Westjet 2009 Annual Report Download - page 93

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WestJet 2009 Annual Report 63
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
For the years ended December 31, 2009 and 2008
(Stated in thousands of Canadian dollars, except share and per share data)
8. Obligations under capital leases
The Corporation has entered into capital leases relating to a fuel storage facility and ground handling equipment. The obligations
are as follows:
9. Income taxes
The provision for income taxes differs from that which would be expected by applying the combined federal and provincial statutory rates.
A reconciliation of the difference is as follows:
The Corporation has included in its reconciliation an amount of $18,206 (2008 – $9,970) for the effect of tax rate changes. This amount refl ects
the impact of certain federal and provincial corporate income tax rate reductions enacted in 2009 and 2008, changes to the timing around when
the Corporation expects certain temporary differences to reverse, and differences between current statutory rates used in the reconciliation
and future rates at which the future income tax liability is recorded. Included in other for 2009 are revisions to the measurement of previously-
recognized future tax assets of $5,700 (2008 - $nil).
2010 $ 943
2011 282
2012 245
2013 245
2014 245
2015 and thereafter 4,862
Total minimum lease payments $ 6,822
Less weighted average imputed interest at 5.28% (2,720)
Net minimum lease payments 4,102
Less current portion of obligations under capital leases (744)
Obligations under capital leases $ 3,358
2009 2008
Restated
Earnings before income taxes $ 136,796 $ 254,749
Income tax rate 30.62% 31.30%
Expected income tax provision 41,887 79,736
Add (deduct):
Non-deductible expenses 5,545 2,097
Non-deductible stock-based compensation 4,112 4,218
Effect of tax rate changes (18,206) (9,970)
Other 5,280 162
Actual income tax provision $ 38,618 $ 76,243