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WestJet 2008 Annual Report 77
notes to consolidated
fi nancial statements
For the years ended December 31, 2008 and 2007
(Stated in thousands of Canadian dollars, except share and per share data)
8. Share capital (continued)
(b) Issued and outstanding
As at December 31, 2008, the number of common voting shares outstanding was 124,291,677 (2007 – 122,884,662) and the number of variable
voting shares was 3,621,903 (2007 – 6,686,908).
On March 12, 2008, the Corporation fi led a notice with the Toronto Stock Exchange (TSX) to make a normal course issuer bid to purchase
outstanding shares on the open market. As approved by the TSX, WestJet is authorized to purchase up to 2,500,000 shares (representing
approximately 1.9% of its issued and outstanding shares at the time of the bid) during the period of March 17, 2008 to March 16, 2009, or until
such earlier time as the bid is completed or terminated at the option of the Corporation. Any shares the Corporation purchases under this bid
will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of the transaction. Shares
acquired under this bid will be cancelled.
During the year ended December 31, 2008, the Corporation purchased 2,005,084 shares under the bid for total consideration of $29,420.
The average book value of the shares repurchased of $7,091 was charged to share capital with the $22,329 excess of the market price over the
average book value charged to retained earnings.
During the year ended December 31, 2007, the Corporation purchased 1,263,500 shares under its previous normal course issuer bid, which
expired on February 27, 2008, for total consideration of $21,250. The average book value for the shares repurchased of $4,271 was charged to
share capital with the $16,979 excess of the market price over the average book value charged to retained earnings.
(c) Per share amounts
The following table summarizes the shares used in calculating net earnings per share:
2008 2007
Number Amount Number Amount
Common and variable voting shares:
Balance, beginning of year 129,571,570 $ 448,568 129,648,688 $ 431,248
Issuance of shares pursuant to stock
option plans 347,094 227 1,186,382 1,551
Stock-based compensation expense
on stock options exercised — 11,181 — 20,040
Shares repurchased (2,005,084) (7,091) (1,263,500) (4,271)
Balance, end of year 127,913,580 $ 452,885 129,571,570 $ 448,568
2008 2007
Weighted average number of shares outstanding – basic 128,690,146 129,709,329
Effect of dilutive employee stock options and unit plans 1,285,094 1,900,850
Weighted average number of shares outstanding – diluted 129,975,240 131,610,179
For the year ended December 31, 2008, 5,918,948 employee stock options, and 48,527 restricted share units, (2007 – 1,584,520 employee stock
options) were not included in the calculation of dilutive potential shares as the result would be anti-dilutive.