Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Loss Before Income Taxes

Loss before income taxes consisted of the following:

	For the Year Ended
	December 31,			January 2,			January 3,
(in millions of U.S. dollars)	2016			2016			2015
Canada	$	(22.1	)	$	24.2		$	17.2
Outside Canada		(23.8	)		(26.3	)		(62.2	)
Loss before income taxes	$	(45.9	)	$	(2.1	)	$	(45.0	)

Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following:

	For the Year Ended
	December 31,			January 2,			January 3,
(in millions of U.S. dollars)	2016			2016			2015
Current
Canada	$	(0.3	)	$	4.0		$	—
Outside Canada		2.7			3.7			2.5
	$	2.4		$	7.7		$	2.5
Deferred
Canada	$	8.7		$	(2.5	)	$	0.3
Outside Canada		14.5			(27.9	)		(64.2	)
	$	23.2		$	(30.4	)	$	(63.9	)
Income tax expense (benefit)	$	25.6		$	(22.7	)	$	(61.4	)

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
	December 31,			January 2,			January 3,
(in millions of U.S. dollars)	2016			2016			2015
Income tax (benefit) expense based on Canadian statutory rates	$	(11.8	)	$	(0.5	)	$	(11.5	)
Foreign tax rate differential		(3.5	)		(3.7	)		(9.3	)
Nontaxable interest income		(10.0	)		(5.5	)		(9.3	)
Nontaxable dividend income		(10.6	)		(13.8	)		(11.2	)
Nontaxable capital (gain) loss		—			(1.4	)		1.5
Dividend income		1.1			0.9			—
Changes in enacted tax rates		(0.6	)		1.3			(1.4	)
Change in valuation allowance		61.2			(0.4	)		(29.4	)
Increase (decrease) to uncertain tax positions		0.6			(0.6	)		1.9
Non-controlling interests		(2.2	)		(2.1	)		(1.9	)
Equity compensation adjustment to net operating loss		—			—			2.7
Permanent differences		1.9			1.3			1.7
Contingent consideration goodwill basis adjustments		—			—			1.0
Equity compensation permanent adjustment		0.6			0.9			0.6
Mexico deferred adjustment		—			—			2.5
Preferred share costs		—			0.4			—
Other items		(1.1	)		0.5			0.7
Income tax expense (benefit)	$	25.6		$	(22.7	)	$	(61.4	)

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:

	December 31,			January 2,
(in millions of U.S. dollars)	2016			2016
Deferred tax assets
Net operating loss carryforwards	$	227.8		$	132.8
Capital loss carryforwards		1.6			0.6
Liabilities and reserves		44.8			39.4
Stock options		5.8			5.9
Inventories		5.2			4.9
Other		8.8			9.1
		294.0			192.7
Deferred tax liabilities
Property, plant & equipment		(106.2	)		(99.8	)
Intangible assets		(215.5	)		(146.4	)
		(321.7	)		(246.2	)
Valuation allowance		(129.9	)		(15.4	)
Net deferred tax liability	$	(157.6	)	$	(68.9	)

Schedule of Deferred Tax Assets and Liabilities

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

	December 31,			January 2,
(in millions of U.S. dollars)	2016			2016
Deferred tax assets:
Long-term	$	0.2		$	7.6
Deferred tax liabilities:
Long-term		(157.8	)		(76.5	)
Net deferred tax liability	$	(157.6	)	$	(68.9	)

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
	December 31,			January 2,			January 3,
(in millions of U.S. dollars)	2016			2016			2015
Unrecognized tax benefits at beginning of year	$	11.5		$	12.5		$	10.5
Additions based on tax positions taken during a prior period		0.2			0.2			0.5
Reductions based on tax positions taken during a prior period		—			(0.2	)		(0.9	)
Settlement on tax positions taken during a prior period		(4.5	)		(0.6	)		(0.8	)
Lapse in statute of limitations		(0.2	)		(1.8	)		—
Additions based on tax positions taken during the current period		24.8			1.9			3.9
Foreign exchange		(1.2	)		(0.5	)		(0.7	)
Unrecognized tax benefits at end of year	$	30.6		$	11.5		$	12.5