Southwest Airlines 2009 Annual Report Download - page 61

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31,
(In millions) 2009 2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................... $ 99 $ 178 $ 645
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization ........................................ 616 599 555
Unrealized loss on fuel derivative instruments ............................ 14 206 (353)
Deferred income taxes .............................................. 72 56 328
Amortization of deferred gains on sale and leaseback of aircraft .............. (12) (12) (14)
Share-based compensation expense .................................... 13 18 37
Excess tax benefits from share-based compensation arrangements ............ (1) — (28)
Changes in certain assets and liabilities:
Accounts and other receivables ................................... 40 71 (38)
Other current assets ............................................. (27) (21) (73)
Accounts payable and accrued liabilities ............................ 59 (98) 149
Air traffic liability .............................................. 81 32 131
Cash collateral received from (provided to) fuel derivative
counterparties ............................................... (90) (2,240) 1,460
Other, net ........................................................ 121 (310) 46
Net cash provided by (used in) operating activities .................... 985 (1,521) 2,845
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net ................................... (585) (923) (1,331)
Purchases of short-term investments ....................................... (6,106) (5,886) (5,086)
Proceeds from sales of short-term investments ............................... 5,120 5,831 4,888
Other, net ............................................................ 2 — —
Net cash used in investing activities ................................ (1,569) (978) (1,529)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt ............................................... 455 1,000 500
Proceeds from credit line borrowing ....................................... 83 91 —
Proceeds from revolving credit facility ..................................... — 400 —
Proceeds from sale leaseback transactions ................................... 381 173 —
Proceeds from Employee stock plans ....................................... 20 117 139
Payments of long-term debt and capital lease obligations ....................... (86) (55) (122)
Payments of revolving credit facility ....................................... (400) — —
Payment of credit line borrowing .......................................... (97) — —
Payments of cash dividends .............................................. (13) (13) (14)
Repurchase of common stock ............................................. — (54) (1,001)
Excess tax benefits from share-based compensation arrangements ................ 1 — 28
Other, net ............................................................ (14) (5) (23)
Net cash provided by (used in) financing activities .................... 330 1,654 (493)
NET CHANGE IN CASH AND CASH EQUIVALENTS ........................ (254) (845) 823
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .............. 1,368 2,213 1,390
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..................... $1,114 $ 1,368 $ 2,213
SUPPLEMENTAL DISCLOSURES
Cash payments for:
Interest, net of amount capitalized ......................................... $ 152 $ 100 $ 63
Income taxes .......................................................... $ 5 $ 71 $ 94
See accompanying notes.
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