NOTES
TO THE RESTATED 2004 CONSOLIDATED INCOME STATEMENT
32.1.
Separate
presentation of royalty and profit share income, previously shown in other income
and expenses.
32.2.
USD
343 million reduction due to the reclassification of royalty expense from Other
Income & Expense and a USD 300 million reduction due to the reclassification of
amortization and impairment of product rights, patents and trademarks from Other
Income & Expense and R&D to Cost of Goods Sold.
32.3.
USD
36 million reclassification of amortization of product rights, patents and trademarks
to Cost of Goods Sold.
32.4.
Total USD 66 million net increase
in Other Income and Expense from:
•
USD
683 million net increase in income due to the reclassification of amortization
and impairment of product rights, patents and trademarks (USD 264 million) and
royalty expense (USD 343 million) to Cost of Goods Sold and a reversal of amortization
of net actuarial losses from pension and other post employment benefits (USD 76
million) and,
•
USD 617 million net decrease in income due to the restatement
of expenses from share-based compensation (USD 462 million), the reclassification
of royalty and profit share income to other revenues (USD 154 million) and the
consolidation of the employee share participation foundation (USD 1 million).
32.5.
Impact
of deferred tax reclassification related to associated companies.
32.6.
Tax
effect of the above adjustments and reclassification of the tax related to associated
companies to the result of associated companies.
32.7.
Minority interests are now shown separately
after net income.
32.8.
Consolidation
of the employee share participation foundation and the Novartis AG shares that
it held reduces average shares outstanding by 92.5 million.
