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SUBSEQUENT EVENTS | 6 Months Ended
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Jun. 30, 2015
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to June 30, 2015, the Company executed an amended co-branded credit card agreement (“Agreement”) with Chase Bank USA, N.A. (“Chase”), through which the Company sells loyalty points and other items to Chase. The Company's Rapid Rewards program members are able to accrue loyalty points based on purchases using the Chase co-branded Southwest Visa credit card. The Agreement materially modifies the previously existing agreement between Chase and the Company. Consideration received as part of this Agreement is subject to Accounting Standards Update 2009-13, "Multiple-Deliverable Revenue Arrangements - a consensus of the FASB Emerging Issues Task Force" (“ASU 2009-13”). Under the Agreement and ASU 2009-13, the Company has identified separate deliverables in the arrangement related to air transportation and various marketing elements. Under ASU 2009-13, these deliverables will be accounted for separately and allocation of consideration from the Agreement will be determined based on the relative selling price of each deliverable. Prior to the adoption of ASU 2009-13, the Company determined the selling price of air transportation and allocated any remaining consideration under the contract on a residual basis. The application of ASU 2009-13 to the Agreement decreases the relative value of the air transportation deliverables that the Company records as deferred revenue (and ultimately Passenger revenues when redeemed awards are flown) and increases the relative value of the marketing-related deliverables recorded in Other revenues at the time these marketing-related deliverables are provided. This is principally due to the previous application of the residual method, which effectively applied any discount associated with the agreement to the marketing deliverables. Under the transition provisions of ASU 2009-13, the existing deferred revenue balance, classified within Air traffic liability, will be reduced to reflect the estimated selling price of the undelivered elements. As a result, the Company expects to record a one-time non-cash increase to revenue in the third quarter of 2015 of approximately $150 million. The Agreement and resulting application of ASU 2009-13 are expected to result in an acceleration of the timing of Operating revenues on a prospective basis relative to the Company's previous application of the residual method due to assigning a higher value to the non-transportation elements of the Agreement than under the residual method; however, the precise revenue impact will not be determinable until the volume of future transactions for the period is known.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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