At the end of the fifty-two week period ended December 31, 2011, the cash flow hedges of the expected future purchases in the future  quarters of 2012 were assessed to be highly effective and an unrealized gain of $0.9 million with a deferred tax expense of $0.3  million, and an unrealized loss of $2.3 million with a deferred tax recovery of $0.7 million, were included in other comprehensive loss  in respect of these contracts (January 1, 2011; unrealized gain of $0.9 million with a deferred tax expense of $0.3 million, and an  unrealized loss of $2.3 million with a deferred tax recovery of $0.7 million). Amounts recognized in income resulting from hedge ineffectiveness during the fifty-two week period ended December 31, 2011 $0.05 million and for the fifty-two week period ended January 1, 2011 was $0.3 million. The amount removed from other comprehensive loss during the fifty-two week period ended December 31, 2011 and included in the  carrying amount of the hedging items was $0.4 million (January 1, 2011: $2.7 million).  Prior to November 30, 2011, the Company’s U.S. subsidiary had an interest rate swap agreement in place that converted principal and  interest payments from Canadian to U.S. dollars and was used to hedge the foreign exchange exposure on the Company’s 6.31%  Series A note. The note and interest rate swap had the same critical terms and the swap was valued at rates prevailing at the balance  sheet date. Gains and losses on the swap were included in other comprehensive income and transferred to income to offset gains and  losses on the debt when recorded in income. As of November 30, 2011, the Company divested itself of the swap. As of January 1, 2011,  the notional amount of the interest rate swap was US$15.8 million and as of January 3, 2010 was US$17.2 million whereby it receives a  Canadian dollar fixed rate of interest of 6.31% and pays a fixed U.S. dollar rate equal to 6.26% on the notional amount.  Principal and interest payment swap Hedge of net investment in foreign operations claSSification of financial inStrumentS As at December 31, 2011, included in current bank loans was a borrowing of US$15 million (January 1, 2011: US$5.0 million; January 3,  2010: US$15.0 million), and included in long-term debt was a borrowing of US$19.2 million (January 1, 2011 and January 3, 2010: $nil),  which have been designated as a hedge of the net investment in the U.S. subsidiary and is being used to hedge the Company’s  exposure to foreign exchange risk on this investment. Gains or losses on the retranslation of this borrowing are transferred to equity  to offset any gains or losses on translation of the net investments in the subsidiaries. There is no ineffectiveness recognized in the  fiscal years ending December 31, 2011 or January 1, 2011.  The Company, in accordance with a written policy to manage its foreign currency, commodity and interest rate exposures, utilizes  derivative financial instruments. The policy prohibits the use of derivative financial instruments for trading or speculative purposes. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management  objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives to specific assets and  liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both  at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in  offsetting changes in fair values or cash flows of hedged items. There were no highly probable transactions for which hedge  accounting has been claimed that have not occurred. Any portion of hedge ineffectiveness has been recognized in the income  statement as it occurs.  The following table identifies all of the Company’s financial instruments and their carrying values recorded at the balance sheet date  and their fair values at the balance sheet. The carrying values of the Company’s loans and receivables (which only includes trade  receivables) approximate fair value due to the short-term to maturity of these financial instruments. Financial liabilities carried at  amortized cost are shown using the effective interest rate method. Items accounted as hedges represent fair value of the Company’s  foreign exchange contracts as well as the fair value of its interest rate swap on its long-term debt. As at December 31, 2011 Financial asset  Financial  Items  Total at fair value through  Loans and  liabilities at  accounted for  carrying (Amounts in $000s) profit and loss  receivables amortized cost  as hedges  amount Cash and cash equivalents  $   3,260 $   – $   – $   – $   3,260  Accounts receivable   –  84,920  –  –  84,920  Other financial assets   –  –  –  1,346  1,346 Bank loans  –  –  120,980  – 120,980  Accounts payable and accrued liabilities   –  –  108,553  – 108,553  Provisions  –  –  675  –  675  Other financial liabilities  –  –  –  793  793  Long-term debt   –  –  239,981  – 239,981  94 HIGH lIneR FooDS InCoRpoRAteD