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MANAGEMENT’S DISCUSSION AND ANALYSIS
Reconciliation of Adjusted Operating Profit
Years ended December 31
(In millions of dollars) 2013 2012
Operating income $ 2,926 $ 2,766
Add (deduct):
Depreciation and amortization 1,898 1,819
Impairment of assets –80
Stock-based compensation expense 84 77
Restructuring, acquisition and other
expenses 85 92
Adjusted operating profit $ 4,993 $ 4,834
Reconciliation of Adjusted Net Income
Years ended December 31
(In millions of dollars) 2013 2012
Net income from continuing operations $ 1,669 $ 1,725
Add (deduct):
Stock-based compensation expense 84 77
Restructuring, acquisition and other
expenses 85 92
Impairment of assets –80
Gain on sale of TVtropolis (47) –
Gain on spectrum distribution –(233)
Income tax impact of above items (30) (14)
Income tax adjustment, legislative
tax change 854
Adjusted net income $ 1,769 $ 1,781
Reconciliation of Pre-tax and After-tax Free Cash Flow
Years ended December 31
(In millions of dollars) 2013 2012
Cash provided by operating activities $ 3,990 $ 3,421
Add (deduct):
Property, plant and equipment
expenditures (2,240) (2,142)
Interest on long-term debt expense,
net of capitalization (709) (663)
Restructuring, acquisition and other
expenses 85 92
Cash income taxes 496 380
Interest paid 700 680
Change in non-cash working capital (238) 248
Other adjustments (40) 13
Pre-tax free cash flow 2,044 2,029
Cash income taxes (496) (380)
After-tax free cash flow $ 1,548 $ 1,649
Reconciliation of Adjusted Net Debt
(In millions of dollars) December 31, 2013 December 31, 2012
Long-term debt $ 12,173 $ 10,441
Current portion of long-term debt 1,170 348
13,343 10,789
Add (deduct):
Net Debt Derivatives liabilities
(assets) (51) 524
Deferred transaction costs 93 69
Short-term borrowings 650 –
Cash and cash equivalents (2,301) (213)
Adjusted net debt $ 11,734 $ 11,169
How We Calculate Adjusted Earnings Per Share
(In millions of dollars, except per
share amounts; number of shares
outstanding in millions)
Years ended December 31
2013 2012
Adjusted basic earnings per share:
Adjusted net income $ 1,769 $ 1,781
Divided by: weighted average
number of shares outstanding 515 519
Adjusted basic earnings per share $ 3.43 $ 3.43
Adjusted diluted earnings per share:
Adjusted net income $ 1,769 $ 1,781
Divided by: diluted weighted
average number of shares
outstanding 518 522
Adjusted diluted earnings per share $ 3.42 $ 3.41
Basic earnings per share:
Net income from continuing
operations $ 1,669 $ 1,725
Net income 1,669 $ 1,693
Divided by: weighted average
number of shares outstanding 515 519
Basic earnings per share – continuing
operations $ 3.24 $ 3.32
Basic earnings per share $ 3.24 $ 3.26
Diluted earnings per share:
Net income from continuing
operations $ 1,669 $ 1,725
Effect on net income of dilutive
securities ––
Diluted net income from
continuing operations $ 1,669 $ 1,725
Net income $ 1,669 $ 1,693
Effect on net income of dilutive
securities ––
Diluted net income $ 1,669 $ 1,693
Divided by: diluted weighted
average number of shares
outstanding 518 522
Diluted earnings per share –
continuing operations $ 3.22 $ 3.30
Diluted earnings per share $ 3.22 $ 3.24
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 85