Southwest Airlines 2006 Annual Report Download - page 30

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Item 3. Legal Proceedings
On December 8, 2005, Southwest Airlines Flight
1248 was involved in an accident at Chicago Midway
Airport while the aircraft, a Boeing 737-700, was land-
ing. The aircraft overran the runway onto a roadway and
collided with an automobile. Several occupants of the
vehicles involved in the accident were injured, one fatally.
The Company continues to cooperate fully with all fed-
eral, state, and local regulatory and investigatory agencies
to determine the cause of this accident. The Company is
currently unable to predict the amount of claims, if any,
relating to this accident which may ultimately be made
against it and how those claims might be resolved. At this
time, the Company has no reason to believe that the costs
to defend any claims and any potential liability exposure
will not be covered by the insurance maintained by the
Company. Consequently, the Company does not expect
any litigation arising from the accident involving Flight
1248 to have a material adverse affect on the financial
position or results of operations of the Company.
The Company is subject to various legal proceedings
and claims arising in the ordinary course of business,
including, but not limited to, examinations by the Inter-
nal Revenue Service (IRS). The IRS regularly examines
the Company’s federal income tax returns and, in the
course of those examinations, proposes adjustments to the
Company’s federal income tax liability reported on such
returns. It is the Company’s practice to vigorously contest
those proposed adjustments that it deems lacking merit.
The Company’s management does not expect the out-
come in any of its currently ongoing legal proceedings or
the outcome of any proposed adjustments presented to
date by the IRS, individually or collectively, will have a
material adverse effect on the Company’s financial con-
dition, results of operations, or cash flows.
Item 4. Submission of Matters to a Vote of Security Holders
None to be reported.
EXECUTIVE OFFICERS OF THE REGISTRANT
The executive officers of Southwest, their positions, and their respective ages (as of January 1, 2007) are as follows:
Name Position Age
Herbert D. Kelleher ............ Chairman of the Board 75
Gary C. Kelly ................ Vice Chairman of the Board and Chief Executive Officer 51
Colleen C. Barrett ............. President and Secretary 62
Robert E. Jordan .............. Executive Vice President — Strategy, Procurement, and
Technology
46
Michael G. Van de Ven ......... Executive Vice President — Aircraft Operations 45
Ron Ricks ................... Executive Vice President — Law, Airports and Public
Affairs
57
Laura H. Wright .............. Senior Vice President — Finance and Chief Financial
Officer
46
Executive officers are elected annually at the first meeting of Southwest’s Board of Directors following the annual
meeting of Shareholders or appointed by the Chief Executive Officer pursuant to Board authorization. Each of the above
individuals has worked for Southwest Airlines Co. for more than the past five years.
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