Hydro Annual Report 2011b

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FINANCIAL AND OPERATING PERFORMANCE
Items excluded from underlying EBIT and net income
9) Impairment charges occur in the period when an asset or a group of assets is identified to have lost its value, causing a write-down to the recoverable
amount. In most of our impairment situations, there is no single event directly causing the write-down. The loss is therefore not necessarily closely linked to
performance in a single period.
10) Recognition of pension plan amendments, curtailments and settlements.
11) Insurance compensation for damages on assets, recognized as income (includes equity accounted investments).
12) Gains and losses on divestments include a net gain or loss on divested businesses and/or individual major assets.
13) Effects related to the acquisition of Vale Aluminium on February 28, 2011 include the revaluation gain of Hydro's pre-transaction stake in Alunorte and
CAP, gains and losses related to the settlement of pre-existing contracts and agreements, as well as the fair value adjustment of inventory of finished goods
sold.
14) Realized and unrealized gains and losses on foreign currency-denominated accounts receivables and payables, funding and deposits, and forwardcurrency
contracts purchasing and selling currencies that hedge net future cash flows from operations, sales contracts and working capital.
15) In order to present underlying net income on a basis comparable with our underlying operating performance, we have calculated the income tax effect of
items excluded from underlying income before tax. In addition, we have adjusted for write-down of deferred tax assets in 2011.