UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Seccurities Exchange Act of 1934
Date
of
Report (Date of Earliest Event Reported): August
11, 2006
Southwest
Airlines Co.
__________________________________________
(Exact
name of registrant as specified in its charter)
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Texas
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1-7259
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74-1563240
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_____________________
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_____________
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______________
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(State
or other jurisdiction
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(Commission
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(I.R.S.
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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P.
O. Box 36611, Dallas, Texas
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75235-1611
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_________________________________
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___________
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (214) 792-4000
Not
Applicable
______________________________________________
Former
name or former address, if changed since last report
Check
the
appropriate box below if the Form 8-K filing is intended to
simultaneously
satisfy the filing obligation of the registrant under any of
the
following provisions:
[
] Written
communications pursuant to Rule 425 under the Securities Act
(17
CFR
230.425)
[
] Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17
CFR
240.14a-12)
[
] Pre-commencement
communications pursuant to Rule 14d-2(b) under the
Exchange
Act (17 CFR 240.14d-2(b))
[
] Pre-commencement
communications pursuant to Rule 13e-4(c) under the
Exchange
Act (17 CFR 240.13e-4(c))
Item
8.01 Other
Events.
As
disclosed in its Quarterly Report on Form 10-Q for the quarter ended March
31,
2006, Southwest Airlines Co. (“the Company”) adopted the Financial Accounting
Standards Board (FASB) SFAS 123R, “Share-Based Payment” (SFAS 123R) effective
January 1, 2006 which requires that all stock-based compensation, including
grants of Employee stock options, be accounted for using a fair-value-based
method. The Company elected to adopt SFAS 123R using the modified retrospective
method under which prior years’ results have been revised to give
effect to the value of options granted in fiscal years beginning on or after
January 1, 1995.
In
addition, in first quarter 2006, the Company began transitioning the maintenance
program for performing planned airframe maintenance on its fleet of 737-300
and
737-500 aircraft. Due to the change in the nature of the maintenance activities
performed, the Company changed its method of accounting for scheduled airframe
and inspection repairs for 737-300 and 737-500 aircraft from the deferral method
to the direct expense method, effective January 1, 2006. Under the deferral
method, scheduled airframe and inspection repairs were capitalized and amortized
as a component of Maintenance, materials and repairs expense in the Consolidated
Statement of Income; under the direct expense method, scheduled airframe and
inspection repairs are expensed as incurred. The Company recorded the change
in
accounting in accordance with Statement of Financial Accounting Standards No.
154, Accounting Changes and Error Corrections (SFAS 154), which was effective
for calendar year companies on January 1, 2006. SFAS 154 requires that all
elective accounting changes be made on a retrospective basis.
The
Company is providing this Form 8-K to present only those sections in its Form
10-K filing for the fiscal year ended December 31, 2005, that are conformed
for
the adoption of the accounting changes described above. For reference, the
Company has included the entire text of the affected sections. Other than as
presented here, the sections of the Form 10-K for year ended December 31, 2005
remain as previously filed. This Form 8-K does not purport to provide an update
or a discussion of any other developments at the Company subsequent to the
original Form 10-K filing.
These
financial statements, conformed for the changes, will become the historical
financial statements of Southwest Airlines Co. for currently open and future
filings with the Securities and Exchange Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934,
the
registrant has duly caused this report to be signed on its behalf
by
the
undersigned hereunto duly authorized.
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SOUTHWEST
AIRLINES CO.
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August
11, 2006
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By
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/s/
Laura Wright
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Laura
Wright
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Chief
Financial Officer
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(Principal
Financial and
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Accounting
Officer)
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Exhibit
Index
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Exhibit
No.
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Description
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99.1
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.
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99.2
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Financial
Statements and Supplementary Data.
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99.3
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Selected
Financial Data.
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99.4
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Consent
of Independent Registered Public Accounting Firm.
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99.5
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Condensed
Consolidated Third and Fourth Quarter 2005 Statement of Income (as
adjusted).
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