Southwest Airlines 2011 Annual Report Download - page 96

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construction. The Company has recorded and will continue to record an asset and corresponding obligation for
the cost of the LFMP project as the construction of the facility occurs. As of December 31, 2011, the Company
had incurred construction costs of $202 million, classified as both an asset as a component of Ground property
and equipment and a corresponding liability as a component of Other non-current liabilities, respectively, in its
Consolidated Balance Sheet. Upon completion of the LFMP project, the Company expects to begin depreciating
the assets over their estimated useful lives, and reduce the corresponding liabilities primarily through the
Company’s airport rental payments to the City of Dallas.
Contingencies
The Company is from time to time subject to various legal proceedings and claims arising in the ordinary
course of business, including, but not limited to, examinations by the IRS. The Company’s management does not
expect that the outcome in any of its currently ongoing legal proceedings or the outcome of any adjustments
presented by the IRS, individually or collectively, will have a material adverse effect on the Company’s financial
condition, results of operations, or cash flow.
5. Other Assets and Accrued Liabilities
(in millions)
December 31,
2011
December 31,
2010
Derivative contracts ............................ $253 $379
Intangible assets ............................... 155 60
Non-current investments ........................ 97 97
Other ....................................... 121 70
Other assets .............................. $626 $606
(in millions)
December 31,
2011
December 31,
2010
Retirement plans .............................. $110 $171
Aircraft rentals ................................ 57 27
Vacation pay ................................. 248 200
Health ....................................... 56 43
Derivative contracts ............................ 85 79
Workers compensation .......................... 162 142
Other ....................................... 278 201
Accrued liabilities ......................... $996 $863
(in millions)
December 31,
2011
December 31,
2010
Postretirement obligation ........................ $107 $ 94
Non-current leasehold interest .................... 311 —
Construction obligation ......................... 202 86
Other ....................................... 290 285
Other non-current liabilities .................. $910 $465
6. Revolving Credit Facility and Short-Term Borrowing
On April 28, 2011, the Company entered into a new $800 million unsecured revolving credit facility
expiring in April 2016 and terminated its previous $600 million facility, which would have expired in October
2012. The Company also terminated AirTran’s previous facility on the acquisition date. Other than an increased
90