Air Canada 2007 Annual Report Download - page 83

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Consolidated Financial Statements and Notes
83
CONSOLIDATED STATEMENT OF CASH FLOW
For the year ended December 31
(Canadian dollars in millions)
2007* 2006
(Note 3)
Cash fl ows from (used for)
Operating
Net income for the year $ 429 $ (74 )
Adjustments to reconcile to net cash from operations
Depreciation, amortization and obsolescence 557 514
Loss (gain) on disposal of assets (19 ) 6
Foreign exchange loss (gain) (387 ) 6
Future income taxes 174 (3 )
Excess of employee future benefi t funding over expense (205 ) (228 )
Decrease in Aeroplan miles obligation (79 ) (108 )
Non-controlling interest 71 152
Special charge for Aeroplan miles Note 22 - 102
Allocation of corporate expenses Note 3 - 11
Aircraft lease payments in excess of rent expense (14 ) (16 )
Capitalized interest (108 ) (61 )
Changes in non-cash working capital balances (6 ) 83
Other 16 9
429 393
Financing
Issue by Air Canada of share capital Note 3 - 187
Issue of Jazz units Note 21 - 218
Transfer of ACTS investment to ACE Note 3 - 673
Transfer of Jazz investment to ACE Note 3 - 483
Promissory note paid by Jazz to ACE Note 21 - (424 )
Jazz – Credit facility borrowings Note 8 - 113
Aircraft and facility related borrowings Note 8 1,914 397
Settlement of notes payable to ACE Note 3 - (140 )
Distributions paid to non-controlling interest (54 ) (86 )
Reduction of long-term debt and capital lease obligations (504 ) (278 )
Other Notes 8 & 20 (16 ) (1 )
1,340 1,142
Investing
Short-term investments 86 (496 )
Additions to capital assets (2,606 ) (888 )
Reduction of note receivable from ACE - 186
Proceeds from sale of assets Note 4 119 40
Deconsolidation of Jazz cash Note 1 (138 ) -
Cash management with related parties Note 19 (1 ) 32
Funding of ACTS Aero letter of credit Note 20 (101 ) -
Purchase of Air Canada Vacations Note 1 (10 ) -
Other Note 17 (38 ) 4
(2,689 ) (1,122 )
Increase (decrease) in cash and cash equivalents (920 ) 413
Cash and cash equivalents, beginning of year 1,447 1,034
Cash and cash equivalents, end of year $ 527 $ 1,447
* Effective May 24, 2007, the results and fi nancial position of Jazz are not consolidated within Air Canada (Note 1).
Cash and cash equivalents exclude Short-term investments of $712 as at December 31, 2007 ($798 as at December 31, 2006).
The accompanying notes are an integral part of the consolidated fi nancial statements.