SkyWest Airlines 2013 Annual Report Download - page 90
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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2013
(5) Commitments and Contingencies (Continued)
breach of contract based on mutual departure, breach of contract based on voluntary payment, and
breach of the duty of good faith and fair dealing. Delta moved for partial dismissal of the State Court
Complaint, which motion was denied in its entirety.
Discovery in the State Court lawsuit has concluded. On July 19, 2013, the parties filed cross
motions for partial summary judgment. SkyWest Airlines and ExpressJet filed a motion for partial
summary judgment on their claim for voluntary payment. Delta filed a motion for partial summary
judgment on all of SkyWest’s and ExpressJet’s claims, for partial summary judgment on the issue of
damages, and for spoliation sanctions. Briefing of the cross motions is complete, but no hearing has
been scheduled by the Court. SkyWest and ExpressJet intend to oppose Delta’s motions and continue
to vigorously pursue their claims set forth in the State Court Complaint.
As of December 31, 2013, the Company’s estimated range of reasonably possible loss related to
the dispute was $0 to $25.8 million.
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 $94,000 and $94,000 as of December 31, 2013 and 2012, respectively. For the
years ended December 31, 2013, 2012 and 2011, the Company’s contractual relationships with Delta
and United combined accounted for approximately 91.6%, 94.8% and 97.6%, respectively of the
Company’s total revenues.
Employees Under Collective Bargaining Agreements
As of December 31, 2013, the Company had 18,358 full-time equivalent employees. Approximately
49% of these employees were represented by unions, including the following employee groups.
Notwithstanding the completion of the ExpressJet Combination, ExpressJet’s employee groups continue
to be represented by those unions who provided representation prior to the ExpressJet Combination.
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