In addition to the amounts recorded to net income, a tax expense of $1.9 million was recorded to other comprehensive income for the three month period ended March 31, 2013 (three months ended March 31, 2012 - tax recovery of $1.0 million) in relation to the actuarial gains (losses) on defined benefit employee compensation plans.
9. Earnings Per Share
Basic net income (loss) per share is calculated by dividing the net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) available to common shareholders by the weighted average number of common shares during the period using the treasury stock method. Under this method, proceeds from the potential exercise of stock options are assumed to be used to purchase the Company's common shares. When there is a net loss, the exercise of stock options would result in a calculated diluted net loss per share that is anti-dilutive. As at March 31, 2013, there were no outstanding stock options.
3 months ended March 31, 2013 2012--------------------------------------------------------------------------Weighted average number of common shares 142,752,431 142,740,006Incremental shares from potential exercise of options(1) - 381Diluted number of common shares(1) 142,752,431 142,740,006----------------------------------------------------------------------------------------------------------------------------------------------------(1) Where the addition of share options to the total shares outstanding hasan anti-dilutive impact on the diluted net income (loss) per sharecalculation, those share options have not been included in the total commonshares outstanding for purposes of the calculation of diluted net income(loss) per share.
10. Net Change in Non-Cash Working Capital
3 months ended March 31,(millions of Canadian dollars) 2013 2012--------------------------------------------------------------------------Accounts receivable $ (48.1) $ (8.6)Inventories (99.5) (85.8)Prepaid expenses 1.5 2.4Accounts payable, accrued liabilities and current portion of deferred reforestation obligations 51.6 15.2--------------------------------------------------------------------------Net decrease (increase) in non-cash working capital $ (94.5) $ (76.8)----------------------------------------------------------------------------------------------------------------------------------------------------
11. Segment Information
Canfor has two reportable segments which offer different products and are managed separately because they require different production processes and marketing strategies.
Sales between segments are accounted for at prices that approximate fair value. These include sales of residual fibre from the lumber segment to the pulp and paper segment for use in the pulp production process.
The Company's panels business does not meet the criteria to be reported fully as a separate segment and is included in Unallocated & Other below. For the three months ended March 31, 2013, the Company's share of Canfor-LP OSB's sales and operating income were $30.4 million and $11.0 million, respectively. As a result of the classification of Canfor's investment in Canfor-LP OSB as held for sale, these amounts were not included in the segment or consolidated results of the Company. For the three months ended March 31, 2012, the results of Canfor-LP OSB were presented in equity income (loss).
(millions of Canadian Pulp & Unallocated Elimination dollars) Lumber Paper & Other Adjustment Consolidated--------------------------------------------------------------------------3 months ended March 31, 2013Sales to external customers $ 542.3 243.5 0.5 - $ 786.3Sales to other segments $ 31.2 - - (31.2) $ -Operating income (loss) $ 88.4 18.9 (7.3) - $ 100.0Amortization $ 27.3 19.4 0.2 - $ 46.9Capital expenditures $ 38.0 7.0 1.4 - $ 46.4Identifiable assets $ 1,692.6 777.3 144.7 - $ 2,614.6--------------------------------------------------------------------------3 months ended March 31, 2012Sales to external customers $ 343.7 249.4 0.7 - $ 593.8Sales to other segments $ 29.2 - - (29.2) $ -Operating income (loss) $ (20.3) 11.3 (9.4) - $ (18.4)Amortization $ 23.2 17.7 1.7 - $ 42.6Capital expenditures(1) $ 26.9 26.7 - - $ 53.6Identifiable assets $ 1,593.1 780.2 202.6 - $ 2,575.9----------------------------------------------------------------------------------------------------------------------------------------------------(1) Capital expenditures represent cash paid for capital assets, excludingacquisition of Tembec assets, during the 2012 period. Pulp & Paper includescapital expenditures by CPPI that are financed by the federal government-funded Green Transformation Program.
