2020 Q4 Form 10-Q Financial Statement

#000009238020000145 Filed on October 27, 2020

View on sec.gov

Income Statement

Concept 2020 Q4 2020 Q3 2019 Q4
Revenue $2.013B $1.793B $5.729B
YoY Change -64.86% -68.2% 0.44%
Cost Of Revenue $660.0M $687.0M $1.432B
YoY Change -53.91% -52.13% -7.85%
Gross Profit $1.353B $1.106B $4.298B
YoY Change -68.52% -73.69% 3.57%
Gross Profit Margin 67.21% 61.68% 75.02%
Selling, General & Admin $1.719B $1.863B $2.605B
YoY Change -34.01% -21.06% 14.1%
% of Gross Profit 127.05% 168.44% 60.61%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $315.0M $316.0M $313.0M
YoY Change 0.64% 2.6% -5.44%
% of Gross Profit 23.28% 28.57% 7.28%
Operating Expenses $2.555B $2.666B $3.633B
YoY Change -29.67% -44.69% 9.1%
Operating Profit -$1.169B -$1.411B $665.0M
YoY Change -275.79% -272.28% -18.9%
Interest Expense -$100.0M -$96.00M $1.000M
YoY Change -10100.0% -420.0% -200.0%
% of Operating Profit 0.15%
Other Income/Expense, Net -$63.00M -$131.0M $0.00
YoY Change -100.0%
Pretax Income -$1.331B -$1.542B $666.0M
YoY Change -299.85% -288.28% -18.48%
Income Tax -$423.0M -$385.0M $184.0M
% Of Pretax Income 27.63%
Net Earnings -$908.0M -$1.157B $514.0M
YoY Change -276.65% -275.57% -21.41%
Net Earnings / Revenue -45.11% -64.53% 8.97%
Basic Earnings Per Share -$1.54 -$1.96 $0.98
Diluted Earnings Per Share -$1.54 -$1.96 $0.98
COMMON SHARES
Basic Shares Outstanding 590.3M shares 590.0M shares 526.3M shares
Diluted Shares Outstanding 590.0M shares

Balance Sheet

Concept 2020 Q4 2020 Q3 2019 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.33B $14.56B $4.072B
YoY Change 227.46% 262.6% 10.38%
Cash & Equivalents $11.06B $12.11B $2.548B
Short-Term Investments $2.271B $2.453B $1.524B
Other Short-Term Assets $295.0M $248.0M $287.0M
YoY Change 2.79% 3.77% -7.42%
Inventory $414.0M $426.0M $529.0M
Prepaid Expenses
Receivables $46.00M $514.0M $1.086B
Other Receivables $35.00M $12.00M $55.00M
Total Short-Term Assets $15.17B $16.13B $5.974B
YoY Change 153.98% 185.54% 18.81%
LONG-TERM ASSETS
Property, Plant & Equipment $15.83B $16.06B $17.03B
YoY Change -7.01% -10.01% -12.8%
Goodwill $970.0M $970.0M $970.0M
YoY Change 0.0% 0.0% 0.0%
Intangibles $295.0M $295.0M $296.0M
YoY Change -0.34% -5.14% -26.0%
Long-Term Investments
YoY Change
Other Assets $722.0M $679.0M $577.0M
YoY Change 25.13% 3.98% -19.86%
Total Long-Term Assets $19.42B $19.47B $19.92B
YoY Change -2.54% -6.46% -6.1%
TOTAL ASSETS
Total Short-Term Assets $15.17B $16.13B $5.974B
Total Long-Term Assets $19.42B $19.47B $19.92B
Total Assets $34.59B $35.61B $25.90B
YoY Change 33.57% 34.53% -1.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $931.0M $980.0M $1.574B
YoY Change -40.85% -23.08% 11.16%
Accrued Expenses $2.259B $1.836B $1.749B
YoY Change 29.16% 26.1% 0.0%
Deferred Revenue $3.790B $3.952B $4.457B
YoY Change -14.97%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $220.0M $720.0M $819.0M
YoY Change -73.14% 13.03% 35.15%
Total Short-Term Liabilities $7.506B $7.804B $8.952B
YoY Change -16.15% -9.56% 13.24%
LONG-TERM LIABILITIES
Long-Term Debt $10.11B $10.14B $1.846B
YoY Change 447.72% 322.64% -34.52%
Other Long-Term Liabilities $1.247B $1.233B $706.0M
YoY Change 76.63% 91.46% 8.62%
Total Long-Term Liabilities $1.247B $1.233B $706.0M
YoY Change 76.63% 91.46% 8.62%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.506B $7.804B $8.952B
Total Long-Term Liabilities $1.247B $1.233B $706.0M
Total Liabilities $8.753B $9.037B $9.658B
YoY Change -9.37% -2.55% 12.89%
SHAREHOLDERS EQUITY
Retained Earnings $14.78B $15.69B $17.95B
YoY Change -17.65% -10.5% 12.39%
Common Stock $5.079B $5.063B $2.389B
YoY Change 112.6% 114.35% 3.06%
Preferred Stock
YoY Change
Treasury Stock (at cost) $10.88B $10.88B $10.44B
YoY Change 4.16% 9.95% 23.53%
Treasury Stock Shares 297.6M shares 288.5M shares
Shareholders Equity $8.876B $9.769B $9.832B
YoY Change
Total Liabilities & Shareholders Equity $34.59B $35.61B $25.90B
YoY Change 33.57% 34.53% -1.33%

Cashflow Statement

Concept 2020 Q4 2020 Q3 2019 Q4
OPERATING ACTIVITIES
Net Income -$908.0M -$1.157B $514.0M
YoY Change -276.65% -275.57% -21.41%
Depreciation, Depletion And Amortization $315.0M $316.0M $313.0M
YoY Change 0.64% 2.6% -5.44%
Cash From Operating Activities -$596.0M -$1.050B $824.0M
YoY Change -172.33% -196.24% -16.68%
INVESTING ACTIVITIES
Capital Expenditures -$90.00M -$89.00M -$261.0M
YoY Change -65.52% -76.33% -51.93%
Acquisitions
YoY Change
Other Investing Activities $181.0M -$345.0M $405.0M
YoY Change -55.31% -424.0%
Cash From Investing Activities $91.00M -$434.0M $144.0M
YoY Change -36.81% 20.89% -121.56%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00
YoY Change -100.0%
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -541.0M $1.242B -908.0M
YoY Change -40.42% -280.0% 59.02%
NET CHANGE
Cash From Operating Activities -596.0M -$1.050B 824.0M
Cash From Investing Activities 91.00M -$434.0M 144.0M
Cash From Financing Activities -541.0M $1.242B -908.0M
Net Change In Cash -1.046B -$242.0M 60.00M
YoY Change -1843.33% -676.19% -124.0%
FREE CASH FLOW
Cash From Operating Activities -$596.0M -$1.050B $824.0M
Capital Expenditures -$90.00M -$89.00M -$261.0M
Free Cash Flow -$506.0M -$961.0M $1.085B
YoY Change -146.64% -165.51% -29.18%

Facts In Submission

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BASIS OF PRESENTATIONSouthwest Airlines Co. (the "Company" or "Southwest") operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. The unaudited Condensed Consolidated Financial Statements include accounts of the Company and its wholly owned subsidiaries.The accompanying unaudited Condensed Consolidated Financial Statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States ("GAAP") for complete financial statements. The unaudited Condensed Consolidated Financial Statements for the interim periods ended September 30, 2020 and 2019 include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. This includes all normal and recurring adjustments and elimination of significant intercompany transactions. Financial results for the Company and airlines in general can be seasonal in nature. In many years, the Company's revenues, as well as its Operating income and Net income, have been better in its second and third fiscal quarters than in its first and fourth fiscal quarters. However, in 2020, as a result of the COVID-19 pandemic, the Company's results were not in line with such historical trends. See Note 2 for further information. Air travel is also significantly impacted by general economic conditions, the amount of disposable income available to consumers, unemployment levels, corporate travel budgets, extreme or severe weather and natural disasters, fears of terrorism or war, and other factors beyond the Company's control. These and other factors, such as the price of jet fuel in some periods, the nature of the Company's fuel hedging program, and the periodic volatility of commodities used by the Company for hedging jet fuel, have created, and may continue to create, significant volatility in the Company's financial results. See Note 4 for further information on fuel and the Company's hedging program. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for future quarters or for the year ended December 31, 2020. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
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307000000 USD
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485000000 USD
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613000000 USD
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19000000 USD
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53000000 USD
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31000000 USD
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28000000 USD
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11000000 USD
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2000000 USD
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28000000 USD
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2000000 USD
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4000000 USD
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8000000 USD
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18000000 USD
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1704000000 USD
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2907000000 USD
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AirTrafficLiabilityPassengerRevenueandAncillaryPassengerServices
2125000000 USD
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4187000000 USD
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1488000000 USD
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2195000000 USD
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105000000 USD
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5070000000 USD
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590000000 shares
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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542000000 shares
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0 shares
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0 shares
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590000000 shares
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534000000 shares
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556000000 shares
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543000000 shares
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1.24
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2500000000 USD
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1800000000 USD
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80500000 shares
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543000000 USD
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220000000 USD
CY2020Q3 us-gaap Long Term Debt And Capital Lease Obligations Maturities Repayments Of Principal In Year Three
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524000000 USD
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1400000000 USD
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152000000 USD
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4000000000.0 USD
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4500000000 USD
CY2020Q3 us-gaap Long Term Debt And Capital Lease Obligations Maturities Repayments Of Principal Remainder Of Fiscal Year
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543000000 USD
CY2020Q3 luv Debt Agreements Not Publicly Held
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4 Loans
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48000000 USD
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53000000 USD
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46000000 USD
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112000000 USD
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466000000 USD
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325000000 USD
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12000000 USD
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55000000 USD
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231000000 USD
CY2020Q3 us-gaap Taxes Payable Current
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41000000 USD
CY2020Q3 luv Derivative Asset Fair Value Amount Offset Against Collateral Total
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77000000 USD
CY2019Q4 luv Derivative Asset Fair Value Amount Offset Against Collateral Total
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49000000 USD
CY2020Q3 us-gaap Intangible Assets Net Excluding Goodwill
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295000000 USD
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296000000 USD
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307000000 USD
CY2019Q4 us-gaap Other Assets Miscellaneous
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232000000 USD
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679000000 USD
CY2019Q4 us-gaap Other Assets Noncurrent
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577000000 USD
CY2020Q3 us-gaap Accounts Payable Trade Current
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169000000 USD
CY2019Q4 us-gaap Accounts Payable Trade Current
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304000000 USD
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440000000 USD
CY2019Q4 us-gaap Accounts Payable Other Current
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428000000 USD
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CY2019Q4 us-gaap Accounts Payable Current
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CY2020Q3 luv Extended Emergency Time Off Accrued Liability
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457000000 USD
CY2019Q4 luv Extended Emergency Time Off Accrued Liability
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242000000 USD
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CY2020Q3 us-gaap Accrued Vacation Current
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418000000 USD
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434000000 USD
CY2020Q3 us-gaap Accrued Employee Benefits Current
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110000000 USD
CY2019Q4 us-gaap Accrued Employee Benefits Current
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120000000 USD
CY2020Q3 us-gaap Workers Compensation Liability Current
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158000000 USD
CY2019Q4 us-gaap Workers Compensation Liability Current
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166000000 USD
CY2020Q3 luv Accrualfor Propertyand Income Taxes
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75000000 USD
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327000000 USD
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250000000 USD
CY2020Q3 us-gaap Accrued Liabilities Current
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1836000000 USD
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1749000000 USD
CY2020Q3 luv Extended Emergency Time Off Other Noncurrent Liability
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131000000 USD
CY2019Q4 luv Extended Emergency Time Off Other Noncurrent Liability
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0 USD
CY2020Q3 luv Voluntary Separation Program2020 Other Noncurrent Liability
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377000000 USD
CY2019Q4 luv Voluntary Separation Program2020 Other Noncurrent Liability
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0 USD
CY2020Q3 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
339000000 USD
CY2019Q4 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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288000000 USD
CY2020Q3 us-gaap Other Deferred Compensation Arrangements Liability Classified Noncurrent
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287000000 USD
CY2019Q4 us-gaap Other Deferred Compensation Arrangements Liability Classified Noncurrent
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313000000 USD
CY2020Q3 us-gaap Other Sundry Liabilities Noncurrent
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99000000 USD
CY2019Q4 us-gaap Other Sundry Liabilities Noncurrent
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105000000 USD
CY2020Q3 us-gaap Other Liabilities Noncurrent
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1233000000 USD
CY2019Q4 us-gaap Other Liabilities Noncurrent
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706000000 USD
CY2020Q3 luv Assets Constructed For Others
AssetsConstructedForOthers
274000000 USD
CY2019Q4 luv Assets Constructed For Others
AssetsConstructedForOthers
164000000 USD
CY2020Q3 luv Numberof Aircraft Grounded Under Emergency Order
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34
CY2020Q3 luv After Tax Potential Concessionsand Other Considerations Announced July2019
AfterTaxPotentialConcessionsandOtherConsiderationsAnnouncedJuly2019
4900000000 USD
CY2020Q3 luv Pre Tax Potential Concessionsand Other Considerations Announced January2020
PreTaxPotentialConcessionsandOtherConsiderationsAnnouncedJanuary2020
2600000000 USD
CY2020Q3 luv Numberof Aircraft Grounded Under Emergency Order
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34
CY2020Q3 luv Numberof Aircraft Not Delivered Dueto Grounding Under Emergency Order
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41 aircraft
luv Supplier Proceeds
SupplierProceeds
-428000000 USD

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