As at and for the fifty-two weeks ended January 1, 2011: The adjustments above resulted from the following: A summary of changes in the Company’s accounting policies on transition from Canadian GAAP to IFRS with respect to employee  future benefits are as follows: Canadian GAAP – Actuarial gains and losses that arise in calculating the present value of the defined benefit obligation and the fair  value of plan assets are recognized on a systematic and consistent basis, subject to a minimum required amortization based on a  “corridor” approach. The “corridor” was 10% of the greater of the accrued benefit obligation at the beginning of the year and the fair  value of plan assets at the beginning of the year. This excess of 10% is amortized as a component of pension expense on a straight- line basis over the expected average service life of active participants. Actuarial gains and losses below the 10% “corridor” are deferred. IFRS – The Company elected to recognize all actuarial gains and losses immediately in a separate statement of comprehensive income  without recycling to the income statement in subsequent periods. As a result, actuarial gains and losses are not amortized to the  income statement but rather are recorded directly to comprehensive income at the end of each period. As a result, the Company  adjusted its pension expense to remove the amortization of actuarial gains and losses. Canadian GAAP – The measurement date of the defined benefit obligation and plan assets can be a date up to three months prior to  the date of the financial statements, provided the entity adopted this practice consistently from year to year. The most recent  accounting extrapolation on all pension and non-pension plans was completed as of January 2, 2010. The most recent funding  valuations for the Company’s defined benefit plans were completed as at September 1, 2008 for management and salaried employees,  December 31, 2007 for Nova Scotia union employees and October 31, 2008 for the SORP. IFRS – An entity is required to determine the present value of the defined benefit obligation and the fair value of plan assets with  sufficient regularity such that the amounts recognized in the financial statements do not differ materially from the amounts that  would be determined at the balance sheet date. As a result, on transition to IFRS, the Company re-measured its defined benefit  obligations and plan assets as at the transition date, January 3, 2010, which impacted the calculation of pension expense. Canadian GAAP – The expected return on plan assets is the product of the expected long-term rate of return on plan assets and a  market-related fair value of plan assets. The market-related fair value recognized changes in the fair value of plan assets over a five-  year period. IFRS – The expected return on plan assets is the product of the expected long-term rate of return on plan assets and a fair value of  plan assets on the balance sheet date. As a result, the Company adjusted its pension expense to reflect an expected return on plan  assets using the fair value of its plan assets at the end of each period. 110 HIGH lIneR FooDS InCoRpoRAteD faiR value ofand expeCted RetuRn on plan assets measuRement date aCtuaRial gains and losses • The Company also amended its accounting policies for future benefit improvements and determined that a provision be made  for advance recognition of benefit improvements that were deemed to have established a constructive obligation to the  Company’s employees.  • Also included in the adjustment to opening retained earnings on transition to IFRS is the recognition of all immediately vested  past service costs, which are required to be immediately recognized under IFRS, whereas under Canadian GAAP they were  allocated over the average remaining service period of the employees. • Under Canadian GAAP, the Company utilized the corridor method, which allowed the gains and losses to stay off-balance sheet  as long as they were less than 10% of the plan assets or of the defined benefit obligation, whichever was higher. While there is a  deferral method available under IFRS, on transition, the Company elected to adopt the immediate recognition method, an option  available in IAS 19, where the Company is able to write off actuarial gains and losses directly to comprehensive income each  year. This resulted in lower pension expense recognized in fiscal 2011. • In applying the fresh-start option, the Company recognized all cumulative actuarial gains and losses calculated under Canadian  GAAP at the date of transition.  1. A net increase to employee future benefit liabilities of $2.0 million; 2. A net deferred income tax asset of $0.5 million; 3. An increase to Accumulated Other Comprehensive Income of $1.7 million; and 4. A reduction to employee future benefit expense of $0.3 million with an increase to deferred income taxes of $0.1 million.