NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Impairment testing for cash-generating units containing goodwill The estimated value in use of all units exceeded their carrying values. As a result, no goodwill impairment was recorded. Impairment testing for Label and Container Segments was done by a comparison of the unit’s carrying amount to its estimated value in use, determined by discounting future cash flows from the continuing use of the unit. Key assumptions used in the determination of the value in use include growth rates of 2.5% – 4.2% for Container and Label and a discount rate ranging from 9.0% – 10.5%. Discount rates reflect current market assumptions and risks related to the segments and are based upon the weighted average cost of capital for the segment. The Company’s historical growth rates are used as a basis in determining the growth rate applied for impairment testing. For the purpose of impairment testing, goodwill is allocated to the Company’s operating segments, which represent the lowest level within the Company at which the goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill allocated to each unit are as follows: Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) 13. INTANGIBLE ASSETS 14. GOODWILL 64 CCL Industries Inc. 2011 Annual Report Dec 31, 2011 Dec 31, 2010 Jan 1, 2010 Label $ 343,050 $ 337,792 $ 346,051 Container 12,738 12,735 12,743 $ 355,788 $ 350,527 $ 358,794 Customer relationships Patents and trade marks Software Total Goodwill Cost Balance at January 1, 2010 $ 65,977 $ 9,348 $ 14,542 $ 89,867 $ 358,794 Additions — 254 — 254 — Disposals — (284) — (284) — Effect of movements in exchange rates (1,469) (2,393) (334) (4,196) (8,267) Balance at December 31, 2010 $ 64,508 $ 6,925 $ 14,208 $ 85,641 $ 350,527 Additions 2,600 244 338 3,182 3,548 Disposals — (191) (196) (387) — Effect of movements in exchange rates 1,571 (17) 643 2,197 1,713 Balance at December 31, 2011 $ 68,679 $ 6,961 $ 14,993 $ 90,633 $ 355,788 Amortization and impairment losses Balance at January 1, 2010 $ 23,642 $ 7,435 $ 13,598 $ 44,675 $ — Amortization for the year 5,643 235 198 6,076 — Disposals — (284) — (284) — Effect of movements in exchange rates (794) (1,595) (490) (2,879) — Balance at December 31, 2010 $ 28,491 $ 5,791 $ 13,306 $ 47,588 $ — Amortization for the year 5,792 136 443 6,371 — Disposals — (77) (193) (270) — Effect of movements in exchange rates 1,591 (56) 556 2,091 — Balance at December 31, 2011 $ 35,874 $ 5,794 $ 14,112 $ 55,780 $ — Carrying amounts At January 1, 2010 $ 42,335 $ 1,913 $ 944 $ 45,192 $ 358,794 At December 31, 2010 $ 36,017 $ 1,134 $ 902 $ 38,053 $ 350,527 At December 31, 2011 $ 32,805 $ 1,167 $ 881 $ 34,853 $ 355,788