(In thousands of dollars except as noted and per share amounts) Notes to CoNsolidated FiNaNCial statemeNts 9.  FINANCIAL INSTRUMENTS (CONTINUED):   If, on September 28, 2013, the natural gas market price would have increased by US$1.00, and all other variables  remained constant, net earnings would have decreased by $2.7 million (September 29, 2012 - decrease of  $2.7 million). If the natural gas value would have decreased by US $1.00, and all other variables remained  constant, net earnings would have increased by $2.7 million (September 29, 2012 - increase of $2.7 million). Management believes that this impact for natural gas is not representative, as this variance will mostly offset  when the actual natural gas is purchased and used; at such time a gain or loss on the liquidation of the natural gas  contracts would mostly offset the same increase or decrease in the actual physical transaction.  The fair value of derivative instruments is the estimated amount that the Company would receive or pay to terminate  the instruments at the reporting date.The fair values have been determined by reference to prices available from the  markets on which the instruments trade, subject to credit adjustments as applicable. The fair values of all derivative  instruments approximate their carrying value and are recorded as separate line items on the consolidated statement of  financial position. The following describes the fair value determinations of financial instruments: (i)   Cash and cash equivalents: Due to the short-term maturity of these instruments, the carrying amount approximates  fair value. (ii) Trade and other receivables and trade and other payables:The carrying amount approximates fair value due to the  short-term maturity of these. (iii) Borrowings under the revolving credit facility: The carrying amount approximates fair value as the borrowings  bear interest at variable rates. (iv) The fair values for the derivative assets and liabilities are estimated using industry standard valuation models.  Where applicable, these models project future cash flows and discount the future amounts to a present value  using market-based observable inputs including interest rate curves, credit spreads, foreign exchange rates, and  forward and spot prices for currencies. Fair values of financial instruments 73 Annual Report 2013 Risks (continued): Except for the beet pre-hedge, management believes that the above is not representative, as the Company has  physical raw sugar purchases and refined sugar selling contracts that would offset most gains or losses realized  from such decrease or increase in the commodity value, when such contracts are liquidated.The Company has no  beet pre-hedge contracts as at September 28, 2013. However, if, on September 29, 2012, the price of raw sugar  would have increased by US$0.05 per pound, net earnings would have decreased by approximately $0.8 million.  A decrease in raw sugar value of US$0.03 per pound would have increased net earnings by approximately  $0.5 million. (e)  Commodity price risk (continued):