Westjet 2002 Annual Report Download - page 42

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Figures in Review
Notes to Consolidated Financial Statements
42 2002 WestJet Annual Report
Years ended December 31, 2002 and 2001
(Tabular Amounts are Stated in Thousands of Dollars, Except Per Share Data)
1. Significant accounting policies (continued):
(l) Stock-based compensation plans:
Currently all outstanding stock options of the Corporation have been granted to employees of the Corporation
and no compensation cost has been recorded for these awards. Consideration paid by employees on
the exercise of stock options is recorded as share capital. The Corporation has disclosed the pro forma
effect of accounting for these rewards under the fair value based method (see note 6(f)).
(m) Financial instruments:
The Corporation utilizes derivatives and other financial instruments to manage its exposure to changes
in foreign currency exchange rates, interest rates and jet fuel price volatility. Gains or losses relating
to derivatives that are hedges are deferred and recognized in the same period and in the same
financial category as the corresponding hedged transactions.
(n) Per share amounts:
Basic per share amounts are calculated using the weighted average number of shares outstanding
during the year. Diluted per share amounts are calculated based on the treasury stock method, which
assumes that any proceeds obtained on exercise of options would be used to purchase common shares
at the average price during the period. The weighted average number of shares outstanding is then
adjusted by the net change. In computing diluted net earnings per share, 1,339,511 (2001 - 1,319,183)
shares were added to the weighted average number of common shares outstanding of 73,942,259
(2001 – 68,889,768) for the year ended December 31, 2002 in determining the dilutive effect of
employee stock options.
(o) Comparative figures:
Certain prior period balances have been reclassified to conform with current period’s presentation
and to comply with a change in accounting policy (see note 1(e)).
Rick Walker-Dade and
Laurel Moore, Flight Attendants