Westjet 2002 Annual Report Download - page 49

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Figures in Review
Notes to Consolidated Financial Statements
Bronwyn Whitehead, CSA, Thunder Bay
Years ended December 31, 2002 and 2001
(Tabular Amounts are Stated in Thousands of Dollars, Except Per Share Data)
7. Income taxes:
Income taxes vary upon the amount that would be computed by applying the basic Federal and
Provincial tax rate of 38.1% (2001 – 43.7%) to earnings before income taxes as follows:
2002 2001
Expected income tax provision $ 31,544 $ 25,445
Add (deduct):
Non-deductible expenses 518 459
Other (358) (729)
Capital taxes 31 251
Large corporations tax 177 -
Future tax rate reductions (848) (4,347)
$ 31,064 $ 21,079
Cash taxes paid during the year were $3,878,000 (2001 – $25,700,000).
The components of the net future income tax liability are as follows:
2002 2001
Future income tax asset:
Share issue costs $ 1,767 $ 1,127
Future income tax liability:
Capital assets 39,804 22,060
Net future income tax liability $ 38,037 $ 20,933
8. Commitments and contingencies:
(a) Aircraft:
The Corporation has entered into agreements to lease 10 Boeing Next-Generation
aircraft, four of which were delivered over the course of 2001, with the remaining six
delivered in 2002. Under the terms of these lease agreements, the Corporation received
a 737-700 engine for use throughout the period of the leases. Subject to the Corporation’s
compliance with the terms of the lease agreements, title to the engine will pass to the
Corporation at the end of the final lease. The Corporation has also obtained options
to lease an additional 10 Boeing Next-Generation aircraft to be delivered prior to the
end of 2006.