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Transactions with Affiliates
9 Months Ended
Sep. 29, 2018
Related Party Transactions [Abstract]  
Transactions with Affiliates

(9)

Transactions with Affiliates

CenTra, Inc., an affiliate of the Company, provides administrative support services to Universal in the ordinary course of business, including legal, human resources, tax, and IT infrastructure and related services.  The cost of these services is based on the actual or estimated utilization of the specific service.

Universal also purchases other services from affiliates. Following is a schedule of costs incurred and included in operating expenses for services provided by affiliates for the thirteen weeks and thirty-nine weeks ended September 29, 2018 and September 30, 2017 (in thousands):

 

 

 

Thirteen weeks ended

 

 

Thirty-nine weeks ended

 

 

 

September 29,

2018

 

 

September 30,

2017

 

 

September 29,

2018

 

 

September 30,

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative support services

 

$

615

 

 

$

572

 

 

$

2,346

 

 

$

1,702

 

Truck fuel, tolls and maintenance

 

 

29

 

 

 

645

 

 

 

910

 

 

 

1,912

 

Real estate rent and related costs

 

 

3,418

 

 

 

4,230

 

 

 

10,999

 

 

 

12,947

 

Insurance, bonds and employee benefit plans

 

 

16,394

 

 

 

14,010

 

 

 

39,907

 

 

 

43,511

 

Purchased transportation and equipment rent

 

 

92

 

 

 

20

 

 

 

1,164

 

 

 

35

 

Total

 

$

20,548

 

 

$

19,477

 

 

$

55,326

 

 

$

60,107

 

 

We pay CenTra the direct variable cost of maintenance, fueling and other operational support costs for services delivered at our affiliate’s trucking terminals that are geographically remote from our own facilities. Such costs are billed when incurred, paid on a routine basis, and reflect actual labor utilization, repair parts costs or quantities of fuel purchased. In connection with our transportation services, we also pay tolls and other fees for international bridge crossings to certain related entities that are under common control with CenTra.

A significant number of our operating locations are located in facilities leased from affiliates.  At 34 facilities, occupancy is based on either month-to-month or contractual, multi-year lease arrangements which are billed and paid monthly.  Leasing properties provided by an affiliate that owns a substantial commercial property portfolio affords us significant operating flexibility; however, we are not limited to such arrangements.  

We purchase workers’ compensation, property and casualty, cargo, warehousing and other general liability insurance, as well as obtain surety bonds from an insurance company controlled by our majority shareholders.  Our employee health care benefits and 401(k) programs are also provided by this affiliate.

Other services from affiliates, including contracted transportation services, are delivered to us on a per-transaction-basis or pursuant to separate contractual arrangements provided in the ordinary course of business.  At September 29, 2018 and December 31, 2017, amounts due to affiliates were $15.2 million and $12.0 million, respectively.  In our Consolidated Balance Sheets, we record our insured claims liability and the related recovery from an affiliate insurance provider in insurance and claims, and other receivables.  At September 29, 2018 and December 31, 2017, there were $8.9 million and $10.1 million, respectively, included in each of these accounts for insured claims.  

We made purchases of used equipment from an affiliate during the thirty-nine weeks ended September 29, 2018 totaling $8,300, and purchased wheels and tires from an affiliate for new trailering equipment totaling $23,000 during the same period. During the thirty-nine weeks ended September 30, 2017, we purchased used equipment from an affiliate totaling $1.8 million, and purchased wheels and tires from an affiliate for new trailering equipment totaling $1.8 million during the same period.

(9)

Transactions with Affiliates – continued

Services provided by Universal to Affiliates

We periodically assist our affiliates by providing selected transportation and logistics services in connection with their specific customer contracts or purchase orders.  Following is a schedule of services provided to affiliates for the thirteen weeks and thirty-nine weeks ended September 29, 2018 and September 30, 2017 (in thousands):

 

 

 

Thirteen weeks ended

 

 

Thirty-nine weeks ended

 

 

 

September 29,

2018

 

 

September 30,

2017

 

 

September 29,

2018

 

 

September 30,

2017

 

Purchased transportation and equipment rent

 

$

342

 

 

$

187

 

 

$

679

 

 

$

737

 

Total

 

$

342

 

 

$

187

 

 

$

679

 

 

$

737

 

At September 29, 2018 and December 31, 2017, amounts due from affiliates were $3.2 million and $2.7 million, respectively.