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Prior to November 30, 2011, the Company’s U.S. subsidiary had an interest rate swap agreement in place that converted principal and interest payments from Canadian to U.S. dollars and was used to hedge the foreign exchange exposure on the Company’s 6.31% Series A note. As of November 30, 2011, the Company divested itself of the swap. As of January 1, 2011, the notional amount of the interest rate swap was US$15.8 million and as of January 3, 2010 was US$17.2 million, whereby it received a Canadian dollar fixed rate of interest of 6.31% and paid a fixed U.S. dollar rate equal to 6.26% on the notional amount. 

The principal payments required on long-term debt and finance leases in each of the next five fiscal periods and thereafter are as follows: 

## Long-term debt 

<img src='content_image/137617.jpg'>

## Finance lease obligations 

<img src='content_image/137616.jpg'>

## 14. FUTURE EmPlOyEE bENEFITS 

## deScription of penSion and non-penSion benefit planS 

In Canada, the Company maintains a number of defined contribution plans and defined benefit pension plans covering all Canadian employees. With respect to United States employees, the Company’s subsidiary maintains a defined contribution plan (401k) that covers all U.S. employees. 

The Company sponsors four funded and four non-funded defined benefit pension plans. No Company pension plans provide indexation in retirement. 

The funded defined pension benefit plan for the Nova Scotia union employees is a flat-dollar plan with negotiated increases. 

The funded defined benefit plan for Canadian salaried employees has been wound up with only a few members who have not yet confirmed whether they will elect to be transferred to the Company’s Defined Contribution Plan for salaried employees or have an annuity purchased on their behalf. 

The Company also sponsors a non-pension benefit plan for employees hired before May 19, 1993. This benefit is a paid-up life insurance policy or a lump sum payment based on the employee’s final earnings at retirement. 

The Company has pension plans for its management employees as follows: 

## canadian management penSion planS 

Effective December 31, 1999, the Company introduced a new Defined Contribution Pension plan for all salaried employees including new Named Executive Officers (“NEOs”). The Company also sponsors a defined benefit plan specifically for Canadian management employees (the “Management Plan”). On December 31, 2011, 21 persons were enrolled as active members in the Management Plan including the NEOs who are Canadian residents and were employed prior to January 1, 2000. The objective of the Management Plan is to provide an annual pension (including Canada Pension Plan) of 2% of the average of a member’s highest five years’ regular earnings while a member of the Management Plan multiplied by the number of years of credited service. Incentive payments are not eligible earnings for pension purposes. The Management Plan for the NEOs in Canada was grandfathered, and no new entrants are permitted. 

