SkyWest Airlines 2013 Annual Report Download - page 91

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2013
(5) Commitments and Contingencies (Continued)
Accordingly, the following table refers to ExpressJet’s employee groups based upon their union
affiliations prior to the ExpressJet Combination.
Approximate
Number of
Active Employees Status of
Employee Group Represented Representatives Agreement
Atlantic Southeast Pilots ........ 1,800 Air Line Pilots Association International Amendable
Atlantic Southeast Flight Attendants 1,075 International Association of Machinists Amendable
and Aerospace Workers
Atlantic Southeast Flight
Controllers ................ 60 Transport Workers Union of America Amendable
Atlantic Southeast Mechanics ..... 700 International Brotherhood of Teamsters Amendable
Atlantic Southeast Stock Clerks . . . 70 International Brotherhood of Teamsters Amendable
ExpressJet Delaware Pilots ....... 2,900 Air Line Pilots Association International Amendable
ExpressJet Delaware Flight
Attendants ................ 1,200 International Association of Machinists Amendable
and Aerospace Workers
ExpressJet Delaware Mechanics . . . 1,000 International Brotherhood of Teamsters Amendable
ExpressJet Delaware Dispatchers . . 85 Transport Workers Union of America Amendable
ExpressJet Delaware Stock Clerks . . 100 International Brotherhood of Teamsters Amendable
During December 2013, the Airline Pilots Association International (‘‘ALPA’’), which represents the
Atlantic Southeast pilot and ExpressJet Delaware pilot groups, conducted a vote of the two employee
groups, seeking approval of a joint collective bargaining agreement that ExpressJet had negotiated with
ALPA representatives. The two employee groups rejected the joint collective bargaining agreement,
which resulted in the agreements with those employee groups remaining amendable as indicated in the
foregoing table. The decision of those employee groups to reject the joint collective bargaining
agreement will preclude us from realizing some of the savings we had hoped to achieve through the
ExpressJet Combination. ExpressJet intends to resume negotiations with ALPA in an effort to negotiate
an acceptable agreement.
(6) Fair Value Measurements
The Company holds certain assets that are required to be measured at fair value in accordance
with United States GAAP. The Company determined fair value of these assets based on the following
three levels of inputs:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or
other inputs that are observable or can be corroborated by observable
market data for substantially the full term of the assets or liabilities. Some
of the Company’s marketable securities primarily utilize broker quotes in a
non-active market for valuation of these securities.
Level 3—Unobservable inputs that are supported by little or no market activity and
that are significant to the fair value of the assets or liabilities, therefore
requiring an entity to develop its own assumptions.
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