Westjet 2005 Annual Report Download - page 56

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54
YOUR OWNERS’ MANUAL
7. Share capital (continued):
(d) Per share amounts:
The following table summarizes the shares used in calculating net earnings (loss) per share:
2005 2004
Weighted average number of shares outstanding – basic 128,031,694 125,071,208
Effect of dilutive employee stock options 392,408 –
Weighted average number of shares outstanding – diluted 128,424,102 125,071,208
For the year ended December 31, 2005, a total of 8,672,329 (2004 – 10,682,082) options were not included in the
calculation of dilutive potential shares as the result would be anti-dilutive.
(e) Employee Share Purchase Plan:
The Corporation has an Employee Share Purchase Plan (“ESPP”) whereby the Corporation matches every dollar contributed
by each employee. Under the terms of the ESPP, employees may contribute up to a maximum of 20% of their gross pay and
acquire common voting shares of the Corporation at the current fair market value of such shares.
Current market price for common shares issued from treasury is determined based on weighted average trading price
of the common shares on the Toronto Stock Exchange for the five trading days preceding the issuance.
The Corporation has the option to acquire common voting shares on behalf of employees through open market purchases
or to issue new shares from treasury at the current market price. For the period January to October 2005, shares under
the ESPP were issued from treasury at the current market price. Subsequent to this period, the Corporation elected to
purchase these shares through the
open market and will continue to review this option in the future. For the year ended
December 31, 2005,
$17,705,000 (2004 – $NIL) of common shares were issued from treasury, representing the
Corporation’s matching contribution from treasury for employee contributions, for which no cash was exchanged.
Shares acquired from the ESPP are held in trust for one year. Employees may offer to sell common shares, which have
not been held for at least one year, on January 1 and July 1 of each year, to the Corporation for 50% of the then current
market price.
The Corporation’s share of the contributions is recorded as compensation expense and amounted to $21,690,000
(2004 – $18,655,000).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
WestJet Airlines Ltd.
Years ended December 31, 2005 and 2004
(Tabular Amounts are Stated in Thousands of Dollars, Except Share and Per Share Data)