The forward single rate contracts at December 31, 2011 have a rate of $1.0063 with maturities ranging from January 2012 to September 2012. For the fifty-two week period ended December 31, 2011, the Company had the following foreign exchange “average rate” purchase  contracts outstanding: With the exception of US$2,431,611 average rate forward contracts with maturities ranging from January 2013 to December 2013, all foreign exchange purchase contracts have maturities that are less than one year. Where the average noon-day exchange rate during the contract term falls between the benefit and protection rates, no cash  settlements are exchanged between the Company and the intermediary. If the average noon-day exchange rate during the contract  term is less than the benefit rate, then on the contract settlement date, the Company would pay the intermediary the difference in  the rate times the notional dollar value hedged. If the average noon-day exchange rate during the contract term is greater than the  protection rate, then on the contract settlement date, the intermediary would pay the Company the difference in the rate times the  notional dollar value hedged. The benefit and protection rates are the same for forward single rate contracts while forward average  range contracts have a spread between the benefit and protection rates.  The estimated fair values of financial instruments as at December 31, 2011, January 1, 2011 and January 3, 2010 are based on relevant  market prices and information available at that time. The fair value estimates are not necessarily indicative of the amounts that the  Company might receive or pay in actual market transactions. The total fair value of all of the foreign exchange future contracts as at  December 31, 2011 was an asset of $0.6 million (January 1, 2011: a liability of $1.4 million; January 3, 2010: a liability of $2.4 million).  The fair value of the interest and principal cross currency swap at December 31, 2011 was $nil (January 1, 2011: a liability of $0.2  million; January 3, 2010: a liability $0.9 million).  The fair value of the Company’s long-term debt that was entered into in December 2011 was estimated to be $254.2 million. The fair  value of the Company’s long-term debt that was entered into in December 2007 was estimated to be $52.0 million as at January 1,  2011 and $57.4 million as at January 3, 2010. The fair value of the Company’s capital lease obligations at December 31, 2011 is  estimated to be $4.0 million (January 1, 2011: $4.0 million; January 3, 2010: $3.6 million). These fair values are calculated by  discounting the future cash flows of each loan at the estimated yield to maturity based on publicly available information. Since the  Company does not intend to settle its long-term debt or capital lease obligations prior to maturity, the fair values do not represent an  actual liability and, therefore, do not include exchange or settlement costs. The Company’s remaining financial instruments consist of cash and cash equivalents, trade and other accounts receivables and  sundry investments and current liabilities. The difference between the carrying values and the fair market values of these financial  instruments are not significant given the short-term maturities and/or the credit terms of those instruments.  All financial instruments carried at fair value are categorized in three categories defined as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Other techniques, which use inputs other than quoted market prices included within Level 1 that are observable, either  directly (as prices) or indirectly (derived from prices).  Level 3: Valuation techniques, which use inputs that are not based on observable market data. 96 HIGH lIneR FooDS InCoRpoRAteD  December 31, 2011 Weighted  Weighted  Average  Average  Total Average rate forwards  Put Rate  Call Rate  US$ Value Average rate  $  1.0019  $  1.0090  $ 36,499,227  average rate forward purchaSe contractS eStimated fair value of financial inStrumentS fair value hierarchy