Westjet 2013 Annual Report Download - page 87

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WestJet Annual Report 2013 87
Notes to Consolidated Financial Statements
As at and for the years ended December 31, 2013 and 2012
(Stated in thousands of Canadian dollars, except percentage, ratio, share and per share amounts)
12. Share capital (continued)
(c) Stock option plan (continued)
Changes in the number of options, with their weighted average exercise prices, are summarized below:
2013 2012
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Stock options outstanding, beginning of year 3,850,898 14.45  
Granted 1,722,013 21.92  
Exercised
(2,668,440)
14.24


Forfeited (67,796) 14.05  
Expired (2,036) 13.55  
Stock options outstanding, end of year 2,834,639 19.20  
Exercisable, end of year 637,292 14.57  
Under the terms of the Corporation's stock option plan, with the approval of the Corporation, option holders can either (i) elect
to receive shares by delivering cash to the Corporation in the amount of the exercise price of the options, or (ii) choose a
cashless settlement alternative, whereby they can elect to receive a number of shares equivalent to the market value of the
options over the exercise price. For the year ended December 31, 2013, option holders exercised 2,660,717 options (2012 –
3,483,587 options)on a cashless settlement basis and received 1,064,373 shares (2012 – 707,783 shares). For the year ended
December 31, 2013, 7,723 options were exercised on a cash basis and option holders received 7,723 shares (2012 – 15,232
options and 15,232 shares, respectively).
The following table summarizes the options outstanding and exercisable at December 31, 2013:
Outstanding options
Exercisable options
Range of exercise
prices
Number
outstanding
Weighted average
remaining life
(years)
Weighted
average exercise
price
Number
exercisable
Weighted
average exercise
price
11.35-12.50
7,439
2.95
12.36
4,463
12.44
12.51-15.50 1,044,012 3.25 14.63 619,277 14.54
15.51-19.99 62,046 5.50 16.90 13,238 16.64
20.00-22.83
1,721,142
4.17
21.92
314
21.68
2,834,639 3.86 19.20 637,292 14.57
The fair value of the options is expensed over the service period, with an offsetting entry to equity reserves. The fair value of
each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Upon the exercise of stock
options, consideration received, together with amounts previously recorded in equity reserves, is recorded as an increase to
share capital.
The fair value of options granted during the years ended December 31, 2013 and 2012, and the assumptions used in their
determination are as follows:
2013 2012
Weighted average fair value per option 4.54 
Weighted average risk-free interest rate 1.3% 
Weighted average expected volatility
29%

Expected life of options (years) 3.9 
Weighted average dividend yield 1.6% 
85 9 6
7 0 3)
4 1 73
46 0 6
22 0 2
5 5)
3 1 12
5 0 5
0 6 84
s
47 4 7)
2 8 )
60 1 )
47 4 7)
2) 6) 6)
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