## Notes to consolidated financial statements September 27, 2014 and September 28, 2013 

(Millions of dollars, unless otherwise indicated) 

## Non-controlling interests 

Non-controlIing interests are generally recognized in equity. However, with respect to its interests in Adonis, Phoenicia and Première Moisson, the Corporation has the option to buy out the minority interests and the minority shareholders in these companies have the option to be bought out by the Corporation under certain conditions on the option s’ exercisable dates. Given these options, the non-controlling interests become a financial liability . It is classified as "Financial liabilities held for trading" and measured at fair value with gains or losses resulting from the revaluation at the end of each period recorded in net earnings or in retained earnings. The Corporation elected to record them in retained earnings. 

## Derivative financial instruments 

In accordance with its risk management strategy , the Corporation uses derivative financial instruments for hedging purposes. On inception of a hedging relationship, the Corporation indicates whether or not it will apply hedge accounting to the relationship. Should there be any , the Corporation formally documents several factors, such as the election to apply hedge accounting, the hedged item, the hedging item, the risks being hedged and the term over which the relationship is expected to be ef fective, as well as risk management objectives and strategy. 

The effectiveness of the hedging relationship is measured at its inception to determine whether it will be highly effective over the term of the relationship and assessed periodically to ensure that hedge accounting is still appropriate. The results of these assessments are formally documented. 

The Corporation uses foreign exchange forward contracts to hedge against foreign exchange rate fluctuations in respect of future foreign-denominated purchases of goods and services. Given their short-term maturity, the Corporation elected not to apply hedge accounting to its foreign exchange forward contracts. These derivative financial instruments are classified as "Financial assets or liabilities at fair value through net earnings" and measured at fair value with revaluation at the end of each period. Resulting gains or losses are recorded in net earnings. 

## Fair value measurements hierarchy 

Fair value measurements of assets and liabilities recognized at fair value in the consolidated statements of financial position or whose fair value is presented in the notes to the financial statements are categorized in accordance with the following hierarchy: 

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; 

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); 

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

## Fiscal year 

The Corporation's fiscal year ends on the last Saturday of September. The fiscal years ended September 27, 2014 and September 28, 2013 included 52 weeks of operations. 

