MANAGEMENT’S TORSTAR CORPORATION 16. COMMITMENTS AND CONTINGENCIES The company is involved in various legal actions, primarily in the Newspaper Segment, which arise in the ordinary course of business. While the final outcome of these matters cannot be predicted with certainty, any liability that may arise from such contingencies is not expected to have a material adverse effect on the financial position or results of operations of the company The company has operating lease commitments of approximately $12 million for each of the next five years. The comparative financial statements have been reclassified from statements previously presented to conform to the presentation of the 2004 financial statements.  17. COMPARATIVE FINANCIAL STATEMENTS 18. SEGMENTED INFORMATION The company operates two business segments: Newspapers and Book Publishing, which are described below. Newspapers – Publishing of daily and community newspapers including the Toronto Star, The Hamilton Spectator, The Record (Kitchener, Cambridge and Waterloo) and Metroland’s publications. This segment also includes the  related internet businesses of the newspapers; Book Publishing – Publishing and distribution of women ’s fiction through retail outlets, by direct mail and through the Internet. Segment profit or loss has been defined as operating profit which corresponds to operating profit as presented in the Consolidated Statements of Income. Summary of Business and Geographic Segments of the Company: Depreciation Business Segments Operating Revenue and Amortization Operating Profit 2004 2003 2004 2003 2004 2003 Newspapers $1,003,473 $903,385 $48,261 $47,897 $127,601 $110,116 Book publishing 538,376 584,924 8,502 7,780 97,182 124,121 Segment Totals 1,541,849 1,488,309 56,763 55,677 224,783 234,237 Corporate 118 127 (15,555) (14,166) Consolidated $1,541,849 $1,488,309 $56,881 $55,804 $209,228 $220,071 Additions to Goodwill Identifiable Assets Additions to Capital Assets & Intangible Assets 2004 2003 2004 2003 2004 2003 Newspapers $1,054,632 $1,022,139 $42,804 $57,271 $15,075 $42,940 Book publishing 415,114 431,264 2,970 7,438 Segment Totals 1,469,746 1,453,403 45,774 64,709 15,075 42,940 Corporate 17,327 37,290 28 66 Investment in  associated businesses 22,954 21,074 Consolidated $1,510,027 $1,511,767 $45,802 $64,775 $15,075 $42,940 Geographic Segments Operating Revenue Capital Assets and Goodwill 2004 2003 2004 2003 Canada $1,023,190 $926,242 $769,869 $771,946 United States 308,118 345,361 98,838 96,297 Other (a) 210,541 216,706 28,553 29,315 Segment Totals $1,541,849 $1,488,309 $897,260 $897,558 (a) Principally – United Kingdom, Japan, Germany Australia, Italy and France. 59 TORSTAR 2004