TABLEROS DE DISTRIBUCIÓN Y DE SERVICIOS GENERALES

Basic and diluted 167.1 141.3 Weighted average shares outstanding (in millions)

Weighted average number of shares outstanding – basic and diluted 65.5 64.7 Earnings per share ($)

Basic and diluted earnings per share 2.55 2.18 As at December 31, 2011 and December 31, 2010 no stock options had an anti-dilutive effect.

10. INVENTORIES

The Company performs periodic reviews of inventory for obsolescence and, during the year ended December 31, 2011, expensed $1.0 million in obsolete inventory (2010 – $0.9 million). During the year ended December 31, 2011, the Company expensed $38.5 million of inventory relating to cost of goods sold (2010 – $41.0 million).

11. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are comprised of the following: General Buildings and

Network equipment leasehold Assets under Assets under

assets and other improvements finance lease construction Land Total Cost January 1, 2010 2,914.6 440.0 245.6 1.7 93.3 6.3 3,701.5 Additions 182.8 61.3 9.6 — 61.1 0.1 314.9 Transfers (note 12) (129.8) 113.6 26.2 — — — 10.0 Disposals (43.6) (28.6) (1.6) — — — (73.8) December 31, 2010 2,924.0 586.3 279.8 1.7 154.4 6.4 3,952.6 Additions 151.6 59.4 11.3 — 21.4 — 243.7 Transfers 3.0 (3.0) (0.2) — — 0.2 — Disposals (36.6) (98.9) (3.6) — — — (139.1) Other changes 1.2 — — — — — 1.2 December 31, 2011 3,043.2 543.8 287.3 1.7 175.8 6.6 4,058.4 Accumulated depreciation and impairment

January 1, 2010 1,919.3 298.0 104.9 0.7 — — 2,322.9 Depreciation expense 141.7 46.5 9.3 0.2 — — 197.7 Transfers (note 12) (144.8) 135.8 15.2 — — — 6.2 Disposals (43.0) (28.0) (0.8) — — — (71.8) December 31, 2010 1,873.2 452.3 128.6 0.9 — — 2,455.0 Depreciation expense 139.2 48.0 9.4 0.2 — — 196.8 Disposals (34.3) (99.6) (2.8) — — — (136.7) December 31, 2011 1,978.1 400.7 135.2 1.1 — — 2,515.1 Net book value

December 31, 2010 1,050.8 134.0 151.2 0.8 154.4 6.4 1,497.6 December 31, 2011 1,065.1 143.1 152.1 0.6 175.86.6 1,543.3

12. INTANGIBLE ASSETS

Intangible assets are comprised of the following:

Spectrum

Subscriber licences and Customer Computer acquisition broadcast contracts and

software costs certificate relationships Other Goodwill Total Cost January 1, 2010 298.9 89.6 51.4 10.8 32.1 27.7 510.5 Additions 47.0 51.1 — — 11.1 — 109.2 Transfers (note 11) (10.0) — — — — — (10.0) Disposals (1.0) (23.0) — (0.1) (0.5) — (24.6) December 31, 2010 334.9 117.7 51.4 10.7 42.7 27.7 585.1 Additions 44.3 68.1 — — 28.2 — 140.6 Disposals (3.3) (45.6) — — (26.0) — (74.9) December 31, 2011 375.9 140.2 51.4 10.7 44.9 27.7 650.8 Accumulated amortization and impairment

January 1, 2010 177.2 35.2 — 2.6 17.0 — 232.0 Amortization expense 47.1 44.1 — 1.1 0.2 — 92.5 Amortization recorded in operations expense — — — — 11.9 — 11.9 Transfers (note 11) (6.2) — — — — — (6.2) Disposals (1.0) (23.0) — (0.1) (0.5) — (24.6) December 31, 2010 217.1 56.3 — 3.6 28.6 — 305.6 Amortization expense 49.4 50.2 — 1.0 1.2 — 101.8 Amortization recorded in operations expense — — — — 11.1 — 11.1 Disposals (3.3) (45.6) — — (26.0) — (74.9) December 31, 2011 263.2 60.9 — 4.6 14.9 — 343.6 Net book value

December 31, 2010 117.8 61.4 51.4 7.1 14.1 27.7 279.5 December 31, 2011 112.7 79.3 51.4 6.1 30.0 27.7 307.2 Allocation of goodwill to cash-generating units for impairment testing

For the purposes of its annual goodwill impairment test, the Company allocates its goodwill to the cash-generating units, which are the smallest identifiable groups of assets that generate cash inflows that have goodwill and are largely independent of the cash inflows from other groups of assets. The Company’s $27.7 million of goodwill has been allocated as follows: $20.6 million to the MTS Unit, excluding AAA Alarms, and $7.1 million to AAA Alarms.

The Company also has indefinite life intangible assets of $51.4 million (December 31, 2010 – $51.4 million; January 1, 2010 – $51.4 million) which have been allocated to the MTS Unit, excluding AAA Alarms, for purposes of annual impairment testing. The impairment tests performed during the year did not result in the recognition of any impairment losses.

In performing the annual impairment testing for each of the Company’s cash-generating units, the Company measured the recoverable amount of the cash-generating unit based on a value in use calculation using certain key management assumptions. Cash flow projections, which were made over a five-year period based on financial budgets approved by the Board, include key assumptions about revenues, expenses and other cash flows. Revenue forecasts were based on management’s estimate of growth in the markets served and are not considered to exceed the long-term average growth rates for those markets. Operating expenses were estimated based upon past experience, adjusted for the increase in activity levels supporting the cash flow projections. Discount rates applied to the cash flow forecasts are derived from the group’s pre-tax weighted

12. INTANGIBLE ASSETS (continued)

average cost of capital, adjusted to reflect management’s estimate of the specific risk profiles of the individual cash-generating units. The cash flows related to the MTS Unit, excluding AAA Alarms, and AAA Alarms were discounted using pre-tax rates of 12.3% to 13.2% and 13.3% to 14.8%, respectively.

Based on the sensitivity analysis performed, the Company has concluded that no reasonably possible changes in the key assumptions on which the recoverable amount is based would cause the carrying amount of the cash-generating unit to exceed the recoverable amount.

13. OTHER ASSETS

December 31, 2011 December 31, 2010 January 1, 2010 Investment tax credits recoverable 48.1 21.9 17.8 Long-term prepaid costs 15.1 16.9 18.9 Other long-term assets 4.6 4.2 5.5 Long-term disability fund, at cost — — 0.1 67.8 43.0 42.3 14. PROVISIONS

The composition and changes in provisions are as follows:

Restructuring Tax-related Decommissioning Other Total January 1, 2010 15.4 14.1 6.0 4.6 40.1 Provisions recognized 18.8 0.5 — 4.1 23.4 Provisions utilized (19.5) (3.2) (0.2) (2.4) (25.3) Provisions reversed (2.0) (0.2) — (1.1) (3.3) Accretion 0.2 — 0.5 — 0.7 December 31, 2010 12.9 11.2 6.3 5.2 35.6 Provisions recognized 7.9 5.2 0.4 0.1 13.6 Provisions utilized (8.9) (0.5) (0.5) (0.4) (10.3) Provisions reversed (0.4) — — (0.1) (0.5) Accretion 0.1 — 0.3 — 0.4 December 31, 2011 11.6 15.9 6.5 4.838.8 Presented as: Current provisions 11.2 15.9 1.5 4.5 33.1 Long-term provisions 0.4 — 5.0 0.3 5.7 Total provisions 11.6 15.9 6.5 4.838.8 (i) Restructuring

Restructuring provisions relate to the Company’s efficiency programs aimed at achieving process improvements and expense reductions. Restructuring costs include costs for severance and other employee- related expenses that supported workforce reduction initiatives undertaken throughout the year, facility consolidation of select real estate, as well as costs to review and improve efficiencies in current processes. These provisions are expected to be settled over periods ranging from one month to 24 months.

(ii) Tax-related

The Company recognizes tax-related provisions for uncertain tax positions related to sales taxes, capital taxes and property taxes. The provisions reflect the potential obligation for the Company to remit additional taxes, penalties and/or interest as a result of decisions by taxation authorities.

14. PROVISIONS (continued) (iii) Decommissioning

Decommissioning provisions arise from legal and constructive obligations that exist for the removal of equipment or the restoration of premises upon the termination of certain agreements. These provisions, which are expected to be settled over periods ranging from seven months to 40 years, are associated with underground and above ground cable, microwave towers and related structures, building accesses and leased facilities.

The undiscounted amount of the estimated cash flows required to settle the decommissioning provisions as at December 31, 2011 is approximately $12 million (December 31, 2010 – $14 million; January 1, 2010 – $14 million). (iv) Other

Other provisions include amounts provided for legal or constructive obligations arising from regulatory decisions and litigation claims.

15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial assets and liabilities

Financial assets and liabilities in the consolidated statements of financial position are as follows: Other Loans and financial Financial receivables at liabilities at assets/liabilities amortized amortized

December 31, 2011 at fair value cost cost Total Financial assets

Cash and cash equivalents 16.8— — 16.8 Accounts receivable — 156.6 — 156.6

16.8156.6 — 173.4 Financial liabilities

Accounts payable and accrued liabilities — — 311.9 311.9 Current portion of long-term debt — — 100.0 100.0

Long-term debt — — 920.8920.8 Other long-term liabilities — — 17.0 17.0

— — 1,349.7 1,349.7 Other

Loans and financial Financial receivables at liabilities at assets/liabilities amortized amortized

December 31, 2010 at fair value cost cost Total Financial assets

Cash and cash equivalents 50.0 — — 50.0 Accounts receivable — 152.3 — 152.3 50.0 152.3 — 202.3 Financial liabilities

Accounts payable and accrued liabilities 0.4 — 343.0 343.4 Current portion of long-term debt — — 220.0 220.0 Long-term debt — — 820.6 820.6 Other long-term liabilities — — 0.5 0.5 0.4 — 1,384.1 1,384.5

15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

Other Loans and financial Financial receivables at liabilities at assets/liabilities amortized amortized

January 1, 2010 at fair value cost cost Total Financial assets

Cash and cash equivalents 110.2 — — 110.2 Accounts receivable — 166.2 — 166.2 110.2 166.2 — 276.4 Financial liabilities

Accounts payable and accrued liabilities 0.7 — 312.0 312.7 Current portion of long-term debt — — 11.9 11.9 Long-term debt — — 1,039.6 1,039.6 Other long-term liabilities — — 1.1 1.1 0.7 — 1,364.6 1,365.3

Notes payable

As at December 31, 2011, the Company had a $400 million bank credit facility with a syndicate of financial institutions, which is used for cash management purposes, the issuance of letters of credit, and to support the Company’s $150 million commercial paper program. As at December 31, 2011, the Company had $37.4 million in undrawn letters of credit outstanding under this facility. The Company also had a $150 million credit facility with a financial institution, which is used solely for the issuance of letters of credit. As at December 31, 2011, the Company had $149.3 million in undrawn letters of credit outstanding under this facility.

Under the terms of the Company’s accounts receivable securitization program, the Company has the ability to transfer, on a revolving basis, an undivided ownership interest in its accounts receivable to a securitization trust, up to a maximum of $110.0 million. The terms of the Company’s accounts receivable securitization program require the Company to maintain reserve accounts, in the form of additional accounts receivable over and above the cash proceeds received, to absorb credit losses on the receivables sold. As at December 31, 2011, the Company had no balance outstanding on its accounts receivable securitization program.

Long-term debt

Long-term debt is comprised of the following: Interest

rate Maturity December 31, 2011 December 31, 2010 January 1, 2010 Medium Term Note 8.625% September 8, 2010 — — 11.9 Medium Term Note 5.20% September 27, 2011 — 220.0 220.0 Medium Term Note 5.05% May 11, 2012 100.0 100.0 100.0 Loan Payable 6.59% May 14, 2014 75.0 75.0 75.0 Medium Term Note 6.15% June 10, 2014 200.0 200.0 200.0 Medium Term Note 6.65% May 11, 2016 250.0 250.0 250.0 Medium Term Note 4.59% October 1, 2018 200.0 — — Medium Term Note 5.625% December 16, 2019 200.0 200.0 200.0 1,025.0 1,045.0 1,056.9 Less: debt issue costs (4.2) (4.4) (5.4)

1,020.8 1,040.6 1,051.5 Less: current portion of long-term debt (100.0) (220.0) (11.9)

920.8 820.6 1,039.6