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## intereSt rateS uSed for determining fair value 

The interest rates used to discount the estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread and were as follows: 

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## amortized coSt impact on intereSt expenSe 

In the fifty two-week period ended December 31, 2011, the Company expensed $127 thousand and $306 thousand (January 1, 2011: $457 thousand and $165 thousand) of short-term and long-term interest, respectively, relating to interest that was calculated using the effective interest rate method relating to its transaction fees and its borrowings. 

## forward exchange contractS 

The Company systematically enters into foreign exchange contracts, with maturities of 15 months or less, to hedge future cash outflows for the purchase of raw materials. The Company uses hedge accounting to account for these foreign exchange contracts. 

At period-end, the Company had the following total foreign exchange forward single rate contracts outstanding: 

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