Southwest Airlines 2009 Annual Report Download - page 85

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
December 31, 2009
Description December 31, 2008
Fair Value Measurements at Reporting Date Using
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
Assets
Cash equivalents ..................... $1,368 $1,368 $ — $ —
Short-term investments ................ 435 397 — 38
Noncurrent investments (a) ............. 162 — — 162
Interest rate derivatives ................ 83 — 83 —
Fuel derivatives (b) ................... 788 — 406 382
Other available-for-sale securities ........ 32 24 — 8
Total assets ......................... $2,868 $1,789 $ 489 $ 590
Liabilities
Fuel derivatives (b) ................... $(1,780) $(534) $(1,246)
(a) Included in “Other assets” in the Consolidated Balance Sheet
(b) In the Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of $240 million
in cash collateral provided to counterparties.
The following table presents the Company’s activity for assets measured at fair value on a recurring basis
using significant unobservable inputs (Level 3) for the years ended December 31, 2009 and 2008:
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(in millions)
Fuel
Derivatives
Auction Rate
Securities (a)
Other
Securities Total
Balance at December 31, 2007 ............................. $1,725 $ — $ 12 $ 1,737
Transfers to Level 3 ..................................... — 463 — 463
Total gains or (losses) (realized or unrealized)
Included in earnings ................................. 205 — (4) 201
Included in other comprehensive income ................ (2,233) (11) — (2,244)
Purchases and settlements (net) ............................ (561) (252) — (813)
Balance at December 31, 2008 ............................. $ (864) $ 200(b) $ 8 $ (656)
The amount of total gains or (losses) for the period included in
earnings attributable to the change in unrealized gains or losses
relating to assets still held at December 31, 2008 ............ $ 105 $— $ (4) $ 101
(a) Includes those classified as short-term investments and noncurrent investments.
(b) Includes $91 classified as trading securities.
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