Air Canada 2012 Annual Report Download - page 41

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2012 Management’s Discussion and Analysis
41
9.4. Working Capital
The following table provides information on Air Canada’s working capital balances at December 31, 2012 and at December 31, 2011.
(Canadian dollars in millions) December 31, 2012 December 31, 2011 Change $
Cash and short-term investments $2,026 $2,099 $(73)
Accounts receivable 550 712 (162)
Other current assets 478 516 (38)
Accounts payable and accrued liabilities (1,161) (1,175) 14
Advance ticket sales (1,599) (1,554) (45)
Current portion of long-term debt and finance leases (506) (424) (82)
Net working capital $(212) $174 $(386)
The net negative working capital of $212 million at December 31, 2012 represented a deterioration of $386 million from
December 31, 2011. This decline in net working capital was largely due to the impact of capital expenditures of $462 million,
pension funding payments of $433 million, and an increase in the current portion of long-term debt reflecting a higher level of
debt maturities in 2013. Partly offsetting these decreases was the impact of positive cash flows from operating activities of
$649 million. The decrease in Accounts receivable of $162 million was mainly due to the reporting of accounts receivable
from Aveos net against related accounts payable following Aveos’ closure in the first quarter of 2012, as well as decreases in
tax- related and other receivables.