Management’s Discussion and Analysis employees, about 400 had left the company by Janu- ary 1, 2005. We expect annual savings of approximately $48 million as a result of these departures. These charges were partly offset by income of $75 mil- lion recorded in the second quarter relating to an agreement reached between BCE Inc. and MTS to  settle lawsuits. The terms of the settlement included: Similar items in 2003 had no net impact on the reported EPS of $1.90. Excluding the impact of these items, EPS was $2.02 in 2004, up 6.3% or $0.12 from 2003. The increase was a result of the improvement in EBITDA and lower interest expense. These were partly offset by a higher net benefit plans cost. We recorded $14 million in restructuring and other items in 2003, which included a charge of $15 million relating to a restructuring at Aliant’s subsidiary, Xwave Solutions Inc. (xwave).  In 2003, Bell Canada recorded charges of $65 mil- lion relating to various asset write-downs and other provisions. These charges were offset by a credit of  $66 million relating to the reversal of restructuring charges recorded in 2002, which were no longer neces- sary because fewer employees were terminated than expected due to an increase in the number of employees being transferred to other positions within Bell Canada. See Note 4 to the consolidated financial state- ments for more information on the restructuring and other items. EPS of $1.65 in 2004 was negatively impacted by net losses resulting from the after-tax restructuring and other items of $0.83 per share relating mainly to the employee departure programs at Bell Canada and Aliant. These were partly offset by: Net Earnings/Earnings per Share (EPS) Segmented Analysis SEGMENTED REVENUE BREAKDOWN • a premium payment to us by MTS if there is a change in control of MTS before 2006 and if there is an appreciation in MTS’ share price from the time of our divestiture to the time of any takeover transaction. • the orderly disposition of our interest in MTS, which was done in September 2004 • the removal of contractual competitive restrictions effective June 30, 2004 • the unwinding of various commercial agreements • other charges totalling $119 million. These consisted of future lease costs for facilities that were no longer needed, asset write-downs and other provisions. • net gains of $0.39 per share relating mainly to the sales of our 15.96% interest in MTS, our remaining 3.24% interest in YPG, and our 63.9% interest in Emergis. • an extraordinary gain of $0.07 per share relating  to the acquisition of the Canadian operations of 360networks. 2003 2004 10% 38% 12% 10% 30% Consumer Business Other BCE Other Bell Canada Aliant Consumer Business Other BCE Other Bell Canada Aliant 10% 39% 13% 9% 29% 50 Bell Canada Enterprises  2004 Annual Report