Delta Airlines 2015 Annual Report Download - page 92

TableofContents
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.
EmployeesUnderCollectiveBargainingAgreements
AtDecember31,2015,wehadapproximately83,000full-timeequivalentemployees.Approximately18%oftheseemployeeswererepresentedbyunions.
Thefollowingtableshowsourdomesticairlineemployeegroupsthatarerepresentedbyunions.
EmployeeGroup
ApproximateNumberof
ActiveEmployees
Represented Union
DateonwhichCollective
BargainingAgreementBecomes
Amendable
DeltaPilots 12,080 ALPA December31,2015(1)
DeltaFlightSuperintendents(Dispatchers) 400 PAFCA March31,2018
EndeavorAirPilots 1,360 ALPA January1,2020
EndeavorAirFlightAttendants 895 AFA December31,2018
EndeavorAirDispatchers 50 DISTWU December31,2018
(1) WeareindiscussionswithrepresentativesoftheDeltaPilotsregardingtermsofanamendedcollectivebargainingagreement.
Inaddition,209refineryemployeesofMonroearerepresentedbytheUnitedSteelWorkersunderanagreementthatexpiresonFebruary28,2019.This
agreementisgovernedbytheNationalLaborRelationsAct,whichgenerallyallowseitherpartytoengageinselfhelpupontheexpirationoftheagreement.
Other
Wehavecertaincontractsforgoodsandservicesthatrequireustopayapenalty,acquireinventoryspecifictousorpurchasecontract-specificequipment,as
definedbyeachrespectivecontract,ifweterminatethecontractwithoutcausepriortoitsexpirationdate.Becausetheseobligationsarecontingentonour
terminationofthecontractwithoutcausepriortoitsexpirationdate,noobligationwouldexistunlesssuchaterminationoccurs.
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