WITH MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL REVIEW ANNUAL REPORT 2013 11 Management’s Discussion and Analysis  Financial Review  Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1 . Vision, Core Businesses and Strategy . . . . . . . . . . . . . 13 1 .1 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1 .2  Core Businesses . . . . . . . . . . . . . . . . . . . . . . . . . 14 1 .3 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2 . Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . .19 2 .1  Our Brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 2 .2  Our Organization . . . . . . . . . . . . . . . . . . . . . . . . .20 2 .3  Grow Through Innovation . . . . . . . . . . . . . . . . .20 3 . Capability: Resources and Core Competencies . . . . .20 3 .1  Liquidity and Capital Resources . . . . . . . . . . . .20  3 .2  Operational Resources . . . . . . . . . . . . . . . . . . . .25 3 .3  Core Competencies . . . . . . . . . . . . . . . . . . . . . . .26 4 . Other Items Important to Understanding our Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 4 .1  Accounting Standards . . . . . . . . . . . . . . . . . . . .27 4 .2  Transactions with Related Parties . . . . . . . . . .27 4 .3  Amortization of Intangible Assets . . . . . . . . . .28 4 .4   Business Acquisition, Integration  and Other Expenses . . . . . . . . . . . . . . . . . . . . . . .28 4 .5  Financing Costs . . . . . . . . . . . . . . . . . . . . . . . . . .29 4 .6  Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4 .7 Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 5 . Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 5 .1  The American Pride Acquisition . . . . . . . . . . . .30 5 .2  Overall Performance . . . . . . . . . . . . . . . . . . . . . .31 5 .3  Consolidated Results . . . . . . . . . . . . . . . . . . . . . .33 5 .4  Performance by Segment . . . . . . . . . . . . . . . . . .39 6 . Summary of Results for the Fourth Quarter Ended December 28, 2013 . . . . . . . . . . . . . . . . . . . . .40 7 . Critical Accounting Estimates . . . . . . . . . . . . . . . . . . . .44 8 . Risk Factors and Risk Management . . . . . . . . . . . . . . .45 8 .1  Board Accountability . . . . . . . . . . . . . . . . . . . . . .45 8 .2 Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 8 .3  Availability of Seafood . . . . . . . . . . . . . . . . . . . . .46 8 .4  Loss of Customer and Credit Risk . . . . . . . . . . . 46 8 .5  Foreign Currency . . . . . . . . . . . . . . . . . . . . . . . . .46 8 .6  Non-Seafood Commodities . . . . . . . . . . . . . . . .48 8 .7  Food Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 8 .8  Growth (other than by Acquisition) . . . . . . . . .49 8 .9 Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 8 .10 Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 8 .11 Sustainability, Corporate Responsibility and Public Opinion . . . . . . . . . . . . . . . . . . . . . . .49 8 .12 Industry Consolidation . . . . . . . . . . . . . . . . . . . .50 8 .13 Increase in Seafood Production from Asia . . .50 8 .14 Competition Risk . . . . . . . . . . . . . . . . . . . . . . . . .50 9 . Forward-Looking Information . . . . . . . . . . . . . . . . . . . . .51 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . 52 Management’s Responsibility . . . . . . . . . . . . . . . . . . . . . . .53 Consolidated Statement of Financial Position . . . . . . . .54 Consolidated Statement of Income . . . . . . . . . . . . . . . . . .55 Consolidated Statement of Comprehensive Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Consolidated Statement of Accumulated Other Comprehensive (Loss) Income (“AOCI”) . . . . . . . . .56 Consolidated Statement of Changes in Shareholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . .57 Consolidated Statement of Cash Flows . . . . . . . . . . . . . . .58 Notes to the Consolidated Financial Statements . . . . . .59