þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2011
|
|
or
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ________ to ________
|
TEXAS
|
74-1563240
|
(State or other jurisdiction of
|
(IRS Employer
|
incorporation or organization)
|
Identification No.)
|
P.O. Box 36611
|
|
Dallas, Texas
|
75235-1611
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
þ
|
Accelerated filer
¨
|
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
¨
|
|
Number of shares of Common Stock outstanding as of the close of business on August 3, 2011: 803,997,967
|
|
|
|
|||||||
|
June 30,
|
December 31,
|
||||||
|
2011 |
2010
|
||||||
ASSETS
|
|
|||||||
Current assets:
|
|
|||||||
Cash and cash equivalents
|
$ | 1,595 | $ | 1,261 | ||||
Short-term investments
|
2,779 | 2,277 | ||||||
Accounts and other receivables
|
389 | 195 | ||||||
Inventories of parts and supplies, at cost
|
394 | 243 | ||||||
Deferred income taxes
|
- | 214 | ||||||
Prepaid expenses and other current assets
|
264 | 89 | ||||||
Total current assets
|
5,421 | 4,279 | ||||||
|
||||||||
Property and equipment, at cost:
|
||||||||
Flight equipment
|
15,255 | 13,991 | ||||||
Ground property and equipment
|
2,286 | 2,122 | ||||||
Deposits on flight equipment purchase contracts
|
226 | 230 | ||||||
|
17,767 | 16,343 | ||||||
Less allowance for depreciation and amortization
|
6,046 | 5,765 | ||||||
|
11,721 | 10,578 | ||||||
Goodwill
|
971 | - | ||||||
Other assets
|
832 | 606 | ||||||
|
$ | 18,945 | $ | 15,463 | ||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 1,049 | $ | 739 | ||||
Accrued liabilities
|
1,130 | 863 | ||||||
Air traffic liability
|
2,149 | 1,198 | ||||||
Current maturities of long-term debt
|
990 | 505 | ||||||
Total current liabilities
|
5,318 | 3,305 | ||||||
|
||||||||
Long-term debt less current maturities
|
3,242 | 2,875 | ||||||
Deferred income taxes
|
2,263 | 2,493 | ||||||
Deferred gains from sale and leaseback of aircraft
|
82 | 88 | ||||||
Other non-current liabilities
|
838 | 465 | ||||||
Stockholders' equity:
|
||||||||
Common stock
|
808 | 808 | ||||||
Capital in excess of par value
|
1,219 | 1,183 | ||||||
Retained earnings
|
5,398 | 5,399 | ||||||
Accumulated other comprehensive loss
|
(107 | ) | (262 | ) | ||||
Treasury stock, at cost
|
(116 | ) | (891 | ) | ||||
Total stockholders' equity
|
7,202 | 6,237 | ||||||
|
$ | 18,945 | $ | 15,463 | ||||
|
||||||||
|
||||||||
See accompanying notes.
|
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
|
|
|
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||||||||||
Net income
|
$ | 161 | $ | 112 | $ | 166 | $ | 123 | ||||||||
Adjustments to reconcile net income to
|
||||||||||||||||
cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
176 | 154 | 332 | 308 | ||||||||||||
Unrealized (gain) loss on fuel derivative instruments
|
(129 | ) | 166 | (119 | ) | 187 | ||||||||||
Deferred income taxes
|
95 | 63 | 123 | 75 | ||||||||||||
Amortization of deferred gains on sale and
|
||||||||||||||||
leaseback of aircraft
|
(3 | ) | (3 | ) | (7 | ) | (7 | ) | ||||||||
Changes in certain assets and liabilities (excluding the effects of acquired business):
|
||||||||||||||||
Accounts and other receivables
|
(21 | ) | (42 | ) | (107 | ) | (108 | ) | ||||||||
Other current assets
|
(46 | ) | 5 | (138 | ) | (14 | ) | |||||||||
Accounts payable and accrued liabilities
|
67 | 279 | 305 | 195 | ||||||||||||
Air traffic liability
|
64 | 86 | 576 | 442 | ||||||||||||
Cash collateral received from (provided to) fuel
|
||||||||||||||||
derivative counterparties
|
(49 | ) | 130 | (20 | ) | 135 | ||||||||||
Other, net
|
(78 | ) | (410 | ) | 91 | (423 | ) | |||||||||
Net cash provided by operating activities
|
237 | 540 | 1,202 | 913 | ||||||||||||
|
||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Payment to acquire AirTran, net of AirTran cash on hand
|
(35 | ) | - | (35 | ) | - | ||||||||||
Payments for purchase of property and equipment, net
|
(215 | ) | (159 | ) | (272 | ) | (298 | ) | ||||||||
Purchases of short-term investments
|
(1,779 | ) | (1,800 | ) | (3,263 | ) | (3,180 | ) | ||||||||
Proceeds from sales of short-term investments
|
1,440 | 1,349 | 2,750 | 2,546 | ||||||||||||
Net cash used in investing activities
|
(589 | ) | (610 | ) | (820 | ) | (932 | ) | ||||||||
|
||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from Employee stock plans
|
27 | 23 | 31 | 35 | ||||||||||||
Proceeds from termination of interest rate
|
||||||||||||||||
derivative instrument
|
- | - | 76 | - | ||||||||||||
Payments of long-term debt and capital lease obligations
|
(32 | ) | (25 | ) | (62 | ) | (85 | ) | ||||||||
Payments of convertible debt
|
(81 | ) | - | (81 | ) | - | ||||||||||
Payment of credit line borrowing
|
- | (44 | ) | - | (44 | ) | ||||||||||
Payments of cash dividends
|
(3 | ) | (3 | ) | (10 | ) | (10 | ) | ||||||||
Other, net
|
(3 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||
Net cash used in financing activities
|
(92 | ) | (51 | ) | (48 | ) | (106 | ) | ||||||||
|
||||||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(444 | ) | (121 | ) | 334 | (125 | ) | |||||||||
|
||||||||||||||||
CASH AND CASH EQUIVALENTS AT
|
||||||||||||||||
BEGINNING OF PERIOD
|
2,039 | 1,110 | 1,261 | 1,114 | ||||||||||||
|
||||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||
AT END OF PERIOD
|
$ | 1,595 | $ | 989 | $ | 1,595 | $ | 989 |
(in millions)
|
May 2, 2011
|
|||
Assets
|
|
|||
Cash and cash equivalents
|
$ | 477 | ||
Restricted cash
|
6 | |||
Other current assets
|
237 | |||
Operating property and equipment
|
1,151 | |||
Goodwill
|
971 | |||
Other identified intangibles
|
132 | |||
Deferred income taxes
|
150 | |||
Other noncurrent assets
|
45 | |||
Liabilities
|
||||
Long-term debt and capital leases, including current portion
|
(1,121 | ) | ||
Air traffic liability
|
(353 | ) | ||
Other liabilities assumed
|
(654 | ) | ||
Net assets acquired
|
$ | 1,041 | ||
|
·
|
Customer Relationships: Amortized based on an accelerated amortization schedule to reflect the estimated free cash flows the customer relationships are expected to provide.
|
·
|
Trademarks/Trade names: Amortized based on an accelerated amortization schedule to reflect the estimated free cash flows the assets are expected to provide.
|
·
|
Domestic Slots: Straight-line amortization for owned slots based on the applicable estimated useful life. Straight-line amortization for leased slots over the applicable lease term.
|
·
|
Internally developed software: Straight-line amortization over the expected useful life of the software.
|
·
|
Non-compete agreements: Straight-line amortization over the expected life of the applicable contract.
|
|
Estimated
|
|
|
||||||||
|
fair value of
|
Weighted-average
|
Accumulated
|
||||||||
|
asset/(liability)
|
useful life
|
amortization
|
||||||||
|
(in millions)
|
(in years)
|
(in millions)
|
||||||||
Customer relationships/marketing agreements
|
$ | 46 | 4 | $ | 3 | ||||||
Trademarks/trade names
|
36 | 3 | 2 | ||||||||
Domestic Slots
|
43 | 24 | - | ||||||||
Internally developed software
|
2 | 2 | - | ||||||||
Noncompete agreements
|
5 | 2 | - | ||||||||
Total
|
$ | 132 | 10 | $ | 5 |
·
|
The expected synergies and other benefits that are expected to result from combining the operations of AirTran with the operations of the Company; and
|
·
|
Any intangible assets that do not qualify for separate recognition such as the AirTran trained and assembled workforce.
|
·
|
Amounts for intangibles, the fair value of specific executory contracts, and deferred income taxes and liabilities, pending finalization of valuation efforts; and
|
·
|
The purchase price allocable to goodwill, as a result of changes to the aforementioned items.
|
|
|
Three months
|
|
|
Six months
|
||||
ended June 30,
|
|
ended June 30,
|
|||||||
(In millions, except per share data)
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
Total operating revenues
|
$
|
4,402
|
|
3,868
|
|
$
|
8,171
|
|
7,105
|
Net income
|
|
160
|
|
109
|
|
|
163
|
|
109
|
Net income per share, basic
|
|
0.20
|
|
0.14
|
|
|
0.21
|
|
0.14
|
Net income per share, diluted
|
|
0.20
|
|
0.14
|
|
|
0.21
|
|
0.14
|
|
Three months ended
|
Six months ended
|
|||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||
|
|
|
|
|
|||||||||||
NUMERATOR:
|
|
|
|
|
|||||||||||
Net income
|
$ | 161 | $ | 112 | $ | 166 | $ | 123 | |||||||
Incremental income effect of
|
|||||||||||||||
interest on 5.25% convertible notes
|
1 | - | - | - | |||||||||||
Net income after assumed conversion
|
$ | 162 | $ | 112 | $ | 166 | $ | 123 | |||||||
|
|||||||||||||||
DENOMINATOR:
|
|||||||||||||||
Weighted average shares
|
|||||||||||||||
outstanding, basic
|
780 | 745 | 764 | 744 | |||||||||||
Dilutive effect of Employee stock
|
|||||||||||||||
awards
|
1 | - | 1 | - | |||||||||||
Dilutive effect of 5.25% convertible notes
|
6 | 1 | - | 1 | |||||||||||
Adjusted weighted-average shares
|
|||||||||||||||
outstanding, diluted
|
787 | 746 | 765 | 745 | |||||||||||
|
|||||||||||||||
NET INCOME PER SHARE:
|
|||||||||||||||
Basic
|
$ | 0.21 | $ | 0.15 | $ | 0.22 | $ | 0.17 | |||||||
|
|||||||||||||||
Diluted
|
$ | 0.21 | $ | 0.15 | $ | 0.22 | $ | 0.17 | |||||||
|
|||||||||||||||
Antidilutive stock options
|
|||||||||||||||
excluded from calculations
|
49 | 72 | 48 | 74 |
|
Fuel hedged as
|
||
|
of June 30, 2011
|
||
Period (by year)
|
(gallons in millions)
|
||
Second half 2011
|
629 | ||
2012
|
1,297 | ||
2013
|
919 | ||
2014
|
622 | ||
2015
|
239 |
|
|
Asset derivatives
|
Liability derivatives
|
||||||||||||||
|
Balance Sheet
|
Fair value at
|
Fair value at
|
Fair value at
|
Fair value at
|
||||||||||||
(in millions)
|
location
|
06/30/11
|
12/31/10
|
06/30/11
|
12/31/10
|
||||||||||||
|
|
|
|
|
|
||||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
||||||||||||
Fuel derivative contracts (gross)*
|
Other current assets
|
$ | 226 | $ | 151 | $ | 19 | $ | 16 | ||||||||
Fuel derivative contracts (gross)*
|
Other assets
|
794 | 547 | 102 | 88 | ||||||||||||
Fuel derivative contracts (gross)*
|
Accrued liabilities
|
56 | 122 | 1 | 18 | ||||||||||||
Fuel derivative contracts (gross)*
|
Other noncurrent liabilities
|
20 | 71 | 2 | 9 | ||||||||||||
Interest rate derivative contracts
|
Other current assets
|
2 | 73 | - | - | ||||||||||||
Interest rate derivative contracts
|
Other assets
|
32 | - | - | - | ||||||||||||
Interest rate derivative contracts
|
Accrued liabilities
|
- | - | 5 | - | ||||||||||||
Interest rate derivative contracts
|
Other noncurrent liabilities
|
- | - | 75 | 4 | ||||||||||||
|
|
||||||||||||||||
Total derivatives designated as hedges
|
|
$ | 1,130 | $ | 964 | $ | 204 | $ | 135 | ||||||||
|
|
||||||||||||||||
Derivatives not designated as hedges
|
|
||||||||||||||||
Fuel derivative contracts (gross)*
|
Other current assets
|
$ | 317 | $ | 164 | $ | 359 | $ | 284 | ||||||||
Fuel derivative contracts (gross)*
|
Other assets
|
279 | 212 | 583 | 304 | ||||||||||||
Fuel derivative contracts (gross)*
|
Accrued liabilities
|
1 | 40 | 165 | 222 | ||||||||||||
Fuel derivative contracts (gross)*
|
Other noncurrent liabilities
|
9 | 33 | 104 | 257 | ||||||||||||
|
|
||||||||||||||||
Total derivatives not designated as hedges
|
|
$ | 606 | $ | 449 | $ | 1,211 | $ | 1,067 | ||||||||
|
|
||||||||||||||||
Total derivatives
|
|
$ | 1,736 | $ | 1,413 | $ | 1,415 | $ | 1,202 | ||||||||
|
|
||||||||||||||||
* Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.
|
|
Balance Sheet
|
June 30,
|
December 31,
|
||||||
(in millions)
|
location
|
2011
|
2010
|
||||||
Cash collateral deposits provided
|
Offset against Other
|
|
|
||||||
to counterparty - noncurrent
|
noncurrent liabilities
|
$ | 86 | $ | 125 | ||||
Cash collateral deposits provided
|
Offset against Accrued
|
||||||||
to counterparty - current
|
liabilities
|
109 | - | ||||||
Cash collateral deposits held from
|
Offset against Other
|
||||||||
counterparty - noncurrent
|
assets
|
75 | 60 | ||||||
Cash collateral deposits held from
|
Offset against Other
|
||||||||
counterparty - current
|
current assets
|
35 | - | ||||||
Receivable from third parties for settled
|
Accounts and other
|
||||||||
fuel contracts
|
receivables
|
5 | 1 | ||||||
Net unrealized (gains) losses from fuel
|
Accumulated other
|
||||||||
hedges, net of tax
|
comprehensive (gain) loss
|
97 | 250 |
Derivatives not in cash flow hedging relationships
|
||||||
|
|
|
|
|
|
|
|
(Gain) loss
|
|
||||
|
recognized in income on
|
|
||||
|
derivatives
|
|
||||
|
Three months ended
|
Location of (gain) loss
|
||||
|
June 30,
|
recognized in income
|
||||
(in millions)
|
2011
|
|
2010
|
on derivatives
|
||
|
|
|
|
|
|
|
Fuel derivative contracts
|
$(150) |
|
$57 |
Other (gains) losses, net
|
|
Three months ended June 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
|
|
|
||||||
|
|
|
||||||
Net income
|
$ | 161 | $ | 112 | ||||
Unrealized (loss) on fuel derivative instruments,
|
||||||||
net of deferred taxes of ($111) and ($61)
|
(178 | ) | (98 | ) | ||||
Unrealized (loss) on interest rate swaps,
|
||||||||
net of deferred taxes of ($7) and ($13)
|
(11 | ) | (21 | ) | ||||
Other, net of deferred taxes of $2 and ($2)
|
3 | (4 | ) | |||||
Total other comprehensive loss
|
(186 | ) | (123 | ) | ||||
|
||||||||
Comprehensive loss
|
$ | (25 | ) | $ | (11 | ) | ||
|
|
Six months ended June 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
|
|
|
||||||
|
|
|
||||||
Net income
|
$ | 166 | $ | 123 | ||||
Unrealized gain/(loss) on fuel derivative instruments,
|
||||||||
net of deferred taxes of $96 and ($24)
|
153 | (39 | ) | |||||
Unrealized (loss) on interest rate swaps,
|
||||||||
net of deferred taxes of ($3) and ($14)
|
(4 | ) | (22 | ) | ||||
Other, net of deferred taxes of $4 and ($1)
|
6 | (2 | ) | |||||
Total other comprehensive income (loss)
|
155 | (63 | ) | |||||
|
||||||||
Comprehensive income
|
$ | 321 | $ | 60 |
|
Fuel
|
Interest
|
|
Accumulated other
|
||||||||||||
|
hedge
|
rate
|
|
comprehensive
|
||||||||||||
(In millions)
|
derivatives
|
derivatives
|
Other
|
income (loss)
|
||||||||||||
Balance at March 31, 2011
|
$ | 81 | $ | (27 | ) | $ | 25 | $ | 79 | |||||||
Changes in fair value
|
(196 | ) | (11 | ) | 3 | (204 | ) | |||||||||
Reclassification to earnings
|
18 | - | - | 18 | ||||||||||||
Balance at June 30, 2011
|
$ | (97 | ) | $ | (38 | ) | $ | 28 | $ | (107 | ) |
|
Fuel
|
Interest
|
|
Accumulated other
|
||||||||||||
|
hedge
|
rate
|
|
comprehensive
|
||||||||||||
(In millions)
|
derivatives
|
derivatives
|
Other
|
income (loss)
|
||||||||||||
Balance at December 31, 2010
|
$ | (250 | ) | $ | (34 | ) | $ | 22 | $ | (262 | ) | |||||
Changes in fair value
|
119 | (4 | ) | 6 | 121 | |||||||||||
Reclassification to earnings
|
34 | - | - | 34 | ||||||||||||
Balance at June 30, 2011
|
$ | (97 | ) | (38 | ) | 28 | $ | (107 | ) |
|
June 30,
|
December 31,
|
||||||||
(In millions)
|
2011
|
2010
|
||||||||
|
|
|
|
|||||||
Fuel derivatives contracts
|
$ | 312 | $ | 307 | ||||||
Intangible assets
|
|
184 |
60
|
|||||||
Non-current investments
|
|
89 |
97
|
|||||||
Restricted cash
|
|
67 |
-
|
|||||||
Maintenance deposits
|
|
60 |
-
|
|||||||
Other
|
|
120 |
142
|
|||||||
Other assets
|
$ | 832 | $ | 606 | ||||||
|
|
|
||||||||
|
June 30,
|
December 31,
|
||||||||
(In millions)
|
2011 | 2010 | ||||||||
|
|
|||||||||
Retirement plans
|
$ | 203 | $ | 171 | ||||||
Aircraft rentals
|
|
100 | 27 | |||||||
Vacation pay
|
|
235 | 200 | |||||||
Advances and deposits
|
|
32 | 33 | |||||||
Fuel derivative contracts
|
|
5 | 79 | |||||||
Workers compensation
|
|
151 | 142 | |||||||
Deferred taxes
|
|
102 | - | |||||||
Other
|
|
302 | 211 | |||||||
Accrued liabilities
|
$ | 1,130 | $ | 863 | ||||||
|
|
|||||||||
|
June 30,
|
December 31,
|
||||||||
(In millions)
|
2011 | 2010 | ||||||||
|
|
|||||||||
Postretirement obligation
|
$ | 98 | $ | 91 | ||||||
Non-current leasehold interest
|
|
337 | - | |||||||
Construction obligation
|
|
130 | 86 | |||||||
Other
|
|
273 | 288 | |||||||
Other non-current liabilities
|
$ | 838 | $ | 465 |
(In millions)
|
June 30, 2011
|
|||
B737 Aircraft Purchase Financing Facilities:
|
|
|||
Floating-rate aircraft notes payable through 2020, 1.90 percent
|
|
|||
weighted-average interest rate as of June 30, 2011
|
$ | 631 | ||
Fixed-rate aircraft notes payable through 2018, 7.02 percent
|
||||
weighted-average interest rate as of June 30, 2011
|
45 | |||
|
||||
Fixed-rate B717 aircraft notes payable through 2017, 10.21 percent
|
||||
weighted-average interest rate as of June 30, 2011
|
78 | |||
5.25% convertible senior notes due 2016
|
120 | |||
Total long-term debt
|
874 | |||
Less current maturities of long-term debt
|
(67 | ) | ||
Long-term debt less current maturities
|
$ | 807 | ||
|
|
|
|
Fair value measurements at reporting date using
|
||||||||||||||
|
|
|
Quoted prices in
|
|
Significant
|
||||||||||||
|
|
|
active markets
|
Significant other
|
unobservable
|
||||||||||||
|
|
|
for identical assets
|
observable inputs
|
inputs
|
||||||||||||
Description
|
June 30, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets
|
(in millions)
|
||||||||||||||||
Cash equivalents
|
|
|
|
|
|||||||||||||
|
Cash equivalents (a)
|
$ | 1,407 | $ | 1,407 | $ | - | $ | - | ||||||||
|
Commercial paper
|
135 | - | 135 | - | ||||||||||||
|
Certificates of deposit
|
53 | - | 53 | - | ||||||||||||
Short-term investments:
|
|||||||||||||||||
|
Treasury bills
|
2,404 | 2,404 | - | - | ||||||||||||
|
Certificates of deposit
|
291 | - | 291 | - | ||||||||||||
|
Commercial paper
|
84 | - | 84 | - | ||||||||||||
Noncurrent investments (b)
|
|||||||||||||||||
|
Auction rate securities
|
84 | - | - | 84 | ||||||||||||
|
Certificates of deposit
|
25 | - | 25 | - | ||||||||||||
|
Restricted Cash
|
67 | 67 | - | - | ||||||||||||
Interest rate derivatives (see Note 5)
|
34 | - | 34 | - | |||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (d)
|
283 | - | 283 | - | ||||||||||||
|
Option contracts (d)
|
1,333 | - | - | 1,333 | ||||||||||||
|
Swap contracts (c)
|
20 | - | 20 | - | ||||||||||||
|
Option contracts (c)
|
66 | - | - | 66 | ||||||||||||
Other available-for-sale securities
|
5 | - | - | 5 | |||||||||||||
Total assets
|
$ | 6,291 | $ | 3,878 | $ | 925 | $ | 1,488 | |||||||||
|
|
||||||||||||||||
Liabilities
|
|||||||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (d)
|
$ | (572 | ) | $ | - | $ | (572 | ) | $ | - | ||||||
|
Option contracts (d)
|
(491 | ) | - | - | (491 | ) | ||||||||||
|
Swap contracts (c)
|
(211 | ) | - | (211 | ) | - | ||||||||||
|
Option contracts (c)
|
(61 | ) | - | - | (61 | ) | ||||||||||
Interest rate derivatives (see Note 5)
|
(80 | ) | - | (80 | ) | - | |||||||||||
Total liabilities
|
$ | (1,415 | ) | $ | - | $ | (863 | ) | $ | (552 | ) | ||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
(a)
|
Cash equivalents is primarily composed of money market investments.
|
||||||||||||||||
(b)
|
Noncurrent investments are included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
|
||||||||||||||||
(c)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of cash collateral provided to counterparties. See Note 5.
|
||||||||||||||||
(d)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral received from or provided to counterparties. See Note 5.
|
||||||||||||||||
|
|
|
|
|
Fair value measurements at reporting date using
|
||||||||||||||
|
|
|
Quoted prices in
|
|
Significant
|
||||||||||||
|
|
|
active arkets
|
Significant other
|
unobservable
|
||||||||||||
|
|
|
for identical assets
|
observable inputs
|
inputs
|
||||||||||||
Description
|
December 31, 2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
|
|
|
|
|
|
||||||||||||
Assets
|
(in millions)
|
||||||||||||||||
Cash equivalents
|
$ | 1,261 | $ | 1,261 | $ | - | $ | - | |||||||||
Short-term investments:
|
|||||||||||||||||
|
Treasury bills
|
2,010 | 2,010 | - | - | ||||||||||||
|
Certificates of deposit
|
267 | - | 267 | - | ||||||||||||
Noncurrent investments (a)
|
93 | - | - | 93 | |||||||||||||
Interest rate derivatives
|
73 | - | 73 | - | |||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (b)
|
33 | - | 33 | - | ||||||||||||
|
Option contracts(b)
|
233 | - | - | 233 | ||||||||||||
|
Swap contracts (c)
|
286 | - | 286 | - | ||||||||||||
|
Option contracts(c)
|
788 | - | - | 788 | ||||||||||||
Other available-for-sale securities
|
39 | 34 | - | 5 | |||||||||||||
Total assets
|
$ | 5,083 | $ | 3,305 | $ | 659 | $ | 1,119 | |||||||||
|
|
||||||||||||||||
Liabilities
|
|||||||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (b)
|
$ | (387 | ) | $ | - | $ | (387 | ) | $ | - | ||||||
|
Option contracts(b)
|
(119 | ) | - | - | (119 | ) | ||||||||||
|
Swap contracts (c)
|
(476 | ) | - | (476 | ) | - | ||||||||||
|
Option contracts(c)
|
(216 | ) | - | - | (216 | ) | ||||||||||
Interest rate derivatives
|
(4 | ) | - | (4 | ) | - | |||||||||||
Total liabilities
|
$ | (1,202 | ) | $ | - | $ | (867 | ) | $ | (335 | ) | ||||||
|
|
||||||||||||||||
(a)
|
Auction rate securities included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
|
||||||||||||||||
(b)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of cash collateral provided to counterparties. See Note 5.
|
||||||||||||||||
(c)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral received from counterparties. See Note 5.
|
|
|
Fair value measurements using significant
|
|
||||||||||
|
|
unobservable inputs (Level 3)
|
|
||||||||||
|
Fuel
|
Auction rate
|
Other
|
|
|||||||||
(in millions)
|
derivatives
|
securities
|
securities
|
Total
|
|||||||||
Balance at March 31, 2011
|
$ | 1,101 | $ | 93 | $ | 5 | $ | 1,199 | |||||
Total gains or (losses) (realized or unrealized)
|
|||||||||||||
Included in earnings
|
45 | - | - | 45 | |||||||||
Included in other comprehensive income
|
(309 | ) | 5 | - | (304 | ) | |||||||
Purchases
|
270 | - | - | 270 | |||||||||
Sales
|
(173 | ) | (14 | ) | - | (187 | ) | ||||||
Settlements
|
(88 | ) | - | - | (88 | ) | |||||||
Balance at June 30, 2011
|
$ | 846 | $ | 84 | (a) | $ | 5 | $ | 935 | ||||
|
|||||||||||||
The amount of total gains or (losses) for the
|
|||||||||||||
period included in earnings attributable to the
|
|||||||||||||
change in unrealized gains or losses relating to
|
|||||||||||||
assets still held at June 30, 2011
|
$ | 54 | $ | - | $ | - | $ | 54 | |||||
|
|||||||||||||
(a) Included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
|
|||||||||||||
|
|
|
|
Carrying
|
|
Estimated fair
|
|
||
|
(In millions)
|
|
value
|
|
value
|
|
||
|
10.5% Notes due 2011
|
|
$
|
402
|
|
$
|
414
|
|
|
French credit agreements due 2012
|
|
|
11
|
|
|
11
|
|
|
6.5% Notes due 2012
|
|
|
394
|
|
|
407
|
|
|
5.25% Notes due 2014
|
|
|
350
|
|
|
378
|
|
|
5.75% Notes due 2016
|
|
|
314
|
|
|
344
|
|
|
5.25% Convertible notes due 2016
|
|
|
120
|
|
|
165
|
|
|
5.125% Notes due 2017
|
|
|
300
|
|
|
320
|
|
|
French credit agreements due 2017
|
|
|
69
|
|
|
69
|
|
|
Fixed rate B717 aircraft notes payable through 2017 - 10.21%
|
|
|
78
|
|
|
91
|
|
|
Fixed rate B737 aircraft notes payable through 2018 - 7.02%
|
|
|
45
|
|
|
48
|
|
|
Term loan agreement due 2019 - 6.64%
|
|
|
283
|
|
|
295
|
|
|
Term loan agreement due 2019 - 6.94%
|
|
|
110
|
|
|
120
|
|
|
Term loan agreement due 2020 - 5.223%
|
|
|
505
|
|
|
467
|
|
|
Floating rate B737 aircraft notes payable through 2020 - 1.90%
|
|
|
631
|
|
|
631
|
|
|
Pass through certificates due 2022
|
|
|
420
|
|
|
459
|
|
|
7.375% Debentures due 2027
|
|
|
118
|
|
|
127
|
|
·
|
it grows the Company’s presence in key markets it did not yet serve and represents a significant step toward positioning the Company for future growth;
|
·
|
it allows the Company to offer more low-fare destinations by extending its network and diversifying into new markets, including significant opportunities to and from Atlanta, the busiest airport in the United States and the largest domestic market the Company previously did not serve;
|
·
|
it expands the Company’s presence in slot-controlled markets where the Company previously had little (New York LaGuardia) or no (Ronald Reagan Washington National Airport) service;
|
·
|
it expands the Company’s service in other key domestic markets, including Boston and Baltimore and adds destinations to its route system;
|
·
|
it increases the Company’s share of current domestic market share capacity (as measured by ASMs);
|
·
|
it provides access to near-international leisure markets in the Caribbean and Mexico, as well as smaller cities, and provides firsthand and meaningful insight into these new expansion opportunities; and
|
·
|
based on current operations, the combined company is expected to serve more than 100 million customers annually from more than 100 different destinations in the United States and near-international destinations.
|
|
Three months ended
|
|
Dollar change
|
Dollar change
|
Percent change
|
|||||||||||||||||||
|
June 30,
|
Dollar
|
due to
|
excluding
|
excluding
|
|||||||||||||||||||
|
2011
|
2010
|
change
|
acquisition
|
acquisition
|
acquisition
|
||||||||||||||||||
OPERATING REVENUES:
|
|
|
|
|
|
|
||||||||||||||||||
Passenger
|
$ | 3,876 | $ | 3,016 | $ | 860 | $ | 467 | $ | 393 | 13.0 | |||||||||||||
Freight
|
36 | 33 | 3 | - | 3 | 9.1 | ||||||||||||||||||
Other
|
224 | 119 | 105 | 73 | 32 | 26.9 | ||||||||||||||||||
Total operating revenues
|
$ | 4,136 | $ | 3,168 | $ | 968 | $ | 540 | $ | 428 | 13.5 |
|
Three months ended June 30,
|
Per ASM
|
Percent
|
|||||||||||||
(in cents, except for percentages)
|
2011
|
2010
|
change
|
change
|
||||||||||||
|
|
|
|
|
||||||||||||
Salaries, wages, and benefits
|
3.58 | ¢ | 3.71 | ¢ | (0.13 | ) ¢ | (3.5 | ) | ||||||||
Fuel and oil
|
4.86 | 3.66 | 1.20 | 32.8 | ||||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
0.78 | 0.76 | 0.02 | 2.6 | ||||||||||||
Aircraft rentals
|
0.25 | 0.18 | 0.07 | 38.9 | ||||||||||||
Landing fees and other rentals
|
0.78 | 0.81 | (0.03 | ) | (3.7 | ) | ||||||||||
Depreciation and amortization
|
0.56 | 0.61 | (0.05 | ) | (8.2 | ) | ||||||||||
Acquisition and integration
|
0.18 | - | 0.18 |
n.a.
|
||||||||||||
Other operating expenses
|
1.50 | 1.28 | 0.22 | 17.2 | ||||||||||||
|
||||||||||||||||
Total
|
12.49 | ¢ | 11.01 | ¢ | 1.48 | ¢ | 13.4 |
|
Three months ended
|
|
Dollar change
|
Dollar change
|
Percent change
|
|||||||||||||||||||
(in millions, except for
|
June 30,
|
Dollar
|
due to
|
excluding
|
excluding
|
|||||||||||||||||||
percentages)
|
2011
|
2010
|
change
|
acquisition
|
acquisition
|
acquisition
|
||||||||||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
||||||||||||||||||
Salaries, wages, and benefits
|
$ | 1,125 | $ | 946 | $ | 179 | $ | 98 | $ | 81 | 8.6 | |||||||||||||
Fuel and oil
|
1,527 | 933 | 594 | 217 | 377 | 40.4 | ||||||||||||||||||
Maintenance materials and repairs
|
246 | 194 | 52 | 45 | 7 | 3.6 | ||||||||||||||||||
Aircraft rentals
|
79 | 45 | 34 | 40 | (6 | ) | (13.3 | ) | ||||||||||||||||
Landing fees and other rentals
|
247 | 206 | 41 | 30 | 11 | 5.3 | ||||||||||||||||||
Depreciation and amortization
|
176 | 154 | 22 | 10 | 12 | 7.8 | ||||||||||||||||||
Acquisition and integration
|
58 | - | 58 | 24 | 34 |
n.a.
|
||||||||||||||||||
Other operating expenses
|
471 | 327 | 144 | 65 | 79 | 24.2 | ||||||||||||||||||
Total operating expenses
|
$ | 3,929 | $ | 2,805 | $ | 1,124 | $ | 529 | $ | 595 | 21.2 |
|
Fair value
|
Amount of gains
|
||||||
|
(liability) of fuel
|
(losses) deferred
|
||||||
|
derivative contracts
|
in AOCI at June 30,
|
||||||
Year
|
at June 30, 2011
|
2011 (net of tax)
|
||||||
2011
|
$ | 22 | $ | (55) | ||||
2012
|
82 | (49) | ||||||
2013
|
49 | (51) | ||||||
2014
|
180 | 60 | ||||||
2015
|
34 | (2) | ||||||
Total
|
$ | 367 | $ | (97) |
|
Three months ended June 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
|
|
|
||||||
Mark-to-market impact from fuel contracts settling in current and future
|
|
|
||||||
periods
|
$ | (136 | ) | $ | 57 | |||
Ineffectiveness from fuel hedges settling in future periods
|
7 | 51 | ||||||
Realized ineffectiveness and mark-to-market (gains) or
|
||||||||
losses
|
(11 | ) | 7 | |||||
Premium cost of fuel contracts
|
26 | 30 | ||||||
Other
|
1 | 1 | ||||||
|
$ | (113 | ) | $ | 146 |
|
Six months ended
|
|
Dollar change
|
Dollar change
|
Percent change
|
|||||||||||||||||||
|
June 30,
|
Dollar
|
due to
|
excluding
|
excluding
|
|||||||||||||||||||
|
2011
|
2010
|
change
|
acquisition
|
acquisition
|
acquisition
|
||||||||||||||||||
OPERATING REVENUES:
|
|
|
|
|
|
|
||||||||||||||||||
Passenger
|
$ | 6,814 | $ | 5,511 | $ | 1,303 | $ | 467 | $ | 836 | 15.2 | |||||||||||||
Freight
|
67 | 63 | 4 | - | 4 | 6.3 | ||||||||||||||||||
Other
|
357 | 224 | 133 | 73 | 60 | 26.8 | ||||||||||||||||||
Total operating revenues
|
$ | 7,238 | $ | 5,798 | $ | 1,440 | $ | 540 | $ | 900 | 15.5 |
|
Six months ended June 30,
|
Per ASM
|
Percent
|
|||||||||||||
(in cents, except for percentages)
|
2011
|
2010
|
change
|
change
|
||||||||||||
|
|
|
|
|
||||||||||||
Salaries, wages, and benefits
|
3.71 | ¢ | 3.76 | ¢ | (0.05 | ) ¢ | (1.3 | ) | ||||||||
Fuel and oil
|
4.59 | 3.65 | 0.94 | 25.8 | ||||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
.79 | .75 | 0.04 | 5.3 | ||||||||||||
Aircraft rentals
|
.22 | .19 | 0.03 | 15.8 | ||||||||||||
Landing fees and other rentals
|
.80 | .82 | (0.02 | ) | (2.4 | ) | ||||||||||
Depreciation and amortization
|
.59 | .64 | (0.05 | ) | (7.8 | ) | ||||||||||
Acquisition and integration
|
.13 | - | 0.13 |
n.a.
|
||||||||||||
Other operating expenses
|
1.53 | 1.38 | 0.15 | 10.9 | ||||||||||||
|
||||||||||||||||
Total
|
12.36 | ¢ | 11.19 | ¢ | 1.17 | ¢ | 10.5 |
|
Six months ended
|
|
Dollar increase
|
Dollar change
|
Percent change
|
|||||||||||||||||||
(in millions, except for
|
June 30,
|
Dollar
|
due to
|
excluding
|
excluding
|
|||||||||||||||||||
percentages)
|
2011
|
2010
|
change
|
acquisition
|
acquisition
|
acquisition
|
||||||||||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
||||||||||||||||||
Salaries, wages, and benefits
|
$ | 2,078 | $ | 1,810 | $ | 268 | $ | 97 | $ | 171 | 9.4 | |||||||||||||
Fuel and oil
|
2,565 | 1,754 | 811 | 218 | 593 | 33.8 | ||||||||||||||||||
Maintenance materials and repairs
|
444 | 360 | 84 | 45 | 39 | 10.8 | ||||||||||||||||||
Aircraft rentals
|
125 | 92 | 33 | 40 | (7 | ) | (7.6 | ) | ||||||||||||||||
Landing fees and other rentals
|
448 | 396 | 52 | 29 | 23 | 5.8 | ||||||||||||||||||
Depreciation and amortization
|
332 | 308 | 24 | 10 | 14 | 4.5 | ||||||||||||||||||
Acquisition and integration
|
75 | - | 75 | 24 | 51 |
n.a.
|
||||||||||||||||||
Other operating expenses
|
850 | 661 | 189 | 64 | 125 | 18.9 | ||||||||||||||||||
Total operating expenses
|
$ | 6,917 | $ | 5,381 | $ | 1,536 | $ | 527 | $ | 1,009 | 18.8 |
|
Six months ended June 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
|
|
|
||||||
Mark-to-market impact from fuel contracts settling in future
|
|
|
||||||
periods - included in Other (gains) losses, net
|
$ | (139 | ) | $ | 31 | |||
Ineffectiveness from fuel hedges settling in future periods -
|
||||||||
included in Other (gains) losses, net
|
37 | 46 | ||||||
Realized ineffectiveness and mark-to-market (gains) or
|
||||||||
losses - included in Other (gains) losses, net
|
(9 | ) | 11 | |||||
Premium cost of fuel contracts included in Other (gains) losses, net
|
57 | 61 | ||||||
Other
|
- | 1 | ||||||
|
$ | (54 | ) | $ | 150 |
|
|
Average
|
Number
|
Number
|
Number
|
|||||||||||||||||
Type
|
Seats
|
Age (Yrs)
|
of Aircraft
|
Owned
|
Leased
|
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
717-200 | 117 | 10 | 88 | 8 | 80 | |||||||||||||||||
737-300 | 137 | 19 | 167 | 100 | 67 | |||||||||||||||||
737-500 | 122 | 20 | 25 | 16 | 9 | |||||||||||||||||
737-700 | 137 | 7 | 414 | 369 | 45 | |||||||||||||||||
TOTALS
|
11 | 694 | 493 | 201 | ||||||||||||||||||
·
|
the Company’s projected results of operations;
|
·
|
the Company’s growth plans, including its capacity and fleet plans;
|
·
|
the Company’s plans and expectations with respect to managing risk associated with volatile jet fuel prices;
|
·
|
the Company’s expectations with respect to liquidity, including anticipated needs for, and sources of, funds;
|
·
|
the Company’s assessment of market risks;
|
·
|
the Company’s plans and expectations related to its acquisition of AirTran, including, without limitation, the Company’s integration plans and expectations and the anticipated impact of the acquisition on (i) the Company’s results of operations; (ii) the Company’s growth plans, including its network and fleet plans; (iii) the Company’s customer experience; and (iv) the Company’s ability to respond to the economic and competitive challenges of the airline industry; and
|
·
|
the Company’s plans and expectations related to legal proceedings.
|
·
|
changes in the price of aircraft fuel, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions;
|
·
|
the impact of the economy on the demand for air travel and fluctuations in consumer demand generally for the Company’s services;
|
·
|
the impact of fuel prices and economic conditions on the Company’s overall business plan and strategies;
|
·
|
the Company’s ability to successfully integrate AirTran and the Company’s related ability to (i) maintain positive relations with employees and employee representatives, (ii) timely and effectively address related collective bargaining agreements, and (iii) retain key AirTran employees;
|
·
|
the Company’s ability to realize expected synergies from the AirTran acquisition;
|
·
|
the Company’s ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and the impact of technological initiatives on the Company’s operations and reporting;
|
·
|
the Company’s ability to timely and effectively prioritize its strategic initiatives and related expenditures;
|
·
|
actions of competitors, including, without limitation, pricing, scheduling, and capacity decisions, and consolidation and alliance activities;
|
·
|
the Company’s dependence on third parties to assist with implementation of certain of its initiatives;
|
·
|
the impact of governmental legislation and regulation on the Company’s operations, fuel hedging strategies, and costs; and
|
·
|
other factors as set forth in the Company’s filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
|
a)
|
Exhibits
|
2.1
|
Agreement and Plan of Merger among Southwest Airlines Co., AirTran Holdings, Inc., and Guadalupe Holdings Corp., dated as of September 26, 2010 (the schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K)(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated September 26, 2010 (File No. 1-7259)).
|
3.1
|
Restated Articles of Incorporation of the Company effective February 3, 1994;
Articles of Amendment to the Articles of Incorporation of the Company effective
|
May 31, 1996; Articles of Amendment to the Articles of Incorporation of the Company
effective July 2, 1998; Articles of Amendment to the Articles of Incorporation of the
|
|
Company effective June 2, 1999; Articles of Amendment to the Articles of
Incorporation of the Company effective May 24, 2001; Articles of Amendment to
|
|
the Articles of Incorporation of the Company effective June 5, 2007 (incorporated by
reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year
|
|
ended December 31, 2009 (File No. 1-7259)).
|
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19,
2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report
on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
10.1
|
Supplemental Agreement No. 73 to Purchase Agreement No. 1810,
dated January 19, 1994, between The Boeing Company and Southwest. (1)
|
10.2
|
$800,000,000 Revolving Credit Facility Agreement among the Company, The Banks Party thereto, Citibank, N.A., as Syndication Agent, Barclays Bank PLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc., as Documentation Agents and JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of April 28, 2011 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 28, 2011(File No. 1-7259)).
|
31.1
|
Rule 13a-14(a) Certification of Chief Executive Officer.
|
31.2
|
Rule 13a-14(a) Certification of Chief Financial Officer.
|
32.1
|
Section 1350 Certifications of Chief Executive Officer and Chief Financial
Officer. (2)
|
101.INS
|
XBRL Instance Document. (2)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document. (2)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document. (2)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document. (2)
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document. (2)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document. (2)
|
(1)
|
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.
|
(2)
|
Furnished, not filed.
|
|
SOUTHWEST AIRLINES CO.
|
|
August 5, 2011
|
By
|
/s/ Laura Wright
|
Laura Wright
|
||
Chief Financial Officer
|
||
(On behalf of the Registrant and in
|
||
her capacity as Principal Financial
|
||
and Accounting Officer)
|
2.1
|
Agreement and Plan of Merger among Southwest Airlines Co., AirTran Holdings, Inc., and Guadalupe Holdings Corp., dated as of September 26, 2010 (the schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K)(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated September 26, 2010 (File No. 1-7259)).
|
3.1
|
Restated Articles of Incorporation of the Company effective February 3, 1994;
|
Articles of Amendment to the Articles of Incorporation of the Company effective
|
|
May 31, 1996; Articles of Amendment to the Articles of Incorporation of the Company
|
|
effective July 2, 1998; Articles of Amendment to the Articles of Incorporation of the
|
|
Company effective June 2, 1999; Articles of Amendment to the Articles of
|
|
Incorporation of the Company effective May 24, 2001; Articles of Amendment to
|
|
the Articles of Incorporation of the Company effective June 5, 2007 (incorporated by
|
|
reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year
|
|
ended December 31, 2009 (File No. 1-7259)).
|
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19,
|
2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report
|
|
on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
|
10.1
|
Supplemental Agreement No. 73 to Purchase Agreement No. 1810,
|
dated January 19, 1994, between The Boeing Company and Southwest. (1)
|
|
10.2
|
$800,000,000 Revolving Credit Facility Agreement among the Company, The Banks Party thereto, Citibank, N.A., as Syndication Agent, Barclays Bank PLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc., as Documentation Agents and JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of April 28, 2011 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 28, 2011(File No. 1-7259)).
|
31.1
|
Rule 13a-14(a) Certification of Chief Executive Officer.
|
31.2
|
Rule 13a-14(a) Certification of Chief Financial Officer.
|
32.1
|
Section 1350 Certifications of Chief Executive Officer and Chief Financial
|
Officer. (2)
|
|
101.INS
|
XBRL Instance Document. (2)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document. (2)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document. (2)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document. (2)
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document. (2)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document. (2)
|
(1)
|
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.
|
(2)
|
Furnished, not filed.
|
By:
|
/s/ Gary C. Kelly
|
|
Gary C. Kelly
|
||
Chief Executive Officer
|
||
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|
By:
|
/s/ Gary C. Kelly
|
Gary C. Kelly
|
|
Chief Executive Officer
|
|
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|
Block
|
MSN
|
Contracted Delivery Month
|
Revised Delivery Month
|
Block T-W-3
|
36683
|
June 2012
|
April 2012
|
Block T-W-3
|
36987
|
June 2012
|
May 2012
|
P.A. No. 1810 | SA-73-1 | |
Page | SA | ||
Number | Number | ||
ARTICLES | |||
1.
|
Subject Matter of Sale
|
1-1
|
SA-73
|
2.
|
Delivery, Title and Risk
of Loss
|
2-1
|
SA-28 |
3.
|
Price of Aircraft
|
3-1
|
SA-73
|
4.
|
Taxes
|
4-1
|
|
5.
|
Payment
|
5-1
|
|
6.
|
Excusable Delay
|
6-1
|
|
7.
|
Changes to the Detail
Specification
|
7-1 | SA-73 |
8.
|
Federal Aviation Requirements and
Certificates and Export License
|
8-1
|
|
9.
|
Representatives, Inspection,
Flights and Test Data
|
9-1
|
|
10.
|
Assignment, Resale or Lease
|
10-1
|
|
11.
|
Termination for Certain Events
|
11-1
|
|
12.
|
Product Assurance; Disclaimer and
Release; Exclusion of Liabilities;
Customer Support; Indemnification
and Insurance
|
12-1
|
|
13.
|
Buyer Furnished Equipment and
Spare Parts
|
13-1
|
|
14.
|
Contractual Notices and Requests
|
14-1
|
|
15.
|
Miscellaneous
|
15-1
|
SA | |||
Number | |||
RESTRICTED LETTER AGREEMENTS
|
|||
6-1162-RLL-932R2 | Promotional Support |
SA-13
|
|
6-1162-RLL-933R21 | Option Aircraft |
SA-60
|
|
6-1162-RLL-934R4
|
Disclosure of Confidential Information |
SA-71
|
|
|
|||
6-1162-RLL-935R1 | Performance Guarantees | SA-1 | |
6-1162-NIW-890 |
***
|
SA-39
|
|
|
|||
6-1162-RLL-936R4 |
Certain Contractual Matters
|
SA-4
|
|
6-1162-RLL-937 |
Alternate Advance Payment Schedule
|
||
|
|||
6-1162-RLL-938 |
|
||
|
|||
6-1162-RLL-939R1 | Certification Flight Test Aircraft | SA-1 | |
6-1162-RLL-940R1 | Training Matters |
SA-1
|
|
6-1162-RLL-941R2 | Other Matters |
SA-13
|
|
6-1162-RLL-942 |
Open Configuration Matters
|
||
6-1162-RLL-943R1 | Substitution Rights |
SA-6
|
|
6-1162-RLL-944 | *** | ||
6-1162-RLL-945
|
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
|
|
|
|
|||
6-1162-RLL-1855R3 | Additional Contractual Matters |
SA-4
|
|
6-1162-RLL-1856 |
***
|
SA-1 | |
6-1162-RLL-1857 | Service Ready Validation Program Field Test | SA-1 | |
6-1162-RLL-1858R1 | Escalation Matters |
SA-4
|
|
|
SA | |
Number | |||
RESTRICTED LETTER AGREEMENTS
|
|||
|
|||
6-1162-RLL-2036 | Amortization of Costs for Customer Unique Changes | SA-1 | |
|
|||
6-1162-RLL-2037 |
Reconciliation of the Aircraft Basic Price
|
SA-1 | |
|
|||
6-1162-RLL-2073 | Maintenance Training Matters | SA-1 | |
6-1162-KJJ-054R1 |
Business Matters
|
||
6-1162-KJJ-055R1
|
Structural Matters |
SA-25
|
|
|
|||
6-1162-KJJ-056 | Noise and Emission Matters |
|
SA-13 |
6-1162-KJJ-057 | Product Development Matters | SA-13 | |
6-1162-KJJ-058R1 | Additional Substitution Rights | SA-71 | |
6-1162-KJJ-150 | Flight Control Computer & Mode Control Panel Spares Matter | S A-14 | |
|
|||
6-1162-MSA-185R3
|
Delivery Change Contractual Matters |
SA-21
|
|
6-1162-JMG-669R8
|
*** | SA-54 | |
6-1162-JMG-747R1 | *** |
SA-36
|
|
6-1162-CHL-217 | Rescheduled Flight Test Aircraft |
SA-32
|
|
6-1162-NIW-606R1 | *** |
SA-36
|
|
6-1162-NIW-640 | Early Delivery of Two April 2004 Aircraft |
SA-35
|
|
6-1162-NIW-889 | Warranty - Exterior Color Schemes and Markings for YA143 and on |
SA-39
|
|
|
|||
6-1162-NIW-1142 | *** |
SA-43
|
6-1162-NIW-1369 | *** | SA-46 | |
|
|||
6-1162-NIW-1983 |
***
|
SA-62 | |
SWA-PA-1810-LA-1000419 | *** | SA-64 | |
SWA-PA-1810-LA-1001315 | *** | SA-66 | |
SWA-PA-1810-LA-02710 | *** | SA-72 | |
SWA-PA-1810-LA-100398 | 737-800 Promotional Support | SA-71 | |
SWA-PA-1810-LA-1003490
|
*** |
SA-71
|
|
|
|||
SWA-PA-1810-LA-1003367 | *** |
SA-71
|
ARTICLE 7.
|
Changes to the Detail Specification
.
|
Base Aircraft Price
|
Special Features
|
Aircraft Basic Price
|
||
Block A, B, C, D & E Aircraft
|
***
|
***
|
***
|
|
Block F & G Aircraft
|
***
|
***
|
***
|
|
Block H Aircraft
|
***
|
***
|
***
|
|
Block I Aircraft
|
***
|
***
|
***
|
|
Block J Aircraft
|
***
|
***
|
***
|
|
Block K Aircraft
|
***
|
***
|
***
|
|
Block K-W Aircraft
|
***
|
***
|
***
|
|
Block L Aircraft
|
***
|
***
|
***
|
|
Block T Aircraft
|
***
|
***
|
***
|
|
Block T-W Aircraft
|
***
|
***
|
***
|
|
Block T-W-1 / T-W-1a Aircraft
|
***
|
***
|
***
|
|
Block T-W-2 / T-W-2a Aircraft
|
***
|
***
|
***
|
|
Block T-W-2b Aircraft*
|
***
|
***
|
***
|
|
Block T-W-2c Aircraft***
|
***
|
***
|
***
|
|
Block T-W-3 Aircraft**
|
***
|
***
|
***
|
|
notes:
|
||||
Block K-W Aircraft: Block K airplanes with production winglets installation
|
||||
Block T-W Aircraft: Block T airplanes with production winglets installation
|
||||
Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1, 2006 through June 2008 at the signing of SA-47 -- (T-W-1a Aircraft -- Advance Payment Schedule per LA 6-1162-JGM-669)
|
||||
Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft after signing of SA-47 and
|
||||
Firm Aircraft contracted to deliver in July 2008 forward at the signing of SA47 --
|
||||
(T-W-2a Aircraft -- Advance Payment Schedule per LA 6-1162-JGM-669)
|
||||
Exhibit A-2 applies to Block T-W-2 / T-W-2a Aircraft delivering through Dec 2009 and the first Aircraft delivering in Jan 2010
|
||||
Exhibit A-3 applies to Block T-W-2 / T-W-2a Aircraft the second Aircraft delivering in Jan 2010 and on
|
||||
Block T-W-2b Aircraft - Advance Payment Schedule per LA SWA-PA-1810-LA-1001315;
|
||||
* Exhibit A-4 applies to Block T-W-2b Aircraft as identified in Exhibit A-4 to the Purchase Agreement^
|
||||
***Exhibit A-1A applies to Block T-W-2c Aircraft per SA69
|
||||
Block T-W-3 Aircraft (Substitute Aircraft per SA71) - Advance Payment Schedule per LA SWA-PA-1810-1001315
|
||||
**First minor model Special Features price =*** due to non-recuring charges^^
|
||||
**Exhibit A.2 applies to Block T-W-3 Aircraft
|
||||
Escalation Estimate
|
||||
Delivery
|
Number of
|
Aircraft
|
Adv Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price Per A/P
|
Serial Number
|
Oct-1998
|
1
|
F
|
***
|
|
Nov-1998
|
2
|
F
|
***
|
|
Dec-1998
|
2
|
F
|
***
|
|
Mar-1999
|
2
|
G
|
***
|
|
Jun-1999
|
2
|
H
|
***
|
|
Jul-1999
|
1
|
H
|
***
|
|
Aug-1999
|
1
|
H
|
***
|
|
Sep-1999
|
2
|
H
|
***
|
|
Oct-1999
|
1
|
H
|
***
|
|
Oct-1999
|
1
|
L
|
***
|
Nov-1999
|
2
|
L
|
***
|
|
Dec-1999
|
1
|
L
|
***
|
|
Mar-2000
|
1
|
H
|
***
|
|
Apr-2000
|
2
|
H
|
***
|
|
Jun-2000
|
3
|
L
|
***
|
|
Jul-2000
|
3
|
L
|
***
|
|
Sep-2000
|
1
|
H
|
***
|
|
Sep-2000
|
1
|
L
|
***
|
|
Oct-2000
|
2
|
H
|
***
|
|
Oct-2000
|
1
|
L
|
***
|
|
Nov-2000
|
4
|
L
|
***
|
|
Dec-2000
|
2
|
E
|
***
|
|
Dec-2000
|
1
|
L
|
***
|
|
Jan-2001
|
1
|
E
|
***
|
|
Jan-2001
|
1
|
L
|
***
|
|
Feb-2001
|
1
|
E
|
***
|
|
Feb-2001
|
1
|
L
|
***
|
|
Mar-2001
|
2
|
E
|
***
|
|
Mar-2001
|
2
|
H
|
***
|
|
Apr-2001
|
1
|
H
|
***
|
|
Jun-2001
|
3
|
E
|
***
|
|
Jul-2001
|
1
|
L
|
***
|
|
Sep-2001
|
3
|
E
|
***
|
|
Sep-2001
|
1
|
L
|
***
|
|
Oct-2001
|
3
|
H
|
***
|
|
Oct-2001
|
1
|
L
|
***
|
|
Nov-2001
|
2
|
I
|
***
|
|
Nov-2001
|
1
|
T
|
***
|
|
Dec-2001
|
1
|
I
|
***
|
|
Jan-2002
|
1
|
I
|
***
|
|
Feb-2002
|
1
|
T
|
***
|
|
Mar-2002
|
4
|
I
|
***
|
|
Apr-2002
|
2
|
I
|
***
|
|
Nov-2002
|
1
|
J
|
***
|
|
Dec-2002
|
2
|
I
|
***
|
|
Dec-2002
|
1
|
J
|
***
|
|
Mar-2003
|
2
|
L
|
***
|
|
May-2003
|
1
|
I
|
***
|
|
Jun-2003
|
2
|
I
|
***
|
|
Jul-2003
|
1
|
I
|
***
|
|
Jul-2003
|
1
|
L
|
***
|
|
Aug-2003
|
1
|
I
|
***
|
|
Aug-2003
|
2
|
L
|
***
|
|
Sep-2003
|
3
|
I
|
***
|
|
Nov-2003
|
2
|
J
|
***
|
|
Dec-2003
|
2
|
J
|
***
|
|
Jan-2004
|
2
|
T
|
***
|
|
Feb-2004
|
1
|
T
|
***
|
|
Mar-2004
|
1
|
J
|
***
|
|
Mar-2004
|
1
|
K
|
***
|
|
Apr-2004
|
3
|
K
|
***
|
|
Apr-2004
|
3
|
T
|
***
|
|
May-2004
|
1
|
K
|
***
|
|
May-2004
|
1
|
T
|
***
|
|
Jun-2004
|
2
|
K
|
***
|
|
Jun-2004
|
6
|
T
|
***
|
SWA - PA 1810 | Page 2 | SA - 73 |
^APR54184 | 2Q2010 Forecast |
Jul-2004
|
2
|
K
|
***
|
|
Jul-2004
|
2
|
T
|
***
|
|
Aug-2004
|
6
|
T-W
|
***
|
|
Sep-2004
|
1
|
K-W
|
***
|
|
Sep-2004
|
4
|
T-W
|
***
|
|
Oct-2004
|
4
|
K-W
|
***
|
|
Oct-2004
|
0
|
T-W
|
***
|
|
Nov-2004
|
3
|
T-W
|
***
|
|
Dec-2004
|
3
|
T-W
|
***
|
|
Jan-2005
|
5
|
T-W
|
***
|
|
Feb-2005
|
3
|
T-W
|
***
|
|
Mar-2005
|
4
|
T-W
|
***
|
|
Apr-2005
|
4
|
T-W
|
***
|
|
May-2005
|
2
|
T-W
|
***
|
|
Jun-2005
|
4
|
T-W
|
***
|
|
Jul-2005
|
2
|
T-W
|
***
|
|
Aug-2005
|
2
|
T-W
|
***
|
|
Sep-2005
|
3
|
T-W
|
***
|
|
Oct-2005
|
2
|
T-W
|
***
|
|
Nov-2005
|
2
|
T-W
|
***
|
|
Dec-2005
|
1
|
T-W
|
***
|
|
Jan-2006
|
1
|
T-W
|
***
|
|
Feb-2006
|
4
|
T-W
|
***
|
|
Mar-2006
|
3
|
T-W
|
***
|
|
Apr-2006
|
2
|
T-W
|
***
|
|
May-2006
|
5
|
T-W-1
|
***
|
|
Jun-2006
|
5
|
T-W-1
|
***
|
|
Jul-2006
|
3
|
T-W-1
|
***
|
|
Aug-2006
|
3
|
T-W-1
|
***
|
|
Sep-2006
|
3
|
T-W-1
|
***
|
|
Oct-2006
|
1
|
T-W-1
|
***
|
|
Nov-2006
|
2
|
T-W-1
|
***
|
|
Dec-2006
|
2
|
T-W-1
|
***
|
|
Jan-2007
|
2
|
T-W-1
|
***
|
|
Feb-2007
|
3
|
T-W-1
|
***
|
|
Mar-2007
|
2
|
T-W-1
|
***
|
|
Apr-2007
|
3
|
T-W-1
|
***
|
|
May-2007
|
3
|
T-W-1
|
***
|
|
Jun-2007
|
2
|
T-W-1
|
***
|
|
Jun-2007
|
1
|
T-W-1a
|
***
|
36528
|
Jul-2007
|
2
|
T-W-1
|
***
|
|
Jul-2007
|
1
|
T-W-1a
|
***
|
36610
|
Aug-2007
|
2
|
T-W-1
|
***
|
|
Aug-2007
|
3
|
T-W-1a
|
***
|
36611, 36632 & 36633
|
Sep-2007
|
2
|
T-W-1
|
***
|
|
Sep-2007
|
1
|
T-W-1a
|
***
|
36612
|
Oct-2007
|
3
|
T-W-1
|
***
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
Nov-2007
|
1
|
T-W-1
|
***
|
|
Nov-2007
|
1
|
T-W-1a
|
***
|
36614
|
Dec-2007
|
2
|
T-W-1
|
***
|
|
Dec-2007
|
1
|
T-W-1a
|
***
|
36615
|
Jan-2008
|
1
|
T-W-1
|
***
|
|
Jan-2008
|
2
|
T-W-1a
|
***
|
36616 & 36617
|
Jan-2008
|
1
|
T-W-2
|
***
|
36887
|
Feb-2008
|
1
|
T-W-1
|
***
|
SWA - PA 1810 | Page 3 | SA - 73 |
^APR54184 | 2Q2010 Forecast |
Feb-2008
|
3
|
T-W-1a
|
***
|
36618, 36619 & 36620
|
Mar-2008
|
1
|
T-W-1
|
***
|
|
Mar-2008
|
2
|
T-W-1a
|
***
|
36621 & 36622
|
Mar-2008
|
1
|
T-W-2
|
***
|
36888
|
Apr-2008
|
1
|
T-W-1
|
***
|
|
Apr-2008
|
2
|
T-W-1a
|
***
|
36623 & 36624
|
May-2008
|
1
|
T-W-1
|
***
|
|
May-2008
|
2
|
T-W-1a
|
***
|
36625 & 36626
|
Jun-2008
|
1
|
T-W-1
|
***
|
|
Jun-2008
|
2
|
T-W-1a
|
***
|
36627 & 36628
|
Jul-2008
|
2
|
T-W-2a
|
***
|
|
Jul-2008
|
2
|
T-W-2
|
***
|
36889 & 36890
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
Oct-2008
|
1
|
T-W-2a
|
***
|
|
Nov-2008
|
1
|
T-W-2a
|
***
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
|
Mar-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
1
|
T-W-2
|
***
|
36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
Jan-2010
|
1
|
T-W-2
|
***
|
36913
|
Feb-2010
|
1
|
T-W-2a
|
***
|
36659
|
Mar-2010
|
1
|
T-W-2a
|
***
|
36660
|
Mar-2010
|
1
|
T-W-2
|
***
|
36918
|
May-2010
|
1
|
T-W-2a
|
***
|
36662
|
May-2010
|
1
|
T-W-2
|
***
|
36924
|
Jun-2010
|
1
|
T-W-2a
|
***
|
36663
|
Jul-2010
|
1
|
T-W-2a
|
***
|
36664
|
Aug-2010
|
1
|
T-W-2a
|
***
|
36665
|
Oct-2010
|
1
|
T-W-2b
|
***
|
36667
|
Dec-2010
|
1
|
T-W-2b
|
***
|
36668
|
Feb-2011
|
1
|
T-W-2b
|
***
|
36669
|
March-11
|
1
|
T-W-2b
|
***
|
36671
|
March-11
|
1
|
T-W-2c
|
***
|
36726
|
April-11
|
1
|
T-W-2b
|
***
|
36672
|
April-11
|
1
|
T-W-2c
|
***
|
33936
|
May-11
|
1
|
T-W-2b
|
***
|
36673
|
May-11
|
1
|
T-W-2b
|
***
|
41528
|
June-11
|
1
|
T-W-2b
|
***
|
36674
|
July-11
|
3
|
T-W-2b
|
***
|
36675, 36963, 36962
|
August-11
|
2
|
T-W-2b
|
***
|
36676, 36965
|
September-11
|
2
|
T-W-2b
|
***
|
36677, 36966
|
Oct-2011
|
1
|
T-W-2b
|
***
|
36967
|
Dec-2011
|
2
|
T-W-2b
|
***
|
36679, TBD
|
Mar-2012
|
1
|
T-W-3
|
***
|
36680
|
Mar-2012
|
1
|
T-W-3
|
***
|
36980
|
Apr-2012
|
3
|
T-W-3
|
***
|
36681, 36983
, 36683
|
May-2012
|
3
|
T-W-3
|
***
|
36682, 36985
, 36987
|
Jul-2012
|
2
|
T-W-3
|
***
|
36684, 36990
|
Aug-2012
|
2
|
T-W-3
|
***
|
36685, 36992
|
Sep-2012
|
2
|
T-W-3
|
***
|
36686, 36994
|
Oct-2012
|
2
|
T-W-3
|
***
|
36687, 36997
|
Nov-2012
|
2
|
T-W-3
|
***
|
37005, 37003
|
Dec-2012
|
2
|
T-W-3
|
***
|
37006, 37009
|
SWA - PA 1810 | Page 4 | SA - 73 |
^APR54184 | 2Q2010 Forecast |
Jan-2013
|
2
|
T-W-2b
|
***
|
36891, 36634
|
Feb-2013
|
1
|
T-W-2b
|
***
|
36635
|
Mar-2013
|
2
|
T-W-2b
|
***
|
36892, 36638
|
Apr-2013
|
1
|
T-W-2b
|
***
|
36893
|
May-2013
|
1
|
T-W-2b
|
***
|
36894
|
Jun-2013
|
2
|
T-W-2b
|
***
|
36895, 36896
|
Jul-2013
|
1
|
T-W-2b
|
***
|
36897
|
Aug-2013
|
2
|
T-W-2b
|
***
|
36898, 36905
|
Sep-2013
|
2
|
T-W-2b
|
***
|
36907, 36911
|
Oct-2013
|
2
|
T-W-2b
|
***
|
36912, 36914
|
Nov-2013
|
1
|
T-W-2b
|
***
|
36915
|
Dec-2013
|
2
|
T-W-2b
|
***
|
36917, 36919
|
Jan-2014
|
2
|
T-W-2b
|
***
|
36920, 36909
|
Feb-2014
|
2
|
T-W-2b
|
***
|
36922, 36910
|
Mar-2014
|
3
|
T-W-2b
|
***
|
36943, 36927, 36925
|
Apr-2014
|
2
|
T-W-2b
|
***
|
36944, 36929
|
May-2014
|
1
|
T-W-2b
|
***
|
36946
|
Jun-2014
|
2
|
T-W-2b
|
***
|
36968, 36949
|
Jul-2014
|
1
|
T-W-2b
|
***
|
36951
|
Aug-2014
|
3
|
T-W-2b
|
***
|
36928, 36952, 37019
|
Sep-2014
|
1
|
T-W-2b
|
***
|
36954
|
Oct-2014
|
2
|
T-W-2b
|
***
|
36957, 37034
|
Nov-2014
|
1
|
T-W-2b
|
***
|
36971
|
Dec-2014
|
1
|
T-W-2b
|
***
|
37037
|
Jan-2015
|
1
|
T-W-2b
|
***
|
36899
|
Feb-2015
|
1
|
T-W-2b
|
***
|
36901
|
Mar-2015
|
2
|
T-W-2b
|
***
|
36902, 36936
|
Apr-2015
|
2
|
T-W-2b
|
***
|
36649, 36652
|
May-2015
|
1
|
T-W-2b
|
***
|
36903
|
Jun-2015
|
2
|
T-W-2b
|
***
|
36906, 36654
|
Jul-2015
|
1
|
T-W-2b
|
***
|
36655
|
Aug-2015
|
1
|
T-W-2b
|
***
|
36656
|
Sep-2015
|
1
|
T-W-2b
|
***
|
36657
|
Oct-2015
|
1
|
T-W-2b
|
***
|
36937
|
Dec-2015
|
1
|
T-W-2b
|
***
|
36941
|
Jan-2016
|
1
|
T-W-2b
|
***
|
36650
|
Feb-2016
|
2
|
T-W-2b
|
***
|
36904, 36932
|
Mar-2016
|
1
|
T-W-2b
|
***
|
36651
|
Apr-2016
|
2
|
T-W-2b
|
***
|
36653, 36938
|
May-2016
|
2
|
T-W-2b
|
***
|
36658, 36939
|
Jun-2016
|
1
|
T-W-2b
|
***
|
36916
|
Jul-2016
|
2
|
T-W-2b
|
***
|
36921, 36945
|
Aug-2016
|
1
|
T-W-2b
|
***
|
36678^
|
Aug-2016
|
1
|
T-W-2b
|
***
|
36661
|
Sep-2016
|
1
|
T-W-2b
|
***
|
36977^
|
Sep-2016
|
1
|
T-W-2b
|
***
|
36923
|
Oct-2016
|
1
|
T-W-2b
|
***
|
36666
|
Nov-2016
|
1
|
T-W-2b
|
***
|
36670
|
Galley System
|
March 1, 2011
|
Galley Inserts
|
March 1, 2011
|
Seats (passenger)
|
January 17, 2011
|
Miscellaneous Emergency Equipment
|
March 1, 2011
|
Item
|
Preliminary On-Dock Dates
Month of Delivery
|
|
March 2012 (2)
Aircraft
|
April 2012 (3)
Aircraft
|
|
Seats
|
1/23/2012
|
2/21/2012
|
Galleys/Furnishings
|
1/16/2012
|
2/14/2012
|
Antennas & Mounting Equipment
|
11/23/2011
|
12/21/2011
|
Avionics
|
1/16/2012
|
2/14/2012
|
Cabin Systems Equipment
|
1/16/2012
|
2/14/2012
|
Miscellaneous Emergency Equipment
|
1/16/2012
|
2/14/2012
|
Textiles/Raw Material
|
9/29/2011
|
10/28/2011
|
Cargo Systems
(Single Aisle Programs)
|
1/3/2012
|
1/31/2012
|
Provision Kits
(Single Aisle Programs)
|
9/2/2011
|
9/30/2011
|
Radomes (Single Aisle Programs)
|
12/16/2011
|
1/13/2012
|
Item
|
Preliminary On-Dock Dates
Month of Delivery
|
|
May 2012 (3)
Aircraft
|
||
Seats
|
3/22/2012
|
|
Galleys/Furnishings
|
3/15/2012
|
|
Antennas & Mounting Equipment
|
1/23/2012
|
|
Avionics
|
3/15/2012
|
|
Cabin Systems Equipment
|
3/15/2012
|
|
Miscellaneous Emergency Equipment
|
3/15/2012
|
|
Textiles/Raw Material
|
12/1/2011
|
|
Cargo Systems
(Single Aisle Programs)
|
3/1/2012
|
|
Provision Kits
(Single Aisle Programs)
|
11/1/2011
|
|
Radomes (Single Aisle Programs)
|
3/22/2012
|
|
Item
|
Preliminary On-Dock Dates
Month of Delivery
|
|
July 2012 (2)
Aircraft
|
August 2012 (2)
Aircraft
|
|
Seats
|
5/22/2012
|
6/21/2012
|
Galleys/Furnishings
|
5/15/2012
|
6/14/2012
|
Antennas & Mounting Equipment
|
3/22/2012
|
4/20/2012
|
Avionics
|
5/15/2012
|
6/14/2012
|
Cabin Systems Equipment
|
5/15/2012
|
6/14/2012
|
Miscellaneous Emergency Equipment
|
5/15/2012
|
6/14/2012
|
Textiles/Raw Material
|
2/9/2012
|
3/9/2012
|
Cargo Systems
(Single Aisle Programs)
|
5/1/2012
|
5/31/2012
|
Provision Kits
(Single Aisle Programs)
|
1/3/2012
|
1/31/2012
|
Radomes (Single Aisle Programs)
|
4/16/2012
|
5/14/2012
|
Item
|
Preliminary On-Dock Dates
Month of Delivery
|
|
September 2012 (2)
Aircraft
|
October 2012 (2)
Aircraft
|
|
Seats
|
7/23/2012
|
8/23/2012
|
Galleys/Furnishings
|
7/16/2012
|
8/16/2012
|
Antennas & Mounting Equipment
|
5/23/2012
|
6/22/2012
|
Avionics
|
7/16/2012
|
8/16/2012
|
Cabin Systems Equipment
|
7/16/2012
|
8/16/2012
|
Miscellaneous Emergency Equipment
|
7/16/2012
|
8/16/2012
|
Textiles/Raw Material
|
4/9/2012
|
5/10/2012
|
Cargo Systems
(Single Aisle Programs)
|
7/2/2012
|
8/2/2012
|
Provision Kits
(Single Aisle Programs)
|
3/2/2012
|
4/2/2012
|
Radomes (Single Aisle Programs)
|
6/15/2012
|
7/16/2012
|
Item
|
Preliminary On-Dock Dates
Month of Delivery
|
|
November 2012 (2)
Aircraft
|
December 2012 (2)
Aircraft
|
|
Seats
|
9/20/2012
|
10/23/2012
|
Galleys/Furnishings
|
9/13/2012
|
10/16/2012
|
Antennas & Mounting Equipment
|
7/20/2012
|
8/23/2012
|
Avionics
|
9/13/2012
|
10/16/2012
|
Cabin Systems Equipment
|
9/13/2012
|
10/16/2012
|
Miscellaneous Emergency Equipment
|
9/13/2012
|
10/16/2012
|
Textiles/Raw Material
|
6/7/2012
|
7/11/2012
|
Cargo Systems
(Single Aisle Programs)
|
8/30/2012
|
10/2/2012
|
Provision Kits
(Single Aisle Programs)
|
4/30/2012
|
6/1/2012
|
Radomes (Single Aisle Programs)
|
8/13/2012
|
9/17/2012
|
By:
|
/s/ Gary C. Kelly
|
|
Gary C. Kelly
|
||
Chief Executive Officer
|
||
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|
By:
|
/s/ Gary C. Kelly
|
Gary C. Kelly
|
|
Chief Executive Officer
|
|
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|