This excerpt taken from the ELN 20-F filed Mar 30, 2006.
Provision for Income Taxes
We had a net tax benefit of $1.7 million for 2004, compared to a net tax benefit of $22.8 million for 2003. The overall tax benefit to us for 2004 was $4.4 million. Of this amount, $2.7 million has been credited to shareholders equity to reflect utilization of stock option deductions. The remaining $1.7 million benefit is allocated to ordinary activities. The tax benefit reflected tax at standard rates in the jurisdictions in which we operate, income derived from Irish patents, foreign withholding tax and the availability of tax losses. Our Irish patent derived income was exempt from taxation pursuant to Irish legislation, which exempts from Irish taxation income derived from qualifying patents. Currently, there is no termination date in effect for such exemption. For additional information regarding taxation, please refer to Note 17 to the Consolidated Financial Statements.
Net Income/(Loss) from Discontinued Operations
Net income from discontinued operations was $19.0 million in 2004, compared to a net loss from discontinued operations of $31.5 million in 2003. The net income/(loss) from discontinued operations includes a net gain on sale of businesses of $11.5 million (2003: $22.9 million) and other charges of $Nil (2003: $58.4 million). During the course of the recovery plan, we sold a number of products and businesses, including Athena Diagnostics, Elan Diagnostics, a portfolio of pain products (the Pain Portfolio), Actiqtm (oral transmucosal fetanyl citrate), the dermatology portfolio of products, Abelcettm (amorphotericin B lipid complex) U.S./Canada, Myobloctm (botulinum toxin type B), Myambutol and Frova, which are included in discontinued operations. We have recorded the results and gains or losses on the divestment of these operations within discontinued operations in the income statement. For additional information on discontinued operations, please refer to Note 20 to the Consolidated Financial Statements.