MANAGEMENT’S DISCUSSION  AND ANALYSIS/ FINANCIAL REVIEW Management’s Discussion and Analysis  8. Risk Management 43 8.1  Board Accountability 43 8.2  Procurement 43 8.3  Loss of Customer and Credit Risk 44 8.4  Foreign Currency 44 8.5  Other Commodities 45 8.6  Food Safety 46 8.7  Technology 46 8.8  Acquisitions 47 8.9  Liquidity 47 8.10 Sustainability, Corporate Responsibility and Public Opinion 47 9. Forward-Looking Information 48 Financial Review  Independent Auditors’ Report 49 Management’s Responsibility 50 Consolidated Statements of Financial Position 51 Consolidated Statements of Income 52 Consolidated Statements of Comprehensive Income 53 Consolidated Statements of Accumulated Other Comprehensive Loss 53 Consolidated Statements of Changes in Shareholders’ Equity 54 Consolidated Statements of Cash Flows 55 Notes to the Consolidated Financial Statements 56 Introduction 14 Important Notes 14 1. Vision, Core Businesses, and Strategy 15 1.1  Vision 15 1.2  Core Businesses 15 1.3  Strategy 16 2. Strategic Measures 20 2.1  Our Brands 20 2.2  Our Organization 21 2.3  Grow Through Innovation 21 3. Capability: Resources and Core Competencies 22 3.1  Liquidity and Capital Resources 22  3.2  Operational Resources 27 3.3  Core Competencies 28 4. Other Items Important to Understanding our Results 29 4.1  Accounting Standards 29 4.2  Transactions with Related Parties 30 4.3  Financing Costs 30 4.4  Business Acquisition, Integrations and  Other Expenses 30 4.5  Amortization of Intangible Assets 30 4.6  Income Taxes 31 4.7  Contingencies 31 4.8  Contractual Arrangements 31 5. Performance 31  5.1  The Icelandic USA and Viking Acquisitions 31 5.2  Overall Performance 32 5.3  Consolidated Results 34 5.4  Performance by Segment 39 6. Summary of Results for the Fourth Quarter ended December 31, 2011 40 7. Critical Accounting Estimates 41 13 ANNUAL REPORT 2011