Consolidated Financial Statements and Notes - Brookfield Asset ...

Consolidated Statement of Cash FlowsYEARS ENDED DECEMBER 31MILLIONS Note 2005 2004(Note 1)Operating activitiesNet income $ 1,662 $ 555Adjusted for the following non-cash itemsDepreciation and amortization 374 251Future income taxes and other provisions 324 260Gains on disposition of Falconbridge (1,350) —Non-controlling interest in non-cash items 17 (152) (172)Excess of equity income over dividends received (175) (268)683 626Special dividend from Norbord Inc. 42 48Net change in non-cash working capital balances and other 105 198830 872Financing activitiesCorporate borrowings, net of repayments 22 (79) 97Property specific mortgages, net of repayments 22 1,057 980Other debt of subsidiaries, net of repayments 22 101 493Capital provided by non-controlling interests in funds 263 —Preferred equity redeemed (76) —Preferred equity of subsidiaries issued — 264Common shares and equivalents repurchased, net of issuances 22 (141) (12)Common shares of subsidiaries repurchased , net of issuances (187) (33)Special dividend distributed to minority shareholders — (140)Undistributed non-controlling interests of cash flow 265 242Shareholder distributions 23 (190) (160)1,013 1,731Investing activitiesInvestment in or sale of operating assets, netProperty 22 (1,004) (341)Power generation (431) (1,082)Timber and infrastructure (905) (23)Securities 22 (223) (1,305)Financial assets 22 (33) 74Investments 1,277 96Other property, plant and equipment (160) —Dividends from Canary Wharf Group, plc 183 —(1,296) (2,581)Cash and cash equivalentsIncrease 547 22Balance, beginning of year 404 382Balance, end of year $ 951 $ 40462Brookfield Asset Management | 2005 Annual Report