Notes to Consolidated Financial Statements (a) Cash-generating units (b) Impairment testing of goodwill (c) Impairment testing of fund contracts [in thousands of Canadian dollars, except per share amounts] CI has two cash-generating units [“CGU”] for the purpose of assessing the carrying amount of the allocated goodwill  and intangible assets, being the asset management and asset administration operating segments as described in Note 15. As at December 31, 2012 and 2011, CI has allocated goodwill of $927,344 and $192,582 to the asset management and asset  administration operating segments, respectively. The recoverable amount of goodwill for the asset management and  asset administration operating segments as at December 31, 2012 and 2011 has been determined based on a fair value less  costs to sell calculation, using a valuation multiple applied to assets under management and assets under administration,  respectively. This methodology is commonly used in the marketplace by independent equity research analysts. The calculation of the recoverable amounts exceeds the carrying amounts of both the asset management and the asset  administration operating segments, including goodwill. Recent equity market performance, recent market transactions  and CI’s current market capitalization provide additional evidence that the recoverable amount of these operating  segments is in excess of the carrying amounts. As at December 31, 2012 and 2011, CI had indefinite life fund management contracts within the asset management CGU  of $999,082. These are contracts for the management of open end funds which have no expiry or termination provisions. The fair value of indefinite life intangibles within the asset management operating segment as at December 31, 2012 and  2011 has been determined based on a value in use calculation, using 10 year forecasts and a terminal value for the period  thereafter. The key assumptions used in the forecast calculation include assumptions on market appreciation, net sales of  funds and operating margins. The terminal value has been calculated assuming a long-term growth rate of 2% per annum  in perpetuity [December 31, 2011 - 2%], based on a long-term real GDP growth rate. A discount rate of 7.25% per annum  [December 31, 2011 - 8.05%] has been applied to the recoverable calculation. The calculation of the recoverable amount exceeds the carrying amount of indefinite life management contracts as at  December 31, 2012 and 2011. Recent equity market performance provides additional evidence that the recoverable amount  of indefinite life intangibles is in excess of the carrying amount. 62 December 31, 2012 and 2011