Note 13 - Derivative financial instruments |
9 Months Ended | ||
|---|---|---|---|
Oct. 02, 2011 | |||
| Derivative Instruments and Hedging Activities Disclosure [Text Block] |
During
the three months ended October 2, 2011 the Company entered
into forward foreign exchange contracts to reduce its
exposure to foreign exchange currency rate changes related to
forecasted Canadian dollar denominated payroll, rent and
utility cash flows in the remainder of fiscal 2011 and the
first quarter of 2012. These contracts were effective as
hedges from an economic perspective, but were not designated
as hedges for accounting purposes under ASC 815. Accordingly,
changes in the fair value of these contracts were recognized
in the consolidated statement of operations and comprehensive
income. The Company does not enter into forward foreign
exchange contracts for trading or speculative
purposes.
As
of October 2, 2011, forward foreign exchange contracts with
an aggregate exercise value of $7,037 were outstanding, and
are to be settled between November 30, 2011 and January 31,
2012 at an average forward rate of USD $1.00 = CAD $1.031.
The unrealized loss recognized in earnings as a result of
revaluing the instruments to fair value on October 2, 2011
was $125 which was included in loss on derivative financial
instruments in the statement of operations and comprehensive
income and accrued liabilities on the balance sheet. Fair
value was determined using the market approach with quoted
prices in active markets for identical assets.
|