Air Canada 2012 Annual Report Download - page 3

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3
TABLE OF CONTENTS
1. Highlights ............................................................................................................................................................................................... 2
Message from the President and Chief Executive Officer .................................................................................................................. 4
Management’s Discussion and Analysis .................................................................................................................................................. 6
2.Introduction and Key Assumptions .................................................................................................................................................. 6
3.About Air Canada ................................................................................................................................................................................. 7
4.Strategy .................................................................................................................................................................................................. 8
5.Overview .............................................................................................................................................................................................. 14
6.Results of Operations – Full Year 2012 versus Full Year 2011 ............................................................................................... 16
7.Results of Operations – Fourth Quarter 2012 versus Fourth Quarter 2011 ........................................................................ 25
8.Fleet ...................................................................................................................................................................................................... 36
9.Financial and Capital Management ............................................................................................................................................... 39
9.1.Liquidity ..................................................................................................................................................................................... 39
9.2.Financial Position ..................................................................................................................................................................... 39
9.3.Adjusted Net Debt ................................................................................................................................................................... 40
9.4.Working Capital ....................................................................................................................................................................... 41
9.5.Consolidated Cash Flow Movements .................................................................................................................................. 42
9.6.Capital Expenditures and Related Financing Arrangements .......................................................................................... 43
9.7.Pension Funding Obligations ................................................................................................................................................. 44
9.8.Contractual Obligations ......................................................................................................................................................... 47
9.9.Share Information .................................................................................................................................................................... 48
10.Quarterly Financial Data .................................................................................................................................................................. 50
11.Selected Annual Information .......................................................................................................................................................... 52
12.Financial Instruments and Risk Management .............................................................................................................................. 53
13.Critical Accounting Estimates ......................................................................................................................................................... 56
14.Accounting Policies ........................................................................................................................................................................... 60
15.Off-Balance Sheet Arrangements ................................................................................................................................................... 63
16.Related Party Transactions .............................................................................................................................................................. 65
17.Sensitivity of Results ......................................................................................................................................................................... 66
18.Risk Factors ......................................................................................................................................................................................... 67
19.Controls and Procedures .................................................................................................................................................................. 77
20.Non-GAAP Financial Measures ....................................................................................................................................................... 78
21.Glossary ................................................................................................................................................................................................ 81
Statement of Management’s Responsibility for Financial Reporting ............................................................................................. 83
Independent Auditor’s Report ................................................................................................................................................................. 84
Consolidated Financial Statements and Notes ................................................................................................................................... 85
Officers and Directors ............................................................................................................................................................................ 148
Investor and Shareholder Information ............................................................................................................................................... 149
Official Languages at Air Canada ........................................................................................................................................................ 149
Corporate Profile ..................................................................................................................................................................................... 150