Related-Party Transactions

12 Months Ended

Dec. 31, 2014

Related-Party Transactions

Related-Party Transactions

Note 18 Related-Party Transactions

       Nabors and certain current and former key employees, including Mr. Petrello, entered into split-dollar life insurance agreements, pursuant to which we pay a portion of the premiums under life insurance policies with respect to these individuals and, in some instances, members of their families. These agreements provide that we are reimbursed for the premium payments upon the occurrence of specified events, including the death of an insured individual. Any recovery of premiums paid by Nabors could be limited to the cash surrender value of the policies under certain circumstances. As such, the values of these policies are recorded at their respective cash surrender values in our consolidated balance sheets. We have made premium payments to date totaling $6.6 million related to these policies. The cash surrender value of these policies of approximately $6.0 million and $5.9 million is included in other long-term assets in our consolidated balance sheets as of December 31, 2014 and 2013, respectively.

       Under the Sarbanes-Oxley Act of 2002, the payment of premiums by Nabors under the agreements could be deemed to be prohibited loans by us to these individuals. Consequently, we have paid no premiums related to our agreements with these individuals since the adoption of the Sarbanes-Oxley Act.

       In the ordinary course of business, we enter into various rig leases, rig transportation and related oilfield services agreements with our unconsolidated affiliates at market prices. Revenues from business transactions with these affiliated entities totaled $227.5 million, $190.6 million and $164.0 million for 2014, 2013 and 2012, respectively. Expenses from business transactions with these affiliated entities totaled $0.1 million and $0.1 million for 2013 and 2012, respectively. Additionally, we had accounts receivable from these affiliated entities of $80.7 million and $87.1 million as of December 31, 2014 and 2013, respectively. We had accounts payable to these affiliated entities of $40.0 million and $6.4 million as of December 31, 2014 and 2013, respectively, and long-term payables with these affiliated entities of $0.8 million as of each of those dates, which are included in other long-term liabilities.

       In the ordinary course of business, we also provide drilling, well-servicing and other services to LINN Operating, Inc. ("LINN"), a company of which Mr. Linn, an independent member of our Board, is a Director. Revenues from business transactions with LINN totaled $1.1 million and $3.2 million during 2014 and 2013, respectively. We had accounts receivable from LINN of $0.2 million as of December 31, 2013.

       In addition, Mr. Crane, an independent director, is Chairman and Chief Executive Officer of Crane Capital Group Inc. ("CCG"), an investment company that indirectly owns a majority interest in several operating companies, some of which have provided services to us in the ordinary course of business, including international logistics and electricity. During 2014 and 2013, we made payments for these services of $89.1 million and $39.4 million, respectively. We had accounts payable to these CCG-related companies of $3.9 million and $1.4 million as of December 31, 2014 and 2013, respectively.