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RELATED PARTY RELATIONSHIPS
 12 Months Ended
Mar. 31, 2018
Related Party [Abstract]  
RELATED PARTY RELATIONSHIPS
RELATED PARTY RELATIONSHIPS
The following tables include principal investments which, in aggregate, significantly impact the results or assets of the Company:

Investments in subsidiaries consolidated in the Company’s financial statements:
  
 
 
% equity
 
 
% equity

 
 
 
 
interest

 
interest

Name
 
Country of incorporation
 
2018

 
2017

AACE Vietnam Limited Liability Company(1)
 
Vietnam
 
100.0
%
 
50.0
%
CAE Kuala Lumpur Sdn Bhd(1)
 
Malaysia
 
100.0
%
 
50.0
%
Asian Aviation Centre of Excellence (Singapore) Pte Ltd(1)
 
Singapore
 
100.0
%
 
50.0
%
CAE (UK) plc
 
United Kingdom
 
100.0
%
 
100.0
%
CAE (US) Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Aircrew Training Services plc
 
United Kingdom
 
76.5
%
 
76.5
%
CAE Australia Pty Ltd.
 
Australia
 
100.0
%
 
100.0
%
CAE Aviation Services Pte Ltd.
 
Singapore
 
100.0
%
 
100.0
%
CAE Aviation Training B.V.
 
Netherlands
 
100.0
%
 
100.0
%
CAE Aviation Training Chile Limitada
 
Chile
 
100.0
%
 
100.0
%
CAE Aviation Training Peru S.A.
 
Peru
 
100.0
%
 
100.0
%
CAE Brunei Multi Purpose Training Centre Sdn Bhd
 
Brunei
 
60.0
%
 
60.0
%
CAE Center Amsterdam B.V.
 
Netherlands
 
100.0
%
 
100.0
%
CAE Center Brussels N.V.
 
Belgium
 
100.0
%
 
100.0
%
CAE Centre Copenhagen A/S
 
Denmark
 
100.0
%
 
100.0
%
CAE Centre Hong Kong Limited
 
Hong Kong
 
100.0
%
 
100.0
%
CAE Centre Oslo AS
 
Norway
 
100.0
%
 
100.0
%
CAE Centre Stockholm AB
 
Sweden
 
100.0
%
 
100.0
%
CAE CFT B.V.
 
Netherlands
 
100.0
%
 
100.0
%
Investments in subsidiaries consolidated in the Company’s financial statements (continued):
  
 
 
% equity
 
 
% equity

 
 
 
 
interest

 
interest

Name
 
Country of incorporation
 
2018
 
2017
CAE CFT Korea Ltd.
 
Korea
 
100.0
%
 
100.0
%
CAE Civil Aviation Training Solutions, Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Electronik GmbH
 
Germany
 
100.0
%
 
100.0
%
CAE Euroco S.à r.l.
 
Luxembourg
 
—

 
100.0
%
CAE Flight & Simulator Services Sdn. Bhd.
 
Malaysia
 
100.0
%
 
100.0
%
CAE Flight Training Center Mexico, S.A. de C.V.
 
Mexico
 
100.0
%
 
100.0
%
CAE Global Academy Évora, SA
 
Portugal
 
100.0
%
 
100.0
%
CAE Healthcare Canada Inc.
 
Canada
 
100.0
%
 
100.0
%
CAE Healthcare, Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Holdings Limited
 
United Kingdom
 
100.0
%
 
100.0
%
CAE India Private Limited
 
India
 
100.0
%
 
100.0
%
CAE Integrated Enterprise Solutions Australia Pty Ltd.
 
Australia
 
100.0
%
 
100.0
%
CAE International Holdings Limited
 
Canada
 
100.0
%
 
100.0
%
CAE Luxembourg Acquisition S.à r.l.
 
Luxembourg
 
100.0
%
 
100.0
%
CAE Luxembourg Financing S.à r.l.
 
Luxembourg
 
—

 
100.0
%
CAE Maritime Middle East LLC
 
United Arab Emirates
 
49.0
%
 
49.0
%
CAE Middle East L.L.C.
 
United Arab Emirates
 
49.0
%
 
49.0
%
CAE Military Aviation Training Inc.
 
Canada
 
100.0
%
 
100.0
%
CAE New Zealand Pty Ltd.
 
New Zealand
 
100.0
%
 
100.0
%
CAE North East Training Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Oxford Aviation Academy Amsterdam B.V.
 
Netherlands
 
100.0
%
 
100.0
%
CAE Oxford Aviation Academy Phoenix Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Services Italia S.r.l.
 
Italy
 
100.0
%
 
100.0
%
CAE Servicios Globales de Instrucción de Vuelo (España), S.L.
 
Spain
 
100.0
%
 
100.0
%
CAE Shanghai Company, Limited
 
China
 
100.0
%
 
100.0
%
CAE SimuFlite Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Simulation Technologies Private Limited
 
India
 
100.0
%
 
100.0
%
CAE Simulator Services Inc.
 
Canada
 
100.0
%
 
100.0
%
CAE Singapore (S.E.A.) Pte Ltd.
 
Singapore
 
100.0
%
 
100.0
%
CAE South America Flight Training do Brasil Ltda.
 
Brazil
 
100.0
%
 
100.0
%
CAE STS Limited
 
United Kingdom
 
100.0
%
 
100.0
%
CAE Training & Services Brussels NV
 
Belgium
 
100.0
%
 
100.0
%
CAE Training & Services UK Ltd.
 
United Kingdom
 
100.0
%
 
100.0
%
CAE Training Norway AS
 
Norway
 
100.0
%
 
100.0
%
CAE USA Inc.
 
United States
 
100.0
%
 
100.0
%
CAE Verwaltungsgesellschaft mbH
 
Germany
 
100.0
%
 
100.0
%
Flight Simulator-Capital L.P.
 
Canada
 
—

 
100.0
%
Oxford Aviation Academy (Oxford) Limited
 
United Kingdom
 
100.0
%
 
100.0
%
Parc Aviation Limited
 
Ireland
 
100.0
%
 
100.0
%
Parc Aviation Engineering Services Ltd
 
Ireland
 
100.0
%
 
100.0
%
Parc Aviation UK Ltd
 
United Kingdom
 
100.0
%
 
100.0
%
Parc Interim Limited
 
Ireland
 
100.0
%
 
100.0
%
Presagis Canada Inc.
 
Canada
 
100.0
%
 
100.0
%
Presagis Europe (S.A.)
 
France
 
100.0
%
 
100.0
%
Presagis USA Inc.
 
United States
 
100.0
%
 
100.0
%
Servicios de Instrucción de Vuelo, S.L.
 
Spain
 
80.0
%
 
80.0
%
SIM-Industries Brasil Administracao de Centros de Treinamento Ltda.
 
Brazil
 
100.0
%
 
100.0
%
SIV Ops Training, S.L.
 
Spain
 
80.0
%
 
80.0
%
(1)These entities became subsidiaries during the third quarter of fiscal 2018 (Note 3).
Investments in joint ventures accounted for under the equity method:
  
 
 
% equity
 
 
% equity

 
 
 
 
interest

 
interest

Name
 
Country of incorporation
 
2018

 
2017

Aviation Training Northeast Asia B.V.
 
Netherlands
 
50.0
%
 
50.0
%
CAE Flight and Simulator Services Korea, Ltd.
 
Korea
 
50.0
%
 
50.0
%
CAE Flight Training (India) Private Limited
 
India
 
50.0
%
 
50.0
%
CAE-LIDER Training do Brasil Ltda.
 
Brazil
 
50.0
%
 
50.0
%
CAE Melbourne Flight Training Pty Ltd.
 
Australia
 
50.0
%
 
50.0
%
China Southern West Australia Flying College Pty Ltd.
 
Australia
 
47.1
%
 
47.1
%
Embraer CAE Training Services, LLC
 
United States
 
49.0
%
 
49.0
%
Emirates-CAE Flight Training LLC
 
United Arab Emirates
 
49.0
%
 
49.0
%
Flight Training Alliance GmbH (JV)
 
Germany
 
50.0
%
 
50.0
%
HATSOFF Helicopter Training Private Limited
 
India
 
50.0
%
 
50.0
%
HFTS Helicopter Flight Training Services GmbH
 
Germany
 
25.0
%
 
25.0
%
JAL CAE Flight Training Co. Ltd.
 
Japan
 
50.0
%
 
50.0
%
National Flying Training Institute Private Limited
 
India
 
51.0
%
 
51.0
%
Pegasus Ucus Egitim Merkezi A.S.
 
Turkey
 
49.9
%
 
49.9
%
Pelesys Learning Systems Inc.
 
Canada
 
45.0
%
 
—

Philippine Academy for Aviation Training Inc
 
Philippines
 
40.0
%
 
20.0
%
Rotorsim s.r.l.
 
Italy
 
50.0
%
 
50.0
%
Rotorsim USA LLC
 
United States
 
50.0
%
 
50.0
%
Zhuhai Free Trade Zone Xiang Yi Aviation Technology Company Limited
 
China
 
—

 
49.0
%
Zhuhai Xiang Yi Aviation Technology Company Limited
 
China
 
—

 
49.0
%


Acquisition of 45% interest in Pelesys
The Company purchased 45% of the shares of Pelesys, a global leader in the provision of aviation training solutions and courseware, for a cash consideration of $7.7 million. This joint venture investment is accounted under the equity method. The transaction includes a series of put and call options over the remaining 55% equity interest. The options are exercisable on pre-determined dates, at fair value subject to a pre-defined cap and floor.

In fiscal 2018, the unrecognized share of losses of joint ventures for which the Company ceased to recognize when applying the equity method was $7.0 million (2017 – $1.7 million (profits)). As at March 31, 2018, the cumulative unrecognized share of losses for these entities was $15.9 million (2017 – $8.9 million) and the cumulative unrecognized share of comprehensive loss of joint ventures was $17.1 million (2017 – $10.5 million).
RELATED PARTY TRANSACTIONS
The following table presents the Company’s outstanding balances with its joint ventures:

 
2018

 
2017

Accounts receivable (Note 4)
$
39.5


$
54.0

Contracts in progress: assets
14.5


14.2

Other assets
25.4


27.4

Accounts payable and accrued liabilities (Note 9)
9.7


15.3

Contracts in progress: liabilities
3.9


25.9



Other assets include a finance lease receivable of $9.3 million (2017 – $12.4 million) maturing in October 2022 and carrying an interest rate of 5.14% per annum, a loan receivable of $8.9 million (2017 – $8.4 million) maturing June 2026 and carrying a fixed interest rate of ten years Euro swap rate plus a spread of 2.50%, and a long-term interest-free account receivable of $7.2 million (2017 – $6.6 million) with no repayment term. As at March 31, 2018 and 2017 there are no provisions held against the receivables from related parties.
 
The following table presents the Company’s transactions with its joint ventures:
 
2018

 
2017

Revenue
$
65.2

 
$
71.5

Purchases
2.6

 
4.0

Other income
1.5

 
1.8



In addition, during fiscal 2018, transactions amounting to $0.8 million (2017 – $1.4 million) were made, at normal market prices, with organizations for which some of the Company’s directors are officers.

Compensation of key management personnel
Key management personnel have the ability and responsibility to make major operational, financial and strategic decisions for the Company and include certain executive officers. The compensation of key management for employee services is shown below:

2018

 
2017

Salaries and other short-term employee benefits
$
7.0

 
$
7.1

Post-employment benefits – defined benefit plans(1)
1.8

 
1.3

Share-based payments
17.8

 
16.8

   
$
26.6

 
$
25.2

(1) Includes net interest on employee benefits obligations.