Westjet 2011 Annual Report Download - page 84

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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)
│
12. Income taxes (continued)
(b) Tax on earnings from continuing operations
2011 2010
Current tax:
Current tax
1,443 1,573
Adjustments of current tax of a prior year (207) −
1,236 1,573
Deferred tax:
Origination and reversal of temporary differences
57,991 41,695
Change in tax rate(i) 89 −
Adjustment for prior year (12) −
58,068 41,695
59
,
304 43
,
268
(i) Effect of substantively enacted corporate income tax rate changes
(c) Deferred tax
Components of the net deferred tax liability are as follows:
December 31
2011 December 31
2010 January 1
2010
Deferred tax liability:
Property and equipment (278,003) (280,899) (274,853)
Deferred partnership income (67,473) (43,437) (11,913)
Net unrealized gain on derivatives designated in a
hedging relationship (1,062) − −
Deferred tax asset:
Share issue costs 747 1,143 1,561
Net unrealized loss on effective portion of derivatives
designated in a hedging relationship −919 2,120
Non-capital losses(i) 7,348 45,010 50,200
Credit carry forwards(ii) 11,987 10,857 9,376
(326,456) (266,407) (223,509)
(i) Non-capital losses will begin to expire in 2014.
(ii) Credit carry forwards recognized for unused corporate minimum tax credits will begin to expire in 2013.
WestJet Annual Report 2011 84