C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

(3) ALD’s value in use was determined by discounting the
future cash flows generated from the continuing use of
the unit and was based on the following key assumptions:
• Cash flows were projected based on actual operating
results and the 3-year business plan, which covers the
next three calendar years following the impairment
test date.
• The growth rate of 2% was used to extrapolate cash
flow projections beyond the period covered by the most
recent business plans. Management believes that this
growth rate does not exceed the long-term average
growth rate for the metallurgical and alternative
energy industry.
• Revenue projections are based on an internal 3-year
business plan.
• Discount rates of 8.00% and 8.98% were applied in
determining the recoverable amount of the unit for the
years ended December 31, 2010 and 2009, respectively.
The discount rates were derived from a group of comparable
companies (peer group) and have been compared
to external advisor reports for reasonableness.
• ALD’s value in use exceeds its carrying value at
December 31, 2010 by $282,583.
GK purchased a small subsidiary in the year ended
December 31, 2009 and recognized goodwill of $18
upon acquisition. This balance has only changed due
to currency. AMG assessed the fair value of GK as
at December 31, 2010 and 2009. The fair value of GK
approximated the carrying value and therefore, no
adjustment to goodwill value was made in 2010 or 2009.
Impairment of equity investment in Timminco Ltd.
(“Timminco”)
Impairment tests for the Company’s 42.5% equity
investment in Timminco were based on its fair value less
costs to sell. The carrying amount of this individual asset
as of December 31, 2010 was $17,706 (2009: $19,460). The
carrying amounts were determined to be lower than the
investment’s recoverable amounts and no impairment
was necessary in 2010 nor 2009. Timminco’s fair value
was determined by using quoted market prices for the
shares of Timminco, as the shares are publicly traded on
the Toronto Stock Exchange.
Impairment of equity investment in Bostlan S.A.
(“Bostlan”)
Impairment tests for LSM’s 25% equity investment in
Bostlan, an entity located in Spain, were based on its
value in use. The carrying amount of this individual asset
as of December 31, 2010 and 2009 was $2,439 and $2,155,
respectively. The carrying amounts were determined to be
lower than the investment’s recoverable amounts and no
impairment was necessary in 2010 nor 2009.
Bostlan’s value in use was determined by discounting the
future cash flows generated from the continuing use of the
asset and was based on the following key assumptions:
• Cash flows were projected based on actual operating
results and the 3-year business plan, covering the next
three years following the impairment test date.
• The growth rate of 2% was used to extrapolate cash
flow projections beyond the period covered by the most
recent business plans. Management believes that this
growth rate does not exceed the long-term average
growth rate for the metallurgical industry in Spain.
• Revenue projections are based on an internal 3-year
business plan.
• Discount rates of 8.40% and 9.60% were applied in
determining the recoverable amount of the asset for the
years ended December 31, 2010 and 2009, respectively.
The discount rates were derived from a group of comparable
companies (peer group) and have been compared
to external advisor reports for reasonableness.
• Bostlan’s value in use exceeds its carrying value at
December 31, 2010 by $3,234.
15. Associates and joint ventures
The Company’s share of loss in its associates and joint
ventures for 2010 was $19,405 (2009: $31,958).
Acquisition of Dynatech Furnaces Private Ltd.
On June 24, 2010, ALD GmbH entered into a share
purchase contract to make an investment of $443 to
purchase 30% ownership in Dynatech Furnaces Private
Ltd. (“Dynatech”) from its current ownership. Dynatech is
the largest vacuum heat treatment furnace manufacturer
in India. Dynatech has been in business since 1985 with a
manufacturing and assembly facility in Ambernath, near
Mumbai. The Company is accounting for this investment as
an associate.
Acquisition of Thermique Industrie Vide
On March 31, 2010, the Company acquired a 30% interest
in Thermique Industrie Vide (“TIV”), a French engineering
company which specializes in the design, manufacturing
and maintenance of vacuum furnaces for $617. TIV is being
accounted for as an associate.
During the year ended December 31, 2009, the owners
of Heidenreich and Harbeck AG (“H&H”) exercised their
call option to convert the Company’s shares of H&H into
shares of ABS Apparaté und Behälterbrau Staßfurt GmbH
(“ABS”). Prior to the conversion, the Company owned 19%
of H&H and accounted for it at cost. The share for share
exchange increased the Company’s share ownership in
ABS from 24.9% to 49%. No additional consideration was
Notes to Consolidated Financial Statements 105