Southwest Airlines 2006 Annual Report Download - page 76

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QUARTERLY FINANCIAL DATA
(Unaudited)
March 31 June 30 Sept. 30 Dec. 31
Three Months Ended
(In millions except per share amounts)
2006
Operating revenues ..................................... $2,019 $2,449 $2,342 $2,276
Operating income...................................... 98 402 261 174
Income before income taxes............................... 96 515 78 101
Net income .......................................... 61 333 48 57
Net income per share, basic ............................... .08 .42 .06 .07
Net income per share, diluted ............................. .07 .40 .06 .07
March 31 June 30 Sept. 30 Dec. 31
2005
Operating revenues ..................................... $1,663 $1,944 $1,989 $1,987
Operating income...................................... 81 256 248 140
Income before income taxes............................... 89 235 343 113
Net income .......................................... 59 144 210 70
Net income per share, basic ............................... .08 .18 .27 .09
Net income per share, diluted ............................. .07 .18 .26 .09
Item 9. Changes in and Disagreements With
Accountants on Accounting and Financial
Disclosure
None.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures. The Company
maintains controls and procedures designed to ensure
that it is able to collect the information it is required to
disclose in the reports it files with the SEC, and to record,
process, summarize and disclose this information within
the time periods specified in the rules of the SEC. Based
on an evaluation of the Company’s disclosure controls and
procedures as of the end of the period covered by this
report conducted by the Company’s management, with
the participation of the Chief Executive and Chief Finan-
cial Officers, the Chief Executive and Chief Financial
Officers believe that these controls and procedures are
effective to ensure that the Company is able to collect,
process and disclose the information it is required to
disclose in the reports it files with the SEC within the
required time periods.
The certifications of the Company’s Chief Execu-
tive Officer and Chief Financial Officer required under
Section 302 of the Sarbanes-Oxley Act have been filed as
Exhibits 31.1 and 31.2 to this report. Additionally, in
2006 the Company’s Chief Executive Officer certified to
the New York Stock Exchange (“NYSE”) that he was
not aware of any violation by the Company of the NYSE’s
corporate governance listing standards.
Management’s Report on Internal Control over
Financial Reporting. Management of the Company is
responsible for establishing and maintaining adequate
internal control over financial reporting as defined in
Rule 13a-15(f) under the Securities Exchange Act of
1934. The Company’s internal control over financial
reporting is designed to provide reasonable assurance
to the Company’s management and Board of Directors
regarding the preparation and fair presentation of pub-
lished financial statements.
Because of its inherent limitations, internal control
over financial reporting may not prevent or detect mis-
statements. Therefore, even those systems determined to
be effective can provide only reasonable assurance with
respect to financial statement preparation and
presentation.
Management, with the participation of the Chief
Executive and Chief Financial Officers, assessed the
effectiveness of the Company’s internal control over
financial reporting as of December 31, 2006. In making
this assessment, management used the criteria set forth by
the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control
— Integrated Framework. Based on this assessment,
57