Components Of Net Periodic Benefit Cost

6 Months Ended

Jun. 30, 2011

Components Of Net Periodic Benefit Cost

Components Of Net Periodic Benefit Cost

Note 2 – Components of Net Periodic Benefit Cost

Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees and a separate unfunded supplemental retirement plan ("SERP") which is limited to officers. Southwest also provides postretirement benefits other than pensions ("PBOP") to its qualified retirees for health care, dental, and life insurance.

		0000		0000		0000		0000		0000		0000
	Qualified Retirement Plan
	Period Ended June 30,
	Three Months				Six Months				Twelve Months
	2011		2010		2011		2010		2011		2010
(Thousands of dollars)
Service cost	$	4,431	$	4,233	$	8,862	$	8,466	$	17,328	$	16,161
Interest cost		9,319		8,903		18,638		17,807		36,445		35,071
Expected return on plan assets		(10,028)		(9,134)		(20,057)		(18,269)		(38,326)		(35,879)
Amortization of prior service costs (credits)		-		-		-		-		-		(1)
Amortization of net loss		3,587		2,619		7,174		5,239		12,413		7,365
Net periodic benefit cost	$	7,309	$	6,621	$	14,617	$	13,243	$	27,860	$	22,717
	SERP
	Period Ended June 30,
	Three Months				Six Months				Twelve Months
	2011		2010		2011		2010		2011		2010
(Thousands of dollars)
Service cost	$	54	$	93	$	109	$	186	$	295	$	283
Interest cost		442		511		883		1,022		1,906		2,055
Amortization of net loss		158		289		315		578		892		1,033
Net periodic benefit cost	$	654	$	893	$	1,307	$	1,786	$	3,093	$	3,371
	PBOP
	Period Ended June 30,
	Three Months				Six Months				Twelve Months
	2011		2010		2011		2010		2011		2010
(Thousands of dollars)
Service cost	$	214	$	214	$	429	$	428	$	857	$	793
Interest cost		658		623		1,316		1,246		2,561		2,431
Expected return on plan assets		(595)		(523)		(1,190)		(1,046)		(2,237)		(1,848)
Amortization of transition obligation		217		217		433		434		866		867
Amortization of net loss		148		122		295		244		540		461
Net periodic benefit cost	$	642	$	653	$	1,283	$	1,306	$	2,587	$	2,704