Southwest Airlines 2014 Annual Report Download - page 111
Download and view the complete annual report
Please find page 111 of the 2014 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
 |
 |
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. LONG-TERM DEBT
(in millions) December 31, 2014 December 31, 2013
5.25% Notes due 2014 — 357
5.75% Notes due 2016 313 320
5.25% Convertible Senior Notes due 2016 113 115
5.125% Notes due 2017 316 322
Fixed-rate 717 Aircraft Notes payable through 2017—10.37% — 41
French Credit Agreements due 2018—1.06% 36 46
Fixed-rate 737 Aircraft Notes payable through 2018—7.02% 24 30
2.75% Notes due 2019 300 —
Term Loan Agreement due 2019—6.315% 178 210
Term Loan Agreement due 2019—6.84% 73 85
Term Loan Agreement due 2020—5.223% 372 413
Floating-rate 737 Aircraft Notes payable through 2020 300 340
Pass Through Certificates due 2022—6.24% 355 371
7.375% Debentures due 2027 134 136
Capital leases (Note 7) 199 56
$ 2,713 $ 2,842
Less current maturities 258 629
Less debt discount and issuance costs 21 22
$ 2,434 $ 2,191
AirTran Long-Term Debt
AirTran Holdings previously entered into aircraft purchase financing facilities, under which a
total of 22 737-700 aircraft were financed as of December 31, 2014.
As of December 31, 2014, after prepaying aircraft secured term loans for eight aircraft during
2012 and the first half of 2013, 19 Boeing 737 aircraft remain that were financed under floating-rate
facilities. Each note is secured by a first mortgage on the aircraft to which it relates. The notes bear
interest at a floating rate per annum equal to a margin plus the three or six-month LIBOR in effect at
the commencement of each semi-annual or three-month period, as applicable. As of December 31,
2014, the weighted average interest rate was 1.66 percent. Principal and interest under the notes are
payable semi-annually or every three months as applicable. As of December 31, 2014, the remaining
debt outstanding may be prepaid without penalty under all aircraft loans provided under such facilities.
The notes mature in years 2016 to 2020. As discussed further in Note 10, a portion of the above
103