Westjet 2011 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2011 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 111

  • 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

Notes to Consolidated Financial Statements
For the years ended December 31, 2011 and 2010
(Stated in thousands of Canadian dollars, except share and per share amounts)
│
19. Related parties
(a) Subsidiaries and partnership
The consolidated financial statements of WestJet Airlines Ltd., the parent company, include the accounts of the Corporation and
its following three directly wholly-owned subsidiaries incorporated in Canada, as well as an indirectly wholly-owned Alberta
partnership:
WestJet Investment Corp.
WestJet Operations Corp.
WestJet Vacations Inc.
WestJet Partnership
WestJet Partnership is the primary operating entity of the Corporation.
The Corporation utilizes five special purpose entities (SPEs) to facilitate the financing of aircraft. The Corporation has no equity
ownership in the SPEs, however, the substance of the relationship between the Corporation and the SPEs indicates that they are
controlled by the Corporation. Accordingly, the accounts of the SPEs have been consolidated in the Corporation’s financial
statements and all intercompany balances and transactions have been eliminated.
(b) Key management personnel
The Corporation has defined key management personnel as senior executive officers, as well as the Board of Directors, as they
have the collective authority and responsibility for planning, directing and controlling the activities of the Corporation. The
following table outlines the total compensation expense for key management personnel for the years ended December 31, 2011
and 2010.
2011 2010
Short-term fees and other short-term benefits 4,401 3,546
Termination and post-employment benefits 1,116 1,618
Share-based payment expense (i) 3,293 5,354
8,810 10,518
(i) Includes amounts expensed pursuant to the stock option plan, executive share unit plan, deferred share unit plan and employee share purchase plan.
(c) Transactions with other related parties
During 2010, the Corporation engaged a relocation firm to purchase a single family residence from the President and Chief
Executive Officer (CEO) for a guaranteed price of US $1,525 in accordance with the Corporation’s relocation policy, and in
addition, granted RSUs pursuant to the Corporation’s ESU plan in connection with the relocation. On September 30, 2011, the
residence was sold for US $1,050 to a third party. The Corporation recognized an expense of US $475 plus closing charges of US
$100 on the transaction, this difference was made payable to the relocation firm and recognized in 2011 under marketing,
general and administrative expense.
WestJet Annual Report 2011 100