Westjet 2015 Annual Report Download - page 99

Notes to Consolidated Financial Statements
As at and for the years ended December 31, 2015 and 2014
(Stated in thousands of Canadian dollars, except percentage, ratio, share and per share amounts)
WestJet Annual Report 2015 | 97
18. Nature-Based Reporting
On December 31, 2015, the Corporation transitioned from a functional-based presentation of operating expenses to a nature-based
presentation of operating expenses on the consolidated statement of earnings. The Corporation’s functional-based presentation of
operating expenses was aligned with the internal corporate organization for accountability and decision-making. The transition to a
nature-based presentation of operating expenses was done to align more closely with industry reporting practices and enhance
comparability with industry peers.
Under the new nature-based presentation for operating expenses, there have been no changes to the presentation of aircraft fuel,
depreciation and amortization, aircraft leasing or the employee profit share line items as these items were already presented by
nature. Total operating expenses remain unchanged and no other line items and no other financial statements were affected by this
transition.
The following captions summarize the operating expenses that transitioned from a functional-based presentation to a nature-based
presentation:
Airport operations – Aiport operations was previously a combination of salaries and benefits, airport rates and fees and deicing
costs. Salaries and benefits are now presented as total
Salaries and benefits in one line item while airport rates and fees are
presented in
Rates and fees and deicing costs are now presented in Other .
Flight operations – Flight operations was previously a combination of salaries and benefits, flight and navigation fees and costs
related to irregular operations. Salaries and benefits are now presented as total
Salaries and benefits in one line item while flight and
navigation fees are presented in
Rates and fees and costs related to irregular operations are now presented in Other.
Inflight – Inflight was previously a combination of salaries and benefits and flight attendant travel and training costs. Salaries and
benefits are now presented as total
Salaries and benefits in one line item while flight attendant travel and training expenses are now
presented in
Other.
Maintenance – Maintenance was previously a combination of salaries and benefits and operating maintenance expenditures for
aircraft, including the Corporation’s maintenance provision expenses related to aircraft operating leases. Salaries and benefits are
now presented as total
Salaries and benefits in one line item while operating maintenance expenditures for aircraft will continue to be
presented in
Maintenance.
Sales and distribution – Sales and distribution was previously a combination of salaries and benefits and selling and distribution
costs related to our global distribution systems. Salaries and benefits are now presented as total
Salaries and benefits in one line item
while selling and distribution costs are now presented in
Sales and marketing.
Marketing, general and administration – Marketing, general and administration was previously a combination of salaries and
benefits, advertising and sponsorship costs, professional fees and insurance costs. Salaries and benefits are now presented as total
Salaries and benefits in one line item, advertsing and sponsorship costs are now presented in Sales and marketing and professional
fees and insurance costs are now presented in
Other .