SkyWest Airlines 2010 Annual Report Download - page 94

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2010
(6) Commitments and Contingencies (Continued)
Actions in connection with the disclosures contemplated by the MOU. In exchange, the parties to the
MOU have agreed to use their best efforts to draft and execute a definitive stipulation of settlement
that includes a plaintiff class consisting of all record and beneficial holders of ExpressJet Holdings
stock, other than defendants in the Consolidated Texas State Action and any firm, trust, corporation or
other entity controlled by any such defendant, during the period beginning on and including
December 2, 2009, through and including the date of the consummation of the ExpressJet Merger. The
court has scheduled a hearing for April 14, 2011 to consider whether the settlement should be
approved. If approved by the 189th District Court, the settlement will result in the dismissal with
prejudice of the Consolidated Texas State Action and release by the plaintiff class of all claims under
federal and state law that were or could have been asserted in the Actions or which arise out of or
relate to the transactions contemplated by the ExpressJet Merger. The MOU further provides that, in
the event the Consolidated Texas State Action is dismissed in accordance with the settlement
stipulation, the parties to the MOU will use their best efforts to obtain the dismissal with prejudice of
the Texas Federal Action. The settlement of the Consolidated Texas State Actions is subject to
numerous conditions set forth in the MOU and to be contained in any stipulation of settlement,
including the completion of the ExpressJet Merger.
Concentration Risk and Significant Customers
The Company requires no collateral from its major partners or customers but monitors the
financial condition of its major partners. The Company maintains an allowance for doubtful accounts
receivable based upon expected collectability of all accounts receivable. The Company’s allowance for
doubtful accounts totaled $47,000 as of December 31, 2010 and 2009. For the years ended
December 31, 2010, 2009 and 2008, the Company’s contractual relationships with Delta, United and
Continental combined accounted for approximately 94.7%, 97.3% and 94.1%, respectively of the
Company’s total revenues.
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