Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Income (Loss) From Continuing Operations Before Income Taxes

Income (loss) from continuing operations, before income taxes consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021		December 28, 2019
Canada	$	(23.9)	$	(88.4)	$	(57.0)
Outside Canada	30.2		(64.1)		50.7
Income (loss) from continuing operations, before income taxes	$	6.3	$	(152.5)	$	(6.3)

Income Tax Expense

Income tax expense consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021		December 28, 2019
Current
Canada	$	—	—		$	(0.2)
Outside Canada	5.4		1.9		12.2
	$	5.4	$	1.9	$	12.0
Deferred
Canada	$	—	$	—	$	(1.0)
Outside Canada	4.1		2.4		(6.5)
	$	4.1	$	2.4	$	(7.5)
Income tax expense	$	9.5	$	4.3	$	4.5

Reconciliation of Income Taxes

The following table reconciles income taxes calculated at the basic Canadian corporate rates with the income tax provision:

	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021		December 28, 2019
Income tax expense (benefit) based on Canadian statutory rates	$	1.6	$	(40.4)	$	(1.7)
Foreign tax rate differential	(7.1)		(4.3)		(10.0)
Local taxes	2.2		2.1		1.1
Nontaxable interest income	(9.3)		(8.7)		(8.4)
Impairment expense	—		17.6		—
Impact of intercompany transactions and dividends	5.9		10.8		12.2
Income tax credits	(0.3)		(0.5)		(0.7)
Change in enacted tax rates	(0.2)		(1.7)		(0.1)
Change in valuation allowance	9.6		28.5		19.7
Change in uncertain tax positions	0.9		(1.5)		0.1
Equity compensation	2.2		1.9		1.3
Permanent differences	0.9		1.6		1.3
Adjustments to prior year taxes	3.1		(1.1)		(10.4)
Other items	—		—		0.1
Income tax expense	$	9.5	$	4.3	$	4.5

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities were recognized on temporary differences between the financial and tax bases of existing assets and liabilities as follows:

(in millions of U.S. dollars)	January 1, 2022		January 2, 2021
Deferred tax assets
Net operating loss carryforwards	$	198.5	$	196.4
Capital loss carryforwards	18.0		14.5
Liabilities and reserves	31.0		32.0
Stock options	9.4		10.7
Inventories	3.2		2.4
Interest expense	17.6		9.8
Right of use lease obligations	53.8		50.7
	331.5		316.5
Deferred tax liabilities
Property, plant and equipment	(73.5)		(65.0)
Intangible assets	(197.8)		(191.8)
Right of use assets	(52.7)		(50.1)
Other	(0.8)		(0.7)
	(324.8)		(307.6)
Valuation allowance	(164.7)		(156.5)
Net deferred tax liability	$	(158.0)	$	(147.6)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows:

	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021		December 28, 2019
Unrecognized tax benefits at beginning of year	$	15.6	$	16.9	$	15.1
Additions based on tax positions taken during a prior period	1.1		—		5.0
Reductions based on tax positions taken during a prior period	—		—		(1.9)
Settlement on tax positions taken during a prior period	—		(1.7)		—
Additions related to acquired entities	1.7		—		—
Lapse in statute of limitations	(2.5)		(1.0)		(2.9)
Additions based on tax positions taken during the current period	1.7		1.3		1.7
Cash payments	—		(0.2)		(0.2)
Foreign exchange	(0.1)		0.3		0.1
Unrecognized tax benefits at end of year	$	17.5	$	15.6	$	16.9