Air Canada 2012 Annual Report Download - page 103

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2012 Consolidated Financial Statements and Notes
103
4. PROPERTY AND EQUIPMENT
Aircraft and
flight
equipment
Buildings, and
leasehold
improvements
Ground and
other
equipment
Purchase
deposits,
including
capitalized
interest
Total
Year ended December 31, 2011
At January 1, 2011 $ 4,928 $ 545 $ 121 $ 35 $ 5,629
Additions 64 5 14 77 160
Reclassifications (20) 8 28 (16) –
Disposals (4) (9) – – (13)
Depreciation (622) (43) (23) – (688)
At December 31, 2011 $ 4,346 $ 506 $ 140 $ 96 $ 5,088
At December 31, 2011
Cost $ 5,929 $ 794 $ 295 $ 96 $ 7,114
Accumulated depreciation (1,583) (288) (155) – (2,026)
$ 4,346 $ 506 $ 140 $ 96 $ 5,088
Year ended December 31, 2012
At January 1, 2012 $ 4,346 $ 506 $ 140 $ 96 $ 5,088
Additions 86 57 18 282 443
Reclassifications 30 24 – (54) –
Disposals (22) – (1) – (23)
Depreciation (571) (42) (24) – (637)
At December 31, 2012 $ 3,869 $ 545 $ 133 $ 324 $ 4,871
At December 31, 2012
Cost $ 5,991 $ 879 $ 311 $ 324 $ 7,505
Accumulated depreciation (2,122) (334) (178) – (2,634)
$ 3,869 $ 545 $ 133 $ 324 $ 4,871
As at December 31, 2012, property and equipment includes finance leased assets including 19 aircraft (2011 – 19) with a net
book value of $177 (2011 – $238) and facilities with a net book value of $47 (2011 – $50).
Included in aircraft and flight equipment are 28 aircraft and 8 spare engines (2011 – 38 aircraft and 11 spare engines) which
are leased to Jazz (Note 16) and third parties with a cost of $371 (2011 – $463) less accumulated depreciation of $112
(2011 – $124) including accumulated impairment losses of $46 related to the fleet of A340-300 (2011 – $46) for a net book
value of $259 (2011 – $339). Depreciation expense for 2012 for this aircraft and flight equipment amounted to $50 (2011 –
$46).
Interest capitalized during 2012 amounted to $18 at an interest rate of 10.85% (2011 $4 at an interest rate of 12.16%).
Certain property and equipment are pledged as collateral as further described under the applicable debt instrument in Note 8.