Air Canada 2011 Annual Report Download - page 73

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2011 Management’s Discussion and Analysis
73
Operating expense, excluding the cost of ground packages at Air Canada Vacations and fuel expense, is reconciled to
operating expense as follows:
Fourth Quarter Full Year
(Canadian dollars in millions) 2011 2010 Change $ 2011 2010 Change $
GAAP operating expense $2,797 $2,601 $196 $11,433 $ 10,554 $879
Remove:
Cost of ground packages at Air Canada
Vacations (57) (49) (8) (307) (272) (35)
Operating expense, excluding fuel expense $2,740 $2,552 $188 $11,126 $ 10,282 $844
Remove:
Aircraft fuel (808) (640) (168) (3,375) (2,652) (723)
Operating expense, excluding fuel expense
and excluding the cost of ground packages
at Air Canada Vacations $1,932 $1,912 $20 $7,751 $ 7,630 $121
Adjusted Net Income (Loss) Per Share – Diluted
Air Canada uses adjusted net income (loss) per share – diluted to assess the performance of its business without the effects of
foreign exchange and exceptional items. Such measure is not a recognized measure for financial statement presentation under
GAAP, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other
public companies.
Fourth Quarter Full Year
(Canadian dollars in millions) 2011 2010 Change $ 2011 2010 Change $
Net income (loss) for the period attributable
to shareholders of Air Canada $(62) $87 $(149) $(255) $ (33) $(222)
Remove:
Foreign exchange (gain) loss (114) (136) 22 54 (184) 238
Provision adjustment for cargo provisions,
net – (46) 46 – (46) 46
Impairment charge on aircraft – 49 (49) – 49 (49)
Interest expense charge on repayment of
term credit facility – – – – 54 (54)
Adjusted net loss $(176) $(46) $(130) $(201) $ (160) $(41)
Adjusted weighted average number of
outstanding shares used in computing
diluted loss per share (in millions) 277 278 (1) 278 278 –
Adjusted net loss per share – diluted $(0.64) $(0.17) $(0.47) $(0.72) $ (0.58) $(0.14)