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Southwest Airlines

Financials

Price	54.44	EPS	4
Shares	539	P/E	13
MCap	29,345	P/FCF	7
Net Debt	-702	EBIT	3,671
TEV	28,643	TEV/EBIT	8
TTM 2019-12-31, in MM, except price, ratios

Filings

10-Q	2020-06-30	Filed 2020-07-27
10-Q	2020-03-31	Filed 2020-04-28
10-K	2019-12-31	Filed 2020-02-04
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-07-30
10-Q	2019-03-31	Filed 2019-04-30
10-K	2018-12-31	Filed 2019-02-05
10-Q	2018-09-30	Filed 2018-10-30
10-Q	2018-06-30	Filed 2018-08-01
10-Q	2018-03-31	Filed 2018-05-01
10-K	2017-12-31	Filed 2018-02-07
10-Q	2017-09-30	Filed 2017-11-01
10-Q	2017-06-30	Filed 2017-08-01
10-Q	2017-03-31	Filed 2017-05-03
10-K	2016-12-31	Filed 2017-02-07
10-Q	2016-09-30	Filed 2016-10-31
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-04-29
10-K	2015-12-31	Filed 2016-02-03
10-Q	2015-09-30	Filed 2015-10-29
10-Q	2015-06-30	Filed 2015-07-31
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-06
10-Q	2014-09-30	Filed 2014-10-29
10-Q	2014-06-30	Filed 2014-07-30
10-Q	2014-03-31	Filed 2014-05-01
10-K	2013-12-31	Filed 2014-02-04
10-Q	2013-09-30	Filed 2013-10-30
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-05-02
10-K	2012-12-31	Filed 2013-02-07
10-Q	2012-09-30	Filed 2012-10-26
10-Q	2012-06-30	Filed 2012-07-27
10-Q	2012-03-31	Filed 2012-04-25
10-K	2011-12-31	Filed 2012-02-09
10-Q	2011-09-30	Filed 2011-10-25
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-04-25
10-K	2010-12-31	Filed 2011-02-08
10-Q	2010-09-30	Filed 2010-10-22
10-Q	2010-06-30	Filed 2010-08-02
10-Q	2010-03-31	Filed 2010-04-26
10-K	2009-12-31	Filed 2010-01-29

Reports

8-K	2020-07-31	Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K	2020-07-30	Off-BS Arrangement
8-K	2020-07-23	Earnings, Exhibits
8-K	2020-06-30	Off-BS Arrangement
8-K	2020-06-11
8-K	2020-06-08
8-K	2020-05-29
8-K	2020-05-21
8-K	2020-05-19
8-K	2020-05-08
8-K	2020-05-04
8-K	2020-05-01
8-K	2020-04-28
8-K	2020-04-20
8-K	2020-03-30
8-K	2020-03-12
8-K	2020-03-05
8-K	2020-02-10
8-K	2020-01-23
8-K	2019-12-17
8-K	2019-10-24
8-K	2019-09-18
8-K	2019-07-25
8-K	2019-06-19
8-K	2019-05-15
8-K	2019-04-25
8-K	2019-03-27
8-K	2019-02-20
8-K	2019-01-24
8-K	2019-01-08
8-K	2018-12-12
8-K	2018-12-07
8-K	2018-11-07
8-K	2018-10-25
8-K	2018-10-05
8-K	2018-09-12
8-K	2018-08-08
8-K	2018-07-26
8-K	2018-07-10
8-K	2018-06-06
8-K	2018-06-04
8-K	2018-05-16
8-K	2018-05-08
8-K	2018-04-26
8-K	2018-04-06
8-K	2018-03-20
8-K	2018-03-08
8-K	2018-02-07
8-K	2018-01-25
8-K	2018-01-09
8-K	2018-01-02
8-K	2015-09-23
8-K	2015-09-18
8-K	2015-09-08
8-K	2015-08-11
8-K	2015-07-29
8-K	2015-07-23
8-K	2015-07-08
8-K	2015-06-09
8-K	2015-06-09
8-K	2015-05-19
8-K	2015-05-13
8-K	2015-05-07
8-K	2015-04-23
8-K	2015-04-09
8-K	2015-03-11
8-K	2015-03-03
8-K	2015-02-09
8-K	2015-01-22
8-K	2015-01-12

Southwest Airlines Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

luv-20200630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020


			or


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			For the transition period from ________ to ________

Commission File No. 1-7259

SOUTHWEST AIRLINES CO.

(Exact name of registrant as specified in its charter)


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)

Registrant's telephone number, including area code: (214) 792-4000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($1.00 par value)	LUV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No x

Number of shares of Common Stock outstanding as of the close of business on July 23, 2020: 589,872,108

TABLE OF CONTENTS TO FORM 10-Q

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheet as of June 30, 2020 and December 31, 2019

Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2020 and 2019

Condensed Consolidated Statement of Stockholders' Equity as of June 30, 2020 and 2019

Condensed Consolidated Statement of Cash Flows for the three and six months ended June 30, 2020 and 2019

Notes to Condensed Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits

SIGNATURES

SOUTHWEST AIRLINES CO.

FORM 10-Q

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Southwest Airlines Co.

Condensed Consolidated Balance Sheet

(in millions)

(unaudited)


	June 30, 2020		December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	12,351	$	2,548
Short-term investments	2,106		1,524
Accounts and other receivables	770		1,086
Inventories of parts and supplies, at cost	422		529
Prepaid expenses and other current assets	223		287
Total current assets	15,872		5,974

Property and equipment, at cost:
Flight equipment	20,943		21,629
Ground property and equipment	5,923		5,672
Deposits on flight equipment purchase contracts	306		248
Assets constructed for others	239		164
	27,411		27,713
Less allowance for depreciation and amortization	11,164		10,688
	16,247		17,025
Goodwill	970		970
Operating lease right-of-use assets	1,845		1,349
Other assets	662		577
	$	35,596	$	25,895

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	970	$	1,574
Accrued liabilities	2,372		1,749
Current operating lease liabilities	336		353
Air traffic liability	4,988		4,457
Current maturities of long-term debt	695		819
Total current liabilities	9,361		8,952

Long-term debt less current maturities	8,905		1,846
Air traffic liability - noncurrent	1,891		1,053
Deferred income taxes	2,114		2,364
Construction obligation	239		164
Noncurrent operating lease liabilities	1,486		978
Other noncurrent liabilities	722		706
Stockholders' equity:
Common stock	888		808
Capital in excess of par value	4,159		1,581
Retained earnings	16,842		17,945
Accumulated other comprehensive loss	(130)		(61)
Treasury stock, at cost	(10,881)		(10,441)
Total stockholders' equity	10,878		9,832
	$	35,596	$	25,895

See accompanying notes.

Southwest Airlines Co.

Condensed Consolidated Statement of Comprehensive Income (Loss)

(in millions, except per share amounts)

(unaudited)


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
OPERATING REVENUES:
Passenger	$	704	$	5,487	$	4,549	$	10,231
Freight	38		44		77		87

Other	266		378		616		741
Total operating revenues	1,008		5,909		5,242		11,059

OPERATING EXPENSES:
Salaries, wages, and benefits	1,714		2,068		3,568		4,043
Payroll support, voluntary separation, net	(784)		—		(784)		—
Fuel and oil	257		1,136		1,128		2,152
Maintenance materials and repairs	140		310		412		603

Landing fees and airport rentals	275		357		614		691
Depreciation and amortization	313		302		624		598
Other operating expenses, net	220		768		917		1,499
Total operating expenses	2,135		4,941		6,479		9,586

OPERATING INCOME (LOSS)	(1,127)		968		(1,237)		1,473

OTHER EXPENSES (INCOME):
Interest expense	96		31		124		61
Capitalized interest	(7)		(9)		(12)		(17)
Interest income	(9)		(24)		(26)		(47)
Other (gains) losses, net	32		2		60		4
Total other expenses (income)	112		—		146		1

INCOME (LOSS) BEFORE INCOME TAXES	(1,239)		968		(1,383)		1,472
PROVISION FOR INCOME TAXES	(324)		227		(374)		344

NET INCOME (LOSS)	$	(915)	$	741	$	(1,009)	$	1,128

NET INCOME (LOSS) PER SHARE, BASIC	$	(1.63)	$	1.37	$	(1.87)	$	2.06

NET INCOME (LOSS) PER SHARE, DILUTED	$	(1.63)	$	1.37	$	(1.87)	$	2.06

COMPREHENSIVE INCOME (LOSS)	$	(859)	$	675	$	(1,078)	$	1,138

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	563		542		539		547
Diluted	563		542		539		547

See accompanying notes.

Southwest Airlines Co.

Condensed Consolidated Statement of Stockholders' Equity

(in millions, except per share amounts)

(unaudited)



	Common Stock		Capital in excess of par value		Retained earnings		Accumulated other comprehensive income (loss)		Treasury stock		Total








Balance at December 31, 2019	$	808	$	1,581	$	17,945	$	(61)	$	(10,441)	$	9,832
Repurchase of common stock	—		—		—		—		(451)		(451)
Issuance of common and treasury stock pursuant to Employee stock plans	—		(8)		—		—		6		(2)
Share-based compensation	—		9		—		—		—		9
Cash dividends, $0.180 per share	—		—		(94)		—		—		(94)
Comprehensive loss	—		—		(94)		(125)		—		(219)
Balance at March 31, 2020	$	808	$	1,582	$	17,757	$	(186)	$	(10,886)	$	9,075
Issuance of common stock, net of issuance costs	80		2,144		—		—		—		2,224
Issuance of common and treasury stock pursuant to Employee stock plans	—		8		—		—		5		13
Share-based compensation	—		(2)		—		—		—		(2)

Stock warrants	—		35		—		—		—		35
Equity feature of convertible notes, net of issuance costs	—		392		—		—		—		392
Comprehensive loss	—		—		(915)		56		—		(859)
Balance at June 30, 2020	$	888	$	4,159	$	16,842	$	(130)	$	(10,881)	$	10,878



	Common Stock		Capital in excess of par value		Retained earnings		Accumulated other comprehensive income (loss)		Treasury stock		Total
Balance at December 31, 2018	$	808	$	1,510	$	15,967	$	20	$	(8,452)	$	9,853
Cumulative effect of adopting Accounting Standards Update No. 2016-12, Leases, codified in Accounting Standards Codification 842	—		—		55		—		—		55
Balance after adjustment for the new accounting standard	$	808	$	1,510	$	16,022	$	20	$	(8,452)

EX-10.1	exhibit101boeingapplic.htm
EX-10.2	exhibit102boeingdelive.htm
EX-10.3	exhibit103boeingcustom.htm
EX-31.1	luv-6302020xex311.htm
EX-31.2	luv-6302020xex312.htm
EX-32.1	luv-6302020xex321.htm

LUV 10Q Quarterly Report

Southwest Airlines Earnings 2020-06-30