Delta Airlines 2014 Annual Report Download - page 92

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
amount withheld as of December 31, 2014 and 2013 .
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 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.
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