Westjet 2010 Annual Report Download - page 58

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56 WestJet 2010 Annual Report
($ in thousands, except percentage amounts) 2010 2009 Change
Return on invested capital
Earnings before income taxes $ 196,667 $ 136,796 $ 59,871
Add:
Special items before tax(i) 5,368 — 5,368
Interest expense 60,164 67,706 (7,542)
Implicit interest in operating leases(ii) 74,677 54,576 20,101
$ 336,876 $ 259,078 $ 77,798
Invested capital:
Average long-term debt(iii) $ 1,133,477 $ 1,285,840 $ (152,363)
Average obligations under capital leases(iv) 3,730 2,605 1,125
Average shareholders' equity 1,448,304 1,232,459 215,845
Off balance-sheet operating leases(v) 1,066,815 779,655 287,160
$ 3,652,326 $ 3,300,559 $ 351,767
Return on invested capital 9.2% 7.8% 1.4 pts.
(i) For the year ended December 31, 2010 special items before tax includes $4,136 for CEO departure and $1,232 for revisions to the calculation of capital taxes.
(ii) Interest implicit in operating leases is equal to 7.0 per cent of 7.5 times the trailing 12 months of aircraft lease expense. 7.5 is a proxy and does not necessarily
represent actual for any given period.
(iii) Average long-term debt includes the current portion and long-term portion.
(iv) Average capital lease obligations includes the current portion and long-term portion.
(v) Off-balance-sheet aircraft leases is calculated by multiplying the trailing 12 months of aircraft leasing expense by 7.5. As at December 31, 2010, the trailing 12 months of
aircraft leasing costs totalled $142,242 (2009 – $103,954).
($ in thousands, except per share data) 2010 2009 Change
Free cash fl ow
Cash fl ow from operating activities $ 443,283 $ 318,661 $ 124,622
Adjusted for capital expenditures:
Aircraft additions (29,884) (118,659) 88,775
Other property and equipment and intangible additions (18,675) (48,021) 29,346
Free cash fl ow $ 394,724 $ 151,981 $ 242,743
Diluted free cash fl ow per share $ 2.72 $ 1.15 136.5%