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Therefore, the joint ventures do not hold any property, plant, or equipment assets directly. Consequently, the depreciation balance reported above includes depreciation on assets involved in both wholly owned and joint ventured activities. 

## Selling and Administrative Expenses 

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(1) Proportionate share of selling & administrative expenses from joint ventures and adjusted selling & administrative expenses are non-standard accounting measures. See commentary in “Basis of Analysis in this MD&A, Non-standard and Additional GAAP Items”. 

Adjusted selling and administrative expenses decreased marginally to $18,786,000 in 2013 from $18,935,000 in 2012. Adjusted selling and administrative expenses equated to 8.7% of total adjusted revenue in 2013, compared to 7.8% of total adjusted revenue in 2012, as a result of decreased adjusted revenue. 

The single largest component of adjusted selling and administrative expenses was salaries and benefits which accounted for 60% of these expenses in 2013 (64% in 2012). 

## Equity Income from Joint Ventures 

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(1) Proportionate share of revenue from joint ventures, proportionate share of operating & maintenance expenses from joint ventures and proportionate share of selling & administrative expenses from joint ventures are non-standard accounting measures. See commentary in “Basis of Analysis in this MD&A, Non- standard and Additional GAAP Items”. 

The Company provides the same drilling services and utilizes the same management, financial and reporting controls for its joint venture activities as are in place for its wholly owned operations. The analyses of these activities are incorporated throughout the relevant sections of this MD&A. Joint venture activities are often located in some of the most prospective regions in Canada. Further, two thirds of AKITA’s joint ventures utilize pad drilling rigs. 

