In addition to the amounts recorded to net income, a tax expense of $0.1 million was recorded to other comprehensive income for the three month period ended March 31, 2013 (three months ended March 31, 2012 - recovery of $0.7 million) in relation to the actuarial gains (losses) on defined benefit employee compensation plans.
7. Earnings Per Share
Basic net income per share is calculated by dividing the net income available to common shareholders by the weighted average number of common shares outstanding during the period. As a result of the exchange transaction and the application of reverse acquisition accounting, the CPPI shares relating to the non-controlling interest shareholders were not included until March 2, 2012. This transaction led to an increase in the weighted average number of shares outstanding. The issuance of the new shares as a result of the exchange was accompanied by a corresponding increase in CPPI's investment in the Partnership and as a result there is no dilution of CPPI's net income per share.
3 months ended March 31, 2013 2012---------------------------------------------------------------------------Weighted average number of common shares 71,269,790 47,087,537------------------------------------------------------------------------------------------------------------------------------------------------------
8. Net Change in Non-Cash Working Capital
3 months ended March 31,(millions of Canadian dollars) 2013 2012---------------------------------------------------------------------------Accounts receivable $ (14.1) $ 7.1Inventories (0.3) 7.4Prepaid expenses and other assets 1.2 (0.2)Accounts payable and accrued liabilities 6.0 0.1---------------------------------------------------------------------------Net decrease (increase) in non-cash working capital $ (7.2) $ 14.4------------------------------------------------------------------------------------------------------------------------------------------------------
9. Segment Information
The Company has two reportable segments which operate as separate business units and represent separate product lines.
Sales between pulp and paper segments are accounted for at prices that approximate fair value. These include sales of slush pulp from the pulp segment to the paper segment.
(millions of EliminationCanadian dollars) Pulp Paper Unallocated Adjustment Consolidated---------------------------------------------------------------------------3 months ended March 31, 2013Sales to external customers $ 180.4 36.1 1.0 - $ 217.5Sales to other segments $ 18.1 - - (18.1) $ -Operating income (loss) $ 15.4 5.9 (2.3) - $ 19.0Amortization $ 17.9 1.0 - - $ 18.9Capital expenditures $ 6.6 0.2 0.1 - $ 6.9Identifiable assets $ 671.5 64.4 40.0 - $ 775.9---------------------------------------------------------------------------3 months ended March 31, 2012Sales to external customers $ 190.1 29.9 - - $ 220.0Sales to other segments $ 17.2 - - (17.2) $ -Operating income (loss) $ 12.2 2.7 (3.4) - $ 11.5Amortization $ 16.1 1.0 0.1 - $ 17.2Capital expenditures(1) $ 26.4 0.1 0.2 - $ 26.7Identifiable assets $ 677.7 65.5 37.1 - $ 780.3------------------------------------------------------------------------------------------------------------------------------------------------------(1) Capital expenditures represent cash paid for capital assets during theperiod. For 2012, capital expenditures includes amounts that are financedby the federal government-funded Green Transportation Program.
