Year ended December 31, 2012 Wireless Cable Business Solutions Media Corporate items and eliminations Consolidated totals Operating revenue $ 7,280 $ 3,358 $ 351 $ 1,620 $ (123) $ 12,486 Operating costs 1 4,217 1,753 262 1,430 (10) 7,652 Adjusted operating profit 3,063 1,605 89 190 (113) 4,834 Restructuring, acquisition and other expenses 92 Stock-based compensation expense 1 77 Depreciation and amortization 1,819 Impairment of assets 80 Operating income 2,766 Finance costs (671) Other income 250 Income before income taxes $ 2,345 Additions to property, plant and equipment $ 1,123 $ 832 $ 61 $ 55 $ 71 $ 2,142 Goodwill $ 1,146 $ 1,000 $ 215 $ 854 $ – $ 3,215 Total assets $ 9,769 $ 4,719 $ 835 $ 2,157 $ 2,138 $ 19,618 1 Included in operating costs on the consolidated statements of income. Revenue by Product 2013 2012 Wireless: Postpaid $ 6,470 $ 6,402 Prepaid 278 317 Network revenue 6,748 6,719 Equipment sales 522 561 Total Wireless 7,270 7,280 Cable: Television 1,809 1,868 Internet 1,159 998 Cable telephony 498 477 Service revenue 3,466 3,343 Equipment sales 9 15 Total Cable 3,475 3,358 Business Solutions: Next generation 213 162 Legacy 149 183 Service revenue 362 345 Equipment sales 12 6 Total Business Solutions 374 351 Media: Advertising 762 784 Subscription 316 264 Retail 305 276 Other 321 296 Total Media 1,704 1,620 Corporate items and intercompany eliminations (117) (123) $ 12,706 $ 12,486 NOTE 5: FINANCE COSTS 2013 2012 Interest on long-term debt $ 734 $ 691 Interest on pension liability 14 7 Foreign exchange loss (gain) 23 (9) Change in fair value of derivative instruments (16) 1 Capitalized interest (25) (28) Other 12 9 $ 742 $ 671 NOTE 6: DISCONTINUED OPERATIONS 2012 Operating revenue $ 18 Operating costs (30) Restructuring, acquisition and other expenses (30) Loss before income taxes (42) Income tax recovery 10 Loss from discontinued operations for the year $ (32) We discontinued our Video segment in the second quarter of 2012 and reported the Video results of operations as discontinued operations at that time. As of June 2012, Rogers’ stores no longer offered video and game rentals or sales at its retail locations. Certain of these stores continue to serve customers’ wireless and cable needs. The Video segment did not have any results from discontinued operations in 2013 or any significant assets or liabilities as at December 31, 2013 and 2012. Cash flows from operating activities for the segment for 2013 were nil (2012 – $2 million). The Video segment did not have any cash flows from investing or financing activities for the years ended December 31, 2013 and 2012. 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 103 NOTE 4: OPERATING COSTS 2013 2012 Cost of equipment sales and direct channel subsidies $ 1,541 $ 1,605 Merchandise for resale 190 173 Other external purchases 4,126 4,138 Employee salaries and benefits and stock-based compensation 1,940 1,813 $ 7,797 $ 7,729 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS