. v. SunOpta Grains and Fo</font><font style='font-family:Times New Roman;font-size:10pt;' >od, Inc. The Company was served with the Summons and Complaint on January 24, 2018, and the plaintiffs filed an Amended Complaint on April 23, 2018. The plaintiffs allege economic damages resulting from the Company&#8217;s 2016 voluntary recall of certain roa</font><font style='font-family:Times New Roman;font-size:10pt;' >sted sunflower kernel products due to the potential for Listeria monocytogenes contamination. The case includes claims for breach of express and implied warranty, negligence, strict liability, and indemnity seeking $16.2 million in damages. There are no </font><font style='font-family:Times New Roman;font-size:10pt;' >allegations of personal injury. The Company intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of this claim, nor can it estimate the amount of loss, or range of loss, if any, that may result from </font><font style='font-family:Times New Roman;font-size:10pt;' >this claim.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Other Claims</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In addition, various claims and potential claims arising in the normal course of business are pending against the Company. It is the opinion of management that these claims or potential claims are without merit and the amount of </font><font style='font-family:Times New Roman;font-size:10pt;' >potential liability, if any, to the Company is not determinable. Management believes the final determination of these claims or potential claims will not materially affect the financial position or results of the Company.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >11</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >. Supplemental</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Cash Flow Information</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Changes in non-cash working capital:</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Accounts receivable</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(12,359)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,127)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventories</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >18,302</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >26,358</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Income tax recoverable/payable</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,341</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,460)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Prepaid expenses and other current assets</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,376)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,733)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Accounts payable and accrued liabilities</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >381</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >12,410</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Customer and other deposits</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,400)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,887</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,889</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >23,335</font></td></tr></table></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >10</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >. </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >Loss Per Share</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Basic and diluted loss</font><font style='font-family:Times New Roman;font-size:10pt;' > per share were calculated as follows (shares in thousands)</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:13.5pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:348pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:120pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:120pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:60pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:60pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td colspan='2' rowspan='1' style='width:60pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:60pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Numerator for basic loss per share:</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to SunOpta Inc.</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,363)</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,398)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: dividends and accretion on Series A Preferred Stock</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,967)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,940)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to common shareholders</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,330)</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,338)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Denominator for basic loss per share:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Basic weighted-average number of shares outstanding</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Basic loss per share</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.07)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.16)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Numerator for diluted loss per share:</font></td><td style='width:10.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to SunOpta Inc.</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(4,363)</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(11,398)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: dividends and accretion on Series A Preferred Stock</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,967)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,940)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Loss attributable to common shareholders</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,330)</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,338)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Denominator for diluted loss per share:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Basic weighted-average number of shares outstanding</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Dilutive effect of the following:</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:359.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:359.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Series A Preferred Stock</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:10.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:359.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:359.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Stock options and restricted stock units</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:370.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:370.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Diluted weighted-average number of shares outstanding</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >86,810</font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,929</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:348pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:348pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:49.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:381.75pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:381.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Diluted loss per share</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.07)</font></td><td style='width:10.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:49.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:49.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(0.16)</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(1) </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, it was more dilutive to assume the Preferred Stock was not converted into Common Shares and, therefore, the numerator of the diluted loss per share calculation was not adjusted to add back the dividends and </font><font style='font-family:Times New Roman;font-size:10pt;' >accretion on the Preferred Stock and the denominator was not adjusted to include 11,333,333 Common Shares issuable on an if-converted basis.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(2)</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, stock options and </font><font style='font-family:Times New Roman;font-size:10pt;' >restricted stock units</font><font style='font-family:Times New Roman;font-size:10pt;' > to purchase or receive </font><font style='font-family:Times New Roman;font-size:10pt;' >657,946</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >and </font><font style='font-family:Times New Roman;font-size:10pt;' >84,659</font><font style='font-family:Times New Roman;font-size:10pt;' > Common Shares, respectively, were excluded from the calculation of diluted loss per share due to their anti-dilutive effect of reducing the loss per share. In addition, </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, options to purch</font><font style='font-family:Times New Roman;font-size:10pt;' >ase </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >1,984,184</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >1,362,347</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Common Shares</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively,</font><font style='font-family:Times New Roman;font-size:10pt;' > were anti-dilutive because the exercise prices of these options were greater than the average</font><font style='font-family:Times New Roman;font-size:10pt;' > market pric</font><font style='font-family:Times New Roman;font-size:10pt;' >e</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >9</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Other Expense (Income)</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >, Net</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The components of other expense (income) </font><font style='font-family:Times New Roman;font-size:10pt;' >we</font><font style='font-family:Times New Roman;font-size:10pt;' >re as follows:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Increase (decrease) in fair value of contingent consideration (see note 4(4))</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,416)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >120</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Impairment of long-lived assets and lease obligation costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,550</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,723</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Product withdrawal and recall costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >323</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >279</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee termination costs</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >232</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,750</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(91)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(429)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(402)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,443</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(1)</font><font style='font-family:Times New Roman;font-size:10pt;' > Impairment of long-lived assets</font><font style='font-family:Times New Roman;font-size:10pt;' > and lease obligation costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >included the remaining lease obligation related to the vacated nutrition bar processing facility, </font><font style='font-family:Times New Roman;font-size:10pt;' >and an additional impairment loss related to an agreement to sell the Wahpeton roasting facility</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >represented the loss on the disposal of the San Bernardino</font><font style='font-family:Times New Roman;font-size:10pt;' > assets</font><font style='font-family:Times New Roman;font-size:10pt;' >, including the cost of</font><font style='font-family:Times New Roman;font-size:10pt;' > the early buyout of the </font><font style='font-family:Times New Roman;font-size:10pt;' >equipment leases</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(2)</font><font style='font-family:Times New Roman;font-size:10pt;' > Product withdrawal and recall costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >represented product withdrawal and recall costs that were not eligible for reimbursemen</font><font style='font-family:Times New Roman;font-size:10pt;' >t under the Company&#8217;s insurance policies, including </font><font style='font-family:Times New Roman;font-size:10pt;' >certain </font><font style='font-family:Times New Roman;font-size:10pt;' >costs related to the voluntary recall of certain roasted sunflower kernel products initiated by the Company during the second quarter of 2016.</font><font style='font-family:Times New Roman;font-size:10pt;text-decoration:line-through;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(3)</font><font style='font-family:Times New Roman;font-size:10pt;' > Employee termination</font><font style='font-family:Times New Roman;font-size:10pt;' > costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, </font><font style='font-family:Times New Roman;font-size:10pt;' >represented severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan</font><font style='font-family:Times New Roman;font-size:10pt;' > (see note </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >3</font><font style='font-family:Times New Roman;font-size:10pt;' >)</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p></div> 369413000 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >6</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >. Bank</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Indebtedness and Long-Term Debt</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Bank indebtedness:</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Global Credit Facility</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >233,586</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >230,502</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Bulgarian credit facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,051</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,588</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >236,637</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >234,090</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Long-term debt:</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Senior Secured Second Lien Notes, net of unamortized debt issuance costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:346.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:346.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >of $7,417 (December 30, 2017 - $7,716)</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >216,081</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >215,782</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset-backed term loan</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,577</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,600</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Capital lease obligations</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,102</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,651</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='3' rowspan='1' style='width:357.75pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:357.75pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,000</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,000</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >227,760</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >228,033</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Less: current portion</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,190</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,228</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >225,570</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >225,805</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(1) </font><font style='font-family:Times New Roman;font-size:10pt;' > Global Credit Facility</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >On February 11, 2016, the Company entered into a five-year credit agreement for a senior secured asset-based revolving credit facility with a syndicate of banks in the maximum aggregate principal amount of $350.0 million, </font><font style='font-family:Times New Roman;font-size:10pt;' >subject to borrowing base capacity (the &#8220;Global Credit Facility&#8221;). The Global Credit Facility is used to support the working capital and general corporate needs of the Company&#8217;s global operations, in addition to funding future strategic initiatives. The G</font><font style='font-family:Times New Roman;font-size:10pt;' >lobal Credit Facility also includes borrowing capacity available for letters of credit and provides for borrowings on same-day notice, including in the form of swingline loans. Subject to customary borrowing conditions and the agreement of any such lender</font><font style='font-family:Times New Roman;font-size:10pt;' >s to provide such increased commitments, the Company may request to increase the total lending commitments under the Global Credit Facility to a maximum aggregate principal amount not to exceed $450.0 million. Outstanding principal amounts under the Globa</font><font style='font-family:Times New Roman;font-size:10pt;' >l Credit Facility are repayable in full on the maturity date of February 10, 2021</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Individual borrowings under the Global Credit Facility have terms of six months or less and bear interest based on various reference rates, including prime rate and LIBO</font><font style='font-family:Times New Roman;font-size:10pt;' >R plus an applicable margin. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR</font><font style='font-family:Times New Roman;font-size:10pt;' >,</font><font style='font-family:Times New Roman;font-size:10pt;' > and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set qua</font><font style='font-family:Times New Roman;font-size:10pt;' >rterly based on average borrowing availability for the preceding fiscal quarter</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the weighted-average interest rate on the facilities </font><font style='font-family:Times New Roman;font-size:10pt;' >was 3.93%.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >On September 19, 2017 (the &#8220;Effective Date&#8221;), the Company entered into an</font><font style='font-family:Times New Roman;font-size:10pt;' > amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the &#8220;New U.S. Subfacility</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221;).</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The New U.S. Subfacility was fully drawn on the Effective Date. </font><font style='font-family:Times New Roman;font-size:10pt;' >Amortization</font><font style='font-family:Times New Roman;font-size:10pt;' > payments on the aggregate principal amount of the New U.S. Subf</font><font style='font-family:Times New Roman;font-size:10pt;' >acility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019.</font><font style='font-family:Times New Roman;font-size:10pt;' > Optional prepayment of borrowings under the New U.S. Sub</font><font style='font-family:Times New Roman;font-size:10pt;' >facility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Borrowings under the New U.S. Subfacility bear in</font><font style='font-family:Times New Roman;font-size:10pt;' >terest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate</font><font style='font-family:Times New Roman;font-size:10pt;' > and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers&#8217; acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocu</font><font style='font-family:Times New Roman;font-size:10pt;' >rrency rate borrowings.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Obligations under the Global Credit Facility are guaranteed by substantially all of the Company&#8217;s subsidiaries and, subject to certain exceptions, such obligations are secured by first priority liens on substantially all of the ass</font><font style='font-family:Times New Roman;font-size:10pt;' >ets of the Company. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Global Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company&#8217;s ability to create liens on assets; sell assets and enter into sale and leaseback transactions; </font><font style='font-family:Times New Roman;font-size:10pt;' >pay dividends, prepay junior lien and unsecured indebtedness and make other restricted payments; incur additional indebtedness and make guarantees; make investments, loans or advances, including acquisitions; and engage in mergers or consolidations. The f</font><font style='font-family:Times New Roman;font-size:10pt;' >oregoing covenants are subject to certain threshold amounts and exceptions as set forth in the credit agreement</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(2) </font><font style='font-family:Times New Roman;font-size:10pt;' > Senior Secured Second Lien Notes</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;color:#000000;' >On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due 2022 (the &#8220;Notes&#8221;). </font><font style='font-family:Times New Roman;font-size:10pt;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >D</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >ebt issuance costs </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >are</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > recorded as a reduction against the principal amount of the Notes and are being amortized over t</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >he six-year term of the Notes. </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017.</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > The Notes will mature on October 9, 2022. Giving effect to the amortization of</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > debt issuance costs, the effective interest rate on the Notes is approximately 10.4% per annum</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Prior to October 9, 2018, SunOpta Foods may redeem some or all of the Notes at any time and from time to time at a &#8220;make-whole&#8221; redemption price set forth in </font><font style='font-family:Times New Roman;font-size:10pt;' >the indenture governing the Notes. On or after October 9, 2018, SunOpta Foods may redeem the Notes, in whole or in part, at any time at the redemption prices equal to 107.125% through October 8, 2019, 104.750% from October 9, 2019 through October 8, 2020, </font><font style='font-family:Times New Roman;font-size:10pt;' >102.375% from October 9, 2020 through October 8, 2021 and at par thereafter, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In addition, prior to October 9, 2018, SunOpta Foods may, on one or more occasions, redeem up t</font><font style='font-family:Times New Roman;font-size:10pt;' >o 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price equal to 109.500% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of</font><font style='font-family:Times New Roman;font-size:10pt;' > redemption. At any time prior to October 9, 2018, SunOpta Foods may also redeem, during each twelve-month period beginning on October 20, 2016, up to 10% of the aggregate principal amount of the Notes at a price equal to 103.000% of the aggregate principa</font><font style='font-family:Times New Roman;font-size:10pt;' >l amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In the event of a change of control, SunOpta Foods will be required to make an offer to repurchase the Notes at 101.000% of their prin</font><font style='font-family:Times New Roman;font-size:10pt;' >cipal amount, plus accrued and unpaid interest, if any, to the date of purchase</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Notes are secured by second-priority liens on substantially all of </font><font style='font-family:Times New Roman;font-size:10pt;' >the assets that secure the credit facilities provided under the Global Credit Facility, subject to certain exceptions and permitted liens. The Notes are senior secured obligations and rank equally in right of payment with SunOpta Foods&#8217; existing and futur</font><font style='font-family:Times New Roman;font-size:10pt;' >e senior debt and senior in right of payment to any future subordinated debt. The Notes are effectively subordinated to debt under the Global Credit Facility and any future indebtedness secured on a first priority basis. The Notes are initially guaranteed</font><font style='font-family:Times New Roman;font-size:10pt;' > on a senior secured second-priority basis by the Company and each of its subsidiaries (other than SunOpta Foods) that guarantees indebtedness under the Global Credit Facility, subject to certain exceptions</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Notes are subject to covenants that, among </font><font style='font-family:Times New Roman;font-size:10pt;' >other things, limit the Company&#8217;s ability to (i) incur additional debt or issue preferred stock; (ii) pay dividends and make certain types of investments and other restricted payments; (iii) create liens; (iv) enter into transactions with affiliates; (v) s</font><font style='font-family:Times New Roman;font-size:10pt;' >ell assets; and (vi) create restrictions on the ability of restricted subsidiaries to pay dividends, make loans or advances or transfer assets to the Company, SunOpta Foods or any guarantor of the Notes. The foregoing covenants are subject to certain thre</font><font style='font-family:Times New Roman;font-size:10pt;' >shold amounts and exceptions as set forth in the indenture governing the Notes. In addition, the indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenan</font><font style='font-family:Times New Roman;font-size:10pt;' >ts in the indenture, certain payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the trustee or holders of at least 25</font><font style='font-family:Times New Roman;font-size:10pt;' >% in principal amount of the outstanding Notes may declare the principal of and accrued and unpaid interest on, if any, all the Notes to be due and payable</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;color:#000000;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;color:#000000;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, the estimated fair value of the outstanding Notes was </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >approximately $240 mil</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >lion,</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > based on quoted prices of recent over-the-counter transactions (Level 2)</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >.</font></p></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >5</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Inventories</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Raw materials and work-in-process</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >257,407</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >262,527</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Finished goods</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >74,191</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >92,489</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Company-owned grain</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >10,738</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,937</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Inventory reserves</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,855)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(9,975)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:top;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >334,481</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >354,978</font></td></tr></table></div> 3588000 3051000 608000 486000 -1804000 -8567000 0 -5443000 1456000 598000 232000 1750000 -91000 -429000 3341000 -1460000 12359000 11127000 -18302000 -26358000 5376000 4733000 381000 12410000 -1400000 1887000 136331000 176321000 6418000 3102000 3316000 -4755000 126642000 203389000 10699000 4201000 6498000 -13655000 172059000 169317000 233586000 230502000 Q1 2018-03-31 312652000 -4462000 -4363000 330031000 -11184000 -11398000 80460000 80193000 <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;background-color:#FFFF00;margin-left:0pt;color:#000000;' >1</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >. Description of Business and Significant Accounting Policies</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >SunOpta Inc. (the &#8220;Company&#8221; or &#8220;SunOpta&#8221;) was incorporated under the laws of Canada on November 13, 1973. The Company operates businesses focused on a healthy products portfolio that </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >promotes sustainable well-being. The Company&#8217;s two reportable segments, Global Ingredients and Consumer Products, operate in the natural, organic and specialty food sectors and utilize an integrated business model to bring cost-effective and quality produ</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >cts to market. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Basis of Presentation</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The interim consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated under the Securities Exchange Act of 1934</font><font style='font-family:Times New Roman;font-size:10pt;' >, as amended, and in </font><font style='font-family:Times New Roman;font-size:10pt;' >accordance with accounting principles generally accepted in the United States of America (&#8220;U.S. GAAP&#8221;) for interim financial information. Accordingly, these condensed interim consolidated financial statements do not include all of the</font><font style='font-family:Times New Roman;font-size:10pt;' > disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included and all such adjustments are of a normal, recurring nature. Operating results </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > are not necessarily indicative of the results that may be expected for the full </font><font style='font-family:Times New Roman;font-size:10pt;' >fiscal </font><font style='font-family:Times New Roman;font-size:10pt;' >year ending </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 29, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > or for any other period. </font><font style='font-family:Times New Roman;font-size:10pt;' >The interim consolidated financial statements include the accounts of the Comp</font><font style='font-family:Times New Roman;font-size:10pt;' >any and its subsidiaries, and have been prepared on a basis consistent with the annual consolidated financial statements for the year ended </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, except as described below under &#8220;Recent Accounting </font><font style='font-family:Times New Roman;font-size:10pt;' >Pronouncements </font><font style='font-family:Times New Roman;font-size:10pt;' >&#8211;</font><font style='font-family:Times New Roman;font-size:10pt;' > Adoption of New Accounting Stan</font><font style='font-family:Times New Roman;font-size:10pt;' >dards</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221;</font><font style='font-family:Times New Roman;font-size:10pt;' >. For further information, refer to the consolidated financial statements, and notes thereto, included in the Company&#8217;s Annual Report on Form 10-K for the fiscal year ended </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;color:#000000;' >Fiscal Year</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >The fiscal year of the Company consists of a </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > is a 52-w</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >eek period ending on December 29</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, with qua</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >rterly periods ending on March 31, June 30 and September 29</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8. Fiscal year 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > was a 52-week period ending o</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >n December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, with qua</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >rterly periods ending on April 1, July 1</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > and </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >September 30</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >7</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >.</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></p></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Recent Accounting Pronouncements</font></p><p style='text-align:left;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0pt;' >Adoption of </font><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;' >New Accounting Standard</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >As at December 31, 2017 (the first day of fiscal 2018), the Company adopted Accounting Standards Update (&#8220;ASU&#8221;) 2014-09, &#8220;Revenue from Contracts with Customers (Topic 606)&#8221;</font><font style='font-family:Times New Roman;font-size:10pt;' > (&#8220;ASC Topic 606&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' >, which superseded all previous revenue recognition guidance under U.S. GAAP. Under this new standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to</font><font style='font-family:Times New Roman;font-size:10pt;' > which the company expects to be entitled in exchange for those goods or services. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The</font><font style='font-family:Times New Roman;font-size:10pt;' > Company analyzed its significant customer contracts to determine the effects of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >. In particular, the Company assessed under the new guidance whether its</font><font style='font-family:Times New Roman;font-size:10pt;' > contracts with customers to produce certain consumer-packaged goods would </font><font style='font-family:Times New Roman;font-size:10pt;' >require</font><font style='font-family:Times New Roman;font-size:10pt;' > the Company to recognize revenue over time versus at a point in time, based on whether the given product has an alternative use and whether there is an enforceable right to</font><font style='font-family:Times New Roman;font-size:10pt;' > payment under the contract for product produced to date. Based on its assessment, the Company concluded that it does not satisfy the criteria to recognize revenue over time. Accordingly, the Company continues to recognize revenue at a point in time cons</font><font style='font-family:Times New Roman;font-size:10pt;' >istent with its previous policies and processes, which is typically when title and physical possession of the product has transferred to the customer. The Company also transacts with certain customers on a bill-and-hold basis, </font><font style='font-family:Times New Roman;font-size:10pt;' >whereby the Company bills a </font><font style='font-family:Times New Roman;font-size:10pt;' >customer for product to be delivered at a later date</font><font style='font-family:Times New Roman;font-size:10pt;' >. Prior to the adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company deferred the recognition of revenue related to these bill-and-hold arrangements, as the arrangements did not typically include a fixed delivery sched</font><font style='font-family:Times New Roman;font-size:10pt;' >ule. As this criterion is no longer a consideration under </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >, these arrangements now qualify for revenue recognition at the point in time that the customer obtains control of the </font><font style='font-family:Times New Roman;font-size:10pt;' >goods</font><font style='font-family:Times New Roman;font-size:10pt;' >. With the exception of bill-and-hold arrangements, the adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' > did not have a significant impact on the Company&#8217;s consolidated financial statements and revenue recognition practices, or its internal controls. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The Company adopted </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC </font><font style='font-family:Times New Roman;font-size:10pt;' >Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >using the modified retrospective approach, which resulted in</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >a cumulative-effect adjustment of $0.3 million to opening accumulated deficit as at December 31, 2017, related to</font><font style='font-family:Times New Roman;font-size:10pt;' > the recognition of $4.8 million of bill-and-hold revenue deferred under</font><font style='font-family:Times New Roman;font-size:10pt;' > previous U.S. GAAP</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >The change in the timing of the recognition of bill-and-hold revenue did not have a material impact on the</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Company&#8217;s </font><font style='font-family:Times New Roman;font-size:10pt;' >consolidated statement of operations</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > or consolidated </font><font style='font-family:Times New Roman;font-size:10pt;' >balance sheet </font><font style='font-family:Times New Roman;font-size:10pt;' >as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >See note </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >2</font><font style='font-family:Times New Roman;font-size:10pt;' > for </font><font style='font-family:Times New Roman;font-size:10pt;' >additional </font><font style='font-family:Times New Roman;font-size:10pt;' >disclosures under </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0pt;' >Recently Issued Accounting Standards, Not Adopted </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;text-decoration:underline;' >as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;text-decoration:underline;' >March 31, 2018</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In June 2016, the </font><font style='font-family:Times New Roman;font-size:10pt;' >Financial Accounting Standards Board (&#8220;</font><font style='font-family:Times New Roman;font-size:10pt;' >FASB</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' > issued ASU 2016-13, &#8220;Measurement of Credit Losses on Financial Instruments&#8221;, which requires measurement and recognition of expected versus incurred credit losses for most financial assets. ASU 2016-13 is effective for interim and annual periods beginning </font><font style='font-family:Times New Roman;font-size:10pt;' >after December 15, 2019. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;, a comprehensive new standard that amends various aspects</font><font style='font-family:Times New Roman;font-size:10pt;' > of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, includi</font><font style='font-family:Times New Roman;font-size:10pt;' >ng interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consoli</font><font style='font-family:Times New Roman;font-size:10pt;' >dated financial statements</font><font style='font-family:Times New Roman;font-size:10pt;' >. The</font><font style='font-family:Times New Roman;font-size:10pt;' > Company anticipates that upon adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASU 2016-02,</font><font style='font-family:Times New Roman;font-size:10pt;' > it will recognize</font><font style='font-family:Times New Roman;font-size:10pt;' > significant </font><font style='font-family:Times New Roman;font-size:10pt;' >additional </font><font style='font-family:Times New Roman;font-size:10pt;' >right-to-use </font><font style='font-family:Times New Roman;font-size:10pt;' >assets and corresponding</font><font style='font-family:Times New Roman;font-size:10pt;' > lease</font><font style='font-family:Times New Roman;font-size:10pt;' > liabilities </font><font style='font-family:Times New Roman;font-size:10pt;' >on its balance sheet</font><font style='font-family:Times New Roman;font-size:10pt;' >, related to existing operating leases</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;color:#000000;' >The fiscal year of the Company consists of a </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > is a 52-w</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >eek period ending on December 29</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, with qua</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >rterly periods ending on March 31, June 30 and September 29</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >8. Fiscal year 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > was a 52-week period ending o</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >n December 30, 2017</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, with qua</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >rterly periods ending on April 1, July 1</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > and </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >September 30</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >, 201</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >7</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >.</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></p></div> 10000 0 0 707000 0 0 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >7</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >. </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Series A Preferred S</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >tock</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >On </font><font style='font-family:Times New Roman;font-size:10pt;' >October 7, 2016 (the &#8220;Closing Date&#8221;), the Company and SunOpta</font><font style='font-family:Times New Roman;font-size:10pt;' > Foods entered into a subscription agreement (the &#8220;Subscription Agreement&#8221;) with Oaktree Organics, L.P. and Oaktree Huntington Investment Fund II, L.P. (collectively, the &#8220;Investors&#8221;). Pursuant to the Subscription Agreement, SunOpta Foods issued an aggreg</font><font style='font-family:Times New Roman;font-size:10pt;' >ate of 85,000 shares of Preferred Stock to the Investors for consideration in the amount of $85.0 million. In connection with the issuance of the Preferred Stock, the Company incurred direct and incremental expenses of $6.0 million, which reduced the carr</font><font style='font-family:Times New Roman;font-size:10pt;' >ying value of the Preferred Stock. </font><font style='font-family:Times New Roman;font-size:10pt;' >At any time on or after the fifth anniversary of the Closing Date, SunOpta Foods may redeem all of the Preferred Stock for an amount, per share of Preferred Stock, equal to the value of the liquidation preference at such</font><font style='font-family:Times New Roman;font-size:10pt;' > time</font><font style='font-family:Times New Roman;font-size:10pt;' >. The carrying value of the Preferred Stock is being accreted to the redemption amount of $85.0 million through charges to retained earnings/accumulated deficit</font><font style='font-family:Times New Roman;font-size:10pt;' > over the period preceding the fifth anniversary of the Closing Date, which accretion amounted to $0.3 million</font><font style='font-family:Times New Roman;font-size:10pt;' > and $0.2 million </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In </font><font style='font-family:Times New Roman;font-size:10pt;' >connection with the Subscription Agreement, the Company agreed to, among other things (i) ensure SunOpta Foods has sufficient funds to pay its obligations under </font><font style='font-family:Times New Roman;font-size:10pt;' >the terms of the Preferred Stock and (ii) grant each holder of Preferred Stock (the &#8220;Holder&#8221;) the right to exchange the Preferred Stock for shares of common stock of the Company (the &#8220;Common Shares&#8221;). The Preferred Stock is non-participating with the Comm</font><font style='font-family:Times New Roman;font-size:10pt;' >on Shares in dividends and undistributed earnings of the Company.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The Preferred Stock has a stated value and initial liquidation preference of $1,000 per share. </font><font style='font-family:Times New Roman;font-size:10pt;' >Cumulative preferred dividends accrue daily on the Preferred Stock at an annualized rate of 8</font><font style='font-family:Times New Roman;font-size:10pt;' >.0% prior to October 5, 2025 and 12.5% thereafter, in each case of the liquidation preference (subject to an increase of 1.0% per quarter, up to a maximum rate of 5.0% per quarter on the occurrence of certain events of non-compliance). Prior to October 5,</font><font style='font-family:Times New Roman;font-size:10pt;' > 2025, SunOpta Foods may pay dividends in cash or elect, in lieu of paying cash, to add the amount that would have been paid to the liquidation preference. After October 4, 2025, the failure to pay dividends in cash will be an event of non-compliance. Th</font><font style='font-family:Times New Roman;font-size:10pt;' >e Preferred Stock ranks senior to the shares of common stock of SunOpta Foods with respect to dividend rights and rights on the distribution of assets on any liquidation, winding up or dissolution of the Company or SunOpta Foods</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company paid cash dividends on the Preferred Stock of $1.7 million, and, as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company had accrued unpaid dividends of $1.7 million, which were recorded in accounts payable and accrued liabilities on </font><font style='font-family:Times New Roman;font-size:10pt;' >the consolidated balance sheet.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >At any time, the Holders may exchange their shares of Preferred Stock, in whole or in part, into the number of Common Shares equal to, per share of Preferred Stock, the quotient of the liquidation preference divided by $7.5</font><font style='font-family:Times New Roman;font-size:10pt;' >0 (such price, the &#8220;Exchange Price&#8221; and such quotient, the &#8220;Exchange Rate&#8221;). As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the aggregate shares of Preferred Stock outstanding were exchangeable into 11,333,333 Common Shares. The Exchange Price is subject to certain anti-dilution</font><font style='font-family:Times New Roman;font-size:10pt;' > adjustments, including a weighted-average adjustment for issuances of Common Shares below the Exchange Price, provided that the Exchange Price may not be lower than $7.00 (subject to adjustment in certain circumstances).</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >SunOpta Foods may cause the Holde</font><font style='font-family:Times New Roman;font-size:10pt;' >rs to exchange all of the Preferred Stock into a number of Common Shares based on the applicable Exchange Price if (i) fewer than 10% of the shares of Preferred Stock issued on the Closing Date remain outstanding, or (ii) on or after the third anniversary </font><font style='font-family:Times New Roman;font-size:10pt;' >of the Closing Date, the average volume-weighted average price of the Common Shares during the then preceding 20 trading day period is greater than 200% of the Exchange Price.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In connection with the Subscription Agreement, the Company issued 11,333,333 </font><font style='font-family:Times New Roman;font-size:10pt;' >Special Shares, Series 1 (the &#8220;Special Voting Shares&#8221;) to the Investors, which entitle the Investors to one vote per Special Voting Share on all matters submitted to a vote of the holders of Common Shares, together as a single class, subject to certain exc</font><font style='font-family:Times New Roman;font-size:10pt;' >eptions. Additional Special Voting Shares will be issued, or existing Special Voting Shares will be redeemed, as necessary to ensure that the aggregate number of Special Voting Shares outstanding is equal to the number of shares of Preferred Stock outstan</font><font style='font-family:Times New Roman;font-size:10pt;' >ding from time to time multiplied by the Exchange Rate in effect at such time. </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >As at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, 11,333,333 Special Voting Shares were issued and outstanding, which represented an approximate 11.5% voting interest in the Company. The Special Voting S</font><font style='font-family:Times New Roman;font-size:10pt;' >hares are not transferable and the voting rights associated with the Special Voting Shares will terminate upon the transfer of the Preferred Stock to a third party, other than a controlled affiliate of the Investors. The Investors are entitled to designat</font><font style='font-family:Times New Roman;font-size:10pt;' >e up to two nominees for election to the Board of Directors of the Company (the &#8220;Board&#8221;) and have the right to designate one individual to attend meetings of the Board as a non-voting observer, subject to the Investors maintaining certain levels of benefic</font><font style='font-family:Times New Roman;font-size:10pt;' >ial ownership of Common Shares on an as-exchanged basis.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >For so long as the Investors beneficially own or control at least 50% of the Preferred Stock issued on the Closing Date, including any corresponding Common Shares into which such Preferred Stock are</font><font style='font-family:Times New Roman;font-size:10pt;' > exchanged, the Investors will be entitled to (i) participation rights with respect to future equity offerings of the Company, and (ii) governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiari</font><font style='font-family:Times New Roman;font-size:10pt;' >es.</font></p></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >8</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > Accumulated Other Comprehensive Loss</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Net unrealized gains/(losses) recorded in</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >accumulated other comprehensive loss were as follows</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Currency translation adjustment</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,627)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,963)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash flow hedges, net of income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >402</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(305)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:top;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,225)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,268)</font></td></tr></table></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following </font><font style='font-family:Times New Roman;font-size:10pt;' >table summarizes costs incurred </font><font style='font-family:Times New Roman;font-size:10pt;' >under the</font><font style='font-family:Times New Roman;font-size:10pt;' > Value Creation Plan </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(a)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(b)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(c)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >recruitment,</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consulting</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >impairments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >retention and</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >fees and</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >and facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >termination</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >temporary</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >closure costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >labor costs</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable (receivable), December 30, 2017</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(700)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,427</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,727</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,650</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >435</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >110</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,195</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash receipts (payments), net</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >700</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,883)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(110)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,293)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(339)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(339)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, March 31, 2018</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,311</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,290</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >April 1, 2017</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, December 31, 2016</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,803</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,657</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,460</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,095</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,478</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,710</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >17,283</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash payments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3,581)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,578)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,774)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,933)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(714)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >276</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(438)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable (receivable), April 1, 2017</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(200)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,593</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >12,372</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Balance payable was included in accounts payable and accrued liabilities</font><font style='font-family:Times New Roman;font-size:8pt;' > and balance receivable was included in accounts receivable</font><font style='font-family:Times New Roman;font-size:8pt;' > on</font><font style='font-family:Times New Roman;font-size:8pt;' > the consolidated balance sheet</font><font style='font-family:Times New Roman;font-size:8pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table summarizes costs incurred </font><font style='font-family:Times New Roman;font-size:10pt;' >since the inception of the Value Creation Plan to </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >recruitment,</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consulting</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >impairments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >retention and</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >fees and</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >and facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >termination</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >temporary</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >closure costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >labor costs</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >34,938</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >14,816</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >20,679</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >70,433</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash payments, net</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(10,046)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,260)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(20,679)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(43,985)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(23,581)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >423</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(23,158)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,311</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,290</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:0pt;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:</font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cost of goods sold</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >100</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >372</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Selling, general and administrative expenses</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >313</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >11,438</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other expense</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,782</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,473</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,195</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >17,283</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(1</font><font style='font-family:Times New Roman;font-size:8pt;' >) </font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;' >F</font><font style='font-family:Times New Roman;font-size:8pt;' >acility</font><font style='font-family:Times New Roman;font-size:8pt;' > closure costs, including inventory write-downs, </font><font style='font-family:Times New Roman;font-size:8pt;' >recorded in cost of goods sold were allocated to the Consumer Products operating segment.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(2)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;' >Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs</font><font style='font-family:Times New Roman;font-size:8pt;' > recorded in selling, general and administrative expenses were allocated to Corporate Services.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(3)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:8pt;' >, asset impairment</font><font style='font-family:Times New Roman;font-size:8pt;' >, lease obligation</font><font style='font-family:Times New Roman;font-size:8pt;' > and employee termination costs recorded in other expense were allocated as follows: </font><font style='font-family:Times New Roman;font-size:8pt;' > Raw Material Sourcing and Supply operating segment - $</font><font style='font-family:Times New Roman;font-size:8pt;' >0.3</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $nil)</font><font style='font-family:Times New Roman;font-size:8pt;' >; Consumer Products operating segment - $</font><font style='font-family:Times New Roman;font-size:8pt;' >1.3</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $4.7 million)</font><font style='font-family:Times New Roman;font-size:8pt;' >; and Corporate Services - $</font><font style='font-family:Times New Roman;font-size:8pt;' >0.1</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $0.8 million).</font></p><p style='text-align:justify;line-height:12pt;' ></p></div> <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Net unrealized gains/(losses) recorded in</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >accumulated other comprehensive loss were as follows</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >December 30, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Currency translation adjustment</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,627)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(6,963)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash flow hedges, net of income taxes</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >402</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(305)</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:top;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(5,225)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,268)</font></td></tr></table></div> -305000 402000 -5627000 -6963000 86810000 85929000 86810000 85929000 1984184 0 0 0 0 1940000 -13338000 1967000 -6330000 0 0 11333333 234090000 236637000 2416000 -120000 -1693000 -4969000 109729000 109533000 1700000 1591000 86864115 707000 1242000 3511000 0 269000 2416000 0 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;' >3</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >.</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' > </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;' >Value Creation Plan</font></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Overview</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >On October 7, 2016, the Company entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, &#8220;Oaktree&#8221;). On October 7, 2016, Oaktree invested $85.0 million through the </font><font style='font-family:Times New Roman;font-size:10pt;' >purchase of cumulative, non-participating Series A Preferred Stock (the &#8220;Preferred Stock&#8221;) of the Company&#8217;s wholly-owned subsidiary, SunOpta Foods Inc. (&#8220;SunOpta Foods&#8221;) </font><font style='font-family:Times New Roman;font-size:10pt;' >(see note </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >7</font><font style='font-family:Times New Roman;font-size:10pt;' >). </font><font style='font-family:Times New Roman;font-size:10pt;' >Following the strategic partnership, with the assistance of Oaktre</font><font style='font-family:Times New Roman;font-size:10pt;' >e, the Company conducted a thorough review of its operations, management and governance, with the objective of maximizing the Company&#8217;s ability to deliver long-term value to its shareholders. As a product of this review, the Company developed a Value Crea</font><font style='font-family:Times New Roman;font-size:10pt;' >tion Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Company engaged third-party management consulting firms to support the design and implementation of the Value Crea</font><font style='font-family:Times New Roman;font-size:10pt;' >tion Plan</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In 2016, measures</font><font style='font-family:Times New Roman;font-size:10pt;' > taken under the Value Creation Plan included the closure of the Company&#8217;s San Bernardino, California, juice facility and the Company&#8217;s soy extraction facility in Heuvelton, New York</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In </font><font style='font-family:Times New Roman;font-size:10pt;' >2017, further measures </font><font style='font-family:Times New Roman;font-size:10pt;' >t</font><font style='font-family:Times New Roman;font-size:10pt;' >aken under th</font><font style='font-family:Times New Roman;font-size:10pt;' >e Value Creation Plan includ</font><font style='font-family:Times New Roman;font-size:10pt;' >ed</font><font style='font-family:Times New Roman;font-size:10pt;' > the exits from flexible resealable pouch and nutrition bar product lines and operat</font><font style='font-family:Times New Roman;font-size:10pt;' >ions (see below)</font><font style='font-family:Times New Roman;font-size:10pt;' >, as well as the consolidation of grain operations and related closure of a grain-handling facility in Moorhead, Minnesota, an</font><font style='font-family:Times New Roman;font-size:10pt;' >d the consolidation o</font><font style='font-family:Times New Roman;font-size:10pt;' >f roasted snack operations and related planned</font><font style='font-family:Times New Roman;font-size:10pt;' > closure of the Company&#8217;s Wahpeton, North Dakota, roasting </font><font style='font-family:Times New Roman;font-size:10pt;' >facility</font><font style='font-family:Times New Roman;font-size:10pt;' >. In addition, the Company made organizational changes within its management and executive teams, along with new leadersh</font><font style='font-family:Times New Roman;font-size:10pt;' >ip to many corporate, commercial and operational functions. The Company also added new employees in the areas of quality, sales, marketing, operations and engineering, and made capital investments at several of its manufacturing facilities to enhance food</font><font style='font-family:Times New Roman;font-size:10pt;' > safety and production efficiencies</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Flexible Resealable Pouch</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;' > and Nutrition Bar Product Lines and Operations</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >As the flexible resealable pouch and nutrition bar product lines and operations do not qualify for presentation as discontinued operations, op</font><font style='font-family:Times New Roman;font-size:10pt;' >erating results from these activities were reported in continuing operations on the consolidated statements of operations for the current and comparative period. Revenues from sales of these product lines were $2.6 million and $15.4 million </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively. Revenues reported </font><font style='font-family:Times New Roman;font-size:10pt;' >from these operations </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, related to the delivery of remaining inventories to customers under existing contracts at the time of exit. Losses bef</font><font style='font-family:Times New Roman;font-size:10pt;' >ore income taxes from these operations were $1.3 million and $2.0 million </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, respectively. </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, the loss before income taxes from these operations included </font><font style='font-family:Times New Roman;font-size:10pt;' >the </font><font style='font-family:Times New Roman;font-size:10pt;' >recognition of the </font><font style='font-family:Times New Roman;font-size:10pt;' >remaining lease obligation of $1.3 million related to the vacated nutrition bar processing facility. These operations are included in the Consumer Products operating segment</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Costs Incurred Under the Value Creation Plan</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following </font><font style='font-family:Times New Roman;font-size:10pt;' >table summarizes costs incurred </font><font style='font-family:Times New Roman;font-size:10pt;' >under the</font><font style='font-family:Times New Roman;font-size:10pt;' > Value Creation Plan </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(a)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(b)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(c)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >recruitment,</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consulting</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >impairments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >retention and</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >fees and</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >and facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >termination</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >temporary</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >closure costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >labor costs</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable (receivable), December 30, 2017</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(700)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,427</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,727</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,650</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >435</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >110</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,195</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash receipts (payments), net</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >700</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,883)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(110)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,293)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(339)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(339)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, March 31, 2018</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,311</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,290</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >April 1, 2017</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, December 31, 2016</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,803</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,657</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,460</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >4,095</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,478</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,710</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >17,283</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash payments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3,581)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2,578)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1,774)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(7,933)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(714)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >276</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(438)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable (receivable), April 1, 2017</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(200)</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >9,593</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >12,372</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Balance payable was included in accounts payable and accrued liabilities</font><font style='font-family:Times New Roman;font-size:8pt;' > and balance receivable was included in accounts receivable</font><font style='font-family:Times New Roman;font-size:8pt;' > on</font><font style='font-family:Times New Roman;font-size:8pt;' > the consolidated balance sheet</font><font style='font-family:Times New Roman;font-size:8pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(a)</font><font style='font-family:Times New Roman;font-size:10pt;' > Asset impairments and facility closure costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, costs incurred included the remaining lease obligation related to the vacated nutrition bar processing facility, </font><font style='font-family:Times New Roman;font-size:10pt;' >and an additional impairment loss related to the Wahpeton roasting facility</font><font style='font-family:Times New Roman;font-size:10pt;' >. Net cash receipts included proceeds on the sale of nutrition ba</font><font style='font-family:Times New Roman;font-size:10pt;' >r equipment. Balance payable as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >, represents the remaining nutrition bar facility lease obligation, which extends until December 2020. The Company is pursuing potential parties interested in assuming the facility lease. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:18pt;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, cost incurred included</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >the </font><font style='font-family:Times New Roman;font-size:10pt;' >early </font><font style='font-family:Times New Roman;font-size:10pt;' >buyout</font><font style='font-family:Times New Roman;font-size:10pt;' > of the San Bernardino equipment leases</font><font style='font-family:Times New Roman;font-size:10pt;' >, as well as closure costs related to the</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >San Bernardino facility</font><font style='font-family:Times New Roman;font-size:10pt;' > prior to its disposal to the landlord. In exchange for the San Bernardino assets, the </font><font style='font-family:Times New Roman;font-size:10pt;' >facility landlord released the Company from its remaining property lease obligation and paid </font><font style='font-family:Times New Roman;font-size:10pt;' >proceeds of $0.2 million</font><font style='font-family:Times New Roman;font-size:10pt;' > in December 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' > </font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(b)</font><font style='font-family:Times New Roman;font-size:10pt;' > Employee recruitment, retention and termination costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Represents </font><font style='font-family:Times New Roman;font-size:10pt;' >third-party</font><font style='font-family:Times New Roman;font-size:10pt;' > recruiting fees </font><font style='font-family:Times New Roman;font-size:10pt;' >incurred to identify and retain new employees;</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >reimbursement of relocation costs for new employees; </font><font style='font-family:Times New Roman;font-size:10pt;' >retention</font><font style='font-family:Times New Roman;font-size:10pt;' > and signing</font><font style='font-family:Times New Roman;font-size:10pt;' > bonuses accrued for certain</font><font style='font-family:Times New Roman;font-size:10pt;' > existing</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >and new </font><font style='font-family:Times New Roman;font-size:10pt;' >employees</font><font style='font-family:Times New Roman;font-size:10pt;' >;</font><font style='font-family:Times New Roman;font-size:10pt;' > and severance </font><font style='font-family:Times New Roman;font-size:10pt;' >benefits, net of forfeitures of stock-based awards, </font><font style='font-family:Times New Roman;font-size:10pt;' >and legal co</font><font style='font-family:Times New Roman;font-size:10pt;' >sts related to employee termination</font><font style='font-family:Times New Roman;font-size:10pt;' >s. Retention bonuses were paid out in the first quarter of 2018 to employees who remained employed by the Company through December 31, 2017, or other specified dates. Certain employees were entitled to pro-rata payouts </font><font style='font-family:Times New Roman;font-size:10pt;' >of their retention bonuses if their employment terminated earlier than their </font><font style='font-family:Times New Roman;font-size:10pt;' >retention payment date.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >(c)</font><font style='font-family:Times New Roman;font-size:10pt;' > Consulting fees and temporary labor costs</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >Represents the cost for third-party consultants and temporary labor engaged to support the </font><font style='font-family:Times New Roman;font-size:10pt;' >design and </font><font style='font-family:Times New Roman;font-size:10pt;' >imple</font><font style='font-family:Times New Roman;font-size:10pt;' >mentation of the Value Creation Plan</font><font style='font-family:Times New Roman;font-size:10pt;' >. These efforts were substantially completed during fiscal 2017.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table summarizes costs incurred </font><font style='font-family:Times New Roman;font-size:10pt;' >since the inception of the Value Creation Plan to </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >:</font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Employee</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Calibri;font-size:11pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:2;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Asset</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >recruitment,</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Consulting</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >impairments</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >retention and</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >fees and</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >and facility</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >termination</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >temporary</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >closure costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >costs</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >labor costs</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:10.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:10.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Costs incurred and charged to expense</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >34,938</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >14,816</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >20,679</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >70,433</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cash payments, net</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(10,046)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(13,260)</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(20,679)</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(43,985)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Non-cash adjustments</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(23,581)</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >423</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(23,158)</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:233.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:233.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Balance payable, March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,311</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,979</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >-</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >3,290</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;margin-left:0pt;' >For the quarters ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > and </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:10pt;' >, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:</font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Cost of goods sold</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >100</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >372</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Selling, general and administrative expenses</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >313</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >11,438</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:369pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:369pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Other expense</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1,782</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >5,473</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:335.25pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:335.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >2,195</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >17,283</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(1</font><font style='font-family:Times New Roman;font-size:8pt;' >) </font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;' >F</font><font style='font-family:Times New Roman;font-size:8pt;' >acility</font><font style='font-family:Times New Roman;font-size:8pt;' > closure costs, including inventory write-downs, </font><font style='font-family:Times New Roman;font-size:8pt;' >recorded in cost of goods sold were allocated to the Consumer Products operating segment.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(2)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;' >Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs</font><font style='font-family:Times New Roman;font-size:8pt;' > recorded in selling, general and administrative expenses were allocated to Corporate Services.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:8pt;margin-left:18pt;' >(3)</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >For the quarter ended</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:8pt;' >, asset impairment</font><font style='font-family:Times New Roman;font-size:8pt;' >, lease obligation</font><font style='font-family:Times New Roman;font-size:8pt;' > and employee termination costs recorded in other expense were allocated as follows: </font><font style='font-family:Times New Roman;font-size:8pt;' > Raw Material Sourcing and Supply operating segment - $</font><font style='font-family:Times New Roman;font-size:8pt;' >0.3</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $nil)</font><font style='font-family:Times New Roman;font-size:8pt;' >; Consumer Products operating segment - $</font><font style='font-family:Times New Roman;font-size:8pt;' >1.3</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $4.7 million)</font><font style='font-family:Times New Roman;font-size:8pt;' >; and Corporate Services - $</font><font style='font-family:Times New Roman;font-size:8pt;' >0.1</font><font style='font-family:Times New Roman;font-size:8pt;' > million</font><font style='font-family:Times New Roman;font-size:8pt;' > </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >(</font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >April 1, 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > &#8211; $0.8 million).</font></p><p style='text-align:justify;line-height:12pt;' ></p></div> 573000 -134000 707000 1242000 0 1242000 <div><p style='text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;font-style:italic;margin-left:0pt;' >Recent Accounting Pronouncements</font></p><p style='text-align:left;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0pt;' >Adoption of </font><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;' >New Accounting Standard</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >As at December 31, 2017 (the first day of fiscal 2018), the Company adopted Accounting Standards Update (&#8220;ASU&#8221;) 2014-09, &#8220;Revenue from Contracts with Customers (Topic 606)&#8221;</font><font style='font-family:Times New Roman;font-size:10pt;' > (&#8220;ASC Topic 606&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' >, which superseded all previous revenue recognition guidance under U.S. GAAP. Under this new standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to</font><font style='font-family:Times New Roman;font-size:10pt;' > which the company expects to be entitled in exchange for those goods or services. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The</font><font style='font-family:Times New Roman;font-size:10pt;' > Company analyzed its significant customer contracts to determine the effects of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >. In particular, the Company assessed under the new guidance whether its</font><font style='font-family:Times New Roman;font-size:10pt;' > contracts with customers to produce certain consumer-packaged goods would </font><font style='font-family:Times New Roman;font-size:10pt;' >require</font><font style='font-family:Times New Roman;font-size:10pt;' > the Company to recognize revenue over time versus at a point in time, based on whether the given product has an alternative use and whether there is an enforceable right to</font><font style='font-family:Times New Roman;font-size:10pt;' > payment under the contract for product produced to date. Based on its assessment, the Company concluded that it does not satisfy the criteria to recognize revenue over time. Accordingly, the Company continues to recognize revenue at a point in time cons</font><font style='font-family:Times New Roman;font-size:10pt;' >istent with its previous policies and processes, which is typically when title and physical possession of the product has transferred to the customer. The Company also transacts with certain customers on a bill-and-hold basis, </font><font style='font-family:Times New Roman;font-size:10pt;' >whereby the Company bills a </font><font style='font-family:Times New Roman;font-size:10pt;' >customer for product to be delivered at a later date</font><font style='font-family:Times New Roman;font-size:10pt;' >. Prior to the adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >, the Company deferred the recognition of revenue related to these bill-and-hold arrangements, as the arrangements did not typically include a fixed delivery sched</font><font style='font-family:Times New Roman;font-size:10pt;' >ule. As this criterion is no longer a consideration under </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >, these arrangements now qualify for revenue recognition at the point in time that the customer obtains control of the </font><font style='font-family:Times New Roman;font-size:10pt;' >goods</font><font style='font-family:Times New Roman;font-size:10pt;' >. With the exception of bill-and-hold arrangements, the adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' > did not have a significant impact on the Company&#8217;s consolidated financial statements and revenue recognition practices, or its internal controls. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The Company adopted </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC </font><font style='font-family:Times New Roman;font-size:10pt;' >Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >using the modified retrospective approach, which resulted in</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >a cumulative-effect adjustment of $0.3 million to opening accumulated deficit as at December 31, 2017, related to</font><font style='font-family:Times New Roman;font-size:10pt;' > the recognition of $4.8 million of bill-and-hold revenue deferred under</font><font style='font-family:Times New Roman;font-size:10pt;' > previous U.S. GAAP</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >The change in the timing of the recognition of bill-and-hold revenue did not have a material impact on the</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Company&#8217;s </font><font style='font-family:Times New Roman;font-size:10pt;' >consolidated statement of operations</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >for the quarter ended</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' > or consolidated </font><font style='font-family:Times New Roman;font-size:10pt;' >balance sheet </font><font style='font-family:Times New Roman;font-size:10pt;' >as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >March 31, 2018</font><font style='font-family:Times New Roman;font-size:10pt;' >. </font></p><p style='text-align:justify;line-height:12pt;' ></p></div><p style='line-height:20pt;' /><div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >See note </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;' >2</font><font style='font-family:Times New Roman;font-size:10pt;' > for </font><font style='font-family:Times New Roman;font-size:10pt;' >additional </font><font style='font-family:Times New Roman;font-size:10pt;' >disclosures under </font><font style='font-family:Times New Roman;font-size:10pt;' >ASC Topic 606</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0pt;' >Recently Issued Accounting Standards, Not Adopted </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;text-decoration:underline;' >as at </font><font style='font-family:Times New Roman;font-size:10pt;background-color:#FFFF00;text-decoration:underline;' >March 31, 2018</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In June 2016, the </font><font style='font-family:Times New Roman;font-size:10pt;' >Financial Accounting Standards Board (&#8220;</font><font style='font-family:Times New Roman;font-size:10pt;' >FASB</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8221;)</font><font style='font-family:Times New Roman;font-size:10pt;' > issued ASU 2016-13, &#8220;Measurement of Credit Losses on Financial Instruments&#8221;, which requires measurement and recognition of expected versus incurred credit losses for most financial assets. ASU 2016-13 is effective for interim and annual periods beginning </font><font style='font-family:Times New Roman;font-size:10pt;' >after December 15, 2019. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;, a comprehensive new standard that amends various aspects</font><font style='font-family:Times New Roman;font-size:10pt;' > of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, includi</font><font style='font-family:Times New Roman;font-size:10pt;' >ng interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consoli</font><font style='font-family:Times New Roman;font-size:10pt;' >dated financial statements</font><font style='font-family:Times New Roman;font-size:10pt;' >. The</font><font style='font-family:Times New Roman;font-size:10pt;' > Company anticipates that upon adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >ASU 2016-02,</font><font style='font-family:Times New Roman;font-size:10pt;' > it will recognize</font><font style='font-family:Times New Roman;font-size:10pt;' > significant </font><font style='font-family:Times New Roman;font-size:10pt;' >additional </font><font style='font-family:Times New Roman;font-size:10pt;' >right-to-use </font><font style='font-family:Times New Roman;font-size:10pt;' >assets and corresponding</font><font style='font-family:Times New Roman;font-size:10pt;' > lease</font><font style='font-family:Times New Roman;font-size:10pt;' > liabilities </font><font style='font-family:Times New Roman;font-size:10pt;' >on its balance sheet</font><font style='font-family:Times New Roman;font-size:10pt;' >, related to existing operating leases</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;line-height:12pt;' ></p></div> 1362347 657946 84659 360075000 302581000 25151000 40500000 -11650000 3493000 86007000 100000 313000 1782000 372000 11438000 5473000 202000 8000 4368000 -710000 575000 -8904000 2690000 0 202000 0 1266000 45000 0 45000 0 0 8000 56000 1210000 0 0 4368000 0 0 0 -8904000 0 0 2690000 3838000 0 3838000 0 -11320000 0 0 -11320000 2690000 0 0 2690000 0 -710000 0 -1060000 0 -1060000 0 0 575000 0 4000 0 4000 0 240000 35000 205000 0 738000 0 738000 0 0 0 0 0 716 235992 292019 -15279000 -8904000 -15130000 0 0 2016-02-11 350000000 100000000 2021-02-10 On February 11, 2016, the Company entered into a five-year credit agreement for a senior secured asset-based revolving credit facility with a syndicate of banks in the maximum aggregate principal amount of $350.0 million, subject to borrowing base capacity (the “Global Credit Facility”). The Global Credit Facility is used to support the working capital and general corporate needs of the Company’s global operations, in addition to funding future strategic initiatives. The Global Credit Facility also includes borrowing capacity available for letters of credit and provides for borrowings on same-day notice, including in the form of swingline loans. Subject to customary borrowing conditions and the agreement of any such lenders to provide such increased commitments, the Company may request to increase the total lending commitments under the Global Credit Facility to a maximum aggregate principal amount not to exceed $450.0 million. Outstanding principal amounts under the Global Credit Facility are repayable in full on the maturity date of February 10, 2021. Individual borrowings under the Global Credit Facility have terms of six months or less and bear interest based on various reference rates, including prime rate and LIBOR plus an applicable margin. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR, and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set quarterly based on average borrowing availability for the preceding fiscal quarter. As at March 31, 2018, the weighted-average interest rate on the facilities was 3.93%. On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”). The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again. Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings. Obligations under the Global Credit Facility are guaranteed by substantially all of the Company’s subsidiaries and, subject to certain exceptions, such obligations are secured by first priority liens on substantially all of the assets of the Company. The Global Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to create liens on assets; sell assets and enter into sale and leaseback transactions; pay dividends, prepay junior lien and unsecured indebtedness and make other restricted payments; incur additional indebtedness and make guarantees; make investments, loans or advances, including acquisitions; and engage in mergers or consolidations. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the credit agreement. 0.0393 2016-10-20 231000000 2022-10-09 0.104 On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due 2022 (the “Notes”). As at March 31, 2018, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. Debt issuance costs are recorded as a reduction against the principal amount of the Notes and are being amortized over the six-year term of the Notes. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017. The Notes will mature on October 9, 2022. Giving effect to the amortization of debt issuance costs, the effective interest rate on the Notes is approximately 10.4% per annum. 85000 85000000 6000000 At any time, the Holders may exchange their shares of Preferred Stock, in whole or in part, into the number of Common Shares equal to, per share of Preferred Stock, the quotient of the liquidation preference divided by $7.50 (such price, the “Exchange Price” and such quotient, the “Exchange Rate”). As at March 31, 2018, the aggregate shares of Preferred Stock outstanding were exchangeable into 11,333,333 Common Shares. The Exchange Price is subject to certain anti-dilution adjustments, including a weighted-average adjustment for issuances of Common Shares below the Exchange Price, provided that the Exchange Price may not be lower than $7.00 (subject to adjustment in certain circumstances). SunOpta Foods may cause the Holders to exchange all of the Preferred Stock into a number of Common Shares based on the applicable Exchange Price if (i) fewer than 10% of the shares of Preferred Stock issued on the Closing Date remain outstanding, or (ii) on or after the third anniversary of the Closing Date, the average volume-weighted average price of the Common Shares during the then preceding 20 trading day period is greater than 200% of the Exchange Price. In connection with the Subscription Agreement, the Company issued 11,333,333 Special Shares, Series 1 (the “Special Voting Shares”) to the Investors, which entitle the Investors to one vote per Special Voting Share on all matters submitted to a vote of the holders of Common Shares, together as a single class, subject to certain exceptions. Additional Special Voting Shares will be issued, or existing Special Voting Shares will be redeemed, as necessary to ensure that the aggregate number of Special Voting Shares outstanding is equal to the number of shares of Preferred Stock outstanding from time to time multiplied by the Exchange Rate in effect at such time. As at March 31, 2018, 11,333,333 Special Voting Shares were issued and outstanding, which represented an approximate 11.5% voting interest in the Company. The Special Voting Shares are not transferable and the voting rights associated with the Special Voting Shares will terminate upon the transfer of the Preferred Stock to a third party, other than a controlled affiliate of the Investors. The Investors are entitled to designate up to two nominees for election to the Board of Directors of the Company (the “Board”) and have the right to designate one individual to attend meetings of the Board as a non-voting observer, subject to the Investors maintaining certain levels of beneficial ownership of Common Shares on an as-exchanged basis. 278968000 291332000 33684000 38699000 28288000 38272000 2190000 225570000 700000 250000 4095000 714000 3581000 3478000 2578000 -276000 9710000 1774000 0 1650000 -700000 339000 110000 110000 0 435000 2883000 0 200000 -9593000 -2979000 -1311000 0 -1979000 2195000 17283000 0 12800000 15200000 400000 400000 -400000 -900000 11100000 214500000 800000 -200000 -600000 7417000 3000000 227760000 5102000 216081000 215782000 5651000 3000000 228033000 7716000 2017-09-19 15000000 2500000 2019-03-31 Prior to October 9, 2018, SunOpta Foods may redeem some or all of the Notes at any time and from time to time at a “make-whole” redemption price set forth in the indenture governing the Notes. On or after October 9, 2018, SunOpta Foods may redeem the Notes, in whole or in part, at any time at the redemption prices equal to 107.125% through October 8, 2019, 104.750% from October 9, 2019 through October 8, 2020, 102.375% from October 9, 2020 through October 8, 2021 and at par thereafter, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In addition, prior to October 9, 2018, SunOpta Foods may, on one or more occasions, redeem up to 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price equal to 109.500% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. At any time prior to October 9, 2018, SunOpta Foods may also redeem, during each twelve-month period beginning on October 20, 2016, up to 10% of the aggregate principal amount of the Notes at a price equal to 103.000% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In the event of a change of control, SunOpta Foods will be required to make an offer to repurchase the Notes at 101.000% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Notes are secured by second-priority liens on substantially all of the assets that secure the credit facilities provided under the Global Credit Facility, subject to certain exceptions and permitted liens. The Notes are senior secured obligations and rank equally in right of payment with SunOpta Foods’ existing and future senior debt and senior in right of payment to any future subordinated debt. The Notes are effectively subordinated to debt under the Global Credit Facility and any future indebtedness secured on a first priority basis. The Notes are initially guaranteed on a senior secured second-priority basis by the Company and each of its subsidiaries (other than SunOpta Foods) that guarantees indebtedness under the Global Credit Facility, subject to certain exceptions. The Notes are subject to covenants that, among other things, limit the Company’s ability to (i) incur additional debt or issue preferred stock; (ii) pay dividends and make certain types of investments and other restricted payments; (iii) create liens; (iv) enter into transactions with affiliates; (v) sell assets; and (vi) create restrictions on the ability of restricted subsidiaries to pay dividends, make loans or advances or transfer assets to the Company, SunOpta Foods or any guarantor of the Notes. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the indenture governing the Notes. In addition, the indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the indenture, certain payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the trustee or holders of at least 25% in principal amount of the outstanding Notes may declare the principal of and accrued and unpaid interest on, if any, all the Notes to be due and payable. As at March 31, 2018, the estimated fair value of the outstanding Notes was approximately $240 million, based on quoted prices of recent over-the-counter transactions (Level 2). 7500000 323000 279000 -1700000 -267000 0 0 -1700000 0 0 0 0 -267000 0 0 300000 1000 -6330000 -13338000 -0.07 -0.16 -0.07 -0.16 -7268000 241921000 354978000 3228000 2228000 225805000 28006000 -89291000 -7268000 1575000 308899000 86757000 -1700000 -240000 0 0 -1700000 0 0 0 0 -240000 0 0 0 0 0 931000 311000 0 0 162000 0 82000 -244000 303000 533000 -1700000 -1700000 <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;background-color:#FFFF00;margin-left:0pt;color:#000000;' >2</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >. Revenue</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The Company sources, processes and packages organic and natural food products, including organic raw commodities and value-added ingredients, specialty and organic</font><font style='font-family:Times New Roman;font-size:10pt;' > grains and seeds, and consumer-ready beverage, frozen fruit and fruit snack products. The Company&#8217;s customers include retailers, foodservice operators, branded food companies and food manufacturers. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Revenue is recognized when performance obligations u</font><font style='font-family:Times New Roman;font-size:10pt;' >nder the terms of a contract with a customer are satisfied, which is upon the transfer of control of the contracted goods. Except for goods sold under bill-and-hold arrangements, control is transferred when title and physical possession of the product has</font><font style='font-family:Times New Roman;font-size:10pt;' > transferred to the customer, which is at the point in time that product is shipped from the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s facilities or delivered to a specified destination, depending on the terms of the contract, and the Company has a present right to payment. Under bill-a</font><font style='font-family:Times New Roman;font-size:10pt;' >nd-hold arrangements</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >whereby the Company bills a customer for product to be delivered at a later date&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;' >control typically transfers when the product is ready for physical transfer to the customer, and the Company has a present right to payment. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >A perfor</font><font style='font-family:Times New Roman;font-size:10pt;' >mance obligation is a promise within a contract to transfer distinct goods to the customer. A contract with a customer may involve multiple products and/or multiple delivery dates, with the transfer of each product at each delivery date being considered a</font><font style='font-family:Times New Roman;font-size:10pt;' > distinct performance obligation</font><font style='font-family:Times New Roman;font-size:10pt;' >, as each of the Company&#8217;s products has standalone utility to the customer</font><font style='font-family:Times New Roman;font-size:10pt;' >. In these cases, the contract</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s transaction price is allocated to each performance obligation </font><font style='font-family:Times New Roman;font-size:10pt;' >based on relative standalone selling prices, </font><font style='font-family:Times New Roman;font-size:10pt;' >and recog</font><font style='font-family:Times New Roman;font-size:10pt;' >nized as revenue when each individual product is transferred to the customer. Other promises in the contract</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;' >for example, the promise to provide quality assurance testing to ensure the product meets specification and is fit for its intended use</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8212;</font><font style='font-family:Times New Roman;font-size:10pt;' >are not se</font><font style='font-family:Times New Roman;font-size:10pt;' >parable from the promise to deliver goods and are therefore not considered distinct. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. Consideration is typically determined based </font><font style='font-family:Times New Roman;font-size:10pt;' >on a fixed unit price for the quantity of product transferred. Certain contracts may give rise to an element of variable consideration in the form of rebates or discounts. For contracts involving variable consideration, the Company estimates the transact</font><font style='font-family:Times New Roman;font-size:10pt;' >ion price based on the amount of consideration to which it expects to be entitled. These estimates are determined based on historical experience and the expected outcome of the variable consideration, and are updated as new information becomes available, </font><font style='font-family:Times New Roman;font-size:10pt;' >including actual claims paid, which indicate an estimate is not indicative of the expected results. Changes to these estimates are recorded in the period the adjustment is identified. The Company does not typically grant customers a general right of retu</font><font style='font-family:Times New Roman;font-size:10pt;' >rn for goods transferred, but will generally accept returns of product for quality-related issues. The cost of satisfying this promise of quality is accounted for as an assurance-type warranty obligation rather than variable consideration. The Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s </font><font style='font-family:Times New Roman;font-size:10pt;' >contracts do not typically include any significant payment terms, as payment is normally due shortly after the time of transfer. </font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Within the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s Global Ingredients operating segment, </font><font style='font-family:Times New Roman;font-size:10pt;' >arrangements with customers are in the form of written sales cont</font><font style='font-family:Times New Roman;font-size:10pt;' >racts, specifying the quantity and timing of goods to be delivered. </font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >The du</font><font style='font-family:Times New Roman;font-size:10pt;' >ration of </font><font style='font-family:Times New Roman;font-size:10pt;' >these </font><font style='font-family:Times New Roman;font-size:10pt;' >sales contracts is typically one year or less based on crop-year cycles, and may involve multiple delivery dates over the course of the contract. The Company has el</font><font style='font-family:Times New Roman;font-size:10pt;' >ected not to disclose the value of remaining performance obligations for contracts with an original duration of one year or less. Some contracts may extend beyond one year</font><font style='font-family:Times New Roman;font-size:10pt;' >; however, for these contracts, the Company expects to satisfy substantially all of </font><font style='font-family:Times New Roman;font-size:10pt;' >the remaining performance obligations within the next 12 months</font><font style='font-family:Times New Roman;font-size:10pt;' >. For contracts involving the delivery of raw commodities or organic ingredients, the Company evaluated whether it is acting as the principal (whereby revenues are reported on a gross basis) o</font><font style='font-family:Times New Roman;font-size:10pt;' >r agent (whereby revenues are reported on a net basis). The Company determined that for these contracts it is </font><font style='font-family:Times New Roman;font-size:10pt;' >the</font><font style='font-family:Times New Roman;font-size:10pt;' > principal, since the Company is primarily responsible for fulfilling the promise to deliver the goods to customers. That is, the Company con</font><font style='font-family:Times New Roman;font-size:10pt;' >trols access to the goods through purchase commitments with selected suppliers, and bears responsibility and potential financial risk for quality-related issues related to the delivered product. In addition, the Company has discretion in establishing pric</font><font style='font-family:Times New Roman;font-size:10pt;' >es for the product.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >Within the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s Consumer Products operating segment, contracts are typically represented by short-term, binding purchase orders from customers, identifying the quantity and pricing for products to be transferred. Customer orders </font><font style='font-family:Times New Roman;font-size:10pt;' >may be issued under long-term master supply arrangements. On their own, these master supply arrangements are typically not considered contracts for purposes of revenue recognition, as they do not create enforceable rights and obligations regarding the qua</font><font style='font-family:Times New Roman;font-size:10pt;' >ntity</font><font style='font-family:Times New Roman;font-size:10pt;' >, pricing</font><font style='font-family:Times New Roman;font-size:10pt;' > or timing of goods to be transferred (for example, by imposing minimum purchase obligations on the part of the customer).</font><font style='font-family:Times New Roman;font-size:10pt;' > Certain master supply arrangements provide for the </font><font style='font-family:Times New Roman;font-size:10pt;' >transfer of product</font><font style='font-family:Times New Roman;font-size:10pt;' > on a bill-and-hold basis at the specific request of t</font><font style='font-family:Times New Roman;font-size:10pt;' >he customer. Goods are</font><font style='font-family:Times New Roman;font-size:10pt;' > produced under these bill-and-hold arrangements to meet individual customer specifications, and, therefore, are</font><font style='font-family:Times New Roman;font-size:10pt;' > identifiable as belonging to the customer</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > and cannot be directed to another customer</font><font style='font-family:Times New Roman;font-size:10pt;' >.</font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' > </font></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The timing of the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s rev</font><font style='font-family:Times New Roman;font-size:10pt;' >enue recognition, customer billings and cash collections, does not result in significant unbilled receivables (contract assets) or customer advances (contract liabilities) on the consolidated balance sheet. Contract costs, such as sales commissions, are g</font><font style='font-family:Times New Roman;font-size:10pt;' >enerally expensed as incurred given the short-term nature of the associated contracts.</font></p><p style='text-align:justify;line-height:12pt;' ></p><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table presents a disaggregation of the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s revenues based on categories used by the Company to evaluate sales performance:</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Global Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Internationally-sourced organic ingredients</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >102,267</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >84,641</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >North American-sourced grains and seeds</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >34,064</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >42,001</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total Global Ingredients</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >136,331</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >126,642</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Consumer Products</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Beverage products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,250</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >81,242</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Frozen fruit products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >77,471</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >98,330</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Snack products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >13,600</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >23,817</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total Consumer Products</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >176,321</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >203,389</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Total revenues</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >312,652</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >330,031</font></td></tr></table></div><p style='line-height:20pt;' /><div><ul style='margin-top:0pt;' ><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. </font></li><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes individually quick frozen (&#8220;IQF&#8221;) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. </font></li><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes fruit snack offerings, as well as flexible resealable pouch and nutrition bar products, wh</font><font style='font-family:Times New Roman;font-size:8pt;' >ich were exited in 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > (see note </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >3</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' >. </font></li></ul></div> <div><p style='text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:0pt;' >The following table presents a disaggregation of the Company</font><font style='font-family:Times New Roman;font-size:10pt;' >&#8217;</font><font style='font-family:Times New Roman;font-size:10pt;' >s revenues based on categories used by the Company to evaluate sales performance:</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > </font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12.75pt;' ><td style='width:11.25pt;border-top-style:solid;border-top-width:2;border-left-style:solid;border-left-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td colspan='2' rowspan='1' style='width:135pt;border-top-style:solid;border-top-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:135pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Quarter ended</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >March 31, 2018</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >April 1, 2017</font></td></tr><tr style='height:12.75pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >$</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Global Ingredients</font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Internationally-sourced organic ingredients</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >102,267</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >84,641</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >North American-sourced grains and seeds</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >34,064</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >42,001</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total Global Ingredients</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >136,331</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >126,642</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Consumer Products</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Beverage products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(1)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >85,250</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >81,242</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Frozen fruit products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(2)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >77,471</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >98,330</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Snack products</font><sup><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >(3)</font></sup></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >13,600</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >23,817</font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >Total Consumer Products</font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >176,321</font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >203,389</font></td></tr><tr style='height:3.95pt;' ><td style='width:11.25pt;border-left-style:solid;border-left-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:11.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:11.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:200.25pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:200.25pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-top-style:solid;border-top-width:1;border-right-style:solid;border-right-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td></tr><tr style='height:12.75pt;' ><td colspan='4' rowspan='1' style='width:234pt;border-bottom-style:solid;border-bottom-width:2;border-left-style:solid;border-left-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:234pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >Total revenues</font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:justify;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' ></font></td><td style='width:67.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >312,652</font></td><td style='width:67.5pt;border-right-style:solid;border-right-width:2;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:67.5pt;' ><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >330,031</font></td></tr></table></div><p style='line-height:20pt;' /><div><ul style='margin-top:0pt;' ><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. </font></li><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes individually quick frozen (&#8220;IQF&#8221;) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. </font></li><li style='list-style:decimal;text-align:justify;margin-top:0pt;margin-bottom:0pt;' ><font style='font-family:Times New Roman;font-size:8pt;' >Includes fruit snack offerings, as well as flexible resealable pouch and nutrition bar products, wh</font><font style='font-family:Times New Roman;font-size:8pt;' >ich were exited in 2017</font><font style='font-family:Times New Roman;font-size:8pt;' > (see note </font><font style='font-family:Times New Roman;font-size:8pt;background-color:#FFFF00;' >3</font><font style='font-family:Times New Roman;font-size:8pt;' >)</font><font style='font-family:Times New Roman;font-size:8pt;' >. </font></li></ul></div> 254000 0 0 254000 0 0 102267000 34064000 85250000 77471000 13600000 84641000 42001000 81242000 98330000 23817000 For the quarter ended March 31, 2018, the loss before income taxes from these operations included the recognition of the remaining lease obligation of $1.3 million related to the vacated nutrition bar processing facility. These operations are included in the Consumer Products operating segment. 2600000 -1300000 2293000 339000 -3727000 700000 0 -4427000 -3460000 0 -1657000 -1803000 7933000 438000 299 3577000 3600000 On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”). The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again. Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017. 200000 For so long as the Investors beneficially own or control at least 50% of the Preferred Stock issued on the Closing Date, including any corresponding Common Shares into which such Preferred Stock are exchanged, the Investors will be entitled to (i) participation rights with respect to future equity offerings of the Company, and (ii) governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries. Cumulative preferred dividends accrue daily on the Preferred Stock at an annualized rate of 8.0% prior to October 5, 2025 and 12.5% thereafter, in each case of the liquidation preference (subject to an increase of 1.0% per quarter, up to a maximum rate of 5.0% per quarter on the occurrence of certain events of non-compliance). Prior to October 5, 2025, SunOpta Foods may pay dividends in cash or elect, in lieu of paying cash, to add the amount that would have been paid to the liquidation preference. After October 4, 2025, the failure to pay dividends in cash will be an event of non-compliance. The Preferred Stock ranks senior to the shares of common stock of SunOpta Foods with respect to dividend rights and rights on the distribution of assets on any liquidation, winding up or dissolution of the Company or SunOpta Foods. At any time on or after the fifth anniversary of the Closing Date, SunOpta Foods may redeem all of the Preferred Stock for an amount, per share of Preferred Stock, equal to the value of the liquidation preference at such time. The carrying value of the Preferred Stock is being accreted to the redemption amount of $85.0 million through charges to retained earnings/accumulated deficit over the period preceding the fifth anniversary of the Closing Date, which accretion amounted to $0.3 million and $0.2 million for the quarters ended March 31, 2018 and April 1, 2017, respectively. In connection with the Subscription Agreement, the Company agreed to, among other things (i) ensure SunOpta Foods has sufficient funds to pay its obligations under the terms of the Preferred Stock and (ii) grant each holder of Preferred Stock (the “Holder”) the right to exchange the Preferred Stock for shares of common stock of the Company (the “Common Shares”). The Preferred Stock is non-participating with the Common Shares in dividends and undistributed earnings of the Company. 1550000 3723000 On November 20, 2017, Treehouse Foods, Inc., several of its related entities, and its insurer filed a lawsuit against the Company in the Circuit Court of Cook County, Illinois titled Treehouse Foods, Inc. et al. v. SunOpta Grains and Food, Inc. The Company was served with the Summons and Complaint on January 24, 2018, and the plaintiffs filed an Amended Complaint on April 23, 2018. The plaintiffs allege economic damages resulting from the Company’s 2016 voluntary recall of certain roasted sunflower kernel products due to the potential for Listeria monocytogenes contamination. The case includes claims for breach of express and implied warranty, negligence, strict liability, and indemnity seeking $16.2 million in damages. There are no allegations of personal injury. The Company intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of this claim, nor can it estimate the amount of loss, or range of loss, if any, that may result from this claim. 1251000 15400000 -2000000 -11320000 0 0 -11398000 0 214000 0 0 -4363000 0 -99000 -435000 0 -435000 0 1800000 16200000 34938000 10046000 23581000 14816000 13260000 -423000 20679000 20679000 0 70433000 43985000 23158000 -3290000 -12372000 On October 7, 2016, the Company entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, “Oaktree”). On October 7, 2016, Oaktree invested $85.0 million through the purchase of cumulative, non-participating Series A Preferred Stock (the “Preferred Stock”) of the Company’s wholly-owned subsidiary, SunOpta Foods Inc. (“SunOpta Foods”) (see note ##Pref). Following the strategic partnership, with the assistance of Oaktree, the Company conducted a thorough review of its operations, management and governance, with the objective of maximizing the Company’s ability to deliver long-term value to its shareholders. As a product of this review, the Company developed a Value Creation Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Company engaged third-party management consulting firms to support the design and implementation of the Value Creation Plan. Effective the first quarter of 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. Revenues and gross profit related to these operations were $3.4 million and $0.6 million, respectively, for the quarter ended March 31, 2018, compared with $3.6 million and $0.6 million, respectively, for the quarter ended April 1, 2017. The segment information presented below for the quarter ended April 1, 2017 has been restated to reflect this realignment.

F acility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

For the quarter ended March 31, 2018 , asset impairment , lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $ 0.3 million ( April 1, 2017 – $nil) ; Consumer Products operating segment - $ 1.3 million ( April 1, 2017 – $4.7 million) ; and Corporate Services - $ 0.1 million ( April 1, 2017 – $0.8 million).

For the quarter ended March 31, 2018 , included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, r eflect ed the accretion for the time value of money. ( S ee note 9 . )

For the quarter ended April 1, 2017 , cost incurred included the early buyout of the San Bernardino equipment leases , as well as closure costs related to the San Bernardino facility prior to its disposal to the landlord. In exchange for the San Bernardino assets, the facility landlord released the Company from its remaining property lease obligation and paid proceeds of $0.2 million in December 2017 .

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Document and Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 04, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Document Period End Date Mar. 31, 2018  
Amendment Flag false  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Entity Registrant Name SunOpta Inc.  
Entity Central Index Key 0000351834  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Current Fiscal Year End Date --12-29  
Entity Filer Category Large Accelerated Filer  
Entity Well Known Seasoned Issuer Yes  
Trading Symbol STKL  
Entity Common Stock Shares Outstanding   86,864,115
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Consolidated Statements of Operations    
Revenues $ 312,652 $ 330,031
Cost of goods sold 278,968 291,332
Gross profit 33,684 38,699
Selling, general and administrative expenses 28,288 38,272
Intangible asset amortization 2,771 2,803
Other expense, net (402) 5,443
Foreign exchange (gain) loss 962 580
Earnings from continuing operations before the following 2,065 (8,399)
Interest expense, net 8,220 7,754
Earnings (loss) from continuing operations before income taxes (6,155) (16,153)
Income Tax Expense (Benefit) (1,693) (4,969)
Income Loss From Discontinued Operations Net Of Tax Abstract    
Net Loss (4,462) (11,184)
Earnings (loss) attributable to non-controlling interests (99) 214
Earnings (loss) attributable to SunOpta Inc. (4,363) (11,398)
Dividends and accretion on Series A Preferred Stock (1,967) (1,940)
Earnings (Loss) attributable to common shareholders $ (6,330) $ (13,338)
Earnings (loss) per share    
Basic $ (0.07) $ (0.16)
Diluted $ (0.07) $ (0.16)
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Consolidated Statements of Comprehensive Earnings    
Earnings (loss) $ (4,462) $ (11,184)
Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax 573 1,242
Reclassification adjustment for loss included in earnings 134 0
Net changes related to cash flow hedges 707 1,242
Currency translation adjustment 1,456 598
Other comprehensive earnings (loss), net of income taxes 2,163 1,840
Comprehensive earnings (loss) (2,299) (9,344)
Comprehensive earnings (loss) attributable to non-controlling interests 21 518
Comprehensive earnings (loss) attributable to SunOpta Inc $ (2,320) $ (9,862)
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Current assets    
Cash and cash equivalents $ 2,924 $ 3,228
Accounts receivable 143,420 125,152
Inventories 334,481 354,978
Prepaid expenses and other current assets 38,379 33,213
Current income taxes recoverable 9,078 12,006
Assets, Current, Total 528,282 528,577
Property, Plant and Equipment 164,518 163,624
Goodwill 109,729 109,533
Intangible Assets 169,317 172,059
Deferred income taxes 363 363
Other assets 7,678 8,017
Assets, Total 979,887 982,173
Current liabilities    
Bank indebtedness 236,637 234,090
Accounts payable and accrued liabilities 162,682 161,364
Customer and other deposits 3,499 4,901
Income taxes payable 1,854 1,351
Other current liabilities 628 818
Current portion of long-term debt 2,190 2,228
Current portion of long-term liabilities 8,904 5,300
Liabilities, Current, Total 416,394 410,052
Long-term debt 225,570 225,805
Long-term liabilities 2,367 8,352
Deferred income taxes 14,867 15,850
Liabilities, Total 659,198 660,059
Preferred shares of a subsidiary company held for sale 80,460 80,193
Sunopta Inc Shareholders Equity [Abstract]    
Common Stock, Value, Outstanding 309,575 308,899
Additional paid in capital 29,650 28,006
Retained earnings (accumulated deficit) (95,367) (89,291)
Accumulated other comprehensive income (loss) (5,225) (7,268)
Stockholders' Equity Attributable to Parent, Total 238,633 240,346
Non-controlling interest 1,596 1,575
Total Equity 240,229 241,921
Liabilities and Equity, Total $ 979,887 $ 982,173
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Balance Sheet (parentheticals) - $ / shares
Mar. 31, 2018
Dec. 30, 2017
Consolidated Balance Sheet    
Common Stock Shares Issued 86,840,122 86,757,334
Common Stock, Shares Authorized 86,840,122 86,757,334
Common Stock, No Par Value $ 0 $ 0
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2016 $ 369,413 $ 300,426 $ 25,522 $ 53,838 $ (13,104) $ 2,731
Balance, shares at Dec. 31, 2016   85,744        
Employee Stock Purchase Plan, Value 94 $ 94 0 0 0 0
Employee Stock Purchase Plan, Shares   15        
Exercise of options 1,000 $ 2,061 (1,061) 0 0 0
Exercise of options, shares   248        
Dividends Preferred Stock Cash (1,700) $ 0 0 (1,700) 0 0
Preferred Stock Accretion To Redemption Value1 (240) 0 0 (240) 0 0
Stock based compensation 852 0 852 0 0 0
Earnings (loss) (11,184) 0 0 (11,398) 0 214
Currency translation adjustment 598 0 0 0 605 (7)
Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax 1,242 0 0 0 931 311
Minority Interest Decrease From Redemptions 0 0 (162) 0 (82) 244
Balance at Apr. 01, 2017 360,075 $ 302,581 25,151 40,500 (11,650) 3,493
Balance, shares at Apr. 01, 2017   86,007        
AOCI Including Portion Attributable To Non controlling Interest Tax 533          
Balance at Dec. 30, 2017 241,921 $ 308,899 28,006 (89,291) (7,268) 1,575
Balance, shares at Dec. 30, 2017   86,757        
Employee Stock Purchase Plan, Value 136 $ 136 0 0 0 0
Employee Stock Purchase Plan, Shares   23        
Exercise of options 13 $ 540 (527) 0 0 0
Exercise of options, shares   60        
Dividends Preferred Stock Cash (1,700) $ 0 0 (1,700) 0 0
Preferred Stock Accretion To Redemption Value1 (267) 0 0 (267) 0 0
Stock based compensation 2,171 0 2,171 0 0 0
Earnings (loss) (4,462) 0 0 (4,363) 0 (99)
Currency translation adjustment 1,456 0 0 0 1,336 120
Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax 707 0 0 0 707 0
Balance at Mar. 31, 2018 240,229 $ 309,575 29,650 (95,367) (5,225) 1,596
Balance, shares at Mar. 31, 2018   86,840        
Cumulative Effect Of New Accounting Principle In Period Of Adoption 254 $ 0 $ 0 $ 254 $ 0 $ 0
AOCI Including Portion Attributable To Non controlling Interest Tax $ 303          
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Operating Activities    
Earnings (loss) $ (4,462) $ (11,184)
Items not affecting cash    
Depreciation and amortization 8,141 8,180
Amortization of Debt Issuance Costs 608 486
Deferred income taxes (1,286) (6,092)
Stock-based compensation 2,171 852
Unrealized Loss (Gain) on Derivatives Instrument 1,521 38
Fair Value of Contingent Consideration (2,416) 0
Impairment of long-lived assets (339) (3,723)
Other 1 143
Changes in non-cash working capital, net of business acquired 2,889 23,335
Net Cash Provided by (Used in) Operating Activities, Total 7,506 19,481
Investing activities    
Purchases of property, plant and equipment (6,735) (9,024)
Proceeds From Sale Of Property Plant And Equipment 700 250
Minority Interest Decrease From Redemptions   0
Other 0 110
Net cash flows from investing activities (6,035) (8,664)
Financing activities    
Increase (decrease) under line of credit facilities 309 (7,341)
Repayment of long-term debt (522) (527)
Payments Of Dividends (1,700) (1,591)
Proceeds From Stock Options Exercised 149 1,094
Other (40) (202)
Net Cash Provided By (Used In) Financing Activities (1,804) (8,567)
Foreign exchange gain (loss) on cash held in a foreign currency 29 10
Increase (decrease) in cash and cash equivalents during the period (304) 2,260
Discontinued operations cash activity included above:    
Cash and cash equivalents - beginning of the period 3,228 1,251
Cash and cash equivalents - end of the period 2,924 3,511
Noncash Investing And Financing Items [Abstract]    
Accrued Dividends $ (1,700) $ (1,700)
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Description of Business and Significant Accounting Policies
3 Months Ended
Mar. 31, 2018
Basis Of Presentation Fiscal Year End And New Accounting Pronouncements Disclosure [Abstract]  
Organization Consolidation And Presentation Of Financial Statements Disclosure [Text Block]

1. Description of Business and Significant Accounting Policies

SunOpta Inc. (the “Company” or “SunOpta”) was incorporated under the laws of Canada on November 13, 1973. The Company operates businesses focused on a healthy products portfolio that promotes sustainable well-being. The Company’s two reportable segments, Global Ingredients and Consumer Products, operate in the natural, organic and specialty food sectors and utilize an integrated business model to bring cost-effective and quality products to market.

Basis of Presentation

The interim consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended, and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, these condensed interim consolidated financial statements do not include all of the disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included and all such adjustments are of a normal, recurring nature. Operating results for the quarter ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year ending December 29, 2018 or for any other period. The interim consolidated financial statements include the accounts of the Company and its subsidiaries, and have been prepared on a basis consistent with the annual consolidated financial statements for the year ended December 30, 2017, except as described below under “Recent Accounting Pronouncements Adoption of New Accounting Standards. For further information, refer to the consolidated financial statements, and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017.

Fiscal Year

The fiscal year of the Company consists of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017.

Recent Accounting Pronouncements

Adoption of New Accounting Standard

As at December 31, 2017 (the first day of fiscal 2018), the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC Topic 606”), which superseded all previous revenue recognition guidance under U.S. GAAP. Under this new standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

The Company analyzed its significant customer contracts to determine the effects of ASC Topic 606. In particular, the Company assessed under the new guidance whether its contracts with customers to produce certain consumer-packaged goods would require the Company to recognize revenue over time versus at a point in time, based on whether the given product has an alternative use and whether there is an enforceable right to payment under the contract for product produced to date. Based on its assessment, the Company concluded that it does not satisfy the criteria to recognize revenue over time. Accordingly, the Company continues to recognize revenue at a point in time consistent with its previous policies and processes, which is typically when title and physical possession of the product has transferred to the customer. The Company also transacts with certain customers on a bill-and-hold basis, whereby the Company bills a customer for product to be delivered at a later date. Prior to the adoption of ASC Topic 606, the Company deferred the recognition of revenue related to these bill-and-hold arrangements, as the arrangements did not typically include a fixed delivery schedule. As this criterion is no longer a consideration under ASC Topic 606, these arrangements now qualify for revenue recognition at the point in time that the customer obtains control of the goods. With the exception of bill-and-hold arrangements, the adoption of ASC Topic 606 did not have a significant impact on the Company’s consolidated financial statements and revenue recognition practices, or its internal controls.

The Company adopted ASC Topic 606 using the modified retrospective approach, which resulted in a cumulative-effect adjustment of $0.3 million to opening accumulated deficit as at December 31, 2017, related to the recognition of $4.8 million of bill-and-hold revenue deferred under previous U.S. GAAP. The change in the timing of the recognition of bill-and-hold revenue did not have a material impact on the Company’s consolidated statement of operations for the quarter ended March 31, 2018 or consolidated balance sheet as at March 31, 2018.

See note 2 for additional disclosures under ASC Topic 606.

Recently Issued Accounting Standards, Not Adopted as at March 31, 2018

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected versus incurred credit losses for most financial assets. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. The Company anticipates that upon adoption of ASU 2016-02, it will recognize significant additional right-to-use assets and corresponding lease liabilities on its balance sheet, related to existing operating leases.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Revenue
3 Months Ended
Mar. 31, 2018
Revenue From Contract With Customer [Abstract]  
Revenue From Contract With Customer [Text Block]

2. Revenue

The Company sources, processes and packages organic and natural food products, including organic raw commodities and value-added ingredients, specialty and organic grains and seeds, and consumer-ready beverage, frozen fruit and fruit snack products. The Company’s customers include retailers, foodservice operators, branded food companies and food manufacturers.

Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which is upon the transfer of control of the contracted goods. Except for goods sold under bill-and-hold arrangements, control is transferred when title and physical possession of the product has transferred to the customer, which is at the point in time that product is shipped from the Companys facilities or delivered to a specified destination, depending on the terms of the contract, and the Company has a present right to payment. Under bill-and-hold arrangementswhereby the Company bills a customer for product to be delivered at a later date—control typically transfers when the product is ready for physical transfer to the customer, and the Company has a present right to payment.

A performance obligation is a promise within a contract to transfer distinct goods to the customer. A contract with a customer may involve multiple products and/or multiple delivery dates, with the transfer of each product at each delivery date being considered a distinct performance obligation, as each of the Company’s products has standalone utility to the customer. In these cases, the contracts transaction price is allocated to each performance obligation based on relative standalone selling prices, and recognized as revenue when each individual product is transferred to the customer. Other promises in the contractfor example, the promise to provide quality assurance testing to ensure the product meets specification and is fit for its intended useare not separable from the promise to deliver goods and are therefore not considered distinct.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. Consideration is typically determined based on a fixed unit price for the quantity of product transferred. Certain contracts may give rise to an element of variable consideration in the form of rebates or discounts. For contracts involving variable consideration, the Company estimates the transaction price based on the amount of consideration to which it expects to be entitled. These estimates are determined based on historical experience and the expected outcome of the variable consideration, and are updated as new information becomes available, including actual claims paid, which indicate an estimate is not indicative of the expected results. Changes to these estimates are recorded in the period the adjustment is identified. The Company does not typically grant customers a general right of return for goods transferred, but will generally accept returns of product for quality-related issues. The cost of satisfying this promise of quality is accounted for as an assurance-type warranty obligation rather than variable consideration. The Companys contracts do not typically include any significant payment terms, as payment is normally due shortly after the time of transfer.

Within the Companys Global Ingredients operating segment, arrangements with customers are in the form of written sales contracts, specifying the quantity and timing of goods to be delivered. The duration of these sales contracts is typically one year or less based on crop-year cycles, and may involve multiple delivery dates over the course of the contract. The Company has elected not to disclose the value of remaining performance obligations for contracts with an original duration of one year or less. Some contracts may extend beyond one year; however, for these contracts, the Company expects to satisfy substantially all of the remaining performance obligations within the next 12 months. For contracts involving the delivery of raw commodities or organic ingredients, the Company evaluated whether it is acting as the principal (whereby revenues are reported on a gross basis) or agent (whereby revenues are reported on a net basis). The Company determined that for these contracts it is the principal, since the Company is primarily responsible for fulfilling the promise to deliver the goods to customers. That is, the Company controls access to the goods through purchase commitments with selected suppliers, and bears responsibility and potential financial risk for quality-related issues related to the delivered product. In addition, the Company has discretion in establishing prices for the product.

Within the Companys Consumer Products operating segment, contracts are typically represented by short-term, binding purchase orders from customers, identifying the quantity and pricing for products to be transferred. Customer orders may be issued under long-term master supply arrangements. On their own, these master supply arrangements are typically not considered contracts for purposes of revenue recognition, as they do not create enforceable rights and obligations regarding the quantity, pricing or timing of goods to be transferred (for example, by imposing minimum purchase obligations on the part of the customer). Certain master supply arrangements provide for the transfer of product on a bill-and-hold basis at the specific request of the customer. Goods are produced under these bill-and-hold arrangements to meet individual customer specifications, and, therefore, are identifiable as belonging to the customer and cannot be directed to another customer.

The timing of the Companys revenue recognition, customer billings and cash collections, does not result in significant unbilled receivables (contract assets) or customer advances (contract liabilities) on the consolidated balance sheet. Contract costs, such as sales commissions, are generally expensed as incurred given the short-term nature of the associated contracts.

The following table presents a disaggregation of the Companys revenues based on categories used by the Company to evaluate sales performance:

Quarter ended
March 31, 2018April 1, 2017
$$
Global Ingredients
Internationally-sourced organic ingredients102,26784,641
North American-sourced grains and seeds34,06442,001
Total Global Ingredients136,331126,642
Consumer Products
Beverage products(1)85,25081,242
Frozen fruit products(2)77,47198,330
Snack products(3)13,60023,817
Total Consumer Products176,321203,389
Total revenues312,652330,031

  • Includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters.
  • Includes individually quick frozen (“IQF”) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use.
  • Includes fruit snack offerings, as well as flexible resealable pouch and nutrition bar products, which were exited in 2017 (see note 3).
XML 20 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Value Creation Plan
3 Months Ended
Mar. 31, 2018
Restructuring And Related Activities [Abstract]  
Restructuring And Related Activities Disclosure [Text Block]

3. Value Creation Plan

Overview

On October 7, 2016, the Company entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, “Oaktree”). On October 7, 2016, Oaktree invested $85.0 million through the purchase of cumulative, non-participating Series A Preferred Stock (the “Preferred Stock”) of the Company’s wholly-owned subsidiary, SunOpta Foods Inc. (“SunOpta Foods”) (see note 7). Following the strategic partnership, with the assistance of Oaktree, the Company conducted a thorough review of its operations, management and governance, with the objective of maximizing the Company’s ability to deliver long-term value to its shareholders. As a product of this review, the Company developed a Value Creation Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Company engaged third-party management consulting firms to support the design and implementation of the Value Creation Plan.

In 2016, measures taken under the Value Creation Plan included the closure of the Company’s San Bernardino, California, juice facility and the Company’s soy extraction facility in Heuvelton, New York.

In 2017, further measures taken under the Value Creation Plan included the exits from flexible resealable pouch and nutrition bar product lines and operations (see below), as well as the consolidation of grain operations and related closure of a grain-handling facility in Moorhead, Minnesota, and the consolidation of roasted snack operations and related planned closure of the Company’s Wahpeton, North Dakota, roasting facility. In addition, the Company made organizational changes within its management and executive teams, along with new leadership to many corporate, commercial and operational functions. The Company also added new employees in the areas of quality, sales, marketing, operations and engineering, and made capital investments at several of its manufacturing facilities to enhance food safety and production efficiencies.

Flexible Resealable Pouch and Nutrition Bar Product Lines and Operations

As the flexible resealable pouch and nutrition bar product lines and operations do not qualify for presentation as discontinued operations, operating results from these activities were reported in continuing operations on the consolidated statements of operations for the current and comparative period. Revenues from sales of these product lines were $2.6 million and $15.4 million for the quarters ended March 31, 2018 and April 1, 2017, respectively. Revenues reported from these operations for the quarter ended March 31, 2018, related to the delivery of remaining inventories to customers under existing contracts at the time of exit. Losses before income taxes from these operations were $1.3 million and $2.0 million for the quarters ended March 31, 2018 and April 1, 2017, respectively. For the quarter ended March 31, 2018, the loss before income taxes from these operations included the recognition of the remaining lease obligation of $1.3 million related to the vacated nutrition bar processing facility. These operations are included in the Consumer Products operating segment.

Costs Incurred Under the Value Creation Plan

The following table summarizes costs incurred under the Value Creation Plan for the quarters ended March 31, 2018 and April 1, 2017:

(a)(b)(c)
Employee
Assetrecruitment,Consulting
impairmentsretention andfees and
and facilityterminationtemporary
closure costscostslabor costsTotal
$$$$
March 31, 2018
Balance payable (receivable), December 30, 2017(1)(700)4,427-3,727
Costs incurred and charged to expense1,6504351102,195
Cash receipts (payments), net700(2,883)(110)(2,293)
Non-cash adjustments(339)--(339)
Balance payable, March 31, 2018(1)1,3111,979-3,290
April 1, 2017
Balance payable, December 31, 2016-1,8031,6573,460
Costs incurred and charged to expense4,0953,4789,71017,283
Cash payments(3,581)(2,578)(1,774)(7,933)
Non-cash adjustments(714)276-(438)
Balance payable (receivable), April 1, 2017(200)2,9799,59312,372

Balance payable was included in accounts payable and accrued liabilities and balance receivable was included in accounts receivable on the consolidated balance sheet.

(a) Asset impairments and facility closure costs

For the quarter ended March 31, 2018, costs incurred included the remaining lease obligation related to the vacated nutrition bar processing facility, and an additional impairment loss related to the Wahpeton roasting facility. Net cash receipts included proceeds on the sale of nutrition bar equipment. Balance payable as at March 31, 2018, represents the remaining nutrition bar facility lease obligation, which extends until December 2020. The Company is pursuing potential parties interested in assuming the facility lease.

For the quarter ended April 1, 2017, cost incurred included the early buyout of the San Bernardino equipment leases, as well as closure costs related to the San Bernardino facility prior to its disposal to the landlord. In exchange for the San Bernardino assets, the facility landlord released the Company from its remaining property lease obligation and paid proceeds of $0.2 million in December 2017.

(b) Employee recruitment, retention and termination costs

Represents third-party recruiting fees incurred to identify and retain new employees; reimbursement of relocation costs for new employees; retention and signing bonuses accrued for certain existing and new employees; and severance benefits, net of forfeitures of stock-based awards, and legal costs related to employee terminations. Retention bonuses were paid out in the first quarter of 2018 to employees who remained employed by the Company through December 31, 2017, or other specified dates. Certain employees were entitled to pro-rata payouts of their retention bonuses if their employment terminated earlier than their retention payment date.

(c) Consulting fees and temporary labor costs

Represents the cost for third-party consultants and temporary labor engaged to support the design and implementation of the Value Creation Plan. These efforts were substantially completed during fiscal 2017.

The following table summarizes costs incurred since the inception of the Value Creation Plan to March 31, 2018:

Employee
Assetrecruitment,Consulting
impairmentsretention andfees and
and facilityterminationtemporary
closure costscostslabor costsTotal
$$$$
Costs incurred and charged to expense34,93814,81620,67970,433
Cash payments, net(10,046)(13,260)(20,679)(43,985)
Non-cash adjustments(23,581)423-(23,158)
Balance payable, March 31, 20181,3111,979-3,290

For the quarters ended March 31, 2018 and April 1, 2017, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:

Quarter ended
March 31, 2018April 1, 2017
$$
Cost of goods sold(1)100372
Selling, general and administrative expenses(2)31311,438
Other expense(3)1,7825,473
2,19517,283

(1) Facility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

(2) Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

(3) For the quarter ended March 31, 2018, asset impairment, lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $0.3 million (April 1, 2017 – $nil); Consumer Products operating segment - $1.3 million (April 1, 2017 – $4.7 million); and Corporate Services - $0.1 million (April 1, 2017 – $0.8 million).

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements
3 Months Ended
Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivatives and Fair Value [Text Block]

4. Derivative Financial Instruments and Fair Value Measurements

The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018 and December 30, 2017:

March 31, 2018
Fair value
asset (liability)Level 1Level 2Level 3
$$$$
Commodity futures and forward contracts(1)
Current asset202-202-
Long-term asset45-45-
Current liability(1,266)(56)(1,210)-
Long-term liability(8)-(8)-
Inventories carried at market(2)4,368-4,368-
Forward foreign currency contracts(3)
Not designated as hedging instruments(710)-(710)-
Designated as hedging instruments575-575-
Contingent consideration(4)(8,904)--(8,904)
Embedded derivative2,690--2,690
December 30, 2017
Fair value
asset (liability)Level 1Level 2Level 3
$$$$
Commodity futures and forward contracts(1)
Current asset738-738-
Current liability(240)(35)(205)-
Long-term liability(4)-(4)-
Inventories carried at market(2)3,838-3,838-
Forward foreign currency contracts(3)
Not designated as hedging instruments(1,060)-(1,060)-
Designated as hedging instruments(435)-(435)-
Contingent consideration(4)(11,320)--(11,320)
Embedded derivative2,690--2,690

(1) Commodity futures and forward contracts

Represents exchange-traded commodity futures and forward commodity purchase and sale contracts. Exchange-traded futures are fair valued based on unadjusted quotes for identical assets priced in active markets and are classified as level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Local market adjustments use observable inputs or market transactions for similar assets or liabilities, and, as a result, are classified as level 2. Based on historical experience with the Company’s suppliers and customers, the Company’s own credit risk, and the Company’s knowledge of current market conditions, the Company does not view non-performance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts.

These exchange-traded commodity futures and forward commodity purchase and sale contracts are used as part of the Company’s risk management strategy, and represent economic hedges to limit risk related to fluctuations in the price of certain commodity grains, as well as the prices of cocoa and coffee. These contracts are not designated as hedges for accounting purposes. Gains and losses on changes in fair value of these contracts are included in cost of goods sold on the consolidated statement of operations. For the quarter ended March 31, 2018, the Company recognized a loss of $1.5 million (April 1, 2017loss of $0.0 million) related to changes in the fair value of these contracts. Unrealized gains on short-term contracts are included in other current assets; and unrealized losses on short-term and long-term contracts are included in other current liabilities and long-term liabilities, respectively, on the consolidated balance sheets.

As at March 31, 2018, the notional amounts of open commodity futures and forward purchase and sale contracts were as follows (in thousands of bushels):

Number of bushels purchased (sold)
CornSoybeans
Forward commodity purchase contracts799393
Forward commodity sale contracts(326)(899)
Commodity futures contracts(750)210

In addition, as at March 31, 2018, the Company had net open forward contracts to sell 716 lots (December 30, 2017 – 299 lots sold) of cocoa.

(2) Inventories carried at market

The fair value of grain inventories carried at market is determined using quoted market prices from the Chicago Board of Trade (“CBoT”), as adjusted for differences in local markets, and broker or dealer quotes. As at March 31, 2018, the Company had 235,992 bushels of commodity corn and 292,019 bushels of commodity soybeans included in inventories carried at market. The fair value of these inventories is included in level 2 of the fair value hierarchy, as there are observable quoted prices for similar assets in active markets. Gains and losses on these inventories are included in cost of goods sold on the consolidated statements of operations. Inventories carried at market are included in inventories on the consolidated balance sheets.

(3) Foreign forward currency contracts

As part of its risk management strategy, the Company enters into forward foreign exchange contracts to reduce its exposure to fluctuations in foreign currency exchange rates. For any open forward foreign exchange contracts at period end, the contract rate is compared to the forward rate, and a gain or loss is recorded. These contracts are included in level 2 of the fair value hierarchy, as the inputs used in making the fair value determination are derived from and are corroborated by observable market data. Certain of these forward foreign exchange contracts may be designated as cash flow hedges for accounting purposes, while other of these contracts represent economic hedges that are not designated as hedging instruments.

(i) Not designated as hedging instruments

As at March 31, 2018, the Company had open forward foreign exchange contracts to sell euros to buy U.S. dollars with a notional value of € 12.8 million ($ 15.2 million), and to sell British pounds to buy euros with a notional value of £ 0.4 million ( 0.4 million). As these contracts were not designated as hedging instruments, gains and losses on changes in the fair value of these contracts are included in foreign exchange loss or gain on the consolidated statement of operations. For the quarter ended March 31, 2018, the Company recognized a gain of $0.4 million (April 1, 2017loss of $0.9 million) related to changes in the fair value of these contracts. Unrealized gains and losses on these contracts are included in accounts receivable and accounts payable, respectively, on the consolidated balance sheets.

(ii) Designated as hedging instruments

As at March 31, 2018, the Company had net open forward foreign exchange contracts to sell U.S. dollars to buy Mexican pesos with a notional value of $ 11.1 million (M$ 214.5 million). These contracts were entered into as part of a hedging program to manage the variability of cash flows associated with a portion of forecasted purchases of raw fruit inventories denominated in Mexican pesos. As these contracts have been designated as hedging instruments, the effective portion of the gains and losses on changes in the fair value of these contracts is included in other comprehensive earnings and reclassified to cost of goods sold in the same period the hedged transaction affects earnings, which is upon the sale of the inventories. For the quarter ended March 31, 2018, the Company recognized a net unrealized gain in other comprehensive earnings of $0.8 million (April 1, 2017gain of $1.8 million) related to changes in the fair value of open contracts, and for the quarter ended March 31, 2018, the Company reclassified $0.2 million of realized losses on closed contracts from other comprehensive earnings to cost of goods sold. The Company expects to reclassify the $0.6 million amount of the unrealized losses recorded in accumulated other comprehensive loss as at March 31, 2018, to earnings over the next five months. Unrealized gains and losses on these contracts are included in other current assets and other current liabilities, respectively, on the consolidated balance sheets.

(4) Contingent consideration

The fair value measurement of contingent consideration arising from business acquisitions is determined using unobservable (level 3) inputs. These inputs include: (i) the estimated amount and timing of the projected cash flows on which the contingency is based; and (ii) the risk-adjusted discount rate used to calculate the present value of those cash flows. The table below presents a reconciliation of contingent consideration obligations for the quarter ended March 31, 2018 and April 1, 2017. These obligations are included in long-term liabilities (including the current portion thereof) on the consolidated balance sheets.

Quarter ended
March 31, 2018April 1, 2017
$$
Balance, beginning of period(11,320)(15,279)
Fair value adjustments(1)2,416(120)
Payments-269
Balance, end of period(8,904)(15,130)

(1) For the quarter ended March 31, 2018, included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, reflected the accretion for the time value of money. (See note 9.)

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Inventories
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]

5. Inventories

March 31, 2018December 30, 2017
$$
Raw materials and work-in-process257,407262,527
Finished goods74,19192,489
Company-owned grain10,7389,937
Inventory reserves(7,855)(9,975)
334,481354,978
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Bank Indebtedness and Long-Term Debt
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Bank Indebtedness And Long Term Debt [Text Block]

6. Bank Indebtedness and Long-Term Debt

March 31, 2018December 30, 2017
$$
Bank indebtedness:
Global Credit Facility(1)233,586230,502
Bulgarian credit facility3,0513,588
236,637234,090
Long-term debt:
Senior Secured Second Lien Notes, net of unamortized debt issuance costs
of $7,417 (December 30, 2017 - $7,716)(2)216,081215,782
Asset-backed term loan3,5773,600
Capital lease obligations5,1025,651
Other3,0003,000
227,760228,033
Less: current portion2,1902,228
225,570225,805

(1) Global Credit Facility

On February 11, 2016, the Company entered into a five-year credit agreement for a senior secured asset-based revolving credit facility with a syndicate of banks in the maximum aggregate principal amount of $350.0 million, subject to borrowing base capacity (the “Global Credit Facility”). The Global Credit Facility is used to support the working capital and general corporate needs of the Company’s global operations, in addition to funding future strategic initiatives. The Global Credit Facility also includes borrowing capacity available for letters of credit and provides for borrowings on same-day notice, including in the form of swingline loans. Subject to customary borrowing conditions and the agreement of any such lenders to provide such increased commitments, the Company may request to increase the total lending commitments under the Global Credit Facility to a maximum aggregate principal amount not to exceed $450.0 million. Outstanding principal amounts under the Global Credit Facility are repayable in full on the maturity date of February 10, 2021.

Individual borrowings under the Global Credit Facility have terms of six months or less and bear interest based on various reference rates, including prime rate and LIBOR plus an applicable margin. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR, and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set quarterly based on average borrowing availability for the preceding fiscal quarter. As at March 31, 2018, the weighted-average interest rate on the facilities was 3.93%.

On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”).

The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again.

Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings.

Obligations under the Global Credit Facility are guaranteed by substantially all of the Company’s subsidiaries and, subject to certain exceptions, such obligations are secured by first priority liens on substantially all of the assets of the Company.

The Global Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to create liens on assets; sell assets and enter into sale and leaseback transactions; pay dividends, prepay junior lien and unsecured indebtedness and make other restricted payments; incur additional indebtedness and make guarantees; make investments, loans or advances, including acquisitions; and engage in mergers or consolidations. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the credit agreement.

(2) Senior Secured Second Lien Notes

On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due 2022 (the “Notes”). As at March 31, 2018, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. Debt issuance costs are recorded as a reduction against the principal amount of the Notes and are being amortized over the six-year term of the Notes. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017. The Notes will mature on October 9, 2022. Giving effect to the amortization of debt issuance costs, the effective interest rate on the Notes is approximately 10.4% per annum.

Prior to October 9, 2018, SunOpta Foods may redeem some or all of the Notes at any time and from time to time at a “make-whole” redemption price set forth in the indenture governing the Notes. On or after October 9, 2018, SunOpta Foods may redeem the Notes, in whole or in part, at any time at the redemption prices equal to 107.125% through October 8, 2019, 104.750% from October 9, 2019 through October 8, 2020, 102.375% from October 9, 2020 through October 8, 2021 and at par thereafter, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In addition, prior to October 9, 2018, SunOpta Foods may, on one or more occasions, redeem up to 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price equal to 109.500% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. At any time prior to October 9, 2018, SunOpta Foods may also redeem, during each twelve-month period beginning on October 20, 2016, up to 10% of the aggregate principal amount of the Notes at a price equal to 103.000% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In the event of a change of control, SunOpta Foods will be required to make an offer to repurchase the Notes at 101.000% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The Notes are secured by second-priority liens on substantially all of the assets that secure the credit facilities provided under the Global Credit Facility, subject to certain exceptions and permitted liens. The Notes are senior secured obligations and rank equally in right of payment with SunOpta Foods’ existing and future senior debt and senior in right of payment to any future subordinated debt. The Notes are effectively subordinated to debt under the Global Credit Facility and any future indebtedness secured on a first priority basis. The Notes are initially guaranteed on a senior secured second-priority basis by the Company and each of its subsidiaries (other than SunOpta Foods) that guarantees indebtedness under the Global Credit Facility, subject to certain exceptions.

The Notes are subject to covenants that, among other things, limit the Company’s ability to (i) incur additional debt or issue preferred stock; (ii) pay dividends and make certain types of investments and other restricted payments; (iii) create liens; (iv) enter into transactions with affiliates; (v) sell assets; and (vi) create restrictions on the ability of restricted subsidiaries to pay dividends, make loans or advances or transfer assets to the Company, SunOpta Foods or any guarantor of the Notes. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the indenture governing the Notes. In addition, the indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the indenture, certain payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the trustee or holders of at least 25% in principal amount of the outstanding Notes may declare the principal of and accrued and unpaid interest on, if any, all the Notes to be due and payable.

As at March 31, 2018, the estimated fair value of the outstanding Notes was approximately $240 million, based on quoted prices of recent over-the-counter transactions (Level 2).

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Preferred Shares
3 Months Ended
Mar. 31, 2018
Temporary Equity [Abstract]  
Preferred Stock [Text Block]

7. Series A Preferred Stock

On October 7, 2016 (the “Closing Date”), the Company and SunOpta Foods entered into a subscription agreement (the “Subscription Agreement”) with Oaktree Organics, L.P. and Oaktree Huntington Investment Fund II, L.P. (collectively, the “Investors”). Pursuant to the Subscription Agreement, SunOpta Foods issued an aggregate of 85,000 shares of Preferred Stock to the Investors for consideration in the amount of $85.0 million. In connection with the issuance of the Preferred Stock, the Company incurred direct and incremental expenses of $6.0 million, which reduced the carrying value of the Preferred Stock. At any time on or after the fifth anniversary of the Closing Date, SunOpta Foods may redeem all of the Preferred Stock for an amount, per share of Preferred Stock, equal to the value of the liquidation preference at such time. The carrying value of the Preferred Stock is being accreted to the redemption amount of $85.0 million through charges to retained earnings/accumulated deficit over the period preceding the fifth anniversary of the Closing Date, which accretion amounted to $0.3 million and $0.2 million for the quarters ended March 31, 2018 and April 1, 2017, respectively.

In connection with the Subscription Agreement, the Company agreed to, among other things (i) ensure SunOpta Foods has sufficient funds to pay its obligations under the terms of the Preferred Stock and (ii) grant each holder of Preferred Stock (the “Holder”) the right to exchange the Preferred Stock for shares of common stock of the Company (the “Common Shares”). The Preferred Stock is non-participating with the Common Shares in dividends and undistributed earnings of the Company.

The Preferred Stock has a stated value and initial liquidation preference of $1,000 per share. Cumulative preferred dividends accrue daily on the Preferred Stock at an annualized rate of 8.0% prior to October 5, 2025 and 12.5% thereafter, in each case of the liquidation preference (subject to an increase of 1.0% per quarter, up to a maximum rate of 5.0% per quarter on the occurrence of certain events of non-compliance). Prior to October 5, 2025, SunOpta Foods may pay dividends in cash or elect, in lieu of paying cash, to add the amount that would have been paid to the liquidation preference. After October 4, 2025, the failure to pay dividends in cash will be an event of non-compliance. The Preferred Stock ranks senior to the shares of common stock of SunOpta Foods with respect to dividend rights and rights on the distribution of assets on any liquidation, winding up or dissolution of the Company or SunOpta Foods. For the quarters ended March 31, 2018 and April 1, 2017, the Company paid cash dividends on the Preferred Stock of $1.7 million, and, as at March 31, 2018, the Company had accrued unpaid dividends of $1.7 million, which were recorded in accounts payable and accrued liabilities on the consolidated balance sheet.

At any time, the Holders may exchange their shares of Preferred Stock, in whole or in part, into the number of Common Shares equal to, per share of Preferred Stock, the quotient of the liquidation preference divided by $7.50 (such price, the “Exchange Price” and such quotient, the “Exchange Rate”). As at March 31, 2018, the aggregate shares of Preferred Stock outstanding were exchangeable into 11,333,333 Common Shares. The Exchange Price is subject to certain anti-dilution adjustments, including a weighted-average adjustment for issuances of Common Shares below the Exchange Price, provided that the Exchange Price may not be lower than $7.00 (subject to adjustment in certain circumstances). SunOpta Foods may cause the Holders to exchange all of the Preferred Stock into a number of Common Shares based on the applicable Exchange Price if (i) fewer than 10% of the shares of Preferred Stock issued on the Closing Date remain outstanding, or (ii) on or after the third anniversary of the Closing Date, the average volume-weighted average price of the Common Shares during the then preceding 20 trading day period is greater than 200% of the Exchange Price.

In connection with the Subscription Agreement, the Company issued 11,333,333 Special Shares, Series 1 (the “Special Voting Shares”) to the Investors, which entitle the Investors to one vote per Special Voting Share on all matters submitted to a vote of the holders of Common Shares, together as a single class, subject to certain exceptions. Additional Special Voting Shares will be issued, or existing Special Voting Shares will be redeemed, as necessary to ensure that the aggregate number of Special Voting Shares outstanding is equal to the number of shares of Preferred Stock outstanding from time to time multiplied by the Exchange Rate in effect at such time. As at March 31, 2018, 11,333,333 Special Voting Shares were issued and outstanding, which represented an approximate 11.5% voting interest in the Company. The Special Voting Shares are not transferable and the voting rights associated with the Special Voting Shares will terminate upon the transfer of the Preferred Stock to a third party, other than a controlled affiliate of the Investors. The Investors are entitled to designate up to two nominees for election to the Board of Directors of the Company (the “Board”) and have the right to designate one individual to attend meetings of the Board as a non-voting observer, subject to the Investors maintaining certain levels of beneficial ownership of Common Shares on an as-exchanged basis. For so long as the Investors beneficially own or control at least 50% of the Preferred Stock issued on the Closing Date, including any corresponding Common Shares into which such Preferred Stock are exchanged, the Investors will be entitled to (i) participation rights with respect to future equity offerings of the Company, and (ii) governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2018
Accumulated Other Comprehensive Loss [Abstract]  
Comprehensive Income Note [Text Block]

8. Accumulated Other Comprehensive Loss

Net unrealized gains/(losses) recorded in accumulated other comprehensive loss were as follows:

March 31, 2018December 30, 2017
$$
Currency translation adjustment(5,627)(6,963)
Cash flow hedges, net of income taxes402(305)
(5,225)(7,268)
XML 26 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Expense (Income), Net
3 Months Ended
Mar. 31, 2018
Other Income And Expenses [Abstract]  
Other Income And Other Expense Disclosure [Text Block]

9. Other Expense (Income), Net

The components of other expense (income) were as follows:

Quarter ended
March 31, 2018April 1, 2017
$$
Increase (decrease) in fair value of contingent consideration (see note 4(4))(2,416)120
Impairment of long-lived assets and lease obligation costs(1)1,5503,723
Product withdrawal and recall costs(2)323279
Employee termination costs(3)2321,750
Other(91)(429)
(402)5,443

(1) Impairment of long-lived assets and lease obligation costs

For the quarter ended March 31, 2018, included the remaining lease obligation related to the vacated nutrition bar processing facility, and an additional impairment loss related to an agreement to sell the Wahpeton roasting facility.

For the quarter ended April 1, 2017, represented the loss on the disposal of the San Bernardino assets, including the cost of the early buyout of the equipment leases.

(2) Product withdrawal and recall costs

For the quarters ended March 31, 2018 and April 1, 2017, represented product withdrawal and recall costs that were not eligible for reimbursement under the Company’s insurance policies, including certain costs related to the voluntary recall of certain roasted sunflower kernel products initiated by the Company during the second quarter of 2016.

(3) Employee termination costs

For the quarters ended March 31, 2018 and April 1, 2017, represented severance benefits, net of forfeitures of stock-based awards, and legal costs incurred in connection with the Value Creation Plan (see note 3).

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Earnings Per Share
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

10. Loss Per Share

Basic and diluted loss per share were calculated as follows (shares in thousands):

Quarter ended
March 31, 2018April 1, 2017
Numerator for basic loss per share:
Loss attributable to SunOpta Inc.$(4,363)$(11,398)
Less: dividends and accretion on Series A Preferred Stock(1,967)(1,940)
Loss attributable to common shareholders$(6,330)$(13,338)
Denominator for basic loss per share:
Basic weighted-average number of shares outstanding86,81085,929
Basic loss per share$(0.07)$(0.16)
Numerator for diluted loss per share:
Loss attributable to SunOpta Inc.$(4,363)$(11,398)
Less: dividends and accretion on Series A Preferred Stock(1)(1,967)(1,940)
Loss attributable to common shareholders$(6,330)$(13,338)
Denominator for diluted loss per share:
Basic weighted-average number of shares outstanding86,81085,929
Dilutive effect of the following:
Series A Preferred Stock(1)--
Stock options and restricted stock units(2)--
Diluted weighted-average number of shares outstanding86,81085,929
Diluted loss per share$(0.07)$(0.16)

(1) For the quarters ended March 31, 2018, it was more dilutive to assume the Preferred Stock was not converted into Common Shares and, therefore, the numerator of the diluted loss per share calculation was not adjusted to add back the dividends and accretion on the Preferred Stock and the denominator was not adjusted to include 11,333,333 Common Shares issuable on an if-converted basis.

(2) For the quarters ended March 31, 2018 and April 1, 2017, stock options and restricted stock units to purchase or receive 657,946 and 84,659 Common Shares, respectively, were excluded from the calculation of diluted loss per share due to their anti-dilutive effect of reducing the loss per share. In addition, for the quarters ended March 31, 2018 and April 1, 2017, options to purchase 1,984,184 and 1,362,347 Common Shares, respectively, were anti-dilutive because the exercise prices of these options were greater than the average market price.

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supplemental Cash Flow Information
3 Months Ended
Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]  
Cash Flow Supplemental Disclosures [Text Block]

11. Supplemental Cash Flow Information

Quarter ended
March 31, 2018April 1, 2017
$$
Changes in non-cash working capital:
Accounts receivable(12,359)(11,127)
Inventories18,30226,358
Income tax recoverable/payable3,341(1,460)
Prepaid expenses and other current assets(5,376)(4,733)
Accounts payable and accrued liabilities38112,410
Customer and other deposits(1,400)1,887
2,88923,335
XML 29 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments And Contingencies Disclosure [Text Block]

12. Commitments and Contingencies

Employment Matter

On April 19, 2013, a class-action complaint, in the case titled De Jesus, et al. v. Frozsun, Inc. d/b/a Frozsun Foods, was filed against Sunrise Growers, Inc. (“Sunrise”) (then named Frozsun, Inc.) in California Superior Court, Santa Barbara County seeking damages, equitable relief and reasonable attorneys’ fees for alleged wage and hour violations. This case includes claims for failure to pay all hours worked, failure to pay overtime wages, meal and rest period violations, waiting-time penalties, improper wage statements and unfair business practices. The putative class includes approximately 10,000 non-exempt hourly employees from Sunrise’s production facilities in Santa Maria and Oxnard, California. The parties attended mediation on October 12, 2017, and reached a general agreement to resolve the matter on a class-wide basis. After negotiating the remaining details of the settlement, the parties sought preliminary approval of the settlement from the court in April 2018, and are awaiting the court order. The Company expects to recover the full amount payable under the settlement through insurance coverage and an escrow account established in connection with the Company’s acquisition of Sunrise.

Product Recall

On November 20, 2017, Treehouse Foods, Inc., several of its related entities, and its insurer filed a lawsuit against the Company in the Circuit Court of Cook County, Illinois titled Treehouse Foods, Inc. et al. v. SunOpta Grains and Food, Inc. The Company was served with the Summons and Complaint on January 24, 2018, and the plaintiffs filed an Amended Complaint on April 23, 2018. The plaintiffs allege economic damages resulting from the Company’s 2016 voluntary recall of certain roasted sunflower kernel products due to the potential for Listeria monocytogenes contamination. The case includes claims for breach of express and implied warranty, negligence, strict liability, and indemnity seeking $16.2 million in damages. There are no allegations of personal injury. The Company intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of this claim, nor can it estimate the amount of loss, or range of loss, if any, that may result from this claim.

Other Claims

In addition, various claims and potential claims arising in the normal course of business are pending against the Company. It is the opinion of management that these claims or potential claims are without merit and the amount of potential liability, if any, to the Company is not determinable. Management believes the final determination of these claims or potential claims will not materially affect the financial position or results of the Company.

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segmented Information
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

13. Segmented Information

The composition of the Company’s reportable segments is as follows:

  • Global Ingredients aggregates the Company’s North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments focused on the procurement and sale of organic commodities and value-added ingredients, and specialty and organic grains and seeds.

  • Consumer Products consists of three main commercial platforms: Healthy Beverages, Healthy Fruit and Healthy Snacks. Healthy Beverages includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters. Healthy Fruit includes IQF fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use. Healthy Snacks is focused on fruit snack offerings, and included flexible resealable pouch and nutrition bar product lines, which were exited in 2017.

Effective the first quarter of 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. Revenues and gross profit related to these operations were $3.4 million and $0.6 million, respectively, for the quarter ended March 31, 2018, compared with $3.6 million and $0.6 million, respectively, for the quarter ended April 1, 2017. The segment information presented below for the quarter ended April 1, 2017 has been restated to reflect this realignment.

In addition, Corporate Services provides a variety of management, financial, information technology, treasury and administration services to each of the Company’s operating segments from the Company’s headquarters in Mississauga, Ontario and administrative office in Edina, Minnesota.

When reviewing the operating results of the Company’s operating segments, management uses segment revenues from external customers and segment operating income/loss to assess performance and allocate resources. Segment operating income/loss excludes other income/expense items. In addition, interest expense and income taxes are not allocated to the operating segments.

Quarter ended
March 31, 2018
GlobalConsumer
IngredientsProductsConsolidated
$$$
Segment revenues from external customers136,331176,321312,652
Segment operating income3,1023,3166,418
Corporate Services(4,755)
Other income, net (see note 9)402
Interest expense, net(8,220)
Loss before income taxes(6,155)
Quarter ended
April 1, 2017
GlobalConsumer
IngredientsProductsConsolidated
$$$
Segment revenues from external customers126,642203,389330,031
Segment operating income4,2016,49810,699
Corporate Services(13,655)
Other expense, net (see note 9)(5,443)
Interest expense, net(7,754)
Loss before income taxes(16,153)
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accounting Policies (Policy)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Basis of Accounting [Text Block]

The interim consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended, and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, these condensed interim consolidated financial statements do not include all of the disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included and all such adjustments are of a normal, recurring nature. Operating results for the quarter ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year ending December 29, 2018 or for any other period. The interim consolidated financial statements include the accounts of the Company and its subsidiaries, and have been prepared on a basis consistent with the annual consolidated financial statements for the year ended December 30, 2017, except as described below under “Recent Accounting Pronouncements Adoption of New Accounting Standards. For further information, refer to the consolidated financial statements, and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017.

Fiscal Period [Policy Text Block]

The fiscal year of the Company consists of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017.

New Accounting Pronouncements Policy [Policy Text Block]

Recent Accounting Pronouncements

Adoption of New Accounting Standard

As at December 31, 2017 (the first day of fiscal 2018), the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC Topic 606”), which superseded all previous revenue recognition guidance under U.S. GAAP. Under this new standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

The Company analyzed its significant customer contracts to determine the effects of ASC Topic 606. In particular, the Company assessed under the new guidance whether its contracts with customers to produce certain consumer-packaged goods would require the Company to recognize revenue over time versus at a point in time, based on whether the given product has an alternative use and whether there is an enforceable right to payment under the contract for product produced to date. Based on its assessment, the Company concluded that it does not satisfy the criteria to recognize revenue over time. Accordingly, the Company continues to recognize revenue at a point in time consistent with its previous policies and processes, which is typically when title and physical possession of the product has transferred to the customer. The Company also transacts with certain customers on a bill-and-hold basis, whereby the Company bills a customer for product to be delivered at a later date. Prior to the adoption of ASC Topic 606, the Company deferred the recognition of revenue related to these bill-and-hold arrangements, as the arrangements did not typically include a fixed delivery schedule. As this criterion is no longer a consideration under ASC Topic 606, these arrangements now qualify for revenue recognition at the point in time that the customer obtains control of the goods. With the exception of bill-and-hold arrangements, the adoption of ASC Topic 606 did not have a significant impact on the Company’s consolidated financial statements and revenue recognition practices, or its internal controls.

The Company adopted ASC Topic 606 using the modified retrospective approach, which resulted in a cumulative-effect adjustment of $0.3 million to opening accumulated deficit as at December 31, 2017, related to the recognition of $4.8 million of bill-and-hold revenue deferred under previous U.S. GAAP. The change in the timing of the recognition of bill-and-hold revenue did not have a material impact on the Company’s consolidated statement of operations for the quarter ended March 31, 2018 or consolidated balance sheet as at March 31, 2018.

See note 2 for additional disclosures under ASC Topic 606.

Recently Issued Accounting Standards, Not Adopted as at March 31, 2018

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected versus incurred credit losses for most financial assets. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. The Company anticipates that upon adoption of ASU 2016-02, it will recognize significant additional right-to-use assets and corresponding lease liabilities on its balance sheet, related to existing operating leases.

XML 32 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Revenue (Tables)
3 Months Ended
Mar. 31, 2018
Disaggregation Of Revenue [Abstract]  
Disaggregation Of Revenue [Table Text Block]

The following table presents a disaggregation of the Companys revenues based on categories used by the Company to evaluate sales performance:

Quarter ended
March 31, 2018April 1, 2017
$$
Global Ingredients
Internationally-sourced organic ingredients102,26784,641
North American-sourced grains and seeds34,06442,001
Total Global Ingredients136,331126,642
Consumer Products
Beverage products(1)85,25081,242
Frozen fruit products(2)77,47198,330
Snack products(3)13,60023,817
Total Consumer Products176,321203,389
Total revenues312,652330,031

  • Includes aseptically-packaged products including non-dairy beverages, broths and teas; refrigerated premium juices; and shelf-stable juices and functional waters.
  • Includes individually quick frozen (“IQF”) fruits for retail; IQF and bulk frozen fruit for foodservice; and custom fruit preparations for industrial use.
  • Includes fruit snack offerings, as well as flexible resealable pouch and nutrition bar products, which were exited in 2017 (see note 3).
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Value Creation Plan (Tables)
3 Months Ended
Mar. 31, 2018
Restructuring And Related Activities [Abstract]  
Schedule Of Restructuring And Related Costs [Table Text Block]

The following table summarizes costs incurred under the Value Creation Plan for the quarters ended March 31, 2018 and April 1, 2017:

(a)(b)(c)
Employee
Assetrecruitment,Consulting
impairmentsretention andfees and
and facilityterminationtemporary
closure costscostslabor costsTotal
$$$$
March 31, 2018
Balance payable (receivable), December 30, 2017(1)(700)4,427-3,727
Costs incurred and charged to expense1,6504351102,195
Cash receipts (payments), net700(2,883)(110)(2,293)
Non-cash adjustments(339)--(339)
Balance payable, March 31, 2018(1)1,3111,979-3,290
April 1, 2017
Balance payable, December 31, 2016-1,8031,6573,460
Costs incurred and charged to expense4,0953,4789,71017,283
Cash payments(3,581)(2,578)(1,774)(7,933)
Non-cash adjustments(714)276-(438)
Balance payable (receivable), April 1, 2017(200)2,9799,59312,372

Balance payable was included in accounts payable and accrued liabilities and balance receivable was included in accounts receivable on the consolidated balance sheet.

The following table summarizes costs incurred since the inception of the Value Creation Plan to March 31, 2018:

Employee
Assetrecruitment,Consulting
impairmentsretention andfees and
and facilityterminationtemporary
closure costscostslabor costsTotal
$$$$
Costs incurred and charged to expense34,93814,81620,67970,433
Cash payments, net(10,046)(13,260)(20,679)(43,985)
Non-cash adjustments(23,581)423-(23,158)
Balance payable, March 31, 20181,3111,979-3,290

For the quarters ended March 31, 2018 and April 1, 2017, costs incurred and charged to expense were recorded in the consolidated statement of operations as follows:

Quarter ended
March 31, 2018April 1, 2017
$$
Cost of goods sold(1)100372
Selling, general and administrative expenses(2)31311,438
Other expense(3)1,7825,473
2,19517,283

(1) Facility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

(2) Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

(3) For the quarter ended March 31, 2018, asset impairment, lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $0.3 million (April 1, 2017 – $nil); Consumer Products operating segment - $1.3 million (April 1, 2017 – $4.7 million); and Corporate Services - $0.1 million (April 1, 2017 – $0.8 million).

XML 34 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents for each of the fair value hierarchies, the assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018 and December 30, 2017:

March 31, 2018
Fair value
asset (liability)Level 1Level 2Level 3
$$$$
Commodity futures and forward contracts(1)
Current asset202-202-
Long-term asset45-45-
Current liability(1,266)(56)(1,210)-
Long-term liability(8)-(8)-
Inventories carried at market(2)4,368-4,368-
Forward foreign currency contracts(3)
Not designated as hedging instruments(710)-(710)-
Designated as hedging instruments575-575-
Contingent consideration(4)(8,904)--(8,904)
Embedded derivative2,690--2,690
December 30, 2017
Fair value
asset (liability)Level 1Level 2Level 3
$$$$
Commodity futures and forward contracts(1)
Current asset738-738-
Current liability(240)(35)(205)-
Long-term liability(4)-(4)-
Inventories carried at market(2)3,838-3,838-
Forward foreign currency contracts(3)
Not designated as hedging instruments(1,060)-(1,060)-
Designated as hedging instruments(435)-(435)-
Contingent consideration(4)(11,320)--(11,320)
Embedded derivative2,690--2,690
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

As at March 31, 2018, the notional amounts of open commodity futures and forward purchase and sale contracts were as follows (in thousands of bushels):

Number of bushels purchased (sold)
CornSoybeans
Forward commodity purchase contracts799393
Forward commodity sale contracts(326)(899)
Commodity futures contracts(750)210
Schedule Of Business Acquisitions By Acquisition Contingent Consideration [Table Text Block]
Quarter ended
March 31, 2018April 1, 2017
$$
Balance, beginning of period(11,320)(15,279)
Fair value adjustments(1)2,416(120)
Payments-269
Balance, end of period(8,904)(15,130)

(1) For the quarter ended March 31, 2018, included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, reflected the accretion for the time value of money. (See note 9.)

XML 35 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block]
March 31, 2018December 30, 2017
$$
Raw materials and work-in-process257,407262,527
Finished goods74,19192,489
Company-owned grain10,7389,937
Inventory reserves(7,855)(9,975)
334,481354,978
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Bank Indebtedness and Long-Term Debt (Tables)
3 Months Ended
Mar. 31, 2018
Short-term Debt [Abstract]  
Schedule Of Line Of Credit Facilities And Long Term Debt [Table Text Block]
March 31, 2018December 30, 2017
$$
Bank indebtedness:
Global Credit Facility(1)233,586230,502
Bulgarian credit facility3,0513,588
236,637234,090
Long-term debt:
Senior Secured Second Lien Notes, net of unamortized debt issuance costs
of $7,417 (December 30, 2017 - $7,716)(2)216,081215,782
Asset-backed term loan3,5773,600
Capital lease obligations5,1025,651
Other3,0003,000
227,760228,033
Less: current portion2,1902,228
225,570225,805
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Loss (Table)
3 Months Ended
Mar. 31, 2018
Accumulated Other Comprehensive Loss [Abstract]  
Schedule Of Accumulated Other Comprehensive Income Loss [Table Text Block]

Net unrealized gains/(losses) recorded in accumulated other comprehensive loss were as follows:

March 31, 2018December 30, 2017
$$
Currency translation adjustment(5,627)(6,963)
Cash flow hedges, net of income taxes402(305)
(5,225)(7,268)
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Expense (Income), Net (Tables)
3 Months Ended
Mar. 31, 2018
Other Income And Expenses [Abstract]  
Schedule of Other Income And Other Expense Disclosure [Table Text Block]

The components of other expense (income) were as follows:

Quarter ended
March 31, 2018April 1, 2017
$$
Increase (decrease) in fair value of contingent consideration (see note 4(4))(2,416)120
Impairment of long-lived assets and lease obligation costs(1)1,5503,723
Product withdrawal and recall costs(2)323279
Employee termination costs(3)2321,750
Other(91)(429)
(402)5,443
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Basic and diluted loss per share were calculated as follows (shares in thousands):

Quarter ended
March 31, 2018April 1, 2017
Numerator for basic loss per share:
Loss attributable to SunOpta Inc.$(4,363)$(11,398)
Less: dividends and accretion on Series A Preferred Stock(1,967)(1,940)
Loss attributable to common shareholders$(6,330)$(13,338)
Denominator for basic loss per share:
Basic weighted-average number of shares outstanding86,81085,929
Basic loss per share$(0.07)$(0.16)
Numerator for diluted loss per share:
Loss attributable to SunOpta Inc.$(4,363)$(11,398)
Less: dividends and accretion on Series A Preferred Stock(1)(1,967)(1,940)
Loss attributable to common shareholders$(6,330)$(13,338)
Denominator for diluted loss per share:
Basic weighted-average number of shares outstanding86,81085,929
Dilutive effect of the following:
Series A Preferred Stock(1)--
Stock options and restricted stock units(2)--
Diluted weighted-average number of shares outstanding86,81085,929
Diluted loss per share$(0.07)$(0.16)

(1) For the quarters ended March 31, 2018, it was more dilutive to assume the Preferred Stock was not converted into Common Shares and, therefore, the numerator of the diluted loss per share calculation was not adjusted to add back the dividends and accretion on the Preferred Stock and the denominator was not adjusted to include 11,333,333 Common Shares issuable on an if-converted basis.

(2) For the quarters ended March 31, 2018 and April 1, 2017, stock options and restricted stock units to purchase or receive 657,946 and 84,659 Common Shares, respectively, were excluded from the calculation of diluted loss per share due to their anti-dilutive effect of reducing the loss per share. In addition, for the quarters ended March 31, 2018 and April 1, 2017, options to purchase 1,984,184 and 1,362,347 Common Shares, respectively, were anti-dilutive because the exercise prices of these options were greater than the average market price.

XML 40 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supplemental Cash Flow Information (Tables)
3 Months Ended
Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
Quarter ended
March 31, 2018April 1, 2017
$$
Changes in non-cash working capital:
Accounts receivable(12,359)(11,127)
Inventories18,30226,358
Income tax recoverable/payable3,341(1,460)
Prepaid expenses and other current assets(5,376)(4,733)
Accounts payable and accrued liabilities38112,410
Customer and other deposits(1,400)1,887
2,88923,335
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segmented Information (Tables)
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Quarter ended
March 31, 2018
GlobalConsumer
IngredientsProductsConsolidated
$$$
Segment revenues from external customers136,331176,321312,652
Segment operating income3,1023,3166,418
Corporate Services(4,755)
Other income, net (see note 9)402
Interest expense, net(8,220)
Loss before income taxes(6,155)
Quarter ended
April 1, 2017
GlobalConsumer
IngredientsProductsConsolidated
$$$
Segment revenues from external customers126,642203,389330,031
Segment operating income4,2016,49810,699
Corporate Services(13,655)
Other expense, net (see note 9)(5,443)
Interest expense, net(7,754)
Loss before income taxes(16,153)
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Description of Business and Significant Accounting Policies (Narrative) (Details)
3 Months Ended
Mar. 31, 2018
Basis Of Presentation Fiscal Year End And New Accounting Pronouncements Disclosure [Abstract]  
Operating Cycle The fiscal year of the Company consists of a 52- or 53-week period ending on the Saturday closest to December 31. Fiscal year 2018 is a 52-week period ending on December 29, 2018, with quarterly periods ending on March 31, June 30 and September 29, 2018. Fiscal year 2017 was a 52-week period ending on December 30, 2017, with quarterly periods ending on April 1, July 1 and September 30, 2017.
Year Founded 1973
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers $ 312,652 $ 330,031
Global Ingredients [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 136,331 126,642
Global Ingredients [Member] | Internationally-sourced organic ingredients [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 102,267 84,641
Global Ingredients [Member] | North American-sourced grains and seeds [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 34,064 42,001
Consumer Products [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 176,321 203,389
Consumer Products [Member] | Beverage products [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 85,250 81,242
Consumer Products [Member] | Frozen fruit products [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers 77,471 98,330
Consumer Products [Member] | Snack products [Member]    
Disaggregation Of Revenue [Line Items]    
Segment revenues from external customers $ 13,600 $ 23,817
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Value Creation Plan (Exiting Flexible Resealable Pouch and Nutrition Bar Product Lines and Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Restructuring Cost and Reserve [Line Items]    
Revenues $ 312,652 $ 330,031
Earnings (loss) from continuing operations before income taxes $ (6,155) (16,153)
Nutrition Bar [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring and Related Cost, Description For the quarter ended March 31, 2018, the loss before income taxes from these operations included the recognition of the remaining lease obligation of $1.3 million related to the vacated nutrition bar processing facility. These operations are included in the Consumer Products operating segment.  
Flexible Resealable Pouch and Nutrition Bar [Member]    
Restructuring Cost and Reserve [Line Items]    
Revenues $ 2,600 15,400
Earnings (loss) from continuing operations before income taxes $ (1,300) $ (2,000)
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Value Creation Plan (Table) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Dec. 30, 2017
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]        
Cost of goods sold $ 278,968 $ 291,332    
Selling, general and administrative expenses 28,288 38,272    
Value Creation Plan [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges 2,195 17,283    
Cash receipts (payments), net (2,293) (7,933)    
Restructuring Reserve Settled Without Cash (339) (438)    
Restructuring Reserve 3,290 12,372 $ 3,727 $ 3,460
Restructuring And Related Cost, Cost Incurred To Date1 70,433      
Cash receipts (payments), net, to date (43,985)      
Restructuring Reserve Settled Without Cash, To Date (23,158)      
Cost of goods sold [1] 100 372    
Selling, general and administrative expenses [2] 313 11,438    
Other Expense [3] 1,782 5,473    
Facility Closing [Member] | Value Creation Plan [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges 1,650 4,095 [4]    
Cash receipts (payments), net 700 (3,581)    
Restructuring Reserve Settled Without Cash (339) (714)    
Restructuring Reserve 1,311 (200) (700) 0
Restructuring And Related Cost, Cost Incurred To Date1 34,938      
Cash receipts (payments), net, to date (10,046)      
Restructuring Reserve Settled Without Cash, To Date (23,581)      
Consulting and temporary labour costs | Value Creation Plan [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges 110 9,710    
Cash receipts (payments), net (110) (1,774)    
Restructuring Reserve Settled Without Cash 0 0    
Restructuring Reserve 0 9,593 0 1,657
Restructuring And Related Cost, Cost Incurred To Date1 20,679      
Cash receipts (payments), net, to date (20,679)      
Restructuring Reserve Settled Without Cash, To Date 0      
Employee Recruitment Retention and Termination Costs [Member] | Value Creation Plan [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Charges 435 3,478    
Cash receipts (payments), net (2,883) (2,578)    
Restructuring Reserve Settled Without Cash 0 276    
Restructuring Reserve 1,979 $ 2,979 $ 4,427 $ 1,803
Restructuring And Related Cost, Cost Incurred To Date1 14,816      
Cash receipts (payments), net, to date (13,260)      
Restructuring Reserve Settled Without Cash, To Date $ 423      
[1]

F acility closure costs, including inventory write-downs, recorded in cost of goods sold were allocated to the Consumer Products operating segment.

[2]

Consulting fees and temporary labor costs, and employee recruitment, relocation and retention costs recorded in selling, general and administrative expenses were allocated to Corporate Services.

[3]

For the quarter ended March 31, 2018 , asset impairment , lease obligation and employee termination costs recorded in other expense were allocated as follows: Raw Material Sourcing and Supply operating segment - $ 0.3 million ( April 1, 2017 – $nil) ; Consumer Products operating segment - $ 1.3 million ( April 1, 2017 – $4.7 million) ; and Corporate Services - $ 0.1 million ( April 1, 2017 – $0.8 million).

[4]

For the quarter ended April 1, 2017 , cost incurred included the early buyout of the San Bernardino equipment leases , as well as closure costs related to the San Bernardino facility prior to its disposal to the landlord. In exchange for the San Bernardino assets, the facility landlord released the Company from its remaining property lease obligation and paid proceeds of $0.2 million in December 2017 .

XML 46 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Value Creation Plan (Narrative) (Details)
3 Months Ended
Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]  
Restructuring And Related Activities Description On October 7, 2016, the Company entered into a strategic partnership with Oaktree Capital Management L.P., a private equity investor (together with its affiliates, “Oaktree”). On October 7, 2016, Oaktree invested $85.0 million through the purchase of cumulative, non-participating Series A Preferred Stock (the “Preferred Stock”) of the Company’s wholly-owned subsidiary, SunOpta Foods Inc. (“SunOpta Foods”) (see note ##Pref). Following the strategic partnership, with the assistance of Oaktree, the Company conducted a thorough review of its operations, management and governance, with the objective of maximizing the Company’s ability to deliver long-term value to its shareholders. As a product of this review, the Company developed a Value Creation Plan built on four pillars: portfolio optimization, operational excellence, go-to-market effectiveness and process sustainability. The Company engaged third-party management consulting firms to support the design and implementation of the Value Creation Plan.
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements (Schedule of Fair Value Measurements) (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Apr. 01, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Contingent Consideration $ (8,904) $ (11,320) $ (15,130) $ (15,279)
Fair Value, Measurements, Recurring [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Inventories Carried At Market 4,368 3,838    
Contingent Consideration (8,904) (11,320)    
Embedded Derivative 2,690 2,690    
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative Asset Notional Amount (710) (1,060)    
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash Flow Hedge Derivative Instrument Assets At Fair Value 575 (435)    
Fair Value, Measurements, Recurring [Member] | Short [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 202 738    
Unrealized Derivative Liability (1,266) (240)    
Fair Value, Measurements, Recurring [Member] | Long [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 45 0    
Unrealized Derivative Liability (8) (4)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Inventories Carried At Market 0 0    
Contingent Consideration 0 0    
Embedded Derivative 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative Asset Notional Amount 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash Flow Hedge Derivative Instrument Assets At Fair Value 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 0 0    
Unrealized Derivative Liability (56) (35)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Long [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 0 0    
Unrealized Derivative Liability 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Inventories Carried At Market 4,368 3,838    
Contingent Consideration 0 0    
Embedded Derivative 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative Asset Notional Amount (710) (1,060)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash Flow Hedge Derivative Instrument Assets At Fair Value 575 (435)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 202 738    
Unrealized Derivative Liability (1,210) (205)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Long [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 45 0    
Unrealized Derivative Liability (8) (4)    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Inventories Carried At Market 0 0    
Contingent Consideration (8,904) (11,320)    
Embedded Derivative 2,690 2,690    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative Asset Notional Amount 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash Flow Hedge Derivative Instrument Assets At Fair Value 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Short [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 0 0    
Unrealized Derivative Liability 0 0    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Long [Member] | Future And Forward Contracts [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Unrealized Derivative Asset 0 0    
Unrealized Derivative Liability $ 0 $ 0    
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements (Notional Amounts) (Details)
bu in Thousands
Mar. 31, 2018
bu
bu
lots
Dec. 30, 2017
lots
Corn [Member]    
Derivative [Line Items]    
Inventories Carried At Market Unit 235,992  
Soybean [Member]    
Derivative [Line Items]    
Inventories Carried At Market Unit 292,019  
Not Designated as Hedging Instrument [Member] | Future And Forward Contracts [Member] | Cocoa [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | lots 716 299
Not Designated as Hedging Instrument [Member] | Future And Forward Purchase Contracts [Member] | Corn [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount 799  
Not Designated as Hedging Instrument [Member] | Future And Forward Purchase Contracts [Member] | Soybean [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount 393  
Not Designated as Hedging Instrument [Member] | Future And Forward Sale Contracts [Member] | Corn [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount (326)  
Not Designated as Hedging Instrument [Member] | Future And Forward Sale Contracts [Member] | Soybean [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount (899)  
Not Designated as Hedging Instrument [Member] | Future [Member] | Corn [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount (750)  
Not Designated as Hedging Instrument [Member] | Future [Member] | Soybean [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount 210  
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements (Foreign Forward Currency Contracts Narrative) (Details)
$ in Thousands, € in Millions, £ in Millions, $ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Apr. 01, 2017
USD ($)
Mar. 31, 2018
EUR (€)
Mar. 31, 2018
GBP (£)
Mar. 31, 2018
USD ($)
Mar. 31, 2018
MXN ($)
Derivative [Line Items]            
Unrealized loss (gain) on derivative instrument $ (1,521) $ (38)        
Not Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member]            
Derivative [Line Items]            
Derivative Instruments, Gain (Loss) Recognized in Income, Net (400) (900)        
Not Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member] | EUR            
Derivative [Line Items]            
Derivative, Notional Amount     € 12.8   $ 15,200  
Not Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member] | GBP            
Derivative [Line Items]            
Derivative, Notional Amount     € 0.4 £ 0.4    
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member]            
Derivative [Line Items]            
Unrealized loss (gain) on derivative instrument 800 $ 1,800        
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member] | USD            
Derivative [Line Items]            
Derivative, Notional Amount         11,100 $ 214.5
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring [Member] | Reclassification Out Of Accumulated Other Comprehensive Income Member            
Derivative [Line Items]            
Foreign Currency Cash Flow Hedge Gain Loss Reclassified To Earnings Net $ (200)          
Foreign Currency Cash Flow Hedge Gain Loss To Be Reclassified During Next 12 Months         $ (600)  
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments and Fair Value Measurements (Contingent Consideration Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Business Acquisition Contingent Consideration [Rollforward]    
Beginning Balance - Contingent Consideration $ (11,320) $ (15,279)
Business Combination, Consideration Transferred, Liabilities Incurred 0 0
Payments For Proceeds From Previous Acquisition 0 269
Fair Value of Contingent Consideration [1] 2,416 (120)
Ending Balance - Contingent Consideration $ (8,904) $ (15,130)
[1]

For the quarter ended March 31, 2018 , included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, r eflect ed the accretion for the time value of money. ( S ee note 9 . )

XML 51 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Inventory Disclosure [Abstract]    
Raw materials and work-in-process $ 257,407 $ 262,527
Finished goods 74,191 92,489
Company-owned grain 10,738 9,937
Inventory reserves (7,855) (9,975)
Total Inventory, Net $ 334,481 $ 354,978
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Bank Indebtedness and Long-Term Debt (Bank Indebtedness Table) (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Line of Credit Facility [Line Items]    
Line of Credit Facility, Amount Outstanding $ 236,637 $ 234,090
Global Credit Facility [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Amount Outstanding 233,586 230,502
Bulgarian Credit Facility [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Amount Outstanding $ 3,051 $ 3,588
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.8.0.1
Bank Indebtedness and Long-Term Debt (Long Term Debt Table) (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Debt Instrument [Line Items]    
Senior Secured Second Lien Notes $ 216,081 $ 215,782
Principal Amount Outstanding On Loans Securitized 3,577 3,600
Capital Lease Obligations 5,102 5,651
Other Long-term Debt 3,000 3,000
Total Long-term and Current Term Debt 227,760 228,033
Current portion of long-term debt 2,190 2,228
Long-term Debt, Excluding Current Maturities, Total 225,570 225,805
Unamortized Debt Issuance Expense $ 7,417 $ 7,716
XML 54 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
Bank Indebtedness and Long-Term Debt (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Global Credit Facility [Member]  
Debt Instrument [Line Items]  
Line of Credit Facility, Initiation Date Feb. 11, 2016
Line of Credit Facility, Maximum Borrowing Capacity $ 350.0
Line Of Credit Facility Increase Decrease In Maximum Borrowing Capacity $ 100.0
Line of Credit Facility, Description On February 11, 2016, the Company entered into a five-year credit agreement for a senior secured asset-based revolving credit facility with a syndicate of banks in the maximum aggregate principal amount of $350.0 million, subject to borrowing base capacity (the “Global Credit Facility”). The Global Credit Facility is used to support the working capital and general corporate needs of the Company’s global operations, in addition to funding future strategic initiatives. The Global Credit Facility also includes borrowing capacity available for letters of credit and provides for borrowings on same-day notice, including in the form of swingline loans. Subject to customary borrowing conditions and the agreement of any such lenders to provide such increased commitments, the Company may request to increase the total lending commitments under the Global Credit Facility to a maximum aggregate principal amount not to exceed $450.0 million. Outstanding principal amounts under the Global Credit Facility are repayable in full on the maturity date of February 10, 2021. Individual borrowings under the Global Credit Facility have terms of six months or less and bear interest based on various reference rates, including prime rate and LIBOR plus an applicable margin. The applicable margin in the Global Credit Facility ranges from 1.25% to 1.75% for loans bearing interest based on LIBOR, and from 0.25% to 0.75% for loans bearing interest based on the prime rate and, in each case, is set quarterly based on average borrowing availability for the preceding fiscal quarter. As at March 31, 2018, the weighted-average interest rate on the facilities was 3.93%. On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”). The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again. Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings. Obligations under the Global Credit Facility are guaranteed by substantially all of the Company’s subsidiaries and, subject to certain exceptions, such obligations are secured by first priority liens on substantially all of the assets of the Company. The Global Credit Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to create liens on assets; sell assets and enter into sale and leaseback transactions; pay dividends, prepay junior lien and unsecured indebtedness and make other restricted payments; incur additional indebtedness and make guarantees; make investments, loans or advances, including acquisitions; and engage in mergers or consolidations. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the credit agreement.
Line of Credit Facility, Expiration Date Feb. 10, 2021
Debt, Weighted Average Interest Rate 3.93%
New US Subfacility [Member]  
Debt Instrument [Line Items]  
Line Of Credit Facility, Amendment Date Sep. 19, 2017
Line of Credit Facility, Maximum Borrowing Capacity $ 15.0
Line of Credit Facility, Description On September 19, 2017 (the “Effective Date”), the Company entered into an amendment to the Global Credit Facility to add an additional U.S. asset-based credit subfacility of an aggregate principal amount of $15.0 million (the “New U.S. Subfacility”). The New U.S. Subfacility was fully drawn on the Effective Date. Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019. Optional prepayment of borrowings under the New U.S. Subfacility are not permitted until the first anniversary of the Effective Date and are subject to certain availability conditions. Borrowings repaid under the New U.S. Subfacility may not be borrowed again. Borrowings under the New U.S. Subfacility bear interest at a margin over various reference rates. The applicable margin for the New U.S. Subfacility will be set quarterly based on average borrowing availability for the preceding fiscal quarter and will range from 2.00% to 2.50% with respect to base rate and prime rate borrowings and from 3.00% to 3.50% for eurocurrency rate and bankers’ acceptance rate borrowings. The initial margin for the New U.S. Subfacility is 2.50% with respect to base rate and prime rate borrowings and 3.50% with respect to eurocurrency rate borrowings.
Line of Credit Facility, Date of First Required Payment Mar. 31, 2019
Line Of Credit Facility Periodic Payment Principal $ 2.5
Line Of Credit Facility Frequency Of Payments Amortization payments on the aggregate principal amount of the New U.S. Subfacility are equal to $2.5 million payable at the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2019.
Senior Secured Second Lien Notes [Member]  
Debt Instrument [Line Items]  
Repayment of Line of Credit Facilities $ 7.5
Debt Instrument Description On October 20, 2016, SunOpta Foods issued $231.0 million of 9.5% Senior Secured Second Lien Notes due 2022 (the “Notes”). As at March 31, 2018, the outstanding principal amount of the Notes was $223.5 million, following the principal repayment of $7.5 million in October 2017. Debt issuance costs are recorded as a reduction against the principal amount of the Notes and are being amortized over the six-year term of the Notes. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017. The Notes will mature on October 9, 2022. Giving effect to the amortization of debt issuance costs, the effective interest rate on the Notes is approximately 10.4% per annum.
Debt Instrument, Issuance Date Oct. 20, 2016
Debt Instrument, Face Amount $ 231.0
Debt Instrument, Frequency of Periodic Payment Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 at a rate of 9.5% per annum, commencing on April 15, 2017.
Debt Instrument, Maturity Date Oct. 09, 2022
Debt Instrument Redemption Description Prior to October 9, 2018, SunOpta Foods may redeem some or all of the Notes at any time and from time to time at a “make-whole” redemption price set forth in the indenture governing the Notes. On or after October 9, 2018, SunOpta Foods may redeem the Notes, in whole or in part, at any time at the redemption prices equal to 107.125% through October 8, 2019, 104.750% from October 9, 2019 through October 8, 2020, 102.375% from October 9, 2020 through October 8, 2021 and at par thereafter, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In addition, prior to October 9, 2018, SunOpta Foods may, on one or more occasions, redeem up to 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price equal to 109.500% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. At any time prior to October 9, 2018, SunOpta Foods may also redeem, during each twelve-month period beginning on October 20, 2016, up to 10% of the aggregate principal amount of the Notes at a price equal to 103.000% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to but excluding the date of redemption. In the event of a change of control, SunOpta Foods will be required to make an offer to repurchase the Notes at 101.000% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Notes are secured by second-priority liens on substantially all of the assets that secure the credit facilities provided under the Global Credit Facility, subject to certain exceptions and permitted liens. The Notes are senior secured obligations and rank equally in right of payment with SunOpta Foods’ existing and future senior debt and senior in right of payment to any future subordinated debt. The Notes are effectively subordinated to debt under the Global Credit Facility and any future indebtedness secured on a first priority basis. The Notes are initially guaranteed on a senior secured second-priority basis by the Company and each of its subsidiaries (other than SunOpta Foods) that guarantees indebtedness under the Global Credit Facility, subject to certain exceptions. The Notes are subject to covenants that, among other things, limit the Company’s ability to (i) incur additional debt or issue preferred stock; (ii) pay dividends and make certain types of investments and other restricted payments; (iii) create liens; (iv) enter into transactions with affiliates; (v) sell assets; and (vi) create restrictions on the ability of restricted subsidiaries to pay dividends, make loans or advances or transfer assets to the Company, SunOpta Foods or any guarantor of the Notes. The foregoing covenants are subject to certain threshold amounts and exceptions as set forth in the indenture governing the Notes. In addition, the indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the indenture, certain payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the trustee or holders of at least 25% in principal amount of the outstanding Notes may declare the principal of and accrued and unpaid interest on, if any, all the Notes to be due and payable. As at March 31, 2018, the estimated fair value of the outstanding Notes was approximately $240 million, based on quoted prices of recent over-the-counter transactions (Level 2).
Debt Instrument Interest Rate Effective Percentage 10.40%
XML 55 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
Preferred Shares (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Temporary Equity [Line Items]    
Dividends $ (1,700) $ (1,700)
Series A Preferred Stock [Member] | Oaktree Organics, L.P. and Oaktree Huntington Investment Fund II, L.P.    
Temporary Equity [Line Items]    
Preferred Stock Shares Issued 85,000  
Preferred Stock Value $ 85,000  
Preferred Stock Issuance Costs $ 6,000  
Preferred Stock Redemption Terms At any time on or after the fifth anniversary of the Closing Date, SunOpta Foods may redeem all of the Preferred Stock for an amount, per share of Preferred Stock, equal to the value of the liquidation preference at such time. The carrying value of the Preferred Stock is being accreted to the redemption amount of $85.0 million through charges to retained earnings/accumulated deficit over the period preceding the fifth anniversary of the Closing Date, which accretion amounted to $0.3 million and $0.2 million for the quarters ended March 31, 2018 and April 1, 2017, respectively.  
Preferred Stock Accretion To Redemption Value2 $ 300 $ 200
Preferred Stock Dividend Preference Or Restrictions In connection with the Subscription Agreement, the Company agreed to, among other things (i) ensure SunOpta Foods has sufficient funds to pay its obligations under the terms of the Preferred Stock and (ii) grant each holder of Preferred Stock (the “Holder”) the right to exchange the Preferred Stock for shares of common stock of the Company (the “Common Shares”). The Preferred Stock is non-participating with the Common Shares in dividends and undistributed earnings of the Company.  
Preferred Stock Liquidation Preference $ 1,000  
Preferred Stock Dividend Payment Terms Cumulative preferred dividends accrue daily on the Preferred Stock at an annualized rate of 8.0% prior to October 5, 2025 and 12.5% thereafter, in each case of the liquidation preference (subject to an increase of 1.0% per quarter, up to a maximum rate of 5.0% per quarter on the occurrence of certain events of non-compliance). Prior to October 5, 2025, SunOpta Foods may pay dividends in cash or elect, in lieu of paying cash, to add the amount that would have been paid to the liquidation preference. After October 4, 2025, the failure to pay dividends in cash will be an event of non-compliance. The Preferred Stock ranks senior to the shares of common stock of SunOpta Foods with respect to dividend rights and rights on the distribution of assets on any liquidation, winding up or dissolution of the Company or SunOpta Foods.  
Convertible Preferred Stock Terms Of Conversion At any time, the Holders may exchange their shares of Preferred Stock, in whole or in part, into the number of Common Shares equal to, per share of Preferred Stock, the quotient of the liquidation preference divided by $7.50 (such price, the “Exchange Price” and such quotient, the “Exchange Rate”). As at March 31, 2018, the aggregate shares of Preferred Stock outstanding were exchangeable into 11,333,333 Common Shares. The Exchange Price is subject to certain anti-dilution adjustments, including a weighted-average adjustment for issuances of Common Shares below the Exchange Price, provided that the Exchange Price may not be lower than $7.00 (subject to adjustment in certain circumstances).  
Convertible Preferred Stock Settlement Terms SunOpta Foods may cause the Holders to exchange all of the Preferred Stock into a number of Common Shares based on the applicable Exchange Price if (i) fewer than 10% of the shares of Preferred Stock issued on the Closing Date remain outstanding, or (ii) on or after the third anniversary of the Closing Date, the average volume-weighted average price of the Common Shares during the then preceding 20 trading day period is greater than 200% of the Exchange Price.  
Preferred Stock Voting Rights In connection with the Subscription Agreement, the Company issued 11,333,333 Special Shares, Series 1 (the “Special Voting Shares”) to the Investors, which entitle the Investors to one vote per Special Voting Share on all matters submitted to a vote of the holders of Common Shares, together as a single class, subject to certain exceptions. Additional Special Voting Shares will be issued, or existing Special Voting Shares will be redeemed, as necessary to ensure that the aggregate number of Special Voting Shares outstanding is equal to the number of shares of Preferred Stock outstanding from time to time multiplied by the Exchange Rate in effect at such time. As at March 31, 2018, 11,333,333 Special Voting Shares were issued and outstanding, which represented an approximate 11.5% voting interest in the Company. The Special Voting Shares are not transferable and the voting rights associated with the Special Voting Shares will terminate upon the transfer of the Preferred Stock to a third party, other than a controlled affiliate of the Investors. The Investors are entitled to designate up to two nominees for election to the Board of Directors of the Company (the “Board”) and have the right to designate one individual to attend meetings of the Board as a non-voting observer, subject to the Investors maintaining certain levels of beneficial ownership of Common Shares on an as-exchanged basis.  
Preferred Stock Participation Rights For so long as the Investors beneficially own or control at least 50% of the Preferred Stock issued on the Closing Date, including any corresponding Common Shares into which such Preferred Stock are exchanged, the Investors will be entitled to (i) participation rights with respect to future equity offerings of the Company, and (ii) governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries.  
XML 56 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Loss (Table) (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Accumulated Other Comprehensive Loss [Abstract]    
Currency translation adjustment $ (5,627) $ (6,963)
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Cash Flow Hedges Effect Net Of Tax 402 (305)
Accumulated other comprehensive income $ (5,225) $ (7,268)
XML 57 R47.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Expense (Income), Net (Table) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Other Income And Expenses [Abstract]    
Fair Value of Contingent Consideration [1] $ (2,416) $ 120
Impairment of long-lived assets and lease obligation costs 1,550 3,723
Product Withdrawal and recall costs 323 279
Employee severance costs 232 1,750
Other (91) (429)
Total Other Expense, net $ (402) $ 5,443
[1]

For the quarter ended March 31, 2018 , included an adjustment of $2.5 million to reduce the contingent consideration that may be payable in 2019 under an earn-out arrangement with the former unitholders of Citrusource, LLC (acquired by the Company in March 2015) based on the projected results for the business in fiscal 2018. In addition, for all periods presented, r eflect ed the accretion for the time value of money. ( S ee note 9 . )

XML 58 R48.htm IDEA: XBRL DOCUMENT v3.8.0.1
Earnings Per Share (Table) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Earnings Per Share [Abstract]    
Earnings (loss) attributable to SunOpta Inc. $ (4,363) $ (11,398)
Dividends and accretion on Series A Preferred Stock (1,967) (1,940)
Earnings (loss) available to common shareholders $ (6,330) $ (13,338)
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Weighted Average Number of Shares Outstanding, Basic 86,810,000 85,929,000
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units 0 0
Weighted Average Number of Shares Outstanding, Diluted 86,810,000 85,929,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1,984,184 1,362,347
Earnings (loss) per share - basic    
Basic $ (0.07) $ (0.16)
Earnings (loss) per share - diluted    
Diluted $ (0.07) $ (0.16)
Options Held [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units 0 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 657,946 84,659
Series A Preferred Stock [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units 0 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 11,333,333  
XML 59 R49.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supplemental Cash Flow Information (Cash Flows) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Supplemental Cash Flow Elements [Abstract]    
Accounts receivable $ (12,359) $ (11,127)
Inventories 18,302 26,358
Income tax recoverable/payable 3,341 (1,460)
Prepaid expenses and other current assets (5,376) (4,733)
Accounts payable and accrued liabilities 381 12,410
Customer and other deposits (1,400) 1,887
Increase (Decrease) in Operating Capital $ 2,889 $ 23,335
XML 60 R50.htm IDEA: XBRL DOCUMENT v3.8.0.1
Commitments and Contingencies (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Loss Contingencies [Line Items]  
Loss Contingency Damages Sought On November 20, 2017, Treehouse Foods, Inc., several of its related entities, and its insurer filed a lawsuit against the Company in the Circuit Court of Cook County, Illinois titled Treehouse Foods, Inc. et al. v. SunOpta Grains and Food, Inc. The Company was served with the Summons and Complaint on January 24, 2018, and the plaintiffs filed an Amended Complaint on April 23, 2018. The plaintiffs allege economic damages resulting from the Company’s 2016 voluntary recall of certain roasted sunflower kernel products due to the potential for Listeria monocytogenes contamination. The case includes claims for breach of express and implied warranty, negligence, strict liability, and indemnity seeking $16.2 million in damages. There are no allegations of personal injury. The Company intends to vigorously defend itself against these claims. The Company cannot reasonably predict the outcome of this claim, nor can it estimate the amount of loss, or range of loss, if any, that may result from this claim.
Loss Contingency Damages Sought Value $ 16.2
XML 61 R51.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segmented Information (Table) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Segment Reporting, Revenue Reconciling Item [Line Items]    
Segment revenues from external customers $ 312,652 $ 330,031
Segment operating income 6,418 10,699
Other income (expense), net 402 (5,443)
Interest expense, net (8,220) (7,754)
Earnings (loss) from continuing operations before income taxes (6,155) (16,153)
Global Ingredients [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Segment revenues from external customers 136,331 126,642
Segment operating income 3,102 4,201
Consumer Products [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Segment revenues from external customers 176,321 203,389
Segment operating income 3,316 6,498
Corporate [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Segment operating income $ (4,755) $ (13,655)
XML 62 R52.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segmented Information (Narrative) (Details)
3 Months Ended
Mar. 31, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]  
Description Of Effect On Previously Reported Segment Information For Change In Composition Of Reportable Segments Effective the first quarter of 2018, the Company transferred certain of its specialty ingredient operations from the Raw Material Sourcing and Supply operating segment to the Healthy Beverages platform of the Consumer Products operating segment. This realignment reflects a change in commercial responsibilities for these operations, and resulting changes in reporting and accountability to the Company’s Chief Executive Officer. These operations produce liquid bases, including for the Company’s non-dairy aseptic beverage operations, as well as spray-dried ingredients. Revenues and gross profit related to these operations were $3.4 million and $0.6 million, respectively, for the quarter ended March 31, 2018, compared with $3.6 million and $0.6 million, respectively, for the quarter ended April 1, 2017. The segment information presented below for the quarter ended April 1, 2017 has been restated to reflect this realignment.
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