Air Canada 2010 Annual Report Download - page 135

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Consolidated Financial Statements and Notes
135
Following is a classification of fair value measurements recognized in the Consolidated Statement of Financial Position
using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
Fair value measurements at reporting date using:
December 31
2010
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Financial Assets
Held-for-trading securities
Cash equivalents
Short-term investments
Deposits and other assets
Asset backed commercial paper
Derivative instruments
Fuel deriatives
Share forward contracts
Interest rate swaps
$ 497
1,102
29
33
9
13
$ -
-
-
-
-
-
$ 497
1,102
-
33
9
13
$ -
-
29
-
-
-
Total $ 1,683 $ - $ 1,654 $ 29
Fair value measurements at reporting date using:
December 31
2010
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Financial Liabilities
Derivative instruments
Foreign exchange derivatives $ 3 $ - $ 3 $ -
Total $ 3 $ - $ 3 $ -
Financial assets held by financial institutions in the form of cash and restricted cash have been excluded from the fair value
measurement classification 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. There is a limited private market to sell certain of these investments however management does
not believe that this market qualifies as an active market and therefore has estimated the fair value of these investments
using valuation techniques. The carrying value as at December 31, 2010 is based on a number of assumptions as to the
fair value of the investments including factors such as estimated cash flow 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 2010.