Southwest Airlines 2007 Annual Report Download - page 81

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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)
2007
Operating revenues ..................................... $2,198 $2,583 $2,588 $2,492
Operating income...................................... 84 328 251 126
Income before income taxes............................... 149 447 277 183
Net income .......................................... 93 278 162 111
Net income per share, basic ............................... .12 .36 .22 .15
Net income per share, diluted ............................. .12 .36 .22 .15
March 31 June 30 Sept. 30 Dec. 31
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
Item 9. Changes in and Disagreements With
Accountants on Accounting and Financial
Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures. The
Company maintains disclosure controls and procedures (as
defined in Rule 13a-15(e) of the Securities Exchange Act)
designed to provide reasonable assurance that the information
required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is recorded, pro-
cessed, summarized, and reported within the time periods
specified in the SEC’s rules and forms. These include controls
and procedures designed to ensure that this information is
accumulated and communicated to the Company’s manage-
ment, including its Chief Executive Officer and Chief Finan-
cial Officer, as appropriate to allow timely decisions regarding
required disclosure. Management, with the participation of
the Chief Executive and Chief Financial Officers, evaluated
the effectiveness of the Company’s disclosure controls and
procedures as of December 31, 2007. Based on this evalu-
ation, the Company’s Chief Executive Officer and Chief
Financial Officer have concluded that the Company’s disclo-
sure controls and procedures were effective as of December 31,
2007 at the reasonable assurance level.
Management’s Annual Report on Internal Control
over Financial Reporting. Management of the Com-
pany is responsible for establishing and maintaining
adequate internal control over financial reporting (as
defined in Rule 13a-15(f) under the Exchange Act).
The Company’s internal control over financial reporting
is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes
of accounting principles generally accepted in the United
States.
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 of
achieving their control objectives.
Management, with the participation of the Chief
Executive and Chief Financial Officers, evaluated the
effectiveness of the Company’s internal control over
financial reporting as of December 31, 2007. In making
this assessment, management used the criteria set forth by
the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Con-
trol — Integrated Framework. Based on this evaluation,
management, with the participation of the Chief Exec-
utive and Chief Financial Officers, concluded that, as of
December 31, 2007, the Company’s internal control over
financial reporting was effective.
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