Air Canada 2010 Annual Report Download - page 84
Download and view the complete annual report
Please find page 84 of the 2010 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
 |
 |
2010 Air Canada Annual Report
84
20. NON-GAAP FINANCIAL MEASURES
EBITDAR
EBITDAR (earnings before interest, taxes, depreciation and amortization, and aircraft rent) is a non-GAAP financial measure
commonly used in the airline industry to view operating results before depreciation and amortization, and aircraft rent
as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other
assets. EBITDAR is not a recognized measure for financial statement presentation under Canadian GAAP and does not
have a standardized meaning and is therefore not likely to be comparable to similar measures presented by other public
companies.
EBITDAR (before a net reduction of $46 million to a provision for cargo investigations) and EBITDAR for Air Canada are
reconciled to operating income (loss) as follows:
(Canadian dollars in millions)
Fourth Quarter Full Year
2010 2009 Change $ 2010 2009 Change $
GAAP operating income (loss) before a
provision adjustment for cargo investigations,
net
$ 85
$ (83)
$ 168
$ 361
$ (316)
$ 677
Add back:
Aircraft rent 84 85 (1) 346 335 11
Depreciation and amortization 165 165 - 679 660 19
EBITDAR before a provision adjustment for
cargo investigations, net (1)
$ 334
$ 167
$ 167
$ 1,386
$ 679
$ 707
Add back:
Provision adjustment for cargo investigations,
net 46 - 46 46 - 46
EBITDAR $ 380 $ 167 $ 213 $ 1,432 $ 679 $ 753
(1) In the first quarter of 2008, Air Canada recorded a provision for cargo investigations of $125 million. In the fourth quarter of 2010, Air Canada recorded a net reduction
of $46 million to this provision.
Operating expense excluding fuel expense
Air Canada uses operating expense excluding fuel expense to assess the operating performance of its ongoing business
without the effects of fuel expense as it could potentially distort the analysis of trends in business performance. Fuel
expense fluctuates widely depending on many factors including international market conditions, geopolitical events and
the Canada/U.S. exchange rate, and excluding this expense from GAAP results analysis allows Air Canada to compare its
operating performance on a consistent basis. The following measure is not a recognized measure for financial statement
presentation under Canadian GAAP and does not have a standardized meaning and is therefore not likely to be comparable
to similar measures presented by other public companies.
Operating expense, excluding fuel expense, for Air Canada is reconciled to operating expense as follows:
(Canadian dollars in millions)
Fourth Quarter Full Year
2010 2009 Change $ 2010 2009 Change $
GAAP operating expense $ 2,531 $ 2,431 $ 100 $ 10,425 $ 10,055 $ 370
Remove:
Aircraft fuel (640) (601) (39) (2,652) (2,448) (204)
Operating expense, excluding fuel expense $ 1,891 $ 1,830 $ 61 $ 7,773 $ 7,607 $ 166