Related Party Transactions

12 Months Ended

Jan. 31, 2016

Related Party Transactions

Related Party Transactions

5. RELATED PARTY TRANSACTIONS

The consolidated and combined statements of earnings and comprehensive income for the two years ended December 31, 2014 include an allocation of general corporate expenses from B/E Aerospace. These costs were allocated to the Company on a systematic and reasonable basis utilizing a direct usage basis when identifiable, with the remainder allocated on the basis of costs incurred, headcount or other measures.

Allocations for general corporate expenses, including management costs and corporate support services provided to the Company, totaled $31.7 and $33.6 for fiscal year 2014 and 2013, respectively. These amounts include costs for functions including executive management, finance, legal, information technology, human resources, employee benefits administration, treasury, risk management, procurement and other shared services.

In connection with the Spin‑off, we have created some of the functions that were previously provided to us through corporate allocations from B/E Aerospace in‑house. In addition, we have entered into certain agreements with B/E Aerospace relating to transition services and IT services for a transitional period of approximately 24 months following the distribution. In addition, we entered into an employee matters agreement and a tax sharing and indemnification agreement with B/E Aerospace in connection with the Spin‑off. This transitional support will enable KLX Inc. to establish its stand‑alone processes for various activities that were previously provided by B/E Aerospace and does not constitute significant continuing support of KLX Inc.’s operations. Expenses incurred under those agreements totaled $9.6 for the year ended January 31, 2016.

Sales to B/E Aerospace for the years ended January 31, 2016,  December 31, 2014 and 2013 and the one month ended January 31, 2015 were $19.0,  $16.2,$13.6and $1.5,  respectively.