Southwest Airlines 2014 Annual Report Download - page 53

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Issuer Repurchases
Issuer Purchases of Equity Securities (1)
(a) (b) (c) (d)
Period
Total number
of shares
purchased
Average
price paid
per share
Total number of
shares purchased
as part of publicly
announced plans
or programs
Maximum dollar
value of shares that
may yet be purchased
under the plans
or programs
October 1, 2014 through
October 31, 2014 1,107,489 $ — (2) 1,107,489 $ 580,356,300
November 1, 2014 through
November 30, 2014 3,810,008 $ — (3) 3,810,008 $ 380,356,300 (3)
December 1, 2014 through
December 31, 2014 — $ — — $ 380,356,300
Total 4,917,497 4,917,497
(1) In May 2014, the Company’s Board of Directors authorized the repurchase of up to $1 billion of the
Company’s common stock. Repurchases are made in accordance with applicable securities laws in
open market, private, or in accelerated repurchase transactions from time to time, depending on
market conditions, and may be discontinued at any time.
(2) Under an accelerated share repurchase program entered into by the Company with a third party
financial institution in third quarter 2014 (“Third Quarter ASR Program”), the Company paid $200
million and received an initial delivery of 5,040,323 shares during third quarter 2014, representing
an estimated 75 percent of the shares to be purchased by the Company under the Third Quarter ASR
Program based on a price of $29.76 per share, which was the closing price of the Company’s
common stock on the New York Stock Exchange on August 15, 2014. Final settlement of this Third
Quarter ASR Program occurred in October 2014 and was determined based generally on a discount
to the volume-weighted average price per share of the Company’s common stock during a
calculation period completed in October 2014. Upon settlement, the third party financial institution
delivered 1,107,489 additional shares of the Company’s common stock to the Company. In total, the
average purchase price per share for the 6,147,812 shares repurchased under the Third Quarter ASR
Program, upon completion of the Third Quarter ASR Program in October 2014, was $32.53.
(3) Under an accelerated share repurchase program entered into by the Company with a third party financial
institution in fourth quarter 2014 (“Fourth Quarter ASR Program”), the Company paid $200 million and
received an initial delivery of 3,810,008 shares during fourth quarter 2014, representing an estimated
75 percent of the shares to be purchased by the Company under the Fourth Quarter ASR Program based
on a price of $39.37 per share, which was the closing price of the Company’s common stock on the New
York Stock Exchange on November 11, 2014. The specific number of shares that the Company ultimately
will repurchase under the Fourth Quarter ASR Program will be determined based generally on a discount
to the volume-weighted average price per share of the Company’s common stock during a calculation
period to be completed in first quarter 2015. At settlement, under certain circumstances, the third party
financial institution may be required to deliver additional shares of common stock to the Company, or
under certain circumstances, the Company may be required to deliver shares of its common stock or may
elect to make a cash payment to the third party financial institution.
Item 6. Selected Financial Data
The following financial information, for the five years ended December 31, 2014, has been derived
from the Company’s Consolidated Financial Statements. This information should be viewed in conjunction
with the Consolidated Financial Statements and related notes thereto included elsewhere herein. This
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