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The table below reconciles our Standardized Free Cash Flow and Adjusted Free Cash Flow with measures that are in accordance with IFRS. 

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* Per Cash Flow Statement 

We discuss liquidity risk in Section 8.9 below and Note 24 in our financial statements. 

## Contractual Obligations 

## Capital Expenditures 

Gross capital expenditures for 2011 were $7.8 million compared with $5.3 million in the previous year. The increase is attributable primarily to higher spending on information technology projects, including the Product Life Cycle software. 

We plan 1  to invest approximately $9 million to $13 million in capital assets in 2012. Almost $3.8 million of our capital expenditures in 2012 are expected 1  to be for strategic initiatives or related to the achievement of synergies on the Acquisition and a further $1.8 million for projects that will reduce the cost of our operations. The remainder of the capital budget is for projects that will ensure we continue to be in compliance with regulatory and other requirements, and for the replacement of aging equipment. Cash generated from operations and short-term borrowings will fund capital additions in 2012. 

Contractual obligations relating to our long-term debt, finance lease obligations, operating leases, purchase obligations, and other long-term obligations are disclosed in the table below. 

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Purchase obligations are for the purchase of seafood and other non-seafood inputs, including flour, paper products and frying oils. See Sections 8.2 and 8.5 for more details. 

## Financial Instruments 

## CLASSIFICATIOn OF FInAnCIAL InSTRuMEnTS 

We utilize derivative financial instruments in accordance with a written policy to manage foreign currency, commodity and interest rate exposures. The policy prohibits the use of derivative financial instruments for trading or speculative purposes. 

We formally document all relationships between hedging instruments and hedged items, as well as risk management objectives and strategy for undertaking various hedge transactions. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in fair values or cash flows of hedged items. There were no highly probable transactions for which hedge accounting has been claimed that have not occurred. Any portion of hedge ineffectiveness has been recognized in the income statement as it has occurred. 

The following table identifies all of the financial instruments and the value recorded at the balance sheet date. The carrying values of held-for-trading financial assets, loans and receivables, and other financial liabilities approximate fair value due to the short term to maturity of these financial instruments. Financial liabilities carried at amortized cost are shown at their amortized cost using the effective interest rate method. Items accounted as hedges represent fair value of the Company’s foreign exchange contracts as well as the fair value of its interest rate swap on its long-term debt. 

