December 31  (All amounts in $000s) 2011 Level 1 Level 2 Level 3 Assets measured at  fair value Foreign exchange  contracts; hedged  1,346  – 1,346  – Liabilities measured at  fair value Foreign exchange  contracts; hedged  793  –  793  –  Included in current bank loans at December 31, 2011 was a  borrowing of US$15 million (January 1, 2011: US$5.0 million;  January 3, 2010: US$15.0 million), which has 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.  Detailed information regarding the designation and number  of each class of shares outstanding and of each class of  security convertible into shares is disclosed in Note 16 to the  annual financial statements.  The estimated fair value of financial instruments as at  December 31, 2011 and January 1, 2011 are based on relevant  market prices and information at that time. The fair-value  estimate is not necessarily indicative of the amounts that we  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: liability of $1.4 million). The fair value of the interest  and principal cross-currency swap was a liability of $0.2 million on January 1, 2011.  The book value of our equity at the end of 2011 was $10.71  per share compared with $9.72 at the end of 2010. We filed a normal course issuer bid in November 2009 that permitted  the purchase of up to 320,000 of our common shares and  up to 30,000 non-voting equity shares during the 12-month  period ending on November 24, 2010. When the bid expired,  we had purchased 9,200 non-voting equity shares through  the Company’s defined benefit pension plan at an average  price of $10.93. We did not purchase any common or non- voting shares in 2010 under this normal course issuer bid. The fair value of our long-term debt is estimated to be $254.2 million at December 31, 2011. The fair value of our  capital lease obligations is estimated to be $3.7 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 we do not  intend to settle the long-term debt or capital lease obligations  prior to maturity, the fair value does not represent an  actual liability and, therefore, does not include exchange or  settlement costs. We filed a new normal course issuer bid in December 2010  to purchase up to 663,000 common shares and up to 93,840  non-voting equity shares. When the bid expired, we had  purchased 88,758 non-voting equity shares for aggregate  consideration of $1.2 million at an average price of $13.70 per  share. The shares that were repurchased were cancelled.  We filed a new normal course issuer bid in January 2012 to  purchase up to 100,000 common shares, and up to 100,000  non-voting equity shares. Any shares purchased under  the normal course issuer bid will be cancelled. The bid will  terminate no later than January 30, 2013. Our remaining financial instruments consist of cash and cash  equivalents, trade and other accounts receivables, 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 or the credit terms of those instruments.  All financial instruments carried at fair value are categorized  in three categories defined as follows: In late 2010, we dissolved a subsidiary that held High Liner  shares, which had been repurchased primarily through  normal course issuer bids. Common and non-voting shares  held by this subsidiary were cancelled on the dissolution.  Outstanding shares of the Company had been presented  on a net basis after deducting these shares. The wind-up  of the subsidiary has resulted in a charge of $6.6 million to  retained earnings on the fiscal 2010 balance sheet and an  increase for the same amount in share capital. Prior to the  wind-up of the subsidiary, share capital was reduced for the  full cost of the shares we repurchased. After the wind-up, the  amount charged to share capital is the average book value of  the shares. The difference between the average cost that we  incurred to repurchase the shares and the average book value of the shares, being $6.6 million, was charged to  retained earnings.  At December 31, 2011, the Company had the following  financial instruments measured at fair value categorized into  the following levels: Level 3: Valuation techniques, which use inputs not based on  observable market data. 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 1: Quoted market prices in active markets for identical  assets or liabilities. 26 HIGH LINER FOODS INCORPORATED EquITy Capital Structure ESTIMATED FAIR VALuE OF FInAnCIAL InSTRuMEnTS