58 ANNUAL REPORT 2012 The Company applies fair value accounting for share options granted to employees and records compensation expense upon issuance of the share options under its stock option plan For options granted during the year ended December 31 2012 and 2011 the fair value was estimated on the date of grant using the Black Scholes fair value option pricing model using the following assumptions 2012 2011 Weighted average fair value per share option 248515 397 Expected volatility 1 334534 5600 Dividend yield 216269 207 Riskfree interest rate 157167 262 Weighted average expected life in years 500 500 1 Expected volatility was determined using historical volatility The resulting fair value is charged to expense over the vesting period of the share options LongTerm Incentive Plan In 2005 the Company adopted a LongTerm Incentive Plan LTIP to provide a fnancial incentive for its senior executives to devote their efforts to the longterm success of the Companys business The LTIP provides that shares of the Company will be purchased by the trustee and held in trust for the future beneft of the participants until such time as awards made to participants under the LTIP have vested and as a result the participants become eligible to have such shares transferred to them Awards to participants are based on the fnancial results of the Company and are made in the form of Deferred Share Units DSUs or in the form of restricted shares Awards made in the form of DSUs will vest only upon the retirement or termination of the participant Awards made in the form of restricted shares will vest annually over three years Compensation charges related to the LTIP are expensed over the estimated vesting period of the awards Awards made to individuals who are eligible to retire under the plan are assumed for accounting purposes to vest immediately In 2012 the Company recorded LTIP compensation charges of 7450 2011 6000 The LTIP Trust the Trust currently holds 2800697 shares at December 31 2012 2011 2511662 shares The Company has determined it holds a benefcial interest in the activities of the Trust and that the Trust meets the criteria of a Special Purpose Entity that requires consolidation by the Company in accordance with SIC 12 Consolidation Special Purpose Entities Accordingly at December 31 2012 share capital was reduced by 30384 2011 26476 and accrued liabilities increased by the same amount 26 JOINT VENTURES The following amounts represent the Companys share of assets liabilities revenue and expenses relating to joint ventures Included in expenses in determining the Companys share of proft or loss from joint ventures are income taxes for those entities that are separately liable for the payment of income taxes Income taxes are not included for joint ventures where income taxes are the responsibility of the joint venture partners Income taxes included in joint venture expenses for the year ended December 31 2012 amount to an income tax recovery of 10855 and an income tax expense of 239 for the year ended December 31 2011 December 31 December 31 2012 2011 Current assets 227520 240864 Noncurrent assets 340498 289569 Current liabilities 209560 165673 Noncurrent liabilities 198109 199383 Share of net assets of joint ventures 160349 165377 Revenue and expenses for the year ended were as follows December 31 December 31 2012 2011 Revenue 391416 376014 Expenses 336044 308794 Share of proft 55372 67220 As at December 31 2012 the Companys total investment in Quiport JV was US158916 Of this amount US63470 was invested through cash equity contributions and the balance of US95446 through the reinvestment of the Companys share of the earnings of the existing airport As at December 31 2012 the Companys direct equity investment in Quiport JV was fully contributed 27 EXPENSES Expenses for the year ended were as follows December 31 December 31 2012 2011 Materials 378664 542396 Subcontractors 730720 826261 Personnel 1117451 1018142 Equipment costs 426234 227829 Depreciation of property plant and equipment and amortization of intangible assets 63562 62548 Finance costs charged to projects 508 3928 Other expenses 135405 142310 Total expenses 2852544 2823414 NOTES TO THE CONSOLIDA TED FINANCIAL ST A TEMENTS DECEMBER 31 2012 AND 2011 IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE AMOUNTS