Southwest Airlines 2006 Annual Report Download - page 54

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
2006 2005 2004
Years Ended December 31,
(In millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 499 $ 484 $ 215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 469 431
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 291 166
Amortization of deferred gains on sale and leaseback of aircraft . . . . . . . . . . . . . . . . . (16) (16) (16)
Share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 80 135
Excess tax benefits from share-based compensation expense . . . . . . . . . . . . . . . . . . . . (60) (47) (23)
Changes in certain assets and liabilities:
Accounts and other receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (9) (75)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 (59) (44)
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (223) 855 231
Air traffic liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 120 68
Other,net..................................................... 102 (50) (22)
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,406 2,118 1,066
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,399) (1,146) (1,707)
Purchases of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,509) (1,804) (4,487)
Proceeds from sales of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,392 1,810 4,611
Payment for assets of ATA Airlines, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(6) (34)
Debtor in possession loan to ATA Airlines, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 — (40)
Other,net....................................................... 1— (1)
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,495) (1,146) (1,658)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 300 520
Proceeds from Employee stock plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 132 88
Payments of long-term debt and capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . (607) (149) (207)
Payments of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14) (14) (14)
Repurchase of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (800) (55) (246)
Excess tax benefits from share-based compensation arrangements . . . . . . . . . . . . . . . . . . 60 47 23
Other,net....................................................... —(1) (8)
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . (801) 260 156
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ............ (890) 1,232 (436)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ............... 2,280 1,048 1,484
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..................... $ 1,390 $ 2,280 $ 1,048
SUPPLEMENTAL DISCLOSURES
Cash payments for:
Interest, net of amount capitalized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $78$71$38
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15$8$2
Noncash rights to airport gates acquired through reduction in debtor in possession loan to
ATA Airlines, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $— $20$—
See accompanying notes.
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