Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

v2.4.1.9
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
During the years ended December 31, 2014, 2013 and 2012, the Company provided less than $0.1 million, $0.1 million and less than $0.1 million, respectively, of aviation services to SEACOR under flight charter arrangements. During the years ended December 31, 2014, 2013 and 2012, the Company provided $0.3 million, $0.1 million and $0.1 million, respectively, of services to Diamond Offshore Drilling, Inc., a contract oil and gas driller of which Era Group’s Chairman of the Board is a director.
Prior to the Spin-off, as part of a consolidated group, certain costs and expenses of the Company were borne by SEACOR and charged to the Company. These costs and expenses were included in both operating expenses and administrative and general expenses in the consolidated statements of operations through January 31, 2013. In conjunction with the Spin-off, the Company entered into an Amended and Restated Transition Services Agreement with SEACOR. Subsequent to January 31, 2013, these costs are classified in administrative and general expenses in the consolidated statements of operations and are summarized as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands):
 
 
2014
 
2013
 
2012
Payroll costs for SEACOR personnel assigned to the Company and participation in SEACOR employee benefit plans, defined contribution plan and share award plans
 
$
—

 
$
5

 
$
8,159

Shared services allocation for administrative support
 
—

 
299

 
2,937

Shared services under the Amended and Restated Transition Services Agreement
 
3,048

 
3,063

 
—

 
 
$
3,048

 
$
3,367

 
$
11,096


•
Actual payroll costs of SEACOR personnel assigned to the Company were charged to the Company.
•
Prior to 2013, SEACOR maintained self-insured health benefit plans for participating employees, including those of the Company, and charged the Company for its share of total plan costs incurred based on the percentage of its participating employees.
•
Prior to 2013, SEACOR provided a defined contribution plan for participating employees, including those of the Company, and charged the Company for its share of employer matching contributions based on 50% of the participating employees’ first 6% of wages contributed to the plan.
•
SEACOR also provides certain administrative support services to the Company under a shared services arrangement, including payroll processing, information systems support, cash disbursement support, cash receipt processing, and treasury management.
SEACOR incurred various corporate costs in connection with providing certain corporate services, including, but not limited to, executive oversight, risk management, legal, accounting and tax, and charges quarterly management fees to its operating segments in order to fund its corporate overhead to cover such costs. Total management fees charged by SEACOR to its operating segments include actual corporate costs incurred plus a mark-up and are generally allocated within the consolidated group using income-based performance metrics reported by an operating segment in relation to SEACOR’s other operating segments. On December 30, 2011, the Company and SEACOR entered into an agreement for SEACOR to provide these services at a fixed rate of $2.0 million per annum beginning January 1, 2012. Costs the Company incurred for management fees from SEACOR are reported as SEACOR management fees in the Company’s consolidated statements of operations.