Southwest Airlines 2008 Annual Report Download - page 66

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
Years Ended December 31,
2008 2007 2006
(In millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ....................................................... $ 178 $ 645 $ 499
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ...................................... 599 555 515
Deferred income taxes ............................................ 56 328 277
Amortization of deferred gains on sale and leaseback of aircraft ........... (12) (14) (16)
Share-based compensation expense .................................. 18 37 80
Excess tax benefits from share-based compensation arrangements .......... —(28) (60)
Changes in certain assets and liabilities:
Accounts and other receivables ................................... 71 (38) (5)
Other current assets ............................................ (384) (229) 87
Accounts payable and accrued liabilities ............................ (1,853) 1,609 (223)
Air traffic liability ............................................. 32 131 150
Other, net ...................................................... (226) (151) 102
Net cash provided by (used in) operating activities .................... (1,521) 2,845 1,406
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net ............................... (923) (1,331) (1,399)
Purchases of short-term investments ................................... (5,886) (5,086) (4,509)
Proceeds from sales of short-term investments ........................... 5,831 4,888 4,392
Debtor in possession loan to ATA Airlines, Inc. .......................... ——20
Other, net ........................................................ ——1
Net cash used in investing activities ............................... (978) (1,529) (1,495)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt ........................................... 1,000 500 300
Proceeds from credit line borrowing ................................... 91 ——
Proceeds from revolving credit agreement .............................. 400 ——
Proceeds from sale and leaseback transactions ........................... 173 ——
Proceeds from Employee stock plans .................................. 117 139 260
Payments of long-term debt and capital lease obligations ................... (55) (122) (607)
Payments of cash dividends .......................................... (13) (14) (14)
Repurchase of common stock ........................................ (54) (1,001) (800)
Excess tax benefits from share-based compensation arrangements ............ —28 60
Other, net ........................................................ (5) (23) —
Net cash provided by (used in) financing activities .................... 1,654 (493) (801)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .... (845) 823 (890)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ........ 2,213 1,390 2,280
CASH AND CASH EQUIVALENTS AT END OF PERIOD ............... $ 1,368 $ 2,213 $ 1,390
SUPPLEMENTAL DISCLOSURES
Cash payments for:
Interest, net of amount capitalized ..................................... $ 100 $63$78
Income taxes ...................................................... $71$94$15
See accompanying notes.
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