Note 20 – Goodwill The Group’s goodwill has arisen from past business combinations and is allocated to the following cash generating units: Branded Products divided in – Central Europe – Russia Barrier Packaging Food Packaging The development of goodwill is specified in below table: 2015 2014 Opening balance at 1 January 37 390 38 348 Translation differences 619 -958 Closing balance at 31 December 38 009 37 390 The allocation of the carrying amount of the goodwill is specified below: Branded Products Central Europe Branded Products Russia Barrier Packaging Food Packaging Total Carrying amount of goodwill 2015 7 636 6 681 21 933 1 759 38 009 Carrying amount of goodwill 2014 7 636 6 681 21 570 1 503 37 390 The Group provides goodwill impairment testing on annual basis as at 31 December. Impairment is determined by assessing the recoverable amount of each cash generating unit to which the goodwill relates. The recoverable amount of a cash generating unit is determined based on estimates of value in use. These calculations are based on estimated future cash flows before tax, based on financial budget and forecast approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. The growth rate does not exceed the long-term growth rate of the packaging market in which the relevant cash generating units operates. Key assumptions used for the calculations of value in use: 2015 Branded Products Central Europe Branded Products Russia Barrier Packaging Food Packaging Gross margin* 23.0% 20.0% 25.5% 23.0% Growth rate ** 2.0% 2.0% 2.0% 2.0% Discount rate *** 9.1% 10.6% 9.1% 9.1% Key assumptions used for the calculations of value in use: 2014 Branded Products Central Europe Branded Products Russia Barrier Packaging Food Packaging Gross margin* 22.7% 19.5% 24.5% 22.5% Growth rate ** 2.0% 2.0% 2.0% 2.0% Discount rate *** 9.1% 10.6% 9.1% 9.1% * Estimated gross margin ** Weighted average growth rate used to extrapolate cash flows beyond the budget period *** Discount rate used in calculating the present value of estimated future cash flows Management has determined the budgeted gross margins based on past performance and its expectations for the market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are based on weighted average cost of capital and reflect specific risks relating to the various reported cash generating units. According to management´s best judgement , any reasonable change in the key variables will not cause calculated the value-in-use for any of the CGUs to fall below the carrying amount.