Air Canada 2008 Annual Report Download - page 132

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2008 Air Canada Annual Report
132
15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Summary of Financial Instruments
Carrying Amounts
December31,2008
December31,
2007
Financial instruments classification
Held for
trading
Held to
maturity
Loans and
receivables
Liabilitiesat
amortized
cost Total
Financial Assets
Cash and cash equivalents $ 499 $ - $ - $ - $ 499 $ 527
Short-term investments 506 - - - 506 712
Restricted cash 45 - - - 45 124
Accounts receivable - - 702 - 702 750
Collateral deposits for fuel derivatives 328 - - - 328 -
Deposits and other assets
Restricted cash 65 - - - 65 84
Asset backed commercial paper 29 - - - 29 29
Aircraft related and other deposits - 323 - - 323 309
Derivative instruments
Fuel derivatives - - - - - 10
Foreign exchange derivatives 64 - - - 64 -
Interest rate swaps 21 - - - 21 7
$ 1,557 $ 323 $ 702 $ - $ 2,582 $ 2,552
FinancialLiabilities
Accounts payable $ - $ - $ - $ 1,440 $ 1,440 $ 1,102
Current portion of long-term debt
and capital leases - - - 663 663 413
Long-term debt and capital leases - - - 4,691 4,691 4,006
Derivative instruments
Fuel derivatives (1) 15 - - - 15 -
Foreign exchange derivatives - - - - - 124
Interest rate swaps - - - - - 2
$ 15 $ - $ - $ 6,794 $ 6,809 $ 5,647
(1) The fuel derivatives above relate to fuel derivatives not designated under fuel hedge accounting. Fuel derivatives under hedge accounting have a fair value of $405 in favour of
the counterparties (2007 - $67 in favour of the Corporation) and are described further below.
There have been no changes in classification of financial instruments since December 31, 2007, other than the designation
or de-designation of fuel derivatives.
For cash flow purposes, the Corporation may settle, from time to time, certain short-term investments prior to their
original maturity. For this reason, these financial instruments do not meet the criteria of held to maturity and are therefore
designated as held for trading. They are recorded at fair value with changes in fair value recorded in Interest income.