NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10: EARNINGS PER SHARE NOTE 12: PROPERTY, PLANT AND EQUIPMENT Cost of equipment sales and merchandise for resale includes $1,667 million (2012 – $1,707 million) of inventory costs. A total of 577,584 options were out of the money for 2013 (2012 – 17,240). They were excluded from the calculation since they were anti- dilutive. The table below shows property, plant and equipment and accumulated depreciation as at December 31, 2013 and 2012. The tables below summarize the changes in the net carrying amounts of property, plant and equipment during 2013 and 2012. The table below shows the calculation of basic and diluted earnings per share for 2013 and 2012. NOTE 11: OTHER CURRENT ASSETS 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 107 December 31, 2012 December 31, 2013 Net book value Additions Acquisitions (note 7) Depreciation Other Net book value Land and buildings $ 634 $ 25 $ 3 $ (30) $ – $ 632 Cable and wireless network 6,667 1,235 91 (1,087) 4 6,910 Computer equipment and software 1,328 495 6 (310) 3 1,522 Customer premise equipment 445 372 6 (230) 1 594 Leasehold improvements 159 27 44 (20) 11 221 Equipment and vehicles 343 86 8 (71) 10 376 $ 9,576 $ 2,240 $ 158 $ (1,748) $ 29 $ 10,255 December 31, 2011 December 31, 2012 Net book value Additions Acquisitions Depreciation Other Net book value Land and buildings $ 635 $ 30 $ – $ (29) $ (2) $ 634 Cable and wireless network 6,401 1,354 – (1,090) 2 6,667 Computer equipment and software 1,216 407 – (293) (2) 1,328 Customer premise equipment 364 255 – (175) 1 445 Leasehold improvements 153 27 – (21) – 159 Equipment and vehicles 345 69 – (70) (1) 343 $ 9,114 $ 2,142 $ – $ (1,678) $ (2) $ 9,576 December 31, 2013 December 31, 2012 Cost Accumulated depreciation Net book value Cost Accumulated depreciation Net book value Land and buildings $ 923 $ 291 $ 632 $ 894 $ 260 $ 634 Cable and wireless network 18,197 11,287 6,910 16,805 10,138 6,667 Computer equipment and software 4,553 3,031 1,522 3,972 2,644 1,328 Customer premise equipment 2,009 1,415 594 1,764 1,319 445 Leasehold improvements 492 271 221 407 248 159 Equipment and vehicles 1,124 748 376 1,055 712 343 $ 27,298 $ 17,043 $ 10,255 $ 24,897 $ 15,321 $ 9,576 2013 2012 Numerator: Net income for the year from continuing operations $ 1,669 $ 1,725 Loss from discontinued operations – (32) Net income for the year $ 1,669 $ 1,693 Denominator (in millions): Weighted average number of shares outstanding – basic 515 519 Effect of dilutive securities: Employee stock options 3 3 Weighted average number of shares outstanding – diluted 518 522 2013 2012 Inventories $ 276 $ 293 Prepaid expenses 136 126 Income tax receivable 24 39 Other 2 6 $ 438 $ 464 2013 2012 Earnings per share – basic: Earnings per share from continuing operations $3.24 $ 3.32 Loss per share from discontinued operations – (0.06) Earnings per share – basic $3.24 $ 3.26 Earnings per share – diluted: Earnings per share from continuing operations $3.22 $ 3.30 Loss per share from discontinued operations – (0.06) Earnings per share – diluted $3.22 $ 3.24