SkyWest Airlines 2014 Annual Report Download - page 93

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(5) Commitments and Contingencies (Continued)
Legal Matters
The Company is subject to certain legal actions which it considers routine to its business activities.
As of December 31, 2014, management believed, after consultation with legal counsel, that the ultimate
outcome of such legal matters was not likely to have a material adverse effect on the Company’s
financial position, liquidity or results of operations.
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. Under the majority of the Company’s code-share agreements,
the Company receives weekly payments from its major code share partners that approximates a
significant percentage of the compensation earned for such period. Additionally, the Company provides
certain customer service functions at multiple airports for various airlines and 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 $326,600 and $94,000 as of
December 31, 2014 and 2013, respectively. For the years ended December 31, 2014, 2013 and 2012, the
Company’s contractual relationships with Delta and United combined accounted for approximately
88.7%, 91.6% and 94.8%, respectively of the Company’s total revenues.
Employees Under Collective Bargaining Agreements
As of December 31, 2014, the Company had approximately 18,500 full-time equivalent employees.
Approximately 45.1% 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.
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 ........... 1,631 Air Line Pilots Association Amendable
International
Atlantic Southeast Flight Attendants . . . 1,132 International Association of Machinists Amendable
and Aerospace Workers
Atlantic Southeast Flight Controllers . . 53 Transport Workers Union of America Amendable
Atlantic Southeast Mechanics ....... 554 International Brotherhood of Teamsters Amendable
Atlantic Southeast Stock Clerks ...... 60 International Brotherhood of Teamsters Amendable
ExpressJet Delaware Pilots ......... 2,577 Air Line Pilots Association Amendable
International
ExpressJet Delaware Flight Attendants . 1,210 International Association of Machinists Amendable
and Aerospace Workers
ExpressJet Delaware Mechanics ...... 942 International Brotherhood of Teamsters Amendable
ExpressJet Delaware Dispatchers ..... 81 Transport Workers Union of America Amendable
ExpressJet Delaware Stock Clerks . . . . 97 International Brotherhood of Teamsters Amendable
88