NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) US$323.7 million (2010 – US$328.4 million) of unsecured U.S. dollar-denominated senior notes (hedging item) have been used to hedge the Company’s exposure to its net investment in self-sustaining U.S. dollar-denominated operations with a view to reducing foreign exchange fluctuations. The foreign exchange effect of both the senior notes and the net investment in U.S. dollar- denominated subsidiaries is reported in other comprehensive income. These have been and continue to be 100% fully effective hedges as the notional amounts of the hedging items equal the portion of the net investment balance being hedged. No ineffectiveness has been recognized in the income statement. * This hedge was designated on June 1, 2010. Changes in fair value from that date to maturity were then accounted for on the income statement. ** There is an annual principal payment on this swap. Remaining principal amounts are C$5.4 million and EUR3.6 million. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: (d) Credit risk Exposure to credit risk The movement in the allowance for impairment in respect of trade receivables during the year was as follows: The aging of trade receivables at the reporting date was: Impairment losses 78 CCL Industries Inc. 2011 Annual Report Notional principal amount Interest rate Fair value December 31 Fixed rate Fixed rate Paid (EUR) Received (CAD) 2011 (CAD) 2010 (CAD) Maturity Effective date C$70.4 million EUR50.0 million 3.82% 4.50% — 3,943.8 March 8, 2011 March 29, 2006 Notional principal amount Interest rate Fair value December 31 Floating rate Floating rate Paid (EUR) Received (CAD) 2011 (CAD) 2010 (CAD) Maturity Effective date C$36.0 million EUR23.6 million 6-month EURIBOR + 1.64% 3-month BA + 1.67% — — July 8, 2010* December 29, 2006 C$32.6 million** EUR21.3 million 6-month EURIBOR + 1.99% 3-month BA + 2.01% 709.1 1,305.2 September 16, 2012 December 29, 2006 Dec 31, 2011 Dec 31, 2010 Jan 1, 2010 Cash and cash equivalents $ 140,698 $ 173,197 $ 150,594 Trade and other receivables 192,003 174,011 166,499 Available-for-sale financial assets 10,790 14,852 17,630 Derivative instruments: assets 820 7,482 6,081 $ 344,311 $ 369,542 $ 340,804 Dec 31, 2011 Dec 31, 2010 Jan 1, 2010 Under 31 days $ 107,645 $ 93,943 $ 93,347 Between 31 and 90 days 65,138 56,029 50,965 Greater than 90 days 9,074 8,200 7,889 $ 181,857 $ 158,172 $ 152,201 Dec 31, 2011 Dec 31, 2010 Jan 1, 2010 Balance at January 1 $ 3,322 $ 3,513 $ 5,413 Increase (decrease) during the year 4 (191) (1,900) Balance at December 31 $ 3,326 $ 3,322 $ 3,513