Westjet 2009 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2009 Westjet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

66 WestJet 2009 Annual Report
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)
2009 2008
Weighted average number of shares outstanding – basic 132,130,009 128,690,146
Effect of dilutive employee stock options and unit plans 131,761 1,285,094
Weighted average number of shares outstanding – diluted 132,261,770 129,975,240
2009 2008
Number of options
Weighted average
exercise price Number of options
Weighted average
exercise price
Stock options outstanding, beginning of year 11,918,168 $ 13.90 12,226,232 $ 13.66
Granted 3,011,148 12.47 1,974,485 16.68
Exercised (376,596) 11.83 (2,013,290) 15.08
Forfeited (34,487) 13.25 (90,891) 13.24
Expired (2,996,389) 14.61 (178,368) 14.93
Stock options outstanding, end of year 11,521,844 $ 13.42 11,918,168 $ 13.90
Exercisable, end of year 6,647,525 $ 12.90 7,849,131 $ 12.87
10. Share capital (continued)
(c) Per share amounts
The following table summarizes the shares used in calculating net earnings per share:
For the year ended December 31, 2009, 10,455,457 employee stock options (2008 – 5,918,948 employee stock options, and 48,527 restricted share
units) were not included in the calculation of dilutive potential shares as the result would be anti-dilutive.
(d) Stock option plan
The Corporation has a stock option plan, whereby up to a maximum of 12,228,611 (2008 – 12,622,734) common and variable voting shares may
be issued to offi cers and employees of the Corporation subject to the following limitations:
(i) the number of common voting shares reserved for issuance to any one optionee will not exceed 5% of the issued and outstanding common
and variable voting shares at any time;
(ii) the number of common voting shares reserved for issuance to insiders shall not exceed 10% of the issued and outstanding common and
variable voting shares; and
(iii) the number of common voting shares issuable under the stock option plans, which may be issued within a one-year period, shall not exceed
10% of the issued and outstanding common and variable voting shares at any time.
Stock options are granted at a price that equals the market value of the Corporation’s common shares, have a term of four or fi ve years and vest
on either the fi rst, second or third anniversary from the date of grant.
Changes in the number of options, with their weighted average exercise prices, are summarized below:
Under the terms of the Corporation’s stock option plan, option holders can either (i) elect to receive shares by delivering cash to the Corporation
in the amount of the options, or (ii) choose a cashless settlement alternative whereby they can elect to receive a number of shares equivalent to
the market value of the options over the exercise price. For the year ended December 31, 2009, option holders exercised 376,596 options (2008 –
1,998,926) on a cashless settlement basis and received 29,685 shares (2008 – 332,730). For the year ended December 31, 2009, nil options (2008
– 14,364) were exercised on a cash basis.