Sale of Sunflower Business

12 Months Ended

Dec. 31, 2022

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Sale of Sunflower Business [Text Block]

3. Sale of Sunflower Business

On October 11, 2022, the Company completed the sale of 100% of the assets and liabilities of its sunflower business and related roasted snacks operations, for cash consideration of $16.0 million, subject to closing debt and working capital adjustments. The sunflower business operated from three processing facilities located in Minnesota and North Dakota and was reported in the Company's Plant-Based Foods and Beverages operating segment.

For the year ended December 31, 2022, the Company recognized a loss on the sale of the sunflower business, which is recorded in other expense, net, as follows:

	$
Cash consideration	16,000
Less: debt and working capital adjustments	(6,620	)
Less: costs to sell	(1,162	)
Net proceeds⁽¹⁾	8,218

Accounts receivable	10,572
Inventories	13,493
Other current assets	105
Property, plant and equipment	10,328
Operating lease right-of-use assets	1,834
Intangible assets, net	2,512
Accounts payable and accrued liabilities	(4,985	)
Operating lease liabilities	(2,414	)
Net assets sold	31,445

Pre-tax loss on sale	(23,227	)

(1) As at December 31, 2022, the Company had received net cash proceeds of $7.8 million and the remaining proceeds of $0.4 million, related to the settlement of the final working capital adjustment, was recorded in accounts receivable (see note 4).

As the disposal of the sunflower business did not have a major effect on the Company's operations or financial results and, therefore, did not qualify for presentation as discontinued operations on a standalone basis, the operating results for the business prior to October 11, 2022, are reported in continuing operations on the consolidated statements of operations for the current and comparative periods. The following table presents revenues and earnings (loss) before income taxes for the sunflower business included in the Company's consolidated results of operations for years ended December 31, 2022, January 1, 2022 and January 2, 2021:

	December 31, 2022	January 1, 2022	January 2, 2021
	$	$	$
Revenues	57,924	63,094	54,618
Earnings (loss) before income taxes⁽¹⁾	1,182	1,082	(5,689	)

(1) For the year ended December 31, 2022, excludes the loss on sale. In addition, for all years presented, excludes the allocation of corporate costs.