Westjet 2014 Annual Report Download - page 73

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Notes to Consolidated Financial Statements
As at and for the years ended December 31, 2014 and 2013
(Stated in thousands of Canadian dollars, except percentage, ratio, share and per share amounts)
WestJet Annual Report 2014 │ 71
7. Property and equipment
January 1
2014 Net
additions Depreciation Transfers December 31
2014
Aircraft(i) 1,747,319 122,609(ii) (184,123) 247,481 1,933,286
Ground property and equipment 62,547 10,817 (13,901) 689 60,152
Spare engines and rotables 130,202 13,449 (12,630) 13,014 144,035
Deposits on aircraft 418,348 329,358 - (238,022) 509,684
Buildings 112,450 428 (3,444) - 109,434
Leasehold improvements 11,371 488 (2,082) 683 10,460
Assets under development 5,497 44,491 - (23,845) 26,143
2,487,734 521,640 (216,180) - 2,793,194
January 1
2013 Net
additions Depreciation Transfers December 31
2013
Aircraft
(i)
1,477,388 304,479 (162,128) 127,580 1,747,319
Ground property and equipment 57,115 14,958 (14,088) 4,562 62,547
Spare engines and rotables 101,709 32,840 (10,391)
6,044 130,202
Deposits on aircraft 208,602 327,244 - (117,498) 418,348
Buildings 115,899 (42) (3,436) 29 112,450
Leasehold improvements 11,002 157 (1,751) 1,963 11,371
Assets under development 13,884 14,293 - (22,680) 5,497
1,985,599 693,929 (191,794) - 2,487,734
(i) Aircraft includes (a) aircraft (b) engine, airframe and landing gear core components (c) engine, airframe and landing gear overhaul components, and (d)
live satellite television equipment. For the year ended December 31, 2014, total aircraft depreciation expense was $184,123 (December 31, 2013 –
$162,128). Included in total aircraft depreciation for the year ended December 31, 2014, was depreciation for overhaul components of $63,892
(December 31, 2013 – $56,523).
(ii) The Corporation has an agreement to sell 10 Boeing 737-700 aircraft with delivery dates scheduled to occur between October 2014 and May 2015. The
Corporation has recorded the aircraft at the contracted Canadian dollar equivalent proceeds using the period end US-dollar foreign exchange rate. The
difference between these proceeds and the carrying amount of the 10 aircraft resulted in a $47,919 loss on disposal of property and equipment on the
consolidated statement of earnings for the year ended December 31, 2014. At December 31, 2014, $78,306 for the remaining five undelivered aircraft
are recorded as assets held for sale on the consolidated statement of financial position.
December 31, 2014 Cost Accumulated
depreciation Net book
value
Aircraft 3,024,219 (1,090,933) 1,933,286
Ground property and equipment
158,078 (97,926) 60,152
Spare engines and rotables 216,051 (72,016) 144,035
Deposits on aircraft 509,684 - 509,684
Buildings 136,338 (26,904) 109,434
Leasehold improvements 19,768 (9,308) 10,460
Assets under development
26,143 - 26,143
4,090,281 (1,297,087) 2,793,194
December 31, 2013 Cost Accumulated
depreciation Net book
value
Aircraft
2,985,722
(1,238,403)
1,747,319
Ground property and equipment 154,986 (92,439) 62,547
Spare engines and rotables 185,308 (55,106) 130,202
Deposits on aircraft
418,348
-
418,348
Buildings 135,910 (23,460) 112,450
Leasehold improvements 18,597 (7,226) 11,371
Assets under development
5,497
-
5,497
3,904,368 (1,416,634) 2,487,734
The net book value of the property and equipment pledged as collateral for the Corporation’s long-term debt was $1,522,978 at
December 31, 2014 (2013 – $1,640,952).