South Africa asset impairment

12 Months Ended

Dec. 31, 2013

South Africa asset impairment [Abstract]

(5)	South Africa Asset Impairment

During the quarter ended September 30, 2013, our performance materials segment recorded an impairment charge of $52.3 to record a write down of mineral rights ($36.0) and depreciable assets ($16.3) from their carrying value to their estimated fair values. Fair value for mineral rights was assessed using discounted cash flow approach (Level 3 fair value input) and for depreciable assets using a combination of mass appraisal technique and market approach technique (Level 2 fair value input). The impairment charge relates to a significant adverse change in the business climate experienced by our South African chromite operations. Specifically, recently developed overcapacity in the supply of chromite has impacted our pricing and ability to grow market share in the foundry grade market which required us to review the recoverability of these assets in the third quarter of 2013. Based on that evaluation, we determined the long-lived assets that produce chromite were not recoverable on a gross cash flow analysis. The impairment charge is recorded within our Consolidated Statements of Operations within cost of sales ($52.2) and selling, general and administrative expense ($0.1).