Westjet 2012 Annual Report Download - page 85

Notes to Consolidated Financial Statements
For the years ended December 31, 2012 and 2011
(Stated in thousands of Canadian dollars, except share and per share amounts)
12. Share capital (continued)
(f) Share-based payment expense
The following table summarizes share-based payment expense for the Corporation’s equity-based plans:
2012
2011
Stock option plan
Key employee and pilot plan
Executive share unit plan
Total share-based payment expense
Presented on the consolidated statement of earnings as follows:
Flight operations and navigational charges
Marketing, general and administration
Total share-based payment expense
(g) Deferred share units
The Corporation has a cash-settled deferred share unit (DSU) plan as an alternative form of compensation for independent
members of the Corporation’s Board of Directors. Each DSU entitles a participant to receive cash equal to the market value of
the equivalent number of shares of the Corporation. The number of DSUs granted is determined based on the closing price of
the Corporation’s common shares on the trading day immediately prior to the date of grant. Total compensation expense is
recognized at the time of grant. Fluctuations in the market value are recognized in the period in which the fluctuations occu r.
For the year ended December 31, 2012, 21,162 (2011 – 21,146) DSUs were granted, with $1,080 (2011 – $108) of expense
included in marketing, general and administration expense. During the years ended December 31, 2012 and 2011, the
Corporation did not settle any DSUs. The carrying amount of the liability, included in trade and other payables, relating to the
cash-settled DSUs as at December 31, 2012 is $2,046 (2011 - $966). As at December 31, 2012, 103,296 (2011 – 82,134) DSUs
are vested and outstanding. DSUs are redeemable upon the Director’s retirement from the Board.
(h) Employee share purchase plan
The Corporation has an employee share purchase plan (ESPP), whereby the Corporation matches every dollar contributed by
each employee. Under the terms of the ESPP, employees may contribute up to a maximum of 20% of their gross pay and
acquire voting shares of the Corporation at the current fair market value of such shares. Employees are restricted from
transferring, withdrawing or selling these ESPP shares for one year from the date of acquisition. Employees may offer to sell
ESPP shares, which have not been held for at least one year, to the Corporation, at a purchase price equal to 50% of the
weighted average trading price of the Corporation’s voting shares for the five trading days immediately preceding the employee’s
notice to the Corporation, to a maximum of four times per year.
Under the terms of the ESPP, the Corporation acquires voting shares on behalf of employees through open market purchases.
The Corporation’s share of the contributions in 2012 amounted to $65,439 (2011 – $58,682) and is recorded as compensation
expense within the related business unit.
13. Dividends
During the year ended December 31, 2012 the Corporation declared quarterly cash dividends of $0.06 per share in the first and
second quarters and $0.08 per share in the third and fourth quarters on its common voting shares and variable voting shares.
For the year ended December 31, 2012, the Corporation paid dividends totalling $37,549 (2011 – $ ).
WestJet 2012 Annual Report
/ 85