Commitments And Contingencies

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

(13)Commitments and Contingencies

The Company’s wholly owned subsidiary, Hallin Marine, is the lessee of a dynamically positioned subsea vessel under a capital lease expiring in 2019 with a two year renewal option.  Hallin Marine owns a 5% equity interest in the entity that owns this leased asset. The lessor’s debt is non-recourse to the Company.  The amount of the asset and liability under this capital lease is recorded at the present value of the lease payments.  The vessel’s gross asset value under the capital lease was approximately $37.6 million at inception and accumulated depreciation through December 31, 2012 and 2011 was approximately $12.2 million and $8.0 million, respectively.  As ofDecember 31, 2012 and 2011, the Company had approximately $25.6 million and $29.5 million, respectively, included in other long-term liabilities, and approximately $3.9 million and $3.6 million, respectively, included in accounts payable related to the obligations under this capital lease.  The future minimum lease payments under this capital lease are approximately $3.9 million, $4.2 million,  $4.6 million, $5.0 million and $5.4 million for the years ending December 31, 2013, 2014, 2015, 2016 and 2017, respectively, exclusive of interest at an annual rate of 8.5%.  For the years ended December 31, 2012, 2011 and 2010, the Company recorded interest expense of approximately $2.7 million, $3.0 million, and $3.0 million respectively, in connection with this capital lease.

The Company leases many of its office, service and assembly facilities under operating leases.  In addition, the Company also leases certain assets used in providing services under operating leases. The leases expire at various dates over an extended period of time.  Total rent expense was approximately $26.3 million, $18.3 million and $15.1 million in the years ended December 31, 2012, 2011 and 2010, respectively.  Future minimum lease payments under non-cancelable leases for the five years ending December 31, 2013 through 2017 and thereafter are as follows:  $61.9 million, $41.1 million, $26.0 million, $17.8 million, $10.9 million and $21.3 million, respectively.

Due to the nature of the Company’s business, the Company is involved, from time to time, in routine litigation or subject to disputes or claims regarding its business activities. Legal costs related to these matters are expensed as incurred.  In management’s opinion, none of the pending litigation, disputes or claims is expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity.