Income statement categories
In its 2008 annual report, which included a statement of comprehensive income, Bristol-Myers Squibb reported the following items (dollars in millions):
|
Net earnings from discontinued operations |
$ 113 |
|
Research and development |
(3,585) |
|
Foreign currency translation |
(123) |
|
Net gain on disposal of business |
1,979 |
|
Provision for restructuring |
(218) |
|
Gain on sale of assets |
159 |
|
Cost of products sold |
(6,396) |
|
Litigation charges |
(33) |
|
Equity in net income of affiliates |
617 |
REQUIRED:
a. Explain the nature of each item, describe where they would be disclosed on the income statement (including comprehensive income), and state whether or not they would be reported net of taxes.
b. Discuss each item in terms of its persistence.