Southwest Airlines 2010 Annual Report Download - page 95

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The following table presents the Company’s assets and liabilities that are measured at fair value on a
recurring basis at December 31, 2010 and 2009:
Fair Value Measurements at Reporting Date Using
Description
December 31,
2010
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 ......................... $1,262 $1,261 $ 1 $ —
Short-term investments:
Treasury bills ....................... 2,009 2,009 — —
Certificates of deposit ................. 267 — 267 —
Noncurrent investments (a) ................ 93 — — 93
Interest rate derivatives (see Note 10) ........ 73 — 73 —
Fuel derivatives:
Swap contracts (b) ................... 33 — 33 —
Option contracts (b) .................. 233 — — 233
Swap contracts (c) ................... 286 — 286 —
Option contracts (c) .................. 788 — — 788
Other available-for-sale securities ........... 39 34 — 5
Total assets ............................. $5,083 $3,304 $ 660 $1,119
Liabilities
Fuel derivatives:
Swap contracts (b) ..................... (387) $ — $(387) $ —
Option contracts (b) .................... (119) — — (119)
Swap contracts (c) ..................... (476) — (476) —
Option contracts (c) .................... (216) — — (216)
Interest rate derivatives (see Note 10) ........ (4) — (4) —
Total liabilities .......................... $(1,202) $ — $(867) $ (335)
(a) Auction rate securities 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 cash
collateral provided to counterparties. See Note 10.
(c) In the Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral
received from counterparties. See Note 10.
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