Management determined budgeted gross margin based on past performance and expectations for market development. These margins also consider the efficiencies for the planned production cycle.
Growth rates were reflected in the budgeted revenue stream for the Company, consistent with the forecasts included in industry reports.
The discount rates used correspond to pre-tax rates and were based on market rates considering the period of budgeted cash flow used by the Company, being 2.17% p.a. at December 31, 2010 and 2.98% p.a. at December 31, 2009.
No impairment losses for intangible assets or property, plant and equipment were recognized in 2010 and 2009.