filings.toolsItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
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Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
The Company’s common stock is listed on the New York Stock Exchange ("NYSE") and is traded under the symbol "LUV." The following table shows the high and low prices per share of the Company’s common stock, as reported on the NYSE Composite Tape, and the cash dividends per share declared on the Company’s common stock.
| Period | Dividend | High | Low | |||||||||
| 2017 | ||||||||||||
| 1st Quarter | $ | 0.10000 | $ | 59.68 | $ | 48.75 | ||||||
| 2nd Quarter | 0.12500 | 62.74 | 52.89 | |||||||||
| 3rd Quarter | 0.12500 | 64.39 | 49.76 | |||||||||
| 4th Quarter | 0.12500 | 66.99 | 52.78 | |||||||||
| 2016 | ||||||||||||
| 1st Quarter | $ | 0.07500 | $ | 45.39 | $ | 33.96 | ||||||
| 2nd Quarter | 0.10000 | 48.00 | 36.48 | |||||||||
| 3rd Quarter | 0.10000 | 45.00 | 35.42 | |||||||||
| 4th Quarter | 0.10000 | 51.31 | 36.91 |
The Company currently intends to continue declaring dividends on a quarterly basis for the foreseeable future; however, the Company’s Board of Directors may elect to alter the timing, amount, and payment of dividends on the basis of operational results, financial condition, cash requirements, future prospects, and other factors deemed relevant by the Board. As of February 5, 2018, there were approximately 12,531 holders of record of the Company’s common stock.
Stock Performance Graph
The following Performance Graph and related information shall not be deemed "soliciting material" or "filed" with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934.
The following graph compares the cumulative total shareholder return on the Company’s common stock over the five-year period ended December 31, 2017, with the cumulative total return during such period of the Standard and Poor’s 500 Stock Index and the NYSE ARCA Airline Index. The comparison assumes $100 was invested on December 31, 2012, in the Company’s common stock and in each of the foregoing indices and assumes reinvestment of dividends. The stock performance shown on the graph below represents historical stock performance and is not necessarily indicative of future stock price performance.
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN AMONG SOUTHWEST AIRLINES CO., S&P 500 INDEX, AND NYSE ARCA AIRLINE INDEX
| 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | |||||||||||||||||||
| Southwest Airlines Co. | $ | 100 | $ | 185 | $ | 418 | $ | 428 | $ | 500 | $ | 661 | ||||||||||||
| S&P 500 | $ | 100 | $ | 132 | $ | 150 | $ | 152 | $ | 170 | $ | 206 | ||||||||||||
| NYSE ARCA Airline | $ | 100 | $ | 158 | $ | 237 | $ | 201 | $ | 258 | $ | 274 |
Issuer Repurchases
| Issuer Purchases of Equity Securities (1) | |||||||||||||||
| (a) | (b) | (c) | (d) | ||||||||||||
| Total number of | Maximum dollar | ||||||||||||||
| shares purchased | value of shares that | ||||||||||||||
| Total number | Average | as part of publicly | may yet be purchased | ||||||||||||
| of shares | price paid | announced plans | under the plans | ||||||||||||
| Period | purchased | per share | or programs | or programs | |||||||||||
| October 1, 2017 through October 31, 2017 | 1,206,365 | $ | — | (2) | 1,206,365 | $ | 1,700,000,000 | ||||||||
| November 1, 2017 through November 30, 2017 | 670,000 | $ | — | (3)(4) | 670,000 | $ | 1,410,017,716 | ||||||||
| December 1, 2017 through December 31, 2017 | 4,280,204 | $ | — | (3)(5) | 4,280,204 | $ | 1,350,032,588 | ||||||||
| Total | 6,156,569 | 6,156,569 |
| (1) | On May 17, 2017, the Company’s Board of Directors authorized the repurchase of up to $2.0 billion of the Company’s common stock. Repurchases are made in accordance with applicable securities laws in open market, private, or accelerated repurchase transactions from time to time, depending on market conditions, and may be discontinued at any time. |
| (2) | Under an accelerated share repurchase program entered into by the Company with a third party financial institution in third quarter 2017 (the "Third Quarter 2017 ASR Program"), the Company paid $300 million and received an initial delivery of 4,130,592 shares during August 2017, representing an estimated 75 percent of the shares to be purchased by the Company under the Third Quarter 2017 ASR Program based on a volume-weighted average price of $54.4716 per share, which was the closing price of the Company’s common stock on the New York Stock Exchange during a calculation period between August 1, 2017 and August 24, 2017. Final settlement of the Third Quarter 2017 ASR Program occurred in October 2017 and was determined based generally on a discount to the volume-weighted average price per share of the Company's common stock during a calculation period completed in October 2017. Upon settlement, the third party financial institution delivered 1,206,365 additional shares of the Company’s common stock to the Company. In total, the average purchase price per share for the 5,336,957 shares repurchased under the Third Quarter 2017 ASR Program, upon completion of the Third Quarter 2017 ASR Program in October 2017, was $56.2118. |
| (3) | Under an accelerated share repurchase program entered into by the Company with a third party financial institution in fourth quarter 2017 (the "Fourth Quarter 2017 ASR Program"), the Company paid $250 million in November 2017 and received an initial delivery of 3,323,537 shares during December 2017, representing an estimated 75 percent of the shares to be purchased by the Company under the Fourth Quarter 2017 ASR Program based on a volume-weighted average price of $56.4158 per share of the Company’s common stock on the New York Stock Exchange during a calculation period between November 8, 2017 and December 6, 2017. Final settlement of the Fourth Quarter 2017 ASR Program occurred in January 2018 and was determined based generally on a discount to the volume-weighted average price per share of the Company's common stock during a calculation period completed in January 2018. Upon settlement, the third party financial institution delivered 736,838 additional shares of the Company’s common stock to the Company. In total, the average purchase price per share for the 4,060,375 shares repurchased under the Fourth Quarter 2017 ASR Program, upon completion of the Fourth Quarter 2017 ASR Program in January 2018, was $61.5707. |
| (4) | During the period from November 29, 2017 through November 30, 2017, the Company repurchased 670,000 shares of its common stock on the open market at an average price of $59.6751 per share. |
| (5) | During the period from December 1, 2017 through December 15, 2017, the Company repurchased 956,667 shares of its common stock on the open market at an average price of $62.7022 per share. |
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