Southwest Airlines 2013 Annual Report Download - page 71

have totaled 111 million shares for $1.2 billion of the $1.5 billion in total authorized by the Board. During 2014,
the Company currently intends to complete the remaining authorized share repurchases of the $1.5 billion in total
authorized by the Board.
Airport Projects
The Company has commitments associated with various airport improvement projects that will impact its
future liquidity needs in differing ways. These projects include the construction of new facilities and the
rebuilding or modernization of existing facilities and are discussed in more detail in Note 4 to the Consolidated
Financial Statements.
Dallas Love Field
For the rebuilding of the facilities at Dallas Love Field, the Company has guaranteed principal, premium,
and interest on $456 million in bonds issued by the Love Field Airport Modernization Corporation (“LFAMC”)
that have been utilized to fund the majority of the project. Repayment of the bonds will be through the “Facilities
Payments” described below. Reimbursement of the Company for its payment of Facilities Payments are expected
to be made through recurring ground rents, fees, and other revenues collected at the airport.
Prior to the issuance of the bonds by the LFAMC, the Company entered into two separate funding
agreements: (i) a “Facilities Agreement” pursuant to which the Company is obligated to make debt service
payments on the principal and interest amounts associated with the bonds (Facilities Payments), less other
sources of funds the City of Dallas may apply to the repayment of the bonds (including but not limited to
passenger facility charges collected from passengers originating from the Airport); and (ii) a “Revenue Credit
Agreement” pursuant to which the City of Dallas will reimburse the Company for the Facilities Payments made
by the Company.
A majority of the monies transferred from the City of Dallas to the Company under the Revenue Credit
Agreement are expected to originate from a reimbursement account created in the “Use and Lease Agreement”
between the City of Dallas and the Company. The Use and Lease Agreement is a 20-year agreement providing
for, among other things, the Company’s lease of space at the Airport from the City of Dallas. The remainder of
such monies transferred from the City of Dallas to the Company under the Revenue Credit Agreement is
expected to originate from (i) use and lease agreements with other airlines, (ii) various concession agreements,
and (iii) other airport miscellaneous revenues.
The Company’s liquidity could be impacted by this project to the extent there are timing differences
between the Company’s payment of the Facilities Payments pursuant to the Facilities Agreement and the transfer
of monies back to the Company pursuant to the Revenue Credit Agreement; however, the Company does not
currently expect that to occur. The project is not expected to have a significant impact on the Company’s capital
resources or financial position.
Fort Lauderdale-Hollywood International Airport
The Company has committed to oversee and manage the design and construction of Fort-Lauderdale-
Hollywood International Airport’s Terminal 1 Modernization Project, including the design and construction of a
new five-gate Concourse A with an international processing facility, at a cost not to exceed $295 million.
Funding for the project will come directly from Broward County aviation sources, but will flow through the
Company in its capacity as manager of the project. In general, as work is being completed on the project by
various contractors, invoices would be submitted to Broward County for initial payment to the Company, which
would then make such payments to the contractors performing the work.
The Company’s liquidity could be impacted by this project to the extent there are instances in which the
Company chooses to make payments to contractors prior to receiving initial payment from Broward County,
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