Southwest Airlines 2002 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 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

50 | SOUTHWEST AIRLINES CO. 2002 10-K
13. Employee Retirement Plans
The Company has defined contribution
plans covering substantially all of Southwest’s
Employees. The Southwest Airlines Co. Profit-
sharing Plan is a money purchase defined
contribution plan and Employee stock pur-
chase plan. The Company also sponsors
Employee savings plans under section 401(k)
of the Internal Revenue Code, which include
Company matching contributions. The 401(k)
plans cover substantially all Employees.
Contributions under all defined contribution
plans are based primarily on Employee
compensation and performance of the
Company.
Company contributions to all retirement
plans expensed in 2002, 2001, and 2000
were $155.6 million, $214.6 million, and
$241.5 million, respectively.
14. Income Taxes
Deferred income taxes reflect the net tax
effects of temporary differences between the
carrying amounts of assets and liabilities for
financial reporting purposes and the
amounts used for income tax purposes. The
components of deferred tax assets and
liabilities at December 31, 2002 and 2001,
are as follows:
(In thousands) 2002 2001
DEFERRED TAX LIABILITIES:
Accelerated depreciation $ 1,440,565 $ 1,246,009
Scheduled airframe maintenance 70,843 89,292
Other 25,854 31,770
Total deferred tax liabilities 1,537,262 1,367,071
DEFERRED TAX ASSETS:
Deferred gains from sale and leaseback of aircraft 95,823 101,755
Capital and operating leases 77,033 76,990
Accrued employee benefits 86,227 83,450
State taxes 43,151 37,715
Other 1,722 55,418
Total deferred tax assets 303,956 355,328
Net deferred tax liability $ 1,233,306 $ 1,011,743
The provision for income taxes is composed of the following:
(In thousands) 2002 2001 2000
CURRENT:
Federal $ (19,018) $ 98,378 $ 197,875
State 1,102) 10,212 26,671
Total current (17,916) 108,590 224,546
DEFERRED:
Federal 156,545) 187,296 151,694
State 13,084) 20,626 15,900
Total deferred 169,629) 207,922 167,594
$ 151,713) $ 316,512 $ 392,140