|
|
Consolidated Statements of Operations
|
|
For the period ended September 30
|
Three months
|
|
Nine months
|
|
|
(in $ millions, except share amounts) (unaudited)
|
2004
|
|
2003
|
|
2004
|
|
2003
|
|
|
|
Operating revenues
|
4,781
|
|
4,627
|
|
14,204
|
|
13,919
|
|
|
|
Operating expenses
|
(2,845
|
)
|
(2,732
|
)
|
(8,471
|
)
|
(8,356
|
)
|
|
Amortization expense
|
(769
|
)
|
(801
|
)
|
(2,305
|
)
|
(2,325
|
)
|
|
Net benefit plans cost
(Note 4)
|
(61
|
)
|
(44
|
)
|
(189
|
)
|
(129
|
)
|
|
Restructuring and other items
(Note 5)
|
(1,081
|
)
|
(1
|
)
|
(1,098
|
)
|
(1
|
)
|
|
|
Total operating expenses
|
(4,756
|
)
|
(3,578
|
)
|
(12,063
|
)
|
(10,811
|
)
|
|
|
Operating income
|
25
|
|
1,049
|
|
2,141
|
|
3,108
|
|
|
Other income (Note
6)
|
333
|
|
1
|
|
393
|
|
48
|
|
|
Interest expense
|
(253
|
)
|
(270
|
)
|
(758
|
)
|
(839
|
)
|
|
|
Pre-tax earnings from continuing operations
|
105
|
|
780
|
|
1,776
|
|
2,317
|
|
|
Income taxes
|
44
|
|
(282
|
)
|
(511
|
)
|
(788
|
)
|
|
Non-controlling interest
|
(47
|
)
|
(45
|
)
|
(134
|
)
|
(144
|
)
|
|
|
Earnings from continuing operations
|
102
|
|
453
|
|
1,131
|
|
1,385
|
|
|
Discontinued operations
(Note 7)
|
(2
|
)
|
11
|
|
28
|
|
30
|
|
|
|
Net earnings
|
100
|
|
464
|
|
1,159
|
|
1,415
|
|
|
Dividends on preferred shares
|
(18
|
)
|
(18
|
)
|
(53
|
)
|
(50
|
)
|
|
Premium on redemption of preferred shares
|
–
|
|
–
|
|
–
|
|
(7
|
)
|
|
|
Net earnings applicable to common shares
|
82
|
|
446
|
|
1,106
|
|
1,358
|
|
|
|
Net earnings per common share – basic
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
0.09
|
|
0.48
|
|
1.17
|
|
1.46
|
|
|
Discontinued operations
|
–
|
|
0.01
|
|
0.03
|
|
0.03
|
|
|
Net earnings
|
0.09
|
|
0.49
|
|
1.20
|
|
1.49
|
|
|
Net earnings per common share – diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
0.08
|
|
0.47
|
|
1.16
|
|
1.45
|
|
|
Discontinued operations
|
–
|
|
0.01
|
|
0.03
|
|
0.03
|
|
|
Net earnings
|
0.08
|
|
0.48
|
|
1.19
|
|
1.48
|
|
|
Dividends per common share
|
0.30
|
|
0.30
|
|
0.90
|
|
0.90
|
|
|
Average number of common shares
outstanding – basic (millions)
|
924.6
|
|
921.5
|
|
924.4
|
|
919.3
|
|
|
|
|
|
|
|
|
Consolidated Statements of Deficit
|
|
For the period ended September 30
|
Three months
|
|
Nine months
|
|
|
(in $ millions) (unaudited)
|
2004
|
|
2003
|
|
2004
|
|
2003
|
|
|
|
Balance at beginning of period, as previously reported
|
(5,368
|
)
|
(6,079
|
)
|
(5,830
|
)
|
(6,435
|
)
|
|
Accounting policy change for asset retirement obligations
(Note 1)
|
–
|
|
(7
|
)
|
(7
|
)
|
(7
|
)
|
|
|
Balance at beginning of period, as restated
|
(5,368
|
)
|
(6,086
|
)
|
(5,837
|
)
|
(6,442
|
)
|
|
Consolidation of variable interest entity
|
–
|
|
(25
|
)
|
–
|
|
(25
|
)
|
|
Net earnings
|
100
|
|
464
|
|
1,159
|
|
1,415
|
|
|
Dividends declared on common shares
|
(277
|
)
|
(277
|
)
|
(832
|
)
|
(828
|
)
|
|
Dividends declared on preferred shares
|
(18
|
)
|
(18
|
)
|
(53
|
)
|
(50
|
)
|
|
Premium on redemption of preferred shares
|
–
|
|
–
|
|
–
|
|
(7
|
)
|
|
Other
|
–
|
|
(2
|
)
|
–
|
|
(7
|
)
|
|
|
Balance at end of period
|
(5,563
|
)
|
(5,944
|
)
|
(5,563
|
)
|
(5,944
|
)
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
September 30
|
|
December 31
|
|
|
(in $ millions) (unaudited)
|
2004
|
|
2003
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
1,386
|
|
585
|
|
|
Accounts receivable
|
2,491
|
|
2,061
|
|
|
Other current assets
|
892
|
|
739
|
|
|
Current assets of discontinued operations
|
–
|
|
280
|
|
|
|
Total current assets
|
4,769
|
|
3,665
|
|
|
Capital assets
|
21,111
|
|
21,114
|
|
|
Other long-term assets
|
2,494
|
|
3,459
|
|
|
Indefinite-life intangible assets
|
2,910
|
|
2,910
|
|
|
Goodwill
|
8,368
|
|
7,761
|
|
|
Non-current assets of discontinued operations
|
50
|
|
511
|
|
|
|
Total assets
|
39,702
|
|
39,420
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
4,537
|
|
3,534
|
|
|
Debt due within one year
|
1,516
|
|
1,519
|
|
|
Current liabilities of discontinued operations
|
–
|
|
285
|
|
|
|
Total current liabilities
|
6,053
|
|
5,338
|
|
|
Long-term debt
|
12,076
|
|
12,381
|
|
|
Other long-term liabilities
|
4,790
|
|
4,705
|
|
|
Non-current liabilities of discontinued operations
|
–
|
|
20
|
|
|
|
Total liabilities
|
22,919
|
|
22,444
|
|
|
|
Non-controlling interest
|
2,904
|
|
3,403
|
|
|
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
Preferred shares
|
1,670
|
|
1,670
|
|
|
|
Common shareholders’ equity
|
|
|
|
|
|
Common shares
|
16,765
|
|
16,749
|
|
|
Contributed surplus
|
1,052
|
|
1,037
|
|
|
Deficit
|
(5,563
|
)
|
(5,837
|
)
|
|
Currency translation adjustment
|
(45
|
)
|
(46
|
)
|
|
|
Total common shareholders’ equity
|
12,209
|
|
11,903
|
|
|
|
Total shareholders’ equity
|
13,879
|
|
13,573
|
|
|
|
Total liabilities and shareholders’ equity
|
39,702
|
|
39,420
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
For the period ended September 30
|
Three months
|
|
Nine months
|
|
|
(in $ millions) (unaudited)
|
2004
|
|
2003
|
|
2004
|
|
2003
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
102
|
|
453
|
|
1,131
|
|
1,385
|
|
|
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Amortization expense
|
769
|
|
801
|
|
2,305
|
|
2,325
|
|
|
Net benefit plans cost
|
61
|
|
44
|
|
189
|
|
129
|
|
|
Restructuring and other
items (non-cash portion)
|
1,149
|
|
(4
|
)
|
1,164
|
|
(4
|
)
|
|
Net gains on investments
|
(325
|
)
|
–
|
|
(331
|
)
|
–
|
|
|
Future income taxes
|
(183
|
)
|
134
|
|
(96
|
)
|
211
|
|
|
Non-controlling interest
|
47
|
|
45
|
|
134
|
|
144
|
|
|
Contributions to employee pension plans
|
(32
|
)
|
(46
|
)
|
(88
|
)
|
(73
|
)
|
|
Other employee future benefit plan payments
|
(13
|
)
|
(22
|
)
|
(59
|
)
|
(64
|
)
|
|
Other
|
(27
|
)
|
26
|
|
(3
|
)
|
(10
|
)
|
|
Changes in non-cash working capital
|
280
|
|
387
|
|
(134
|
)
|
327
|
|
|
|
Cash from operating activities
|
1,828
|
|
1,818
|
|
4,212
|
|
4,370
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
(811
|
)
|
(791
|
)
|
(2,318
|
)
|
(2,088
|
)
|
|
Business acquisitions
|
(646
|
)
|
(3
|
)
|
(952
|
)
|
(73
|
)
|
|
Business dispositions
|
4
|
|
55
|
|
20
|
|
55
|
|
|
Decrease in investments accounted for under the cost and equity methods
|
695
|
|
1
|
|
693
|
|
7
|
|
|
Other
|
(2
|
)
|
155
|
|
133
|
|
69
|
|
|
|
Cash used in investing activities
|
(760
|
)
|
(583
|
)
|
(2,424
|
)
|
(2,030
|
)
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in notes payable and bank advances
|
173
|
|
(73
|
)
|
123
|
|
(242
|
)
|
|
Issue of long-term debt
|
10
|
|
17
|
|
1,410
|
|
1,881
|
|
|
Repayment of long-term debt
|
(98
|
)
|
(123
|
)
|
(1,750
|
)
|
(1,940
|
)
|
|
Issue of common shares
|
8
|
|
5
|
|
16
|
|
14
|
|
|
Issue of preferred shares
|
–
|
|
–
|
|
–
|
|
510
|
|
|
Redemption of preferred shares
|
–
|
|
–
|
|
–
|
|
(357
|
)
|
|
Issue of equity securities by subsidiaries to non-controlling interest
|
–
|
|
24
|
|
7
|
|
113
|
|
|
Redemption of equity securities by subsidiaries from non-controlling
interest
|
(4
|
)
|
(39
|
)
|
(64
|
)
|
(74
|
)
|
|
Cash dividends paid on common shares
|
(277
|
)
|
(259
|
)
|
(831
|
)
|
(770
|
)
|
|
Cash dividends paid on preferred shares
|
(21
|
)
|
(14
|
)
|
(64
|
)
|
(39
|
)
|
|
Cash dividends paid by subsidiaries to non-controlling interest
|
(44
|
)
|
(38
|
)
|
(133
|
)
|
(137
|
)
|
|
Other
|
(18
|
)
|
56
|
|
(34
|
)
|
(5
|
)
|
|
|
Cash used in financing activities
|
(271
|
)
|
(444
|
)
|
(1,320
|
)
|
(1,046
|
)
|
|
|
Cash provided by continuing operations
|
797
|
|
791
|
|
468
|
|
1,294
|
|
|
Cash provided by discontinued operations
|
12
|
|
30
|
|
196
|
|
17
|
|
|
|
Net increase in cash and cash equivalents
|
809
|
|
821
|
|
664
|
|
1,311
|
|
|
Cash and cash equivalents at beginning of period
|
577
|
|
796
|
|
722
|
|
306
|
|
|
|
Cash and cash equivalents at end of period
|
1,386
|
|
1,617
|
|
1,386
|
|
1,617
|
|
|
|
Consists of:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents of continuing operations
|
1,386
|
|
1,476
|
|
1,386
|
|
1,476
|
|
|
Cash and cash equivalents of discontinued operations
|
–
|
|
141
|
|
–
|
|
141
|
|
|
|
Total
|
1,386
|
|
1,617
|
|
1,386
|
|
1,617
|
|
|
|
