Southwest Airlines 2010 Annual Report Download - page 73

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31,
(In millions) 2010 2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ..................................................... $ 459 $ 99 $ 178
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization ...................................... 628 616 599
Unrealized loss on fuel derivative instruments ......................... 139 14 206
Deferred income taxes ............................................ 133 72 56
Amortization of deferred gains on sale and leaseback of aircraft ........... (14) (12) (12)
Changes in certain assets and liabilities: ..............................
Accounts and other receivables ..................................... (26) 40 71
Other current assets .............................................. (8) (27) (21)
Accounts payable and accrued liabilities .............................. 193 59 (98)
Air traffic liability ............................................... 153 81 32
Cash collateral received from (provided to) fuel derivative counterparties . . . 265 (90) (2,240)
Other, net ...................................................... (361) 133 (292)
Net cash provided by (used in) operating activities ...................... 1,561 985 (1,521)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net ............................. (493) (585) (923)
Purchases of short-term investments ................................. (5,624) (6,106) (5,886)
Proceeds from sales of short-term investments ......................... 4,852 5,120 5,831
Other, net ...................................................... — 2 —
Net cash used in investing activities ................................. (1,265) (1,569) (978)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt ......................................... — 455 1,000
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 ................................ 55 20 117
Payments of long-term debt and capital lease obligations ................. (155) (86) (55)
Payments of revolving credit facility ................................. — (400) —
Payment of credit line borrowing ................................... (44) (97) —
Payments of cash dividends ........................................ (13) (13) (13)
Repurchase of common stock ...................................... — — (54)
Other, net ...................................................... 8 (13) (5)
Net cash provided by (used in) financing activities (149) 330 1,654
NET CHANGE IN CASH AND CASH EQUIVALENTS .............. 147 (254) (845)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .... 1,114 1,368 2,213
CASH AND CASH EQUIVALENTS AT END OF PERIOD ........... $1,261 $ 1,114 $ 1,368
SUPPLEMENTAL DISCLOSURES
Cash payments for:
Interest, net of amount capitalized ................................... $ 135 $ 152 $ 100
Income taxes ................................................... $ 274 $ 5 $ 71
See accompanying notes.
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