Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Commitments and Contingencies

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Note 11 - Commitments and Contingencies
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
11.
  
COMMITMENTS AND CONTINGENCIES
 
As of
September 30, 2018,
the Company’s unfunded capital commitments were
$34.5
million for
two
fast support vessels,
three
supply vessels,
two
wind farm utility vessels and a conversion of
one
supply vessel to standby safety vessel.  Of the amount of unfunded capital commitments,
$2.7
million is payable during the remainder of
2018,
$17.3
million is payable during
2019
and 
$14.5
million is payable during
2020.
  The Company has indefinitely deferred an additional
$20.8
million of orders with respect to
two
fast support vessels for which the Company had previously reported unfunded capital commitments. The delivery dates and payment of certain costs (originally scheduled for payment in
2018,
2019
and
2020
) for such vessels are uncertain as the Company, at its option,
may
defer their construction for an indefinite period of time.  The Company's remaining commitment related to capital commitments for SEACOSCO is approximately
$5.3
million.
 
As of
September 30, 2018,
the
Company has guaranteed certain performance contracts of
one
of its subsidiaries by setting aside
£0.9
million from its available borrowing under an unsecured line of credit.  If the contract were
not
fulfilled, the line of credit would be drawn to fund the guarantee.
 
As of
September 30, 2018,
SEA
COR Holdings has guaranteed
$46.1
million on behalf of the Company for various obligations including: letter of credit obligations, performance obligations under sale-leaseback arrangements and invoiced amounts for funding deficits under the MNOPF. Pursuant to a Distribution Agreement with SEACOR Holdings, SEACOR Holdings charges the Company a fee of
0.5%
on outstanding guaranteed amounts, which declines as the obligations are settled by the Company.
 
In the normal course of its business, the Company becomes involved in various other litigation matters including, among other things, claims by
third
parties for alleged property damages and personal injuries. Management has used estimates in determining the Company’s potential exposure to these matters and has recorded reserves in its financial statements related thereto where appropriate. It is possible that a change in the Company’s estimates of that exposure could occur, but the Company does
not
expect such changes in estimated costs would have a material effect on the Company’s consolidated financial position, results of operations or cash flows.