Southwest Airlines 1997 Annual Report Download - page 50

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50
SOUTHWEST AIRLINES CO. ♥ FIVE SYMBOLS OF FREEDOM
resolution of such protest will not have a materially adverse effect upon the results of
operations of Southwest.
The effective tax rate on income before income taxes differed from the federal income
tax statutory rate for the following reasons:
(IN THOUSANDS) 1997 1996 1995
Tax at statutory
U.S. tax rates $180,935 $119,477 $106,799
Nondeductible items 5,893 5,168 4,488
State income taxes,
net of federal benefit 13,166 9,072 8,784
Other, net (810) 308 2,443
Total income tax provision $199,184 $134,025 $122,514
10. NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted earnings per share:
(IN THOUSANDS EXCEPT
PER SHARE AMOUNTS) 1997 1996 1995
NUMERATOR:
Net income, available to
stockholders – numerator
for basic and diluted
earnings per share $317,772 $207,337 $182,626
DENOMINATOR:
Weighted-average shares
outstanding, basic 219,088 217,118 215,517
Dilutive effect of Employee
stock options 8,371 7,873 6,247
Adjusted weighted-average
shares outstanding,
diluted 227,459 224,991 221,764
NET INCOME PER SHARE:
Basic $1.45 $.95 $.85
Diluted $1.40 $.92 $.82