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## Principal actuarial assumptions at the reporting period date (expressed as weighted averages) 

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The overall expected long-term rate of return on assets is 6.38%. The expected long-term rate of return is based on the portfolio as a whole and not on the sum of the returns on individual asset categories. The return is based exclusively on historical returns, without adjustments. 

## Historical information 

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The Company expects $1.2 million in contributions to be paid to its defined benefit plans and $2.3 million to its defined contribution plans in fiscal 2012. 

In December 2011, the Company issued letters indicating future dates where the service of certain employees will no longer be required by the Company. If the employee continues to provide service until the date communicated in their letter, they will be entitled to receive benefits as defined in the letter as at that time. If the employee does not remain in service with the Company, no benefits or severance payments will be made to the employees. The Company expects that 100% of the employees will remain employed until the date communicated in their letter. As a result, the Company has recognized the related compensation expense for the pro rata service provided, from the date communicated to the reporting date, in the amount of $0.5 million in business acquisition, integration and other expenses on the income statement and has included the unpaid portion as a provision ( note 11 ) on the statement of financial position. 

## 15. COmmITmENTS 

Operating lease commitments for the next five years and amounts due thereafter are shown in the following table: 

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Operating lease commitments result principally from leases for cold storage facilities, office equipment, premises and production equipment. Operating lease payments recognized as an expense during the year are $2.8 million. 

The Company’s lease arrangements do not contain restrictions concerning dividends, additional debt and further leasing imposed by the lessor and on aggregate contain the option to renew the contract for at least one additional term. 

The Company has letters of credit outstanding as at December 31, 2011 relating to the procurement of inventories and the security of an obligation under a lease of $1.5 million (January 1, 2011: $3.7 million; January 3, 2010: $2.2 million) that are denominated in U.S. dollars (translated at the balance sheet date rate). The Company also had a letter of credit outstanding as at December 31, 2011 relating to the securitization of the Company’s SERP benefit plan ( note 14 ) in the amount of $9.3 million (January 1, 2011: $7.5 million; January 3, 2010: $5.7 million). 

