Air Canada 2012 Annual Report Download - page 109

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2012 Consolidated Financial Statements and Notes
109
(d) Other CDN dollar secured financings are fixed rate financings that are secured by certain assets with a carrying value of
$218, of which $165 relates to certain items of property and equipment and $53 relates to cash and cash equivalents
(2011 – $154 relates to certain items of property and equipment and $71 relates to cash and cash equivalents).
(e) Finance leases, related to facilities and aircraft, total $363 ($78 and US$286) ($426 ($80 and US$340) as at December 31,
2011). During 2012, the Corporation recorded interest expense on finance lease obligations of $40 (2011 – $46). The
carrying value of aircraft and facilities under finance leases amounted to $177 and $47 respectively (2011 – $238 and
$50).
Certain aircraft and other secured finance agreements contain collateral fair value tests. Under the tests the Corporation may
be required to provide additional collateral or prepay part of the financings. The maximum amount payable in 2013, assuming
the collateral is worth nil, is $378 (US$380). The maximum payable amount declines over time in relation to the outstanding
principal. Total collateral provided under the test for these aircraft as at December 31, 2012 is $20 (US$20) (2011 – $55
(US$54)), in the form of cash deposits included in Deposits and other assets.
Cash interest paid on Long-term debt and finance leases in 2012 by the Corporation was $287 (2011 – $281).
Refer to Note 16 for the Corporation’s principal and interest repayment requirements as at December 31, 2012.