XML 119 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related-Party Transactions
 12 Months Ended
Dec. 31, 2012
Related-Party Transactions

12. Related-Party Transactions

Transactions with Loews. We are party to a services agreement with Loews, or the Services Agreement, pursuant to which Loews performs certain administrative and technical services on our behalf. Such services include personnel, internal auditing, accounting, and cash management services, in addition to advice and assistance with respect to preparation of tax returns and obtaining insurance. Under the Services Agreement, we are required to reimburse Loews for (i) allocated personnel costs (such as salaries, employee benefits and payroll taxes) of the Loews personnel actually providing such services and (ii) all out-of-pocket expenses related to the provision of such services. The Services Agreement may be terminated at our option upon 30 days’ notice to Loews and at the option of Loews upon six months’ notice to us. In addition, we have agreed to indemnify Loews for all claims and damages arising from the provision of services by Loews under the Services Agreement unless due to the gross negligence or willful misconduct of Loews. We were charged $0.8 million, $1.1 million and $1.3 million by Loews for these support functions during the years ended December 31, 2012, 2011 and 2010, respectively.

Transactions with Other Related Parties. We hire marine vessels and helicopter transportation services at the prevailing market rate from subsidiaries of SEACOR Holdings Inc. The Executive Chairman of the Board of Directors of SEACOR Holdings Inc. is also a member of our Board of Directors. For the years ended December 31, 2012, 2011 and 2010, we paid $0.1 million, $0.1 million and $3.1 million, respectively, for the hire of such vessels and such services.

During the years ended December 31, 2012, 2011 and 2010 we made payments of $1.0 million, $1.2 million and $1.0 million, respectively, to Ernst & Young LLP for tax and other consulting services. The wife of our President and Chief Executive Officer is an audit partner at this firm.