Southwest Airlines 2015 Annual Report Download - page 88

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Southwest Airlines Co.
Consolidated Statement of Cash Flows
(in millions)
Year ended December 31,
2015 2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,181 $ 1,136 $ 754
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 1,015 938 867
Unrealized (gain) loss on fuel derivative instruments 113 279 (5)
Deferred income taxes (109) 501 50
Changes in certain assets and liabilities:
Accounts and other receivables (88) 54 (17)
Other assets 103 142 (46)
Accounts payable and accrued liabilities 961 36 343
Air traffic liability 94 326 400
Cash collateral received from (provided to) derivative counterparties (570) (233) 57
Other, net (462) (277) 74
Net cash provided by operating activities 3,238 2,902 2,477
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (2,041) (1,748) (1,433)
Assets constructed for others (102) (80) (14)
Purchases of short-term investments (1,986) (3,080) (3,135)
Proceeds from sales of short-term and other investments 2,223 3,185 3,198
Other, net (7) (4) —
Net cash used in investing activities (1,913) (1,727) (1,384)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 500 300 —
Proceeds from Employee stock plans 46 110 96
Reimbursement for assets constructed for others 24 27 —
Proceeds from termination of interest rate derivative instrument 12 — —
Payments of long-term debt and capital lease obligations (213) (561) (313)
Payments of cash dividends (180) (139) (71)
Repayment of construction obligation (10) (11) (5)
Repurchase of common stock (1,180) (955) (540)
Other, net (23) (19) (18)
Net cash used in financing activities (1,024) (1,248) (851)
NET CHANGE IN CASH AND CASH EQUIVALENTS 301 (73) 242
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,282 1,355 1,113
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,583 $ 1,282 $ 1,355
CASH PAYMENTS FOR:
Interest $ 105 $ 128 $ 133
Income taxes $ 1,440 $ 155 $ 346
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
Flight equipment under capital leases $ 193 $ 153 $ 26
Assets constructed for others $ 192 $ 88 $ 105
See accompanying notes.
80