Below follows a technical description of how the announcement of the Sapa joint venture will impact the reporting of Hydro and Extruded Products until the closing of the transaction, which is pending regulatory approvals.
Extruded Products will be accounted for as discontinued operations provided that the transaction is considered highly probable on balance sheet date (31/12 2012).
► Extruded Products will be included as a separate line after "income from continued operations".
○ "Income (loss) from discontinued operations" included with net income of Extruded Products, with the following clarifications:
■ Income from Extruded Products will exclude depreciation as discontinued operations are not depreciated from signing/announcing the transaction (i.e. depreciation included for periods up until October 15, 2012).
■ Underlying net income for Hydro group includes Underlying income (loss) from discontinued operations from Extruded Products (reconciliation of underlying and reported result will be provided).
► Income Statement and Cash Flow Statement for all quarters and full year 2011 and 2012 will be reclassified with Extruded Products as discontinued operations.
○ All lines in Income Statement and Cash Flow Statement will be reclassified
► Balance Sheet for end 2012 will be presented with Extruded Products as asset held for sale.
○ All lines in Balance Sheet affected
► Same level of detail of information will be disclosed for Extruded Products as previously.
○ Separate section with the same additional financial and operational information as previously provided
Reclassified historical figures will be provided prior to announcement of Q4 2012 results.
