We uphold our strong financial position by managing in the good times to be prepared for the bad times.
Southwest Airlines maintained a healthy financial position in 2010, ending the year with approximately $3.5 billion in unrestricted cash and short-term investments; a $600 million fully available revolving line of credit; unencumbered assets valued at more than $6 billion; leverage of approximately 40 percent, including aircraft lease obligations; and an investment-grade credit rating. A continued improvement in air travel demand throughout the year resulted in cash flow from operations of approximately $1.6 billion. During 2010, we repaid $155 million in debt and capital lease obligations and $44 million from credit line borrowings. We also carefully managed capital spending and kept our capital expenditures to under $500 million.
In 2011, we expect our capital spending to be in the $800 million to $900 million range, and we have approximately $500 million in debt maturities. We plan to fund these obligations and the acquisition of AirTran Airways with cash on hand and we currently do not have any near-term borrowing needs.
Our ability to uphold our strong financial position allows us to remain well-prepared for the many threats that face our challenging industry, including volatile energy prices, recession, and brutal competition. We continue to live by the same mantra from our first four decades—manage in the good times to be prepared for the bad times. Our healthy cash position and modest debt also allows us to remain well-prepared for opportunities.