Westjet 2012 Annual Report Download - page 41

WestJet 2012 Annual Report / 41
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perations whi
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ates at Decem
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he fixed-rate
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he outstandin
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r
ates at Dece
m
o
ng-term debt
otal long-term
he terms of th
e
F
or a discussio
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s
erve; risk ma
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ssociated wit
h
a
nd Capital Re
s
C
redit risk
C
redit risk is t
h
d
ischarge an o
b
c
ash equivalen
t
(
$ in thousands)
C
ash and cash e
q
R
estricted cash
(i
A
ccounts receiva
D
eposits
(iii)
D
erivative financ
i) Consists of b
a
substantially
b
directly or ind
limiting the to
ii) All si
g
nificant
not hold any
c
generally sett
l
iii) We are not e
x
assets of the
f
remote becau
iv) Derivative fin
a
and any new
c
L
iquidity risk
L
iquidity risk is
a
strong liquidi
t
T
he table belo
w
f
inancial liabilit
c
onsolidated st
a
(
$ in thousands)
A
ccounts payabl
e
D
erivative financ
L
on
g
-term debt
T
otal
i) Excludes curre
n
and interest ra
t
ii) Derivative fina
n
c
h, at Decemb
e
ber 31, 2012,
w
n
ature of the
m
g
debt. We ac
c
ber 31, 2012,
entered into
d
debt.
T
o ma
n
e
facilities. Th
e
n
of the natur
e
nagement act
h
the instrume
n
s
ource
s
– Airc
ra
h
e risk that o
n
b
ligation. At D
e
t
s, restricted c
a
q
uivalents
(i)
)
ble
(ii)
ial assets
(iv)
a
nk balances and s
h
b
y ensuring that th
irectly
g
uaranteed
o
tal exposure to an
y
counterparties, bo
t
c
ollateral as securi
t
l
ed in less than 30
x
posed to counterp
f
inancial institution
se of the nature a
n
a
ncial assets consi
s
c
ounterparties in a
the risk that
w
t
y position and
w
presents a
m
i
es as at Dec
e
a
tement of fin
a
e
and accrued li
a
ial liabilities
(ii)
n
t portion of main
t
t
e derivative liabilit
i
n
cial liabilities cons
i
e
r 31, 2012, t
o
w
ould not hav
e
m
ajority of ou
r
c
ount for our
would not im
p
during 2012,
w
age this expo
s
e
swap agreem
e
and extent
o
ivities; the fi
n
n
ts; and the si
g
ra
ft Financing
o
n
e party to a
ecember 31,
2
a
sh, accounts
r
h
ort-term investm
e
ese financial asset
s
by provincial
g
ove
r
y
single counterpa
r
t
h current and ne
w
t
y; however, in so
m
to 60 days. Indust
arty credit risk on
o
. While we are ex
p
n
d size of the coun
t
s
t of fuel derivative
ddition to limiting
t
w
e will encoun
t
sufficient fina
n
m
aturity analys
e
mber 31, 201
a
ncial position
a
bilities
(i)
t
enance provisions
i
es of $611.
i
st of foreign exch
a
o
talled $31.1
m
e
significantly i
r
long-term de
b
long-term fixe
d
p
act net earnin
g
w
hich, at Dec
e
s
ure, we enter
e
ents were des
i
o
f our use of i
n
n
ancial statem
e
g
nificant assu
m
o
n page 34 of t
h
financial instr
2
012, our credi
r
eceivable, de
p
e
nts with terms of
u
s
are invested pri
m
r
nments. We man
a
r
ty.
w
, are reviewed an
d
m
e cases we requir
e
ry receivables are
g
our deposits that r
e
p
osed to counterpa
r
terparty.
contracts and for
e
t
he total exposure
t
er difficulty in
n
cial resource
s
is of our undi
s
2. The analysi
date, and incl
u
of $34,135, defer
r
a
nge forward contr
a
illion (2011 –
$
mpacted our n
b
t mitigates th
e
d-rate debt at
g
s. We are ex
p
e
mber 31, 201
2
e
d into intere
s
i
gnated as cas
h
n
terest rate sw
e
nt classificati
o
m
ptions made i
n
his MD&A.
ument will ca
u
t exposure co
n
p
osits as well a
s
u
p to 92 days. Cre
d
m
arily in debt instru
m
ag
e our exposure b
d
approved for cre
d
e guaranteed lette
r
g
enerally settled
w
elate to purchased
rty credit risk on o
u
e
ign exchange for
w
to a single counter
meeting oblig
a
to meet our o
s
counted contr
a
s is based on
u
des both prin
c
Total
417,377
1,777
853,163
1,272,317
r
ed WestJet Rewar
acts of $898 and n
e
s
$
28.4 million).
n
et earnings d
u
e
impact of in
t
amortized co
s
p
osed to inter
e
2 totalled $69
s
t rate swap a
g
h
flow hedges
w
ap agreement
s
o
n and amou
n
n
determining
u
se a financia
n
sisted primari
s
the fair valu
e
d
it risk associated
w
ments with highly
b
y assessin
g
the fin
d
it on a re
g
ular ba
s
r
s of credit with ce
w
ithin 30 days.
aircraft, as the fu
n
ur
deposit relating
w
ard contracts. We
r
party.
a
tions associat
o
bligations as t
h
a
ctual cash fl
o
foreign excha
c
ipal and inter
e
Within 1
year
1
417,377
1,509
203,381
622,267
r
ds liability of $41,
et interest rate de
r
s
A reasonable
c
u
e to the balan
c
t
erest rate fluc
s
t, and, theref
e
st rate fluctua
t
.2 million or 9
g
reements to
f
for accounting
s
, including th
e
n
t of income,
their fair valu
e
l loss for the
ly of the carry
e
of derivative
f
2012
1,408
,
51
,
37
,
31
,
w
ith cash and cas
h
rated financial inst
i
n
ancial stren
g
th of
o
s
is under our credi
t
rtain counterpartie
n
ds are held in a s
e
to airport operatio
n
review the size an
t
ed with financ
i
h
ey fall due.
o
w for our non
-
a
nge and inter
e
e
st cash flows
f
1
- 3 years
3
―
758
350,222
350,980
117, foreign exch
a
r
ivative contracts o
s
c
hange in mar
k
c
e of these de
p
tuations over
t
f
ore, a change
t
ions on our v
a
.4% of the C
o
f
ix the interest
purposes.
e
business pu
r
expense, gai
n
e
, please refer
t
other party b
y
y
ing amounts
o
f
inancial asset
s
2
0
,
199
,
623
,
576
,
088
800
h
equivalents is mi
n
i
tutions, some of
w
o
ur counterparties
t
mana
g
ement poli
e
s. Trade receivabl
e
e
curity trust separ
a
n
s, we consider thi
d credit rating of
b
ial liabilities.
W
-
derivative an
d
e
st rates in e
f
f
or long-term
d
3
- 5 years
―
169
192,563
192,732
a
nge derivative lia
b
o
f $879.
│
k
et interest
p
osits.
t
he term of
in interest
a
riable-rate
o
rporation’s
rates over
r
poses they
n
and loss
to
Liquidity
y
failing to
o
f cash and
s
.
0
11
1,243,605
48,341
34,122
28,386
12,273
n
imized
w
hich are
and by
cies. We do
e
s are
a
te from the
i
s risk to be
b
oth current
W
e maintain
d
derivative
f
fect at the
d
ebt.
Over 5
years
―
(659)
106,997
106,338
b
ilities of $898