Management's Discussion and Analysis (cont’d) effectively reduced our product cost. In domestic currency,  Adjusted EBITDA 4  as a percentage of sales was 8.2%, up a  fraction of a percentage point from the previous year.  Adjusted EBITDA 4  in domestic dollars was affected by the  following:  • seafood and other input cost increases (partially offset by  the effect of a stronger Canadian dollar on purchases of  seafood for the Company’s Canadian operations);  • Viking and Icelandic USA added $5.4 million to Adjusted EBITDA 4 ;  • higher slotting and couponing costs on the launch of  new products and expansion of distribution for existing  products;  • price increases to counteract the increase in cost;  • higher distribution and storage costs, resulting from an  increase in sales relative to the previous year and higher  energy costs;  • selling and administrative costs increased compared to last  year as a result of the Viking Acquisition;  • stock compensation expense decreased in 2011 as the  increase in the Company’s share price in 2010 was not  repeated to the same extent in 2011, and;  • we realized increased efficiencies in our operations.  The table below reconciles our Adjusted EBITDA 4  with  measures that are found in our financial statements. It  should be noted that Standardized EBITDA includes a stock  option expense of $0.7 million in 2011 compared to $3.7  million in 2010. The larger stock option expense in 2011 was  the result of the significant appreciation in the Company’s  stock price in 2010. Fifty-two weeks ended Fifty-two weeks ended December 31, 2011 January 1, 2011 (Amounts in $000s) Canada U.S. Total  Canada  U.S.  Total  Net income  $ 13,049 $ 5,131 $ 18,180 $ 12,313  $  7,672 $ 19,985  Add back:  Depreciation  3,642  4,259  7,901 3,577 3,726  7,303  Amortization  229 1,604 1,833   212 992 1,204  Financing costs   1,837  4,146  5,983  1,337 3,828  5,165  Income taxes   5,379  3,953  9,332   7,410  5,229  12,639  Standardized EBITDA 24,136 19,093 43,229   24,849  21,447  46,296  Add back (deduct):  Business acqusition, integration and other expenses"   1,265 10,010 11,275   86  789  875  Loss (gain) on disposal of assets  17 176  193   45  (32)   13  Adjusted EBITDA 4  25,418 29,279 54,697   24,980  22,204  47,184 Adjusted EBITDA  is earnings before interest, taxes, depreciation and amortization, business acquisition, integration and other expense as disclosed on the  consolidated statements of income Management believes that this is a useful performance measure as it approximates cash generated from operations,  before capital expenditures and changes in working capital and excludes non-operating items Adjusted EBITDA also assists comparison among companies  as it eliminates the differences in earnings due to how a company is financed Adjusted EBITDA does not have a standardized meaning prescribed by  generally accepted accounting principles and therefore may not be comparable to similar measures presented by others Our definition of Adjusted EBITDA  follows the October 2008 general principles and guidance for reporting EBITDA issued by the Canadian Institute of Chartered Accountants (CICA) We discuss Adjusted EBITDA 4 , sometimes referred to simply as EBITDA 4 , and both terms are used interchangeably in various  places in this document. We also refer to Adjusted EBITDA 4  of our Canadian operations and of our U.S. operations. These are  calculated in the same fashion as described above and can be reconciled to our operating segment information disclosure Note 19  to the consolidated financial statements. ANNUAL REPORT 2011 37