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9.4 Cash flows for 2006 and 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 $ (74) $ 140 $ (140) $ (74) $ (20) $ 117 $ (117) $ (20)
Adjustments to reconcile to net cash provided by operations
Depreciation, amortization and obsolescence 493 21 - 514 404 18 -
422
(Gain) loss on sale of assets 6 - - 6 31 (4) -
27
Foreign exchange (gain) loss 6 - - 6 (83) - - (83)
Future income taxes (3) - - (3) 11 - -
11
Employee future benefit funding more than expense (228) - - (228) (74) - - (74)
Decrease (increase) in accounts receivable (81) 124 (115) (72) 176 (146) 157
187
Decrease (increase) in spare parts, materials and supplies 35 (4) - 31 (51) (13) - (64)
Increase (decrease) in accounts payable and accrued liabilities 30 (125) 115 20 (218) 215 (157) (160)
Increase (decrease) in advance ticket sales, net of restricted cash 103 - - 103 183 - -
183
Increase (decrease) in Aeroplan miles obligation (108) - - (108) (146) - - (146)
Non-controlling Interest - - 152 152 - - 131
131
Special charge for Aeroplan miles 102 - - 102 - - -
-
Allocation of corporate expenses 11 - - 11 21 - -
21
Aircraft lease payments (in excess of) less than rent expense (16) - - (16) 21 12 -
33
Other (65) 26 (12) (51) (59) (7) (14) (80)
211 182 - 393 196 192 -
388
Cash from (used for) financing activities
Issue by Air Canada of share capital
187
-
-
187
-
-
-
-
Issue of Jazz units - 218 - 218 - - -
-
Transfer of ACTS investments to ACE 673 - - 673 - - -
-
Transfer of Jazz investments to ACE 483 - 483 - - -
-
Transfer of Aeroplan investments to ACE - - - - 1,070
1,070
Acquisition promissory note paid by Jazz to ACE - (424) - (424) - - -
-
Jazz credit facility borrowings - 113 - 113 - - -
-
Aircraft-related borrowings 397 - - 397 404 - -
404
Cash management with related parties - - - - (4) - - (4)
Distributions paid to non-controlling interest - (86) - (86) - - -
-
Settlement of notes payable to ACE (140) - - (140) - - -
-
Reduction of long-term debt and capital lease obligations (264) (14) - (278) (351) (3) - (354)
Increase (decrease) in Air Canada indebtedness - - - - 5 (5) -
-
Other (1) - - (1) (5) (1) - (6)
1,335 (193) - 1,142 1,119 (9) -
1,110
Cash from (used for) investing activities
Short-term investments (496) - - (496) (250) - - (250)
Additions to capital assets (863) (25) - (888) (852) (16) - (868)
Reduction of note receivable from ACE 186 - - 186 - - -
-
Proceeds from sale of assets 40 - - 40 37 4 -
41
Decrease (increase) in amount receivable from Air Canada (137) 137 - - 137 (137) -
-
Cash management with related parties 32 - - 32 (59) - - (59)
Cash collateralization of letters of credit
4
-
-
4
(35)
-
-
(35)
(1,234) 112 - (1,122) (1,022) (149) - (1,171)
Increase (decrease) in cash and cash equivalents 312 101 - 413 293 34 - 327
Cash and cash equivalents, end of period $ 1,312 $ 135 - $ 1,447 $ 1,000 $ 34 -
$ 1,034
Year ended December 31, 2006 Year ended December 31, 2005
34