Southwest Airlines 2009 Annual Report Download - page 87

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
December 31, 2009
12. COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) includes changes in the fair value of certain financial derivative instruments,
which qualify for hedge accounting, unrealized gains and losses on certain investments, and adjustments to
recognize the funded status of the Company’s postretirement obligations. See Note 15 for further information on
Employee retirement plans. The differences between “Net income” and “Comprehensive income (loss)” for these
years are as follows:
(In millions) 2009 2008 2007
Net income ........................................................... $ 99 $ 178 $ 645
Unrealized gain (loss) on derivative instruments, net of deferred taxes of $226,
($1,358) and $408 ................................................ 366 (2,166) 636
Other, net of deferred taxes of $25, ($38) and $14 ......................... 40 (59) 23
Total other comprehensive income (loss) ................................ 406 (2,225) 659
Comprehensive income (loss) ............................................ $505 $(2,047) $1,304
A rollforward of the amounts included in “Accumulated other comprehensive income (loss)”, net of taxes
for 2009, 2008, and 2007, is shown below:
(In millions)
Fuel hedge
derivatives
Interest
rate
derivatives Other
Accumulated
other
comprehensive
income (loss)
Balance at December 31, 2007 ............................. $1,220 $— $ 21 $ 1,241
2008 changes in fair value ............................ (1,528) (46) (13) (1,587)
Reclassification to earnings ........................... (638) — — (638)
Balance at December 31, 2008 ............................. $ (946) $ (46) $ 8 $ (984)
2009 changes in fair value ............................ (12) 27 13 28
Reclassification to earnings ........................... 378 — — 378
Balance at December 31, 2009 ............................. $ (580) $ (19) $ 21 $ (578)
13. COMMON STOCK
The Company has one class of capital stock, its common stock. Holders of shares of common stock are
entitled to receive dividends when and if declared by the Board of Directors and are entitled to one vote per share
on all matters submitted to a vote of the shareholders. At December 31, 2009, the Company had 46 million shares
of common stock reserved for issuance pursuant to Employee stock benefit plans (of which 20 million shares had
not been granted) through various share-based compensation arrangements. See Note 14.
In 2007, the Company’s Board of Directors authorized two separate programs for the repurchase of up to a
total of $800 million of the Company’s common stock—$300 million authorized in March 2007, and $500 million
authorized in May 2007. Repurchases were made in accordance with applicable securities laws in the open market
or in private transactions from time to time, depending on market conditions. These programs, which were
completed during third quarter 2007, resulted in the repurchase of a total of approximately 53 million shares.
During January 2008, the Company’s Board of Directors authorized an additional program for the
repurchase of up to $500 million of the Company’s Common Stock. Repurchases have been or will be made in
accordance with applicable securities laws in the open market or in private transactions from time to time,
79