Air Canada 2014 Annual Report Download - page 104

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104 2014 Annual Report
Goodwill is tested at least annually for impairment. For the purpose of impairment testing, goodwill is tested
for impairment using the fair value less cost to sell model at the operating segment level. Air Canada is
managed as one operating segment based on how financial information is produced internally for the purposes
of making operating decisions.
In assessing the goodwill for impairment, the Corporation compares the aggregate recoverable amount
consisting of the sum of its quoted equity market capitalization and the fair value of its debt to the carrying
value of its net assets excluding long-term debt. An impairment charge is recognized to the extent that the
carrying value exceeds the recoverable amount.
No impairment charges have arisen as a result of the reviews performed as at December 31, 2014 and 2013.
Reasonably possible changes in key assumptions would not cause the recoverable amount of goodwill to fall
below the carrying value.
7. DEPOSITS AND OTHER ASSETS
2014 2013
Restricted cash Note 2R $ 192 $ 190
Aircraft related deposits (a) 107 84
Aircraft lease payments in excess of rent expense Note 2V 82 65
Prepayments under maintenance agreements Note 2J 73 64
Share forward contracts Note 17 60 36
Deposit related to pension and benefits agreements Note 19 - 9
Other deposits 28 29
Other 14 17
$ 556 $ 494
(a) Represents the amount of deposits with lessors for the lease of aircraft and flight simulators.
6. GOODWILL