Westjet 2001 Annual Report Download - page 55

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53
Years ended December 31, 2001 and 2000
(Tabular Amounts are Stated in Thousands of Dollars)
7. Income taxes:
Income taxes vary upon the amount that would be computed by applying the basic Federal and Provincial
tax rate of 43.7% (2000 – 45.0%) to earnings before taxes as follows:
2001 2000
Expected income tax provision $ 25,445 $ 23,718
Add (deduct):
Non-deductible expenses 459 35
Other (729) (124)
Capital taxes 251 170
Large corporations tax - 475
Future tax rate reductions (4,347) (1,822)
$ 21,079 $ 22,452
Cash taxes paid during the year were $25,700,000.
The components of the net future income tax liability at December 31, 2001 is as follows:
Future income tax assets:
Share issue costs $ 1,127
Future income tax liabilities:
Capital assets 22,060
Net future income tax liability $ 20,933
8. Commitments:
(a) Aircraft:
The Corporation has entered into an agreement to lease ten Boeing next generation aircraft, four of
which were delivered over the course of 2001, while the remaining six will be delivered in 2002. The
Corporation has also obtained options to lease an additional ten Boeing next generation aircraft to be
delivered prior to the end of 2006.
The obligations for the remaining six operating leases in U.S. dollars are as follows:
2002 $ 8,066
2003 17,621
2004 17,621
2005 17,621
2006 and thereafter 185,768
$ 246,697
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS