Southwest Airlines 2012 Annual Report Download - page 99
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(in millions)
December 31,
2012
December 31,
2011
Postretirement obligation ............................ $ 148 $ 107
Non-current lease-related obligations .................. 376 311
Airport construction obligation ....................... 331 202
Other deferred compensation ......................... 141 125
Other ........................................... 128 165
Other non-current liabilities ........................ $ 1,124 $ 910
Other Operating Expenses
Other operating expenses consist of distribution costs, advertising expenses, personnel expenses,
professional fees, and other operating costs, none of which individually exceed 10 percent of Operating expenses.
6. REVOLVING CREDIT FACILITY
The Company has access to an $800 million unsecured revolving credit facility expiring in April 2016 with
a group of banks. At the Company’s option, interest on the facility can be calculated on one of several different
bases. The facility also contains a financial covenant requiring a minimum coverage ratio of adjusted pre-tax
income to fixed obligations, as defined. As of December 31, 2012 and 2011, the Company was in compliance
with this covenant and there were no amounts outstanding under the revolving credit facility.
7. LONG-TERM DEBT
(in millions)
December 31,
2012
December 31,
2011
French Credit Agreements due 2012.............................. $ — $ 7
6.5% Notes due 2012 ......................................... — 387
5.25% Notes due 2014 ........................................ 366 375
5.75% Notes due 2016 ........................................ 331 329
5.25% Convertible Senior Notes due 2016 ......................... 117 118
5.125% Notes due 2017 ....................................... 329 336
Fixed-rate 717 Aircraft Notes payable through 2017—10.36% ......... 57 67
French Credit Agreements due 2018—1.21% ...................... 56 64
Fixed-rate 737 Aircraft Notes payable through 2018—7.02% .......... 36 42
Term Loan Agreement due 2019—6.315% ........................ 241 269
Term Loan Agreement due 2019—6.84% ......................... 95 106
Term Loan Agreement due 2020—5.223% ........................ 451 487
Floating-rate 737 Aircraft Notes payable through 2020 ............... 527 604
Pass Through Certificates due 2022—6.24% ....................... 394 411
7.375% Debentures due 2027 ................................... 138 135
Capital leases (Note 8) ........................................ 37 40
3,175 3,777
Less current maturities ........................................ 271 644
Less debt discount and issuance costs ............................. 21 26
$ 2,883 $ 3,107
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