notes to the Consolidated Financial Statements (cont’d) As at the dates indicated below, the Company had the following financial instruments measured at fair value categorized into the  following levels: During the fifty-two week periods ended December 31, 2011, January 1, 2011 and January 3, 2010, there were no transfers between  Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements.  The primary objective of the Company’s capital management policy is to ensure that it maintains a strong credit rating and healthy  capital ratios in order to support its business and maximize shareholder value. Capital includes funded debt, letters of credit, and  common shareholder equity including accumulated other comprehensive income, except for gains and losses on derivatives used to  hedge interest and foreign exchange cash flow exposures.  The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or  adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, purchase  its capital stock under a Normal Course Issuer Bid (“NCIB”) or issue new shares. Capital distributions, including purchases of stock,  are subject to a fixed charge coverage ratio under the Company’s working capital debt facilities. This ratio is only operative if the  consolidated aggregated availability under the working capital debt facility is less than $20 million. Capital distributions, including  dividends and NCIB purchases are also restricted under the new long-term debt agreements. The Company has availability in excess  of $40 million as at December 31, 2011. The Company monitors capital (excluding letters of credit) using the ratio of funded debt to  capitalization, which is net interest bearing debt divided by total capital plus net interest-bearing debt. The Company’s objective is to  keep this ratio between 35% and 50%. Seasonal working capital debt may result in the Company exceeding the ratio at certain times  throughout the fiscal year. The Directors of the Company have also decided that this range can be exceeded on a temporary basis to  affect the Icelandic USA Acquisition.  The Company includes in net funded debt, finance lease obligations and interest-bearing loans and borrowings, excluding deferred  financing fees, less cash and cash equivalents. 97 AnnuAl RepoRt 2011 23. CAPITAl mANAgEmENT January 3  2010  Level 1  Level 2  Level 3 Assets measured at fair value Foreign exchange contracts; hedged  $   1,590 $   – $   1,590 $   – Liabilities measured at fair value Foreign exchange contracts; hedged   (3,989)   –  (3,989)   – Interest and principal cross currency swap   (928)   –  (928)   – January 1  2011  Level 1  Level 2  Level 3 Assets measured at fair value Foreign exchange contracts; hedged  $   890 $   – $   890 $   – Liabilities measured at fair value Foreign exchange contracts; hedged   (2,334)   –  (2,334)   – Interest and principal cross currency swap   (207)   –  (207)   – (All amounts in $000s) December 31 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  –