Air Canada 2014 Annual Report Download - page 115

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115
2014 Consolidated Financial Statements and Notes 115
2014 2013
Proceeds from contractual commitments (a) $ 89 $ 107
Deferred income tax Note 12 49 49
Collateral held in leasing arrangements and other deposits 23 29
Aircraft rent in excess of lease payments Note 2V 22 27
Long-term employee liabilities 20 25
Other Note 10(b) 110 138
$ 313 $ 375
(a) Proceeds from contractual commitments represent non-refundable proceeds received, net of related costs
and deposits, in consideration of various contractual commitments and will be recognized as reductions in
the cost of those contractual commitments when incurred.
12. INCOME TAXES
INCOME TAX EXPENSE
2014 2013
Current income tax recovery in respect of prior years $ - $ (8)
Deferred income tax expense - -
INCOME TAX RECOVERY $ - $ (8)
The income tax expense (recovery) differs from the amount that would have resulted from applying the
statutory income tax rate to income before income tax expense as follows:
2014 2013
Income before income taxes $ 105 $ 2
Statutory income tax rate based on combined federal and provincial rates 26.81% 26.57%
INCOME TAX EXPENSE BASED ON STATUTORY TAX RATES 28 1
EFFECTS OF:
Non-taxable portion of capital (gains) losses 21 (3)
Non-deductible expenses 13 11
Tax rate changes on deferred income taxes (13) (6)
Recognition of previously unrecognized deferred income tax assets (53) (9)
Adjustment in respect of current income tax of prior years -(8)
Other 4 6
INCOME TAX RECOVERY $ - $ (8)
The applicable statutory tax rate is 26.81% (2013 – 26.57%). The Corporation’s applicable tax rate is the
Canadian combined rates applicable in the jurisdictions in which the Corporation operates. The increase is
mainly due to changes in the level of activity by province.
11. OTHER LONG-TERM LIABILITIES