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which retained the electrochemical plant assets and

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Unformatted text preview: the plant of U.S.$ 21.6 million (U.S.$ 13.6 million net of taxes), was recorded in “Other operating costs and expenses”. Pursuant to a contract signed by the Company and the acquirors of the electrochemical plant, the Company will purchase future production from the plant. See discussion of "take-or-pay" contract in Note 16 (b). 3 Acquisition of Terra Plana Agropecuária Ltda On June 1, 2000 the Company acquired Terra Plana Agropecuária Ltda (“Terra”) for U.S.$ 20,204. The acquisition has been accounted for using the purchase method of accounting. The net assets of Terra are comprised solely of land, and at September 30, 2000 the Company has allocated the purchase price to land (U.S.$ 13,169) and goodwill (U.S.$ 7,035), based upon estimates of the fair value of the land. Goodwill will be amortized on a straight-line basis over 7 years, which the Company believes is the estimated benefit period. 4 Investment in Veracel Celulose S.A. On October 10, 2000, the Company acquired a 45% interest in Veracel Ce...
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