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50
YOUR OWNERS’ MANUAL
5. Other liabilities:
Included in other liabilities is $8,000,000 (2004 - $10,000,000) of unearned revenue related to the BMO Mosaik®MasterCard®*
with the AIR MILES®†Reward Option for future net retail sales and for bounty on newly activated credit cards. During the
year ended December 31, 2005, the Corporation recognized $2,000,000 (2004 – $NIL) of this unearned revenue. The remaining
unearned revenue balance will be recognized during the next three years with $2,000,000 earned in 2006 and $3,000,000
in each of 2007 and 2008.
At December 31, 2005, included in other liabilities are deferred gains from the sale and leaseback of aircraft in 2005 totaling
$7,875,000, net of amortization, which are being deferred and amortized over the lease term with the amortization included
in aircraft leasing. During the year ended December 31, 2005 the Corporation recognized amortization of $604,000.
The Corporation has also included in other liabilities $1,107,000 pertaining to the estimated lease return costs on its
Next-Generation leased aircraft.
6. Leases:
The Corporation has entered into operating leases and agreements for aircraft, buildings, computer hardware and software
licenses and satellite programming, as well as capital leases relating to aircraft and ground handling equipment. The obligations
are as follows (see note 9 for additional commitments):
Capital Operating
Leases Leases
2006 $ 2,622 $ 91,340
2007 411 96,821
2008 411 97,833
2009 411 94,350
2010 665 85,203
2011 and thereafter – 373,670
Total lease payments 4,520 $ 839,217
Less imputed interest at 6.09% (364)
Net minimum lease payments 4,156
Less current portion of obligations under capital lease (2,466)
Obligations under capital lease $ 1,690
The Corporation has US dollar capital lease obligations totaling $1,900,000 for 2006 which have been included at their
Canadian dollar equivalent in the table above.
The US dollar amounts of operating leases which have been included at their Canadian dollar equivalent above are:
2006 – $67,468,000, 2007 – $75,507,000, 2008 – $77,276,000, 2009 – $77,264,000, 2010 – $70,636,000, 2011 and
thereafter – $304,837,000.
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)