Southwest Airlines 2014 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 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.

Page out of 156

  • 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

derivatives, amounts posted as collateral, and applicable collateral posting threshold amounts as of
December 31, 2014, at which such postings are triggered:
Counterparty (CP)
(in millions) A B C D E F Other(a) Total
Fair value of fuel
derivatives $(333) $(136) $(122) $(219) $(66) $(86) $(39) $(1,001)
Cash collateral held (by)
CP (50) (98) (57) — (23) (38) — (266)
Aircraft collateral
pledged to CP (134) — — — — — — (134)
Letters of credit (LC) (100) — — (150) — — — (250)
Option to substitute LC
for aircraft <(400)(g)
(100) to
(500)(d) N/A
(150) to
(550)(d) N/A N/A
Option to substitute LC
for cash
(50) to
(150)(d) >(500)
(100) to
(150)(e)
(75) to (150)
or >(550)(d) N/A (f)
If credit rating is
investment grade, fair
value of fuel derivative
level at which:
Cash is provided to CP (50) to (200)
or >(600)
(50) to (100)
or >(500) >(75)
(75) to (150)
or >(550) >(50) >(50)
Cash is received
from CP >50 >150 >175(c) >200 >30 >(50)
Aircraft or cash can be
pledged to CP as
collateral
(200) to
(600)(d)
(100) to
(500)(d) N/A
(150) to
(550)(d) N/A N/A
If credit rating is non-
investment grade, fair
value of fuel derivative
level at which:
Cash is provided to CP (0) to (200)
or >(600)
(0) to (100)
or >(500) (b)
(0) to (150)
or >(550) (b) (b)
Cash is received
from CP (b) (b) (b) (b) (b) (b)
Aircraft or cash can be
pledged to CP as
collateral
(200) to
(600)
(100) to
(500) N/A
(150) to
(550) N/A N/A
(a) Individual counterparties with fair value of fuel derivatives <$25 million.
(b) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.
(c) Thresholds may vary based on changes in credit ratings within investment grade.
(d) The Company has the option of providing cash, letters of credit, or pledging aircraft as collateral.
(e) The Company has the option of providing cash or letters of credit as collateral.
(f)The Company has the option to substitute letters of credit for 100 percent of cash collateral requirement.
(g) The Company has the option of providing letters of credit in addition to aircraft collateral if the appraised value of the
aircraft does not meet the collateral requirements.
122