ELN » Topics » Exceptional Items

This excerpt taken from the ELN 6-K filed Apr 11, 2005.

Exceptional Items

Exceptional items are material events or transactions that individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence.

Exceptional items include gains and losses on the disposal of businesses, tangible and intangible assets impairments, purchase of royalty rights, severance and relocation costs, losses from litigation or regulatory actions, including shareholder class action litigation and the SEC investigation. These items have been treated consistently from period to period. We believe that the disclosure of exceptional items is meaningful because it provides additional information.

2004

In 2004, we recognised net exceptional gains of $31.8 million. The exceptional items for 2004 primarily relate to completion of our recovery plan, gains and losses on the disposal of businesses, SEC investigation and shareholder class action lawsuit settlements, and insurance. Exceptional items were as follows:

 

 

 

Selling,
General and
Administrative
(A)
$m

 

Other
Ordinary
Activities
(B)
$m

 

Total
$m

 

SEC investigation and shareholder class action settlements

 

56.0

 

 

56.0

 

Insurance

 

(21.0

)

 

(21.0

)

Gain on disposal of businesses

 

 

(67.5

)

(67.5

)

Other

 

0.7

 

 

0.7

 

Net exceptional charges/(gains)

 

35.7

 

(67.5

)

(31.8

)


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