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10. OTHER LONG-TERM LIABILITIES
2006
2005
Aeroplan miles obligations (a) $ 105 $ 80
Unfavourable contract liability on aircraft leases (b) 77 107
Aircraft rent in excess of lease payments (c) 121 126
Long-term employee liabilities (d) 54 86
Workplace safety and insurance board liability 45 53
Other 70 44
$ 472 $ 496
(a) Air Canada has a liability related to Aeroplan Miles which were issued by Air Canada prior to January 1,
2002. Refer to Note 20 for a description of the Special charge for Aeroplan Miles which adjusted the original
estimate of Aeroplan Miles. As of December 31, 2006 a liability for approximately 15 billion Miles, or $163,
remains in Air Canada, of which $58 is included in current liabilities (total liability of 14 billion Miles, or $169,
as at December 31, 2005). The amount of the additional liability was determined by valuing the incremental
Miles at the current fair value.
(b) The unfavourable contract liability on aircraft leases represents the net present value of lease payments in
excess of estimated market rents related to lease arrangements that existed on fresh start reporting.
(c) Included in this balance is $59 as at December 31, 2006 (2005 — $53) related to Jazz, which is
consolidated under AcG-15.
(d) The following table outlines the changes to labour related provisions which are included in long-term
employee liabilities for balances that existed upon the implementation of fresh start reporting on September
30, 2004:
2006
2005
Beginning of year $ 121 $ 157
Charges recorded in salaries, wages and benefits - 5
Interest accretion 8 12
Amounts disbursed (52) (53)
End of year 77 121
Current portion (32) (40)
$ 45 $ 81
The following table outlines the changes to labour related provisions which are included in long-term
employee liabilities for balances that have been created subsequent to the implementation of fresh start
reporting on September 30, 2004:
2006
2005
Beginning of year $ 13 $ 12
Special charge for labour restructuring
Initial provision 28 -
Adjustment to provision (8) -
Charges recorded in salaries, wages and benefits 7 5
Amounts disbursed (11) (4)
End of year 29 13
Current portion (20) (8)
$ 9 $ 5
The current portion is included in Accounts payable and accrued liabilities.
100