Southwest Airlines 2011 Annual Report Download - page 83

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31,
(in millions) 2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................ $ 178 $ 459 $ 99
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization ......................................... 715 628 616
Unrealized (gain) loss on fuel derivative instruments ....................... 90 139 14
Deferred income taxes ............................................... 123 133 72
Amortization of deferred gains on sale and leaseback of aircraft .............. (13) (14) (12)
Changes in certain assets and liabilities (excluding the effects of acquired
business):
Accounts and other receivables ........................................ (26) (26) 40
Other current assets .................................................. (196) (8) (27)
Accounts payable and accrued liabilities ................................. 253 193 59
Air traffic liability ................................................... 262 153 81
Cash collateral received from (provided to) derivative counterparties .......... (195) 265 (90)
Other, net ......................................................... 194 (361) 133
Net cash provided by operating activities ................................. 1,385 1,561 985
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment to acquire AirTran, net of AirTran cash on hand .................... (35) — —
Payments for purchase of property and equipment, net ...................... (968) (493) (585)
Purchases of short-term investments .................................... (5,362) (5,624) (6,106)
Proceeds from sales of short-term investments ............................ 5,314 4,852 5,120
Other, net ......................................................... — — 2
Net cash used in investing activities ..................................... (1,051) (1,265) (1,569)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt ............................................ — — 455
Proceeds from credit line borrowing .................................... — — 83
Proceeds from sale leaseback transactions ................................ — — 381
Proceeds from Employee stock plans .................................... 20 55 20
Proceeds from termination of interest rate derivative instrument .............. 76 — —
Payments of long-term debt and capital lease obligations .................... (540) (155) (86)
Payments of convertible debt obligations ................................. (81) — —
Payment of revolving credit facility obligations ........................... — — (400)
Payment of credit line borrowing obligations ............................. — (44) (97)
Payments of cash dividends ........................................... (14) (13) (13)
Repurchase of common stock .......................................... (225) — —
Other, net ......................................................... (2) 8 (13)
Net cash provided by (used in) financing activities ......................... (766) (149) 330
NET CHANGE IN CASH AND CASH EQUIVALENTS ................. (432) 147 (254)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ....... 1,261 1,114 1,368
CASH AND CASH EQUIVALENTS AT END OF PERIOD ............... $ 829 $1,261 $ 1,114
CASH PAYMENTS FOR:
Interest, net of amount capitalized ...................................... $ 185 $ 135 $ 152
Income taxes ....................................................... $ 13 $ 274 $ 5
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
Fair value of equity consideration given to acquire AirTran .................. $ 523 $ — $ —
Fair value of common stock issued for conversion of debt ................... $ 78 $ — $ —
See accompanying notes.
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