Southwest Airlines 2006 Annual Report Download - page 60

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in 2009, $341 million in 2010, $315 million in 2011,
and $184 million thereafter.
5. Accrued Liabilities
2006 2005
(In millions)
Retirement plans (Note 14) ......................................... $ 165 $ 142
Aircraft rentals .................................................. 128 116
Vacation pay .................................................... 151 135
Advances and deposits ............................................. 546 955
Deferred income taxes ............................................. 78 489
Other ......................................................... 255 237
Accrued liabilities............................................... $1,323 $2,074
6. Revolving Credit Facility
The Company has a revolving credit facility under
which it can borrow up to $600 million from a group of
banks. The facility expires in August 2010 and is unse-
cured. At the Company’s option, interest on the facility
can be calculated on one of several different bases. For
most borrowings, Southwest would anticipate choosing a
floating rate based upon LIBOR. If the facility had been
fully drawn at December 31, 2006, the spread over
LIBOR would be 62.5 basis points given Southwest’s
credit rating at that date. The facility also contains a
financial covenant requiring a minimum coverage ratio of
adjusted pretax income to fixed obligations, as defined.
As of December 31, 2006, the Company is in compliance
with this covenant, and there are no outstanding amounts
borrowed under this facility.
7. Long-Term Debt
2006 2005
(In millions)
Zero coupon Notes due 2006 ........................................ $— $58
Pass Through Certificates ........................................... —523
77⁄8% Notes due 2007.............................................. 100 100
French Credit Agreements due 2012 ................................... 37 41
61⁄2% Notes due 2012.............................................. 369 370
51⁄4% Notes due 2014.............................................. 336 340
53⁄4% Notes due 2016.............................................. 300 —
51⁄8% Notes due 2017.............................................. 300 300
French Credit Agreements due 2017 ................................... 100 106
73⁄8% Debentures due 2027 .......................................... 100 100
Capital leases (Note 8) ............................................ 63 74
1,705 2,012
Less current maturities ............................................. 122 601
Less debt discount and issue costs ..................................... 16 17
$1,567 $1,394
During December 2006, the Company issued
$300 million senior unsecured Notes due 2016. The
notes bear interest at 5.75 percent, payable semi-annually
in arrears, with the first payment due on June 15, 2007.
Southwest used the net proceeds from the issuance of the
41
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)