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WestJet 2010 Annual Report 73
3. Capital management (continued)
During the year ended December 31, 2010, the Corporation announced a dividend program and declared an initial quarterly dividend of $0.05 per
common voting share and variable voting share to be paid on January 21, 2011, to shareholders of record on December 15, 2010.
Furthermore, during the year ended December 31, 2010, the Corporation initiated a normal course issuer bid to purchase outstanding shares in
the open market. See note 10, Share capital for further disclosure.
There were no other changes in the Corporation’s approach to capital management during the year ended December 31, 2010.
4. Cash and cash equivalents
As at December 31, 2010, cash and cash equivalents includes bank balances of $229,817 (2009 – $191,966) and short-term investments of
$958,082 (2009 – $813,215). Included in these balances, as at December 31, 2010, the Corporation has US-dollar cash and cash equivalents
totalling US $66,194 (2009 – US $32,858) and short-term investments of US $45,157 (2009 – US $nil).
As at December 31, 2010, cash and cash equivalents includes total restricted cash of $28,583 (2009 – $10,192). Included in this amount is $21,578
(2009 – $4,564), representing cash held in trust by WestJet Vacations Inc., a wholly owned subsidiary of the Corporation, in accordance with
regulatory requirements governing advance ticket sales for certain travel-related activities; $6,691 (2009 – $4,491) for security on the Corporation’s
facilities for letters of guarantee; and, in accordance with U.S. regulatory requirements, US $315 (2009 – US $1,082) in restricted cash, representing
cash not yet remitted for passenger facility charges.
5. Property and equipment
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
For the years ended December 31, 2010 and 2009
(Stated in thousands of Canadian dollars,
except share and per share amounts)
2010 Cost
Accumulated
depreciation Net book value
Aircraft $ 2,471,806 $ 622,997 $ 1,848,809
Ground property and equipment 121,814 61,895 59,919
Spare engines and parts 106,198 28,251 77,947
Buildings 135,817 13,154 122,663
Leasehold improvements 9,965 3,348 6,617
Assets under capital leases 4,413 1,170 3,243
2,850,013 730,815 2,119,198
Deposits on aircraft 98,344 — 98,344
Assets under development 9,143 — 9,143
$ 2,957,500 $ 730,815 $ 2,226,685
2009 Cost
Accumulated
depreciation Net book value
Aircraft $ 2,456,988 $ 513,521 $ 1,943,467
Ground property and equipment 120,031 52,804 67,227
Spare engines and parts 100,567 24,360 76,207
Buildings 136,228 9,843 126,385
Leasehold improvements 9,910 2,877 7,033
Assets under capital leases 5,882 2,210 3,672
2,829,606 605,615 2,223,991
Deposits on aircraft 83,489 — 83,489
Assets under development 86 — 86
$ 2,913,181 $ 605,615 $ 2,307,566