þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2013
|
|
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
¨
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,333
|
|
|
$
|
1,113
|
|
Short-term investments
|
1,995
|
|
|
1,857
|
|
||
Accounts and other receivables
|
463
|
|
|
332
|
|
||
Inventories of parts and supplies, at cost
|
521
|
|
|
469
|
|
||
Deferred income taxes
|
233
|
|
|
246
|
|
||
Prepaid expenses and other current assets
|
228
|
|
|
210
|
|
||
Total current assets
|
4,773
|
|
|
4,227
|
|
||
|
|
|
|
||||
Property and equipment, at cost:
|
|
|
|
|
|
||
Flight equipment
|
16,785
|
|
|
16,367
|
|
||
Ground property and equipment
|
2,963
|
|
|
2,714
|
|
||
Deposits on flight equipment purchase contracts
|
690
|
|
|
416
|
|
||
|
20,438
|
|
|
19,497
|
|
||
Less allowance for depreciation and amortization
|
7,235
|
|
|
6,731
|
|
||
|
13,203
|
|
|
12,766
|
|
||
Goodwill
|
970
|
|
|
970
|
|
||
Other assets
|
418
|
|
|
633
|
|
||
|
$
|
19,364
|
|
|
$
|
18,596
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
1,134
|
|
|
$
|
1,107
|
|
Accrued liabilities
|
1,172
|
|
|
1,102
|
|
||
Air traffic liability
|
2,981
|
|
|
2,170
|
|
||
Current maturities of long-term debt
|
259
|
|
|
271
|
|
||
Total current liabilities
|
5,546
|
|
|
4,650
|
|
||
|
|
|
|
||||
Long-term debt less current maturities
|
2,616
|
|
|
2,883
|
|
||
Deferred income taxes
|
2,937
|
|
|
2,884
|
|
||
Deferred gains from sale and leaseback of aircraft
|
54
|
|
|
63
|
|
||
Other noncurrent liabilities
|
1,198
|
|
|
1,124
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock
|
808
|
|
|
808
|
|
||
Capital in excess of par value
|
1,205
|
|
|
1,210
|
|
||
Retained earnings
|
6,246
|
|
|
5,768
|
|
||
Accumulated other comprehensive loss
|
(114
|
)
|
|
(119
|
)
|
||
Treasury stock, at cost
|
(1,132
|
)
|
|
(675
|
)
|
||
Total stockholders' equity
|
7,013
|
|
|
6,992
|
|
||
|
$
|
19,364
|
|
|
$
|
18,596
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
259
|
|
|
$
|
16
|
|
|
$
|
542
|
|
|
$
|
343
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
221
|
|
|
217
|
|
|
643
|
|
|
620
|
|
||||
Unrealized gains on fuel derivative instruments
|
(58
|
)
|
|
(16
|
)
|
|
(24
|
)
|
|
(154
|
)
|
||||
Deferred income taxes
|
29
|
|
|
82
|
|
|
52
|
|
|
120
|
|
||||
Amortization of deferred gains on sale and leaseback of aircraft
|
(3
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(9
|
)
|
||||
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts and other receivables
|
73
|
|
|
(2
|
)
|
|
(74
|
)
|
|
(107
|
)
|
||||
Other assets
|
(63
|
)
|
|
(74
|
)
|
|
(83
|
)
|
|
(164
|
)
|
||||
Accounts payable and accrued liabilities
|
(98
|
)
|
|
(187
|
)
|
|
185
|
|
|
114
|
|
||||
Air traffic liability
|
(95
|
)
|
|
(5
|
)
|
|
811
|
|
|
688
|
|
||||
Cash collateral paid to derivative counterparties
|
80
|
|
|
252
|
|
|
56
|
|
|
218
|
|
||||
Other, net
|
83
|
|
|
184
|
|
|
89
|
|
|
164
|
|
||||
Net cash provided by operating activities
|
428
|
|
|
464
|
|
|
2,188
|
|
|
1,833
|
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payments for purchase of property and equipment, net
|
(268
|
)
|
|
(406
|
)
|
|
(995
|
)
|
|
(949
|
)
|
||||
Purchases of short-term investments
|
(896
|
)
|
|
(663
|
)
|
|
(2,520
|
)
|
|
(1,918
|
)
|
||||
Proceeds from sales of short-term and other investments
|
805
|
|
|
798
|
|
|
2,385
|
|
|
2,223
|
|
||||
Other, net
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||
Net cash used in investing activities
|
(359
|
)
|
|
(277
|
)
|
|
(1,130
|
)
|
|
(644
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from Employee stock plans
|
12
|
|
|
5
|
|
|
31
|
|
|
22
|
|
||||
Payments of long-term debt and capital lease obligations
|
(51
|
)
|
|
(48
|
)
|
|
(267
|
)
|
|
(517
|
)
|
||||
Payments of cash dividends
|
(28
|
)
|
|
(7
|
)
|
|
(71
|
)
|
|
(22
|
)
|
||||
Repurchase of common stock
|
(150
|
)
|
|
(50
|
)
|
|
(501
|
)
|
|
(325
|
)
|
||||
Other, net
|
(8
|
)
|
|
(2
|
)
|
|
(30
|
)
|
|
(8
|
)
|
||||
Net cash used in financing activities
|
(225
|
)
|
|
(102
|
)
|
|
(838
|
)
|
|
(850
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(156
|
)
|
|
85
|
|
|
220
|
|
|
339
|
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,489
|
|
|
1,083
|
|
|
1,113
|
|
|
829
|
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
1,333
|
|
|
$
|
1,168
|
|
|
$
|
1,333
|
|
|
$
|
1,168
|
|
|
|
|
|
|
|
|
|
||||||||
CASH PAYMENTS FOR:
|
|
|
|
|
|
|
|
||||||||
Interest, net of amount capitalized
|
$
|
39
|
|
|
$
|
39
|
|
|
$
|
106
|
|
|
$
|
119
|
|
Income taxes
|
$
|
124
|
|
|
$
|
2
|
|
|
$
|
147
|
|
|
$
|
97
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
NUMERATOR:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
259
|
|
|
$
|
16
|
|
|
$
|
542
|
|
|
$
|
343
|
|
Incremental income effect of
interest on 5.25% convertible notes
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Net income after assumed conversion
|
$
|
260
|
|
|
$
|
16
|
|
|
$
|
544
|
|
|
$
|
345
|
|
|
|
|
|
|
|
|
|
||||||||
DENOMINATOR:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding, basic
|
703
|
|
|
739
|
|
|
714
|
|
|
756
|
|
||||
Dilutive effect of Employee stock options and
restricted stock units
|
2
|
|
|
1
|
|
|
2
|
|
|
—
|
|
||||
Dilutive effect of 5.25% convertible notes
|
6
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||
Adjusted weighted-average shares outstanding, diluted
|
711
|
|
|
740
|
|
|
722
|
|
|
762
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.37
|
|
|
$
|
0.02
|
|
|
$
|
0.76
|
|
|
$
|
0.45
|
|
Diluted
|
$
|
0.37
|
|
|
$
|
0.02
|
|
|
$
|
0.75
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
||||||||
Potentially dilutive amounts excluded from calculations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock options and restricted stock units
|
9
|
|
|
32
|
|
|
10
|
|
|
40
|
|
||||
5.25% convertible notes
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
|
Fuel hedged as of
|
|
|
|
|
|
September 30, 2013
|
|
Derivative underlying commodity type as of
|
|
Period (by year)
|
|
(gallons in millions)
(a)
|
|
September 30, 2013
|
|
Remainder of 2013
|
|
208
|
|
|
Brent crude oil and Gulf Coast jet fuel
|
2014
|
|
671
|
|
|
WTI crude and Brent crude oil
|
2015
|
|
790
|
|
|
WTI crude and Brent crude oil
|
2016
|
|
977
|
|
|
Brent crude oil
|
2017
|
|
933
|
|
|
WTI crude and Brent crude oil
|
|
|
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||||
|
|
Balance Sheet
|
|
Fair value at
|
|
Fair value at
|
|
Fair value at
|
|
Fair value at
|
||||||||
(in millions)
|
|
location
|
|
9/30/2013
|
|
12/31/2012
|
|
9/30/2013
|
|
12/31/2012
|
||||||||
Derivatives designated as hedges*
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivative contracts (gross)
|
|
Prepaid expenses and other current assets
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
Fuel derivative contracts (gross)
|
|
Other assets
|
|
114
|
|
|
355
|
|
|
2
|
|
|
16
|
|
||||
Fuel derivative contracts (gross)
|
|
Other noncurrent liabilities
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest rate derivative contracts
|
|
Other assets
|
|
22
|
|
|
31
|
|
|
—
|
|
|
—
|
|
||||
Interest rate derivative contracts
|
|
Other noncurrent liabilities
|
|
—
|
|
|
—
|
|
|
87
|
|
|
126
|
|
||||
Total derivatives designated as hedges
|
|
$
|
186
|
|
|
$
|
386
|
|
|
$
|
103
|
|
|
$
|
142
|
|
||
Derivatives not designated as hedges*
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivative contracts (gross)
|
|
Prepaid expenses and other current assets
|
|
$
|
268
|
|
|
$
|
375
|
|
|
$
|
239
|
|
|
$
|
327
|
|
Fuel derivative contracts (gross)
|
|
Other assets
|
|
64
|
|
|
233
|
|
|
118
|
|
|
351
|
|
||||
Fuel derivative contracts (gross)
|
|
Accrued liabilities
|
|
2
|
|
|
10
|
|
|
5
|
|
|
60
|
|
||||
Fuel derivative contracts (gross)
|
|
Other noncurrent liabilities
|
|
4
|
|
|
—
|
|
|
37
|
|
|
—
|
|
||||
Total derivatives not designated as hedges
|
|
|
|
$
|
338
|
|
|
$
|
618
|
|
|
$
|
399
|
|
|
$
|
738
|
|
Total derivatives
|
|
|
|
$
|
524
|
|
|
$
|
1,004
|
|
|
$
|
502
|
|
|
$
|
880
|
|
|
|
Balance Sheet
|
|
September 30,
|
|
December 31,
|
||
(in millions)
|
|
location
|
|
2013
|
|
2012
|
||
Cash collateral deposits provided to counterparties for interest
rate contracts - noncurrent
|
|
Offset against Other noncurrent liabilities
|
|
33
|
|
|
89
|
|
Receivable from third parties for fuel contracts - current
|
|
Accounts and other receivables
|
|
43
|
|
|
—
|
|
Receivable from third parties for fuel contracts - noncurrent
|
|
Other assets
|
|
14
|
|
|
54
|
|
Prepaid settlements for fuel contracts - current
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
15
|
|
|
Counterparty (CP)
|
|
|
||||||||||||||||||||||||||||
(in millions)
|
A
|
|
B
|
|
C
|
|
D
|
|
E
|
|
F
|
|
Other
(a)
|
|
Total
|
||||||||||||||||
Fair value of fuel derivatives
|
$
|
19
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
(3
|
)
|
|
$
|
17
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
87
|
|
Cash collateral held (by) CP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Aircraft collateral pledged to CP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Letters of credit (LC)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Option to substitute LC for aircraft
|
(340) to (740)(d)
|
|
(100) to (500)(d)
|
|
N/A
|
|
N/A
|
|
(250) to (650) (d)
|
|
N/A
|
|
|
|
|
||||||||||||||||
Option to substitute LC for cash
|
N/A
|
|
>(500)
|
|
(100) to (150)(e)
|
|
N/A
|
|
(50) to (250) or >(650)(d)
|
|
N/A
|
|
|
|
|
||||||||||||||||
If credit rating is investment
grade, fair value of fuel
derivative level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash is provided to CP
|
(40) to (340) or >(740)
|
|
(50) to (100) or >(500)
|
|
>(50)
|
|
>(75)
|
|
(50) to (250) or >(650)
|
|
>(50)
|
|
|
|
|
||||||||||||||||
Cash is received from CP
|
>75
|
|
>150
|
|
>175(c)
|
|
>125(c)
|
|
>200
|
|
>30
|
|
|
|
|
||||||||||||||||
Aircraft or cash can be pledged to
CP as collateral
|
(340) to (740)(d)
|
|
(100) to (500) (d)
|
|
N/A
|
|
N/A
|
|
(250) to (650) (d)
|
|
N/A
|
|
|
|
|
||||||||||||||||
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash is provided to CP
|
(0) to (300) or >(700)
|
|
(0) to (100) or >(500)
|
|
(b)
|
|
(b)
|
|
(0) to (250) or >(650)
|
|
(b)
|
|
|
|
|
||||||||||||||||
Cash is received from CP
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
(b)
|
|
|
|
|
||||||||||||||||
Aircraft can be pledged to CP as
collateral
|
(300) to (700)
|
|
(100) to (500)
|
|
N/A
|
|
N/A
|
|
(250) to (650)
|
|
N/A
|
|
|
|
|
|
Three months ended September 30,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
NET INCOME
|
$
|
259
|
|
|
$
|
16
|
|
Unrealized gain on fuel derivative instruments, net of
deferred taxes of $76 and $120
|
129
|
|
|
192
|
|
||
Unrealized gain (loss) on interest rate derivative instruments, net of
deferred taxes of $2 and ($2)
|
2
|
|
|
(3
|
)
|
||
Other, net of deferred taxes of $2 and $3
|
3
|
|
|
6
|
|
||
Total other comprehensive income
|
$
|
134
|
|
|
$
|
195
|
|
COMPREHENSIVE INCOME
|
$
|
393
|
|
|
$
|
211
|
|
|
Nine months ended September 30,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
NET INCOME
|
$
|
542
|
|
|
$
|
343
|
|
Unrealized gain (loss) on fuel derivative instruments, net of
deferred taxes of ($16) and $63
|
(25
|
)
|
|
100
|
|
||
Unrealized gain (loss) on interest rate derivative instruments, net of
deferred taxes of $16 and ($3)
|
26
|
|
|
(5
|
)
|
||
Other, net of deferred taxes of $6 and $2
|
4
|
|
|
4
|
|
||
Total other comprehensive income
|
$
|
5
|
|
|
$
|
99
|
|
COMPREHENSIVE INCOME
|
$
|
547
|
|
|
$
|
442
|
|
(in millions)
|
Fuel derivatives
|
|
Interest rate derivatives
|
|
Defined benefit plan items
|
|
Other
|
|
Deferred tax
|
|
Accumulated other
comprehensive income (loss)
|
||||||||||||
Balance at June 30, 2013
|
$
|
(349
|
)
|
|
$
|
(70
|
)
|
|
$
|
26
|
|
|
$
|
(3
|
)
|
|
$
|
148
|
|
|
(248
|
)
|
|
Changes in fair value
|
168
|
|
|
(3
|
)
|
|
—
|
|
|
5
|
|
|
(64
|
)
|
|
106
|
|
||||||
Reclassification to earnings
|
37
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
28
|
|
||||||
Balance at September 30, 2013
|
$
|
(144
|
)
|
|
$
|
(66
|
)
|
|
$
|
26
|
|
|
$
|
2
|
|
|
$
|
68
|
|
|
$
|
(114
|
)
|
(in millions)
|
Fuel derivatives
|
|
Interest rate derivatives
|
|
Defined benefit plan items
|
|
Other
|
|
Deferred tax
|
|
Accumulated other
comprehensive income (loss)
|
||||||||||||
Balance at December 31, 2012
|
$
|
(103
|
)
|
|
$
|
(108
|
)
|
|
$
|
26
|
|
|
$
|
(8
|
)
|
|
$
|
74
|
|
|
$
|
(119
|
)
|
Changes in fair value
|
(181
|
)
|
|
20
|
|
|
—
|
|
|
10
|
|
|
54
|
|
|
(97
|
)
|
||||||
Reclassification to earnings
|
140
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
102
|
|
||||||
Balance at September 30, 2013
|
$
|
(144
|
)
|
|
$
|
(66
|
)
|
|
$
|
26
|
|
|
$
|
2
|
|
|
$
|
68
|
|
|
$
|
(114
|
)
|
Three months ended September 30, 2013
|
||||||
(in millions)
|
|
Amounts reclassified from AOCI
|
|
Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income
|
||
AOCI components
|
|
|
||||
Unrealized gain on fuel derivative instruments
|
|
$
|
37
|
|
|
Fuel and oil expense
|
|
|
$
|
13
|
|
|
Less: Tax Expense
|
|
|
$
|
24
|
|
|
Net of tax
|
Unrealized gain on interest rate derivative instruments
|
|
$
|
7
|
|
|
Interest expense
|
|
|
$
|
3
|
|
|
Less: Tax Expense
|
|
|
$
|
4
|
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
28
|
|
|
Net of tax
|
Nine months ended September 30, 2013
|
||||||
(in millions)
|
|
Amounts reclassified from AOCI
|
|
Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income
|
||
AOCI components
|
|
|
||||
Unrealized gain on fuel derivative instruments
|
|
$
|
140
|
|
|
Fuel and oil expense
|
|
|
$
|
52
|
|
|
Less: Tax Expense
|
|
|
$
|
88
|
|
|
Net of tax
|
Unrealized gain on interest rate derivative instruments
|
|
$
|
22
|
|
|
Interest expense
|
|
|
$
|
8
|
|
|
Less: Tax Expense
|
|
|
$
|
14
|
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
102
|
|
|
Net of tax
|
|
September 30,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Fuel derivative contracts
|
$
|
58
|
|
|
$
|
221
|
|
Interest rate derivative contracts
|
22
|
|
|
31
|
|
||
Receivable from third parties for fuel contracts - noncurrent
|
14
|
|
|
54
|
|
||
Intangible assets
|
123
|
|
|
138
|
|
||
Non-current investments
|
44
|
|
|
41
|
|
||
Other
|
157
|
|
|
148
|
|
||
Other assets
|
$
|
418
|
|
|
$
|
633
|
|
|
September 30,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Retirement plans
|
$
|
173
|
|
|
$
|
135
|
|
Aircraft rentals
|
171
|
|
|
139
|
|
||
Vacation pay
|
286
|
|
|
270
|
|
||
Health
|
62
|
|
|
70
|
|
||
Fuel derivative contracts
|
3
|
|
|
50
|
|
||
Workers compensation
|
158
|
|
|
159
|
|
||
Accrued taxes
|
116
|
|
|
67
|
|
||
Other
|
203
|
|
|
212
|
|
||
Accrued liabilities
|
$
|
1,172
|
|
|
$
|
1,102
|
|
|
September 30,
|
|
December 31,
|
||||
(in millions)
|
2013
|
|
2012
|
||||
Postretirement obligation
|
$
|
169
|
|
|
$
|
148
|
|
Non-current lease-related obligations
|
312
|
|
|
376
|
|
||
Airport construction obligation
|
420
|
|
|
331
|
|
||
Other deferred compensation
|
153
|
|
|
141
|
|
||
Fuel derivative contracts
|
18
|
|
|
—
|
|
||
Interest rate derivative contracts
|
54
|
|
|
37
|
|
||
Other
|
72
|
|
|
91
|
|
||
Other non-current liabilities
|
$
|
1,198
|
|
|
$
|
1,124
|
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
|
|
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
||||||||
Description
|
|
September 30, 2013
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets
|
|
(in millions)
|
||||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (a)
|
|
$
|
1,107
|
|
|
$
|
1,107
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial paper
|
|
215
|
|
|
—
|
|
|
215
|
|
|
—
|
|
||||
Certificates of deposit
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
|
||||||||
Treasury bills
|
|
1,760
|
|
|
1,760
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
|
235
|
|
|
—
|
|
|
235
|
|
|
—
|
|
||||
Noncurrent investments (b)
|
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||
Interest rate derivatives (see Note 5)
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
46
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||
Option contracts (c)
|
|
435
|
|
|
—
|
|
|
—
|
|
|
435
|
|
||||
Option contracts (d)
|
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Other available-for-sale securities
|
|
58
|
|
|
53
|
|
|
—
|
|
|
5
|
|
||||
Total assets
|
|
$
|
3,948
|
|
|
$
|
2,920
|
|
|
$
|
529
|
|
|
$
|
499
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
||||
Option contracts (c)
|
|
(335
|
)
|
|
—
|
|
|
—
|
|
|
(335
|
)
|
||||
Option contracts (d)
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
||||
Interest rate derivatives (see Note 5)
|
|
(87
|
)
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
||||
Deferred compensation
|
|
(149
|
)
|
|
(149
|
)
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
(650
|
)
|
|
$
|
(149
|
)
|
|
$
|
(125
|
)
|
|
$
|
(376
|
)
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
|
|
|
|
Quoted prices in
active markets
for identical assets
|
|
Significant
other observable
inputs
|
|
Significant
unobservable
inputs
|
||||||||
Description
|
|
December 31, 2012
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets
|
|
(in millions)
|
||||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (a)
|
|
$
|
829
|
|
|
$
|
829
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial paper
|
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
||||
Certificates of deposit
|
|
34
|
|
|
—
|
|
|
34
|
|
|
—
|
|
||||
Eurodollar Time Deposits
|
|
80
|
|
|
—
|
|
|
80
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
|
||||||||
Treasury bills
|
|
1,624
|
|
|
1,624
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
|
233
|
|
|
—
|
|
|
233
|
|
|
—
|
|
||||
Noncurrent investments (b)
|
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||
Interest rate derivatives (see Note 5)
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
113
|
|
|
—
|
|
|
113
|
|
|
—
|
|
||||
Option contracts (c)
|
|
850
|
|
|
—
|
|
|
—
|
|
|
850
|
|
||||
Option contracts (d)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Other available-for-sale securities
|
|
49
|
|
|
44
|
|
|
—
|
|
|
5
|
|
||||
Total assets
|
|
$
|
4,059
|
|
|
$
|
2,497
|
|
|
$
|
661
|
|
|
$
|
901
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Swap contracts (c)
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
Option contracts (c)
|
|
(637
|
)
|
|
—
|
|
|
—
|
|
|
(637
|
)
|
||||
Swap contracts (d)
|
|
(56
|
)
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
||||
Option contracts (d)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Interest rate derivatives (see Note 5)
|
|
(126
|
)
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
||||
Deferred Compensation
|
|
(137
|
)
|
|
(137
|
)
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
(1,017
|
)
|
|
$
|
(137
|
)
|
|
$
|
(239
|
)
|
|
$
|
(641
|
)
|
|
Fair value measurements using significant
unobservable inputs (Level 3)
|
||||||||||||||
|
Fuel
|
|
Auction rate
|
|
Other
|
|
|
||||||||
(in millions)
|
derivatives
|
|
securities
|
|
securities
|
|
Total
|
||||||||
Balance at June 30, 2013
|
$
|
(76
|
)
|
|
$
|
36
|
|
|
$
|
5
|
|
|
$
|
(35
|
)
|
Total gains (realized or unrealized)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
|
62
|
|
|
—
|
|
|
—
|
|
|
62
|
|
||||
Included in other comprehensive income
|
155
|
|
|
3
|
|
|
—
|
|
|
158
|
|
||||
Purchases
|
26
|
|
(a)
|
—
|
|
|
—
|
|
|
26
|
|
||||
Sales
|
(88
|
)
|
(a)
|
—
|
|
|
—
|
|
|
(88
|
)
|
||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at September 30, 2013
|
$
|
79
|
|
|
$
|
39
|
|
(b)
|
$
|
5
|
|
|
$
|
123
|
|
The amount of total gains for the period
included in earnings attributable to the
change in unrealized gains or losses relating
to assets still held at September 30, 2013
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
Fair value measurements using significant
unobservable inputs (Level 3)
|
||||||||||||||
|
Fuel
|
|
Auction rate
|
|
Other
|
|
|
||||||||
(in millions)
|
derivatives
|
|
securities
|
|
securities
|
|
Total
|
||||||||
Balance at December 31, 2012
|
$
|
219
|
|
|
$
|
36
|
|
|
$
|
5
|
|
|
$
|
260
|
|
Total gains or (losses) (realized or unrealized)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Included in earnings
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
||||
Included in other comprehensive income
|
(190
|
)
|
|
3
|
|
|
—
|
|
|
(187
|
)
|
||||
Purchases
|
301
|
|
(a)
|
—
|
|
|
—
|
|
|
301
|
|
||||
Sales
|
(371
|
)
|
(a)
|
—
|
|
|
—
|
|
|
(371
|
)
|
||||
Settlements
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
Balance at September 30, 2013
|
$
|
79
|
|
|
$
|
39
|
|
(b)
|
$
|
5
|
|
|
$
|
123
|
|
The amount of total gains for the period
included in earnings attributable to the
change in unrealized gains or losses relating
to assets still held at September 30, 2013
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92
|
|
Quantitative information about Level 3 fair value measurements
|
||||
|
Valuation technique
|
Unobservable input
|
Period (by year)
|
Range
|
Fuel derivatives
|
Option model
|
Implied volatility
|
Fourth quarter 2013
|
11-26%
|
|
|
|
2014
|
14-28%
|
|
|
|
2015
|
14-22%
|
|
|
|
2016
|
14-20%
|
|
|
|
2017
|
14-17%
|
Auction rate securities
|
Discounted cash flow
|
Time to principal recovery
|
|
5-8 years
|
|
|
Illiquidity premium
|
|
3-4%
|
|
|
Counterparty credit spread
|
|
1-3%
|
(in millions)
|
Carrying value
|
|
Estimated fair value
|
|
Fair value level hierarchy
|
||
5.25% Notes due 2014
|
359
|
|
|
364
|
|
|
Level 2
|
5.75% Notes due 2016
|
322
|
|
|
353
|
|
|
Level 2
|
5.25% Convertible Senior Notes due 2016
|
115
|
|
|
153
|
|
|
Level 2
|
5.125% Notes due 2017
|
324
|
|
|
353
|
|
|
Level 2
|
Fixed-rate 717 Aircraft Notes payable through 2017 - 10.38%
|
55
|
|
|
52
|
|
|
Level 2
|
French Credit Agreements due 2018 - 1.12%
|
51
|
|
|
51
|
|
|
Level 3
|
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02%
|
31
|
|
|
32
|
|
|
Level 3
|
Term Loan Agreement due 2019 - 6.315%
|
218
|
|
|
221
|
|
|
Level 3
|
Term Loan Agreement due 2019 - 6.84%
|
85
|
|
|
91
|
|
|
Level 3
|
Term Loan Agreement due 2020 - 5.223%
|
422
|
|
|
396
|
|
|
Level 3
|
Floating-rate 737 Aircraft Notes payable through 2020
|
348
|
|
|
343
|
|
|
Level 3
|
Pass Through Certificates due 2022 - 6.24%
|
371
|
|
|
423
|
|
|
Level 2
|
7.375% Debentures due 2027
|
137
|
|
|
149
|
|
|
Level 2
|
|
|
Three months ended September 30,
|
|
|
|
|||||
|
|
2013
|
|
2012
|
|
Change
|
||||
Revenue passengers carried
|
|
27,015,866
|
|
|
28,318,779
|
|
|
(4.6
|
)%
|
|
Enplaned passengers
|
|
33,792,804
|
|
|
34,913,698
|
|
|
(3.2
|
)%
|
|
Revenue passenger miles (RPMs) (000s)
(1)
|
|
27,009,604
|
|
|
27,162,606
|
|
|
(0.6
|
)%
|
|
Available seat miles (ASMs) (000s)
(2)
|
|
33,425,087
|
|
|
33,080,233
|
|
|
1.0
|
%
|
|
Load factor
(3)
|
|
80.8
|
%
|
|
82.1
|
%
|
|
(1.3
|
)
|
pts
|
Average length of passenger haul (miles)
|
|
1,000
|
|
|
959
|
|
|
4.3
|
%
|
|
Average aircraft stage length (miles)
|
|
708
|
|
|
697
|
|
|
1.6
|
%
|
|
Trips flown
|
|
332,991
|
|
|
347,346
|
|
|
(4.1
|
)%
|
|
Average passenger fare
|
|
159.39
|
|
|
143.24
|
|
|
11.3
|
%
|
|
Passenger revenue yield per RPM (cents)
(4)
|
|
15.94
|
|
|
14.93
|
|
|
6.8
|
%
|
|
Operating revenue per ASM (cents)
(5)
|
|
13.60
|
|
|
13.02
|
|
|
4.5
|
%
|
|
Passenger revenue per ASM (cents)
(6)
|
|
12.88
|
|
|
12.26
|
|
|
5.1
|
%
|
|
Operating expenses per ASM (cents)
(7)
|
|
12.43
|
|
|
12.87
|
|
|
(3.4
|
)%
|
|
Operating expenses per ASM, excluding fuel (cents)
|
|
8.09
|
|
|
8.25
|
|
|
(1.9
|
)%
|
|
Operating expenses per ASM, excluding fuel and profitsharing (cents)
|
|
7.88
|
|
|
8.16
|
|
|
(3.4
|
)%
|
|
Fuel costs per gallon, including fuel tax
|
|
3.10
|
|
|
3.19
|
|
|
(2.8
|
)%
|
|
Fuel costs per gallon, including fuel tax, economic
|
|
3.06
|
|
|
3.16
|
|
|
(3.2
|
)%
|
|
Fuel consumed, in gallons (millions)
|
|
466
|
|
|
478
|
|
|
(2.5
|
)%
|
|
Active fulltime equivalent Employees
|
|
45,148
|
|
|
46,048
|
|
|
(2.0
|
)%
|
|
Aircraft in service at period-end
(8)
|
|
683
|
|
|
692
|
|
|
(1.3
|
)%
|
|
|
|
Nine months ended September 30,
|
|
|
|
|||||
|
|
2013
|
|
2012
|
|
Change
|
||||
Revenue passengers carried
|
|
81,180,167
|
|
|
82,738,949
|
|
|
(1.9
|
)%
|
|
Enplaned passengers
|
|
100,036,208
|
|
|
101,278,271
|
|
|
(1.2
|
)%
|
|
Revenue passenger miles (RPMs) (000s)
(1)
|
|
78,695,853
|
|
|
78,053,971
|
|
|
0.8
|
%
|
|
Available seat miles (ASMs) (000s)
(2)
|
|
98,457,754
|
|
|
96,943,715
|
|
|
1.6
|
%
|
|
Load factor
(3)
|
|
79.9
|
%
|
|
80.5
|
%
|
|
(0.6
|
)
|
pts
|
Average length of passenger haul (miles)
|
|
969
|
|
|
943
|
|
|
2.8
|
%
|
|
Average aircraft stage length (miles)
|
|
703
|
|
|
694
|
|
|
1.3
|
%
|
|
Trips flown
|
|
995,097
|
|
|
1,033,968
|
|
|
(3.8
|
)%
|
|
Average passenger fare
|
|
154.28
|
|
|
146.90
|
|
|
5.0
|
%
|
|
Passenger revenue yield per RPM (cents)
(4)
|
|
15.91
|
|
|
15.57
|
|
|
2.2
|
%
|
|
Operating revenue per ASM (cents)
(5)
|
|
13.48
|
|
|
13.32
|
|
|
1.2
|
%
|
|
Passenger revenue per ASM (cents)
(6)
|
|
12.72
|
|
|
12.54
|
|
|
1.4
|
%
|
|
Operating expenses per ASM (cents)
(7)
|
|
12.57
|
|
|
12.77
|
|
|
(1.6
|
)%
|
|
Operating expenses per ASM, excluding fuel (cents)
|
|
8.11
|
|
|
8.01
|
|
|
1.2
|
%
|
|
Operating expenses per ASM, excluding fuel and profitsharing (cents)
|
|
7.95
|
|
|
7.90
|
|
|
0.6
|
%
|
|
Fuel costs per gallon, including fuel tax
|
|
3.19
|
|
|
3.27
|
|
|
(2.4
|
)%
|
|
Fuel costs per gallon, including fuel tax, economic
|
|
3.13
|
|
|
3.27
|
|
|
(4.3
|
)%
|
|
Fuel consumed, in gallons (millions)
|
|
1,376
|
|
|
1,404
|
|
|
(2.0
|
)%
|
|
Active fulltime equivalent Employees
|
|
45,148
|
|
|
46,048
|
|
|
(2.0
|
)%
|
|
Aircraft in service at period-end
(8)
|
|
683
|
|
|
692
|
|
|
(1.3
|
)%
|
|
|
Three months ended September 30,
|
|
Percent
|
|
Nine months ended September 30,
|
|
Percent
|
||||||||||||||
|
2013
|
|
2012
|
|
Change
|
|
2013
|
|
2012
|
|
Change
|
||||||||||
Fuel and oil expense, unhedged
|
$
|
1,435
|
|
|
$
|
1,503
|
|
|
|
|
$
|
4,282
|
|
|
$
|
4,526
|
|
|
|
||
Add: Fuel hedge losses included in Fuel and oil expense
|
15
|
|
|
25
|
|
|
|
|
114
|
|
|
89
|
|
|
|
||||||
Fuel and oil expense, as reported
|
$
|
1,450
|
|
|
$
|
1,528
|
|
|
|
|
$
|
4,396
|
|
|
$
|
4,615
|
|
|
|
||
Deduct: Net impact from fuel contracts
|
(21
|
)
|
|
(12
|
)
|
|
|
|
(71
|
)
|
|
(2
|
)
|
|
|
||||||
Fuel and oil expense, non-GAAP
|
$
|
1,429
|
|
|
$
|
1,516
|
|
|
(5.7
|
)
|
|
$
|
4,325
|
|
|
$
|
4,613
|
|
|
(6.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total operating expenses, as reported
|
$
|
4,155
|
|
|
$
|
4,258
|
|
|
|
|
|
$
|
12,378
|
|
|
$
|
12,383
|
|
|
|
|
Add (Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts
|
(17
|
)
|
|
4
|
|
|
|
|
|
(10
|
)
|
|
(8
|
)
|
|
|
|
||||
Add (Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period*
|
(4
|
)
|
|
(16
|
)
|
|
|
|
|
(61
|
)
|
|
6
|
|
|
|
|
||||
Deduct: Acquisition and integration costs
|
(28
|
)
|
|
(145
|
)
|
|
|
|
|
(66
|
)
|
|
(168
|
)
|
|
|
|
||||
Total operating expenses, non-GAAP
|
$
|
4,106
|
|
|
$
|
4,101
|
|
|
0.1
|
|
|
$
|
12,241
|
|
|
$
|
12,213
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income, as reported
|
$
|
390
|
|
|
$
|
51
|
|
|
|
|
|
$
|
893
|
|
|
$
|
532
|
|
|
|
|
Add (Deduct): Reclassification between Fuel and oil and Other (gains) losses, net, associated with current period settled contracts
|
17
|
|
|
(4
|
)
|
|
|
|
|
10
|
|
|
8
|
|
|
|
|
||||
Add (Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period*
|
4
|
|
|
16
|
|
|
|
|
|
61
|
|
|
(6
|
)
|
|
|
|
||||
Add: Acquisition and integration costs
|
28
|
|
|
145
|
|
|
|
|
|
66
|
|
|
168
|
|
|
|
|
||||
Operating income, non-GAAP
|
$
|
439
|
|
|
$
|
208
|
|
|
111.1
|
|
|
$
|
1,030
|
|
|
$
|
702
|
|
|
46.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as reported
|
$
|
259
|
|
|
$
|
16
|
|
|
|
|
|
$
|
542
|
|
|
$
|
343
|
|
|
|
|
Deduct: Mark-to-market impact from fuel contracts settling in future periods
|
(76
|
)
|
|
(37
|
)
|
|
|
|
|
(112
|
)
|
|
(193
|
)
|
|
|
|
||||
Add: Ineffectiveness from fuel hedges settling in future periods
|
15
|
|
|
5
|
|
|
|
|
|
27
|
|
|
45
|
|
|
|
|
||||
Add (Deduct): Other net impact of fuel contracts settling in the current or a prior period (excluding reclassifications)
|
4
|
|
|
16
|
|
|
|
|
|
61
|
|
|
(6
|
)
|
|
|
|
||||
Add: Income tax impact of fuel contracts
|
22
|
|
|
10
|
|
|
|
|
|
10
|
|
|
60
|
|
|
|
|
||||
Add: Acquisition and integration costs, net (a)
|
17
|
|
|
87
|
|
|
|
|
|
41
|
|
|
103
|
|
|
|
|
||||
Net income, non-GAAP
|
$
|
241
|
|
|
$
|
97
|
|
|
148.5
|
|
|
$
|
569
|
|
|
$
|
352
|
|
|
61.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share, diluted, as reported
|
$
|
0.37
|
|
|
$
|
0.02
|
|
|
|
|
|
$
|
0.75
|
|
|
$
|
0.45
|
|
|
|
|
Deduct: Net impact to net income above from fuel contracts divided by dilutive shares
|
(0.05
|
)
|
|
(0.01
|
)
|
|
|
|
|
(0.02
|
)
|
|
(0.13
|
)
|
|
|
|
||||
Add: Impact of special items, net (a)
|
0.02
|
|
|
0.12
|
|
|
|
|
|
0.06
|
|
|
0.14
|
|
|
|
|
||||
Net income per share, diluted,
non-GAAP
|
$
|
0.34
|
|
|
$
|
0.13
|
|
|
161.5
|
|
|
$
|
0.79
|
|
|
$
|
0.46
|
|
|
71.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses per ASM (cents)
|
12.43
|
|
|
12.87
|
|
|
|
|
|
12.57
|
|
|
12.77
|
|
|
|
|
||||
Deduct: Fuel expense divided by ASMs
|
(4.34
|
)
|
|
(4.62
|
)
|
|
|
|
|
(4.46
|
)
|
|
(4.76
|
)
|
|
|
|
||||
Deduct: Impact of special items
|
(0.08
|
)
|
|
(0.44
|
)
|
|
|
|
|
(0.07
|
)
|
|
(0.17
|
)
|
|
|
|
||||
Operating expenses per ASM, non-GAAP, excluding fuel and special items (cents)
|
8.01
|
|
|
7.81
|
|
|
2.6
|
|
|
8.04
|
|
|
7.84
|
|
|
2.6
|
|
|
|
Three months ended
|
|
|
|
Nine months ended
|
|
|
||||||||||||
(in millions, except per share amounts)
|
|
September 30,
|
|
|
|
September 30,
|
|
|
||||||||||||
GAAP
|
|
2013
|
|
2012
|
|
Percent Change
|
|
2013
|
|
2012
|
|
Percent Change
|
||||||||
Operating income
|
|
$
|
390
|
|
|
$
|
51
|
|
|
n.a.
|
|
$
|
893
|
|
|
$
|
532
|
|
|
67.9
|
Net income
|
|
$
|
259
|
|
|
$
|
16
|
|
|
n.a.
|
|
$
|
542
|
|
|
$
|
343
|
|
|
58.0
|
Net income per share, diluted
|
|
$
|
0.37
|
|
|
$
|
0.02
|
|
|
n.a.
|
|
$
|
0.75
|
|
|
$
|
0.45
|
|
|
66.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income
|
|
$
|
439
|
|
|
$
|
208
|
|
|
111.1
|
|
$
|
1,030
|
|
|
$
|
702
|
|
|
46.7
|
Net income
|
|
$
|
241
|
|
|
$
|
97
|
|
|
148.5
|
|
$
|
569
|
|
|
$
|
352
|
|
|
61.6
|
Net income per share, diluted
|
|
$
|
0.34
|
|
|
$
|
0.13
|
|
|
161.5
|
|
$
|
0.79
|
|
|
$
|
0.46
|
|
|
71.7
|
1.
|
The complete integration of AirTran into Southwest's operations by the end of 2014;
|
2.
|
The continued growth of Southwest's Rapid Rewards
®
frequent flyer program;
|
3.
|
The continued addition of the Boeing 737-800, a larger aircraft, within the Company's fleet;
|
4.
|
The modernization of the Company's entire fleet to produce both better revenue and cost efficiencies; and
|
5.
|
The design and building of a new reservations system and international capabilities.
|
|
|
Average percent of estimated fuel consumption
|
||||
|
|
covered by fuel derivative contracts at
|
||||
Period
|
|
varying WTI/Brent crude-equivalent price levels
|
||||
2014
|
|
Approx. 20%
|
||||
2015
|
|
Approx. 30%
|
||||
2016
|
|
Approx. 35%
|
||||
2017
|
|
Approx. 50%
|
Year
|
|
Fair value
(liability) of fuel
derivative contracts
at September 30, 2013
|
|
Amount of gains
(losses) deferred
in AOCI at September 30,
2013 (net of tax)
|
||||
Remainder of 2013
|
|
$
|
11
|
|
|
$
|
(23
|
)
|
2014
|
|
43
|
|
|
9
|
|
||
2015
|
|
22
|
|
|
(58
|
)
|
||
2016
|
|
42
|
|
|
(13
|
)
|
||
2017
|
|
(31
|
)
|
|
(5
|
)
|
||
Total
|
|
$
|
87
|
|
|
$
|
(90
|
)
|
|
Estimated economic jet fuel price per gallon,
including taxes |
|
Average Brent Crude Oil
price per barrel
|
4Q 2013 (2)
|
Full Year 2013
|
$85
|
$2.40 - $2.45
|
$2.95 - $3.00
|
$95
|
$2.70 - $2.75
|
$3.00 - $3.05
|
Current Market (1)
|
$3.05 - $3.10
|
$3.10 - $3.15
|
$115
|
$3.25 - $3.30
|
$3.15 - $3.20
|
$125
|
$3.50 - $3.55
|
$3.25 - $3.30
|
Estimated Premium Costs (3)
|
$22 million
|
$71 million
|
|
Three months ended September 30,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
Mark-to-market impact from fuel contracts settling in future periods
|
$
|
(76
|
)
|
|
$
|
(37
|
)
|
Ineffectiveness from fuel hedges settling in future periods
|
15
|
|
|
5
|
|
||
Realized ineffectiveness and mark-to-market (gains) or losses
|
(17
|
)
|
|
4
|
|
||
Premium cost of fuel contracts
|
22
|
|
|
15
|
|
||
Other
|
(3
|
)
|
|
3
|
|
||
|
$
|
(59
|
)
|
|
$
|
(10
|
)
|
|
Nine months ended September 30,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
Mark-to-market impact from fuel contracts settling in future periods
|
$
|
(112
|
)
|
|
$
|
(193
|
)
|
Ineffectiveness from fuel hedges settling in future periods
|
27
|
|
|
45
|
|
||
Realized ineffectiveness and mark-to-market (gains) or losses
|
(10
|
)
|
|
(8
|
)
|
||
Premium cost of fuel contracts
|
39
|
|
|
33
|
|
||
Other
|
(2
|
)
|
|
4
|
|
||
|
$
|
(58
|
)
|
|
$
|
(119
|
)
|
|
The Boeing Company
737 NG
|
|
|
The Boeing Company
737 MAX
|
|
|
|||||||||||||||
|
-700 Firm Orders
|
|
-800 Firm Orders
|
Options
|
Additional -700 A/C
|
|
-7
Firm Orders |
-8
Firm Orders |
|
Options
|
|
Total
|
|
||||||||
2013
|
—
|
|
|
18
|
|
—
|
|
2
|
|
|
—
|
|
—
|
|
|
—
|
|
|
20
|
|
(3)
|
2014
|
—
|
|
|
36
|
|
—
|
|
7
|
|
|
—
|
|
—
|
|
|
—
|
|
|
43
|
|
|
2015
|
36
|
|
|
—
|
|
—
|
|
5
|
|
|
—
|
|
—
|
|
|
—
|
|
|
41
|
|
|
2016
|
31
|
|
|
—
|
|
12
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
43
|
|
|
2017
|
15
|
|
|
—
|
|
12
|
|
—
|
|
|
—
|
|
14
|
|
|
—
|
|
|
41
|
|
|
2018
|
10
|
|
|
—
|
|
12
|
|
—
|
|
|
—
|
|
13
|
|
|
—
|
|
|
35
|
|
|
2019
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
15
|
|
10
|
|
|
—
|
|
|
25
|
|
|
2020
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
14
|
|
22
|
|
|
—
|
|
|
36
|
|
|
2021
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
1
|
|
33
|
|
|
18
|
|
|
52
|
|
|
2022
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
30
|
|
|
19
|
|
|
49
|
|
|
2023
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
14
|
|
|
23
|
|
|
37
|
|
|
2024
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
14
|
|
|
23
|
|
|
37
|
|
|
2025
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
36
|
|
|
36
|
|
|
Through 2027
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
72
|
|
|
72
|
|
|
Total
|
92
|
|
(1)
|
54
|
|
36
|
|
14
|
|
|
30
|
|
150
|
|
(2)
|
191
|
|
|
567
|
|
|
|
|
|
|
Average
|
|
Number
|
|
Number
|
|
Number
|
||||
Type
|
|
Seats
|
|
Age (Yrs)
|
|
of Aircraft
|
|
Owned
|
|
Leased
|
||||
717-200
|
|
117
|
|
12
|
|
|
76
|
|
|
8
|
|
|
68
|
|
737-300
|
|
137 or 143
|
|
20
|
|
|
123
|
|
|
76
|
|
|
47
|
|
737-500
|
|
122
|
|
22
|
|
|
15
|
|
|
9
|
|
|
6
|
|
737-700
|
|
137 or 143
|
|
9
|
|
|
425
|
|
|
378
|
|
|
47
|
|
737-800
|
|
175
|
|
1
|
|
|
44
|
|
|
39
|
|
|
5
|
|
TOTALS
|
|
|
|
|
|
683
|
|
|
510
|
|
|
173
|
|
•
|
the Company's strategic initiatives and related financial and operational goals and expectations;
|
•
|
the integration of AirTran and the Company's related financial and operational goals and expectations, including, without limitation, anticipated integration timeframes and expected benefits and costs associated with the integration;
|
•
|
the Company's network plans, opportunities, and expectations;
|
•
|
the Company's fleet plans, including its fleet modernization and capacity plans and expectations;
|
•
|
the Company's financial outlook and projected results of operations;
|
•
|
the Company's plans and expectations with respect to managing risk associated with changing jet fuel prices;
|
•
|
the Company's expectations with respect to liquidity and capital expenditures, including anticipated needs for, and sources of, funds;
|
•
|
the Company's assessment of market risks; and
|
•
|
the Company's plans and expectations related to legal proceedings.
|
•
|
demand for the Company's services and the impact of economic conditions, fuel prices and availability, and actions of competitors (including, without limitation, pricing, scheduling, and capacity decisions and consolidation and alliance activities) on the Company's business decisions, plans, and strategies;
|
•
|
the Company's ability to effectively integrate AirTran and realize the expected synergies and other benefits from the 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 initiatives;
|
•
|
the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures;
|
•
|
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 Company's dependence on third parties with respect to certain of its initiatives, in particular its fleet plans;
|
•
|
actual or potential disruptions in the air traffic control system;
|
•
|
the impact of governmental action r
elated to the Company's operations; 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, 2012.
|
Issuer Purchases of Equity Securities (1)
|
||||||||||||||
|
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
||||||
|
|
|
|
|
|
Total number of
|
|
Maximum dollar
|
||||||
|
|
|
|
|
|
shares purchased
|
|
value of shares that
|
||||||
|
|
Total number
|
|
Average
|
|
as part of publicly
|
|
may yet be purchased
|
||||||
|
|
of shares
|
|
price paid
|
|
announced plans
|
|
under the plans
|
||||||
Period
|
|
purchased
|
|
per share
|
|
or programs
|
|
or programs
|
||||||
July 1, 2013 through
July 31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
524,515,838
|
|
August 1, 2013 through
August 31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
524,515,838
|
|
September 1, 2013 through
September 30, 2013
|
|
11,459,129
|
|
(2)
|
$
|
13.09
|
|
|
11,459,129
|
|
|
$
|
374,515,838
|
|
Total
|
|
11,459,129
|
|
|
|
|
11,459,129
|
|
|
|
(1)
|
In January 2008, the Company’s Board of Directors authorized the repurchase of up to $500 million of the Company’s common stock. Through February 15, 2008, the Company had repurchased 4.4 million shares for a total of approximately $54 million, at which time repurchases under the program were suspended. On August 5, 2011, the Company’s Board of Directors authorized the Company to resume a share repurchase program and approved the Company’s repurchase, on a discretionary basis, of a total of up to $500 million of the Company’s common stock following such authorization. On May 16, 2012, the Company’s Board of Directors increased the previous share repurchase authorization by an additional $500 million to a total of $1.0 billion. On May 15, 2013, the Company's Board of Directors further increased the previous share repurchase authorization by an additional $500 million to a total of $1.5 billion. Repurchases are made in accordance with applicable securities laws in open market, private, or accelerated repurchase transactions from time to time, depending on market conditions, and may be discontinued at any time.
|
(2)
|
During September 2013, under the Third Quarter ASR Program, the Company paid $150 million and received an initial delivery of 11,459,129 shares. The specific number of shares that the Company ultimately will repurchase under the Third 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 fourth quarter 2013. 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.
|
3.1
|
Restated Certificate of Formation of the Company, effective May 18, 2012 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (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. 84 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.2
|
Southwest Airlines Co. Amended and Restated 2007 Equity Incentive Plan. (2)
|
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. (3)
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(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)
|
Management contract or compensatory plan or arrangement.
|
(3)
|
Furnished, not filed.
|
|
SOUTHWEST AIRLINES CO.
|
|
|
|
|
October 30, 2013
|
By
|
/s/ Tammy Romo
|
|
|
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|
|
|
(On behalf of the Registrant and in
|
|
|
her capacity as Principal Financial
|
|
|
and Accounting Officer)
|
3.1
|
Restated Certificate of Formation of the Company, effective May 18, 2012 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (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. 84 to Purchase Agreement No. 1810, dated January 19, 1994, between The Boeing Company and the Company. (1)
|
10.2
|
Southwest Airlines Co. Amended and Restated 2007 Equity Incentive Plan. (2)
|
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. (3)
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(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)
|
Management contract or compensatory plan or arrangement.
|
(3)
|
Furnished, not filed.
|
Supplemental Agreement No. 84
|
|
to
|
|
Purchase Agreement No. 1810
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft
|
P.A. No. 1810
|
SA-84-
1
|
|
THE BOEING COMPANY
|
|
SOUTHWEST aIRLINES cO.
|
|
|
|
By:
/s/ Jeff Solomon
|
|
By:
/s/ Tammy Romo
|
|
|
|
Its:
Attorney‑In‑Fact
|
|
Its:
SVP & CFO
|
P.A. No. 1810
|
SA-84-
2
|
|
|
TABLE OF CONTENTS
|
|
|
|
Page
|
SA
|
ARTICLES
|
|
Number
|
Number
|
|
|
|
|
1.
|
Subject Matter of Sale
|
1-1
|
SA-82
|
|
|
|
|
2.
|
Delivery, Title and Risk
|
|
|
|
of Loss
|
2-1
|
SA-28
|
|
|
|
|
3.
|
Price of Aircraft
|
3‑1
|
SA-82
|
|
|
|
|
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
|
|
P.A. No. 1810
|
i
|
|
K/SWA
|
|
SA-84
|
|
TABLE OF CONTENTS
|
|
|
|
SA
|
TABLE
|
|
Number
|
|
|
|
1a
|
Aircraft Information Table - Block 700LUV Aircraft
|
SA-83
|
|
|
|
1b
|
Aircraft Information Table - Block 800LUV Aircraft
|
SA-82
|
|
|
|
1c
|
Aircraft Information Table - Block 800LUV Aircraft
|
SA-84
|
|
(non-ETOPS Configuration)
|
|
1810-1R1
|
Waiver of Aircraft Demonstration Flight
|
SA-75
|
P.A. No. 1810
|
ii
|
|
K/SWA
|
|
SA-84
|
|
TABLE OF CONTENTS
|
|
P.A. No. 1810
|
iii
|
|
K/SWA
|
|
SA-84
|
|
TABLE OF CONTENTS
|
|
Table
|
Title
|
Last Updated under SA
|
Current Status
|
1
|
Aircraft Information Table
|
SA-75
|
Inactive
|
2
|
Option Aircraft Information Table
|
SA-74
|
Deleted under SA-75
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
A
|
Aircraft Configuration - 737-700
|
SA-36
|
Inactive
|
A-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1-Winglet
|
Aircraft Configuration
|
SA-36
|
Inactive
|
A-1A
|
Aircraft Configuration - 737-700 Block T-W-2c
|
SA-36
|
Inactive
|
A-2
|
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
|
SA-47
|
Inactive
|
A-3
|
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
|
SA-61
|
Inactive
|
A-4
|
Aircraft Configuration - 737-
|
SA-66
|
Inactive
|
P.A. No. 1810
|
iv
|
|
K/SWA
|
|
SA-84
|
|
TABLE OF CONTENTS
|
|
Exhibits
|
Title
|
Last Updated under SA
|
Current Status
|
|
700 Block T-W-2b Aircraft
|
|
|
C.2
|
737-800 Customer Support Variables
|
SA-71
|
Deleted under SA-75
|
D
|
Price Adjustment Due to
Economic Fluctuations - Aircraft Price Adjustment
(July 1992 Base Price)
|
|
Inactive
|
D-1
|
Price Adjustment Due to Economic Fluctuations - Aircraft Price Adjustment
(July 1999 Base Price)
|
SA-13
|
Inactive
|
E.2
|
737-800 Buyer Furnished Equipment Provisions Document
|
SA-73
|
Deleted under SA-75
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6‑1162‑RLL‑933R21
|
Option Aircraft
|
SA-60
|
Deleted under SA-75
|
6‑1162‑RLL‑935R1
|
Performance Guarantees
|
SA-1
|
Inactive
|
6‑1162‑RLL‑936R4
|
Certain Contractual Matters
|
SA-4
|
Inactive
|
6‑1162‑RLL‑937
|
Alternate Advance Payment Schedule
|
|
Inactive
|
6‑1162‑RLL‑938
|
***
|
|
Inactive
|
6‑1162‑RLL‑939R1
|
Certification Flight Test Aircraft
|
SA-1
|
Inactive
|
6‑1162‑RLL‑940R1
|
Training Matters
|
SA-1
|
Inactive
|
6‑1162‑RLL‑942
|
Open Configuration Matters
|
|
Inactive
|
6‑1162‑RLL‑943R1
|
Substitution Rights
|
SA-6
|
Deleted under SA 75
|
6‑1162‑RLL‑944
|
***
|
|
Inactive
|
6-1162-RLL-945
|
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
|
|
Inactive
|
6-1162-RLL-1855R3
|
Additional Contractual Matters
|
SA-4
|
Inactive
|
6-1162-RLL-1856
|
***
|
SA-1
|
Inactive
|
6-1162-RLL-1857
|
Service Ready Validation Program Field Test
|
SA-1
|
Inactive
|
6-1162-RLL-1858R1
|
Escalation Matters
|
SA-4
|
Inactive
|
6-1162-RLL-2036
|
Amortization of Costs for Customer Unique Changes
|
SA-1
|
Inactive
|
P.A. No. 1810
|
v
|
|
K/SWA
|
|
SA-84
|
|
TABLE OF CONTENTS
|
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
6-1162-RLL-2037
|
Reconciliation of the Aircraft Basic Price
|
SA-1
|
Inactive
|
6-1162-RLL-2073
|
Maintenance Training Matters
|
SA-1
|
Inactive
|
6-1162-KJJ-058R1
|
Additional Substitution Rights
|
SA-71
|
Deleted under SA-75
|
6-1162-KJJ-150
|
Flight Control Computer & Mode Control Panel Spares Matter
|
SA-14
|
Inactive
|
6-1162-MSA-185R3
|
Delivery Change Contractual Matters
|
SA-21
|
Inactive
|
6-1162-JMG-747R1
|
***
|
SA-36
|
Inactive
|
6-1162-CHL-217
|
Rescheduled Flight Test Aircraft
|
SA-32
|
Inactive
|
6-1162-NIW-606R1
|
***
|
SA-36
|
Inactive
|
6-1162-NIW-640
|
Early Delivery of Two April 2004 Aircraft
|
SA-35
|
Inactive
|
6-1162-NIW-889
|
Warranty - Exterior Color Schemes and Markings for YA143 and on
|
SA-39
|
Inactive
|
6-1162-NIW-1142
|
***
|
SA-43
|
Inactive
|
6-1162-NIW-1369
|
***
|
SA-46
|
Inactive
|
6-1162-NIW-1983
|
***
|
SA-62
|
Inactive
|
SWA-PA-1810-LA-1000419
|
***
|
SA-64
|
Inactive
|
6-1162-NIW-890R1
|
***
|
SA-75
SA-39
|
Inactive
|
6-1162-KJJ-054R2
|
Business Matters
|
SA-75
|
Inactive
|
6-1162-JMG-669R9
|
***
|
SA-75
SA-75
SA-54
|
Inactive
|
SWA-PA-1810-LA-02710R1
|
***
|
SA-72
|
Inactive
|
P.A. No. 1810
|
vi
|
|
K/SWA
|
|
SA-84
|
Airframe Model/MTOW:
|
737-800
|
174200 pounds
|
|
Detail Specification:
|
D019A001SWA38P-1 Rev C (3/29/2013)
|
||
Engine Model/Thrust:
|
CFM56-7B27
|
27300 pounds
|
Note 1
|
Base Aircraft Price Base Year/Escalation Formula:
|
Jul-11
|
ECI-MFG/CPI
|
|
Base Aircraft Price:
|
|
***
|
|
Engine Price Base Year/Escalation Formula:
|
N/A
|
N/A
|
|
Special Features:
|
***
|
|
|
|
|
|
|
Add'l Features/Changes
|
***
|
|
|
|
|
|
|
Total Special Features (Exhibit A-7)
|
***
|
|
|
|
|
|
|
Sub-Total of Airframe and Features:
|
***
|
|
Aircraft Price Escalation Data:
|
|
|
|
|
Engine Price (Per Aircraft):
|
***
|
|
Base Year Index (ECI):
|
|
***
|
|
|
Aircraft Basic Price (Excluding BFE/SPE):
|
***
|
|
Base Year Index (CPI):
|
|
***
|
|
|
Buyer Furnished Equipment (BFE) Estimate:
|
***
|
|
|
|
|
|
|
Seller Purchased Equipment (SPE) Estimate:
|
***
|
|
|
|
|
|
Delivery
Date
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Aircraft
Serial
Number
|
Escalation
Forecast
|
Sub-Block
Note 2
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
|||||||
Sep-2013
|
3
|
***
|
36933,
36912, 36914
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Nov-2013
|
3
|
***
|
36915, 33939, 42526
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Dec-2013
|
3
|
***
|
36917, 36919, 36731
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Mar-2014
|
1
|
***
|
37,004
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Apr-2014
|
4
|
***
|
42384, 36894, 36895, 36896
|
***
|
|
***
|
***
|
***
|
***
|
***
|
May-2014
|
3
|
***
|
36897, 42385, 42521
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Jun-2014
|
4
|
***
|
36898, 36905, 42522
, 42523
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Jun-2014
|
2
|
***
|
tbd, tbd
|
***
|
OPEX
|
***
|
***
|
***
|
***
|
***
|
Jul-2014
|
1
|
***
|
36,911
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Jul-2014
|
3
|
***
|
tbd, tbd, tbd
|
***
|
OPEX
|
***
|
***
|
***
|
***
|
***
|
Aug-2014
|
4
|
***
|
36907, 42524,35973, 42525
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Sep-2014
|
4
|
***
|
36935, 42528, 42527, 42531
|
***
|
|
***
|
***
|
***
|
***
|
***
|
SWA-PA-01810
|
|
SA-84
|
63879 / 63887 / 64110 / 64111
|
Boeing Proprietary
|
Page 1
|
|
Table 1c
Purchase Agreement No. PA 01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non ETOPS Configuration)
|
|
Delivery
Date
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Aircraft
Serial
Number
|
Escalation
Forecast
|
Sub-Block
Note 2
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
***
|
24 Mos.
***
|
21/18/12/9/6 Mos.
***
|
Total
***
|
|||||||
Oct-2014
|
3
|
***
|
36909, 36732, 36920
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Oct-2014
|
1
|
***
|
38,806
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Nov-2014
|
2
|
***
|
36971, 37043
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Dec-2014
|
2
|
***
|
37037, 37045
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Dec-2014
|
2
|
***
|
42529, 42530
|
***
|
|
***
|
***
|
***
|
***
|
***
|
Total:
|
45
|
Notes:
|
1) ***
|
2) The sub-block identifier is used to denote applicability of certain business terms as referenced in Letter Agreement SWA-PA-1810-LA-1105888R2 to the Purchase Agreement.
|
SWA-PA-01810
|
|
SA-84
|
63879 / 63887 / 64110 / 64111
|
Boeing Proprietary
|
Page 2
|
737-8H4
|
|
AIRCRAFT CONFIGURATION
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
|
Exhibit A-7 to Purchase Agreement Number 1810
|
|
Block 800LUV Aircraft
|
(non-ETOPS Configuration)
|
P.A. No. 1810
|
A-7-
1
|
SA-84
|
AIRCRAFT CONFIGURATION
|
|
Dated September 20, 2013
|
|
relating to
|
|
BOEING MODEL 737-8H4 AIRCRAFT
|
P.A. No. 1810
|
A-7-
2
|
SA-84
|
|
BOEING PROPRIETARY
|
|
CR
|
Title
|
2011 $
Price
Per A/C
|
0110-000029
|
MINOR MODEL 737-800 PASSENGER AIRPLANE
|
***
|
0110-000030
|
MAJOR MODEL 737 AIRPLANE
|
***
|
0170A244C58
|
SERVICING FEATURES - BASIC
|
***
|
0170A425A76
|
AVIONICS - DUAL FMC WITH MULTI-CONTROL DISPLAY UNIT
|
***
|
0170A541A17
|
AIRFRAME - 737-800
|
***
|
0170B401A26
|
COMMUNICATIONS - BASIC COMMUNICATIONS CONFIGURATION WITH HF DATALINK PROVISIONS AND INTEGRATED SELCAL CALL
|
***
|
0170B401A73
|
CLIMATE - NORMAL WEATHER OPERATIONS
|
***
|
0170B513A51
|
PC - PUSH TO TALK (PTT) SWITCH ON GLARESHIELD - REMOVE
|
***
|
0170B750B43
|
737 BOEING SKY INTERIOR
|
***
|
0170C430J04
|
PC - COMMUNICATIONS - DUAL COMMUNICATIONS CONTROL PANEL WIRING IN LIEU OF TRIPLE COMMUNICATIONS CONTROL PANEL WIRING
|
***
|
0170C801A81
|
GALLEY AFT COMPLEX - G4B GALLEY - DOMED AFT BULKHEAD
|
***
|
0170C801C76
|
LAVATORY AFT COMPLEX - TWO LAVATORIES WITH TWO DOUBLE ATTENDANT SEATS -
737 BOEING SKY INTERIOR
|
***
|
0170D360B56
|
PC - LAVATORY AFT COMPLEX - TWO LAVATORIES WITH TWO DOUBLE ATTENDANT SEATS, NO CURTAIN - BOEING SKY INTERIOR
|
***
|
0221A599A81
|
WET GROOVED RUNWAY OPERATIONS WITH ANTISKID SYSTEM INOPERATIVE
|
***
|
0221A609B52
|
DISPATCH WITH GEAR EXTENDED FOR REVENUE FLIGHT
|
***
|
0221C588A08
|
LANDING PERFORMANCE IMPROVEMENT- SKID RESISTANT RUNWAYS (FOR FAA CERTIFIED CUSTOMERS)
|
***
|
0222C472A09
|
SHORT FIELD PERFORMANCE ENHANCEMENT
|
***
|
0224-000036
|
EXTENDED RANGE TWIN ENGINE OPERATIONS (ETOPS)
|
***
|
0228-000001
|
FLIGHT MANUALS IN FAA FORMAT
|
***
|
0228-000032
|
FLIGHT CREW OPERATIONS MANUAL IN FAA FORMAT
|
***
|
0252B299A34
|
INSTRUMENTATION, AIRPLANE AND FUEL MEASURING STICK MANUALS IN ENGLISH UNITS - TEMPERATURE IN DEGREES FAHRENHEIT
|
***
|
0254-000003
|
USPHS CERTIFICATE OF SANITARY CONSTRUCTION
|
***
|
0315D292A01
|
CERTIFIED OPERATIONAL AND STRUCTURAL DESIGN WEIGHTS 737-800
|
***
|
0351D322A15
|
TAKEOFF PERFORMANCE IMPROVEMENT - ALTERNATE FORWARD CENTER OF GRAVITY LIMITS
|
***
|
0370C910B63
|
AIR CONDITIONING TRANSITION DUCT UNDER FLOOR - INSTALLATION - 17 MIL DAMPING TAPE FOR NOISE REDUCTION
|
***
|
1110D360A84
|
EXTERIOR NON-REGULATORY MARKINGS
|
***
|
1110D360A85
|
EXTERIOR REGULATORY MARKINGS AND COLOR SCHEME
|
***
|
1130D360A86
|
CARGO COMPARTMENT PLACARDS
|
***
|
1130D360A88
|
LIGHTED SIGNS
|
***
|
1130D360B61
|
INTERIOR PLACARDS AND MARKERS - 737 BOEING SKY INTERIOR
|
***
|
2130-000010
|
600 FPM CABIN PRESSURE ASCENT RATE
|
***
|
2130-000015
|
750 FPM CABIN PRESSURE DESCENT RATE
|
***
|
2170-000021
|
OZONE CONTROL - SPACE PROVISIONS FOR CATALYTIC CONVERTERS
|
***
|
2210-000121
|
AUTOFLIGHT - ACTIVATION OF CONTROL WHEEL STEERING REVERSION IN APPROACH MODE
|
***
|
2210-000123
|
AUTOFLIGHT - FLIGHT DIRECTOR TAKEOFF MODE WINGS LEVEL
|
***
|
2210-000142
|
AUTOFLIGHT - ALTITUDE ALERT - 300/900 FEET
|
***
|
2210-000151
|
AUTOFLIGHT - ENABLE GLIDE SLOPE CAPTURE PRIOR TO LOCALIZER CAPTURE
|
***
|
2210C175A38
|
AUTOFLIGHT - GO-AROUND ROLL MODE - LNAV
|
***
|
2230-000137
|
AUTOTHROTTLE - FMCS - TAKEOFF PROFILE THRUST REDUCTION ALTITUDE
|
***
|
2310B691B85
|
COMMUNICATIONS CONTROL PANELS - DUAL GABLES RADIO TUNING PANELS CAPABLE OF (2) HF SYSTEMS AND (3) VHF SYSTEMS (8.33 KHZ CAPABLE) - P/N G7404-124 - BFE/SPE
|
***
|
2311B401A28
|
HF COMMUNICATIONS - EQUIPMENT INSTALLATION OF DUAL HONEYWELL INTERNATIONAL INC. HF TRANSCEIVERS - P/N 964-0452-012 - AND DIGITAL HF COUPLERS
- P/N 964-0453-011 - BFE/SPE
|
***
|
2311B401A29
|
DUAL HF DATA RADIO - ARINC 753 - ACTIVATION - AIRLINE DATA LINK COMMUNICATIONS ONLY
|
***
|
2312A213B90
|
VHF COMMUNICATIONS - EQUIPMENT INSTALLATION OF TRIPLE HONEYWELL ARINC
750 RTA-44D VHF FM IMMUNE TRANSCEIVERS WITH 8.33 KHZ CHANNEL SPACING, VDL MODE 2, AND CMC INTERFACE CAPABILITY - P/N 064-50000-2000 - BFE/SPE
|
***
|
2321-000050
|
SELCAL - AVTECH FIVE CHANNEL DECODER - P/N 1200008-000 - BFE/SPE
|
***
|
2322C430J57
|
MP - COMMUNICATIONS MANAGEMENT UNIT (CMU) - ACTIVATION - DATA LINK RECORDING
|
***
|
2322C703A02
|
CMU - HONEYWELL ARINC 758 LEVEL AOA MARK III COMMUNICATIONS MANAGEMENT UNIT (CMU) - INSTALLATION INTO EXISTING PARTIAL PROVISIONS - P/N 7519200-921 - BFE/SPE
|
***
|
2322C939A05
|
CMU - INSTALLATION OF PARTIAL PROVISIONS FOR A SINGLE CMU IN ACCORDANCE WITH ARINC 758
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 1
|
|
BOEING PROPRIETARY
|
|
2510C910B65
|
TRIP COUNTER - INSTALLATION - SFE - DEXTER WILSON
|
***
|
2511-000271
|
SECOND OBSERVER STATION, WITHOUT ARMRESTS - ADDITION
|
***
|
2511B696M36
|
FLIGHT COMPARTMENT SEATS - INSTALL CAPTAIN AND FIRST OFFICER SEATS WITH FLOTATION CUSHIONS
|
***
|
2513-000420
|
NO ROLLER SUNSHADES - FLIGHT DECK
|
***
|
2513B696E89
|
LOG BOOK HOLDER - INSTALLATION - ON AFT FACE OF P8 AISLESTAND
|
***
|
2513B696E95
|
FLIGHT COMPARTMENT ACCOMMODATIONS - INSTALL A FUEL CONVERSION PLACARD ON THE FACE OF CAPTAIN AND FIRST OFFICER'S CLIPBOARDS
|
***
|
2513C410C22
|
FLIGHT COMPARTMENT ACCOMMODATIONS - EMERGENCY EVACUATION CHECKLIST PLACARD ON THE CAPTAIN AND FIRST OFFICER'S CONTROL COLUMNS
|
***
|
2520D360A90
|
INTERIOR COLOR AND MATERIAL - STANDARD OFFERING
|
***
|
2523D360F87
|
PASSENGER SERVICE UNITS - 737 BOEING SKY INTERIOR
|
***
|
2524D360A79
|
CLOSET - AFT OF DOOR 1, LEFT - BFE/SPE
|
***
|
2524D360B01
|
FULL HEIGHT WINDSCREEN/STOWAGE UNIT - RHS - STA 336.75 - BFE/SPE
|
***
|
2525A627A07
|
DOUBLE ATTENDANT SEAT - WALL MOUNTED - STA 304
|
***
|
2525C204K04
|
HIC AND FEMUR LOAD COMPLIANCE - ECONOMY CLASS SEATS
|
***
|
2525C204K05
|
HIC AND FEMUR LOAD COMPLIANCE - ATTENDANT SEATS
|
***
|
2525D360F41
|
ECONOMY CLASS SEATS - BFE/SPE
|
***
|
2527D360C81
|
FLOOR COVERING - GALLEY MAT AND CARPET - BFE
|
***
|
2528C204J16
|
FORWARD CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
***
|
2528C204J18
|
SECOND FORWARD CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
***
|
2528C204J20
|
FIRST MID CABIN CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
***
|
2528C204J22
|
SECOND MID-CABIN CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
***
|
2528D360A93
|
LITERATURE POCKETS - BFE/SPE
|
***
|
2528D360B64
|
OVERHEAD STOWAGE BINS - ADDITIONAL FEATURES - 737 BOEING SKY INTERIOR
|
***
|
2529A802A86
|
DOOR WARNING STRAP - SHOCK CORD
|
***
|
2529D360B52
|
FORWARD ATTENDANT WORKSTATION - PANEL & HANDSET - UNIQUE FACEPLATE DISPLAY
|
***
|
2530C882K34
|
GALLEY G1 - AFT STATION 293
|
***
|
2530D360B03
|
GALLEY PART NUMBERS - BFE/SPE
|
***
|
2530D360B04
|
GALLEY INSERT PART NUMBERS - BFE/SPE
|
***
|
2540B873A66
|
LA LAVATORY
|
***
|
2540D360A81
|
LA LAVATORY SELECTABLES
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 2
|
|
BOEING PROPRIETARY
|
|
CR
|
Title
|
2011 $
Price
Per A/C
|
2540D360A82
|
LE LAVATORY SELECTABLES
|
***
|
2540D360C84
|
LD LAVATORY SELECTABLES
|
***
|
2552-000117
|
CARGO COMPARTMENT NETS WITH NYLON TYPE WEB SUPPORTS
|
***
|
2552-000216
|
LOWER SIDEWALL LINER - FOWARD AND AFT CARGO COMPARTMENT - .060 THICKNESS
|
***
|
2552B491A05
|
FLOOR PANELS - FORWARD CARGO COMPARTMENT - 0.090 INCH THICKNESS, BMS 8-2, CONOLITE
|
***
|
2552B491A06
|
FLOOR PANELS - AFT CARGO COMPARTMENT - 0.090 INCH THICKNESS BMS 8-2, CONOLITE
|
***
|
2552B491A07
|
CEILING LINER - FORWARD CARGO COMPARTMENT - 0.031 INCH THICKNESS, BMS 8-2, CONOLITE
|
***
|
2552B491A10
|
CEILING LINER - AFT CARGO COMPARTMENT - 0.031 INCH THICKNESS, BMS 8-2, CONOLITE
|
***
|
2552B491A11
|
STA 731 BULKHEAD - .060 INCH THICKNESS, BMS 8-2, CONOLITE
|
***
|
2552B491A13
|
UPPER SIDEWALL LINER - AFT CARGO COMPARTMENT - 0.045 INCH THICKNESS, BMS 8-2, CONOLITE
|
***
|
2560-000176
|
HALON FIRE EXTINGUISHER - FLIGHT DECK - WALTER KIDDE
|
***
|
2560-000269
|
CREW LIFE VEST STOWAGE - FLIGHT DECK, SECOND OBSERVER - CAPTAIN'S SEAT BACK
|
***
|
2560C410D09
|
CREW LIFE VESTS - FLIGHT DECK, WITH SECOND OBSERVER - EASTERN AERO MARINE INC - P/N P01202-301C - BFE/SPE
|
***
|
2562D360B66
|
OVERWATER EMERGENCY EQUIPMENT - BFE/SPE - 737 BOEING SKY INTERIOR
|
***
|
2564D360G72
|
DETACHABLE EMERGENCY EQUIPMENT - PASSENGER COMPARTMENT - BFE/SPE - 737
BOEING SKY INTERIOR
|
***
|
2622-000047
|
APU FIRE EXTINGUISHER BOTTLE - COMMON WITH ENGINES
|
***
|
2841-000004
|
STANDARD FUEL SYSTEM ACCURACY - NO FUEL DENSITOMETERS
|
***
|
2911-000042
|
ENGINE-DRIVEN HYDRAULIC PUMPS WITH VESPEL SPLINE - EATON (VICKERS) - 10-62167
|
***
|
2911-000044
|
AC MOTOR-DRIVEN HYDRAULIC PUMPS - EATON (VICKERS) - 10-60556
|
***
|
3041-000003
|
NO HEATED FLIGHT COMPARTMENT NUMBER 3 WINDOW
|
***
|
3042B696M33
|
WINDSHIELD WIPER SYSTEM - REVISION - SINGLE SWITCH FOR BOTH WIPERS
|
***
|
3120C910B67
|
CLOCK WIRING - INSTALLATION - FMC, DFDAU AND VOICE RECORDER INPUT FROM FIRST OFFICER'S CLOCK
|
***
|
3131-000143
|
ACCELEROMETER - HONEYWELL P/N 971-4193-001 - BFE/SPE
|
***
|
3131B628B16
|
DIGITAL FLIGHT DATA RECORDER (DFDR) - HONEYWELL - 1024 WORDS PER SECOND MAXIMUM DATA RATE - P/N 980-4750-009 - BFE/SPE
|
***
|
3131D217A10
|
DIGITAL FLIGHT DATA ACQUISITION UNIT (DFDAU) - CAT IIIB/IAN/GLS/NPS CAPABLE - WITH ACMS CAPABILITY AND INTEGRATED PCMCIA MEDIA INTERFACE - TELEDYNE CONTROLS - 512 WPS CAPABLE - 737-7 DATA FRAME ACTIVE - P/N 2233000-916 - BFE/SPE
|
***
|
3132-000014
|
PORTABLE DATA LOADER/RECORDER CONNECTOR IN FLIGHT DECK-ARINC 615-SFE
|
***
|
3133A150E33
|
MP-INSTL OF ARINC 740 PRINTER PROVISIONS IN THE FLIGHT DECK AISLESTAND
|
***
|
3161-000133
|
ENGINE FUEL FLOW - FULL TIME DISPLAY - PRIMARY ENGINE DISPLAY UNIT
|
***
|
3161A627A40
|
CDS - SOFTWARE ACTIVATION - SELECTABLE COMPACTED ENGINE FORMAT - ENABLE
|
***
|
3161C175A22
|
ENGINE OIL QUANTITY DISPLAY - PERCENT - ENGINE DISPLAY
|
***
|
3162-000018
|
ATTITUDE COMPARATOR - FLASHING - ADI
|
***
|
3162-000023
|
FLIGHT DIRECTOR COMMAND DISPLAY - FILLED INTEGRATED CUE - ADI
|
***
|
3162-000028
|
RADIO ALTITUDE - BELOW ADI
|
***
|
3162-000030
|
RISING RUNWAY - DISPLAYED ON THE ADI
|
***
|
3162-000036
|
LANDING ALTITUDE REFERENCE BAR - PRIMARY FLIGHT DISPLAY
|
***
|
3162-000040
|
BARO MINIMUMS POINTER - DISPLAYED ON SELECTION OF RADIO ALTITUDE MINIMUMS
- PRIMARY FLIGHT DISPLAY
|
***
|
3162-000044
|
TCAS RESOLUTION ADVISORY - VSI
|
***
|
3162-000051
|
ILS LOCALIZER DEVIATION EXPANDED SCALE - AUTOPILOT OR FLIGHT DIRECTOR MODE
|
***
|
3162-000059
|
MAP MODE ORIENTATION - TRACK UP - NAVIGATION DISPLAY
|
***
|
3162-000079
|
MANUALLY TUNED VOR SELECTED COURSE LINES DISPLAYED - NAVIGATION DISPLAY
|
***
|
3162-000088
|
AIRSPEED BUG - ENABLED - 80 KNOT SETTING - MACH AIRSPEED INDICATOR
|
***
|
3162-000218
|
GROUND SPEED - DISPLAYED BELOW AIRSPEED TAPE WHEN MACH NUMBER IS NOT DISPLAYED - PRIMARY FLIGHT DISPLAY
|
***
|
3162A066A17
|
COMMON DISPLAY SYSTEMS FAULT MESSAGE - REVERSE VIDEO DISPLAY
|
***
|
3162A213A02
|
CDS DISPLAY - PFD/ND FORMAT - OVER AND UNDER ENGINE PRESENTATION
|
***
|
3162A627A36
|
CDS - SOFTWARE ACTIVATION - VNAV SPEED BANDS - ENABLE
|
***
|
3162C594A29
|
CDS - SOFTWARE ACTIVATION - NAVIGATION PERFORMANCE SCALES - ENABLE
|
***
|
3244-000008
|
SERVICE INTERPHONE CONNECTOR - EXTERNAL POWER PANEL
|
***
|
3245-000098
|
WHEELS AND TIRES - NOSE LANDING GEAR - WHEELS - BFGOODRICH - INSTALLATION WITH SFE 12 PR, 225 MPH RADIAL TIRES
|
***
|
3245B290A92
|
BRAKES - CARBON - GOODRICH
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 3
|
|
BOEING PROPRIETARY
|
|
CR
|
Title
|
2011 $
Price
Per A/C
|
3245B290A94
|
WHEELS AND TIRES - MAIN LANDING GEAR - WHEELS FOR CARBON BRAKES - GOODRICH - INSTALLATION WITH SFE 28 PR, 225 MPH TIRES
|
***
|
3321C869A65
|
PASSENGER CABIN LIGHTING - SINGLE-ZONE CONTROL - 737 BOEING SKY INTERIOR
|
***
|
3324C195A04
|
NO SMOKING SIGN - SILK SCREENED SYMBOL AND RETAIN CHIME FUNCTION
|
***
|
3342-000033
|
NOSE GEAR TAXI LIGHT - NO AUTOMATIC SWITCHOFF AT RETRACTION
|
***
|
3342-000035
|
NOSE GEAR TAXI LIGHT - 250-WATT
|
***
|
3344C910B68
|
ANTI-COLLISION LIGHT - INSTALLATION - SWITCH NOMENCLATURE
|
***
|
3350C869A05
|
EMERGENCY ESCAPE PATH LIGHTING - FLOOR MOUNTED - COLOR PHOTOLUMINESCENT
|
***
|
3350D360K03
|
RO - EMERGENCY LIGHTING - REPLACEMENT - EMERGENCY ESCAPE PATH LIGHTING - NARROW COLORED PHOTOLUMINESCENT IN LIEU OF STANDARD WIDTH
|
***
|
3412-000022
|
DUAL ELEMENT NON-ASPIRATED TAT PROBE
|
***
|
3414-000035
|
STANDBY ALTIMETER/AIRSPEED INDICATOR - FLIGHT DECK
|
***
|
3423-000023
|
STANDBY ATTITUDE INDICATOR - SEXTANT AVIONIQUE - SFE
|
***
|
3430B866A28
|
ILS/GPS MULTI-MODE RECEIVER (MMR) - HONEYWELL INTERNATIONAL INC. - P/N 066-
50029-1201 - BFE/SPE
|
***
|
3431A065B03
|
VHF NAV/DME CONTROL PANEL - GABLES ENGINEERING - P/N G7500-03 - BFE/SPE
|
***
|
3433A732A13
|
RADIO ALTIMETER (RA) - CAT IIIB CAPABLE - HONEYWELL INTERNATIONAL INC - P/N
066-50007-0111 - BFE/SPE
|
***
|
3436A218A66
|
HEAD-UP DISPLAY (HUD) - PARTIAL PROVISIONS FOR A COMMON HUD SYSTEM WITH CONTROL PANEL INTERFACE
|
***
|
3436C594A68
|
HEAD UP DISPLAY (HUD) - INSTALLATION OF ROCKWELL COLLINS PHASE 3 HGS4000
SYSTEM WITH CONTROL PANEL - STC CERTIFIED - BFE/SPE
|
***
|
3443B696L72
|
SINGLE WEATHER RADAR SYSTEM - HONEYWELL INTERNATIONAL INC. - MODEL RDR-
4000 WEATHER RADAR - INSTALLATION - BFE/SPE
|
***
|
3443B696L73
|
SINGLE WEATHER RADAR SYSTEM CONTROL PANEL - HONEYWELL RDR-4000 RADAR SYSTEM - P/N 930-5101-001 - BFE/SPE
|
***
|
3445B866A10
|
TCAS SYSTEM - HONEYWELL INTERNATIONAL INC TCAS COMPUTER P/N 940-0300-001 - TCAS CHANGE 7 COMPLIANT - BFE/SPE
|
***
|
3446-000046
|
LOW VOLUME FOR ALTITUDE CALLOUTS
|
***
|
3446-000048
|
ENHANCED GROUND PROXIMITY WARNING SYSTEM (EGPWS) - BANK ANGLE CALLOUT ENABLE
|
***
|
3446-000050
|
500 SMART CALLOUT
|
***
|
3446-000057
|
GROUND PROXIMITY WARNING SYSTEM ALTITUDE CALLOUTS - 100, 50, 30, 10
|
***
|
3451-000023
|
VOR/MARKER BEACON - ALLIEDSIGNAL RECEIVER P/N 066-50012-0101 - BFE/SPE
|
***
|
3453B866A17
|
ATC SYSTEM - HONEYWELL INTERNATIONAL INC ATC TRANSPONDER P/N 066-01127-
1602 - ELS/EHS/ES AND TCAS CHANGE 7 COMPLIANT - HONEYWELL INTERNATIONAL INC CONTROL PANEL P/N 071-01503-2601 - BFE/SPE
|
***
|
3455-000020
|
DISTANCE MEASURING EQUIPMENT (DME) - ALLIEDSIGNAL INTERROGATOR P/N 066-
50013-0101 - BFE/SPE
|
***
|
3457B696A24
|
AUTOMATIC DIRECTION FINDING (ADF) SYSTEM - PARTIAL PROVISIONS
|
***
|
3461A150B73
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - ENGINE-OUT STANDARD INSTRUMENT DEPARTURES (SID'S) - ENABLE
|
***
|
3461A425A10
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - NAVIGATION DATABASE - CUSTOMER SUPPLIED
|
***
|
3461A425A17
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - AIRLINE OPERATIONAL COMMUNICATIONS DATA LINK (AOC DL) - FANS FEATURE ACTIVATION
|
***
|
3461A425A30
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS)- ABEAM WAYPOINTS- ENABLE
|
***
|
3461A425A48
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - ACTIVATE COLOR OPERATION
|
***
|
3461A890A76
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - NAVIGATION DISPLAY - MISSED APPROACH IN CYAN UNTIL ACTIVE - ENABLE
|
***
|
3461B696D59
|
MP - FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) -AIR TRAFFIC SERVICES DATA LKINK (ATS DL) -FANS FEATURE ACTIVATION
|
***
|
3461B696K97
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - VERTICAL RNP DEFAULT VALUE - REVISION
|
***
|
3461B696M48
|
FLIGHT MANAGEMENT COMPUTING SYSTEM (FMCS) - INTENT DATA TRANSMITTED VIA THE FMC INTENT DATA DEDICATED OUTPUT BUS - ENABLE
|
***
|
3461C175A14
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - FANS CAPABLE MCDU WITH ATC KEYBOARD - INSTALLATION-SFE
|
***
|
3461C175A32
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - COMMON VNAV - ENABLE
|
***
|
3461C175A34
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - SPEED PROPAGATION FROM THE CRUISE PAGE TO THE DESCENT PAGE - ENABLE
|
***
|
3461C430J05
|
FLIGHT MANAGEMENT COMPUTING SYSTEM (FMCS) - VOR INHIBIT
|
***
|
3461C594A26
|
FLIGHT MANAGEMENT COMPUTING SYSTEM (FMCS) - INTENT DATA TRANSMITTED TO ACARS - ENABLE
|
***
|
3511-000011
|
NO REMOTE CREW OXYGEN FILL STATION
|
***
|
3511B696M31
|
CREW OXYGEN MASKS AND SMOKE GOGGLES - CAPTAIN, FIRST OFFICER, FIRST OBSERVER AND SECOND OBSERVER - BFE/SPE
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 4
|
|
BOEING PROPRIETARY
|
|
CR
|
Title
|
2011 $
Price
Per A/C
|
3511D322B89
|
MP - CREW OXYGEN MASKS - WITH SECOND OBSERVER - REPLACEMENT - AVOX FULL FACE MASKS WITH BUILT-IN GOGGLES IN LIEU OF THE EXISTING AVOX MASKS WITH SEPARATE SMOKE GOGGLES - BFE
|
***
|
3811-000017
|
POTABLE WATER - SERVICEABLE TO 40 GALLONS
|
***
|
3830C882K61
|
WASTE DISPOSAL - 4"" SERVICE PANEL LAVATORY DRAIN VALVE
|
***
|
3832-000032
|
VACUUM WASTE SYSTEM - MONOGRAM TOILET ASSEMBLIES
|
***
|
3910D322A11
|
AFT ELECTRONICS PANEL ARRANGEMENT
|
***
|
5231A561C54
|
CARGO DOOR - SOLID SKIN
|
***
|
5300-000027
|
UNDERSEAT FLOOR PANELS, LOW TRAFFIC CAPABILITY
|
***
|
5352A298A28
|
RADOME- NORDAM- SFE
|
***
|
5730B290A42
|
PARTIAL PROVISIONS FOR AVIATION PARTNERS BOEING (APB) WINGLET INSTALLATION
|
***
|
5730C581A10
|
WINGLET INSTALLATION - AVIATION PARTNERS BOEING (APB) - BFE/SPE (737-800)
|
***
|
7200-000125
|
CFM56-7 ENGINES - 7B26 RATING
|
***
|
7900-000116
|
LUBRICATING OIL - MOBIL JET II
|
***
|
MISC
|
INTERIOR ALLOWANCE
|
***
|
MISC DOOR
|
FAA FLIGHT DECK DOOR
|
***
|
MISC P & O
|
PEAKS & OBSTACLES
|
***
|
MISC/FAA4
|
FLAME PROPAGATION - INSULATION BLANKETS (FAA)
|
***
|
MISC/FAA5
|
FIRE PENETRATION - BURNTHROUGH, FAR 25.856(b)
|
***
|
OPTIONS: 200
|
TOTALS:
|
***
|
0224B372J97
|
RO - EXTENDED RANGE TWIN ENGINE OPERATIONS (ETOPS) - DELETION
|
***
|
0252D322D01
|
MP - INSTRUMENTATION, AIRPLANE AND FUEL MEASURING STICK MANUALS IN ENGLISH UNITS - TEMPERATURE IN DEGREES CELSIUS IN LIEU OF TEMPERATURE IN DEGREES FAHRENHEIT
|
***
|
1110D185K68
|
MP - EXTERIOR COLOR SCHEMES AND MARKINGS - ADDITION - ETOPS MAINTENANCE MARKING
|
***
|
1110D360N93
|
RO - EXTERIOR COLOR SCHEMES AND MARKINGS - DELETION - ETOPS MAINTENANCE MARKING
|
***
|
2300D322C81
|
RO - FPO - COMMUNICATIONS - DELETION OF DUAL HONEYWELL HF COMMUNICATIONS SYSTEM INCLUDING PROVISIONS AND DELETE E6 EQUIPMENT RACK - RETAIN INTEGRATED AUDIO SELECTOR PANEL WIRING - BFE
|
***
|
2312C028G60
|
MP - VHF COMMUNICATIONS SYSTEM - ACTIVATION OF KEYLINE TIMER
|
***
|
2500D360N91
|
RO - PASSENGER COMPARTMENT - DELETION - EMERGENCY EQUIPMENT AND CENTER OVERHEAD STOWAGE - BFE
|
***
|
2520D185M20
|
MP - PASSENGER COMPARTMENT - REPLACEMENT - GALLEY AND ENTRYWAY MAT MATERIAL - SCHNELLER - BFE
|
***
|
2525D360N76
|
MP - PASSENGER COMPARTMENT SEATS - REVISION - B/E AEROSPACE - BFE
|
***
|
2525D360T83
|
MP - PASSENGER COMPARTMENT SEATS - REVISION - TRAY TABLE LATCH - B E AEROSPACE - BFE
|
***
|
2527D360L35
|
MP - FLOOR COVERING - REPLACEMENT - CARPET TILES IN PASSENGER CABIN - WITH
18MM WIDE PHOTOLUM - INTERFACEFLOR IN LIEU OF MOHAWK - BFE
|
***
|
2527D360T79
|
MP - FLOOR COVERING - REVISION - CARPET AND GALLEY MAT - BFE
|
***
|
2527D360T90
|
MP - FLOOR COVERING - REVISION - CARPET TILES - INTERFACEFLOR - BFE
|
***
|
2529D384F68
|
MP - DOOR WARNING STRAP - REPLACEMENT - FORWARD LH DOOR
|
***
|
2530D360T82
|
MP - GALLEY - REPLACEMENT - WASTE CONTAINER - COMPOSITES UNLIMITED - BFE
|
***
|
2552D560A01
|
MP - FPO - LOWER LOBE (CONTAINERIZED) CARGO COMPARTMENT - REPLACEMENT - FWD AND AFT CARGO LINERS
|
***
|
2562D360N20
|
MP - OVERWATER EMERGENCY EQUIPMENT - ADDITION - LIFE RAFTS IN CENTER OVERHEAD STOWAGE - EASTERN AERO MARINE - BFE
|
***
|
2564D185K61
|
MP - DETACHABLE EMERGENCY EQUIPMENT - PASSENGER COMPARTMENT - ADDITION - OXYGEN BOTTLE AND MASK - SCOTT AVIATION - BFE
|
***
|
2564D360M44
|
MP - DETACHABLE EMERGENCY EQUIPMENT - REVISION - PASSENGER COMPARTMENT - BFE
|
***
|
2564D360M82
|
MP - DETACHABLE EMERGENCY EQUIPMENT - PASSENGER COMPARTMENT - ADDITION - PBE IN FWD LH MONUMENT - ESSEX - BFE
|
***
|
2564D360P90
|
MP - DETACHABLE EMERGENCY EQUIPMENT - DELETION - SMOKE HOODS - ESSEX CORPORATION - BFE
|
***
|
2564D360T14
|
MP - DETACHABLE EMERGENCY EQUIPMENT - FIRST AID KIT - PROCUREMENT REVISION
- BFE TO BFBI
|
***
|
2732D322C99
|
MP - STALL WARNING SYSTEM - STALL MANAGEMENT YAW DAMPER COMPUTERS (SMYD) - REPLACEMENT- SMYD COMPUTERS WITH AUTOSTOW FUNCTIONALITY, P/N
285A1010-109 IN LIEU OF THE EXISTING SMYD COMPUTERS, P/N 285A1010-9 - SFE
|
***
|
3133A051B38
|
MP - MULTI-INPUT PRINTER - ARINC 740 - MILTOPE P/N 497126-31 - BFE
|
***
|
3133B694B49
|
RO - ARINC 740 MULTI-INPUT PRINTER REMOVAL FROM PROVISIONS IN THE AFT AISLE STAND - HONEYWELL - P/N 8055515-4507 - BFE
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 5
|
|
BOEING PROPRIETARY
|
|
CR
|
Title
|
2011 $
Price
Per A/C
|
3133D322C34
|
MP - ARINC 740 MULTI-INPUT PRINTER - REPLACEMENT - HONEYWELL P/N 8055515-4507
IN LIEU OF MILTOPE P/N 497126-31 - BFE
|
***
|
3211D830A06
|
MP - MAIN GEAR - REVISION - STRENGTHENED MAIN LANDING GEAR AXLES
|
***
|
3430B694H08
|
MP - ILS/GPS MULTI-MODE RECEIVER (MMR) - INSTALLATION - SEXTANT IN LIEU OF HONEYWELL - BFE
|
***
|
3433D354B57
|
MP - RADIO ALTIMETER SYSTEM - REPLACEMENT - HONEYWELL LOW RANGE RADIO ALTIMETER P/N 066-50007-0531 IN LIEU OF EXISTING P/M 066-500007-0111 - BFE
|
***
|
3455D354B43
|
MP - DISTANCE MEASURING EQUIPMENT (DME) SCANNING INTERROGATOR - REPLACEMENT - HONEYWELL P/N 066-50013-0111 IN LIEU OF P/N 066-50013-0101 - BFE
|
***
|
3461D322C75
|
RO - FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - DEACTIVATION - AIR TRAFFIC SERVICES DATA LINK (ATS DL)
|
***
|
3910D322C28
|
MP - AFT ELECTRONICS PANEL ARRANGEMENT - REVISION - AFT ELECTRONICS PANEL ARRANGEMENT WITH ARINC 740 PRINTER INSTALLATION IN LIEU OF THE EXISTING AFT ELECTRONICS PANEL ARRANGEMENT
|
***
|
3910D322C77
|
RO - AFT ELECTRONICS PANEL - REVISION
|
***
|
7200A367A61
|
MP - CFM56-7 ENGINES - 7B27 RATING IN LIEU OF 7B26 RATING
|
***
|
7200D977A01
|
MP - CFM56-7 ENGINES - 7B27/F THRUST RATING IN LIEU OF THE EXISTING 7B27 THRUST RATING
|
***
|
OPTIONS: 35
|
TOTALS:
|
***
|
GRAND TOTALS:
|
***
|
P.A. 1810 SA-84
|
BOEING PROPRIETARY
|
Page 6
|
Attachment A to SWA-PA-1810-LA1001315R2
|
|
|
Page 1
of 2
|
|
|
No.
|
Model
|
Aircraft Block
|
MSN's
|
Current Delivery Mo.
|
Base Year
|
***
|
|||
1
|
737-700
|
T-W-2b
|
36,962
|
July-11
|
1999
|
***
|
|||
2
|
737-700
|
T-W-2b
|
36,963
|
July-11
|
1999
|
***
|
|||
3
|
737-700
|
T-W-2b
|
36,965
|
August-11
|
1999
|
***
|
|||
4
|
737-700
|
T-W-2b
|
36,967
|
October-11
|
1999
|
***
|
|||
5
|
737-800
|
800LUV
|
36,980
|
March-12
|
2011
|
***
|
|||
6
|
737-800
|
800LUV
|
36,983
|
April-12
|
2011
|
***
|
|||
7
|
737-800
|
800LUV
|
36,985
|
May-12
|
2011
|
***
|
|||
8
|
737-800
|
800LUV
|
36,987
|
May-12
|
2011
|
***
|
|||
9
|
737-800
|
800LUV
|
36,990
|
July-12
|
2011
|
***
|
|||
10
|
737-800
|
800LUV
|
36,992
|
August-12
|
2011
|
***
|
|||
11
|
737-800
|
800LUV
|
36,994
|
September-12
|
2011
|
***
|
|||
12
|
737-800
|
800LUV
|
37,003
|
November-12
|
2011
|
***
|
|||
13
|
737-800
|
800LUV
|
37,009
|
December-12
|
2011
|
***
|
|||
14
|
737-800
|
800LUV
|
36,973
|
March-13
|
2011
|
***
|
|||
15
|
737-800
|
800LUV
|
36,998
|
March-13
|
2011
|
***
|
|||
16
|
737-800
|
800LUV
|
36,908
|
April-13
|
2011
|
***
|
|||
17
|
737-800
|
800LUV
|
36,933
|
September-13
|
2011
|
***
|
|||
18
|
737-800
|
800LUV
|
42,526
|
November-13
|
2011
|
|
|||
19
|
737-800
|
800LUV
|
37,004
|
March-14
|
2011
|
|
|||
20
|
737-800
|
800LUV
|
42,521
|
May-14
|
2011
|
|
|||
21
|
737-800
|
800LUV
|
42,522
|
June-14
|
2011
|
|
|||
22
|
737-800
|
800LUV
|
tbd
|
June-14
|
2011
|
|
|||
23
|
737-800
|
800LUV
|
tbd
|
June-14
|
2011
|
|
|||
24
|
737-800
|
800LUV
|
42,523
|
June-14
|
2011
|
|
|||
25
|
737-800
|
800LUV
|
tbd
|
July-14
|
2011
|
|
|||
26
|
737-800
|
800LUV
|
tbd
|
July-14
|
2011
|
|
|||
27
|
737-800
|
800LUV
|
tbd
|
July-14
|
2011
|
|
|||
28
|
737-800
|
800LUV
|
42,524
|
August-14
|
2011
|
|
|||
29
|
737-800
|
800LUV
|
42,525
|
August-14
|
2011
|
|
|||
30
|
737-800
|
800LUV
|
36,935
|
September-14
|
2011
|
|
|||
31
|
737-800
|
800LUV
|
42,527
|
September-14
|
2011
|
|
|||
32
|
737-800
|
800LUV
|
42,528
|
September-14
|
2011
|
|
|||
33
|
737-800
|
800LUV
|
42,531
|
September-14
|
2011
|
|
|||
34
|
737-800
|
800LUV
|
36,909
|
October-14
|
2011
|
|
|||
35
|
737-800
|
800LUV
|
37,043
|
November-14
|
2011
|
|
|||
36
|
737-800
|
800LUV
|
42,529
|
December-14
|
2011
|
|
|||
37
|
737-800
|
800LUV
|
42,530
|
December-14
|
2011
|
|
|||
38
|
737-800
|
800LUV
|
37,045
|
December-14
|
2011
|
|
|||
39
|
737-800
|
800LUV
|
37,037
|
December-14
|
2011
|
|
|||
40
|
737-700
|
700LUV
|
42,535
|
January-15
|
2011
|
|
|||
41
|
737-700
|
700LUV
|
42,536
|
February-15
|
2011
|
|
|||
42
|
737-700
|
700LUV
|
42,537
|
March-15
|
2011
|
|
|||
43
|
737-700
|
700LUV
|
42,538
|
April-15
|
2011
|
|
|||
44
|
737-700
|
700LUV
|
42,539
|
May-15
|
2011
|
|
|||
45
|
737-700
|
700LUV
|
42,540
|
June-15
|
2011
|
|
|||
46
|
737-700
|
700LUV
|
42,541
|
July-15
|
2011
|
|
|||
47
|
737-700
|
700LUV
|
42,542
|
August-15
|
2011
|
|
|||
48
|
737-700
|
700LUV
|
42,543
|
September-15
|
2011
|
|
|
|
SA-84
|
Attachment A to SWA-PA-1810-LA1001315R2
|
|
|
Page 2
of 2
|
|
|
|
|
SA-84
|
|
|
The Boeing Company
|
|
|
P.O. Box 3707
|
|
|
Seattle, WA 98124-2207
|
|
|
|
Subject:
|
***
|
Reference:
|
a)
Purchase Agreement No. 1810 (
Purchase Agreement
) between The Boeing Company (
Boeing
) and Southwest Airlines Co. (
Buyer
) relating to Model 737-7H4 and 737-8H4 aircraft
|
SWA-PA-1810-LA-1105885
R2
|
|
Page 1
|
***
|
|
SA-84
|
|
BOEING PROPRIETARY
|
|
SWA-PA-1810-LA-1105885
R2
|
|
Page 2
|
***
|
|
SA-84
|
|
BOEING PROPRIETARY
|
|
SWA-PA-1810-LA-1105885
R2
|
|
Page 3
|
***
|
|
SA-84
|
|
BOEING PROPRIETARY
|
|
THE BOEING COMPANY
|
||
|
||
By
|
/s/ Jeff Solomon
|
|
|
||
Its
|
Attorney-In-Fact
|
|
|
||
ACCEPTED AND AGREED TO this
|
||
|
||
Date:
|
September 20, 2013
|
|
|
||
SOUTHWEST AIRLINES CO.
|
||
|
||
By
|
/s/ Tammy Romo
|
|
|
||
Its
|
SVP & CFO
|
SWA-PA-1810-LA-1105885
R2
|
|
Page 4
|
***
|
|
SA-84
|
|
BOEING PROPRIETARY
|
|
|
By:
|
/s/ Gary C. Kelly
|
|
|
Gary C. Kelly
|
|
|
Chief Executive Officer
|
|
By:
|
/s/ Tammy Romo
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
By:
|
/s/ Gary C. Kelly
|
|
|
Gary C. Kelly
|
|
|
Chief Executive Officer
|
|
By:
|
/s/ Tammy Romo
|
|
|
Tammy Romo
|
|
|
Chief Financial Officer
|