Delta Airlines 2013 Annual Report Download - page 86

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Credit Card Processing Agreements
Our VISA/MasterCard and American Express credit card processing agreements provide that no cash reserve ("Reserve") is required, and no
withholding of payment related to receivables collected will occur, except in certain circumstances, including when we do not maintain a
required level of liquidity as outlined in the merchant processing agreements. In circumstances in which the credit card processor can establish a
Reserve or withhold payments, the amount of the Reserve or payments that may be withheld would be equal to the potential liability of the credit
card processor for tickets purchased with VISA/MasterCard or American Express credit cards, as applicable, that had not yet been used for
travel. There was no Reserve or amounts withheld as of December 31, 2013 and 2012 .
Other Contingencies
General Indemnifications
We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the
lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased
premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among
others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to
related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by either their sole or gross
negligence or their willful misconduct.
Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to
indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise
from the use or operation of the aircraft or such other equipment.
We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real
estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover
environmental liabilities, we have certain insurance policies in place as required by applicable environmental laws.
Certain of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic
return to the lenders if that economic return is diminished due to certain changes in law or regulations. In certain of these financing transactions,
we also bear the risk of certain changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes.
We cannot reasonably estimate our potential future payments under the indemnities and related provisions described above because we
cannot predict (1) when and under what circumstances these provisions may be triggered and (2) the amount that would be payable if the
provisions were triggered because the amounts would be based on facts and circumstances existing at such time.
Employees Under Collective Bargaining Agreements
At December 31, 2013 , we had approximately 78,000 full-time equivalent employees, approximately 18% of whom were represented by
unions. The following table shows our domestic airline employee groups that are represented by unions.
(1)
We are in discussions with representatives of the Flight Superintendents.
In addition, 210 refinery employees of Monroe are represented by the United Steel Workers under an agreement that expires on February 26,
2015.
78
Employee Group Approximate Number of Active
Employees Represented Union
Date on which Collective Bargaining
Agreement Becomes Amendable
Delta Pilots
10,700
ALPA
December 31, 2015
Delta Flight Superintendents (Dispatchers)
(1)
370
PAFCA
December 31, 2013
Endeavor Air Pilots
1,820
ALPA
January 1, 2020
Endeavor Air Flight Attendants
990
AFA
December 31, 2018
Endeavor Air Dispatchers
60
DISTWU
December 31, 2018