As a result of the 37% decline in Alcon’s share price at the end of 2008 to USD 89.19 from the
price paid for the initial 24.8% stake, Novartis performed an impairment test on the investment’s carrying value. This test assessed the “value in use”
to Novartis of this strategic investment by valuing e
stimated discounted cash flows and future dividend streams from Alcon against the “fair value less costs to sell” of this stake, as mea
...[+++]sured by the closing price on December 31, 2008, on the NYSE for the 23% publicly traded Alcon shares.