Annual report pursuant to Section 13 and 15(d)

Note 11 - Discontinued operations

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Note 11 - Discontinued operations
 12 Months Ended
Jan. 01, 2012
Discontinued Operations, Policy [Policy Text Block]
11.
Discontinued operations

In June 2009, the Company ceased manufacturing operations at its Boston, Massachusetts facility, which was formerly included in the United States reporting segment.  The decision was based primarily on the historical losses sustained in these operations.  The Company entered into an agreement with the landlord to terminate the existing lease and conducted a sale of plant equipment.  As at July 5, 2009, the Boston facility was classified as a discontinued operation and its results of operations are separately reported for all periods presented. Summarized financial information for discontinued operations is presented below:

   
Period ended
January 3,
2010
 
       
Discontinued Operations Before Disposal:
     
Revenue
  $ 6,957  
         
Loss from discontinued operations before disposal, net of taxes
  $ (3,573 )
         
Disposal:
       
Loss on disposal, net of taxes
    (2,379 )
         
Loss from discontinued operations, net of taxes
  $ (5,952 )

There were no revenues or losses from discontinued operations in the periods ended January 2, 2011 and January 1, 2012.

The loss on disposal recorded in the period ended January 3, 2010 consisted largely of the settlement under the lease termination agreement, severance costs and other contracted facility exit costs, offset by a gain on disposal of plant equipment.

The following is a summary of the loss on disposal recorded in the period ended January 3, 2010:

Severance
  $ 742  
Lease obligations
    1,518  
Other facility exit costs
    343  
Gain on disposal of plant and equipment
    (224 )
         
Total
  $ 2,379  

The following table details the change in the discontinued operations accrual for the period ended January 1, 2012:

   
Severance
   
Lease Obligations
   
Other Facility
Exit Costs
   
Total
 
                         
Accruals related to discontinued operations
  $ 742     $ 2,296     $ 343     $ 3,381  
Cash payments
    (517 )     (1,709 )     (271 )     (2,497 )
Accrual balance as at January 3, 2010
  $ 225     $ 587     $ 72     $ 884  
Cash payments
    (225 )     (587 )     (72 )     (884 )
Accrual balance as at January 2, 2011 and January 1, 2012
  $ —     $ —     $ —     $ —