Southwest Airlines 2002 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2002 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

46 | SOUTHWEST AIRLINES CO. 2002 10-K
A rollforward of the amounts included in “Accumulated other comprehensive income (loss),” net of
taxes for 2002 and 2001, is shown below:
(In thousands)
Fuel
hedge
derivatives
Other
Accumulated other
comprehensive
income (loss)
Balance at December 31, 2000 $ - $ - $ -
January 1, 2001 transition
adjustment 46,089 - 46,089
2001 changes in fair value (31,665) (475) (32,140)
Reclassification to earnings (45,487) - (45,487)
Balance at December 31, 2001 $ (31,063) $ (475) $ (31,538)
2002 changes in fair value 109,571 (2,017) 107,554
Reclassification to earnings (22,358) - (22,358)
Balance at December 31, 2002 $ 56,150 $ (2,492) $ 53,658
11. Common Stock
The Company has one class of common
stock. Holders of shares of common stock are
entitled to receive dividends when and if
declared by the Board of Directors and are
entitled to one vote per share on all matters
submitted to a vote of the shareholders.
At December 31, 2002, the Company had
common stock reserved for issuance
pursuant to Employee stock benefit plans
(218 million shares authorized of which
57.8 million shares have not yet been
granted) and upon exercise of rights
(474.0 million shares) pursuant to the
Common Share Purchase Rights Agreement,
as amended (Agreement).
Pursuant to the Agreement, each
outstanding share of the Company’s common
stock is accompanied by one common share
purchase right (Right). Each Right is exer-
cisable only in the event of a proposed
takeover, as defined by the Agreement. The
Company may redeem the Rights at $.0022
per Right prior to the time that 15 percent of
the common stock has been acquired by a
person or group. The Agreement is not
applicable to a fully financed or cash tender
offer for all of the Company’s shares of
common stock, which remains open for at
least 60 calendar days, is at a price equal to
the higher of (a) 65 percent over the average
closing price of the common stock during the
90 days preceding the offer and (b) the
highest closing price during the 52 weeks
preceding the offer, and is accompanied by a
written fairness opinion of a nationally
recognized investment banking firm. If the
Company is acquired, as defined in the
Agreement, each Right will entitle its holder to
purchase for $3.29 that number of the
acquiring company’s or the Company’s
common shares, as provided in the
Agreement, having a market value of two
times the exercise price of the Right. The
Rights will expire no later than July 30, 2005.
On January 18, 2001, the Company’s Board
of Directors declared a three-for-two stock
split, distributing 253.9 million shares on
February 15, 2001. Unless otherwise stated,
all share and per share data presented in the
accompanying consolidated financial
statements and notes thereto have been
restated to give effect to this stock split.
In 1999, the Company’s Board of Directors
authorized the repurchase of up to
$250 million of its outstanding common
stock. This program resulted in the