Sheet: Balance Sheet Sheet: Income Statement Sheet: Cash Flow Statement Sheet: 1st Table Sheet: 2nd Table Sheet: 3rd Table Southwest Airlines Co (NYS: LUV) Exchange rate used is that of the Year End reported date As Reported Annual Balance Sheet Report Date 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 Currency USD USD USD USD USD Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Consolidated Yes Yes Yes Yes Yes Scale Thousands Thousands Thousands Thousands Thousands Cash & cash equivalents 1,368,000 1,114,000 1,261,000 829,000 1,113,000 Short-term investments 435,000 1,479,000 2,277,000 2,315,000 1,857,000 Accounts & other receivables 209,000 169,000 195,000 299,000 332,000 Inventories of parts & supplies, at cost 203,000 221,000 243,000 401,000 469,000 Deferred income taxes 365,000 291,000 214,000 263,000 246,000 Prepaid expenses & other current assets 313,000 84,000 89,000 238,000 210,000 Total current assets 2,893,000 3,358,000 4,279,000 4,345,000 4,227,000 Flight equipment 13,722,000 13,719,000 13,991,000 15,542,000 16,367,000 Ground property & equipment 1,769,000 1,922,000 2,122,000 2,423,000 2,714,000 Deposits on flight equipment purchase contracts 380,000 247,000 230,000 456,000 416,000 Property & equipment, at cost 15,871,000 15,888,000 16,343,000 18,421,000 19,497,000 Less allowance for depreciation & amortization 4,831,000 5,254,000 5,765,000 6,294,000 6,731,000 Property & equipment, net 11,040,000 10,634,000 10,578,000 12,127,000 12,766,000 Goodwill - - - 970,000 970,000 Derivative contracts - - - 253,000 306,000 Intangible assets - - - 155,000 138,000 Non-current investments - - - 97,000 41,000 Other assets - - - 121,000 148,000 Other assets - - - 626,000 633,000 Other assets 375,000 277,000 606,000 - - Total assets 14,308,000 14,269,000 15,463,000 18,068,000 18,596,000 Accounts payable 668,000 746,000 739,000 1,057,000 1,107,000 Accrued retirement plans 86,000 32,000 171,000 110,000 - Accrued savings & ProfitSharing plans - - - - 135,000 Accrued aircraft rentals 118,000 112,000 27,000 57,000 139,000 Accrued vacation pay 175,000 190,000 200,000 248,000 270,000 Accrued health - - - 56,000 70,000 Accrued advances & deposits 23,000 32,000 33,000 - - Accrued derivative contracts 246,000 - - 85,000 50,000 Accrued fuel derivative contracts - 32,000 79,000 - - Accrued workers compensation - 130,000 142,000 162,000 159,000 Accrued deferred income taxes 36,000 - - - - Accrued taxes - - - - 67,000 Other accrued expenses 328,000 168,000 211,000 278,000 212,000 Accrued liabilities 1,012,000 696,000 863,000 996,000 1,102,000 Air traffic liability 963,000 1,044,000 1,198,000 1,836,000 2,170,000 Current maturities of long-term debt 163,000 190,000 505,000 644,000 271,000 Total current liabilities 2,806,000 2,676,000 3,305,000 4,533,000 4,650,000 French credit agreements 113,000 102,000 87,000 71,000 56,000 Notes 1,459,000 1,792,000 1,843,000 1,427,000 1,026,000 Convertible senior notes - - - 118,000 .

1. Sheet: Balance Sheet
Sheet: Income Statement
Sheet: Cash Flow Statement
Sheet: 1st Table
Sheet: 2nd Table
Sheet: 3rd Table
Southwest Airlines Co (NYS: LUV)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date
12/31/2008
12/31/2009
12/31/2010
12/31/2011
12/31/2012
Currency
USD
USD
USD
USD
USD
Audit Status
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Consolidated
Yes
Yes
Yes
Yes
Yes
Scale

2. Thousands
Thousands
Thousands
Thousands
Thousands
Cash & cash equivalents
1,368,000
1,114,000
1,261,000
829,000
1,113,000
Short-term investments
435,000
1,479,000
2,277,000
2,315,000
1,857,000
Accounts & other receivables
209,000
169,000
195,000
299,000
332,000
Inventories of parts & supplies, at cost
203,000
221,000
243,000
401,000
469,000
Deferred income taxes
365,000
291,000
214,000
263,000
246,000
Prepaid expenses & other current assets

3. 313,000
84,000
89,000
238,000
210,000
Total current assets
2,893,000
3,358,000
4,279,000
4,345,000
4,227,000
Flight equipment
13,722,000
13,719,000
13,991,000
15,542,000
16,367,000
Ground property & equipment
1,769,000
1,922,000
2,122,000
2,423,000
2,714,000
Deposits on flight equipment purchase contracts
380,000
247,000
230,000
456,000
416,000
Property & equipment, at cost
15,871,000
15,888,000
16,343,000
18,421,000
19,497,000
Less allowance for depreciation & amortization

4. 4,831,000
5,254,000
5,765,000
6,294,000
6,731,000
Property & equipment, net
11,040,000
10,634,000
10,578,000
12,127,000
12,766,000
Goodwill
-
-
-
970,000
970,000
Derivative contracts
-
-
-
253,000
306,000
Intangible assets
-
-
-
155,000
138,000
Non-current investments
-
-
-
97,000
41,000
Other assets

5. -
-
-
121,000
148,000
Other assets
-
-
-
626,000
633,000
Other assets
375,000
277,000
606,000
-
-
Total assets
14,308,000
14,269,000
15,463,000
18,068,000
18,596,000
Accounts payable
668,000
746,000
739,000
1,057,000
1,107,000
Accrued retirement plans
86,000
32,000
171,000
110,000
-
Accrued savings & ProfitSharing plans

6. -
-
-
-
135,000
Accrued aircraft rentals
118,000
112,000
27,000
57,000
139,000
Accrued vacation pay
175,000
190,000
200,000
248,000
270,000
Accrued health
-
-
-
56,000
70,000
Accrued advances & deposits
23,000
32,000
33,000
-
-
Accrued derivative contracts
246,000
-
-
85,000
50,000
Accrued fuel derivative contracts

7. -
32,000
79,000
-
-
Accrued workers compensation
-
130,000
142,000
162,000
159,000
Accrued deferred income taxes
36,000
-
-
-
-
Accrued taxes
-
-
-
-
67,000
Other accrued expenses
328,000
168,000
211,000
278,000
212,000
Accrued liabilities
1,012,000
696,000
863,000
996,000
1,102,000
Air traffic liability

8. 963,000
1,044,000
1,198,000
1,836,000
2,170,000
Current maturities of long-term debt
163,000
190,000
505,000
644,000
271,000
Total current liabilities
2,806,000
2,676,000
3,305,000
4,533,000
4,650,000
French credit agreements
113,000
102,000
87,000
71,000
56,000
Notes
1,459,000
1,792,000
1,843,000
1,427,000
1,026,000
Convertible senior notes
-
-
-
118,000
117,000
Credit line borrowing

9. 91,000
75,000
-
-
-
Revolving credit facility
400,000
-
-
-
-
Secured notes
400,000
-
-
-
-
Aircraft notes payable
-
-
-
713,000
620,000
Term loan agreement
585,000
998,000
933,000
862,000
787,000
Pass through certificates
464,000
450,000
428,000
411,000
394,000
Debentures

10. 133,000
110,000
117,000
135,000
138,000
Capital leases
39,000
25,000
-
40,000
37,000
Long-term debt including current portion
3,684,000
3,552,000
3,408,000
3,777,000
3,175,000
Less current maturities
163,000
190,000
505,000
644,000
271,000
Less: debt discount
(23,000)
-
-
-
-
Less: debt discount & issuance costs
-
(37,000)
(28,000)
(26,000)
(21,000)
Long-term debt less current maturities

11. 3,498,000
3,325,000
2,875,000
3,107,000
2,883,000
Deferred income taxes
1,904,000
2,207,000
2,493,000
2,566,000
2,884,000
Deferred gains from sale & leaseback of aircraft
105,000
102,000
88,000
75,000
63,000
Other deferred liabilities
1,042,000
-
-
-
-
Other noncurrent liabilities
-
493,000
465,000
910,000
1,124,000
Common stock
808,000
808,000
808,000
808,000
808,000
Capital in excess of par value

12. 1,215,000
1,216,000
1,183,000
1,222,000
1,210,000
Retained earnings
4,919,000
4,983,000
5,399,000
5,395,000
5,768,000
Fuel hedge derivatives
(946,000)
(580,000)
(250,000)
(183,000)
(63,000)
Interest rate derivatives
-
(19,000)
(34,000)
(66,000)
(67,000)
Other accumulated other comprehensive income
(38,000)
21,000
22,000
25,000
11,000
Accumulated other comprehensive income (loss)
(984,000)
(578,000)
(262,000)
(224,000)
(119,000)
Less treasury stock, at cost

13. 1,005,000
963,000
891,000
324,000
675,000
Total stockholders' equity
4,953,000
5,466,000
6,237,000
6,877,000
6,992,000
Southwest Airlines Co (NYS: LUV)
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
12/31/2008
12/31/2009
12/31/2010
12/31/2011
12/31/2012
Currency
USD
USD
USD
USD
USD
Audit Status
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Consolidated
Yes
Yes
Yes

14. Yes
Yes
Scale
Thousands
Thousands
Thousands
Thousands
Thousands
Passenger revenues
10,549,000
9,892,000
11,489,000
14,735,000
16,093,000
Freight revenues
145,000
118,000
125,000
139,000
160,000
Other revenues
329,000
340,000
490,000
784,000
835,000
Total operating revenues
11,023,000
10,350,000
12,104,000
15,658,000
17,088,000
Salaries, wages & benefits
3,340,000
3,468,000
3,704,000

15. 4,371,000
4,749,000
Fuel & oil
3,713,000
3,044,000
3,620,000
5,644,000
6,120,000
Maintenance materials & repairs
721,000
719,000
751,000
955,000
1,132,000
Aircraft rentals
154,000
186,000
180,000
308,000
355,000
Landing fees & other rentals
662,000
718,000
807,000
959,000
1,043,000
Depreciation & amortization
599,000
616,000
628,000
715,000
844,000
Acquisition & integration
-
-
-

16. 134,000
183,000
Other operating expenses
1,385,000
1,337,000
1,426,000
1,879,000
2,039,000
Total operating expenses
10,574,000
10,088,000
11,116,000
14,965,000
16,465,000
Operating income
449,000
262,000
988,000
693,000
623,000
Interest expense
130,000
186,000
167,000
194,000
147,000
Capitalized interest
25,000
21,000
18,000
12,000
21,000
Interest income
26,000
13,000
12,000

17. 10,000
7,000
Other gains (losses), net
(92,000)
54,000
(106,000)
(198,000)
181,000
Total other expenses (income)
(171,000)
(98,000)
(243,000)
(370,000)
62,000
Income before income taxes
278,000
164,000
745,000
323,000
685,000
Federal income taxes (benefit) - current
23,000
(24,000)
198,000
4,000
(45,000)
State income taxes (benefit) - current
10,000
(1,000)
19,000
13,000
12,000
Total current taxes (benefit)
33,000
(25,000)
217,000

18. 17,000
(33,000)
Federal income taxes - deferred
80,000
79,000
61,000
122,000
287,000
State income taxes (benefit) - deferred
(13,000)
11,000
8,000
6,000
10,000
Total deferred taxes
67,000
90,000
69,000
128,000
297,000
Provision for income taxes
100,000
65,000
286,000
145,000
264,000
Net income
178,000
99,000
459,000
178,000
421,000
Weighted average shares outstanding - basic
735,000
741,000
746,000

19. 774,000
750,000
Weighted average shares outstanding - diluted
739,000
741,000
747,000
775,000
757,000
Year end shares outstanding
739,992.572
742,790.931
747,434.272
772,560.643
730,319.489
Net income per share - basic
0.24
0.13
0.62
0.23
0.56
Net income per share - diluted
0.24
0.13
0.61
0.23
0.56
Dividends per common share
0.018
0.018
0.018
0.018
0.035
Number of full time employees
-
34,726
34,901

20. 45,392
45,861
Total number of employees
35,499
34,726
34,901
45,392
45,861
Number of common stockholders
10,624
10,657
10,438
13,363
13,687
Southwest Airlines Co (NYS: LUV)
Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow
Report Date
12/31/2008
12/31/2009
12/31/2010
12/31/2011
12/31/2012
Currency
USD
USD
USD
USD
USD
Audit Status
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Not Qualified
Consolidated

21. Yes
Yes
Yes
Yes
Yes
Scale
Thousands
Thousands
Thousands
Thousands
Thousands
Net income
178,000
99,000
459,000
178,000
421,000
Depreciation & amortization
599,000
616,000
628,000
715,000
844,000
Unrealized loss (gain) on fuel derivative instruments
-
14,000
139,000
90,000
(189,000)
Deferred income taxes
56,000
72,000
133,000
123,000
251,000
Amortization of deferred gains on sale & leaseback of aircraft

22. (12,000)
(12,000)
(14,000)
(13,000)
(12,000)
Share-based compensation expense
18,000
13,000
-
-
-
Excess tax benefits from share-based compensation expense
-
(1,000)
-
-
-
Accounts & other receivables
71,000
40,000
(26,000)
(26,000)
(33,000)
Other current assets
(384,000)
(27,000)
(8,000)
(196,000)
(104,000)
Accounts payable & accrued liabilities
(1,853,000)
59,000
193,000
253,000
186,000
Air traffic liability

23. 32,000
81,000
153,000
262,000
334,000
Cash collateral received from (provided to) fuel derivative
counterparties
-
(90,000)
265,000
(195,000)
233,000
Other operating activities, net
(226,000)
121,000
(361,000)
194,000
133,000
Net cash flows from operating activities
(1,521,000)
985,000
1,561,000
1,385,000
2,064,000
Payment to acquire AirTran Holdings, Inc. ("AirTran"), net of
AirTran cash on hand
-
-
-
(35,000)
-
Payment for purchases of property & equipment, net
(923,000)
(585,000)
(493,000)
(968,000)

24. (1,348,000)
Purchases of short-term investments
(5,886,000)
(6,106,000)
(5,624,000)
(5,362,000)
(2,481,000)
Proceeds from sales of short-term investments
5,831,000
5,120,000
4,852,000
5,314,000
-
Proceeds from sales of short-term & other investments
-
-
-
-
2,996,000
Other investing activities, net
-
2,000
-
-
-
Net cash flows from investing activities
(978,000)
(1,569,000)
(1,265,000)
(1,051,000)
(833,000)
Issuance of long-term debt
1,000,000
455,000
-
-

25. -
Proceeds from credit line borrowing
91,000
83,000
-
-
-
Proceeds from revolving credit facility
400,000
-
-
-
-
Proceeds from sale & leaseback transactions
173,000
381,000
-
-
-
Proceeds from employee stock plans
117,000
20,000
55,000
20,000
27,000
Proceeds from termination of interest rate derivative instrument
-
-
-
76,000
38,000
Payments of long-term debt & capital lease obligations
(55,000)
(86,000)
(155,000)
(540,000)

26. (578,000)
Payments of convertible debt obligations
-
-
-
(81,000)
-
Payment of revolving credit facility obligations
-
(400,000)
-
-
-
Payment of credit line borrowings obligations
-
(97,000)
(44,000)
-
-
Payments of cash dividends
(13,000)
(13,000)
(13,000)
(14,000)
(22,000)
Repurchase of common stock
(54,000)
-
-
(225,000)
(400,000)
Excess tax benefits from share-based compensation
arrangements
-
1,000
-

27. -
-
Other financing activities, net
(5,000)
(14,000)
8,000
(2,000)
(12,000)
Net cash flows from financing activities
1,654,000
330,000
(149,000)
(766,000)
(947,000)
Net change in cash & cash equivalents
(845,000)
(254,000)
147,000
(432,000)
284,000
Cash & cash equivalents at beginning of period
2,213,000
1,368,000
1,114,000
1,261,000
829,000
Cash & cash equivalents at end of period
1,368,000
1,114,000
1,261,000
829,000
1,113,000
Cash payments for interest, net of amount capitalized
100,000
152,000
135,000

28. 185,000
153,000
Cash payments for income taxes
71,000
5,000
274,000
13,000
100,000
2008.0
2009.0
2010.0
2011.0
2012.0
Net Income in current dollars
178,000
99,000
459,000
178,000
421,000
Net Income in constant dollars
179360.0
99000.0
453530.0
172480.0
400950.0
Net Income in current dollars per share outstanding
0.24
0.13
0.62
0.23
0.56
Net income in constant dollars per share- diluted
0.24
0.13
0.61
0.23

29. 0.56
Annual dollar changes in item 1
-79000.0
360000.0
-281000.0
243000.0
Annual dollar changes in item 2
-80360.0
354530.0
-281050.0
228500.0
Annual dollar changes in item 3
-0.11
0.49
-0.39
0.33
Annual dollar changes in item 4
-0.11
0.48
-0.38
0.33
Annual percentage change in item 1
55.61
463.63
38.77
236.51
Annual percentage change in item 2
55.19
458.11
38.03
232.46
Annual percentage change in item 3
54.16
476.92
37.09
243.47

30. Annual percentage change in item 4
54.16
469.23
37.71
243.47
Gross Profit Margin
4.07
2.5
8.2
4.4
3.64
Operating Profit Margin
-91.85
-94.0
-83.67
-91.14
-92.7
Net profit Margin
1.16
0.956
3.79
1.13
2.46
Return on Assets
0.012
0.0069
0.0296
0.0098
0.0226
Return on Equity
0.0359
0.0181
0.0735
0.0258
0.0602
2008.0

31. 2009.0
2010.0
2011.0
2012.0
sales revenue
11,023,000
10,350,000
12,104,000
15,658,000
17,088,000
Annual dollar change in sales revenue
-673.0
1754.0
3554.0
1430.0
Annual percentage change in sales revenue
0.93
1.16
1.29
1.09
Operating expenses
10,574,000
10,088,000
11,116,000
14,965,000
16,465,000
Annual dollar change in operating expenses
-486.0
1028.0
3849.0
1500.0
Annual percentage change in operating expenses
0.95
1.1
1.34
1.1

32. Total Expenses
10,574,000
10,088,000
11,116,000
14,965,000
16,465,000
Annual dollar change in total expenses
-486.0
1028.0
3849.0
1500.0
Annual percentage change in total expenses
0.95
1.1
1.34
1.1
2008.0
2009.0
2010.0
2011.0
2012.0
Percentage change in nominal GDP
Percentage change in sales revenue
0.93
1.16
1.29
1.09
Percentage change in total expenses
0.95
1.1
1.34
1.1
Percentage change in net income
55.61
463.63

33. 38.77
236.51
There is 3 sheets on excel called ( 1st Table, 2nd Table, and 3rd
Table ). Its Southwest Airlines Company financial data I want
your help to write a paragraph for each table as following:
Part 1
Here a completed Table with the company data for last 5 years.
I want you to write a brief description of the company’s
profitability during the past five years focusing on the changes,
growth and any trends in its profitability.
Part 2
Study the data in 2nd Table. Discuss your company’s
profitability and the changes in it based on the changes and
growth in its revenues and operating and total expenses.
Part 3
Find the percentage change U.S in nominal GDP. Study the data
in 3rd table. How does the growth in your company’s revenues,
expenses and profitability compare to the growth in the U.S.
economy? How dependent is your company’s profitability on
the health and growth of the U.S. economy
One paragraph for each part so total of a one full page or page
and half.
Thank you