Southwest Airlines 2015 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2015 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 148

  • 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

3. NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted net income per share (in millions
except per share amounts):
Year ended December 31,
2015 2014 2013
NUMERATOR:
Net income $ 2,181 $ 1,136 $ 754
Incremental income effect of interest on 5.25% convertible notes 4 4 3
Net income after assumed conversion $ 2,185 $ 1,140 $ 757
DENOMINATOR:
Weighted-average shares outstanding, basic 661 687 710
Dilutive effect of Employee stock options and restricted stock units 2 3 2
Dilutive effect of 5.25% convertible notes 6 6 6
Adjusted weighted-average shares outstanding, diluted 669 696 718
NET INCOME PER SHARE:
Basic $ 3.30 $ 1.65 $ 1.06
Diluted $ 3.27 $ 1.64 $ 1.05
Potentially dilutive amounts excluded from calculations:
Stock options and restricted stock units — — 9
4. COMMITMENTS AND CONTINGENCIES
Commitments
The Company has contractual obligations and commitments primarily with regard to future purchases
of aircraft, repayment of debt, and lease arrangements. During the year ended December 31, 2015, the
Company purchased 19 new 737-800 aircraft from Boeing and eight used 737-700 aircraft from third
parties. In addition, the Company also leased 16 737-700 aircraft from third parties, and retired from
service four of its older aircraft (two 737-300 and two 737-500).
90