Air Canada 2009 Annual Report Download - page 103

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Consolidated Financial Statements and Notes
103
recognized in Depreciation and amortization over the term of the lease. The lease is accounted for as a capital lease
with a 12 year term, with monthly lease payments.
• The Corporation sold two A340 aircraft for proceeds of $91 with a book value of $93, resulting in a loss on sale of
$2. The Corporation made a repayment of $82 for the associated debt.
• The Corporation entered into a sale-leaseback transaction which closed during Quarter 4 2009 for three Boeing 777
aircraft, which were originally delivered in 2007 and debt fi nanced. The proceeds from the transaction of $380 were
used to repay the outstanding principal of $273. The Corporation recorded a charge of $8 in interest expense for this
transaction and a loss on sale of the aircraft of $24. The leases are accounted for as operating leases with a 12 year
term, with monthly lease payments.
During 2008:
• The Corporation received delivery of eight Boeing 777 aircraft. Three aircraft were fi nanced with guarantee support
from EXIM (Note 6). Five of the aircraft were fi nanced under sale-leaseback transactions with proceeds of $708. The
resulting gain on sale of $81 was deferred and is being recognized as a reduction to Aircraft rent expense over the
term of the leases. The leases are accounted for as operating leases with 12 year terms, paid monthly.
• The Corporation recorded an impairment charge of $38 on its fl eet of B767-200 aircraft due to the revised retirement
date of the aircraft.
• The Corporation sold six Dash-8 aircraft for proceeds of $10 with a book value of $8, resulting in a gain on sale of $2.
• The Corporation sold an A319 aircraft for proceeds of $23 with a book value of $21, resulting in a gain on sale of $2.