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The transaction was financed with proceeds from a new long-term loan for US$250 million (see note 13 ) and an increase in the Company’s existing asset-based loan facility (see note 12 ). Proceeds from the new long-term loan were used to repay existing long- term loan indebtedness of approximately US$47 million, with the remainder being used to fund the acquisition and transaction costs of $26.0 million. $10.9 million of these transaction costs were expensed during the year as business acquisition and other expenses on the statement of income and $15.1 million were capitalized as deferred financing costs that have reduced the value of debt on the balance sheet to be amortized to interest expenses in the future. 

The net assets recognized in the December 31, 2011 financial statements are based on a provisional assessment of fair value as the Company has sought an independent valuation for the equipment, real estate, intangible assets and residual goodwill acquired for which the accounting is incomplete. The results of the valuation have not been received as at the date these financial statements were approved for issue by management. As a result, the financial information disclosed is based on management’s best estimate and is disclosed on a provisional basis. 

Pending the finalization of the valuation reports noted above and their impact on accounting for taxes, which are incomplete at this time, the Company is only able to provide a provisional fair value for customer relationships and brands acquired as part of the acquisition based on preliminary information we have gathered during the due diligence phase of completing the acquisition and is subject to revisions in future periods resulting from the finalization of the purchase price accounting. Goodwill and intangible assets are allocated entirely to the US cash-generating unit. The goodwill and intangibles recognized are not expected to be deductible for income tax purposes. 

From the date of acquisition, the Acquisition contributed $9.0 million of revenue and $0.7 million of earnings before interest and taxes, excluding one-time business acquisition costs. 

## 5. gOODWIllAND INTANgIblE ASSETS 

Goodwill is tested for impairment annually (as at the first day of the Company’s fourth quarter) and when circumstances indicate the carrying value may be impaired. The Company’s impairment test for goodwill and intangible assets with indefinite useful lives was based on fair value less costs to sell as of the IFRS transition date and as of the fiscal year end 2011. The method used to determine the Company’s fair value less costs to sell uses a discounted cash flow model. The key assumptions used to determine the recoverable amount for the different cash-generating units for the most recently completed impairment calculations for fiscal 2011, fiscal 2010 and the IFRS transition date as at January 3, 2010 are discussed below. The Company has not identified any indicators of impairment at any other date and, as such, has not completed an additional impairment calculation. 

The following table outlines the carrying amount and classification of the Company’s intangible assets for the periods ending December 31, 2011, January 1, 2011 and January 3, 2010: 

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