Southwest Airlines 2014 Annual Report Download - page 147

Download and view the complete annual report

Please find page 147 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

Securities Authorized for Issuance under Equity Compensation Plans
The following table provides information as of December 31, 2014, regarding compensation
plans (including individual compensation arrangements) under which equity securities of the Company
are authorized for issuance.
Equity Compensation Plan Information
Plan Category
Number of Securities
to be Issued Upon
Exercise of
Outstanding
Options,
Warrants, and
Rights
(a)
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants, and
Rights
(b)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected
in Column (a))
(c)
Equity Compensation Plans
Approved by Security Holders 4,523,901 (1) $ 15.18 (2) 20,182,382 (3)
Equity Compensation Plans not
Approved by Security Holders 30,434 $ 14.15 —
Total 4,554,335 $ 15.17 (2) 20,182,382
(1) Includes 2,446,658 shares of common stock issuable upon exercise of outstanding stock options and
2,077,243 restricted share units settleable in shares of the Company’s common stock.
(2) The weighted-average exercise price does not take into account the restricted share units discussed in
footnote (1) above because the restricted share units do not have an exercise price upon vesting.
(3) Of these shares, (i) 10,590,011 shares remained available for issuance under the Company’s tax-qualified
employee stock purchase plan; and (ii) 9,592,371 shares remained available for issuance under the
Company’s 2007 Equity Incentive Plan in connection with the exercise of stock options and stock
appreciation rights, the settlement of awards of restricted stock, restricted stock units, and phantom
shares, and the grant of unrestricted shares of common stock; however, no more than 685,848 shares
remain available for grant in connection with awards of unrestricted shares of common stock, stock-
settled phantom shares, and awards to non-Employee members of the Board. These shares are in addition
to the shares reserved for issuance pursuant to outstanding awards included in column (a).
See Note 9 to the Consolidated Financial Statements for information regarding the material
features of the above plans. Each of the above plans provides that the number of shares with respect to
which options may be granted, the number of shares of common stock subject to an outstanding option,
and the number of restricted share units granted shall be proportionately adjusted in the event of a
subdivision or consolidation of shares or the payment of a stock dividend on common stock, and the
purchase price per share of outstanding options shall be proportionately revised.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item 13 will be set forth under the heading “Certain
Relationships and Related Transactions, and Director Independence” in the Proxy Statement for the
Company’s 2015 Annual Meeting of Shareholders and is incorporated herein by reference.
Item 14. Principal Accounting Fees and Services
The information required by this Item 14 will be set forth under the heading “Relationship with
Independent Auditors” in the Proxy Statement for the Company’s 2015 Annual Meeting of
Shareholders and is incorporated herein by reference.
139