Note  6 : Impairment Charge  to 2002. It determined that these amounts were the cumulative result of a series of individually immaterial events and transactions relating to its legacy accounts receivable systems dating back to the early 1990s. In 2002, we completed our annual impairment test for goodwill for all of our reporting units. As a result, we recognized a charge of $765 million to pre-tax earn- ings relating to impaired goodwill of reporting units in Bell Globemedia ($715 million) and Aliant ($50 mil- lion). In each case, the goodwill was written down to its estimated fair value, which was determined based on estimates of discounted future cash flows and  confirmed by market-related values. The main factor contributing to the impairment at Bell Globemedia was a revised estimate of future cash flows, which reflected management’s decision to scale back its trials in convergence products and other  non-core businesses. Market conditions for the media business also contributed to the impairment.  The write-down at Aliant was a result of poor market conditions in the information technology business. Note  7 : Interest Expense Note  8 : Income Taxes  Note  5 : Other Income 2004 2003 2002 Net gains on investments 319  76 2,401 Interest income 32 69 62 Foreign currency gains 3 33 13  Other  57 (3) (68) Other income  411  175 2,408 In 2004, net gains on investments of $319 million included: The table below is a reconciliation of income tax expense at Canadian statutory rates of 34.3% in 2004, 35.4% in 2003 and 37.4% in 2002, and the amount of reported income tax expense in the statements of operations. Bell Canada Enterprises  2004 Annual Report 99 2004 2003 2002 Income taxes computed at  statutory rates 817 1,130 1,551 Net gains on investments (120) (28) (299) Large corporations tax 37 46 28 Goodwill impairment – – 289 Other (24) (29) 45 Total income tax expense 710 1,119 1,614 2004 2003 2002 Interest expense on  long-term debt (960) (1,035) (1,000) Interest expense on other debt (45) (70) (120) Total interest expense (1,005) (1,105) (1,120) Net gains on investments of $76 million in 2003 were mainly from: Net gains on investments of $2,401 million in 2002 were mainly from: • a gain of $108 million from the sale of Bell Canada’s remaining 3.24% interest in YPG General Partner Inc. for net cash proceeds of $123 million • a gain of $217 million realized from the sale of BCE Inc.’s 15.96% interest in MTS for net cash proceeds of $584 million. On August 1, 2004, the MTS shares were transferred from Bell Canada to BCE Inc. as part of a corporate reorganization. The purpose of this reor- ganization was to ensure that capital loss carryforwards at BCE Inc. would be available to be utilized against the gain on the sale of the MTS shares. • other net losses on investments of $6 million. • a $120 million gain from the sale of a 3.66% interest in YPG General Partner Inc. for net proceeds of $135 mil- lion in cash • a $44 million loss from the write-down of a number of our cost-accounted investments. • selling the directories business ($2.3 billion) • selling a 37% interest in each of Télébec and NorthernTel when the Bell Nordiq Income Fund was created ($222 million) • writing down our cost-accounted investment in Nortel Networks Corporation (Nortel) ($98 million).