 |
|
|
|
|
 |
 |
 |
 |
|
 |
||||
 |
 |
|||
|
|
||||||||||||||||||||
|
||||||||||||||||||||
Consolidated Statements of Operations
|
||||||
|
FOR THE THREE MONTHS ENDED MARCH 31 |
||||||
|
(in $ millions, except share amounts) (unaudited) |
2005 | 2004 | ||||
|
|
||||||
|
Operating revenues |
4,859 | 4,638 | ||||
|
|
||||||
|
Operating expenses |
(2,921 | ) | (2,794 | ) | ||
|
Amortization expense |
(773 | ) | (767 | ) | ||
|
Net benefit plans cost (Note 3) |
(103 | ) | (63 | ) | ||
|
Restructuring and other items (Note 4) |
4 | (3 | ) | |||
|
|
||||||
|
Total operating expenses |
(3,793 | ) | (3,627 | ) | ||
|
|
||||||
|
Operating income |
1,066 | 1,011 | ||||
|
Other income |
7 | 36 | ||||
|
Interest expense |
(247 | ) | (252 | ) | ||
|
|
||||||
|
Pre-tax earnings from continuing operations |
826 | 795 | ||||
|
Income taxes |
(271 | ) | (262 | ) | ||
|
Non-controlling interest |
(63 | ) | (48 | ) | ||
|
|
||||||
|
Earnings from continuing operations |
492 | 485 | ||||
|
Discontinued operations |
(1 | ) | 3 | |||
|
|
||||||
|
Net earnings |
491 | 488 | ||||
|
Dividends on preferred shares |
(17 | ) | (18 | ) | ||
|
|
||||||
|
Net earnings applicable to common shares |
474 | 470 | ||||
|
|
||||||
|
Net earnings per common share – basic |
||||||
|
Continuing operations |
0.51 | 0.51 | ||||
|
Discontinued operations |
– | – | ||||
|
Net earnings |
0.51 | 0.51 | ||||
|
Net earnings per common share – diluted |
||||||
|
Continuing operations |
0.51 | 0.51 | ||||
|
Discontinued operations |
– | – | ||||
|
Net earnings |
0.51 | 0.51 | ||||
|
Dividends per common share |
0.33 | 0.30 | ||||
|
Average number of common shares outstanding – basic (millions) |
926.2 | 924.1 | ||||
|
|
||||||
|
|
||||||
Consolidated Statements of Deficit
|
||||||
|
FOR THE THREE MONTHS ENDED MARCH 31 |
||||||
|
(in $ millions) (unaudited) |
2005 | 2004 | ||||
|
|
||||||
|
Balance at beginning of period, as previously reported |
(5,424 | ) | (5,837 | ) | ||
|
Accounting policy change (Note 1) |
(8 | ) | (8 | ) | ||
|
|
||||||
|
Balance at beginning of period, as restated |
(5,432 | ) | (5,845 | ) | ||
|
Net earnings |
491 | 488 | ||||
|
Dividends declared on preferred shares |
(17 | ) | (18 | ) | ||
|
Dividends declared on common shares |
(306 | ) | (277 | ) | ||
|
Other |
– | (1 | ) | |||
|
|
||||||
|
Balance at end of period |
(5,264 | ) | (5,653 | ) | ||
|
|
||||||
|
|
||||||
Consolidated Balance Sheets
|
||||||
| MARCH 31, | DECEMBER 31, | |||||
|
(in $ millions) (unaudited) |
2005 | 2004 | ||||
|
|
||||||
|
|
||||||
|
Assets |
||||||
|
Current assets |
||||||
|
Cash and cash equivalents |
526 | 380 | ||||
|
Accounts receivable |
2,074 | 2,096 | ||||
|
Other current assets |
1,364 | 1,212 | ||||
|
|
||||||
|
Total current assets |
3,964 | 3,688 | ||||
|
Capital assets |
21,376 | 21,398 | ||||
|
Other long-term assets |
2,747 | 2,656 | ||||
|
Indefinite-life intangible assets |
2,951 | 2,916 | ||||
|
Goodwill |
8,482 | 8,413 | ||||
|
Non-current assets of discontinued operations |
50 | 50 | ||||
|
|
||||||
|
Total assets |
39,570 | 39,121 | ||||
|
|
||||||
|
|
||||||
|
Liabilities |
||||||
|
Current liabilities |
||||||
|
Accounts payable and accrued liabilities |
3,313 | 3,692 | ||||
|
Interest payable |
283 | 183 | ||||
|
Dividends payable |
325 | 297 | ||||
|
Debt due within one year |
1,428 | 1,276 | ||||
|
|
||||||
|
Total current liabilities |
5,349 | 5,448 | ||||
|
Long-term debt |
12,280 | 11,809 | ||||
|
Other long-term liabilities |
4,819 | 4,932 | ||||
|
|
||||||
|
Total liabilities |
22,448 | 22,189 | ||||
|
|
||||||
|
Non-controlling interest |
2,914 | 2,908 | ||||
|
|
||||||
|
|
||||||
|
Shareholders’ equity |
||||||
|
Preferred shares |
1,670 | 1,670 | ||||
|
|
||||||
|
Common shareholders’ equity |
||||||
|
Common shares |
16,790 | 16,781 | ||||
|
Contributed surplus |
1,065 | 1,061 | ||||
|
Deficit |
(5,264 | ) | (5,432 | ) | ||
|
Currency translation adjustment |
(53 | ) | (56 | ) | ||
|
|
||||||
|
Total common shareholders’ equity |
12,538 | 12,354 | ||||
|
|
||||||
|
Total shareholders’ equity |
14,208 | 14,024 | ||||
|
|
||||||
|
Total liabilities and shareholders’ equity |
39,570 | 39,121 | ||||
|
|
||||||
|
|
||||||
Consolidated Statements of Cash Flows
|
||||||
|
FOR THE THREE MONTHS ENDED MARCH 31 |
||||||
|
(in $ millions) (unaudited) |
2005 | 2004 | ||||
|
|
||||||
|
Cash flows from operating activities |
||||||
|
Earnings from continuing operations |
492 | 485 | ||||
|
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities: |
||||||
|
Amortization expense |
773 | 767 | ||||
|
Net benefit plans cost |
103 | 63 | ||||
|
Restructuring and other items |
(4 | ) | 3 | |||
|
Net gains on investments |
(2 | ) | (5 | ) | ||
|
Future income taxes |
109 | 54 | ||||
|
Non-controlling interest |
63 | 48 | ||||
|
Contributions to employee pension plans |
(94 | ) | (29 | ) | ||
|
Other employee future benefit plan payments |
(23 | ) | (24 | ) | ||
|
Payments of restructuring and other items |
(101 | ) | (19 | ) | ||
|
Operating assets and liabilities |
(377 | ) | (83 | ) | ||
|
|
||||||
|
Cash flows from operating activities |
939 | 1,260 | ||||
|
|
||||||
|
Cash flows from investing activities |
||||||
|
Capital expenditures |
(737 | ) | (681 | ) | ||
|
Business acquisitions |
(83 | ) | (59 | ) | ||
|
Business dispositions |
– | 16 | ||||
|
Change in investments accounted for under the cost and equity methods |
(126 | ) | 6 | |||
|
Other investing activities |
(15 | ) | 19 | |||
|
|
||||||
|
Cash flows used in investing activities |
(961 | ) | (699 | ) | ||
|
|
||||||
|
Cash flows from financing activities |
||||||
|
Increase (decrease) in notes payable and bank advances |
(155 | ) | 19 | |||
|
Issue of long-term debt |
785 | 1,326 | ||||
|
Repayment of long-term debt |
(84 | ) | (934 | ) | ||
|
Issue of common shares |
9 | 4 | ||||
|
Issue of equity securities by subsidiaries to non-controlling interest |
– | 7 | ||||
|
Redemption of equity securities by subsidiaries from non-controlling interest |
(17 | ) | (42 | ) | ||
|
Cash dividends paid on common shares |
(278 | ) | (277 | ) | ||
|
Cash dividends paid on preferred shares |
(21 | ) | (22 | ) | ||
|
Cash dividends paid by subsidiaries to non-controlling interest |
(50 | ) | (43 | ) | ||
|
Other financing activities |
(30 | ) | (48 | ) | ||
|
|
||||||
|
Cash flows from (used in) financing activities |
159 | (10 | ) | |||
|
|
||||||
|
Cash provided by continuing operations |
137 | 551 | ||||
|
Cash provided by discontinued operations |
9 | 238 | ||||
|
|
||||||
|
Net increase in cash and cash equivalents |
146 | 789 | ||||
|
Cash and cash equivalents at beginning of period |
380 | 722 | ||||
|
|
||||||
|
Cash and cash equivalents at end of period |
526 | 1,511 | ||||
|
|
||||||
|
Consists of: |
||||||
|
Cash and cash equivalents of continuing operations |
526 | 1,135 | ||||
|
Cash and cash equivalents of discontinued operations |
– | 376 | ||||
|
|
||||||
|
Total |
526 | 1,511 | ||||
|
|
||||||
|
|
||||||