Air Canada 2013 Annual Report Download - page 45

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2013 Management’s Discussion and Analysis
45
9.4. Working Capital
The following table provides information on Air Canada’s working capital balances as at December 31, 2013 and as at December 31,
2012.
(Canadian dollars in millions) December 31, 2013 December 31, 2012 $ Change
Cash, cash equivalents and short-term investments $2,208 $1,973 $235
Accounts receivable 589 550 39
Other current assets 491 478 13
Accounts payable and accrued liabilities (1,129) (1,161) 32
Advance ticket sales (1,687) (1,599) (88)
Current portion of long-term debt and finance leases (374) (499) 125
Net working capital $98 $(258) $356
The net positive working capital of $98 million at December 31, 2013 represented an improvement of $356 million from
December 31, 2012. This increase in net working capital was largely due to the impact of positive cash from operations of
$731 million recorded in 2013, an improvement of $88 million over 2012. In addition, the financing activities relating to the
new senior secured notes and the new senior secured credit facility, as further described in section 9.8 of this MD&A,
increased unrestricted cash balances by $112 million. Additions to capital assets which amounted to $962 million, or
$367 million net of the financing drawn upon the delivery of four Boeing 777-300ER aircraft received in 2013, partially offset
the working capital improvements described above.
9.5. Consolidated Cash Flow Movements
The following table provides the cash flow movements for Air Canada for the periods indicated:
Fourth Quarter Full Year
(Canadian dollars in millions) 2013 2012 $ Change 2013 2012 $ Change
Net cash flows from operating activities $68 $ 70 $ (2) $ 731 $ 643 $ 88
Proceeds from borrowings 304 – 304 1,973 132 1,841
Reduction of long-term debt and finance lease
obligations (238) (156) (82) (1,646) (442) (1,204)
Issue of common shares, net 8 – 8 14 – 14
Shares purchased for cancellation – (5) 5 – (5) 5
Other – – – (15) (16) 1
Net cash flows from (used in) financing activities 74 (161) 235 326 (331) 657
Short-term investments 59 137 (78) (210) 27 (237)
Additions to property, equipment and intangible assets (344) (91) (253) (962) (444) (518)
Proceeds from sale of assets 35 31 4 70 50 20
Other 46 (12) 58 41 32 9
Net cash flows from (used in) investing activities (204) 65 (269) (1,061) (335) (726)
Decrease in cash and cash equivalents (62) (26) (36) (4) (23) 19
Cash and cash equivalents, beginning of period 812 780 32 754 777 (23)
Cash and cash equivalents, end of period $750 $ 754 $ (4) $ 750 $ 754 $ (4)