Westjet 2010 Annual Report Download - page 95

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WestJet 2010 Annual Report 93
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)
(i) Short-term deposits include deposits relating to aircraft fuel, airport operations and other operating costs.
(ii) Aircraft-related deposits include long-term deposits with lessors for the lease of aircraft and long-term US-dollar deposits, which relate to
purchased aircraft.
(iii) Deferred gains from the sale and leaseback of aircraft, net of amortization, which are being deferred and amortized over the lease terms
with the amortization included in aircraft leasing expense.
(iv) Included in other liabilities is an estimate pertaining to asset retirement obligations on its aircraft under operating leases. During the year
ended December 31, 2010, the Corporation increased the liability by $701 (2009 – $1,217) due to the addition of further leased aircraft with
$nil (2009 – $nil) incurred on the settlement of these obligations.
(v) Incentives received by the Corporation for entering into various leasing and maintenance contracts. Amounts are deferred and recognized
in net earnings on a straight-line basis over the term of the contract.
(b) Supplementary cash fl ow information
2010 2009
Net change in non-cash working capital from operations:
(Increase) decrease in accounts receivable $ 10,378 $ (11,365)
(Increase) decrease in prepaid expenses, deposits and other 8,531 (2,691)
(Increase) decrease in inventory 5,788 (9,014)
Increase in accounts payable and accrued liabilities 79,474 15,926
Increase in advance ticket sales 21,779 35,008
Decrease in non-refundable guest credits (27,728) (8,514)
$ 98,222 $ 19,350
2010 2009
Prepaid expenses, deposits and other:
Prepaid expenses $ 9,082 $ 29,797
Short-term deposits (i) 26,854 23,439
Derivatives
(note 13) 5,689 277
Other 91 2,726
$ 41,716 $ 56,239
Other assets:
Aircraft-related deposits (ii) $ 45,268 $ 50,975
Other 9,163 3,392
$ 54,431 $ 54,367
Other liabilities:
Deferred gain on sale and leaseback (iii) $ 4,143 $ 5,281
Asset retirement obligations (iv) 5,901 4,926
Deferred contract incentives (v) 8,794 9,421
$ 18,838 $ 19,628
14. Additional fi nancial information
(a) Balance sheet