Southwest Airlines 2013 Annual Report Download - page 88

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SOUTHWEST AIRLINES CO.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Year ended December 31,
2013 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................... $ 754 $ 421 $ 178
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization .................................... 867 844 715
Unrealized (gain) loss on fuel derivative instruments ................... (5) (189) 90
Deferred income taxes ........................................... 50 251 123
Changes in certain assets and liabilities:
Accounts and other receivables .................................... (17) (33) (26)
Other assets ................................................... (46) (104) (196)
Accounts payable and accrued liabilities ............................ 343 186 253
Air traffic liability .............................................. 400 334 262
Cash collateral received from (provided to) derivative counterparties ...... 57 233 (195)
Other, net ..................................................... 74 121 152
Net cash provided by operating activities ........................... 2,477 2,064 1,356
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment to acquire AirTran, net of AirTran cash on hand ............... — — (35)
Payments for purchase of property and equipment, net ................. (1,447) (1,348) (968)
Purchases of short-term investments ................................ (3,135) (2,481) (5,362)
Proceeds from sales of short-term and other investments ................ 3,198 2,996 5,343
Net cash used in investing activities ............................... (1,384) (833) (1,022)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Employee stock plans ............................... 96 27 20
Proceeds from termination of interest rate derivative instrument .......... — 38 76
Payments of long-term debt and capital lease obligations ............... (313) (578) (540)
Payments of convertible debt ..................................... — — (81)
Payments of cash dividends ...................................... (71) (22) (14)
Repayment of construction obligation .............................. (5) — —
Repurchase of common stock ..................................... (540) (400) (225)
Other, net ..................................................... (18) (12) (2)
Net cash used in financing activities ............................... (851) (947) (766)
NET CHANGE IN CASH AND CASH EQUIVALENTS ............. 242 284 (432)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD . . $ 1,113 $ 829 $ 1,261
CASH AND CASH EQUIVALENTS AT END OF PERIOD .......... 1,355 1,113 829
CASH PAYMENTS FOR:
Interest, net of amount capitalized ................................. $ 133 $ 153 $ 185
Income taxes .................................................. $ 346 $ 100 $ 13
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
Assets constructed for others ..................................... $ 105 $ 129 $ 116
Fair value of equity consideration given to acquire AirTran ............. $ — $ — $ 523
Fair value of common stock issued for conversion of debt .............. $ — $ — $ 78
See accompanying notes.
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