Air Canada 2009 Annual Report Download - page 134

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2009 Air Canada Annual Report
134
Following is a classifi cation of fair value measurements recognized in the Consolidated Statement of Financial Position
using a fair value hierarchy that refl ects the signifi cance of the inputs used in making the measurements.
Fair value measurements at reporting date using:
December 31
2009
Quoted prices in
active markets
for identical
assets
(Level 1)
Signifi cant other
observable
inputs
(Level 2)
Signifi cant
unobservable
inputs
(Level 3)
Financial Assets
Held-for-trading securities
Cash equivalents
Short-term investments
Restricted cash in short-term investments
Deposits and other assets
Asset backed commercial paper
Derivative instruments
Interest rate swaps
$ 323
292
70
29
11
$ -
-
-
-
-
$ 323
292
70
-
11
$ -
-
-
29
-
Total $ 725 $ - $ 696 $ 29
Fair value measurements at reporting date using:
December 31
2009
Quoted prices in
active markets
for identical
assets
(Level 1)
Signifi cant other
observable
inputs
(Level 2)
Signifi cant
unobservable
inputs
(Level 3)
Financial Liabilities
Derivative instruments
Fuel derivatives
Foreign exchange derivatives
$ 31
4
$ -
-
$ 31
4
$ -
-
Total $ 35 $ - $ 35 $ -
Financial assets held by fi nancial institutions in the form of cash, restricted cash and collateral deposits for fuel derivatives have
been excluded from the fair value measurement classifi cation table above as they are not valued using a valuation technique.
Asset Backed Commercial Paper (“ABCP”)
The Corporation has $37 ($29 net of a fair value adjustment) in non-bank sponsored ABCP which has been recorded in
Deposits and other assets. The carrying value as at December 31, 2009 is based on a number of assumptions as to the
fair value of the investments including factors such as estimated cash fl ow scenarios and risk adjusted discount rates.
The assumptions used in estimating the fair value of the investments are subject to change, which may result in further
adjustments to non-operating results in the future. No adjustments to the carrying value were recorded during 2009.