Views
3 years ago

Annual Report 2008 - AMG Advanced Metallurgical Group NV

Annual Report 2008 - AMG Advanced Metallurgical Group NV

Mine expansion The

Mine expansion The Company expanded its mine during 2008. Mine expansion includes stripping costs of $3,790. Amortization of stripping costs did not begin in 2008 as the asset was only put into production in December 2008. Property, plant and equipment under construction During the year ended December 31, 2008, the subsidiaries of the Company embarked on several different expansion projects as well as certain required maintenance projects. Costs incurred up to December 31, 2008, which are included in construction in progress totalled $29,558 (2007: $15,091). Finance Leases At December 31, 2008, the Company had $635 (2007: $797) of finance leases for equipment and software. Depreciation of property, plant and equipment Depreciation expense for the year ended December 31, 2008 was $26,825 (2007: $17,149). Depreciation expense is recorded in the following line items in the consolidated income statement: 2008 2007 Cost of sales 24,441 14,040 Selling, general and administrative expenses 2,384 3,109 Total 26,825 17,149 Sale of equipment Certain equipment was sold in the years ended December 31, 2008 and 2007. In those years, the Company received proceeds of $1,268 and $768, respectively. In the year ended December 31, 2008, the proceeds were greater than the book value of the assets and gains of disposal of equipment were $896. In the year ended December 31, 2007, the proceeds were less than the book value of the assets and as such, losses on disposal of equipment were recorded in the amount of $93. Impairment testing Impairment losses were recorded at certain locations in 2008 and 2007 due to the discontinued use of certain assets. The Company performs goodwill impairment tests annually in accordance with IFRS guidelines. As a result of the goodwill impairment test on the Company’s newly acquired subsidiary, GK, the Company had to record an impairment charge against GK’s machinery and equipment for $23,565. See note 13 for more details. In 2008, fixed asset impairment charges of nil (2007: $76) were recorded at a subsidiary in New Jersey where the Company effectively shut down all plant operations. The charges relate to the fixed assets of the plant site that ceased functioning and are presumed to have no resale value. In 2008, asset impairment charges of $743 (2007:$136) were recorded due to impairments on two buildings at a subsidiary in South Carolina and a subsidiary in Memphis. Haley plant closure On June 6, 2008, Timminco announced the closure of one of its manufacturing facilities in Haley, Ontario. Accordingly, certain assets were written down and an impairment loss of $988 was incurred during 2008. See note 28 for more details. The asset impairment charges, totalling $25,296 in 2008 (2007: $212) are included in the asset impairment expense line of the consolidated income statement. Security At December 31, 2008 properties with a carrying amount of $305,910 (2007: $115,653) are pledged as collateral to secure certain bank loans of subsidiaries. 106 Notes to the Consolidated Financial Statements

13. Intangible assets Other Customer Supply intangible Goodwill relationships contracts assets Total Cost Balance at January 1, 2007 36,116 16,124 52,240 Additions 454 2,063 2,517 Acquisition through business combination Disposals and transfers – – – – – Recognition of deferred taxes on acquisition (1,386) – – – (1,386) Effect of movements in exchange rates 4,796 2,157 6,953 Balance at December 31, 2007 39,980 – – 20,344 60,324 Balance at January 1, 2008 39,980 – – 20,344 60,324 Additions – – – 748 748 Acquisition through business combination 13,644 10,079 4,463 3,584 31,770 Disposals, reversals and transfers (931) – – – (931) Effect of movements in exchange rates (5,420) (585) (318) (2,104) (8,427) Balance at December 31, 2008 47,273 9,494 4,145 22,572 83,484 Amortization and impairment Balance at January 1, 2007 – – – (7,342) (7,342) Amortization – – – (1,514) (1,514) Disposals – – – (75) (75) Effect of movements in exchange rates (1,102) (1,102) Balance at December 31, 2007 – – – (10,033) (10,033) Balance at January 1, 2008 – – – (10,033) (10,033) Amortization (939) (1,408) (2,148) (4,495) Disposals and reversals – – – 167 167 Impairment (10,165) (8,607) (2,815) (1,382) (22,969) Effect of movements in exchange rates – 52 78 776 906 Balance at December 31, 2008 (10,165) (9,494) (4,145) (12,620) (36,424) Carrying amounts At January 1, 2007 36,116 – – 8,782 44,898 At December 31, 2007 39,980 – – 10,311 50,291 At January 1, 2008 39,980 – – 10,311 50,291 At December 31, 2008 37,108 – – 9,952 47,060 Intangible assets are comprised of goodwill, customer relationships, supply contracts and other intangible assets. For goodwill, there is no amortization recorded and instead, impairment tests are performed. The other intangibles amount represents certain licenses and a patent bought and used by a Canadian subsidiary related to a manufacturing process. This patent is being amortized over 10 years, beginning in 2007. Research and development costs Research and development costs are expensed as incurred and included in selling, general and administrative expenses. Research and development as of December 31, 2008 was $8,235 (2007: $6,191) Amortization of intangible assets Amortization expense for year ended December 31, 2008 was $4,495 (2007: $1,514). Amortization expense is recorded in the following line items in the consolidated income statement: 2008 2007 Cost of sales 2,056 1,367 Selling, general and administrative expenses 2,439 147 Total 4,495 1,514 Impairment testing for cash-generating units containing goodwill For the purpose of impairment testing, goodwill and indefinite-lived intangible assets are allocated to the Company’s operating divisions that represent the lowest level within the Company at which the goodwill is monitored for internal management purposes. Sudamin and LSM are included in the Advanced Materials segment, while ALD is included in the Engineering Services segment. Timminco and GK are included in their similarly named segments. Notes to the Consolidated Financial Statements 107

PDF 3.89 MB - AMG Advanced Metallurgical Group NV
Roto Smeets Group in 2010 Annual Report - RSDB NV
Annual Report 2008 - Komax Group
2008 Annual financial report - Klemurs
MICHELIN - 2008 ANNUAL REPORT
Annual Report 2008 (PDF) - Schulthess Group
Full RSDB annual report for 2008 - Roto Smeets Group
2008 Annual Report
2012 Annual Report - Italcementi Group
Annual report 2008 - Altarea Cogedim
2011 Annual Report - Italcementi Group
2007 Annual report - Groupe M6
2010 ANNUAL REPORT OVERVIEW OF THE gROUP - Financial ...
Annual Report 2008 - Orascom Telecom
2008 Annual Report - Tower Federal Credit Union
Download Annual Report 2003 - Mühlbauer Group
2011 Annual Report - TOM Group
Annual Report 2012 - ets group
Annual Report for the year ended 31 December 2008
ANNUAL REPORT AmG INSURANCE BERHAD - AmAssurance
ANNUAL REPORT 2008 - Gorenje Group
Annual Report 2008 - 2009 - Punj Lloyd Group
ArcelorMittal Annual Report 2008
annual report 2008 - About PUMA
ANNUAL REPORT 2007 | 2008 - SinnerSchrader AG
2009 Annual Report - Yellow Pages Group
Annual Report 2007 (PDF) - Schulthess Group
2010 Annual Report - e-KONG Group Limited
Annual Report - 12 months to 31 December 2007 - MWB Business ...