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9.3 Cash flows for Quarter 4 2006 and Quarter 4 2005
The following table provides an overview of the cash flows of the Corporation as defined under “Basis of Presentation” and its two reportable segments for
the periods indicated:
($ millions)
Air Canada
Services Jazz
Inter-segment
elimination
Consolidated
total
Air Canada
Services Jazz
Inter-segment
elimination
Consolidated
total
Cash from (used for) operating activities
Income (loss) for the period $ (144) $ 32 $ (32) $ (144) $ (136) $ 32 $ (32) $ (136)
Adjustments to reconcile to net cash provided by operations
Depreciation, amortization and obsolescence 135 6 - 141 106 4 -
110
(Gain) loss on sale of assets 10 - - 10 30 (1) -
29
Foreign exchange (gain) loss 134 - - 134 11 - -
11
Future income taxes (23) - - (23) (57) - - (57)
Employee future benefit funding more than expense (98) - - (98) (26) - - (26)
Decrease (increase) in accounts receivable 93 7 3 103 271 (32) 23
262
Decrease (increase) in spare parts, materials and supplies (27) (3) - (30) (70) (2) - (72)
Increase (decrease) in accounts payable and accrued liabilities (131) (12) (3) (146) 74 39 (24)
89
Increase (decrease) in advance ticket sales, net of restricted cash (32) - - (32) (164) - - (164)
Increase (decrease) in Aeroplan miles obligation (25) - - (25) (40) - - (40)
Non-controlling Interest - - 36 36 - - 35
35
Allocation of corporate expenses 2 - - 2 2 - -
2
Aircraft lease payments (in excess of) less than rent expense (3) - - (3) 9 30 -
39
Other (50) 3 (4) (51) (58) 3 (2) (57)
(159) 33 - (126) (48) 73 -
25
Cash from (used for) financing activities
Issue by Air Canada of share capital 187 - - 187 - - -
-
Transfer of ACTS investments to ACE 673 - - 673 20 - -
20
Transfer of Jazz investments to ACE 83 - - 83
Aircraft-related borrowings 76 - - 76 191 - -
191
Cash management with related parties - - - - (50) - - (50)
Distributions paid to non-controlling interest - (15) - (15) - - -
-
Settlement of notes payable to ACE (140) - - (140) - - -
-
Reduction of long-term debt and capital lease obligations (71) - - (71) (60) - - (60)
Other - - - - - (1) - (1)
808 (15) - 793 101 (1) -
100
Cash from (used for) investing activities
Short-term investments (383) - - (383) 921 - -
921
Additions to capital assets (206) (7) - (213) (465) (2) - (467)
Reduction of note receivable from ACE 186 - - 186 - - -
-
Proceeds from sale of assets - - - - - 1 -
1
Decrease (increase) in amount receivable from Air Canada - - - - 42 (42) -
-
Cash management with related parties 40 - - 40 (43) - - (43)
Cash collateralization of letters of credit 18 - - 18 - - -
-
Other 2 - - 2 5 (5) -
-
(343) (7) - (350) 460 (48) -
412
Increase (decrease) in cash and cash equivalents 306 11 - 317 513 24 - 537
Cash and cash equivalents, end of period $ 1,312 $ 135 - $ 1,447 $ 1,000 $ 34
$ 1,034
Three months ended December 31, 2006 Three months ended December 31, 2005
32