5. Financial expenses
Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
$ $ $ $
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Interest on long-term debt 84 78 168 156
Amortization of deferred
financing fees - 4 - 6
Interest income (4) (1) (7) (2)
Other 7 3 11 7
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87 84 172 167
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6. Income tax recovery In the second quarter of 2007, favourable tax adjustments of $22 million are included in income tax recovery, due to realized losses and to prospective reductions in income tax rates ($63 million in the three months ended June 30, 2006, which is related to the prospective reduction in the Canadian federal income tax rate).
In the six months ended June 30, 2007, favourable income tax adjustments of $30 million are included in income tax recovery, due to the revision of prior-period tax provisions, to realized losses and to prospective reductions in income tax rates ($85 million in the six months ended June 30, 2006, which is related to the settlement of prior-year income tax issues and to the prospective reduction in the Canadian federal income tax rate).
7. Mill closure elements provision The following table provides a reconciliation of the mill closure elements provision, which comprises, in most part, severance and other labour-related costs and contractual obligations, for the periods: Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
$ $ $ $
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Mill closure elements provision,
beginning of period 13 22 7 38
Mill closure elements incurred
during the period 12 - 20 -
Payments (13) (2) (15) (18)
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Mill closure elements provision,
end of period 12 20 12 20
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The Company expects to pay most of the balance of the provision for mill closure elements within the next twelve months.
8. Employee future benefits The following table provides total employee future benefit costs for the periods: Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
$ $ $ $
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Defined contribution pension plans 3 3 7 7
Defined benefit pension plans and
other benefits 40 36 77 73
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43 39 84 80
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9. Accumulated other comprehensive loss The following table provides the components of "Accumulated other comprehensive loss" in the consolidated balance sheets as at: June 30 December 31
2007 2006
$ $
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Foreign currency translation adjustment (375) (264)
Unrealized gains on derivative instruments
designated as cash flow hedges, net of taxes 20 -
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(355) (264)
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10. Comparative figures Certain comparative figures presented in the consolidated financial statements have been reclassified to conform to the current period presentation.
Contacts
-------- Investors:
Francesco Alessi
514 394-2341
Media and Others:
Denis Leclerc
514 394-3601
DATASOURCE: ABITIBI-CONSOLIDATED INC.
CONTACT: PRNewswire - - 07/24/2007
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