Consolidated Statements OF CASH FLOWS For the years ended December 31 FINANCING ACTIVITIES INVESTING ACTIVITIES 2012  2011 [in thousands of Canadian dollars] $  $ OPERATING ACTIVITIES (*) Net income  352,163  376,899 Add (deduct) items not involving cash  Gain (loss) on sale of marketable securities  (303)  489  Equity-based compensation  3,886  7,000 Amortization of deferred sales commissions  163,100  164,431 Amortization of intangibles  2,437  2,386 Amortization and depreciation of other  9,328  10,773 Deferred income taxes  17,522 12,751  Cash provided by operating activities before changes  in operating assets and liabilities  548,133  574,729 Net change in non-cash working capital balances  (6,700) (63,679) Cash provided by operating activities 541,433 511,050 Purchase of marketable securities  (26,761)  (43,740) Proceeds on sale of marketable securities  5,315  32,082  Additions to capital assets  (5,560)  (21,477) Deferred sales commissions paid  (124,203) (141,232) Decrease (increase) in other assets  (400)   7,745 Additions to intangibles  (1,718)  (1,924) Cash used in investing activities  (153,327)  (168,546) Increase in long-term debt   63,000  9,092  Repayment of debentures   (250,000)  (100,000)  Repurchase of share capital   (30,534)  (95,194)  Issuance of share capital   199  3,812 Dividends paid to shareholders  (269,184)  (254,201) Cash used in fi nancing activities (486,519)  (436,491) Net decrease in cash and cash equivalents during the year  (98,413)  (93,987) Cash and cash equivalents, beginning of year  122,550  216,537 Cash and cash equivalents, end of year 24,137  122,550 (*) Included in operating activities are the following:  Interest paid  25,101  27,507  Income taxes paid   136,165 213,326 (see accompanying notes) 52