Air Canada 2006 Annual Report Download - page 74

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Combined Consolidated Statement of Cash Flow
For the year ended December 31
(in millions – Canadian dollars) 2006 2005
Cash flows from (used for)
Operating
(note 1)
Loss for the period $ (74) $ (20)
Adjustments to reconcile to net cash provided by operations
Depreciation, amortization and obsolescence 514 422
Loss on sale of and provisions on assets 6 27
Foreign exchange (gain) loss 6 (83)
Future income taxes (3) 11
Employee future benefit funding more than expense (228) (74)
Decrease (increase) in accounts receivable (72) 187
Decrease (increase) in spare parts, materials and supplies 31 (64)
Increase (decrease) in accounts payable and accrued
liabilities
20
(160)
Increase (decrease) in advance ticket sales, net of
restricted cash
103
183
Increase (decrease) in Aeroplan Miles obligation (108) (146)
Non-controlling interest 152 131
Special charge for Aeroplan Miles note 20 102 -
Allocation of corporate expenses note 1 11 21
Aircraft lease payments (in excess of) less than rent
expense
(16)
33
Other (51) (80)
393 388
Financing
Issue by Air Canada of share capital note 1 187 -
Issue of Jazz units note 19 218 -
Transfer of ACTS investment to ACE note 1 673 -
Transfer of Jazz investment to ACE note 1 483 -
Transfer of Aeroplan investment to ACE note 1 - 1,070
Acquisition promissory note paid by Jazz to ACE note 19 (424) -
Jazz – Credit facility borrowings note 7 113 -
Aircraft related borrowings note 7 397 404
Cash management with related parties note 18 - (4)
Distributions paid to non-controlling interest (86) -
Settlement of notes payable to ACE note 1 (140) -
Reduction of long-term debt and capital lease obligations (278) (354)
Other (1) (6)
1,142 1,110
Investing
Short-term investments (496) (250)
Additions to capital assets (888) (868)
Reduction of note receivable from ACE note 1 186 -
Proceeds from sale of assets 40 41
Cash management with related parties 32 (59)
Cash collaterization of letters of credit 4 (35)
(1,122) (1,171)
Increase in cash and cash equivalents 413 327
Cash and cash equivalents, beginning of year 1,034 707
Cash and cash equivalents, end of year $ 1,447 $ 1,034
Cash and cash equivalents exclude Short-term investments of $798 as at December 31, 2006 ($302 as at December 31, 2005).
The accompanying notes are an integral part of the combined consolidated financial statements.
74