Southwest Airlines 2008 Annual Report Download - page 95

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QUARTERLY FINANCIAL DATA
(Unaudited)
(In millions except per share amounts) Three Months Ended
March 31 June 30 Sept. 30 Dec. 31
2008
Operating revenues .......................................... $2,530 $2,869 $2,891 $2,734
Operating income ........................................... 88 205 86 70
Income (loss) before income taxes .............................. 37 529 (205) (83)
Net income (loss) ........................................... 34 321 (120) (56)
Net income (loss) per share, basic .............................. .05 .44 (.16) (.08)
Net income (loss) per share, diluted ............................. .05 .44 (.16) (.08)
March 31 June 30 Sept. 30 Dec. 31
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
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. Southwest 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 Southwest in the reports that it files or
submits under the Exchange Act is recorded, processed,
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
Southwest’s management, including its Chief Executive
Officer and Chief Financial Officer, as appropriate to
allow timely decisions regarding required disclosure.
Management, with the participation of the Chief
Executive Officer and Chief Financial Officer,
evaluated the effectiveness of Southwest’s disclosure
controls and procedures as of December 31, 2008.
Based on this evaluation, Southwest’s Chief Executive
Officer and Chief Financial Officer have concluded that
Southwest’s disclosure controls and procedures were
effective as of December 31, 2008 at the reasonable
assurance level.
Management’s Annual Report on Internal
Control over Financial Reporting. Management of
Southwest is responsible for establishing and
maintaining adequate internal control over financial
reporting (as defined in Rule 13a-15(f) of the
Exchange Act). Southwest’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 in accordance with
accounting principles generally accepted in the
United States.
Because of its inherent limitations, internal
control over financial reporting may not prevent or
detect misstatements. 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 Officer and Chief Financial Officer,
evaluated the effectiveness of Southwest’s internal
control over financial reporting as of December 31,
2008. 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 evaluation, management, with the participation of
the Chief Executive Officer and Chief Financial Officer,
76