Consolidated Statements of Cash Flows FOR THE YEAR ENDED DECEMBER 31  (in $ millions)  2004 2003 2002 Cash flows from operating activities Earnings from continuing operations 1,498  1,871 1,871 Adjustments to reconcile earnings from continuing operations  to cash flows from operating activities: Amortization expense 3,108  3,100 3,024 Net benefit plans cost (credit) 256  175 (33) Restructuring and other items 1,224  14 768 Impairment charge – – 765  Net gains on investments (319) (76) (2,401) Future income taxes (34) 418 563 Non-controlling interest 174  201 663 Contributions to employee pension plans  (112) (160) (21) Other employee future benefit plan payments (81) (87) (76) Payments of restructuring and other items (253) (124) (338) Operating assets and liabilities 58  636 (361) Cash flows from operating activities 5,519  5,968 4,424 Cash flows from investing activities Capital expenditures (3,364) (3,167) (3,709) Business acquisitions (1,299) (115) (6,471) Business dispositions 20  55 3,190 Change in investments accounted for  under the cost and equity methods 655  163 (54) Other  124  62 12 Cash used in investing activities (3,864) (3,002) (7,032) Cash flows from financing activities Increase (decrease) in notes payable and bank advances 130  (295) (213) Issue of long-term debt 1,521  1,986 4,909 Repayment of long-term debt (2,391) (3,472) (2,691) Issue of common shares 32  19 2,693 Costs relating to the issuance of common shares – – (78) Issue of preferred shares – 510 510 Redemption of preferred shares – (357) (306) Issue of equity securities by subsidiaries  to non-controlling interest 8  132 92 Redemption of equity securities by subsidiaries  from non-controlling interest (58) (108) –  Cash dividends paid on common shares (1,108) (1,029) (999) Cash dividends paid on preferred shares (85) (61) (43) Cash dividends paid by subsidiaries to non-controlling interest (188) (184) (468) Other  (51) (46) (44) Cash provided by (used in) financing activities (2,190) (2,905) 3,362  Cash provided by (used in) continuing operations (535) 61 754 Cash provided by (used in) discontinued operations 193  355 (1,017) Net increase (decrease) in cash and cash equivalents (342) 416 (263) Cash and cash equivalents at beginning of year 722  306 569 Cash and cash equivalents at end of year 380  722 306 Consists of: Cash and cash equivalents of continuing operations 380  585 208 Cash and cash equivalents of discontinued operations – 137 98 Total 380  722 306 Bell Canada Enterprises  2004 Annual Report 85