Air Canada 2007 Annual Report Download - page 37

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Management’s Discussion and Analysis of Results and Financial Condition
37
7.4 CONSOLIDATED CASH FLOW MOVEMENTS
The following tables provide Air Canada’s consolidated cash fl ow movements for the periods indicated. Prior to May 24, 2007,
Air Canada had two reportable segments: Air Canada Services (now referred to as Air Canada) and Jazz. Segment information
was used to allow for the separate presentation of Air Canada’s fi nancial results as this segment was the primary focus of
the Air Canada shareholders. Effective May 24, 2007, Air Canada no longer consolidates the operations of Jazz.
($ millions)
Three months ended December 31, 2007 (1) Three months ended December 31, 2006
Air Canada Jazz Total Air Canada Jazz Total
Net cash provided by operating activities $ 44 $ - $ 44 $ (32 ) $ 41 $ 9
Changes in non-cash working capital (14 ) - (14 ) (127 ) (8 ) (135 )
Cash fl ows from (used for) operating activities 30 - 30 (159 ) 33 (126 )
Additions to capital assets (922 ) - (922 ) (206 ) (7 ) (213 )
Free cash fl ow (892 ) - (892 ) (365 ) 26 (339 )
Cash fl ows used for investing activities
(excluding additions to capital assets) (15 ) - (15 ) (137 ) - (137 )
Aircraft and facility related borrowings 821 - 821 76 - 76
Reduction of long-term debt and
capital lease obligations (199 ) - (199 ) (71 ) - (71 )
Other 20 - 20 803 (15 ) 788
Cash fl ows from (used for) fi nancing
activities
642
- 642 808 (15 ) 793
Net increase (decrease) in cash and
cash equivalents (265 ) - (265 ) 306 11 317
Net increase in short term investments 2 - 2 382 - 382
Net increase (decrease) in cash,
cash equivalents and short term investments $ (263 )
$ - $ (263 ) $ 688 $ 11 $ 699
(1) There was no consolidation of Jazz in the fourth quarter of 2007.
($ millions)
Year ended December 31, 2007 (1) Year ended December 31, 2006
Air Canada Jazz Total Air Canada Jazz Total
Net cash provided by operating activities $ 366 $ 69 $ 435 $ 123 $ 187 $ 310
Changes in non-cash working capital (4 ) (2 ) (6 ) 88 (5 ) 83
Cash fl ows from operating activities 362 67 429 211 182 393
Additions to capital assets (2,595 ) (11 ) (2,606 ) (863 ) (25 ) (888 )
Free cash fl ow (2,233 ) 56 (2,177 ) (652 ) 157 (495 )
Cash fl ows from
(used for) investing activities
(excluding additions to capital assets) 54 (137 ) (83 ) (371 ) 137 (234 )
Aircraft and facility related borrowings 1,914 - 1,914 397 - 397
Reduction of long-term debt and
capital lease obligations (504 ) - (504 ) (264 ) (14 ) (278 )
Other (16 ) (54 ) (70 ) 1,202 (179 ) 1,023
Cash fl ows from (used for) fi nancing
activities 1,394 (54 ) 1,340 1,335 (193 ) 1,142
Net increase (decrease) in cash and
cash equivalents (785 ) (135 ) (920 ) 312 101 413
Net increase (decrease) in short term
investments (86 ) - (86 ) 496 - 496
Net increase (decrease) in cash and cash
equivalents and short term investments $ (871 ) $ (135 ) $ (1,006 ) $ 808 $ 101 $ 909
(1) The 2007 results refl ect the change in accounting for Jazz whereby Jazz’s results from operations and fi nancial condition were consolidated by the Corporation only up
to May 24, 2007. There was no consolidation of Jazz in the third and fourth quarters of 2007.