Air Canada 2007 Annual Report Download - page 34

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2007 Air Canada Annual Report
34
7. FINANCIAL AND CAPITAL MANAGEMENT
7.1 FINANCIAL POSITION
Our fi nancial position as at December 31, 2007 does not consolidate the fi nancial position of Jazz. The comparative
December 31, 2006 consolidated statement of fi nancial position included the following items related to Jazz:
■ Cash and cash equivalents of $135 million and other current assets of $109 million;
■ Long-lived assets of $239 million;
■ Current liabilities of $213 million;
■ Long-term debt of $115 million;
■ Non-controlling interest of $162 million; and
■ Other long-term liabilities of $71 million
As a result of the deconsolidation of Jazz, the Corporation recorded an adjustment of $82 million as a credit to contributed
surplus. This credit consists of the Corporation’s initial negative investment in Jazz of $78 million, which had not previously
reversed as none of the income of Jazz is distributed to Air Canada, and a future income tax credit of $4 million.
For comparative purposes, the following table and discussion provides the fi nancial position of Air Canada as at
December 31, 2007 and the fi nancial position of Air Canada (previously “Air Canada Services”), excluding the consolidation
of Jazz, as at December 31, 2006.
Condensed Statement of Financial Position ($ millions)
December 31,
2007
December 31,
2006
Assets
Cash, cash equivalents and short-term investments $ 1,239 $ 2,110
Other current assets 1,239 1,962
Current assets 2,478 4,072
Property and equipment 7,919 5,747
Intangible assets 952 1,185
Other assets 488 384
$ 11,837 $ 11,388
Liabilities
Current liabilities $ 2,956 $ 3,754
Long-term debt and capital leases 4,006 3,081
Pension and other benefi ts liabilities 1,824 1,867
Other long-term liabilities 424 544
9,210 9,246
Non-controlling interest 184 212
Shareholders’ equity 2,443 1,930
$ 11,837 $ 11,388