Air Canada 2006 Annual Report Download - page 68

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Operating Income excluding the Special Charge for Aeroplan Miles and the Special Charge for Labour
Restructuring
The Air Canada Services segment uses operating income excluding the special charges for Aeroplan miles and
labour restructuring to assess the operating performance of its ongoing business without the effects of these
special charges. These items are excluded from Air Canada Services' segment results as they could potentially
distort the analysis of trends in business performance. The special charge for Aeroplan miles is the full and final
settlement between the parties in connection with Air Canada's obligations for the redemption of pre-2002
miles. The special charge for labour restructuring is the total cost of the 20 percent non-unionized workforce
reduction plan announced in February 2006. The special charges for Aeroplan miles and labour restructuring
are not reflective of the underlying financial performance of the Air Canada Services segment from ongoing
operations.
The following measure is not a recognized measure for financial statement presentation under Canadian GAAP
and does not have a standardized meaning and is therefore not likely to be comparable to similar measures
presented by other public companies.
Operating income excluding the special charge for Aeroplan miles and the special charge for labour
restructuring is reconciled to operating income as follows:
($ millions) Q4 2006 Q4 2005 Change 2006 2005 Change
Air Canada Services
GAAP operating income (loss) (5) (91) 86 114 191 (77)
Add back:
Special charge for Aeroplan miles - - - 102 -
102
Operating income (loss), excluding the special charge for
Aeroplan miles
(5) (91) 86 216 191
25
Add back:
Special charge for labour restructuring (8) - (8) 20 -
20
Operating income (loss), excluding the special charges for
Aeroplan miles and labour restructuring (13) (91) 78 236 191
45
($ millions) Q4 2006 Q4 2005 Change 2006 2005 Change
Consolidated total
GAAP operating income (loss) 29 (57) 86 259 318 (59)
Add back:
Special charge for Aeroplan miles - - - 102 -
102
Operating income (loss), excluding the special charge for
Aeroplan miles
29 (57) 86 361 318
43
Add back:
Special charge for labour restructuring (8) - (8) 20 -
20
Operating income (loss), excluding the special charges for
Aeroplan miles and labour restructuring 21 (57) 78 381 318
63
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