Consolidated statements of cash flows Bombardier Inc. Annual Report 2003-04 page 88 The accompanying summary of significant accounting policies and notes are an integral part of these Consolidated Financial Statements and provide information  on the financial statement presentation. FOR THE YEARS ENDED JANUARY 31 BOMBARDIER INC. (MILLIONS OF CANADIAN DOLLARS) CONSOLIDATED BOMBARDIER BC NOTES 2004 2003 2004 2003 2004 2003 Operating activities Income (loss) from continuing operations $( 195) $( 7 0 9) $( 195) $( 7 0 9) $ 44 $ 63 Non-cash items: Depreciation and amortization 793 806 660 626 133 180 Income from BC – – (44) (63) – – Provision for credit losses 4 81 120 – – 81 120 Deferred income taxes 19 96 (353) 102 (387) (6) 34 Loss on disposals of property,  plant and equipment 5 – 5 – – – Stock-based compensation expense  4 – 4 – – – Special items  18 429 1,311 429 1,311 – – Net changes in non-cash balances related to operations 21 (1,796) 647 (1,707) 553 (89) 94 Cash flows from operating activities  (583) 1,822 (746) 1,331 163 491 Investing activities Additions to property, plant and equipment (416) (721) (412) (708) (4) (13) Disposals of property, plant and equipment 164 88 142 72 22 16 Net decrease in finance receivables 2,047 1,048 – – 2,047 1,048 Additions to assets under operating leases (313) (1,597) – – (313) (1,597) Disposals of assets under operating leases 770 1,847 – – 770 1,847 Disposals of assets held for sale  2 190 – 190 – – – Disposal of discontinued operations,  net of cash disposed  2 740 – 740 – – – Investment in BC and advances and  subordinated loans to Bombardier  – – 778 185 (778) (185) Other (597) (20) (161) (27) (436) 7 Cash flows from investing activities 2,585 645 1,277 (478) 1,308 1,123 Financing activities Net variation in short-term borrowings (2,035) (1,787) (366) (1,079) (1,669) (708) Proceeds from issuance of long-term debt 1,286 2,299 56 893 1,230 1,406 Repayments of long-term debt (1,504) (2,175) (192) (35) (1,312) (2,140) Issuance of shares, net of related costs 14 1,174 250 1,174 250 – – Dividends paid (189) (278) (189) (278) – – Cash flows from financing activities  (1,268) (1,691) 483 (249) (1,751) (1,442) Effect of exchange rate changes on cash and cash equivalents 69 (321) 76 (450) (7) 129 Cash flows from continuing operations 803 455 1,090 154 (287) 301 Cash flows from discontinued operations 2 (227) 125 (227) 125 – – Net increase (decrease) in cash and  cash equivalents 576 580 863 279 (287) 301 Cash and cash equivalents  at beginning of year 1,043 463 742 463 301 – Cash and cash equivalents at  end of year (1) $1,619 $1,043 $1,605 $ 742 $ 14 $ 301 (1) Includes the following:  Cash and cash equivalents related to: Continuing operations $1,619 $1,014 $1,605 $ 713 $ 14 $ 301 Discontinued operations – 29 – 29 – – $1,619 $1,043 $1,605 $ 742 $ 14 $ 301 Supplemental information Cash paid for: Interest $ 530 $ 493 Income taxes $ 78 $ 63