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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)
17. Commitments (continued)
(c) Letters of guarantee
As at December 31, 2012, the Corporation has a revolving letter of credit facility with a Canadian charter bank totalling $30,000
(2011 – $30,000). The facility requires funds to be assigned and held in cash security for the full value of letters of guarantee
issued by the Corporation. At December 31, 2012, $7,562 (2011 – $6,610) letters of guarantee were issued under the facility by
assigning restricted cash of $7,562 (2011 – $6,610).
18. 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 four 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 Encore Ltd.
WestJet, An Alberta Partnership
WestJet, An Alberta Partnership is the primary operating entity of the Corporation.
The Corporation utilizes six 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, 2012
and 2011.
2012
2011
Short-term fees and other short-term benefits
3,678
4,401
Termination and post-employment benefits
1,116
Share-based payment expense (i)
4,648
3,293
8,326
8,810
(i) Includes amounts expensed pursuant to the stock option plan, executive share unit plan, deferred share unit plan and employee share purchase plan.
WestJet 2012 Annual Report
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