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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) 

13. INTANGIBLE ASSETS 

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14. GOODWILL 

## Impairment testing for cash-generating units containing goodwill 

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: 

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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. 

The estimated value in use of all units exceeded their carrying values. As a result, no goodwill impairment was recorded. 

