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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Post by PabloLafortuneon Aug 19, 2022 7:31pm
281 Views
Post# 34908698

Other Assets and Liabilities - non current

Other Assets and Liabilities - non current

So in this 2nd part, I turn my attention to non current "Other" assets and Liabilities (incl. provisions) beyond one year. These won't affect cash in the next 12 months but it may after that. Here its worth to look into the detail of what they are. 

The total of these other assets is $1.207B and the total of the liabilities is $1.617B.  Big figures actually.  First thing we notice is quite a bit - $570M - are back to back related to the sale of C series and CRJ businesses.  Something like Bombardier owes or is owed these figures from 3rd parties which are in turn owed to or from Bombardier by Airbus and MHI. I think its safe to remove these from the non current other figures. 

That leaves us with $637M in other non current assets and $1047M in other non current liabilities. 

The next thing we notice are lease liabilities of $346M and Govt refundable advances of $165M (excluding the portion that is back to back with Airbus Canada or whatever its called now). These are other forms of financing (I always include these in net debt but not everybody does) so in my view, we can safely remove this total of $511M from the #s as well (ideally they'd be a separate line item but there are so many already!!).  PS - so much for the narrative that Bombardier is subsidized by the government).

That leaves us with $637M in other non current assets and $536M in other non current liabilities. Is there a point in digging deeper here? I don't think so. 

Bottom line, Bombardier's other assets and liabilities both current and non current are perfectly normal for a company of this size IMO.  There is nothing to see or worry about here.  

Worth to review every quarter of course but probably easily stricken from a balance sheet review to focus on the other line items.  In fact, you can't see this level of detail with others and I would argue the notes could safely be removed from the quartelry statements if not the audited statements (I'd like to see other and other financial and provision combined but list the lease and govt (net) liabilities separately as these are sort of like long term debt).*


* (the LTD otoh is only included in the annual #s even though it would be very useful if they were listed in the quarterlies as well esp. that Bombardier has started repaying hte debt). 

Cheers. 

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