Southwest Airlines 2007 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2007 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

17. Contingencies
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 IRS.
The IRS regularly examines the Company’s federal
income tax returns and, in the course thereof, 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 it deems
lacking of merit.
The Company’s management does not expect that
the outcome in any of its currently ongoing legal pro-
ceedings 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 condition, results of operations or cash flow.
59
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)