Westjet 2008 Annual Report Download - page 87

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WestJet 2008 Annual Report 83
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)
11. Financial instruments and risk management
(a) Fair value of fi nancial assets and fi nancial liabilities
The Corporation’s fi nancial assets and liabilities consist primarily of cash and cash equivalents, accounts receivable, derivatives both
designated and not designated in an effective hedging relationship, US-dollar deposits, accounts payable and accrued liabilities, and long-term
debt. The following tables set out the Corporation’s classifi cation and the carrying amount for each of its fi nancial assets and liabilities as at
December 31, 2008 and 2007:
2008
Held-for-
trading Derivatives
Loans and
receivables
Other fi nancial
liabilities
Total carrying
amount
Asset (liability)
Cash and cash equivalents $ 820,214 $ — $ — $ — $ 820,214
Accounts receivable — — 16,837 — 16,837
Foreign exchange options (i) — 862 — — 862
Cash fl ow hedges: (ii)
Foreign exchange forward contracts (iii) — 5,873 — — 5,873
Fuel derivatives (iv) — (52,298) — — (52,298)
US-dollar deposits (v) 24,309 — — — 24,309
Accounts payable and accrued liabilities (vi) — — — (211,543) (211,543)
Long-term debt (vii) — — — (1,351,903) (1,351,903)
$ 844,523 $ (45,563) $ 16,837 $ (1,563,446) $ (747,649)
2007
Held-for-
trading Derivatives
Loans and
receivables
Other fi nancial
liabilities
Total carrying
amount
Asset (liability)
Cash and cash equivalents $ 653,558 $ — $ — $ — $ 653,558
Accounts receivable — — 15,009 — 15,009
Cash fl ow hedges: (ii)
Foreign exchange forward contracts (iii) — 106 — — 106
US-dollar deposits (v) 22,748 — — — 22,748
Accounts payable and accrued liabilities — — — (168,171) (168,171)
Long-term debt (vii) — — — (1,429,518) (1,429,518)
$ 676,306 $ 106 $ 15,009 $ (1,597,689) $ (906,268)
(i) Foreign exchange options not designated in a hedging relationship included in prepaid expenses, deposits and other.
(ii) Derivatives designated in an effective cash fl ow hedging relationship.
(iii) Foreign exchange forward contracts included in prepaid expenses, deposits and other. See foreign exchange risk section for more information.
(iv) Includes $37,811 classifi ed in accounts payable and accrued liabilities and $14,487 included in other liabilities. See fuel risk section for more information.
(v) Includes $404 (2007 – $1,956) classifi ed in prepaid expenses, deposits and other and $23,905 (2007 – $20,792) classifi ed in other assets.
(vi) Excludes fuel derivative liabilities of $37,811.
(vii) Includes current portion of long-term debt of $165,721 (2007 – $172,992) and long-term portion of $1,186,182 (2007 – $1,256,526).