Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 29, 2012

Income Before Income Taxes

Income before income taxes consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	December 29, 2012		December 31, 2011		January 1, 2011
Canada	$	22.9	$	20.1	$	16.2
Outside Canada		34.0		20.4		62.2
Income before income taxes	$	56.9	$	40.5	$	78.4

Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following:

	For the Year Ended
(in millions of U.S. dollars)	December 29, 2012			December 31, 2011			January 1, 2011
Current
Canada	$	2.4		$	2.2		$	0.5
Outside Canada		(1.6	)		0.5			1.8
	$	0.8		$	2.7		$	2.3
Deferred
Canada	$	0.6		$	0.8		$	4.0
Outside Canada		3.2			(4.2	)		12.3
	$	3.8		$	(3.4	)	$	16.3
Income tax expense (benefit)	$	4.6		$	(0.7	)	$	18.6

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)	December 29, 2012			December 31, 2011			January 1, 2011
Income tax expense based on Canadian statutory rates	$	14.4		$	10.9		$	22.7
Foreign tax rate differential		1.2			(3.0	)		4.2
Tax exempt income		(14.8	)		(14.2	)		(5.6	)
Dividend income		0.7			1.0			—
Changes in enacted tax rates		(0.8	)		(0.8	)		(0.5	)
Increase in valuation allowance		4.0			10.3			1.0
Decrease to uncertain tax positions		(0.8	)		(0.9	)		(1.7	)
Non-controlling interests		(1.6	)		(1.3	)		(1.8	)
Other items		2.3			(2.7	)		0.3
Income tax expense (benefit)	$	4.6		$	(0.7	)	$	18.6

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)	December 29, 2012			December 31, 2011
Deferred tax assets
Loss carryforwards	$	53.8		$	43.3
Leases		4.1			5.1
Property, plant & equipment		4.5			3.2
Liabilities and reserves		12.0			11.7
Stock options		0.9			2.2
Inventories		3.7			4.9
Other		4.1			2.5
		83.1			72.9
Deferred tax liabilities
Property, plant & equipment		(63.6	)		(59.2	)
Intangible assets		(15.9	)		(10.5	)
Other		(0.8	)		(0.9	)
		(80.3	)		(70.6	)
Valuation allowance		(27.5	)		(22.2	)
Net deferred tax liability	$	(24.7	)	$	(19.9	)

Schedule of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities have been classified as follows on the Consolidated Balance Sheets:

(in millions of U.S. dollars)	December 29, 2012			December 31, 2011
Deferred tax assets:
Current	$	11.1		$	10.6
Long-term		3.3			4.1
Deferred tax liabilities:
Current	$	—		$	(0.5	)
Long-term		(39.1	)		(34.1	)
Net deferred tax liability	$	(24.7	)	$	(19.9	)

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)	December 29, 2012			December 31, 2011			January 1, 2011
Unrecognized tax benefits at beginning of year	$	9.0		$	13.3		$	14.7
Additions based on tax positions taken during a prior period		0.1			0.2			0.4
Reductions based on tax positions taken during a prior period		(2.2	)		—			(2.6	)
Settlement on tax positions taken during a prior period		—			(5.8	)		(0.8	)
Lapse in statute of limitations		(0.1	)		—			—
Additions based on tax positions taken during the current period		2.2			1.7			1.1
Foreign exchange		0.2			(0.4	)		0.5
Unrecognized tax benefits at end of year	$	9.2		$	9.0		$	13.3