Management Finance Assignment

Sheet: asreported

Southwest Airlines Co (NYS: LUV)

Exchange rate used is that of the Year End reported date

As Reported Annual Income Statement

Report Date

12/31/2016

12/31/2015

12/31/2014

12/31/2013

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

Passenger revenues

1.8594E7

1.8299E7

1.7658E7

1.6721E7

1.6093E7

Freight revenues

171000.0

179000.0

175000.0

164000.0

160000.0

Special revenue adjustment

-

172000.0

-

-

-

Other revenues

1660000.0

1170000.0

772000.0

814000.0

835000.0

Total operating revenues

2.0425E7

1.982E7

1.8605E7

1.7699E7

1.7088E7

Salaries, wages & benefits

6798000.0

6383000.0

5434000.0

5035000.0

4749000.0

Fuel & oil

3647000.0

3616000.0

5293000.0

5763000.0

6120000.0

Maintenance materials & repairs

1045000.0

1005000.0

978000.0

1080000.0

1132000.0

Aircraft rentals

229000.0

238000.0

295000.0

361000.0

355000.0

Landing fees & other rentals

1211000.0

1166000.0

1111000.0

1103000.0

1043000.0

Depreciation & amortization

1221000.0

1015000.0

938000.0

867000.0

844000.0

Acquisition & integration

-

39000.0

126000.0

86000.0

183000.0

Other operating expenses

2514000.0

2242000.0

2205000.0

2126000.0

2039000.0

Total operating expenses

1.6665E7

1.5704E7

1.638E7

1.6421E7

1.6465E7

Operating income

3760000.0

4116000.0

2225000.0

1278000.0

623000.0

Interest expense

122000.0

121000.0

130000.0

131000.0

147000.0

Capitalized interest

47000.0

31000.0

23000.0

24000.0

21000.0

Interest income

24000.0

9000.0

7000.0

6000.0

7000.0

Other gains (losses), net

-162000.0

-556000.0

-309000.0

32000.0

181000.0

Total other expenses (income)

-213000.0

-637000.0

-409000.0

-69000.0

62000.0

Income before income taxes

3547000.0

3479000.0

1816000.0

1209000.0

685000.0

Federal income taxes (benefit) - current

778000.0

1292000.0

203000.0

355000.0

-45000.0

State income taxes (benefit) - current

69000.0

114000.0

29000.0

44000.0

12000.0

Total current taxes (benefit)

847000.0

1406000.0

232000.0

399000.0

-33000.0

Federal income taxes - deferred

426000.0

-97000.0

421000.0

62000.0

287000.0

State income taxes (benefit) - deferred

30000.0

-11000.0

27000.0

-6000.0

10000.0

Total deferred taxes

456000.0

-108000.0

448000.0

56000.0

297000.0

Provision for income taxes

1303000.0

1298000.0

680000.0

455000.0

264000.0

Net income

2244000.0

2181000.0

1136000.0

754000.0

421000.0

Weighted average shares outstanding - basic

627000.0

661000.0

687000.0

710000.0

750000.0

Weighted average shares outstanding - diluted

633000.0

669000.0

696000.0

718000.0

757000.0

Year end shares outstanding

615160.779

647601.617

675594.084

700474.688

730319.489

Net income per share - basic

3.58

3.3

1.65

1.06

0.56

Net income per share - diluted

3.55

3.27

1.64

1.05

0.56

Cash dividends declared per common share

0.375

0.285

0.22

0.13

0.035

Number of full time employees

53500.0

49583.0

-

44831.0

45861.0

Total number of employees

53500.0

49583.0

46278.0

44831.0

45861.0

Number of common stockholders

12850.0

13518.0

13762.0

13850.0

13687.0