Year-End Closing Market Price of 1 Common Share The Year-End Closing Market Price of 1 share of Southwest's (SW) Common Stock is not given in SW's annual report. The Year-End Closing Market Price is used in the two calculations below. The last day in SW's 2020 year was Thursday, Dec. 31, 2020. SW's common stock trades on the New York Stock Exchange (NYSE). On Dec. 31, 2020, SW's common stock closed at $46.61. Enter that price in the box below. 2020 Year-End Closing Market Price of 1 Common Share: $46.61 $xx.xx 2020 2019 (PE Ratio) Price-Earnings Ratio Year-end closing market price of 1 common stock $xx.xx $46.61 times 12.61 Net Income (Loss) per Share, Basic XX.XX $xx.xx Dividend Yield % $XX.XXXX Cash dividends declared per common share % 1.30 % XX.xx% Year-end closing market price of 1 common stock $46.61 $xx.xx December 31, 2019 Item 8. Financial Statements and Supplementary Data Southwest Airlines Co. Consolidated Balance Sheet (in millions, except share data) December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 11,063 $ Short-term investments 2,271 Accounts and other receivables 1,130 Inventories of parts and supplies, at cost 414 Prepaid expenses and other current assets 295 Total current assets 15,173 Property and equipment, at cost: Flight equipment 20,877 Ground property and equipment 6,083 Deposits on flight equipment purchase contracts 305 Assets constructed for others 309 27,574 Less allowance for depreciation and amortization 11,743 15,831 Goodwill 970 Operating lease right-of-use assets 1,892 Other assets 722 34,588 $ 2,548 1,524 1,086 529 287 5,974 21,629 5,672 248 164 27,713 10,688 17,025 970 1,349 577 25,895 931 2,259 306 3,790 220 7,506 1,574 1,749 353 4,457 819 8,952 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Current operating lease liabilities Air traffic liability Current maturities of long-term debt Total current liabilities Long-term debt less current maturities Air traffic liability - noncurrent Deferred income taxes Construction obligation Noncurrent operating lease liabilities Other noncurrent liabilities Stockholders' equity: Common stock, $1.00 par value: 2,000,000,000 shares authorized: 888,111,634 and 807,611,634 shares issued in 2020 and 2019 respectively Capital in excess of par value Retained earnings Accumulated other comprehensive loss Treasury stock, at cost: 297,637,297 and 288,547,318 shares in 2020 and 2019 respectively Total stockholders' equity 10,111 3,343 1,634 309 1,562 1,247 1,846 1,053 2,364 164 978 706 888 4,191 14,777 (105) 808 1,581 17,945 (61) (10,875) 8,876 34,588 (10,441) 9,832 25,895 See accompanying notes. Southwest Airlines Co. Consolidated Statement of Income (Loss) (in millions, except per share amounts) Year ended December 31, 2019 2018 2020 $ OPERATING REVENUES: Passenger Freight Other Total operating revenues 7,665 $ 161 1,222 20,776 $ 172 1,480 20,455 175 1,335 9,048 22,428 21,965 8,293 7,649 OPERATING EXPENSES, NET: Salaries, wages, and benefits Payroll support and voluntary Employee programs, net Fuel and oil Maintenance materials and repairs Landing fees and airport rentals Depreciation and amortization Other operating expenses Total operating expenses, net 6,811 (967) 1,849 750 1,240 1,255 1,926 12,864 4,347 1,223 1,363 1,219 3,026 19,471 4,616 1,107 1,334 1,201 2,852 18,759 OPERATING INCOME (LOSS) (3,816) 2,957 3,206 349 118 131 OTHER EXPENSES (INCOME): Interest expense Capitalized interest Interest income Other (gains) losses, net Total other expenses (income) (35) (32) 158 (36) (90) 8 (38) (69) 18 440 42 3,164 699 INCOME (LOSS) BEFORE INCOME TAXES PROVISION (BENEFIT) FOR INCOME TAXES NET INCOME (LOSS) NET INCOME (LOSS) PER SHARE, BASIC NET INCOME (LOSS) PER SHARE, DILUTED (4,256) (1,182) (3,074) (5.44) $ 2,957 657 2,300 4.28 $ 2,465 $ 4.30 IA $ (5.44) $ 4.27 $ 4.29 See accompanying notes. Southwest Airlines Co. Consolidated Statement of Comprehensive Income (Loss) (in millions) 2018 Year ended December 31, 2020 2019 (3,074) $ 2,300 $ (53) 2,465 4 (26) (25) (25) 6 NET INCOME (LOSS) Unrealized gain (loss) on fuel derivative instruments, net of deferred taxes of $2,($16), and ($7) Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of ($8), ($8), and $1 Unrealized gain (loss) on defined benefit plan items, net of deferred taxes of ($15), ($9), and $15 Other, net of deferred taxes of $7, $8, and ($2) OTHER COMPREHENSIVE INCOME (LOSS) COMPREHENSIVE INCOME (LOSS) (48) (29) 52 25 26 (6) 26 (44) $ (3,118) $ (81) $ 2,219 $ 2,491 See accompanying notes. Southwest Airlines Co. Consolidated Statement of Stockholders' Equity (in millions, except per share amounts) Year ended December 31, 2020, 2019, and 2018 Accumulated Capital in other Common excess of Retained comprehensive Treasury Stock par value earnings income (loss) stock Total $ 808 $ 1,451 $ 13,832 $ 12 $ (6,462) $ 9,641 18 (18) ) 808 $ 1,451 $ 13,850 $ (6) $ (6,462) S (2,000) 9,641 (2.000) 13 10 23 46 46 (348) (348) 2,465 1,510 $ 15,967 $ 26 2,491 s 808 $ 20 $ (8,452) $ 9,853 55 55 Balance at December 31, 2017 (as reported) Cumulative effect of adopting Accounting Standards Update No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Balance after adjustment for the new accounting standard Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $0.605 per share Comprehensive income Balance at December 31, 2018 (as reported) () Cumulative effect of adopting Accounting Standards Update No. 2016-02, Leases, codified in Accounting Standards Codification 842 (See Note 3 to the Consolidated Financial Statements for additional information) Balance after adjustment for the new accounting standard Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $0.700 per share Comprehensive income Balance at December 31, 2019 Repurchase of common stock Issuance of common stock, net of issuance costs Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $0.180 per share Stock warrants Equity feature of convertible notes, net of issuance costs Comprehensive loss Balance at December 31, 2020 $ 808 $ 1,510 $ 16,022 $ 9,908 20 $ (8,452) $ (2,000) (2.000) 16 11 27 55 55 (377) 2,300 1,581 $ 17,945 $ (377) 2.219 (81) 808 $ 9,832 (61) $ (10,441) S (451) (451) 80 2,144 2.224 17 17 34 17 (94) 17 (94) 40 40 392 (3,074) 4,191 $ 14,777 $ (44) (105) $ (10,875) S 392 (3,118) 8,876 S 888 $ See accompanying notes. 95