Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10. INVENTORIES Dec 31, 2011 Dec 31, 2010 Jan 1, 2010 Raw material $ 36,975 $ 32,978 $ 33,736 Work in progress 8,152 7,743 9,949 Finished goods 41,805 37,142 31,845 Total inventories $ 86,932 $ 77,863 $ 75,530 11. EQUITY ACCOUNTED INVESTMENTS The total amount of inventories recognized as an expense in 2011 was $975.0 million (2010 – $917.9 million), including depreciation of $93.5 million (2010 – $88.7 million). During 2011 and 2010, there were no inventory write-downs or reversal of write-downs. In September 2011, the Company completed the purchase of a 50% interest in Pacman-CCL from Albwardy Investment (“Albwardy”). The acquisition represents an expansion into new territories for the Company. Pacman-CCL is based in Dubai, United Arab Emirates, with additional operations in Cairo, Egypt, Muscat, Oman, and Jeddah, Saudi Arabia. Albwardy retains the remaining 50% economic interest in Pacman-CCL and, along with the Company, jointly controls Pacman-CCL. The Company is accounting for Pacman-CCL using the equity method. The total purchase price of US$18.5 million, less a US$2.0 million deposit paid in the second quarter of 2011, was settled on closing. Goodwill and intangibles arising on the transaction amount to $11.4 million, however, the Company is reviewing the valuation of net assets acquired, and therefore these figures may change upon completion of the review. In 2007, the Company, along with a Russian partner, invested in a pressure sensitive label business, CCL-Kontur, that services the territories of Russia and the Commonwealth of Independent States. CCL owns 50% of CCL-Kontur with the Russian partner having operating control of the business and, consequently, the investment is being carried at its equity value and is accounted for using the equity method. Summary financial information for equity accounted investments, not adjusted for the percentage ownership held by the Company is as follows: Current assets Non-current assets Current liabilities Non-current liabilities Total sales Earnings December 31, 2011 Pacman-CCL $ 14,063 $ 7,984 $ 4,765 $ 838 $ 8,447 $ 1,758 CCL-Kontur $ 8,201 $ 7,747 $ 4,207 $ — $ 30,837 $ 690 December 31, 2010 CCL-Kontur $ 11,791 $ 8,675 $ 7,874 $ — $ 38,586 $ 992 January 1, 2010 CCL-Kontur $ 11,530 $ 7,637 $ 6,162 $ — 62 CCL Industries Inc. 2011 Annual Report