Southwest Airlines 1999 Annual Report Download - page 47

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NET INCOME PER SHARE:
Basic $.94 $.87 $.64
Diluted $.89 $.82 $.62
The Company has excluded 259,700 and 1,141,355 shares from its calculations of dilutive
earnings per share in 1999 and 1997, respectively, as they represent antidilutive stock options for the
respective periods presented. There were no antidilutive stock options in 1998.
REPORT OF ERNST & YOUNG LLP INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS
SOUTHWEST AIRLINES CO.
We have audited the accompanying consolidated balance sheets of Southwest Airlines Co. as
of December 31, 1999 and 1998, and the related consolidated statements of income, stockholders’
equity, and cash flows for each of the three years in the period ended December 31, 1999. These
financial statements are the responsibility of the Company’ s management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the consolidated financial position of Southwest Airlines Co. at December 31, 1999 and 1998, and the
consolidated results of its operations and its cash flows for each of the three years in the period ended
December 31, 1999, in conformity with accounting principles generally accepted in the United States.
ERNST & YOUNG, LLP
Dallas, Texas
January 18, 2000
F20