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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) 

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* This hedge was designated on June 1, 2010. Changes in fair value from that date to maturity were then accounted for on the income statement. 

** There is an annual principal payment on this swap. Remaining principal amounts are C$5.4 million and EUR3.6 million. 

US$323.7 million (2010 – US$328.4 million) of unsecured U.S. dollar-denominated senior notes (hedging item) have been used to hedge the Company’s exposure to its net investment in self-sustaining U.S. dollar-denominated operations with a view to reducing foreign exchange fluctuations. The foreign exchange effect of both the senior notes and the net investment in U.S. dollar- denominated subsidiaries is reported in other comprehensive income. These have been and continue to be 100% fully effective hedges as the notional amounts of the hedging items equal the portion of the net investment balance being hedged. No ineffectiveness has been recognized in the income statement. 

## (d) Credit risk 

## Exposure to credit risk 

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: 

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## Impairment losses 

The aging of trade receivables at the reporting date was: 

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The movement in the allowance for impairment in respect of trade receivables during the year was as follows: 

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