Deferred income tax Deferred income tax relates to the following: Fifty-two weeks ended (Amounts in $000s) December 31, 2011  January 1, 2011 Opening balance, beginning of year  $  (7,492) $  (2,077) Deferred income tax expense during the period recognized in income  (3,640) (6,259) Deferred income tax arising from an acquisition ( note 4 )  (28,136) – Deferred income tax recovery during the period recognized in retained earnings   400  638  Deferred income tax (expense) recovery during the period  recognized in other comprehensive income   (536)  206  Closing balance, end of year  $ (39,404) $   (7,492) Reconciliation of deferred income tax asset (liabilities), net  The Company has net operating losses in its U.S. subsidiaries of $26.3 million (January 1, 2011: $18.2 million; January 3, 2010: $31.3 million) that are available for use from 2012-2028. A deferred income tax asset has been recognized for the amount that is  probable to be realized. The Company can control the distribution of profits and has determined that undistributed profit of its subsidiaries will not be  distributed in the foreseeable future. Accordingly, no deferred income tax liability has been recorded on the undistributed profit of its subsidiaries. The temporary difference associated with investments in subsidiaries, for which a deferred tax liability has not been recognized, total to $0.2 million (January 1, 2011: $0.2 million; January 3, 2010: $0.4 million). There are no income tax consequences attached to the payment of dividends in either 2011 or 2010 by the Company to its  shareholders. 90 HIGH lIneR FooDS InCoRpoRAteD Consolidated income Consolidated balance  statement for the fifty-two sheet as at  weeks ended December 31, January 1,  January 3, December 31, January 1, (Amounts in $000s) 2011 2011  2010  2011 2011 Accelerated depreciation for tax purposes   on property, plant and equipment  $ (13,725) $   (9,161)  $   (8,096)  $  464  $   1,060  Inventory  (7,975) (4,865)  (4,035)  272 1,013  Intangible assets   (33,212)  (6,362)   (6,729)   2,632   (480) Pension   3,151   2,863  1,961 27  (303) Revaluation of cash flow hedges   (160)  442  918  (14)  186  Losses available for offset against   future taxable income   10,229  6,902  11,276  (151)  4,917  Deferred charges and other   2,288   2,689  2,628 410  (134) Deferred income tax expense – – –  3,640  6,259  Net deferred income tax liability  $ (39,404) $   (7,492)  $   (2,077)  $  – $  – Deferred income tax assets  1,695   2,403  3,628  Deferred income tax liabilities  (41,099)   (9,895)   (5,705)  Net deferred income tax liability  $ (39,404) $   (7,492)  $   (2,077)  Reflected in the balance sheet as follows: 