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3. Capital Assets 2002 Accumulated Net Book Cost Depreciation Value $ $ $ Computer hardware and software 1,240 620 620 Leasehold improvements 23,212 723 22,489 Machinery, equipment, furniture and fixtures 1,850 571 1,279 Vehicles 4,542 1,656 2,886 Construction in progress 17,220 — 17,220 48,064 3,570 44,494 2001 Accumulated Net Book Cost Depreciation Value $ $ $ Computer hardware and software 918 409 509 Leasehold improvements 4,337 109 4,228 Machinery, equipment, furniture and fixtures 1,476 414 1,062 Vehicles 4,291 1,173 3,118 Construction in progress 24,672 — 24,672 35,694 2,105 33,589 4. Organization Costs 2002 2001 $ $ Organization costs 3,290 3,290 Accumulated amortization (3,199) (2,102) 91 1,188 5. Long-Term Debt 2002 2001 $ $ Halifax Regional Municipality deed transfer tax loan, unsecured, non-interest bearing, repayable in monthly instalments of $5,633. 140 208 Halifax Regional Municipality repayable contribution, unsecured, non-interest bearing, repaid in full on April 1, 2002. — 200 Canadian Imperial Bank of Commerce demand instalment loan, bearing interest at prime rate less 70 basis points, repayable in monthly instalments of $50,000. 2,500 — Transport Canada non-interest bearing debt, secured by a general security agreement, repayable in annual instalments of $1,298,000 commencing January 1, 2003 through January 1, 2006. 5,192 5,192 7,832 5,600 Current portion of long-term debt 1,965 268 5,867 5,332 Principal repayments required in each of the next five years are approximately as follows: 2003 $ 1,965 2004 1,965 2005 1,903 2006 1,899 2007 100 The Authority has authorized credit facilities with the Canadian Imperial Bank of Commerce for $27.0 million, which, in the event of default, will be secured by an Agreement containing a fixed mortgage by way of sublease of the Authority’s interest in the lease with Transport Canada, and a security interest in all of the other assets of the Authority. This security is not registered, recorded or filed in any public registry until an event of default has occurred. 16
notes to financial statements (cont’d.) December 31, 2002 (tabular amounts in thousands of dollars) The credit facilities consist of an operating line of credit to a maximum of $3.0 million bearing interest at prime rate less 70 basis points. A demand instalment loan to finance construction costs is available to a maximum of $24.0 million and bears interest at prime rate less 65 basis points. The Authority has begun to draw on these credit facilities to finance certain capital expenditures. 6. Deferred Contributions Related to Capital Assets Deferred contributions represent the unspent balance of contributions received from Transport Canada to fund capital asset expenditures. 2002 2001 $ $ Opening balance — 1,830 Contributions received from Transport Canada — 6,000 Less: amounts applied to capital asset expenditures — (7,830) — — 7. Airport Improvement Fees On January 1, 2001, the Authority implemented an AIF of $10 per local boarded passenger to fund the cost of a major capital program. These fees are collected by the air carriers (for a fee of 8% of the amount collected) under an agreement between the Authority, the Air Transport Association of Canada, and the air carriers serving Halifax <strong>International</strong> Airport. Under the agreement, AIF revenues may only be used to pay for the capital and related financing costs of airport infrastructure as jointly agreed with air carriers operating at the airport. A summary of the AIF collected and capital and related financing expenditures are as follows: 2002 2001 $ $ AIF revenue (net): AIF revenue, net of bad debts 9,459 9,108 AIF collection costs (764) (780) 8,695 8,328 Expenditures: Centre core retail expansion 4,665 459 <strong>International</strong> and domestic arrivals expansion 3,088 10,553 Water supply upgrade 941 — Passenger terminal building and airside infrastructure 861 — Airside access lots 708 6,767 Other 685 — Passenger loading bridge 674 — Pyritic slate treatment facility 567 6,045 Replace approach lighting 34 918 12,223 24,742 Excess of expenditures over AIF revenue (3,528) (16,414) Excess of expenditures over AIF revenue, beginning of year (16,414) — Excess of expenditures over AIF revenue, end of year (19,942) (16,414) Net assets of the Authority as at December 31 are as follows: 2002 2001 $ $ Net assets provided by airport improvement fees 17,023 8,328 Net assets provided by other operations 17,628 12,799 34,651 21,127 17 8. Commitments Transfer agreement Effective February 1, 2000, the Authority signed a 60-year ground lease with Transport Canada (the “Landlord”) which provides for the Authority to lease the Halifax
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Page 3 and 4: a journey to new heights Halifax In
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Page 19 and 20: corporate governance Halifax Intern
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International

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