2004

CASH DERIVED FROM (APPLIED TO)

Operating activities

Working capital provided by operations

Net income

$

430,892

Amortization of capital assets

77,161

Amortization of deferred charges

1,291

Stock based compensation

1,123

Change in deferred pension asset

(11,574

)

Future income taxes

96,701

Gain on sale of assets held for sale

(4,925

)

590,669

Change in non-cash operating working capital

Trade receivables

(146,191

)

Other receivables

(5,017

)

Income taxes recoverable

33,054

Inventories

(137,446

)

Prepaid expenses

(5,114

)

Accounts payable and accrued charges

47,114

Accrued payroll and related liabilities

23,506

Income and other taxes payable

91,126

Other current liabilities

(6,004

)

(104,972

)

485,697

Financing activities

Proceeds from issuance of common shares pursuant to share option plan

30,364

Common share dividends

(9,536

)

Redemption of preferred shares

(108,996

)

Redemption of subordinated notes

(100,000

)

Issuance (repayment) of long-term debt

(34,286

)

(222,454

)

Investing activities

Expenditures for capital assets

(29,068

)

Proceeds from sale of assets held for sale

4,759

Proceeds from (issuance of) mortgages receivable, net

(2,983

)

Purchase of investments

—

(27,292

)

Effect of exchange rate changes on cash and cash equivalents

(12,441

)

INCREASE IN CASH AND CASH EQUIVALENTS

223,510

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

131,567

CASH AND CASH EQUIVALENTS AT END OF YEAR

$

355,077