Air Canada 2009 Annual Report Download - page 36

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2009 Air Canada Annual Report
36
10. FINANCIAL AND CAPITAL MANAGEMENT
10.1 FINANCIAL POSITION
The following table provides a condensed statement of fi nancial position of Air Canada as at December 31, 2009 and as at
December 31, 2008.
(Canadian dollars in millions) December 31, 2009 December 31, 2008
Assets
Cash, cash equivalents and short-term investments $ 1,407 $ 1,005
Other current assets 1,244 1,398
Current assets 2,651 2,403
Property and equipment 6,369 7,469
Intangible assets 916 997
Deposits and other assets 470 495
$ 10,406 $ 11,364
Liabilities
Current liabilities $ 3,002 $ 3,678
Long-term debt and capital leases 4,054 4,691
Pension and other benefi ts liabilities 1,163 1,585
Other long-term liabilities 540 458
8,759 10,412
Non-controlling interest 201 190
Shareholders’ equity 1,446 762
$ 10,406 $ 11,364
Movements in current assets and liabilities are described below under “Working Capital”.
Property and equipment amounted to $6,369 million at December 31, 2009, a reduction of $1,100 million from
December 31, 2008. The reduction was mainly due to the impact of depreciation expense of $602 million in 2009, the
sale of two Airbus A340 aircraft and the sale and leaseback of three Boeing 777 aircraft partly offset by additions to
capital assets.
Long-term debt and capital leases, including the current portion, amounted to $4,522 million at December 31, 2009, a
decrease of $832 million from December 31, 2008. The decrease in long-term debt and capital leases from December
31, 2008 was mainly due to the appreciation of the Canadian dollar and the resulting favourable impact of $702 million
on Air Canada’s U.S. dollar debt and capital leases. Borrowings of $926 million, including those under the Credit
Facility described in section 6 of this MD&A, were more than offset by long-term debt and capital lease repayments of
$1,237 million. In addition, the sale and leaseback of a Boeing 777 aircraft was accounted for as a capital lease which
resulted in an increase to total long-term debt of $158 million.
The decline in pension and other benefi ts liabilities of $422 million from December 31, 2008 was primarily due to
pension funding of $389 million in 2009. Refer to section 10.6 of this MD&A for a discussion related to Air Canada’s pension
funding obligations.
Shareholders’ equity increased by $684 million due mainly to comprehensive income of $422 million and the equity
offering completed in October 2009, which raised net proceeds of $249 million.