This excerpt taken from the ELN 6-K filed Apr 11, 2005.
Net Interest and Other Expense
Net interest and other expense was $47.1 million for 2004, compared to $187.5 million for 2003, principally due to higher net gains on financial assets and lower investment impairments in 2004 compared to 2003.
Interest payable and similar charges decreased by 31% to $228.1 million for 2004 from $331.7 million for 2003, primarily reflecting investment related charges of $74.7 million and debt interest charges of $142.0 million in 2004 compared with $120.4 million and $124.1 million, respectively, in 2003. The investment related charges reflect permanent impairments to the value of a number of investments, mainly in privately held biotech companies.
Income from financial assets increased by 26% to $181.0 million for 2004 from $144.2 million for 2003. Interest and other income decreased to $24.8 million for 2004 from $32.1 million in 2003, reflecting reduced investment income during 2004. Net gains on financial assets amounted to $156.2 million in 2004 (2003: $106.3 million), primarily reflecting gains on the disposal of investments in Warner Chilcott, plc of $43.6 million, DOV Pharmaceuticals Inc. of $49.1 million and Atrix Laboratories Inc. of $27.7 million. Net gains on financial assets of $106.3 million in 2003 primarily relates to a gain of $72.3 million on the disposal of our investment in Ligand Pharmaceuticals, Inc. (Ligand). For additional information regarding net interest and other expense, please refer to Note 5 to the Consolidated Financial Statements.
For additional information regarding indebtedness, please refer to Note 16 to the Consolidated Financial Statements and to Debt Facilities in this Financial Review.