Operating Income Before Restructuring  and Other Items Net Earnings Before Restructuring and Other Items  and Net Gains on Investments The term operating income before restructuring and other items does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. We use operating income before restructuring and other items, among other measures, to assess the oper- ating performance of our ongoing businesses without the effects of restructuring and other items. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. The exclu- sion of these items does not imply they are necessarily non-recurring. The term net earnings before restructuring and other items and net gains on investments does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. We use net earnings before restructuring and other items and net gains on investments, among other measures, to assess the operating performance of our ongoing business without the effects of after-tax restruc- turing and other items and net gains on investments. We exclude these items because they affect the compa- rability of our financial results and could potentially distort the analysis of trends in business performance. The exclusion of these items does not imply they are necessarily non-recurring. The most comparable Canadian GAAP financial measure is net earnings applicable to common shares. The table below is a reconciliation of net earnings applicable to common shares to net earnings before restructuring and other items and net gains on invest- ments on a consolidated basis and per common share. EBITDA We define EBITDA (earnings before interest, taxes, depre- ciation and amortization)  as operating revenues less operating expenses, which means it represents operating income before amortization expense, net benefit plans cost, and restructuring and other items. The most comparable Canadian GAAP financial measure is operating income. The table below is a recon- ciliation of operating income to operating income before restructuring and other items on a consolidated basis. 2004 2003 Operating income 2,976 4,121 Restructuring and other items 1,224 14 Operating income before restructuring and other items 4,200 4,135 BCE 2004 2003 EBITDA 7,564  7,410  Amortization expense (3,108) (3,100) Net benefit plans cost (256) (175) Restructuring and other items (1,224) (14) Operating income 2,976  4,121 BELL CANADA 2004 2003 EBITDA 7,111  7,001  Amortization expense (2,962) (2,970) Net benefit plans cost (235) (181) Restructuring and other items (1,219) (14) Operating income 2,695  3,836 2004 2003 TOTAL PER SHARE TOTAL PER SHARE Net earnings applicable to common shares 1,523 1.65 1,744 1.90 Restructuring and other items 772 0.83 3 – Net gains on investments (423) (0.46) 2 – Net earnings before restructuring and other items  and net gains on investments 1,872 2.02 1,749 1.90 Bell Canada Enterprises  2004 Annual Report 33