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Consolidated Financial Statements

Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Comprehensive Income Consolidated Statements of Shareholders’ Equity Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows

		Years Ended December 31,
(In millions)		2004	2003	2002
Cash flows from operating activities:
Net income	$	121.5	29.4	26.1
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax		(20.9)	(11.2)	43.3
Depreciation and amortization		175.0	168.0	149.9
Impairment charges from subscriber disconnects		38.4	34.3	32.3
Amortization of deferred revenue		(26.1)	(25.0)	(23.9)
Impairment of other long-lived assets		5.8	1.3	15.8
Aircraft heavy maintenance expense		26.2	21.3	30.6
Deferred income taxes		21.8	30.2	(0.5)
Provision (credit) for uncollectible accounts receivable		4.0	(1.1)	3.2
Other operating, net		13.7	3.5	22.9
Postretirement benefit funding (more) less than expense:
Pension		23.5	4.6	(23.8)
Other than pension		(60.9)	9.5	0.7
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		(128.9)	12.5	(14.6)
Accounts payable and accrued liabilities		77.4	(6.8)	19.1
Deferred subscriber acquisition cost		(19.5)	(18.4)	(17.7)
Deferred revenue from new subscribers		34.6	28.2	27.1
Other, net		(5.7)	1.3	7.2
Discontinued operations, net		0.2	19.2	(56.4)
Net cash provided by operating activities		280.1	300.8	241.3
Cash flows from investing activities:
Capital expenditures		(220.3)	(202.7)	(193.4)
Aircraft heavy maintenance expenditures		(25.1)	(23.9)	(31.0)
Cash proceeds from:
Disposal of former natural resource interests		28.6	119.4	42.3
Disposal of other property and equipment		11.0	18.7	5.3
Monetization of notes receivable and royalty agreement related to sale of former coal operations		-	26.0	-
Acquisitions		(14.8)	(8.1)	(0.1)
Contributions to Voluntary Employees’ Beneficiary Association trust		-	(82.0)	-
Other, net		(1.1)	(0.8)	(0.9)
Discontinued operations, net		(0.8)	(8.8)	(30.6)
Net cash used by investing activities		(222.5)	(162.2)	(208.4)
Cash flows from financing activities:
Long-term debt:
Additions		89.5	81.7	294.7
Repayments		(119.5)	(185.4)	(304.1)
Short-term borrowings (repayments), net		(9.1)	(15.1)	9.1
Proceeds from exercise of stock options		24.2	1.7	1.4
Dividends		(5.4)	(5.3)	(5.7)
Repurchase of stock		-	-	(11.1)
Other, net		(1.8)	(0.6)	(1.0)
Net cash used by financing activities		(22.1)	(123.0)	(16.7)
Effect of exchange rate changes on cash		4.8	10.8	(0.6)
Net increase in cash and cash equivalents		40.3	26.4	15.6
Cash and cash equivalents at beginning of year		128.7	102.3	86.7
Cash and cash equivalents at end of year	$	169.0	128.7	102.3

See accompanying notes to consolidated financial statements.