Southwest Airlines 2015 Annual Report Download - page 131

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Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Southwest Airlines Co.
We have audited the accompanying consolidated balance sheet of Southwest Airlines Co. as of
December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive
income, stockholders’ equity, and cash flows for each of the three years in the period ended
December 31, 2015. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Southwest Airlines Co. at December 31, 2015 and 2014, and the
consolidated results of its operations and its cash flows for each of the three years in the period ended
December 31, 2015, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, the Company has changed its method
of accounting for its co-brand credit card agreement to apply the amendments to the FASB Accounting
Standards Codification resulting from Accounting Standards Update No. 2009-13, Multiple
Deliverable Revenue Arrangements, effective July 1, 2015.
As discussed in Note 1 to the consolidated financial statements, the Company has adopted ASU 2015-
17 Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), Southwest Airlines Co.’s internal control over financial reporting as of
December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our
report dated February 2, 2016 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Dallas, Texas
February 2, 2016
123