Consolidated Financial Statements

Consolidated Cash Flow Statements

           
For the years ended December 31
($ millions)
  2008    2007 
 

Operating Activities

       
Net earnings from continuing operations before minority interest $ 864  $ 504 
Gain on disposal of business (note 7 PDF)   (335)    
Depreciation and amortization   643    650 
Restructuring and other charges (note 4 PDF)     215 
Future income taxes   (14)   (3)
Fair value adjustment of GWL’s forward sale agreement (note 5 PDF)   11    (141)
Change in non-cash working capital   (181)   109 
Other   (8)   34 
 

Cash Flows from Operating Activities of Continuing Operations

  985    1,368 
 

Investing Activities

       
Fixed asset purchases   (807)   (658)
Short term investments   (114)   (220)
Proceeds from fixed asset sales   125    237 
Business acquisition (note 6 PDF)   (10)    
Proceeds from business disposition (note 7 PDF)   467     
Domtar investment (note 16 PDF)   144     
Credit card receivables, after securitization (note 12 PDF)   82    (238)
Franchise investments and other receivables   (37)   14 
Other   (75)   (101)
 

Cash Flows used in Investing Activities of Continuing Operations

  (225)   (966)
 

Financing Activities

       
Bank indebtedness   53    (8)
Commercial paper   (609)   (229)
Short term bank loans (notes 18 & 19 PDFs)   203    72 
Long term debt (note 19 PDF) – Issued   301    25 
  – Retired   (561)   (39)
Capital securities (note 22 PDF) – Issued   218     
Dividends – To common shareholders   (232)   (186)
  – To preferred shareholders   (55)   (57)
  – To minority shareholders   (110)   (88)
Other       (1)
 

Cash Flows used in Financing Activities of Continuing Operations

  (792)   (511)
 
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents (note 11 PDF)   233    (152)
 
Cash Flows from (used in) Continuing Operations   201    (261)
Cash Flows from Discontinued Operations (note 10 PDF)   188    247 
 
Change in Cash and Cash Equivalents   389    (14)
Cash and Cash Equivalents, Beginning of Year   1,076    1,090 
 

Cash and Cash Equivalents, End of Year

(note 11 PDF)
$ 1,465  $ 1,076 
 

See accompanying notes to the consolidated financial statements.