Southwest Airlines 2005 Annual Report Download - page 63

SOUTHWEST AIRLINES CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
A rollforward of the amounts included in ""Accumulated other comprehensive income (loss)'', net of taxes for
2005, 2004, and 2003, is shown below:
Fuel Accumulated Other
Hedge Comprehensive
Derivatives Other Income (Loss)
(In millions)
Balance at December 31, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 123 $(1) $ 122
2004 changes in fair value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 558 2 560
Reclassification to earningsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (265) Ì (265)
Balance at December 31, 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 416 1 417
2005 changes in fair value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 999 1 1,000
Reclassification to earningsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (525) Ì (525)
Balance at December 31, 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 890 $ 2 $ 892
12. Common Stock bargaining plans) and stock plans covering Employees
not subject to collective bargaining agreements (other
The Company has one class of common stock. Employee plans). None of the collective bargaining
Holders of shares of common stock are entitled to plans were required to be approved by shareholders.
receive dividends when and if declared by the Board of Options granted to Employees under collective bargain-
Directors and are entitled to one vote per share on all ing plans are granted at or above the fair market value of
matters submitted to a vote of the shareholders. At the Company's common stock on the date of grant, and
December 31, 2005, the Company had 236 million generally have terms ranging from six to twelve years.
shares of common stock reserved for issuance pursuant Vesting terms differ based on the grant made, and have
to Employee stock benefit plans (of which 36 million ranged in length from immediate vesting to vesting
shares have not been granted.) periods in accordance with the period covered by the
respective collective bargaining agreement. Neither Ex-
In January 2004, the Company's Board of Direc- ecutive Officers nor members of the Company's Board
tors authorized the repurchase of up to $300 million of of Directors are eligible to participate in any of these
the Company's common stock, utilizing proceeds from collective bargaining plans. Options granted to Employ-
the exercise of Employee stock options. Repurchases ees through other Employee plans are granted at the fair
were made in accordance with applicable securities laws market value of the Company's common stock on the
in the open market or in private transactions from time date of grant, have ten-year terms, and vest and become
to time, depending on market conditions. During first fully exercisable over three, five, or ten years of contin-
quarter 2005, the Company completed this program. In ued employment, depending upon the grant type. All of
total, the Company repurchased approximately the options included under the heading of ""Other
20.9 million of its common shares during the course of Employee Plans'' have been approved by shareholders,
the program. except the plan covering non-management, non-con-
In January 2006, the Company's Board of Direc- tract Employees, which had 6.3 million options out-
tors authorized the repurchase of up to $300 million of standing to purchase the Company's common stock as
the Company's common stock. Repurchases will be of December 31, 2005.
made in accordance with applicable securities laws in
the open market or in private transactions from time to
time, depending on market conditions.
13. Stock Plans
The Company has stock plans covering Employees
subject to collective bargaining agreements (collective
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