DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ship Finance International LTD | |
Entity Central Index Key | 1289877 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $1,097,768,649 | |
Entity Common Stock, Shares Outstanding | 93,404,000 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Document Type | 20-F | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues | |||
Direct financing lease interest income - related parties | $45,363 | $55,385 | $59,214 |
Direct financing and sales-type lease interest income - other | 0 | 4,231 | 6,501 |
Finance lease service revenues - related parties | 46,488 | 52,390 | 64,766 |
Finance lease service revenues - other | 0 | 1,846 | 0 |
Profit sharing revenues - related parties | 33,756 | 770 | 52,176 |
Time charter revenues - related parties | 10,039 | 5,647 | 0 |
Time charter revenues - other | 83,013 | 77,778 | 60,258 |
Bareboat charter revenues - related parties | 16,364 | 18,324 | 20,701 |
Bareboat charter revenues - other | 53,407 | 42,705 | 54,212 |
Voyage charter revenues - other | 34,608 | 9,724 | 0 |
Other operating income | 4,449 | 2,060 | 1,864 |
Total operating revenues | 327,487 | 270,860 | 319,692 |
Gain on sale of assets and termination of charters, net | 23,931 | 18,025 | 47,386 |
Operating expenses | |||
Vessel operating expenses - related parties | 49,170 | 54,916 | 66,455 |
Vessel operating expenses - other | 70,300 | 50,618 | 28,459 |
Depreciation | 67,393 | 58,436 | 55,602 |
Asset Impairment Charges | 11,800 | 0 | 0 |
Administrative expenses - related parties | 965 | 439 | 471 |
Administrative expenses - other | 6,644 | 7,110 | 8,471 |
Total operating expenses | 206,272 | 171,519 | 159,458 |
Net operating income | 145,146 | 117,366 | 207,620 |
Non-operating income / (expense) | |||
Interest income – related parties, associated companies | 24,464 | 19,575 | 19,575 |
Interest income – related parties, other | 4,029 | 482 | 0 |
Interest income - other | 11,958 | 10,023 | 7,599 |
Interest expense - other | -86,081 | -87,225 | -94,851 |
Loss on purchase of bonds | -21 | -1,218 | -122 |
Gain on sale of investment in associated company | 6,055 | 0 | 0 |
Long-term investment impairment charge | 0 | 0 | -3,353 |
Other financial items, net | -16,232 | 2,003 | 5,876 |
Net income before equity in earnings of associated companies | 89,318 | 61,006 | 142,344 |
Equity in earnings of associated companies | 33,497 | 28,200 | 43,492 |
Net income | $122,815 | $89,206 | $185,836 |
Per share information: | |||
Basic earnings per share (in dollars per share) | $1.32 | $1 | $2.31 |
Weighted average number of shares outstanding, basic | 93,331 | 89,508 | 80,594 |
Diluted earnings per share (in dollars per share) | $1.24 | $0.99 | $2.22 |
Weighted average number of shares outstanding, diluted | 116,747 | 95,424 | 85,868 |
Cash dividend per share declared and paid (in dollars per share) | $1.63 | $1.17 | $1.86 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $122,815 | $89,206 | $185,836 |
Fair value adjustments to hedging financial instruments | -351 | 41,827 | -18,407 |
Fair value adjustments to hedging financial instruments in associated companies | -5 | 2,897 | 19,561 |
Reclassification into net income of previous fair value adjustments to hedging financial instruments | -4,504 | 2,102 | 27 |
Fair value adjustments to available for sale securities | -8,355 | 699 | 896 |
Other items of comprehensive (loss)/income | -179 | -58 | 67 |
Other comprehensive income, net of tax | -13,394 | 47,467 | 2,144 |
Comprehensive income | $109,421 | $136,673 | $187,980 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $50,818 | $58,641 |
Available for sale securities | 73,656 | 76,925 |
Trade accounts receivable | 3,253 | 8,362 |
Due from related parties | 152,491 | 13,249 |
Other receivables | 10,488 | 79,301 |
Inventories | 6,927 | 6,607 |
Prepaid expenses and accrued income | 5,075 | 3,971 |
Investment in direct financing and sales-type leases, current portion | 37,517 | 45,148 |
Total current assets | 340,225 | 292,204 |
Vessels and equipment, net | 1,377,133 | 1,089,616 |
Newbuildings | 87,567 | 126,008 |
Investment in direct financing and sales-type leases, long-term portion | 709,014 | 858,260 |
Investment in associated companies | 53,457 | 40,987 |
Loans to related parties - associated companies, long-term | 346,031 | 530,715 |
Loans to related parties - others, long-term | 79,294 | 48,847 |
Other long-term assets | 8,581 | 1,235 |
Deferred charges | 36,958 | 41,478 |
Financial instruments (long-term): at fair value | 3,294 | 16,633 |
Total assets | 3,041,554 | 3,045,983 |
Current liabilities | ||
Current portion of long-term debt | 182,415 | 389,888 |
Trade accounts payable | 2,432 | 3,502 |
Due to related parties | 1,109 | 13,965 |
Accrued expenses | 18,190 | 13,832 |
Financial instruments (short-term): at fair value | 517 | 5,705 |
Other current liabilities | 9,092 | 5,548 |
Total current liabilities | 213,755 | 432,440 |
Long-term liabilities | ||
Long-term debt | 1,550,044 | 1,346,991 |
Financial instruments (long-term): at fair value | 106,679 | 56,490 |
Other long-term liabilities | 17,584 | 18,129 |
Total liabilities | 1,888,062 | 1,854,050 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Share capital ($1 par value; 125,000,000 shares authorized at December 31, 2014 and 2013); (93,404,000 shares issued and outstanding at December 31, 2014; 93,260,000 shares issued and outstanding at December 31, 2013). | 93,404 | 93,260 |
Additional paid-in capital | 285,248 | 285,632 |
Contributed surplus | 586,089 | 581,569 |
Accumulated other comprehensive loss | -48,240 | -34,851 |
Accumulated other comprehensive loss – associated companies | -2,284 | -2,279 |
Retained earnings | 239,275 | 268,602 |
Total stockholders' equity | 1,153,492 | 1,191,933 |
Total liabilities and stockholders' equity | $3,041,554 | $3,045,983 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' equity | ||
Share capital, par value (in dollars per share) | $1 | $1 |
Share Capital, shares authorized | 125,000,000 | 125,000,000 |
Share Capital, shares issued | 93,404,000 | 93,260,000 |
Share Capital, shares outstanding | 93,404,000 | 93,260,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $122,815 | $89,206 | $185,836 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 67,393 | 58,436 | 55,602 |
Asset Impairment Charges | 11,800 | 0 | 0 |
Long-term investment impairment charge | 0 | 0 | 3,353 |
Amortization of deferred charges | 11,271 | 11,305 | 5,866 |
Amortization of seller's credit | -1,903 | -1,983 | -1,942 |
Equity in earnings of associated companies | -33,497 | -28,200 | -43,492 |
Gain on sale of assets and termination of charters | -23,931 | -18,025 | -47,386 |
Gain on sale of investment in associated company | -6,055 | 0 | 0 |
Adjustment of derivatives to fair value recognized in net income | 7,699 | -7,950 | -7,959 |
Loss/(gain) on repurchase of bonds | 21 | 1,218 | 122 |
Interest receivable in form of notes | -3,197 | -2,767 | -1,779 |
Other, net | -458 | -1,396 | -364 |
Changes in operating assets and liabilities | |||
Trade accounts receivable | 5,109 | -4,313 | -7,787 |
Due from related parties | -20,634 | 49,189 | -51,623 |
Other receivables | -9,418 | -740 | -1,067 |
Inventories | -320 | -3,656 | -97 |
Prepaid expenses and accrued income | -1,104 | -3,236 | -190 |
Trade accounts payable | -1,095 | 2,047 | 774 |
Accrued expenses | 4,358 | 271 | 3,206 |
Other current liabilities | 3,547 | 718 | -4,503 |
Net cash provided by operating activities | 132,401 | 140,124 | 86,570 |
Investing activities | |||
Repayments from investments in direct financing and sales-type leases | 43,120 | 51,220 | 58,571 |
Additions to newbuildings | -202,333 | -109,337 | -90,612 |
Purchase of vessels | -192,864 | 0 | -76,936 |
Proceeds from sale of vessels and termination of charters | 199,429 | 83,583 | 100,733 |
Net amounts (paid to)/received from associated companies | 88,585 | -81,308 | 56,443 |
Proceeds from (Repayments of) Debt | 50,000 | 0 | 0 |
Purchase of available for sale securities | -7,877 | -18,140 | -13,890 |
Net cash (used in)/provided by investing activities | -21,940 | -73,982 | 34,309 |
Financing activities | |||
Proceeds from shares issued, net of issuance costs | 927 | 128,880 | 89,596 |
Payments in lieu of issuing shares for exercised share options | -1,196 | -448 | -1,477 |
Repurchase of bonds | -75,262 | -254,132 | -28,096 |
Proceeds from issuance of short-term and long-term debt | 733,632 | 705,347 | 259,097 |
Repayments of short-term and long-term debt | -616,783 | -530,186 | -318,374 |
Debt fees paid | -7,460 | -8,390 | -3,989 |
Cash dividends paid | -152,142 | -109,114 | -152,009 |
Net cash used in financing activities | -118,284 | -68,043 | -155,252 |
Net (decrease)/increase in cash and cash equivalents | -7,823 | -1,901 | -34,373 |
Cash and cash equivalents at start of the year | 58,641 | 60,542 | 94,915 |
Cash and cash equivalents at end of the year | 50,818 | 58,641 | 60,542 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | $82,524 | $77,630 | $86,692 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Share capital | Additional paid-in capital | Contributed surplus | Accumulated other comprehensive loss | Accumulated other comprehensive loss – associated companies | Retained earnings |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance, at beginning of year at Dec. 31, 2011 | $857,091 | $79,125 | $61,670 | $548,354 | ($62,004) | ($24,737) | $254,683 |
Balance, at beginning of year (in shares) at Dec. 31, 2011 | 79,125,000 | 79,125,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued | 89,596 | 6,100 | 83,496 | ||||
Shares issued (in shares) | 6,100,000 | 6,100,000 | |||||
Payments in lieu of issuing shares | -1,477 | -1,477 | |||||
Amortization of stock based compensation | 569 | 569 | |||||
Equity component of convertible bond issuance, net | 0 | 0 | |||||
Amortization of deferred equity contributions | 13,018 | 13,018 | |||||
(Gain)/loss on hedging financial instruments reclassified into earnings | 27 | 27 | |||||
Fair value adjustments to hedging financial instruments in associated companies | 19,561 | 19,561 | |||||
Fair value adjustments to hedging financial instruments | -18,407 | -18,407 | |||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 896 | 896 | |||||
Other items of comprehensive (loss)/income | 67 | 67 | |||||
Net income | 185,836 | 185,836 | |||||
Dividends declared | -152,009 | -152,009 | |||||
Accumulated other comprehensive loss | |||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | -80,039 | ||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 569 | ||||||
Accumulated Other Comprehensive Income (Loss), Other Items Adjustment, Net of Tax | 49 | ||||||
Accumulated other comprehensive loss | -79,421 | ||||||
Balance, at end of year at Dec. 31, 2012 | 994,768 | 85,225 | 144,258 | 561,372 | -79,421 | -5,176 | 288,510 |
Balance, at end of year (in shares) at Dec. 31, 2012 | 85,225,000 | 85,225,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued | 128,915 | 8,035 | 120,880 | ||||
Shares issued (in shares) | 8,035,000 | 8,035,000 | |||||
Payments in lieu of issuing shares | -448 | -448 | |||||
Amortization of stock based compensation | 220 | 220 | |||||
Equity component of convertible bond issuance, net | 20,722 | 20,722 | |||||
Amortization of deferred equity contributions | 20,197 | 20,197 | |||||
(Gain)/loss on hedging financial instruments reclassified into earnings | 2,102 | 2,102 | |||||
Fair value adjustments to hedging financial instruments in associated companies | 2,897 | 2,897 | |||||
Fair value adjustments to hedging financial instruments | 41,827 | 41,827 | |||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 699 | 699 | |||||
Other items of comprehensive (loss)/income | -58 | -58 | |||||
Net income | 89,206 | 89,206 | |||||
Dividends declared | -109,114 | -109,114 | |||||
Accumulated other comprehensive loss | |||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | -36,110 | ||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 1,268 | ||||||
Accumulated Other Comprehensive Income (Loss), Other Items Adjustment, Net of Tax | -9 | ||||||
Accumulated other comprehensive loss | -34,851 | ||||||
Balance, at end of year at Dec. 31, 2013 | 1,191,933 | 93,260 | 285,632 | 581,569 | -34,851 | -2,279 | 268,602 |
Balance, at end of year (in shares) at Dec. 31, 2013 | 93,260,000 | 93,260,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued | 927 | 144 | 783 | ||||
Shares issued (in shares) | 144,000 | 144,000 | |||||
Payments in lieu of issuing shares | -1,196 | -1,196 | |||||
Amortization of stock based compensation | 29 | 29 | |||||
Equity component of convertible bond issuance, net | 0 | 0 | |||||
Amortization of deferred equity contributions | 4,520 | 4,520 | |||||
(Gain)/loss on hedging financial instruments reclassified into earnings | -4,504 | -4,504 | |||||
Fair value adjustments to hedging financial instruments in associated companies | -5 | -5 | |||||
Fair value adjustments to hedging financial instruments | -351 | -351 | |||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -8,355 | -8,355 | |||||
Other items of comprehensive (loss)/income | -179 | -179 | |||||
Net income | 122,815 | 122,815 | |||||
Dividends declared | -152,142 | -152,142 | |||||
Accumulated other comprehensive loss | |||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | -40,965 | ||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -7,087 | ||||||
Accumulated Other Comprehensive Income (Loss), Other Items Adjustment, Net of Tax | -188 | ||||||
Accumulated other comprehensive loss | -48,240 | ||||||
Balance, at end of year at Dec. 31, 2014 | $1,153,492 | $93,404 | $285,248 | $586,089 | ($48,240) | ($2,284) | $239,275 |
Balance, at end of year (in shares) at Dec. 31, 2014 | 93,404,000 | 93,404,000 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL |
Ship Finance International Limited ("Ship Finance" or the "Company") is an international ship and offshore asset owning and chartering company, incorporated in October 2003 in Bermuda as a Bermuda exempted company under Bermuda Companies Law of 1981. The Company's common shares are listed on the New York Stock Exchange under the symbol "SFL". The Company is primarily engaged in the ownership, operation and chartering out of vessels and offshore related assets on medium and long-term charters. | |
As of December 31, 2014, the Company owned 12 very large crude oil carriers ("VLCCs"), seven Suezmax crude oil carriers, five Supramax drybulk carriers, seven Handysize drybulk carriers, two Kamsarmax drybulk carriers, 20 container vessels, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, six offshore supply vessels and two chemical tankers. The two ultra-deepwater drilling units and one of the jack-up drilling rigs referred to above are owned by wholly-owned subsidiaries of the Company that are accounted for using the equity method (see Note 16: Investment in Associated Companies). In addition, as at December 31, 2014, the Company had contracted to acquire two newbuilding container vessels, which were delivered in January 2015. | |
Since its incorporation in 2003 and public listing in 2004, Ship Finance has established itself as a leading international ship and offshore asset owning and chartering company, expanding both its asset and customer base. |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES |
Basis of Accounting | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). The consolidated financial statements include the assets and liabilities and results of operations of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated on consolidation. Where necessary, comparative figures for previous years have been reclassified to conform to changes in presentation in the current year. | |
Consolidation of variable interest entities | |
A variable interest entity is defined in Accounting Standards Codification ("ASC") Topic 810 "Consolidation" ("ASC 810") as a legal entity where either (a) the total equity at risk is not sufficient to permit the entity to finance its activities without additional subordinated support; (b) equity interest holders as a group lack either i) the power to direct the activities of the entity that most significantly impact on its economic success, ii) the obligation to absorb the expected losses of the entity, or iii) the right to receive the expected residual returns of the entity; or (c) the voting rights of some investors in the entity are not proportional to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. | |
ASC 810 requires a variable interest entity to be consolidated by its primary beneficiary, being the interest holder, if any, which has both (1) the power to direct the activities of the entity which most significantly impact on the entity's economic performance, and (2) the right to receive benefits or the obligation to absorb losses from the entity which could potentially be significant to the entity. | |
We evaluate our subsidiaries, and any other entities in which we hold a variable interest, in order to determine whether we are the primary beneficiary of the entity, and where it is determined that we are the primary beneficiary we fully consolidate the entity. | |
Investments in associated companies | |
Investments in companies over which the Company exercises significant influence but which it does not consolidate are accounted for using the equity method. The Company records its investments in equity-method investees on the consolidated balance sheets as "Investment in associated companies" and its share of the investees' earnings or losses in the consolidated statements of operations as "Equity in earnings of associated companies." At December 31, 2014, two ultra-deepwater drilling units and one jack-up drilling rig are owned by three wholly-owned subsidiaries of the Company that are accounted for using the equity method. | |
Use of accounting estimates | |
The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Foreign currencies | |
The Company's functional currency is the U.S. dollar as the majority of revenues are received in U.S. dollars and the majority of the Company's expenditures are made in U.S. dollars. The Company's reporting currency is also the U.S. dollar. Most of the Company's subsidiaries report in U.S. dollars. Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction gains or losses are included under "Other financial items" in the consolidated statements of operations. | |
Revenue and expense recognition | |
Revenues and expenses are recognized on the accrual basis. | |
The Company generates its revenues from the charter hire of its vessels and offshore related assets, and freight billings. Revenues are generated from time charter hire, bareboat charter hire, direct financing lease interest income, sales-type lease interest income, finance lease service revenues, profit sharing arrangements and freight billings, where contracts exist, the charter and voyage rates are predetermined, service is provided and the collection of the revenue is reasonably assured. | |
Each charter agreement is evaluated and classified as an operating or a capital lease. Rental receipts from operating leases are recognized in income as it is earned ratably on a straight line basis over the duration of the period of each charter as adjusted for off-hire days. | |
Rental payments from capital leases, which are either direct financing leases or sales-type leases, are allocated between lease service revenue, if applicable, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. | |
Voyage revenues are recognized ratably over the estimated length of each voyage, and accordingly are allocated between reporting periods based on the relative transit time in each period. Voyage expenses are recognized as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. | |
Vessel operating expenses are expensed as incurred. Under a time charter, specified voyage costs such as fuel and port charges are paid by the charterer and other non-specified voyage expenses, such as commissions, are paid by the Company. Vessel operating costs include crews, voyage costs not applicable to the charterer, maintenance and insurance and are paid by the Company. Under a bareboat charter, the charterer assumes responsibility for all voyage and vessel operating costs and risks of operation. If payment is received in advance from charterers, it is recorded as deferred charter revenue and recognized as revenue over the period to which it relates. | |
Amounts receivable from profit sharing arrangements with Frontline Shipping Limited ("Frontline Shipping") and Frontline Shipping II Limited ("Frontline Shipping II"), which are related parties, are accrued based on amounts earned at the reporting date. Profit share income has two elements: | |
- 25% profit sharing: Prior to December 31, 2011, Frontline Shipping and Frontline Shipping II paid the Company profit sharing of 20% of their earnings on a time-charter equivalent basis from their use of the Company's fleet above average threshold charter rates each fiscal year. The amendments to the charter agreements made on December 30, 2011, increased the profit sharing percentage to 25% for future earnings above those threshold levels as from January 1, 2012. In December 2011, the Company received a $106 million compensation payment from Frontline Ltd. ("Frontline"), of which $50 million represents a non-refundable advance relating to the 25% profit sharing agreement. | |
- Cash sweep: The amendments to the charter agreements additionally provide that for the four year period commencing January 1, 2012, of the temporary $6,500 per day per vessel reduction in charter rates, Frontline Shipping and Frontline Shipping II will pay the Company 100% of any earnings on a time-charter equivalent basis above the temporarily reduced time charter rates, subject to a maximum of $6,500 per day per vessel. | |
All contingent elements of rental income, such as profit share, cash sweep and interest rate adjustments, are recognized when the contingent conditions have materialized. | |
Cash and cash equivalents | |
For the purposes of the consolidated statements of cash flows, all demand and time deposits and highly liquid, low risk investments with original maturities of three months or less are considered equivalent to cash. | |
Available for sale securities | |
Available for sale securities held by the Company consist of listed and unlisted corporate bonds, which earn interest income. Any premium paid on acquisition is amortized over the life of the bond. Available for sale securities are recorded at fair value, with unrealized gains and losses recorded as a separate component of other comprehensive income. The fair value of unlisted corporate bonds is determined from an analysis of projected cash flows, based on factors including the terms, provisions and other characteristics of the bonds, credit ratings and default risk of the issuing entity, the fundamental financial and other characteristics of that entity, and the current economic environment and trading activity in the debt market. | |
Trade accounts receivable | |
The amount shown as trade accounts receivable at each balance sheet date includes receivables due from customers for hire of vessels and offshore related assets, net of allowance for doubtful balances. At each balance sheet date, all potentially uncollectable accounts are assessed individually to determine any allowance for doubtful receivables. At December 31, 2014 and 2013, no provision was made for doubtful receivables. | |
Inventories | |
Inventories are comprised principally of fuel and lubricating oils and are stated at the lower of cost and market value. Cost is determined on a first-in first-out basis. | |
Vessels and equipment (including operating lease assets) | |
Vessels and equipment are recorded at historical cost less accumulated depreciation and, if appropriate, impairment charges. The cost of these assets less estimated residual value is depreciated on a straight-line basis over the estimated remaining economic useful life of the asset. The estimated economic useful life of our offshore assets, including drilling rigs and drillships, is 30 years and for all other vessels it is 25 years. | |
Where an asset is subject to an operating lease that includes fixed price purchase options, the projected net book value of the asset is compared to the option price at the various option dates. If any option price is less than the projected net book value at an option date, the initial depreciation schedule is amended so that the carrying value of the asset is written down on a straight line basis to the option price at the option date. If the option is not exercised, this process is repeated so as to amortize the remaining carrying value, on a straight line basis, to the estimated scrap value or the option price at the next option date, as appropriate. | |
This accounting policy for fixed assets has the effect that if an option is exercised there will be either a) no gain or loss on the sale of the asset or b) in the event that the option is exercised at a price in excess of the net book value at the option date, a gain will be reported in the statement of operations at the date of delivery to the new owners, under the heading "gain on sale of assets and termination of charters". | |
Office equipment is depreciated at 20% per annum on a reducing balance basis. | |
Newbuildings | |
The carrying value of vessels under construction ("newbuildings") represents the accumulated costs to the balance sheet date which the Company has paid by way of purchase installments and other capital expenditures together with capitalized loan interest and associated finance costs. No charge for depreciation is made until a newbuilding is put into operation. | |
Capitalized interest | |
Interest expense is capitalized during the period of construction of newbuilding vessels based on accumulated expenditures for the applicable vessel at the Company's capitalization rate of interest. The amount of interest capitalized in an accounting period is determined by applying an interest rate ("the capitalization rate") to the average amount of accumulated expenditures for the vessel during the period. The capitalization rate used in an accounting period is based on the average three month London Interbank Offered Rate ("LIBOR"). The Company does not capitalize amounts in excess of actual interest expense incurred in the period. | |
Investment in Capital Leases | |
Leases (charters) of our vessels where we are the lessor are classified as either capital leases or operating leases, based on an assessment of the terms of the lease. For charters classified as capital leases, the minimum lease payments (reduced in the case of time-chartered vessels by projected vessel operating costs) plus the estimated residual value of the vessel are recorded as the gross investment in the capital lease. | |
For capital leases that are direct financing leases, the difference between the gross investment in the lease and the carrying value of the vessel is recorded as unearned lease interest income. The net investment in the lease consists of the gross investment less the unearned income. Over the period of the lease each charter payment received, net of vessel operating costs if applicable, is allocated between "lease interest income" and "repayment of investment in lease" in such a way as to produce a constant percentage rate of return on the balance of the net investment in the direct financing lease. Thus, as the balance of the net investment in each direct financing lease decreases, a lower proportion of each lease payment received is allocated to lease interest income and a greater proportion is allocated to lease repayment. For direct financing leases relating to time chartered vessels, the portion of each time charter payment received that relates to vessel operating costs is classified as "lease service revenue". | |
For capital leases that are sales-type leases, the difference between the gross investment in the lease and the present value of its components, i.e. the minimum lease payments and the estimated residual value, is recorded as unearned lease interest income. The discount rate used in determining the present values is the interest rate implicit in the lease. The present value of the minimum lease payments, computed using the interest rate implicit in the lease, is recorded as the sales price, from which the carrying value of the vessel at the commencement of the lease is deducted in order to determine the profit or loss on sale. As is the case for direct financing leases, the unearned lease interest income is amortized to income over the period of the lease so as to produce a constant periodic rate of return on the net investment in the lease. | |
Where a capital lease relates to a charter arrangement containing fixed price purchase options, the projected carrying value of the net investment in the lease is compared to the option price at the various option dates. If any option price is less than the projected net investment in the lease at an option date, the rate of amortization of unearned lease interest income is adjusted to reduce the net investment to the option price at the option date. If the option is not exercised, this process is repeated so as to reduce the net investment in the lease to the un-guaranteed residual value or the option price at the next option date, as appropriate. | |
This accounting policy for investments in capital leases has the effect that if an option is exercised there will either be a) no gain or loss on the exercise of the option or b) in the event that an option is exercised at a price in excess of the net investment in the lease at the option date, a gain will be reported in the statement of operations at the date of delivery to the new owners. | |
If the terms of an existing lease are agreed to be amended, other than by renewing the lease or extending its term, in a manner that would have resulted in a different classification of the lease had such amended terms been in effect at the lease inception, the amended lease agreement shall be considered to be a new lease agreement over the remainder of its term. If the terms of a capital lease are amended in a way that does not result in it being treated as a new operating lease agreement, the remaining minimum lease payments and, if appropriate, the estimated residual value will be amended to reflect the revised terms, with a corresponding increase or decrease in unearned income. | |
Other Long-Term Investments | |
Other long-term investments are measured at fair value using the best available value indicators, and are included in "Other long-term assets" in the Consolidated Balance Sheets. The Company currently has two long-term investments. | |
One long-term investment consists of shares in a container vessel owner/operator which are not publicly traded, and the best estimate available for the valuation of this investment is the cost basis. When using this basis of valuation, the Company carries out regular reviews for possible impairment adjustments. Following such a review, an impairment adjustment was made to the carrying value of this asset in 2012, which is reported in the Consolidated Statements of Operations under "Long-term investment impairment charge" (see Note 5). | |
The other long-term investment consists of warrants to purchase shares in a U.S. company, which were received in 2012, together with other assets, as part of the consideration for the Company agreeing to terminate certain long-term charter agreements (see Note 9). Although shares in the U.S. company are traded on the over-the-counter market, the warrants are not listed. The Company considers that the best method of establishing the fair value of the warrants is to calculate their value in relation to the current market price of the underlying shares, taking into account the terms, restrictions and other features of the warrants, the fundamental financial and other characteristics of the issuing company, trading characteristics of the issuing company's shares, and actual sale transactions of comparable securities completed in secondary markets. The Company carries out regular reviews of the value of this investment, and adjusts the carrying value accordingly. If it is considered that the initial value of the warrants may not be recoverable, the Company records an impairment adjustment in the Consolidated Statements of Operations. Other changes in their value, which the Company believes to be temporary, are recorded as a separate component of other comprehensive income. In 2012, the Company concluded that the initial value of the warrants may not be recoverable and recorded an impairment charge, which is reported in the Consolidated Statement of Operations under "Long-term investment impairment charge" (see Note 5). | |
Deemed Equity Contributions | |
The Company has accounted for the acquisition of vessels from Frontline at Frontline's historical carrying value. The difference between the historical carrying value and the net investment in the lease has been recorded as a deferred deemed equity contribution. This deferred deemed equity contribution is presented as a reduction in the net investment in direct financing leases in the balance sheet. This results from the related party nature of both the transfer of the vessel and the subsequent direct financing lease. The deferred deemed equity contribution is amortized as a credit to contributed surplus over the life of the new lease arrangement, as lease payments are applied to the principal balance of the lease receivable. | |
Impairment of long-lived assets, including other long-term investments | |
The carrying value of long-lived assets, including other long-term investments, that are held by the Company are reviewed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For vessels, such indicators may include historically low spot charter rates and second hand vessel values. The Company assesses recoverability of the carrying value of the asset by estimating the future net cash flows expected to result from the asset, including eventual disposition, taking into account the possibility of any existing medium and long-term charter arrangements being terminated early. If the future expected net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the carrying value of the asset and its fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. The Company carried out a review of the carrying value of its vessels, drilling rigs and long-term investments in the year ended December 31, 2014, and concluded that the carrying values of five container vessels were impaired, and charges were taken against those assets. In the year ended December 31, 2012, reviews of the carrying value of long-lived assets indicated that the Company's long-term investments in shares in a container vessel owner/operator and warrants to purchase shares in a U.S. company were impaired, and charges were taken against those assets. No impairment loss was recorded in the year ended December 31, 2013. | |
Deferred charges | |
Loan costs, including debt arrangement fees, are capitalized and amortized on a straight line basis over the term of the relevant loan. The straight line basis of amortization approximates the effective interest method in the Company's statement of operations. Amortization of loan costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. Similarly, if a portion of a loan is repaid early, the corresponding portion of the unamortized related deferred charges is charged against income in the period in which the early repayment is made. | |
Convertible bonds | |
The Company accounts for debt instruments with convertible features in accordance with the details and substance of the instruments at the time of their issuance. For convertible debt instruments issued at a substantial premium to equivalent instruments without conversion features, or those that may be settled in cash upon conversion, it is presumed that the premium or cash conversion option represents an equity component. Accordingly, the Company determines the carrying amounts of the liability and equity components of such convertible debt instruments by first determining the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an equity component. The carrying amount of the equity component representing the embedded conversion option is then determined by deducting the fair value of the liability component from the total proceeds from the issue. The resulting equity component is recorded, with a corresponding offset to debt discount which is subsequently amortized to interest cost using the effective interest method over the period the debt is expected to be outstanding as an additional non-cash interest expense. Transaction costs associated with the instrument are allocated pro-rata between the debt and equity components. | |
For conventional convertible bonds which do not have a cash conversion option or where no substantial premium is received on issuance, it may not be appropriate to split the bond into the liability and equity components. | |
Derivatives | |
Interest rate and currency swaps | |
The Company enters into interest rate swap transactions from time to time to hedge a portion of its exposure to floating interest rates. These transactions involve the conversion of floating interest rates into fixed rates over the life of the transactions without an exchange of underlying principal. The Company also enters into currency swap transactions from time to time to hedge against the effects of exchange rate fluctuations on loan liabilities. Currency swap transactions involve the exchange of fixed amounts of other currencies for fixed US dollar amounts over the life of the transactions, including an exchange of underlying principal. The Company may also enter into a combination of interest and currency swaps "cross currency interest rate swaps". The fair values of the interest rate and currency swap contracts, including cross currency interest rate swaps, are recognized as assets or liabilities, and for certain of the Company's swaps the changes in fair values are recognized in the consolidated statements of operations. When the interest rate and/or currency swap or combination, qualifies for hedge accounting under ASC Topic 815 "Derivatives and Hedging" ("ASC 815"), and the Company has formally designated the swap as a hedge to the underlying loan, and when the hedge is effective, the changes in the fair value of the swap are recognized in other comprehensive income. If it becomes probable that the hedged forecasted transaction to which these swaps relate will not occur, the amounts in other comprehensive income will be reclassified into earnings immediately. | |
Financial Instruments | |
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments, including most derivatives and long-term debt, standard market conventions and techniques such as options pricing models are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | |
Drydocking provisions | |
Normal vessel repair and maintenance costs are charged to expense when incurred. The Company recognizes the cost of a drydocking at the time the drydocking takes place, that is, it applies the "expense as incurred" method. | |
Earnings per share | |
Basic earnings per share ("EPS") is computed based on the income available to common stockholders and the weighted average number of shares outstanding for basic EPS. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. | |
Share-based compensation | |
The Company accounts for share-based payments in accordance with ASC Topic 718 "Compensation – Stock Compensation" ("ASC 718"), under which the fair value of stock options issued to employees is expensed over the period in which the options vest. The Company uses the simplified method for making estimates of the expected term of stock options. |
RECENTLY_ISSUED_ACCOUNTING_STA
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS |
In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08 "Presentation of Financial Statements and Property, Plant and Equipment" in order to clarify and change the criteria for reporting discontinued operations. Under ASU 2014-08, the disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the entity's operations and financial results. Additionally, ASU 2014-08 improves the definition of discontinued operations and requires expanded disclosures for discontinued operations. ASU 2014-08 is effective for annual reporting periods and interim periods beginning on or after December 15, 2014. Its adoption is not expected to have a material impact on the Company's disclosures or consolidated financial position, results of operations and cash flows. | |
In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers" in order to ensure that revenue recognition requirements are the same under both US GAAP and International Financial Reporting Standards ("IFRS"). ASU 2014-09 removes inconsistencies and provides a more robust framework for addressing revenue issues. ASU 2014-09 is effective for reporting periods and interim periods beginning on or after December 15, 2016. Early adoption is not permitted. The Company is currently assessing the impact of ASU 2014-09 on its consolidated financial position, results of operations and cash flows. | |
In August 2014, the FASB issued ASU 2014-12 "Compensation - Stock Compensation" in order to provide explicit guidance on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Company's Option Scheme does not award options which are dependent on the achievement of performance targets and, accordingly, ASU 2-14-12 is not expected have a material impact on the Company's consolidated financial position, results of operations and cash flows. | |
In November 214, the FASB issued ASU 2014-16 "Derivatives and Hedging" in order to standardize the determination of whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity. ASU 2014-16 requires that all terms and features of the hybrid instrument, including the embedded derivative feature itself, must be taken into account when establishing separate accounting for the embedded derivative. ASU 2014-16 is effective for fiscal years and interim periods beginning on or after December15, 2015. The Company is currently assessing the impact of ASU 2014-16 on its consolidated financial position, results of operations and cash flows. | |
In January 2015, the FASB issued ASU 2015-01 "Income Statement - Extraordinary and Unusual Items", which eliminates the concept of extraordinary items from U.S. GAAP. ASU 2015-01 is effective for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted provided that it is applied from the beginning of the fiscal year of adoption. Its adoption is not expected to have a material impact on the Company’s consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02 "Consolidation: Amendments to the Consolidation Analysis" in order to clarify the basis for consolidation of certain legal entities. ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. ASU 2015-02 is effective for public business entities for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of ASU 2015-02 on its consolidated financial position, results of operations and cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION |
The Company has only one reportable segment. The Company's assets operate on a world-wide basis and the Company's management does not evaluate performance by geographical region or by asset type, as they believe that any such information would not be meaningful. |
LONGTERM_INVESTMENT_IMPAIRMENT
LONG-TERM INVESTMENT IMPAIRMENT CHARGE | 12 Months Ended |
Dec. 31, 2014 | |
Investments, All Other Investments [Abstract] | |
LONG-TERM INVESTMENT IMPAIRMENT CHARGE | LONG-TERM INVESTMENT IMPAIRMENT CHARGE |
The Company monitors events and trends which could indicate that the carrying amount of its long-term investments may not be recoverable. In the year ended December 31, 2012, the Company recorded a long-term investment impairment charge of $3.4 million in respect of two investments. No long-term investment impairment charges were recorded in the year ended December 31, 2014 (2013: $nil). | |
During the first quarter of 2012, the Company determined that its investment in the shares of a company which is not publicly traded would not generate sufficient future cash flows to ensure that its carrying value would be fully recoverable. An impairment charge of $2.9 million was recorded, equal to the difference between the carrying value of the investment and its estimated fair value of $nil. The carrying value of this investment at December 31, 2014, is $nil (2013: $nil). | |
During the second quarter of 2012, the Company received warrants to purchase shares in a U.S. company, together with other assets, as part of the consideration for the Company agreeing to terminate certain long-term charter agreements (see Note 9). Although shares in the U.S. company are traded on the over-the-counter market, the warrants are not listed. The Company considers that the best method of establishing the fair value of the warrants is to calculate their value in relation to the current market price of the underlying shares, taking into account the terms, restrictions and other features of the warrants, the fundamental financial and other characteristics of the issuing company, trading characteristics of the issuing company's shares, and actual sale transactions of comparable securities completed in secondary markets. The initial fair value of these warrants was $1.7 million at the time of acquisition. A review of the fair value of this investment at the end of the second quarter of 2012 identified an impairment loss of $0.5 million, and the Company adjusted the carrying value accordingly. Subsequent reviews of the fair value of this investment have not resulted in any further impairment adjustments and the carrying value of this investment at December 31, 2014, was $1.2 million (2013: $1.2 million). |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
TAXATION | TAXATION |
Bermuda | |
Under current Bermudan law, the Company is not required to pay taxes in Bermuda on either income or capital gains. The Company has received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, the Company will be exempted from taxation until the year 2035. | |
United States | |
The Company does not accrue U.S. income taxes as, in the opinion of U.S. counsel, the Company is not engaged in a U.S. trade or business and is exempted from a gross basis tax under Section 883 of the U.S. Internal Revenue Code. | |
A reconciliation between the income tax expense resulting from applying statutory income tax rates and the reported income tax expense has not been presented herein, as it would not provide additional useful information to users of the financial statements as the Company's net income is subject to neither Bermuda nor U.S. tax. | |
Other Jurisdictions | |
Certain of the Company's subsidiaries and branches in Norway and the United Kingdom are subject to income tax in their respective jurisdictions. The tax paid by subsidiaries of the Company that are subject to income tax is not material. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||
The computation of basic EPS is based on the weighted average number of shares outstanding during the year and the consolidated net income of the Company. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. | |||||||||
The components of the numerator for the calculation of basic and diluted EPS are as follows: | |||||||||
Year ended December 31 | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||
Basic: | |||||||||
Net income available to stockholders | 122,815 | 89,206 | 185,836 | ||||||
Diluted: | |||||||||
Net income available to stockholders | 122,815 | 89,206 | 185,836 | ||||||
Interest paid on 3.75% convertible bonds | 5,060 | 5,092 | 4,688 | ||||||
Interest paid on 3.25% convertible bonds | 17,371 | — | — | ||||||
145,246 | 94,298 | 190,524 | |||||||
The components of the denominator for the calculation of basic and diluted EPS are as follows: | |||||||||
Year ended December 31 | |||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||
Basic earnings per share: | |||||||||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 | ||||||
Diluted earnings per share: | |||||||||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 | ||||||
Effect of dilutive share options | 84 | 163 | 168 | ||||||
Effect of dilutive convertible debt | 23,332 | 5,753 | 5,106 | ||||||
116,747 | 95,424 | 85,868 | |||||||
The 3.25% convertible bonds issued in January 2013 were not dilutive at December 31, 2013. |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Leases, Operating [Abstract] | ||||||
OPERATING LEASES | OPERATING LEASES | |||||
Rental income | ||||||
The minimum future revenues to be received under the Company's non-cancelable operating leases on its vessels as of December 31, 2014, are as follows: | ||||||
(in thousands of $) | ||||||
Year ending December 31, | ||||||
2015 | 176,872 | |||||
2016 | 160,500 | |||||
2017 | 156,990 | |||||
2018 | 117,070 | |||||
2019 | 83,401 | |||||
Thereafter | 112,947 | |||||
Total minimum lease revenues | 807,780 | |||||
The cost and accumulated depreciation of vessels leased to third parties on operating leases at December 31, 2014 and 2013 were as follows: | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Cost | 1,715,510 | 1,360,605 | ||||
Accumulated depreciation | 338,377 | 270,989 | ||||
Vessels and equipment, net | 1,377,133 | 1,089,616 | ||||
An impairment charge of $11.8 million was recorded against the carrying value of five container vessels in the year ended December 31, 2014 (2013: $nil). |
GAIN_ON_SALE_OF_ASSETS_AND_TER
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Gain (Loss) on Disposition of Assets [Abstract] | |||||||||
GAIN ON SALE OF ASSETS | GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | ||||||||
The Company has recorded gains on sale of assets and termination of charters as follows: | |||||||||
Year ended December 31 | |||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||
(Loss)/ gain on sale of assets | (1,384 | ) | 18,025 | 25,681 | |||||
Gain on termination of charters | 25,315 | — | 21,705 | ||||||
Total gain on sale of assets and termination of charters | 23,931 | 18,025 | 47,386 | ||||||
The Company distinguishes between gains on termination of charters, where ownership of the underlying vessel is retained, and gains on sale of assets, where the vessel is disposed of and there may be an associated charter termination fee paid or received for early termination of the underlying charter. | |||||||||
Loss on sale of vessels | |||||||||
During the year ended December 31, 2014, the Company realized the following losses on sales of vessels: | |||||||||
(in thousands of $) | Sales price | Book value | Loss | ||||||
Vessel | |||||||||
Front Comanche | 38,835 | 39,235 | (400 | ) | |||||
Front Commerce | 37,884 | 38,371 | (487 | ) | |||||
Front Opalia | 39,363 | 39,860 | (497 | ) | |||||
116,082 | 117,466 | (1,384 | ) | ||||||
The VLCCs Front Comanche, Front Commerce and Front Opalia were accounted for as direct financing lease assets, and were sold to an unrelated party in November 2014. The above sales prices each include compensation received for early termination of the charters (see Note 23: Related Party Transactions). | |||||||||
During the year ended December 31, 2013, the Company sold one oil/bulk/ore carrier ("OBO"), one single-hull VLCC, two double-hull VLCCs and one Suezmax tanker to unrelated parties and realized gains of $18.0 million on their disposal. | |||||||||
During the year ended December 31, 2012, the Company sold four OBOs and two single-hull VLCCs to unrelated parties and realized gains of $25.7 million on their disposal. | |||||||||
Gain on termination of charters | |||||||||
In September 2010, the Company agreed five year time-charters at a net rate of approximately $14,000 per day per vessel for four 34,000 dwt Handysize drybulk carriers, which were under construction at the time. The vessels were delivered from the shipyard in the second half of 2011 and the first half of 2012, and duly commenced the agreed time-charters. In July 2012, however, the charterer stopped paying the agreed charter hire and the vessels were returned to the Company. Proceedings were initiated against the charterer to recover unpaid charter hire and the matter was settled in the year ended December 31, 2014. A gain on termination of charters amounting to $25.3 million was recorded in the year ended December 31, 2014, net of legal and other costs. | |||||||||
In April 2012, the Company agreed to terminate the long-term bareboat charter agreements with Horizon Lines, LLC relating to five container vessels. The Company received termination compensation consisting of second lien notes in Horizon Lines, LLC with a face value of $40.0 million, warrants exercisable into 10% of the common stock in the parent company Horizon Lines, Inc., and inventory remaining on board the vessels at the time of their redelivery. The $21.7 million aggregate fair value of these assets was recorded as a gain on termination of charters in the year ended December 31, 2012. The second lien loan notes, with an initial face value of $40.0 million, bear interest, which can be paid in cash, in the form of additional notes or a combination of cash and additional notes at the option of Horizon Lines, LLC, and mature in full in October 2016, unless previously redeemed. The notes are not listed and their estimated fair value at the time of acquisition was materially less than their face value. The fair value of the notes is determined from an analysis of projected cash flows, based on factors including the terms, provisions and other characteristics of the bonds, credit ratings and default risk of the issuing entity, the fundamental financial and other characteristics of that entity, and the current economic environment and trading activity in the debt market. The notes are being held as available for sale securities at fair value. The warrants can be exercised at any time between their issue and the 25th anniversary of the issue date. Although shares in Horizon Lines, Inc. are traded on the over-the-counter market, the warrants are not listed. The warrants are being held as a long-term investment at fair value. |
OTHER_FINANCIAL_ITEMS
OTHER FINANCIAL ITEMS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
OTHER FINANCIAL ITEMS | OTHER FINANCIAL ITEMS | ||||||||
Other financial items comprise the following items: | |||||||||
Year ended December 31 | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||
Net increase/(decrease) in fair value of non-designated derivatives | (7,636 | ) | 7,726 | 6,493 | |||||
Net cash payments on non-designated derivatives | (7,196 | ) | (2,653 | ) | (179 | ) | |||
Net increase/(decrease) in fair value of designated derivatives (ineffective portion) | (63 | ) | 224 | 1,466 | |||||
Other items | (1,337 | ) | (3,294 | ) | (1,904 | ) | |||
Total other financial items | (16,232 | ) | 2,003 | 5,876 | |||||
The net movement in the fair values of non-designated derivatives and net cash payments thereon relate to non-designated, terminated or de-designated interest rate swaps and cross currency interest rate swaps. The net movement in the fair values of designated derivatives relates to the ineffective portion of interest rate swaps and cross currency interest rate swaps that have been designated as cash flow hedges. Changes in the fair values of the effective portion of interest rate swaps that are designated as cash flow hedges are reported under "Other comprehensive income". The above net increase/ (decrease) in valuation of non-designated derivatives in the year ended December 31, 2014, includes $(4.5) million (2013: $2.1 million; 2012: $27,000) reclassified from "Other comprehensive income", as a result of certain interest rate swaps relating to loan facilities no longer being designated as cash flow hedges. | |||||||||
Other items in the year ended December 31, 2014, include a net loss of $109,000 arising from foreign currency translation (2013: $507,000 net loss; 2012: $8,000 net gain). Other items also include bank charges and fees relating to loan facilities. |
AVAILABLE_FOR_SALE_SECURITIES
AVAILABLE FOR SALE SECURITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Investments, Debt and Equity Securities [Abstract] | ||||||
AVAILABLE FOR SALE SECURITIES | AVAILABLE FOR SALE SECURITIES | |||||
Marketable securities held by the Company are debt securities considered to be available-for-sale securities. | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Amortized cost | 80,743 | 75,657 | ||||
Accumulated net unrealized (loss)/gain | (7,087 | ) | 1,268 | |||
Carrying value | 73,656 | 76,925 | ||||
The Company's investment in marketable securities consists of investments in secured notes which mature between 2016 and 2019. The net unrealized loss on available-for-sale securities included in other comprehensive income as at December 31, 2014, was $7.1 million (2013: gain $1.3 million). | ||||||
The above available for sale securities consist of listed and unlisted corporate bonds with a total carrying value of $49.9 million (2013: $56.4 million) and unlisted second lien interest-bearing loan notes with carrying value $23.7 million (2013: $20.5 million). The second lien loan notes include accumulated interest receivable, have a total face value of $59.4 million (2013: $51.4 million), and were issued by Horizon Lines, LLC as part of compensation received on termination of charters (see Note 9: Gain on sale of assets and termination of charters). |
TRADE_ACCOUNTS_RECEIVABLE_AND_
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES |
Trade accounts receivable | |
Trade accounts receivable are presented net of allowances for doubtful debts. The allowance for doubtful trade accounts receivable was $nil at both December 31, 2014 and 2013. Trade accounts receivable represents charter hire outstanding, and at December 31, 2013, included a balance of $5.0 million due from a charterer which was in dispute, but which was subsequently received. As at December 31, 2014, the Company has no reason to believe that any amount included in trade accounts receivable will not be recovered through due process or negotiation. | |
Other receivables | |
Other receivables are presented with no allowance for doubtful accounts as of December 31, 2014 and 2013. The total balance at December 31, 2013, included $50.0 million investment loans relating to the financing of the container vessels CMA CGM Magellan and CMA CGM Corte Real, which were chartered-in by wholly-owned subsidiaries accounted for using the equity method (see Note 16: Investment in Associated Companies). These loans were included in "Other receivables" at December 31, 2013, due to CMA CGM S.A. ("CMA CGM") exercising their options to acquire the vessel owning entities, upon which the loans become repayable. These loans were repaid in the first quarter on 2014. In addition, the total balance at December 31, 2013, included $24.9 million receivable on the cancellation in December 2013 of the newbuilding contract for a container vessel, which was also received in the first quarter of 2014. |
VESSELS_AND_EQUIPMENT_NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET | |||||
(in thousands of $) | 2014 | 2013 | ||||
Cost | 1,715,510 | 1,360,605 | ||||
Accumulated depreciation | 338,377 | 270,989 | ||||
Vessels and equipment, net | 1,377,133 | 1,089,616 | ||||
During 2014, the Company took delivery of two second-hand drybulk carriers at an aggregate cost of $61.8 million, nine second-hand container vessels at an aggregate cost of $127.9 million, and two newbuilding container vessels at an aggregate cost of $173.8 million. During 2013, the Company took delivery of one newbuilding drybulk carrier at an aggregate cost of $27.8 million and transferred two Suezmax tankers with a combined book value of $93.6 million from sales-type lease assets to operating lease assets. | ||||||
An impairment charge of $11.8 million was recorded against the carrying value of five container vessels in the year ended December 31, 2014 (2013: $nil). The five vessels were disposed of in February 2015 (see Note 27: Subsequent Events). | ||||||
Depreciation expense was $67.4 million for the year ended December 31, 2014 (2013: $58.4 million; 2012: $55.6 million). |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2014 | |
NEWBUILDINGS [Abstract] | |
NEWBUILDINGS | NEWBUILDINGS |
The carrying value of newbuildings represents the accumulated costs which the Company has paid in purchase installments and other capital expenditures, together with capitalized loan interest. Interest capitalized in the cost of newbuildings amounted to $290,000 in 2014 (2013: $257,000; 2012: $332,000). | |
At December 31, 2014, there were two (2013: seven) newbuilding contracts, all for container vessels, with accumulated costs of $87.6 million (2013: $126.0 million). During 2014, two container vessels were delivered and the contracts for the acquisition of three newbuilding 4,800 TEU container vessel were cancelled. No new contracts for newbuilding vessels were agreed in the year ended December 31, 2014. |
INVESTMENTS_IN_DIRECT_FINANCIN
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||||||
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES | INVESTMENTS IN DIRECT FINANCING LEASES | |||||
As at December 31, 2014, most (i.e. 17) of the Company's VLCCs and Suezmaxes were chartered to Frontline Shipping and Frontline Shipping II on long-term, fixed rate time charters which extend for various periods depending on the age of the vessels, ranging from approximately three to twelve years. Frontline Shipping and Frontline Shipping II are subsidiaries of Frontline, a related party, and the terms of the charters do not provide them with an option to terminate the charter before the end of its term. | ||||||
Additionally, one of the Company's offshore supply vessels is chartered on a long-term bareboat charter to DESS Cyprus Limited, a wholly owned subsidiary of Deep Sea Supply Plc., a related party. Another of the Company's offshore supply vessels is chartered on a long-term bareboat charter to Deep Sea Supply Shipowning II B.V., a wholly-owned subsidiary of Deep Sea Supply BTG B.V., which is a joint venture owned 50% by Deep Sea Supply Plc. and 50% by BTG Pactual Oil & Gas Empreendimentos e Particapacoes S.A. ("BTG Pactual"). We refer to Deep Sea Supply Plc. and Deep Sea Supply BTG B.V. together as Deep Sea. The terms of the charters provide the charterer with various call options to acquire the vessels at certain dates throughout the charters, which expire in 2020. | ||||||
The above 19 of the Company's assets were accounted for as direct financing leases at December 31, 2014 (2013: 22), all of which are leased to related parties. | ||||||
The following lists the components of the investments in direct financing leases as at December 31, 2014, and December 31, 2013: | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Total minimum lease payments to be received | 1,174,327 | 1,490,111 | ||||
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (330,056 | ) | (432,463 | ) | ||
Net minimum lease payments receivable | 844,271 | 1,057,648 | ||||
Estimated residual values of leased property (un-guaranteed) | 239,002 | 278,152 | ||||
Less: unearned income | (243,419 | ) | (318,910 | ) | ||
839,854 | 1,016,890 | |||||
Less: deferred deemed equity contribution | (86,585 | ) | (106,377 | ) | ||
Less: unamortized gains | (6,738 | ) | (7,105 | ) | ||
Total investment in direct financing and sales-type leases | 746,531 | 903,408 | ||||
Current portion | 37,517 | 45,148 | ||||
Long-term portion | 709,014 | 858,260 | ||||
746,531 | 903,408 | |||||
The minimum future gross revenues to be received under the Company's non-cancellable direct financing and sales-type leases as of December 31, 2014, are as follows: | ||||||
(in thousands of $) | ||||||
Year ending December 31 | ||||||
2015 | 117,479 | |||||
2016 | 155,562 | |||||
2017 | 154,626 | |||||
2018 | 147,931 | |||||
2019 | 135,690 | |||||
Thereafter | 463,039 | |||||
Total minimum lease revenues | 1,174,327 | |||||
INVESTMENT_IN_ASSOCIATED_COMPA
INVESTMENT IN ASSOCIATED COMPANIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||||||||||||
INVESTMENT IN ASSOCIATED COMPANIES | INVESTMENT IN ASSOCIATED COMPANIES | ||||||||||||||||||||
The Company has certain wholly-owned subsidiaries which are accounted for using the equity method, as it has been determined under ASC 810 that they are variable interest entities in which Ship Finance is not the primary beneficiary. | |||||||||||||||||||||
At December 31, 2014, 2013 and 2012, the Company had the following participation in investments that are recorded using the equity method: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
SFL West Polaris Limited | — | 100 | % | 100 | % | ||||||||||||||||
SFL Deepwater Ltd | 100 | % | 100 | % | 100 | % | |||||||||||||||
SFL Hercules Ltd | 100 | % | 100 | % | 100 | % | |||||||||||||||
SFL Linus Ltd | 100 | % | 100 | % | — | ||||||||||||||||
Bluelot Shipping Company Limited | — | 100 | % | 100 | % | ||||||||||||||||
SFL Corte Real Limited | — | 100 | % | 100 | % | ||||||||||||||||
The determination that Ship Finance is not the primary beneficiary of SFL Deepwater Ltd. ("SFL Deepwater"), SFL Hercules Ltd. ("SFL Hercules"), and SFL Linus Ltd. ("SFL Linus") is due to these subsidiaries each owning assets on which the underlying leases include both fixed price call options and fixed price put options or purchase obligations. | |||||||||||||||||||||
The determination that Ship Finance was not the primary beneficiary of SFL West Polaris Limited ("SFL West Polaris") was similarly due to this subsidiary owning an asset on which the underlying lease included both fixed price call options and a fixed price put option. Following the exercise of a purchase option, SFL West Polaris was sold in December 2014 - see below. | |||||||||||||||||||||
The determination that Ship Finance was not the primary beneficiary of Bluelot Shipping Company Limited ("Bluelot") and SFL Corte Real Limited ("Corte Real") was due to these subsidiaries, which did not own vessels, each having been incorporated specifically to participate in a three-party lease agreement, which could be effectively terminated by one of the other parties – see below. The three-party lease agreements were terminated in the first quarter of 2014. | |||||||||||||||||||||
SFL West Polaris was a 100% owned subsidiary of Ship Finance, incorporated in 2008 for the purpose of holding an ultra deepwater drillship and leasing that vessel to Seadrill Polaris Ltd. ("Seadrill Polaris"), fully guaranteed by its parent company Seadrill Limited ("Seadrill"), a related party. The vessel was chartered on a bareboat basis and the terms of the charter provided the charterer with various call options to acquire the vessel at certain dates throughout the charter. In addition, SFL West Polaris had a put option to sell the vessel to Seadrill Polaris at a fixed price at the end of the charter, which expired in 2023. Because the main asset of SFL West Polaris was the subject of a lease which includes both fixed price call options and a fixed price put option, it was determined that this subsidiary of Ship Finance was a variable interest entity in which Ship Finance was not the primary beneficiary. In December 2014, the parent company of the charterer advised the Company of its intention to exercise a purchase option, and the transaction was effected on December 30, 2014 as a sale of SFL West Polaris. The Company recorded a gain of $6.1 million on the sale, which was recorded as "Gain on sale of investment in associated company". In December 2012, SFL West Polaris entered into a $420 million five year term loan and revolving credit facility, which was used in January 2013 to refinance the previous $700 million facility established in 2008. At December 31, 2013, the balance outstanding under the new facility was $387.0 million. Although SFL West Polaris is no longer one of its subsidiaries, the Company continues to guarantee $94.0 million of this debt at December 31, 2014, for which it receives a guarantee commission (see Note 25: Commitments and Contingent Liabilities). | |||||||||||||||||||||
SFL Deepwater is a 100% owned subsidiary of Ship Finance, incorporated in 2008 for the purpose of holding two ultra deepwater drilling rigs and leasing those rigs to Seadrill Deepwater Charterer Ltd. and Seadrill Offshore AS, fully guaranteed by their parent company Seadrill. In September 2008, SFL Deepwater entered into a $1,400 million five year term loan facility to partly finance the acquisition of the two rigs. In June 2013, SFL Deepwater transferred one of the rigs and the corresponding lease to SFL Hercules, see below, and repaid the part of the loan facility relating to that rig. Accordingly, SFL Deepwater now holds one ultra deepwater drilling rig which is leased to Seadrill Deepwater Charterer Ltd. In October 2013, SFL Deepwater entered into a $390 million five year term loan and revolving credit facility, which was used in November 2013 to refinance the previous $1,400 million loan facility. At December 31, 2014, the balance outstanding under the new facility was $303.3 million (2013: $383.3 million), and the available amount under the revolving part of the facility was fully drawn. The Company guaranteed $85.0 million of this debt at December 31, 2014 (2013: $90.0 million). The rig is chartered on a bareboat basis and the terms of the charter provide the charterer with various call options to acquire the rig at certain dates throughout the charter. In addition, there is an obligation for the charterer to purchase the rig at a fixed price at the end of the charter, which expires in 2023. Because the main asset of SFL Deepwater is the subject of a lease which includes both fixed price call options and a fixed price purchase obligation, it has been determined that this subsidiary of Ship Finance is a variable interest entity in which Ship Finance is not the primary beneficiary. | |||||||||||||||||||||
SFL Hercules is a 100% owned subsidiary of Ship Finance, incorporated in 2012 for the purpose of holding an ultra deepwater drilling rig and leasing that rig to Seadrill Offshore AS, fully guaranteed by its parent company Seadrill. The rig was transferred, together with the corresponding lease, to SFL Hercules from SFL Deepwater in June 2013. In May 2013, SFL Hercules entered into a $375 million six year term loan and revolving credit facility to partly finance its acquisition of the rig from SFL Deepwater. The facility was drawn in June 2013, and at December 31, 2014, the balance outstanding under this facility was $283.7 million (2013: $361.2 million). At December 31, 2014, the available amount under the revolving part of the facility was $50.0 million (2013: $nil). The Company guaranteed $85.0 million of this debt at December 31, 2014 (2013: $90.0 million). Because the main asset of SFL Hercules is the subject of a lease which includes both fixed price call options and a fixed price purchase obligation at the end of the charter, it has been determined that this subsidiary of Ship Finance is a variable interest entity in which Ship Finance is not the primary beneficiary. | |||||||||||||||||||||
SFL Linus is a 100% owned subsidiary of Ship Finance, acquired from North Atlantic Drilling Ltd ("NADL"), a related party, in 2013. At December 31, 2013, SFL Linus held a newbuilding harsh environment jack-up drilling rig which upon delivery in February 2014 was leased to North Atlantic Linus Charterer Ltd., fully guaranteed by its parent company NADL. In October 2013, SFL Linus entered into a $475 million five year term loan and revolving credit facility to partly finance the acquisition of the rig. The facility was not utilized at December 31, 2013, but was drawn when the rig was delivered to SFL Linus and the charter commenced in February 2014. At December 31, 2014, the balance outstanding under this facility was $451.3 million, and the available amount under the revolving part of the facility was fully drawn. The Company guaranteed $90.0 million of this debt at December 31, 2014. In February 2015, amendments were made to the lease, whereby Seadrill replaced NADL as lease guarantor. Because the main asset of SFL Linus is the subject of a lease which includes both fixed price call options and a fixed price put option, it has been determined that this subsidiary of Ship Finance is a variable interest entity in which Ship Finance is not the primary beneficiary. | |||||||||||||||||||||
Bluelot and Corte Real are 100% owned subsidiaries of Ship Finance, each incorporated in 2010 for the purpose of leasing in a 13,800 twenty-foot equivalent units ("TEU") container vessel on a bareboat charter basis, respectively the CMA CGM Magellan and the CMA CGM Corte Real, and leasing the vessel out on a time-charter basis to CMA CGM. In November and December 2013, CMA CGM exercised its options to acquire the two vessel-owning entities, and the charter agreements were terminated in January and March 2014, respectively. The business activities of Bluelot and Corte Real were discontinued upon the re-delivery of their vessels, since when they have been fully consolidated. | |||||||||||||||||||||
Summarized balance sheet information of the Company's equity method investees is as follows: | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Current assets | 127,268 | 44,297 | — | 38,619 | 44,352 | — | — | ||||||||||||||
Non-current assets | 1,324,765 | 397,191 | — | 397,226 | 530,348 | — | — | ||||||||||||||
Total assets | 1,452,033 | 441,488 | — | 435,845 | 574,700 | — | — | ||||||||||||||
Current liabilities | 122,861 | 38,376 | — | 32,945 | 51,540 | — | — | ||||||||||||||
Non-current liabilities (2) | 1,275,715 | 371,147 | — | 391,500 | 513,068 | — | — | ||||||||||||||
Total liabilities | 1,398,576 | 409,523 | — | 424,445 | 564,608 | — | — | ||||||||||||||
Total shareholders' equity | 53,457 | 31,965 | — | 11,400 | 10,092 | — | — | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Current assets (1) | 205,916 | 94,981 | 34,412 | 56,886 | — | 9,780 | 9,857 | ||||||||||||||
Non-current assets | 1,516,033 | 432,755 | 458,558 | 429,720 | 195,000 | — | — | ||||||||||||||
Total assets | 1,721,949 | 527,736 | 492,970 | 486,606 | 195,000 | 9,780 | 9,857 | ||||||||||||||
Current liabilities | 159,847 | 85,240 | 38,337 | 29,101 | — | 3,523 | 3,646 | ||||||||||||||
Non-current liabilities (2) | 1,521,115 | 418,554 | 451,384 | 453,860 | 197,317 | — | — | ||||||||||||||
Total liabilities | 1,680,962 | 503,794 | 489,721 | 482,961 | 197,317 | 3,523 | 3,646 | ||||||||||||||
Total shareholders' equity | 40,987 | 23,942 | 3,249 | 3,645 | (2,317 | ) | 6,257 | 6,211 | |||||||||||||
-1 | Bluelot and Corte Real current assets at December 31, 2013, include $6.1 million and $6.0 million due from Ship Finance, respectively (see Note 23: Related party transactions). | ||||||||||||||||||||
-2 | SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2014, include $100.0 million (2013: $115.2 million), $135.3 million (2013: $120.1 million) and $110.7 million (2013: $195.0 million) due to Ship Finance (see Note 23: Related party transactions). SFL West Polaris non-current liabilities at December 31, 2013, includes $100.4 million due to Ship Finance (see Note 23: Related party transactions). In the year ended December 31, 2013, SFL Deepwater and SFL West Polaris paid dividends of $150.0 million (2014:$nil; 2012:$nil) and $73.0 million (2014: $nil; 2012:$nil), respectively. | ||||||||||||||||||||
Summarized statement of operations information of the Company's equity method investees is shown below. | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Operating revenues | 108,632 | 24,917 | 22,251 | 24,565 | 33,236 | 1,171 | 2,492 | ||||||||||||||
Net operating revenues | 105,567 | 24,905 | 22,234 | 24,544 | 33,221 | 232 | 431 | ||||||||||||||
Net income (3) | 33,497 | 8,023 | 4,643 | 7,755 | 12,413 | 232 | 431 | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Operating revenues | 122,792 | 46,145 | 23,701 | 13,832 | — | 19,490 | 19,624 | ||||||||||||||
Net operating revenues | 88,121 | 46,109 | 23,681 | 13,808 | — | 2,261 | 2,262 | ||||||||||||||
Net income (3) | 28,200 | 17,747 | 2,324 | 3,645 | (38 | ) | 2,261 | 2,261 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | Bluelot | Corte Real | ||||||||||||||||
Operating revenues | 146,263 | 69,508 | 37,421 | 19,612 | 19,722 | ||||||||||||||||
Net operating revenues | 111,434 | 69,485 | 37,418 | 2,266 | 2,265 | ||||||||||||||||
Net income (3) | 43,492 | 28,243 | 10,719 | 2,266 | 2,264 | ||||||||||||||||
-3 | The net income of SFL Deepwater, SFL West Polaris, SFL Hercules and SFL Linus in the year ended December 31, 2014, includes interest payable to Ship Finance amounting to $6.5 million (2013: $9.6 million; 2012: $13.1 million), $6.5 million (2013: $6.5 million; 2012: $6.5 million), $6.5 million (2013: $3.5 million; 2012: $nil) and $4.9 million (2013: $nil; 2012: $nil), respectively - see Note 23 "Related party transactions". | ||||||||||||||||||||
SFL Deepwater, SFL West Polaris, SFL Hercules and SFL Linus have loan facilities for which Ship Finance provides limited guarantees, as indicated above. These loan facilities contain financial covenants, with which Ship Finance and Seadrill must comply. As at December 31, 2014, Ship Finance and Seadrill were in compliance with all of the covenants under these long-term debt facilities. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accrued Liabilities [Abstract] | ||||||
ACCRUED EXPENSES | ACCRUED EXPENSES | |||||
(in thousands of $) | 2014 | 2013 | ||||
Vessel operating expenses | 6,305 | 1,959 | ||||
Administrative expenses | 1,330 | 799 | ||||
Interest expense | 10,555 | 11,074 | ||||
18,190 | 13,832 | |||||
OTHER_CURRENT_LIABILITIES_OTHE
OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Liabilities Disclosure [Abstract] | ||||||
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES | |||||
(in thousands of $) | 2014 | 2013 | ||||
Deferred charter revenue | 4,868 | 3,744 | ||||
Prepaid charter income | 3,114 | 822 | ||||
Employee taxes | 899 | 773 | ||||
Other | 211 | 209 | ||||
9,092 | 5,548 | |||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
LONG-TERM DEBT | LONG-TERM DEBT | |||||
(in thousands of $) | 2014 | 2013 | ||||
Long-term debt: | ||||||
Norwegian kroner 500 million senior unsecured floating rate bonds due 2014 | — | 71,854 | ||||
3.75% senior unsecured convertible bonds due 2016 | 125,000 | 125,000 | ||||
Norwegian kroner 600 million senior unsecured floating rate bonds due 2017 | 76,487 | 92,843 | ||||
3.25% senior unsecured convertible bonds due 2018 | 350,000 | 350,000 | ||||
Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 | 119,277 | — | ||||
U.S. dollar denominated floating rate debt (LIBOR plus margin) due through 2021 | 1,061,695 | 1,097,182 | ||||
1,732,459 | 1,736,879 | |||||
Less: current portion of long-term debt | (182,415 | ) | (389,888 | ) | ||
1,550,044 | 1,346,991 | |||||
The outstanding debt as of December 31, 2014, is repayable as follows: | ||||||
(in thousands of $) | ||||||
Year ending December 31 | ||||||
2015 | 182,415 | |||||
2016 | 204,218 | |||||
2017 | 187,205 | |||||
2018 | 582,980 | |||||
2019 | 254,591 | |||||
Thereafter | 321,050 | |||||
Total debt | 1,732,459 | |||||
The weighted average interest rate for floating rate debt denominated in U.S. dollars and Norwegian kroner ("NOK") as at December 31, 2014, was 4.98% per annum (2013: 4.86%). These rates take into consideration the effect of related interest rate swaps. At December 31, 2014, the three month dollar LIBOR was 0.256% (2013: 0.246%) and the three month Norwegian Interbank Offered Rate ("NIBOR") was 1.48% (2013: 1.69%). | ||||||
NOK500 million senior unsecured bonds due 2014 | ||||||
On October 7, 2010, the Company issued a senior unsecured bond loan totaling NOK500.0 million in the Norwegian credit markets. The bonds bore quarterly interest at NIBOR plus a margin. Subsequent to their issue, the Company purchased bonds with principal amounts totaling NOK63.5 million prior to December 31, 2013, and a further NOK4.0 million in the first quarter of 2014, which were held as treasury bonds. All outstanding bonds were redeemed in full on April 7, 2014, partly funded by the issue in March 2014 of NOK900 million senior unsecured bonds due 2019. The net amount outstanding at December 31, 2014 was NOKnil, equivalent to $nil (2013: NOK436.5 million, equivalent to $71.9 million). | ||||||
3.75% senior unsecured convertible bonds due 2016 | ||||||
On February 10, 2011, the Company issued a senior unsecured convertible bond loan totaling $125.0 million. Interest on the bonds is fixed at 3.75% per annum and is payable in cash semi-annually in arrears on February 10 and August 10. The bonds are convertible into Ship Finance International Limited common shares at any time up to 10 banking days prior to February 10, 2016. The conversion price at the time of issue was $27.05 per share, representing a 35% premium to the share price at the time. Since then, dividend distributions have reduced the conversion price to $17.98. The Company has the right to call the bonds after March 3, 2014, if the value of the shares underlying each bond exceeds, for a specified period of time, 130% of the principal amount of the bond. | ||||||
NOK600 million senior unsecured bonds due 2017 | ||||||
On October 19, 2012, the Company issued a senior unsecured bond loan totaling NOK600 million in the Norwegian credit market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on October 19, 2017. The bonds may, in their entirety, be redeemed at the Company's option from April 19, 2017, upon giving bondholders at least 30 business days notice and paying 100.50% of par value plus accrued interest. Subsequent to their issue, the Company purchased bonds with principal amounts totaling NOK36.0 million in 2013, of which NOK8.0 million were re-sold in 2014. The Company holds bonds purchased as treasury bonds. The net amount outstanding at December 31, 2014, was NOK572 million, equivalent to $76.5 million (2013: NOK564 million, equivalent to $92.8 million). | ||||||
3.25% senior unsecured convertible bonds due 2018 | ||||||
On January 30, 2013, the Company issued a senior unsecured convertible bond loan totaling $350.0 million. Interest on the bonds is fixed at 3.25% per annum and is payable in cash quarterly in arrears on February 1, May 1, August 1, and November 1. The bonds are convertible into Ship Finance International Limited common shares at any time up to ten banking days prior to February 1, 2018. The conversion price at the time of issue was $21.945 per share, representing a 33% premium to the share price at the time. Since then, dividend distributions have reduced the conversion price to $18.1555 per share. In conjunction with the bond issue, the Company loaned up to 6,060,606 of its common shares to an affiliate of one of the underwriters of the issue, in order to assist investors in the bonds to hedge their position. The shares that were lent by the Company were borrowed from Hemen Holding Ltd., the largest shareholder of the Company, for a one-time loan fee of $1.0 million. | ||||||
As required by ASC 470-20 "Debt with conversion and other options", the Company calculated the equity component of the convertible bond, taking into account both the fair value of the conversion option and the fair value of the share lending arrangement. The equity component was valued at $20.7 million and this amount was recorded as "Additional paid-in capital", with a corresponding adjustment to "Deferred charges" which are amortized to "Interest expense" over the appropriate period. The amortization of this item amounted to $4.1 million in the year ended December 31, 2014 (2013. $3.9 million). | ||||||
NOK900 million senior unsecured bonds due 2019 | ||||||
On March 19, 2014, the Company issued a senior unsecured bond loan totaling NOK900 million in the Norwegian credit market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on March 19, 2019. The bonds may, in their entirety, be redeemed at the Company's option from September 19, 2018, upon giving the bondholders at least 30 business days notice and paying 100.50% of par value plus accrued interest. Subsequent to their issue, the Company purchased bonds with principal amounts totaling NOK8.0 million in 2014, which are being held as treasury bonds. The net amount outstanding at December 31, 2014, was NOK892.0 million, equivalent to $119.3 million (2013: NOKnil, equivalent to $nil). | ||||||
$210 million secured term loan facility | ||||||
In April 2006, five wholly-owned subsidiaries of the Company entered into a $210 million secured term loan facility with a syndicate of banks to partly fund the acquisition of five new container vessels. The terms of the loan were initially linked to long-term charters of the vessels, and the Company did not provide a corporate guarantee for the facility. In April 2012, those long-term charters were terminated and the terms of the loan agreement were amended. Although the facility continues without recourse to the Company, as part of the amended agreement the Company now guarantees that revenues received by the vessel-owning subsidiaries will achieve certain minimum levels for each vessel. This performance guarantee has been reduced to a maximum of $2.7 million in aggregate as of December 31, 2014. The facility bears interest at LIBOR plus a margin and has a term of twelve years from the date of drawdown for each vessel. The net amount outstanding at December 31, 2014, was $171.4 million (2013: $174.8 million). In January 2015, the performance guarantee became exhausted and in February 2015 agreement was reached with the lenders whereby the five vessels were transferred to new unrelated third parties and the Company ceased to have any further commitments under this facility (see Note 27: Subsequent Events). | ||||||
$149 million secured term loan facility | ||||||
In August 2007, five wholly-owned subsidiaries of the Company entered into a $149 million secured term loan facility with a syndicate of banks. The proceeds of the facility were used to partly fund the acquisition of five new offshore supply vessels, one of which was sold in January 2008. The facility relating to the remaining four vessels, which bore interest at LIBOR plus a margin and had a term of seven years, was fully repaid in the year ended December 31, 2014. In August 2014, the Company entered into a new $101 million secured term loan facility partly secured against the four vessels (see below). The net amount outstanding under the $149 million facility at December 31, 2013, was $73.9 million. | ||||||
$77 million secured term loan facility | ||||||
In January 2008, two wholly-owned subsidiaries of the Company entered into a $77 million secured term loan facility with a syndicate of banks. The proceeds of the facility were used to partly fund the acquisition of two offshore supply vessels. The facility, which bore interest at LIBOR plus a margin and had a term of seven years, was fully repaid in the year ended December 31, 2014. In August 2014, the Company entered into a new $101 million secured term loan facility partly secured against the two vessels (see below). The net amount outstanding under the $77 million facility at December 31, 2013, was $39.1 million. | ||||||
$30 million secured revolving credit facility | ||||||
In February 2008, a wholly-owned subsidiary of the Company entered into a $30 million secured revolving credit facility with a bank. The proceeds of the facility were used to partly fund the acquisition of a 1,700 TEU container vessel. The facility bears interest at LIBOR plus a margin and has a term of seven years. At December 31, 2014, the available amount under the facility was fully drawn. The net amount outstanding at December 31, 2014, was $3.0 million (2013: $5.0 million). In January 2015, all outstanding amounts were prepaid and the facility was canceled. | ||||||
$49 million secured term loan and revolving credit facility | ||||||
In March 2008, two wholly-owned subsidiaries of the Company entered into a $49 million secured term loan facility with a bank. The proceeds of the facility were used to partly fund the acquisition of two newbuilding chemical tankers. The Company has provided a limited corporate guarantee for this facility. The facility bears interest at LIBOR plus a margin and has a term of ten years. In June 2011, the terms of the facility were amended such that part of the loan was transformed into a revolving credit facility. At December 31, 2014, the amount available under the revolving part of the facility was $nil (2013: $1.9 million). The net amount outstanding at December 31, 2014, was $28.0 million (2013: $25.6 million). | ||||||
$43 million secured term loan facility | ||||||
In February 2010, a wholly-owned subsidiary of the Company entered into a $42.6 million secured term loan facility with a bank, bearing interest at LIBOR plus a margin and with a term of approximately five years. The facility is secured against a Suezmax tanker. In November 2014, the terms of the loan were amended and restated, and the facility now matures in November 2019. The net amount outstanding at December 31, 2014, was $29.1 million (2013: $32.0 million). | ||||||
$725 million secured term loan and revolving credit facility | ||||||
In March 2010, the Company entered into a $725 million secured term loan and revolving credit facility with a syndicate of banks, secured against 26 vessels chartered to Frontline. Twelve of the vessels have since been sold, and the facility is secured against the remaining 14 vessels at December 31, 2014. The facility bears interest at LIBOR plus a margin and is repayable over a term of five years. The net amount outstanding at December 31, 2014, was $71.5 million (2013: $158.8 million). The available amount under the revolving part of the facility at December 31, 2014 was $112.0 million (2013: $119.7 million). In February 2015, all outstanding amounts were prepaid and the facility was canceled. | ||||||
$43 million secured term loan facility | ||||||
In March 2010, a wholly-owned subsidiary of the Company entered into a $42.6 million secured term loan facility with a bank, secured against a Suezmax tanker. The facility bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2014, was $29.1 million (2013: $32.0 million). In March 2015, the terms of the loan were amended and restated, and the facility now matures in March 2020. | ||||||
$54 million secured term loan facility | ||||||
In November 2010, two wholly-owned subsidiaries of the Company entered into a $53.7 million secured term loan facility with a bank, secured against two Supramax drybulk carriers. The Company has provided a limited corporate guarantee for this facility. The facility bears interest at LIBOR plus a margin and has a term of eight years. The net amount outstanding at December 31, 2014, was $38.0 million (2013: $42.0 million). | ||||||
$95 million secured term loan and revolving credit facility | ||||||
In February 2011, a wholly-owned subsidiary of the Company entered into a $95 million secured term loan and revolving credit facility with a bank, secured against a jack-up drilling rig. The facility bears interest at LIBOR plus a margin and has a term of seven years. The net amount outstanding at December 31, 2014, was $57.5 million (2013: $47.5 million). The available amount under the revolving part of the facility at December 31, 2014 was $nil (2013: $20.0 million). | ||||||
$75 million secured term loan facility | ||||||
In March 2011, three wholly-owned subsidiaries of the Company entered into a $75.4 million secured term loan facility with a bank, secured against three newbuilding Supramax drybulk carriers delivered in 2011 and 2012. The facility bears interest at LIBOR plus a margin and has a term of approximately eight years. The Company has provided a limited corporate guarantee for this facility. The net amount outstanding at December 31, 2014, was $56.6 million (2013: $62.5 million). | ||||||
$171 million secured term loan facility | ||||||
In May 2011, eight wholly-owned subsidiaries of the Company entered into a $171.0 million secured loan facility with a syndicate of banks. The facility is supported by China Export & Credit Insurance Corporation, or SINOSURE, which provides an insurance policy in favor of the banks for part of the outstanding loan. The facility is secured against a 1,700 TEU container vessel and seven Handysize drybulk carriers. The facility bears interest at LIBOR plus a margin and has a term of approximately ten years from delivery of each vessel. The net amount outstanding at December 31, 2014, was $134.2 million (2013: $146.3 million). | ||||||
$55 million secured securities financing agreement | ||||||
In June 2011, the Company entered into a $55 million securities financing agreement with a bank. The facility may be used to fund up to 50% of the acquisition cost of securities we may acquire from time to time, subject to certain conditions. The facility bears interest at LIBOR plus a margin and will be secured against the relevant securities. The facility had not been utilized as at December 31, 2014. | ||||||
$167 million secured term loan and revolving credit facility | ||||||
In July 2011, five wholly-owned subsidiaries of the Company entered into a $166.8 million secured term loan and revolving credit facility agreement with a syndicate of banks, secured against five VLCCs chartered to Frontline. The facility bears interest at LIBOR plus a margin and has a term of six years from drawdown. Two of the VLCCs were sold in 2013 and the facility now relates to the three remaining VLCCs. The net amount outstanding at December 31, 2014 was $72.2 million (2013: 74.5 million). The available amount under the revolving part of the facility at December 31, 2014 was $nil (2013: $8.0 million). | ||||||
$184 million secured term loan facility | ||||||
In March 2012, four wholly-owned subsidiaries of the Company entered into a $184.0 million secured loan facility with a bank secured against four newbuilding container vessels, bearing interest at LIBOR plus a margin and with a term of approximately 12 years from delivery of each vessel. The facility was for both pre- and post-delivery financing. In December 2013, the contract for one of the newbuilding vessels was cancelled, and in the year ended December 31, 2014, the contracts for the remaining three newbuilding vessels were cancelled. The net amount outstanding at December 31, 2013, was $64.4 million, relating to pre-delivery financing of installments paid to the yard for the four vessels. In the year ended December 31, 2014, the loan was repaid in full as a result of the cancellation of all four newbuilding contracts. All instalments paid to the shipyard were fully reimbursed, together with interest thereon. | ||||||
$53 million secured term loan facility | ||||||
In November 2012, two wholly-owned subsidiaries of the Company entered into a $53.2 million secured term loan facility with a bank, secured against two car carriers. The facility bears interest at LIBOR plus a margin and has a term of approximately five years. The net amount outstanding at December 31, 2014 was $44.3 million (2013: $48.8 million). | ||||||
$70 million secured term loan facility | ||||||
In June 2013, the Company entered into a $70.0 million secured term loan facility with a syndicate of banks in order to partly finance the pre-delivery costs of the harsh-environment jack-up drilling rig West Linus, secured against the newbuilding contract for the rig. The rig was delivered in February 2014 to SFL Linus, a wholly-owned subsidiary of the Company accounted for using the equity method. Upon delivery, the $70.0 million facility was repaid in full and SFL Linus drew down against a $475 million secured term loan facility established to partly finance its acquisition of the rig (see Note 16: Investment in Associated Companies). The $70.0 million facility bore interest at LIBOR plus a margin and had a term of approximately nine months. The net amount outstanding at December 31, 2014 was $nil (2013: $70.0 million). | ||||||
$45 million secured term loan and revolving credit facility | ||||||
In June 2014, seven wholly-owned subsidiaries of the Company entered into a $45.0 million secured term loan and revolving credit facility with a bank, secured against seven 4,100 TEU container vessels acquired in the year ended December 31, 2014. The facility bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2014, was $45.0 million (2013: $nil). The available amount under the revolving part of the facility at December 31, 2014, was $nil (2013: $nil). | ||||||
$101 million secured term loan facility | ||||||
In August 2014, six wholly-owned subsidiaries of the Company entered into a $101.4 million secured term loan facility with a syndicate of banks, to refinance the $149 million secured term loan facility which matured in August 2014 and the $77 million secured term loan facility which was due to mature in January 2015 (see above). Those two facilities were repaid in full, and the new $101.4 million facility is secured against the six offshore supply vessels which previously provided security for the repaid facilities. The $101.4 million facility bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2014, was $98.7 million (2013: $nil). | ||||||
$20 million secured term loan facility | ||||||
In September 2014, two wholly-owned subsidiaries of the Company entered into a $20.0 million secured term loan facility with a bank, secured against two 5,800 TEU container vessels acquired in the year ended December 31, 2014. The facility bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2014, was $20.0 million (2013: $nil). | ||||||
$128 million secured term loan facility | ||||||
In September 2014, two wholly-owned subsidiaries of the Company entered into a $127.5 million secured term loan facility with a bank, for the post-delivery financing of two newbuilding 8,700 TEU container vessels. The vessels were delivered from the shipyard in the year ended December 31, 2014. The facility bears interest at LIBOR plus a margin and has a term of seven years. The net amount outstanding at December 31, 2014, was $126.4 million (2013: $nil). | ||||||
$128 million secured term loan facility | ||||||
In November 2014, two wholly-owned subsidiaries of the Company entered into a $127.5 million secured term loan facility with a bank, for the post-delivery financing of two newbuilding 8,700 TEU container vessels. The vessels were delivered from the shipyard in January 2015. The facility bears interest at LIBOR plus a margin and has a term of seven years. The facility had not been utilized as at December 31, 2014. | ||||||
$39 million secured term loan facility | ||||||
In December 2014, two wholly-owned subsidiaries of the Company entered into a $39.0 million secured term loan facility with a bank, secured against two Kamsarmax drybulk carriers acquired in the year ended December 31, 2014. The facility bears interest at LIBOR plus a margin and has a term of approximately eight years. The net amount outstanding at December 31, 2014, was $36.4 million (2013: $nil). | ||||||
The aggregate book value of assets pledged as security against borrowings at December 31, 2014, was $2,062 million (2013: $1,994 million). | ||||||
Agreements related to long-term debt provide limitations on the amount of total borrowings and secured debt, and acceleration of payment under certain circumstances, including failure to satisfy certain financial covenants. As of December 31, 2014, the Company is in compliance with all of the covenants under its long-term debt facilities. The $101 million secured term loan facility entered into in August 2014 contains certain financial covenants on Deep Sea Supply Plc. and Deep Sea Supply BTG B.V. As at December 31, 2014, Deep Sea Supply Plc. and Deep Sea Supply BTG B.V. were in compliance with all covenants under the respective loan agreements. |
OTHER_LONG_TERM_LIABILITIES
OTHER LONG TERM LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Liabilities Disclosure [Abstract] | ||||||
OTHER LONG TERM LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||
(in thousands of $) | 2014 | 2013 | ||||
Unamortized sellers' credit | 15,042 | 18,125 | ||||
Other items | 2,542 | 4 | ||||
17,584 | 18,129 | |||||
The Company's six offshore supply vessels were acquired from Deep Sea and were chartered back to Deep Sea under bareboat charter agreements. As part of the purchase consideration, the Company received seller's credits totaling $37.0 million which are being recognized as additional bareboat revenues over the period of the charters. | ||||||
Other items at December 31, 2014, includes the $2.5 million fair value of the guarantee provided by the Company to the providers of the loan facility to SFL West Polaris, following the sale of that company (see Note 16: Investment in Associated Companies). |
SHARE_CAPITAL_ADDITIONAL_PAIDI
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | |||||
Authorized share capital is as follows: | ||||||
(in thousands of $, except share data) | 2014 | 2013 | ||||
125,000,000 common shares of $1.00 par value each | 125,000 | 125,000 | ||||
Issued and fully paid share capital is as follows: | ||||||
(in thousands of $, except share data) | 2014 | 2013 | ||||
93,404,000 common shares of $1.00 par value each (2013: 93,260,000 shares) | 93,404 | 93,260 | ||||
The Company's common shares are listed on the New York Stock Exchange. | ||||||
In the year ended December 31, 2014, the Company issued a total of 144,000 new shares in order to satisfy options exercised by three directors, one officer and two employees (2013: 35,000 new shares issued to satisfy options exercised by two employees). The weighted average exercise price of the options was $6.44 per share (2013: $5.29 per share), resulting in a premium on issue of $0.8 million (2013: $0.2 million). No other shares were issued and sold in the year ended December 31, 2014. In the year ended December 31, 2013, in addition to the shares issued to satisfy options exercised by employees, the Company issued and sold 8,000,000 shares pursuant to a prospectus filed in November 2010. Total proceeds of $128.7 million net of costs were received, resulting in a premium on issue of $120.7 million. | ||||||
In November 2006, the Board of Directors approved the Ship Finance International Limited Share Option Scheme (the "Option Scheme"). The Option Scheme permits the Board of Directors, at its discretion, to grant options to employees, officers and directors of the Company or its subsidiaries. The fair value cost of options granted is recognized in the statement of operations, and the corresponding amount is credited to additional paid in capital (see also Note 22). During 2014, one officer exercised options and in lieu of issuing 80,000 new shares the Company made a payment totaling $1.2 million, equal to the intrinsic value of the options on the date of exercise (2013: one officer exercised options and received a payment totaling $0.4 million in lieu of 40,000 shares). These amounts are accounted for as repurchases of the Company's shares and the payments are recorded as reductions in additional paid-in capital. | ||||||
In January 2013, the Company issued a senior unsecured convertible bond loan totaling $350 million. The bonds are convertible into common shares at any time up to ten banking days prior to February 1, 2018. The conversion price at the time of issue was $21.945 per share, representing a 33% premium to the share price at the time. Since then, dividend distributions have reduced the conversion price to $18.1555 per share. As required by ASC 470-20 "Debt with conversion and other options", the Company calculated the equity component of the convertible bond, which was valued at $20.7 million and recorded as "Additional paid-in capital" (see Note 19: Long-term Debt). | ||||||
The Company has accounted for the acquisition of vessels from Frontline at Frontline's historical carrying value. The difference between the historical carrying values and the net investment in the leases has been recorded as a deferred deemed equity contribution, which is presented as a reduction in net investment in direct financing leases in the balance sheet. This accounting treatment arises from the related party nature of both the initial transfer of the vessels and the subsequent leases. The deferred deemed equity contribution is amortized to contributed surplus over the life of the lease arrangements, as lease payments are applied to the principal balance of the lease receivable. In the year ended December 31, 2014, the Company has credited contributed surplus with $4.5 million of such deemed equity contributions (2013: $20.2 million). |
SHARE_OPTION_PLAN
SHARE OPTION PLAN | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
SHARE OPTION PLAN | SHARE OPTION PLAN | |||||||||||||||||
The Option Scheme adopted in November 2006 will expire in November 2016. The subscription price for all options granted under the scheme will be reduced by the amount of all dividends declared by the Company per share in the period from the date of grant until the date the option is exercised, provided the subscription price shall never be reduced below the par value of the share. Options granted under the scheme will vest at a date determined by the board at the date of the grant. The options granted under the plan to date vest over a period of one to three years and have a five year term. There is no maximum number of shares authorized for awards of equity share options, and either authorized unissued shares of Ship Finance or treasury shares held by the Company may be used to satisfy exercised options. | ||||||||||||||||||
The following summarizes share option transactions related to the Option Scheme in 2014, 2013 and 2012: | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Options | Weighted average exercise price $ | Options | Weighted average exercise price $ | Options | Weighted average exercise price $ | |||||||||||||
Options outstanding at beginning of year | 423,000 | 9.99 | 498,000 | 10.27 | 830,500 | 11.25 | ||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||
Exercised | (224,000 | ) | 5.41 | (75,000 | ) | 5.29 | (260,000 | ) | 7.17 | |||||||||
Forfeited | (10,000 | ) | 5.56 | — | — | (72,500 | ) | 18.05 | ||||||||||
Options outstanding at end of year | 189,000 | 13.17 | 423,000 | 9.99 | 498,000 | 10.27 | ||||||||||||
Exercisable at end of year | 189,000 | 13.17 | 374,333 | 9.22 | 376,668 | 8.29 | ||||||||||||
The exercise price of each option is progressively reduced by the amount of any dividends declared. The above figures show the average of the reduced exercise prices at the beginning and end of the year for options then outstanding. For options granted, exercised or forfeited during the year, the above figures show the average of the exercise prices at the time the options were granted, exercised or forfeited, as appropriate. | ||||||||||||||||||
The fair values of options granted are estimated on the date of the grant, using the Black-Scholes-Merton option valuation model. The fair values are then expensed over the periods in which the options vest. No new options were granted in 2014, 2013 and 2012, and all options outstanding at December 31, 2014, were fully vested. | ||||||||||||||||||
The total intrinsic value of options exercised in 2014 was $2.9 million on the day of exercise (2013: $0.9 million; 2012: $2.3 million). The intrinsic value of options fully vested but not exercised at December 31, 2014, is $0.2 million and their average remaining term is 0.91 years. | ||||||||||||||||||
As of December 31, 2014, the unrecognized compensation costs relating to non-vested options granted under the Option Scheme was $nil (2013: $29,100). |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS | ||||||||
The Company, which was formed in 2003 as a wholly-owned subsidiary of Frontline, was partially spun-off in 2004 and its shares commenced trading on the New York Stock Exchange in June 2004. A significant proportion of the Company's business continues to be transacted with related parties. | |||||||||
The Company has had transactions with the following related parties, being companies in which our principal shareholders Hemen Holding Ltd. and Farahead Investment Inc. (hereafter jointly referred to as "Hemen") and companies associated with Hemen have a significant direct or indirect interest: | |||||||||
– Frontline | |||||||||
– | Frontline 2012 Limited ("Frontline 2012") | ||||||||
– Frontline Shipping, Frontline Shipping II, Frontline Shipping III (collectively Frontline Charterers) | |||||||||
– | Seadrill | ||||||||
– | NADL | ||||||||
– | Golden Ocean Group Limited ("Golden Ocean") | ||||||||
– | United Freight Carriers ("UFC" - which is a joint venture approximately 50% owned by Golden Ocean) | ||||||||
– | Deep Sea | ||||||||
– | Golar LNG Limited ("Golar") | ||||||||
From September 2014, Golar ceased to be a related party to the Company, following disassociation through the sale of shares held by a company associated with Hemen. | |||||||||
The Consolidated Balance Sheets include the following amounts due from and to related parties, excluding direct financing lease balances (see Note 15): | |||||||||
(in thousands of $) | 2014 | 2013 | |||||||
Amounts due from: | |||||||||
Frontline Charterers | 30,714 | — | |||||||
Frontline Ltd | 9,012 | 10,016 | |||||||
UFC | 232 | 770 | |||||||
Deep Sea | 1,338 | — | |||||||
NADL | — | 2,163 | |||||||
Seadrill | 111,195 | 300 | |||||||
Total amount due from related parties | 152,491 | 13,249 | |||||||
Loans to related parties - associated companies, long-term | |||||||||
SFL West Polaris | — | 100,383 | |||||||
SFL Deepwater | 100,036 | 115,222 | |||||||
SFL Hercules | 135,250 | 120,110 | |||||||
SFL Linus | 110,745 | 195,000 | |||||||
Total loans to related parties - associated companies, long-term | 346,031 | 530,715 | |||||||
Loans to related parties - others, long-term | |||||||||
Frontline Ltd | 79,294 | 48,847 | |||||||
Total loans to related parties - others, long-term | 79,294 | 48,847 | |||||||
Amounts due to: | |||||||||
Frontline Charterers | 196 | 815 | |||||||
Frontline Management | 848 | 1,011 | |||||||
Bluelot | — | 6,064 | |||||||
Corte Real | — | 6,018 | |||||||
Other related parties | 65 | 57 | |||||||
Total amount due to related parties | 1,109 | 13,965 | |||||||
SFL Deepwater, SFL Hercules and SFL Linus are wholly-owned subsidiaries which are not fully consolidated but are accounted for under the equity method as at December 31, 2014. In addition, at December 31, 2013, SFL West Polaris, Bluelot and Corte Real were also wholly-owned subsidiaries not fully consolidated but accounted for under the equity method (see Note 16: Investment in Associated Companies). The amounts due to Bluelot and Corte Real as at December 31, 2013, were the balances on the current accounts between those companies and Ship Finance. As described below in "Related party loans", at December 31, 2014 and 2013, the long-term loans from Ship Finance to SFL Deepwater, SFL Hercules, SFL Linus and SFL West Polaris (2013 only) are presented net of their respective current accounts. | |||||||||
Related party leasing and service contracts | |||||||||
As at December 31, 2014, 17 of the Company's vessels leased to the Frontline Charterers and two of its offshore supply vessels leased to subsidiaries of Deep Sea are recorded as direct financing leases. In addition, at December 31, 2014, four offshore supply vessels were leased to subsidiaries of Deep Sea and four drybulk carriers were leased to UFC under operating leases. | |||||||||
At December 31, 2014, the combined balance of net investments in direct financing leases with the Frontline Charterers and Deep Sea was $839.9 million (2013: $1,016.9 million) of which $37.5 million (2013: $45.1 million) represents short-term maturities. | |||||||||
At December 31, 2014, the net book value of assets leased under operating leases to Deep Sea and UFC was $198.9 million (2013: $212.9 million). | |||||||||
A summary of leasing revenues earned from the Frontline Charterers, Seadrill, Deep Sea and UFC is as follows: | |||||||||
(in millions of $) | 2014 | 2013 | 2012 | ||||||
Operating lease income | 26.4 | 24 | 20.7 | ||||||
Direct financing lease interest income | 45.4 | 55.4 | 59.2 | ||||||
Finance lease service revenue | 46.5 | 52.4 | 64.8 | ||||||
Direct financing lease repayments | 43.1 | 47.4 | 52.8 | ||||||
Profit sharing revenues | 33.8 | 0.8 | 52.2 | ||||||
In May 2013, the Company agreed to change the legal entity under the charters for five of the six vessels on charter to subsidiaries of Deep Sea Supply Plc. The new charterer is Deep Sea Supply Shipowning II B.V., a wholly-owned subsidiary of Deep Sea Supply BTG B.V., which is a joint venture owned 50% by Deep Sea Supply Plc. and 50% by BTG Pactual. The new charters became effective on May 31, 2013, and the main terms of the charters remain unchanged. | |||||||||
On December 30, 2011, amendments were made to the charter agreements with Frontline Shipping and Frontline Shipping II, which related to 28 vessels accounted for as direct financing leases. Four of those vessels were sold in 2012, four were sold in 2013, and a further three were sold in 2014. In terms of the amending agreements, the Company received a compensation payment of $106 million and agreed to a $6,500 per day reduction in the time charter rate of each vessel for the period January 1, 2012, to December 31, 2015. Thereafter, the charter rates revert to the previously agreed daily amounts. The leases were amended to reflect the compensation payment received and the reduction in future minimum lease payments to be received. | |||||||||
Prior to December 31, 2011, Frontline Shipping and Frontline Shipping II paid the Company profit sharing of 20% of their earnings on a time-charter equivalent basis from their use of the Company's fleet above average threshold charter rates each fiscal year. The amendments to the charter agreements made on December 30, 2011, increased the profit sharing percentage to 25% for future earnings above those threshold levels. Of the $106 million compensation payment received, $50 million represents a non-refundable advance relating to the 25% profit sharing agreement. The Company earned and recognized profit sharing revenue under these arrangements in the year ended December 31, 2014, of $nil (2013: $nil; 2012: $nil). As at December 31, 2014, there was $nil profit share accrued towards the reduction in the $50 million profit sharing advance, which must be reduced to $nil before the Company can recognize future income under the 25% profit sharing agreement. | |||||||||
The amendments to the charter agreements additionally provide that for the four year period of the temporary reduction in charter rates, Frontline Shipping and Frontline Shipping II will pay the Company 100% of any earnings on a time-charter equivalent basis above the temporarily reduced time charter rates, subject to a maximum of $6,500 per day per vessel. In the year ended December 31, 2014, the Company earned and recognized $32.7 million revenue under this arrangement (2013: $nil; 2012: $52.2 million), which is also reported under "Profit sharing revenues". | |||||||||
In the event that vessels on charter to the Frontline Charterers are agreed to be sold, the Company may either pay or receive compensation for the termination of the lease. In November 2014, three VLCCs, namely Front Comanche, Front Commerce and Front Opalia, on charter to the Frontline Charterers were sold and their leases cancelled, with agreed termination fees receivable of $49.2 million. Of the termination fees receivable, $10.5 million was received in cash and $38.7 million was received in the form of loan notes receivable over the approximately eight remaining years of the canceled leases. The initial face value of the notes received, on which interest at 7.25% is receivable, was $48.4 million and their initial fair value of $38.7 million was determined from analysis of projected cash flows, based on factors including the terms, provisions and other characteristics of the notes, default risk of the issuing entity, the fundamental financial and other characteristics of that entity, and the current economic environment and trading activity in the debt market. Subsequently, the notes are recorded at amortized cost (based on the fair value of the notes on the date of receipt) less adjustments for valuation losses. Any increase in estimated cash flows will be recorded as adjustments to the accredited yield. At December 31, 2014, no adjustments were made. | |||||||||
In January 2013 the non-double VLCC Edinburgh was sold and its lease cancelled, with an agreed termination fee payable of $7.8 million. In February 2013 and March 2013, the Suezmax tanker Front Pride and the OBO Front Guider were sold and their leases cancelled, with agreed termination fees receivable of $2.1 million and $11.7 million, respectively. In November 2013, the VLCCs Golden Victory and Front Champion were sold and their leases cancelled, with agreed termination fees receivable of $37.3 million and $30.4 million, respectively. Of the $67.7 million combined fees receivable for the two VLCCs sold in November 2013, $10.9 million was received in cash and $56.8 million was received in the form of loan notes receivable over the approximately eight remaining years of the cancelled leases. The initial face value of the notes received, on which interest at 7.25% is receivable, was $79.0 million and their initial fair value of $56.8 million was determined on the same basis as that used for the notes received in 2014. No adjustments were made to the valuation of these notes as at December 31, 2014 or December 31, 2013. | |||||||||
In the year ended December 31, 2014, the Company had four drybulk carriers operating on time-charters to UFC, which include profit sharing arrangements whereby the Company earns a 50% share of profits earned by the vessels above threshold levels. In the year ended December 31, 2014, the Company earned and recognized $1.1 million under this arrangement (2013: $0.8 million; 2012: $nil). | |||||||||
As at December 31, 2014, the Company was owed a total of $30.7 million (2013: $nil) by the Frontline Charterers in respect of leasing contracts and profit share. | |||||||||
At December 31, 2014, the Company was owed $9.0 million (2013: $10.0 million) by Frontline in respect of various short-term items, including the $7.8 million (2013: $7.6 million) carrying value of the short-term portion of loan notes receivable and $0.4 million (2013: $0.5 million) accrued interest on the loan notes. The Company also had a long-term loan of $79.3 million due from Frontline at December 31, 2014 (2013: $48.8 million), being the carrying value of the long-term portion of loan notes receivable. | |||||||||
At December 31, 2014, the Company was owed $0.2 million (2013: $0.8 million) by UFC in respect of profit share. | |||||||||
At December 31, 2014, the Company was owed $1.3 million (2013: $0.0 million) by Deep Sea in respect of leasing contracts. | |||||||||
At December 31, 2013 , the Company was owed $2.2 million by NADL (2014: $nil) by NADL in respect of pre-delivery loan charges relating to the harsh environment jack-up drilling rig delivered in February 2014 to the wholly-owned subsidiary SFL Linus, which is accounted for using the equity method (see Note 16). These charges were recoverable from NADL under the terms of the agreement to acquire the rig and lease it to them. | |||||||||
On December 30, 2014, the Company sold SFL West Polaris to Seadrill (see Note 16: Investment in Associated Companies). At December 31, 2014, the Company was owed $111.2 million by Seadrill in relation to this transaction. At December 31, 2013, the Company was owed $0.3 million by Seadrill in respect of commission receivable on a guarantee provided by the Company until July 2013 on the loan facility of Rig Finance II Limited, which was a subsidiary sold to Seadrill in June 2011. | |||||||||
The vessels leased to the Frontline Charterers are on time charter terms and for each such vessel the Company pays a management fee of $6,500 per day to Frontline Management (Bermuda) Ltd. ("Frontline Management"), a wholly owned subsidiary of Frontline. An exception to this arrangement is for any vessel leased to the Frontline Charterers which is sub-chartered on a bareboat basis, for which there is no management fee payable for the duration of the bareboat sub-charter. In the year ended December 31, 2014, the Company also had nine container vessels, fourteen drybulk carriers, two Suezmax tankers and two car carriers operating on time charter or in the spot market, for which the supervision of the technical management was sub-contracted to Frontline Management. In the year ended December 31, 2014, management fees payable to Frontline Management amounted to $48.4 million (2013: $54.2 million; 2012: $65.9 million). | |||||||||
In the year ended December 31, 2014, the Company had nine container vessels and fourteen drybulk carriers operating on time-charters, for which part of the operating management was sub-contracted to Golden Ocean. In the year ended December 31, 2014, management fees payable to Golden Ocean amounted to approximately $0.8 million (2013: $0.7 million; 2012: $0.5 million). Management fees are classified as vessel operating expenses in the consolidated statements of operations. | |||||||||
The Company paid a commission of 1% to Frontline Management in respect of all payments received in respect of the five-year sales-type leases on the Suezmax tankers Glorycrown and Everbright. This arrangement ended in September 2013, when the leases were terminated, following which we agreed to pay Frontline a management fee of 1.25% of chartering revenues. In 2014, $0.3 million was paid to Frontline Management pursuant to the new arrangement. Under the old arrangement $0.1 million was paid in 2013 and $0.1 million was paid in 2012. | |||||||||
The Company also paid $0.5 million in 2014 (2013: $0.4 million, 2012: $0.5 million) to Frontline Management for the provision of management and administrative services. | |||||||||
The Company pays fees to Frontline Management for the management supervision of some of its newbuildings, which in 2014 amounted to $2.9 million (2013: $2.4 million, 2012: $2.1 million). | |||||||||
The Company paid $0.4 million in 2014 (2013: $0.3 million; 2012: $0.4 million) to Frontline Management AS for the provision of office facilities in Oslo. | |||||||||
As at December 31, 2014, the Company owes Frontline Management and Frontline Management AS a combined total of $0.8 million (2013: $1.0 million) for various items, including newbuilding supervision fees, technical supervision fees and office costs. | |||||||||
The Company paid $0.1 million in 2014 (2013: $0.2 million; 2012: $0.2 million) to Golar Management UK Limited for the provision of office facilities in London. Golar Management UK Limited ceased to be a related party in October 2014. | |||||||||
Related party loans – associated companies | |||||||||
Ship Finance has entered into agreements with SFL West Polaris, SFL Deepwater, SFL Hercules and SFL Linus granting them loans of $145.0 million, $145.0 million, $145.0 million and $125.0 million, respectively. The loans to SFL West Polaris, SFL Deepwater and SFL Hercules are fixed interest rate loans, and the loan to SFL Linus was interest free until the newbuilding jack-up drilling rig was delivered to that company, since when it has been a fixed interest rate loan. These loans are repayable in full on July 11, 2023, October 1, 2023, October 1, 2023 and June 30, 2029, respectively, or earlier if the companies sell their drilling units. Ship Finance is entitled to take excess cash from these companies, and such amounts are recorded within their current accounts with Ship Finance. The loan agreements specify that the balance on the current accounts will have no interest applied and will be settled by offset against the eventual repayments of the fixed interest loans. In the year ended December 31, 2014, the Company received interest income on these loans of $6.5 million from SFL West Polaris (2013: $6.5 million; 2012: $6.5 million), $6.5 million from SFL Deepwater (2013: $9.6 million; 2012: $13.1 million), $6.5 million from SFL Hercules (2013: $3.5 million; 2012 $nil) and $4.9 million from SFL Linus (2013: $nil, 2012: $nil) totaling $24.4 million. SFL West Polaris ceased to be an associated company when it was sold on December 30, 2014. | |||||||||
Related party purchases and sales of vessels – 2014 | |||||||||
The ultra deepwater drilling unit West Polaris is owned by SFL West Polaris, which was a wholly-owned subsidiary of Ship Finance accounted for using the equity method (see Note 16: Investment in Associated Companies). In December 2014, Seadrill advised the Company of its intention to exercise a purchase option, and the transaction was effected on December 30, 2014 as the sale of SFL West Polaris. The Company recorded a gain of $6.1 million on the sale, which was recorded as "Gain on sale of investment in associated company". | |||||||||
Related party purchases and sales of vessels – 2013 | |||||||||
In July 2013, the Company announced the acquisition of the newbuilding harsh-environment jack-up drilling rig West Linus from a subsidiary of NADL, for a total acquisition cost of $600 million. The rig, which was delivered in February 2014, was leased back to a subsidiary of NADL for a period in excess of 15 years, and the subsidiary was granted four purchase options at dates during and at the end of the charter period. Additionally, Ship Finance has an option to sell the rig back to the subsidiary at the end of the charter period. The rig is owned by SFL Linus, a wholly-owned subsidiary of Ship Finance accounted for using the equity method (see Note 16: Investment in Associated Companies). |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS | ||||||||||||
In certain situations, the Company may enter into financial instruments to reduce the risk associated with fluctuations in interest rates and exchange rates. The Company has a portfolio of swaps which swap floating rate interest to fixed rate, and which also fix the Norwegian kroner to US dollar exchange rate applicable to the interest payable and principal repayment on the NOK bonds due 2017 and 2019. From a financial perspective these swaps hedge interest rate and exchange rate exposure. The counterparties to such contracts are DNB Bank, Nordea Bank Finland Plc, ABN AMRO Bank N.V., BNP Paribas, NIBC Bank N.V., Scotiabank Europe Plc, Skandinaviska Enskilda Banken AB (publ), ING Bank N.V., Merrill Lynch, Credit Agricole Corporate and Investment Bank, Danske Bank A/S and Swedbank AB (publ). Credit risk exists to the extent that the counterparties are unable to perform under the contracts, but this risk is considered remote as the counterparties are all banks which have provided the Company with loans. | |||||||||||||
The following tables present the fair values of the Company's derivative instruments that were designated as cash flow hedges and qualified as part of a hedging relationship, and those that were not designated: | |||||||||||||
(in thousands of $) | 2014 | 2013 | |||||||||||
Designated derivative instruments -short-term liabilities: | |||||||||||||
Interest rate swaps | 292 | 2,279 | |||||||||||
Cross currency interest rate swaps | — | 3,358 | |||||||||||
Non-designated derivative instruments -short-term liabilities: | |||||||||||||
Interest rate swaps | 225 | — | |||||||||||
Cross currency interest rate swaps | — | 68 | |||||||||||
Total derivative instruments - short-term liabilities | 517 | 5,705 | |||||||||||
Designated derivative instruments -long-term liabilities: | |||||||||||||
Interest rate swaps | 40,058 | 44,006 | |||||||||||
Cross currency interest rate swaps | 63,083 | 8,915 | |||||||||||
Non-designated derivative instruments -long-term liabilities: | |||||||||||||
Interest rate swaps | 1,565 | 3,183 | |||||||||||
Cross currency interest rate swaps | 1,973 | 386 | |||||||||||
Total derivative instruments - long-term liabilities | 106,679 | 56,490 | |||||||||||
(in thousands of $) | 2014 | 2013 | |||||||||||
Designated derivative instruments -long-term assets: | |||||||||||||
Interest rate swaps | 710 | 6,565 | |||||||||||
Cross currency interest rate swaps | — | — | |||||||||||
Non-designated derivative instruments -long-term assets: | |||||||||||||
Interest rate swaps | 2,584 | 10,068 | |||||||||||
Cross currency interest rate swaps | — | — | |||||||||||
Total derivative instruments - long-term assets | 3,294 | 16,633 | |||||||||||
Interest rate risk management | |||||||||||||
The Company manages its debt portfolio with interest rate swap agreements denominated in U.S. dollars and Norwegian kroner to achieve an overall desired position of fixed and floating interest rates. At December 31, 2014, the Company and its consolidated subsidiaries had entered into interest rate swap transactions, involving the payment of fixed rates in exchange for LIBOR or NIBOR, as summarized below. The summary includes all swap transactions, most of which are hedges against specific loans. | |||||||||||||
Notional Principal (in thousands of $) | Inception date | Maturity date | Fixed interest rate | ||||||||||
$122,632 (reducing to $122,632) | Mar-10 | Mar-15 | 1.96% - 2.22% | ||||||||||
$34,364 (reducing to $24,794) | Mar-08 | Aug-18 | 4.05% - 4.15% | ||||||||||
$38,048 (reducing to $23,394) | Apr-11 | Dec-18 | 2.13% - 2.80% | ||||||||||
$56,648 (reducing to $34,044) | May-11 | Jan-19 | 0.80% - 2.58% | ||||||||||
$100,000 (remaining at $100,000) | Aug-11 | Aug-21 | 2.50% - 2.93% | ||||||||||
$171,435 (reducing to $153,804) | Apr-12 | May-19 | 6 | % | |||||||||
$170,200 (terminating at $79,733) | May-12 | Aug-22 | 1.76% - 1.85% | ||||||||||
$105,436 (equivalent to NOK600 million) | Oct-12 | Oct-17 | 5.92% - 6.23% | * | |||||||||
$44,333 (reducing to $32,142) | Feb-13 | Dec-17 | 0.81% - 0.82% | ||||||||||
$100,000 (remaining at $100,000) | Mar-13 | Apr-23 | 1.85% - 1.97% | ||||||||||
$151,008 (equivalent to NOK900 million) | Mar-14 | Mar-19 | 6.03 | % | * | ||||||||
$108,375 (reducing to $70,125) | Dec-16 | Dec-21 | 1.86% - 3.33% | ||||||||||
$55,250 (reducing to $35,063) | Jan-17 | Jan-22 | 1.73% - 3.09% | ||||||||||
* | These swaps relate to the NOK600 million and the NOK900 million unsecured bonds, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. For the remaining swaps the fixed interest rate paid is exchanged for LIBOR, excluding margin on the underlying loans. | ||||||||||||
The interest rate swap with a notional principal of $108.4 million has an inception date of December 2016, and the interest rate swap with a notional principal of $55.3 million has an inception date of January, 2017. The total notional principal amount subject to swap agreements as at December 31, 2014, excluding those with inception dates in the future, was $1,094.1 million (2013: $1,188.0 million). | |||||||||||||
Foreign currency risk management | |||||||||||||
The Company has entered into currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner, which are designated as hedges against the NOK600 million senior unsecured bonds due 2017 and the NOK900 million senior unsecured bonds due 2019. | |||||||||||||
Principal Receivable | Principal Payable | Inception date | Maturity date | ||||||||||
NOK600 million | US$105.4 million | Oct-12 | Oct-17 | ||||||||||
NOK900 million | US$151.0 million | Mar-14 | Mar-19 | ||||||||||
Apart from the NOK600 million and NOK900 million senior unsecured bonds due 2017 and 2019, respectively, the majority of the Company's transactions, assets and liabilities are denominated in U.S. dollars, the functional currency of the Company. Other than the corresponding currency swap transactions summarized above, the Company has not entered into forward contracts for either transaction or translation risk. Accordingly, there is a risk that currency fluctuations could have an adverse effect on the Company's cash flows, financial condition and results of operations. | |||||||||||||
Fair Values | |||||||||||||
The carrying value and estimated fair value of the Company's financial assets and liabilities at December 31, 2014, and 2013, are as follows: | |||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||
(in thousands of $) | Carrying value | Fair value | Carrying value | Fair value | |||||||||
Non-derivatives: | |||||||||||||
Available for sale securities | 73,656 | 73,656 | 76,925 | 76,925 | |||||||||
Floating rate NOK bonds due 2014 | — | — | 71,854 | 72,032 | |||||||||
Floating rate NOK bonds due 2017 | 76,487 | 75,210 | 92,483 | 93,752 | |||||||||
Floating rate NOK bonds due 2019 | 119,277 | 108,542 | — | — | |||||||||
3.75% unsecured convertible bonds due 2016 | 125,000 | 124,375 | 125,000 | 130,589 | |||||||||
3.25% unsecured convertible bonds due 2018 | 350,000 | 335,563 | 350,000 | 359,307 | |||||||||
Derivatives: | |||||||||||||
Interest rate/ currency swap contracts – long-term receivables | 3,294 | 3,294 | 16,633 | 16,633 | |||||||||
Interest rate/ currency swap contracts – short-term payables | 517 | 517 | 5,705 | 5,705 | |||||||||
Interest rate/ currency swap contracts – long-term payables | 106,679 | 106,679 | 56,490 | 56,490 | |||||||||
The above short-term payables relating to interest rate/ currency swap contracts at December 31, 2014, include $0.2 million which relates to non-designated swap contracts (2013: $0.1 million), with the balance relating to designated hedges. The above long-term payables relating to interest rate/ currency swap contracts at December 31, 2014, include $3.5 million which relates to non-designated swap contracts (2013: $3.6 million), with the balance relating to designated hedges. The above long-term receivables relating to interest rate/ currency swap contracts at December 31, 2014, include $2.6 million which relates to non-designated swap contracts (2013: $10.1 million), with the balance relating to designated hedges. | |||||||||||||
In accordance with the accounting policy relating to interest rate and currency swaps (see Note 2 "Accounting Policies: Derivatives – Interest rate and currency swaps"), where the Company has designated the swap as a hedge, and to the extent that the hedge is effective, changes in the fair values of interest rate swaps are recognized in other comprehensive income. Changes in the fair value of other swaps and the ineffective portion of swaps designated as hedges are recognized in the consolidated statement of operations. | |||||||||||||
The above fair values of financial assets and liabilities as at December 31, 2014, are measured as follows: | |||||||||||||
Fair value measurements using | |||||||||||||
Total fair value as at December 31, 2014 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(in thousands of $) | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Available for sale securities | 73,656 | 49,913 | 23,743 | ||||||||||
Interest rate/ currency swap contracts - long-term receivables | 3,294 | 3,294 | |||||||||||
Total assets | 76,950 | 49,913 | 3,294 | 23,743 | |||||||||
Liabilities: | |||||||||||||
Floating rate NOK bonds due 2017 | 75,210 | 75,210 | |||||||||||
Floating rate NOK bonds due 2019 | 108,542 | 108,542 | |||||||||||
3.75% unsecured convertible bonds due 2016 | 124,375 | 124,375 | |||||||||||
3.25% unsecured convertible bonds due 2018 | 335,563 | 335,563 | |||||||||||
Interest rate/ currency swap contracts – short-term payables | 517 | 517 | |||||||||||
Interest rate/ currency swap contracts – long-term payables | 106,679 | 106,679 | |||||||||||
Total liabilities | 750,886 | 643,690 | 107,196 | — | |||||||||
The above fair values of financial assets and liabilities as at December 31, 2013, were measured as follows: | |||||||||||||
Fair value measurements using | |||||||||||||
Total fair value as at December 31, 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(in thousands of $) | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Available for sale securities | 76,925 | 56,379 | 20,546 | ||||||||||
Interest rate/ currency swap contracts – long-term receivables | 16,633 | 16,633 | |||||||||||
Total assets | 93,558 | 56,379 | 16,633 | 20,546 | |||||||||
Liabilities: | |||||||||||||
Floating rate NOK bonds due 2014 | 72,032 | 72,032 | |||||||||||
Floating rate NOK bonds due 2017 | 93,752 | 93,752 | |||||||||||
3.75% unsecured convertible bonds due 2016 | 130,589 | 130,589 | |||||||||||
3.25% unsecured convertible bonds due 2018 | 359,307 | 359,307 | |||||||||||
Interest rate/ currency swap contracts – short-term payables | 5,705 | 5,705 | |||||||||||
Interest rate/ currency swap contracts – long-term payables | 56,490 | 56,490 | |||||||||||
Total liabilities | 717,875 | 655,680 | 62,195 | — | |||||||||
ASC Topic 820 "Fair Value Measurement and Disclosures" ("ASC 820") emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy). | |||||||||||||
Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in level one that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability, other than quoted prices, such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which typically are based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||
Available for sale securities consist of (i) listed and unlisted corporate bonds and (ii) unlisted second lien interest-bearing loan notes. The fair value of the former consists of their aggregate market value as at the balance sheet date. The fair value of the latter is a Level 3 input and is determined from analysis of projected cash flows, based on factors including the terms, provisions and other characteristics of the notes, credit ratings and default risk of the issuing entity, the fundamental financial and other characteristics of that entity, and the current economic environment and trading activity in the debt market. The following table shows the changes in the fair values of the asset with Level 3 valuation during the year ended December 31, 2014: | |||||||||||||
(in thousands of $) | Unlisted Available for Sale Securities | ||||||||||||
Fair values - Level 3 inputs: | |||||||||||||
Balance as at December 31, 2013 | 20,546 | ||||||||||||
Interest income, receivable in form of unlisted second lien loan notes - see (a) below | 3,197 | ||||||||||||
Balance as at December 31, 2014 | 23,743 | ||||||||||||
(a) The interest income of $3.2 million is recognized in the Consolidated Statement of Operations under "Interest income - other". | |||||||||||||
There were no changes to any of the above valuations during the year ended December 31, 2014, no related realized or unrealized gains or losses recognized in "Other Comprehensive Income" and no transfers of items between Level 3 and other valuation levels. | |||||||||||||
The estimated fair values for the floating rate NOK bonds due 2014, 2017 and 2019, and the 3.75% and 3.25% unsecured convertible bonds are based on the quoted market prices as at the balance sheet date. | |||||||||||||
The fair value of interest rate and currency swap contracts is calculated using a well-established independent valuation technique applied to contracted cash flows and LIBOR/NIBOR interest rates as at the balance sheet date. | |||||||||||||
Concentrations of risk | |||||||||||||
There is a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Skandinaviska Enskilda Banken, ABN AMRO, Nordea, DNB and Credit Agricole Corporate and Investment Bank. However, the Company believes this risk is remote. | |||||||||||||
Since the Company was spun-off from Frontline in 2004, Frontline has accounted for a significant proportion of our operating revenues. In the year ended December 31, 2014, Frontline accounted for 37% of our operating revenues (2013: 38%, 2012: 54%). There is thus a concentration of revenue risk with Frontline. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES | |
Assets Pledged | ||
2014 | ||
Book value of assets pledged under ship mortgages (see Note 19) | $2,062 million | |
Other Contractual Commitments | ||
The Company has arranged insurance for the legal liability risks for its shipping activities with Gard P.& I. (Bermuda) Ltd, Assuranceforeningen Skuld (Gjensidig), The Steamship Mutual Underwriting Association Limited, The Korea Shipowner’s Mutual Protection & Indemnity Association, The West of England Ship Owners Mutual Insurance Association (Luxembourg), North of England P&I Association Limited, The Standard Club Europe Ltd and The United Kingdom Mutual Steam Ship Assurance Association (Europe) Limited, all of which are mutual protection and indemnity associations. The Company is subject to calls payable to the associations based on the Company’s claims record in addition to the claims records of all other members of the associations. A contingent liability exists to the extent that the claims records of the members of the associations in the aggregate show significant deterioration, which may result in additional calls on the members. | ||
SFL Deepwater, SFL Hercules and SFL Linus are wholly-owned subsidiaries of the Company, which are accounted for using the equity method. Accordingly, their assets and liabilities are not consolidated in the Company's Consolidated Balance Sheets, but are presented on a net basis under "Investment in associated companies" - see Note 16. As at December 31, 2014, their combined borrowings amounted to $1,038.3 million and the Company guaranteed $260.0 million of this debt. | ||
Following the sale of SFL West Polaris to Seadrill (see Note 16: Investment in Associated Companies) the Company has agreed to continue providing a guarantee on the entity's term loan facility until January 2018, or such earlier date as the facility is repaid in full. At December 31, 2014, the maximum liability under the guarantee mounted to $94.0 million. In January 2015, the amount of the guarantee reduced to $88.0 million. The guarantee is fully indemnified by Seadrill. | ||
At December 31, 2014, the Company had contractual commitments under newbuilding contracts totaling $85.0 million (2013: $794.8 million). The commitment as at December 31, 2013, included $405.0 million in respect of the harsh environment jack-up drilling rig West Linus, which was delivered in February 2014 to SFL Linus, a wholly-owned subsidiary accounted for using the equity method. There are no other contractual commitments at December 31, 2014. | ||
In November 2014, the Company together with other holders of Second Lien Senior Secured Notes in Horizon Lines, LLC signed an agreement to provide a two year $150.0 million senior secured bridging loan facility to The Pasha Group (“Pasha”). The bridging facility is provided in conjunction with the proposed acquisition of Horizon Lines, Inc. by Matson, Inc., which is dependent on Horizon Lines, Inc. selling some of its assets and operations to Pasha, and also subject to approval from U.S. antitrust authorities. The bridging facility, on which interest at fixed rates and also a commitment fee are payable, is provided to enable Pasha to meet its purchase commitments. Upon completion of the above transactions, all of the Company’s holding of Second Lien Notes in Horizon Lines, LLC will be fully repaid, including accumulated interest. The Company’s share of the total $150.0 million commitment under the bridging facility is $61.3 million. At December 31, 2014, no drawdown had been made under the bridging facility. | ||
The Company is routinely party both as plaintiff and defendant to laws suits in various jurisdictions under charter hire obligations arising from the operation of its vessels in the ordinary course of business. The Company believes that the resolution of such claims will not have a material adverse effect on its results of operations or financial position. The Company has not recognized any contingent gains or losses arising from the pending results of any such law suits. |
CONSOLIDATED_VARIABLE_INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2014 | |
CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | CONSOLIDATED VARIABLE INTEREST ENTITIES |
The Company's consolidated financial statements include 18 variable interest entities, all of which are wholly-owned subsidiaries. These subsidiaries own vessels with existing charters during which related and third parties have fixed price options to purchase the respective vessels, at dates varying from September 2017 to January 2020. It has been determined that the Company is the primary beneficiary of these entities, as none of the purchase options are deemed to be at bargain prices and none of the charters include sales options. | |
At December 31, 2014, the vessels of two of these entities are accounted for as direct financing leases with a combined carrying value of $65.0 million, unearned lease income of $16.0 million and estimated residual values of $21.7 million. The outstanding loan balances in these two entities total $28.6 million, of which the short-term portion is $4.8 million. | |
The other 16 fully consolidated variable interest entities own vessels which are accounted for as operating lease assets, with a total net book value at December 31, 2014, of $373.1 million. The outstanding loan balances in these entities total $197.5 million, of which the short-term portion is $18.8 million. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
In January 2015, the Company took delivery of two newbuilding 8,700 TEU container vessels, San Fernando and San Francisca, which immediately commenced seven year time-charters to Hamburg Süd. The vessel-owning subsidiaries drew down in full against the $128 million facility secured against the two vessels. | |
In January 2015, the Company purchased bonds with principal amounts totaling NOK7.0 million of its NOK600 million senior unsecured bonds due 2017, which are being held as treasury bonds. | |
In February 2015, the Company purchased bonds with principal amounts totaling NOK36.0 million of its NOK900 million senior unsecured bonds due 2019, which are being held as treasury bonds. | |
In January 2015, the indirect limited performance guarantee provided by Ship Finance International Limited in respect of the $210 million secured term loan facility relating to five container vessels became exhausted (see Note 19: Long-term Debt). In February 2015, the Company signed an agreement with the lenders under the loan facility whereby ownership of the vessels together with associated working capital was transferred to unrelated third parties, and Ship Finance International Limited and its subsidiaries have no future interest in the vessels or obligations under the loan facility. An impairment charge of $11.8 million was recorded against the five vessels in the fourth quarter of 2014. | |
On February 26, 2015, the Board of Ship Finance declared a dividend of $0.42 per share which was paid in cash on March 27, 2015. | |
In March 2015, two officers and two employees of the Company exercised options to acquire a total of 39,000 shares at a price of $10.71 per share, and 39,000 new shares were issued to satisfy the exercised options. |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). The consolidated financial statements include the assets and liabilities and results of operations of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated on consolidation. Where necessary, comparative figures for previous years have been reclassified to conform to changes in presentation in the current year. | |
Consolidation of variable interest entities | Consolidation of variable interest entities |
A variable interest entity is defined in Accounting Standards Codification ("ASC") Topic 810 "Consolidation" ("ASC 810") as a legal entity where either (a) the total equity at risk is not sufficient to permit the entity to finance its activities without additional subordinated support; (b) equity interest holders as a group lack either i) the power to direct the activities of the entity that most significantly impact on its economic success, ii) the obligation to absorb the expected losses of the entity, or iii) the right to receive the expected residual returns of the entity; or (c) the voting rights of some investors in the entity are not proportional to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. | |
ASC 810 requires a variable interest entity to be consolidated by its primary beneficiary, being the interest holder, if any, which has both (1) the power to direct the activities of the entity which most significantly impact on the entity's economic performance, and (2) the right to receive benefits or the obligation to absorb losses from the entity which could potentially be significant to the entity. | |
We evaluate our subsidiaries, and any other entities in which we hold a variable interest, in order to determine whether we are the primary beneficiary of the entity, and where it is determined that we are the primary beneficiary we fully consolidate the entity. | |
Investments in associated companies | Investments in associated companies |
Investments in companies over which the Company exercises significant influence but which it does not consolidate are accounted for using the equity method. The Company records its investments in equity-method investees on the consolidated balance sheets as "Investment in associated companies" and its share of the investees' earnings or losses in the consolidated statements of operations as "Equity in earnings of associated companies." At December 31, 2014, two ultra-deepwater drilling units and one jack-up drilling rig are owned by three wholly-owned subsidiaries of the Company that are accounted for using the equity method. | |
Use of accounting estimates | Use of accounting estimates |
The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Foreign currencies | Foreign currencies |
The Company's functional currency is the U.S. dollar as the majority of revenues are received in U.S. dollars and the majority of the Company's expenditures are made in U.S. dollars. The Company's reporting currency is also the U.S. dollar. Most of the Company's subsidiaries report in U.S. dollars. Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction gains or losses are included under "Other financial items" in the consolidated statements of operations. | |
Revenue and expense recognition | Revenue and expense recognition |
Revenues and expenses are recognized on the accrual basis. | |
The Company generates its revenues from the charter hire of its vessels and offshore related assets, and freight billings. Revenues are generated from time charter hire, bareboat charter hire, direct financing lease interest income, sales-type lease interest income, finance lease service revenues, profit sharing arrangements and freight billings, where contracts exist, the charter and voyage rates are predetermined, service is provided and the collection of the revenue is reasonably assured. | |
Each charter agreement is evaluated and classified as an operating or a capital lease. Rental receipts from operating leases are recognized in income as it is earned ratably on a straight line basis over the duration of the period of each charter as adjusted for off-hire days. | |
Rental payments from capital leases, which are either direct financing leases or sales-type leases, are allocated between lease service revenue, if applicable, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. | |
Voyage revenues are recognized ratably over the estimated length of each voyage, and accordingly are allocated between reporting periods based on the relative transit time in each period. Voyage expenses are recognized as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. | |
Vessel operating expenses are expensed as incurred. Under a time charter, specified voyage costs such as fuel and port charges are paid by the charterer and other non-specified voyage expenses, such as commissions, are paid by the Company. Vessel operating costs include crews, voyage costs not applicable to the charterer, maintenance and insurance and are paid by the Company. Under a bareboat charter, the charterer assumes responsibility for all voyage and vessel operating costs and risks of operation. If payment is received in advance from charterers, it is recorded as deferred charter revenue and recognized as revenue over the period to which it relates. | |
Amounts receivable from profit sharing arrangements with Frontline Shipping Limited ("Frontline Shipping") and Frontline Shipping II Limited ("Frontline Shipping II"), which are related parties, are accrued based on amounts earned at the reporting date. Profit share income has two elements: | |
- 25% profit sharing: Prior to December 31, 2011, Frontline Shipping and Frontline Shipping II paid the Company profit sharing of 20% of their earnings on a time-charter equivalent basis from their use of the Company's fleet above average threshold charter rates each fiscal year. The amendments to the charter agreements made on December 30, 2011, increased the profit sharing percentage to 25% for future earnings above those threshold levels as from January 1, 2012. In December 2011, the Company received a $106 million compensation payment from Frontline Ltd. ("Frontline"), of which $50 million represents a non-refundable advance relating to the 25% profit sharing agreement. | |
- Cash sweep: The amendments to the charter agreements additionally provide that for the four year period commencing January 1, 2012, of the temporary $6,500 per day per vessel reduction in charter rates, Frontline Shipping and Frontline Shipping II will pay the Company 100% of any earnings on a time-charter equivalent basis above the temporarily reduced time charter rates, subject to a maximum of $6,500 per day per vessel. | |
All contingent elements of rental income, such as profit share, cash sweep and interest rate adjustments, are recognized when the contingent conditions have materialized. | |
Cash and cash equivalents | Cash and cash equivalents |
For the purposes of the consolidated statements of cash flows, all demand and time deposits and highly liquid, low risk investments with original maturities of three months or less are considered equivalent to cash. | |
Available for sale securities | Available for sale securities |
Available for sale securities held by the Company consist of listed and unlisted corporate bonds, which earn interest income. Any premium paid on acquisition is amortized over the life of the bond. Available for sale securities are recorded at fair value, with unrealized gains and losses recorded as a separate component of other comprehensive income. The fair value of unlisted corporate bonds is determined from an analysis of projected cash flows, based on factors including the terms, provisions and other characteristics of the bonds, credit ratings and default risk of the issuing entity, the fundamental financial and other characteristics of that entity, and the current economic environment and trading activity in the debt market. | |
Trade accounts receivable | Trade accounts receivable |
The amount shown as trade accounts receivable at each balance sheet date includes receivables due from customers for hire of vessels and offshore related assets, net of allowance for doubtful balances. At each balance sheet date, all potentially uncollectable accounts are assessed individually to determine any allowance for doubtful receivables. At December 31, 2014 and 2013, no provision was made for doubtful receivables. | |
Inventories | Inventories |
Inventories are comprised principally of fuel and lubricating oils and are stated at the lower of cost and market value. Cost is determined on a first-in first-out basis. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Vessels and equipment (including operating lease assets) |
Vessels and equipment are recorded at historical cost less accumulated depreciation and, if appropriate, impairment charges. The cost of these assets less estimated residual value is depreciated on a straight-line basis over the estimated remaining economic useful life of the asset. The estimated economic useful life of our offshore assets, including drilling rigs and drillships, is 30 years and for all other vessels it is 25 years. | |
Where an asset is subject to an operating lease that includes fixed price purchase options, the projected net book value of the asset is compared to the option price at the various option dates. If any option price is less than the projected net book value at an option date, the initial depreciation schedule is amended so that the carrying value of the asset is written down on a straight line basis to the option price at the option date. If the option is not exercised, this process is repeated so as to amortize the remaining carrying value, on a straight line basis, to the estimated scrap value or the option price at the next option date, as appropriate. | |
This accounting policy for fixed assets has the effect that if an option is exercised there will be either a) no gain or loss on the sale of the asset or b) in the event that the option is exercised at a price in excess of the net book value at the option date, a gain will be reported in the statement of operations at the date of delivery to the new owners, under the heading "gain on sale of assets and termination of charters". | |
Office equipment is depreciated at 20% per annum on a reducing balance basis. | |
Newbuildings | Newbuildings |
The carrying value of vessels under construction ("newbuildings") represents the accumulated costs to the balance sheet date which the Company has paid by way of purchase installments and other capital expenditures together with capitalized loan interest and associated finance costs. No charge for depreciation is made until a newbuilding is put into operation. | |
Capitalized interest | Capitalized interest |
Interest expense is capitalized during the period of construction of newbuilding vessels based on accumulated expenditures for the applicable vessel at the Company's capitalization rate of interest. The amount of interest capitalized in an accounting period is determined by applying an interest rate ("the capitalization rate") to the average amount of accumulated expenditures for the vessel during the period. The capitalization rate used in an accounting period is based on the average three month London Interbank Offered Rate ("LIBOR"). The Company does not capitalize amounts in excess of actual interest expense incurred in the period. | |
Investment in Capital Leases | Investment in Capital Leases |
Leases (charters) of our vessels where we are the lessor are classified as either capital leases or operating leases, based on an assessment of the terms of the lease. For charters classified as capital leases, the minimum lease payments (reduced in the case of time-chartered vessels by projected vessel operating costs) plus the estimated residual value of the vessel are recorded as the gross investment in the capital lease. | |
For capital leases that are direct financing leases, the difference between the gross investment in the lease and the carrying value of the vessel is recorded as unearned lease interest income. The net investment in the lease consists of the gross investment less the unearned income. Over the period of the lease each charter payment received, net of vessel operating costs if applicable, is allocated between "lease interest income" and "repayment of investment in lease" in such a way as to produce a constant percentage rate of return on the balance of the net investment in the direct financing lease. Thus, as the balance of the net investment in each direct financing lease decreases, a lower proportion of each lease payment received is allocated to lease interest income and a greater proportion is allocated to lease repayment. For direct financing leases relating to time chartered vessels, the portion of each time charter payment received that relates to vessel operating costs is classified as "lease service revenue". | |
For capital leases that are sales-type leases, the difference between the gross investment in the lease and the present value of its components, i.e. the minimum lease payments and the estimated residual value, is recorded as unearned lease interest income. The discount rate used in determining the present values is the interest rate implicit in the lease. The present value of the minimum lease payments, computed using the interest rate implicit in the lease, is recorded as the sales price, from which the carrying value of the vessel at the commencement of the lease is deducted in order to determine the profit or loss on sale. As is the case for direct financing leases, the unearned lease interest income is amortized to income over the period of the lease so as to produce a constant periodic rate of return on the net investment in the lease. | |
Where a capital lease relates to a charter arrangement containing fixed price purchase options, the projected carrying value of the net investment in the lease is compared to the option price at the various option dates. If any option price is less than the projected net investment in the lease at an option date, the rate of amortization of unearned lease interest income is adjusted to reduce the net investment to the option price at the option date. If the option is not exercised, this process is repeated so as to reduce the net investment in the lease to the un-guaranteed residual value or the option price at the next option date, as appropriate. | |
This accounting policy for investments in capital leases has the effect that if an option is exercised there will either be a) no gain or loss on the exercise of the option or b) in the event that an option is exercised at a price in excess of the net investment in the lease at the option date, a gain will be reported in the statement of operations at the date of delivery to the new owners. | |
If the terms of an existing lease are agreed to be amended, other than by renewing the lease or extending its term, in a manner that would have resulted in a different classification of the lease had such amended terms been in effect at the lease inception, the amended lease agreement shall be considered to be a new lease agreement over the remainder of its term. If the terms of a capital lease are amended in a way that does not result in it being treated as a new operating lease agreement, the remaining minimum lease payments and, if appropriate, the estimated residual value will be amended to reflect the revised terms, with a corresponding increase or decrease in unearned income. | |
Other Investments | Other Long-Term Investments |
Other long-term investments are measured at fair value using the best available value indicators, and are included in "Other long-term assets" in the Consolidated Balance Sheets. The Company currently has two long-term investments. | |
One long-term investment consists of shares in a container vessel owner/operator which are not publicly traded, and the best estimate available for the valuation of this investment is the cost basis. When using this basis of valuation, the Company carries out regular reviews for possible impairment adjustments. Following such a review, an impairment adjustment was made to the carrying value of this asset in 2012, which is reported in the Consolidated Statements of Operations under "Long-term investment impairment charge" (see Note 5). | |
The other long-term investment consists of warrants to purchase shares in a U.S. company, which were received in 2012, together with other assets, as part of the consideration for the Company agreeing to terminate certain long-term charter agreements (see Note 9). Although shares in the U.S. company are traded on the over-the-counter market, the warrants are not listed. The Company considers that the best method of establishing the fair value of the warrants is to calculate their value in relation to the current market price of the underlying shares, taking into account the terms, restrictions and other features of the warrants, the fundamental financial and other characteristics of the issuing company, trading characteristics of the issuing company's shares, and actual sale transactions of comparable securities completed in secondary markets. The Company carries out regular reviews of the value of this investment, and adjusts the carrying value accordingly. If it is considered that the initial value of the warrants may not be recoverable, the Company records an impairment adjustment in the Consolidated Statements of Operations. Other changes in their value, which the Company believes to be temporary, are recorded as a separate component of other comprehensive income. In 2012, the Company concluded that the initial value of the warrants may not be recoverable and recorded an impairment charge, which is reported in the Consolidated Statement of Operations under "Long-term investment impairment charge" (see Note 5). | |
Deemed Equity Contributions | Deemed Equity Contributions |
The Company has accounted for the acquisition of vessels from Frontline at Frontline's historical carrying value. The difference between the historical carrying value and the net investment in the lease has been recorded as a deferred deemed equity contribution. This deferred deemed equity contribution is presented as a reduction in the net investment in direct financing leases in the balance sheet. This results from the related party nature of both the transfer of the vessel and the subsequent direct financing lease. The deferred deemed equity contribution is amortized as a credit to contributed surplus over the life of the new lease arrangement, as lease payments are applied to the principal balance of the lease receivable. | |
Impairment of long-lived assets, including other long-term investments | Impairment of long-lived assets, including other long-term investments |
The carrying value of long-lived assets, including other long-term investments, that are held by the Company are reviewed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For vessels, such indicators may include historically low spot charter rates and second hand vessel values. The Company assesses recoverability of the carrying value of the asset by estimating the future net cash flows expected to result from the asset, including eventual disposition, taking into account the possibility of any existing medium and long-term charter arrangements being terminated early. If the future expected net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the carrying value of the asset and its fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. The Company carried out a review of the carrying value of its vessels, drilling rigs and long-term investments in the year ended December 31, 2014, and concluded that the carrying values of five container vessels were impaired, and charges were taken against those assets. In the year ended December 31, 2012, reviews of the carrying value of long-lived assets indicated that the Company's long-term investments in shares in a container vessel owner/operator and warrants to purchase shares in a U.S. company were impaired, and charges were taken against those assets. No impairment loss was recorded in the year ended December 31, 2013. | |
Deferred charges | Deferred charges |
Loan costs, including debt arrangement fees, are capitalized and amortized on a straight line basis over the term of the relevant loan. The straight line basis of amortization approximates the effective interest method in the Company's statement of operations. Amortization of loan costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. Similarly, if a portion of a loan is repaid early, the corresponding portion of the unamortized related deferred charges is charged against income in the period in which the early repayment is made. | |
Convertible bonds | Convertible bonds |
The Company accounts for debt instruments with convertible features in accordance with the details and substance of the instruments at the time of their issuance. For convertible debt instruments issued at a substantial premium to equivalent instruments without conversion features, or those that may be settled in cash upon conversion, it is presumed that the premium or cash conversion option represents an equity component. Accordingly, the Company determines the carrying amounts of the liability and equity components of such convertible debt instruments by first determining the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an equity component. The carrying amount of the equity component representing the embedded conversion option is then determined by deducting the fair value of the liability component from the total proceeds from the issue. The resulting equity component is recorded, with a corresponding offset to debt discount which is subsequently amortized to interest cost using the effective interest method over the period the debt is expected to be outstanding as an additional non-cash interest expense. Transaction costs associated with the instrument are allocated pro-rata between the debt and equity components. | |
For conventional convertible bonds which do not have a cash conversion option or where no substantial premium is received on issuance, it may not be appropriate to split the bond into the liability and equity components. | |
Derivatives | Derivatives |
Interest rate and currency swaps | |
The Company enters into interest rate swap transactions from time to time to hedge a portion of its exposure to floating interest rates. These transactions involve the conversion of floating interest rates into fixed rates over the life of the transactions without an exchange of underlying principal. The Company also enters into currency swap transactions from time to time to hedge against the effects of exchange rate fluctuations on loan liabilities. Currency swap transactions involve the exchange of fixed amounts of other currencies for fixed US dollar amounts over the life of the transactions, including an exchange of underlying principal. The Company may also enter into a combination of interest and currency swaps "cross currency interest rate swaps". The fair values of the interest rate and currency swap contracts, including cross currency interest rate swaps, are recognized as assets or liabilities, and for certain of the Company's swaps the changes in fair values are recognized in the consolidated statements of operations. When the interest rate and/or currency swap or combination, qualifies for hedge accounting under ASC Topic 815 "Derivatives and Hedging" ("ASC 815"), and the Company has formally designated the swap as a hedge to the underlying loan, and when the hedge is effective, the changes in the fair value of the swap are recognized in other comprehensive income. If it becomes probable that the hedged forecasted transaction to which these swaps relate will not occur, the amounts in other comprehensive income will be reclassified into earnings immediately. | |
Financial Instruments | Financial Instruments |
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments, including most derivatives and long-term debt, standard market conventions and techniques such as options pricing models are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | |
Drydocking provisions | Drydocking provisions |
Normal vessel repair and maintenance costs are charged to expense when incurred. The Company recognizes the cost of a drydocking at the time the drydocking takes place, that is, it applies the "expense as incurred" method. | |
Earnings per share | Earnings per share |
Basic earnings per share ("EPS") is computed based on the income available to common stockholders and the weighted average number of shares outstanding for basic EPS. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. | |
Stock-based compensation | Share-based compensation |
The Company accounts for share-based payments in accordance with ASC Topic 718 "Compensation – Stock Compensation" ("ASC 718"), under which the fair value of stock options issued to employees is expensed over the period in which the options vest. The Company uses the simplified method for making estimates of the expected term of stock options. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Components of calculation of earnings per share | The components of the numerator for the calculation of basic and diluted EPS are as follows: | ||||||||
Year ended December 31 | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||
Basic: | |||||||||
Net income available to stockholders | 122,815 | 89,206 | 185,836 | ||||||
Diluted: | |||||||||
Net income available to stockholders | 122,815 | 89,206 | 185,836 | ||||||
Interest paid on 3.75% convertible bonds | 5,060 | 5,092 | 4,688 | ||||||
Interest paid on 3.25% convertible bonds | 17,371 | — | — | ||||||
145,246 | 94,298 | 190,524 | |||||||
The components of the denominator for the calculation of basic and diluted EPS are as follows: | |||||||||
Year ended December 31 | |||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||
Basic earnings per share: | |||||||||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 | ||||||
Diluted earnings per share: | |||||||||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 | ||||||
Effect of dilutive share options | 84 | 163 | 168 | ||||||
Effect of dilutive convertible debt | 23,332 | 5,753 | 5,106 | ||||||
116,747 | 95,424 | 85,868 | |||||||
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Leases, Operating [Abstract] | ||||||
Minimum future revenue to be received under non-cancelable operating leases | The minimum future revenues to be received under the Company's non-cancelable operating leases on its vessels as of December 31, 2014, are as follows: | |||||
(in thousands of $) | ||||||
Year ending December 31, | ||||||
2015 | 176,872 | |||||
2016 | 160,500 | |||||
2017 | 156,990 | |||||
2018 | 117,070 | |||||
2019 | 83,401 | |||||
Thereafter | 112,947 | |||||
Total minimum lease revenues | 807,780 | |||||
Cost and accumulated depreciation of vessels leased to third parties on operating leases | The cost and accumulated depreciation of vessels leased to third parties on operating leases at December 31, 2014 and 2013 were as follows: | |||||
(in thousands of $) | 2014 | 2013 | ||||
Cost | 1,715,510 | 1,360,605 | ||||
Accumulated depreciation | 338,377 | 270,989 | ||||
Vessels and equipment, net | 1,377,133 | 1,089,616 | ||||
GAIN_ON_SALE_OF_ASSETS_AND_TER1
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Gain (Loss) on Disposition of Assets [Abstract] | |||||||||
Gains on sale of assets and termination of charters | The Company has recorded gains on sale of assets and termination of charters as follows: | ||||||||
Year ended December 31 | |||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||
(Loss)/ gain on sale of assets | (1,384 | ) | 18,025 | 25,681 | |||||
Gain on termination of charters | 25,315 | — | 21,705 | ||||||
Total gain on sale of assets and termination of charters | 23,931 | 18,025 | 47,386 | ||||||
Realized gains/(losses) on sales of vessels | During the year ended December 31, 2014, the Company realized the following losses on sales of vessels: | ||||||||
(in thousands of $) | Sales price | Book value | Loss | ||||||
Vessel | |||||||||
Front Comanche | 38,835 | 39,235 | (400 | ) | |||||
Front Commerce | 37,884 | 38,371 | (487 | ) | |||||
Front Opalia | 39,363 | 39,860 | (497 | ) | |||||
116,082 | 117,466 | (1,384 | ) | ||||||
OTHER_FINANCIAL_ITEMS_Tables
OTHER FINANCIAL ITEMS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Other financial items | Other financial items comprise the following items: | ||||||||
Year ended December 31 | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||
Net increase/(decrease) in fair value of non-designated derivatives | (7,636 | ) | 7,726 | 6,493 | |||||
Net cash payments on non-designated derivatives | (7,196 | ) | (2,653 | ) | (179 | ) | |||
Net increase/(decrease) in fair value of designated derivatives (ineffective portion) | (63 | ) | 224 | 1,466 | |||||
Other items | (1,337 | ) | (3,294 | ) | (1,904 | ) | |||
Total other financial items | (16,232 | ) | 2,003 | 5,876 | |||||
AVAILABLE_FOR_SALE_SECURITIES_
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Investments, Debt and Equity Securities [Abstract] | ||||||
Available-for-sale debt securities | Marketable securities held by the Company are debt securities considered to be available-for-sale securities. | |||||
(in thousands of $) | 2014 | 2013 | ||||
Amortized cost | 80,743 | 75,657 | ||||
Accumulated net unrealized (loss)/gain | (7,087 | ) | 1,268 | |||
Carrying value | 73,656 | 76,925 | ||||
VESSELS_AND_EQUIPMENT_NET_Tabl
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Vessels and equipment | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Cost | 1,715,510 | 1,360,605 | ||||
Accumulated depreciation | 338,377 | 270,989 | ||||
Vessels and equipment, net | 1,377,133 | 1,089,616 | ||||
INVESTMENTS_IN_DIRECT_FINANCIN1
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||||||
Components of the investments in direct financing and sales-type leases | The following lists the components of the investments in direct financing leases as at December 31, 2014, and December 31, 2013: | |||||
(in thousands of $) | 2014 | 2013 | ||||
Total minimum lease payments to be received | 1,174,327 | 1,490,111 | ||||
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (330,056 | ) | (432,463 | ) | ||
Net minimum lease payments receivable | 844,271 | 1,057,648 | ||||
Estimated residual values of leased property (un-guaranteed) | 239,002 | 278,152 | ||||
Less: unearned income | (243,419 | ) | (318,910 | ) | ||
839,854 | 1,016,890 | |||||
Less: deferred deemed equity contribution | (86,585 | ) | (106,377 | ) | ||
Less: unamortized gains | (6,738 | ) | (7,105 | ) | ||
Total investment in direct financing and sales-type leases | 746,531 | 903,408 | ||||
Current portion | 37,517 | 45,148 | ||||
Long-term portion | 709,014 | 858,260 | ||||
746,531 | 903,408 | |||||
Minimum future gross revenues to be received under non-cancellable direct financing and sales-type leases | The minimum future gross revenues to be received under the Company's non-cancellable direct financing and sales-type leases as of December 31, 2014, are as follows: | |||||
(in thousands of $) | ||||||
Year ending December 31 | ||||||
2015 | 117,479 | |||||
2016 | 155,562 | |||||
2017 | 154,626 | |||||
2018 | 147,931 | |||||
2019 | 135,690 | |||||
Thereafter | 463,039 | |||||
Total minimum lease revenues | 1,174,327 | |||||
INVESTMENT_IN_ASSOCIATED_COMPA1
INVESTMENT IN ASSOCIATED COMPANIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||||||||||||
Percentage participation using the equity method of accounting | At December 31, 2014, 2013 and 2012, the Company had the following participation in investments that are recorded using the equity method: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
SFL West Polaris Limited | — | 100 | % | 100 | % | ||||||||||||||||
SFL Deepwater Ltd | 100 | % | 100 | % | 100 | % | |||||||||||||||
SFL Hercules Ltd | 100 | % | 100 | % | 100 | % | |||||||||||||||
SFL Linus Ltd | 100 | % | 100 | % | — | ||||||||||||||||
Bluelot Shipping Company Limited | — | 100 | % | 100 | % | ||||||||||||||||
SFL Corte Real Limited | — | 100 | % | 100 | % | ||||||||||||||||
Summarized financial statement information of equity method investees | Summarized balance sheet information of the Company's equity method investees is as follows: | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Current assets | 127,268 | 44,297 | — | 38,619 | 44,352 | — | — | ||||||||||||||
Non-current assets | 1,324,765 | 397,191 | — | 397,226 | 530,348 | — | — | ||||||||||||||
Total assets | 1,452,033 | 441,488 | — | 435,845 | 574,700 | — | — | ||||||||||||||
Current liabilities | 122,861 | 38,376 | — | 32,945 | 51,540 | — | — | ||||||||||||||
Non-current liabilities (2) | 1,275,715 | 371,147 | — | 391,500 | 513,068 | — | — | ||||||||||||||
Total liabilities | 1,398,576 | 409,523 | — | 424,445 | 564,608 | — | — | ||||||||||||||
Total shareholders' equity | 53,457 | 31,965 | — | 11,400 | 10,092 | — | — | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Current assets (1) | 205,916 | 94,981 | 34,412 | 56,886 | — | 9,780 | 9,857 | ||||||||||||||
Non-current assets | 1,516,033 | 432,755 | 458,558 | 429,720 | 195,000 | — | — | ||||||||||||||
Total assets | 1,721,949 | 527,736 | 492,970 | 486,606 | 195,000 | 9,780 | 9,857 | ||||||||||||||
Current liabilities | 159,847 | 85,240 | 38,337 | 29,101 | — | 3,523 | 3,646 | ||||||||||||||
Non-current liabilities (2) | 1,521,115 | 418,554 | 451,384 | 453,860 | 197,317 | — | — | ||||||||||||||
Total liabilities | 1,680,962 | 503,794 | 489,721 | 482,961 | 197,317 | 3,523 | 3,646 | ||||||||||||||
Total shareholders' equity | 40,987 | 23,942 | 3,249 | 3,645 | (2,317 | ) | 6,257 | 6,211 | |||||||||||||
-1 | Bluelot and Corte Real current assets at December 31, 2013, include $6.1 million and $6.0 million due from Ship Finance, respectively (see Note 23: Related party transactions). | ||||||||||||||||||||
-2 | SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2014, include $100.0 million (2013: $115.2 million), $135.3 million (2013: $120.1 million) and $110.7 million (2013: $195.0 million) due to Ship Finance (see Note 23: Related party transactions). SFL West Polaris non-current liabilities at December 31, 2013, includes $100.4 million due to Ship Finance (see Note 23: Related party transactions). In the year ended December 31, 2013, SFL Deepwater and SFL West Polaris paid dividends of $150.0 million (2014:$nil; 2012:$nil) and $73.0 million (2014: $nil; 2012:$nil), respectively. | ||||||||||||||||||||
Summarized statement of operations information of the Company's equity method investees is shown below. | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Operating revenues | 108,632 | 24,917 | 22,251 | 24,565 | 33,236 | 1,171 | 2,492 | ||||||||||||||
Net operating revenues | 105,567 | 24,905 | 22,234 | 24,544 | 33,221 | 232 | 431 | ||||||||||||||
Net income (3) | 33,497 | 8,023 | 4,643 | 7,755 | 12,413 | 232 | 431 | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | SFL Hercules | SFL Linus | Bluelot | Corte Real | ||||||||||||||
Operating revenues | 122,792 | 46,145 | 23,701 | 13,832 | — | 19,490 | 19,624 | ||||||||||||||
Net operating revenues | 88,121 | 46,109 | 23,681 | 13,808 | — | 2,261 | 2,262 | ||||||||||||||
Net income (3) | 28,200 | 17,747 | 2,324 | 3,645 | (38 | ) | 2,261 | 2,261 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands of $) | TOTAL | SFL Deepwater | SFL West Polaris | Bluelot | Corte Real | ||||||||||||||||
Operating revenues | 146,263 | 69,508 | 37,421 | 19,612 | 19,722 | ||||||||||||||||
Net operating revenues | 111,434 | 69,485 | 37,418 | 2,266 | 2,265 | ||||||||||||||||
Net income (3) | 43,492 | 28,243 | 10,719 | 2,266 | 2,264 | ||||||||||||||||
-3 | The net income of SFL Deepwater, SFL West Polaris, SFL Hercules and SFL Linus in the year ended December 31, 2014, includes interest payable to Ship Finance amounting to $6.5 million (2013: $9.6 million; 2012: $13.1 million), $6.5 million (2013: $6.5 million; 2012: $6.5 million), $6.5 million (2013: $3.5 million; 2012: $nil) and $4.9 million (2013: $nil; 2012: $nil), respectively - see Note 23 "Related party transactions". |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accrued Liabilities [Abstract] | ||||||
Schedule of Accrued Liabilities | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Vessel operating expenses | 6,305 | 1,959 | ||||
Administrative expenses | 1,330 | 799 | ||||
Interest expense | 10,555 | 11,074 | ||||
18,190 | 13,832 | |||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Liabilities Disclosure [Abstract] | ||||||
Schedule of Other Current Liabilities | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Deferred charter revenue | 4,868 | 3,744 | ||||
Prepaid charter income | 3,114 | 822 | ||||
Employee taxes | 899 | 773 | ||||
Other | 211 | 209 | ||||
9,092 | 5,548 | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Schedule of long-term debt | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Long-term debt: | ||||||
Norwegian kroner 500 million senior unsecured floating rate bonds due 2014 | — | 71,854 | ||||
3.75% senior unsecured convertible bonds due 2016 | 125,000 | 125,000 | ||||
Norwegian kroner 600 million senior unsecured floating rate bonds due 2017 | 76,487 | 92,843 | ||||
3.25% senior unsecured convertible bonds due 2018 | 350,000 | 350,000 | ||||
Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 | 119,277 | — | ||||
U.S. dollar denominated floating rate debt (LIBOR plus margin) due through 2021 | 1,061,695 | 1,097,182 | ||||
1,732,459 | 1,736,879 | |||||
Less: current portion of long-term debt | (182,415 | ) | (389,888 | ) | ||
1,550,044 | 1,346,991 | |||||
Schedule of maturities of debt | The outstanding debt as of December 31, 2014, is repayable as follows: | |||||
(in thousands of $) | ||||||
Year ending December 31 | ||||||
2015 | 182,415 | |||||
2016 | 204,218 | |||||
2017 | 187,205 | |||||
2018 | 582,980 | |||||
2019 | 254,591 | |||||
Thereafter | 321,050 | |||||
Total debt | 1,732,459 | |||||
OTHER_LONG_TERM_LIABILITIES_Ta
OTHER LONG TERM LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Liabilities Disclosure [Abstract] | ||||||
Schedule of Other Long Term Liabilities | ||||||
(in thousands of $) | 2014 | 2013 | ||||
Unamortized sellers' credit | 15,042 | 18,125 | ||||
Other items | 2,542 | 4 | ||||
17,584 | 18,129 | |||||
SHARE_CAPITAL_ADDITIONAL_PAIDI1
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Schedule of Share Capital | Authorized share capital is as follows: | |||||
(in thousands of $, except share data) | 2014 | 2013 | ||||
125,000,000 common shares of $1.00 par value each | 125,000 | 125,000 | ||||
Issued and fully paid share capital is as follows: | ||||||
(in thousands of $, except share data) | 2014 | 2013 | ||||
93,404,000 common shares of $1.00 par value each (2013: 93,260,000 shares) | 93,404 | 93,260 | ||||
SHARE_OPTION_PLAN_Tables
SHARE OPTION PLAN (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Summary of share option transactions | The following summarizes share option transactions related to the Option Scheme in 2014, 2013 and 2012: | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Options | Weighted average exercise price $ | Options | Weighted average exercise price $ | Options | Weighted average exercise price $ | |||||||||||||
Options outstanding at beginning of year | 423,000 | 9.99 | 498,000 | 10.27 | 830,500 | 11.25 | ||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||
Exercised | (224,000 | ) | 5.41 | (75,000 | ) | 5.29 | (260,000 | ) | 7.17 | |||||||||
Forfeited | (10,000 | ) | 5.56 | — | — | (72,500 | ) | 18.05 | ||||||||||
Options outstanding at end of year | 189,000 | 13.17 | 423,000 | 9.99 | 498,000 | 10.27 | ||||||||||||
Exercisable at end of year | 189,000 | 13.17 | 374,333 | 9.22 | 376,668 | 8.29 | ||||||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Amounts due from and to related parties, excluding direct financing lease balances | The Consolidated Balance Sheets include the following amounts due from and to related parties, excluding direct financing lease balances (see Note 15): | ||||||||
(in thousands of $) | 2014 | 2013 | |||||||
Amounts due from: | |||||||||
Frontline Charterers | 30,714 | — | |||||||
Frontline Ltd | 9,012 | 10,016 | |||||||
UFC | 232 | 770 | |||||||
Deep Sea | 1,338 | — | |||||||
NADL | — | 2,163 | |||||||
Seadrill | 111,195 | 300 | |||||||
Total amount due from related parties | 152,491 | 13,249 | |||||||
Loans to related parties - associated companies, long-term | |||||||||
SFL West Polaris | — | 100,383 | |||||||
SFL Deepwater | 100,036 | 115,222 | |||||||
SFL Hercules | 135,250 | 120,110 | |||||||
SFL Linus | 110,745 | 195,000 | |||||||
Total loans to related parties - associated companies, long-term | 346,031 | 530,715 | |||||||
Loans to related parties - others, long-term | |||||||||
Frontline Ltd | 79,294 | 48,847 | |||||||
Total loans to related parties - others, long-term | 79,294 | 48,847 | |||||||
Amounts due to: | |||||||||
Frontline Charterers | 196 | 815 | |||||||
Frontline Management | 848 | 1,011 | |||||||
Bluelot | — | 6,064 | |||||||
Corte Real | — | 6,018 | |||||||
Other related parties | 65 | 57 | |||||||
Total amount due to related parties | 1,109 | 13,965 | |||||||
Summary of leasing revenues earned from related parties | A summary of leasing revenues earned from the Frontline Charterers, Seadrill, Deep Sea and UFC is as follows: | ||||||||
(in millions of $) | 2014 | 2013 | 2012 | ||||||
Operating lease income | 26.4 | 24 | 20.7 | ||||||
Direct financing lease interest income | 45.4 | 55.4 | 59.2 | ||||||
Finance lease service revenue | 46.5 | 52.4 | 64.8 | ||||||
Direct financing lease repayments | 43.1 | 47.4 | 52.8 | ||||||
Profit sharing revenues | 33.8 | 0.8 | 52.2 | ||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Fair values of derivative instruments designated and not designated as cash flow hedges | The following tables present the fair values of the Company's derivative instruments that were designated as cash flow hedges and qualified as part of a hedging relationship, and those that were not designated: | ||||||||||||
(in thousands of $) | 2014 | 2013 | |||||||||||
Designated derivative instruments -short-term liabilities: | |||||||||||||
Interest rate swaps | 292 | 2,279 | |||||||||||
Cross currency interest rate swaps | — | 3,358 | |||||||||||
Non-designated derivative instruments -short-term liabilities: | |||||||||||||
Interest rate swaps | 225 | — | |||||||||||
Cross currency interest rate swaps | — | 68 | |||||||||||
Total derivative instruments - short-term liabilities | 517 | 5,705 | |||||||||||
Designated derivative instruments -long-term liabilities: | |||||||||||||
Interest rate swaps | 40,058 | 44,006 | |||||||||||
Cross currency interest rate swaps | 63,083 | 8,915 | |||||||||||
Non-designated derivative instruments -long-term liabilities: | |||||||||||||
Interest rate swaps | 1,565 | 3,183 | |||||||||||
Cross currency interest rate swaps | 1,973 | 386 | |||||||||||
Total derivative instruments - long-term liabilities | 106,679 | 56,490 | |||||||||||
(in thousands of $) | 2014 | 2013 | |||||||||||
Designated derivative instruments -long-term assets: | |||||||||||||
Interest rate swaps | 710 | 6,565 | |||||||||||
Cross currency interest rate swaps | — | — | |||||||||||
Non-designated derivative instruments -long-term assets: | |||||||||||||
Interest rate swaps | 2,584 | 10,068 | |||||||||||
Cross currency interest rate swaps | — | — | |||||||||||
Total derivative instruments - long-term assets | 3,294 | 16,633 | |||||||||||
Schedule of interest rate swap transactions designated as hedges against specific loans | The summary includes all swap transactions, most of which are hedges against specific loans. | ||||||||||||
Notional Principal (in thousands of $) | Inception date | Maturity date | Fixed interest rate | ||||||||||
$122,632 (reducing to $122,632) | Mar-10 | Mar-15 | 1.96% - 2.22% | ||||||||||
$34,364 (reducing to $24,794) | Mar-08 | Aug-18 | 4.05% - 4.15% | ||||||||||
$38,048 (reducing to $23,394) | Apr-11 | Dec-18 | 2.13% - 2.80% | ||||||||||
$56,648 (reducing to $34,044) | May-11 | Jan-19 | 0.80% - 2.58% | ||||||||||
$100,000 (remaining at $100,000) | Aug-11 | Aug-21 | 2.50% - 2.93% | ||||||||||
$171,435 (reducing to $153,804) | Apr-12 | May-19 | 6 | % | |||||||||
$170,200 (terminating at $79,733) | May-12 | Aug-22 | 1.76% - 1.85% | ||||||||||
$105,436 (equivalent to NOK600 million) | Oct-12 | Oct-17 | 5.92% - 6.23% | * | |||||||||
$44,333 (reducing to $32,142) | Feb-13 | Dec-17 | 0.81% - 0.82% | ||||||||||
$100,000 (remaining at $100,000) | Mar-13 | Apr-23 | 1.85% - 1.97% | ||||||||||
$151,008 (equivalent to NOK900 million) | Mar-14 | Mar-19 | 6.03 | % | * | ||||||||
$108,375 (reducing to $70,125) | Dec-16 | Dec-21 | 1.86% - 3.33% | ||||||||||
$55,250 (reducing to $35,063) | Jan-17 | Jan-22 | 1.73% - 3.09% | ||||||||||
* | These swaps relate to the NOK600 million and the NOK900 million unsecured bonds, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. For the remaining swaps the fixed interest rate paid is exchanged for LIBOR, excluding margin on the underlying loans. | ||||||||||||
Schedule of currency swap transactions | The Company has entered into currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner, which are designated as hedges against the NOK600 million senior unsecured bonds due 2017 and the NOK900 million senior unsecured bonds due 2019. | ||||||||||||
Principal Receivable | Principal Payable | Inception date | Maturity date | ||||||||||
NOK600 million | US$105.4 million | Oct-12 | Oct-17 | ||||||||||
NOK900 million | US$151.0 million | Mar-14 | Mar-19 | ||||||||||
Schedule of carrying value and estimated fair value of financial assets and liabilities | The carrying value and estimated fair value of the Company's financial assets and liabilities at December 31, 2014, and 2013, are as follows: | ||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||
(in thousands of $) | Carrying value | Fair value | Carrying value | Fair value | |||||||||
Non-derivatives: | |||||||||||||
Available for sale securities | 73,656 | 73,656 | 76,925 | 76,925 | |||||||||
Floating rate NOK bonds due 2014 | — | — | 71,854 | 72,032 | |||||||||
Floating rate NOK bonds due 2017 | 76,487 | 75,210 | 92,483 | 93,752 | |||||||||
Floating rate NOK bonds due 2019 | 119,277 | 108,542 | — | — | |||||||||
3.75% unsecured convertible bonds due 2016 | 125,000 | 124,375 | 125,000 | 130,589 | |||||||||
3.25% unsecured convertible bonds due 2018 | 350,000 | 335,563 | 350,000 | 359,307 | |||||||||
Derivatives: | |||||||||||||
Interest rate/ currency swap contracts – long-term receivables | 3,294 | 3,294 | 16,633 | 16,633 | |||||||||
Interest rate/ currency swap contracts – short-term payables | 517 | 517 | 5,705 | 5,705 | |||||||||
Interest rate/ currency swap contracts – long-term payables | 106,679 | 106,679 | 56,490 | 56,490 | |||||||||
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The above fair values of financial assets and liabilities as at December 31, 2014, are measured as follows: | ||||||||||||
Fair value measurements using | |||||||||||||
Total fair value as at December 31, 2014 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(in thousands of $) | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Available for sale securities | 73,656 | 49,913 | 23,743 | ||||||||||
Interest rate/ currency swap contracts - long-term receivables | 3,294 | 3,294 | |||||||||||
Total assets | 76,950 | 49,913 | 3,294 | 23,743 | |||||||||
Liabilities: | |||||||||||||
Floating rate NOK bonds due 2017 | 75,210 | 75,210 | |||||||||||
Floating rate NOK bonds due 2019 | 108,542 | 108,542 | |||||||||||
3.75% unsecured convertible bonds due 2016 | 124,375 | 124,375 | |||||||||||
3.25% unsecured convertible bonds due 2018 | 335,563 | 335,563 | |||||||||||
Interest rate/ currency swap contracts – short-term payables | 517 | 517 | |||||||||||
Interest rate/ currency swap contracts – long-term payables | 106,679 | 106,679 | |||||||||||
Total liabilities | 750,886 | 643,690 | 107,196 | — | |||||||||
The above fair values of financial assets and liabilities as at December 31, 2013, were measured as follows: | |||||||||||||
Fair value measurements using | |||||||||||||
Total fair value as at December 31, 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(in thousands of $) | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Available for sale securities | 76,925 | 56,379 | 20,546 | ||||||||||
Interest rate/ currency swap contracts – long-term receivables | 16,633 | 16,633 | |||||||||||
Total assets | 93,558 | 56,379 | 16,633 | 20,546 | |||||||||
Liabilities: | |||||||||||||
Floating rate NOK bonds due 2014 | 72,032 | 72,032 | |||||||||||
Floating rate NOK bonds due 2017 | 93,752 | 93,752 | |||||||||||
3.75% unsecured convertible bonds due 2016 | 130,589 | 130,589 | |||||||||||
3.25% unsecured convertible bonds due 2018 | 359,307 | 359,307 | |||||||||||
Interest rate/ currency swap contracts – short-term payables | 5,705 | 5,705 | |||||||||||
Interest rate/ currency swap contracts – long-term payables | 56,490 | 56,490 | |||||||||||
Total liabilities | 717,875 | 655,680 | 62,195 | — | |||||||||
Schedule of changes in the fair values of the asset with Level 3 valuation | he following table shows the changes in the fair values of the asset with Level 3 valuation during the year ended December 31, 2014: | ||||||||||||
(in thousands of $) | Unlisted Available for Sale Securities | ||||||||||||
Fair values - Level 3 inputs: | |||||||||||||
Balance as at December 31, 2013 | 20,546 | ||||||||||||
Interest income, receivable in form of unlisted second lien loan notes - see (a) below | 3,197 | ||||||||||||
Balance as at December 31, 2014 | 23,743 | ||||||||||||
(a) The interest income of $3.2 million is recognized in the Consolidated Statement of Operations under "Interest income - other". |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of assets pledged | Assets Pledged | |
2014 | ||
Book value of assets pledged under ship mortgages (see Note 19) | $2,062 million |
GENERAL_Details
GENERAL (Details) | Dec. 31, 2014 |
drilling_rigs | |
tankers | |
carriers | |
vessel | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of very large crude oil carriers owned | 12 |
Number of Suezmax crude oil carriers owned | 7 |
Number of Supramax drybulk carriers owned | 5 |
Number of Handysize drybulk carriers owned | 7 |
Number of Kamsarmax drybulk carriers owned | 2 |
Number of container vessels owned | 20 |
Number of car carriers | 2 |
Number of jack-up drilling rigs owned | 2 |
Number of ultra-deepwater drilling units owned by wholly-owned subsidiaries accounted for using the equity method | 2 |
Number of jack-up drilling rigs owned by wholly-owned subsidiaries account for using the equity method | 1 |
Number of offshore supply vessels owned | 6 |
Number of chemical tankers owned | 2 |
Number of wholly-owned subsidiaries that have chartered-in vessels on a long-term bareboat basis | 3 |
Number of container vessels contracted to be acquired | 2 |
ACCOUNTING_POLICIES_Related_Pa
ACCOUNTING POLICIES (Related Party) (Details) (Frontline Charterers [Member], USD $) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | |
Frontline Charterers [Member] | |||
Related Party Transaction [Line Items] | |||
Profit sharing percentage of earnings from Frontline for use of fleet | 20.00% | ||
Increase profit sharing percentage of earnings from Frontline for use of fleet (in hundredths) | 25.00% | ||
Compensation payment received | $106,000,000 | ||
Non-refundable advance relating to the profit sharing agreement | 50,000,000 | ||
Period of temporary reduction in daily time charter rates | 4 years | ||
Agreed Temporary Reduction in Daily Time Charter Rates | 6,500 | ||
Maximum daily amount to which temporary earnings-related 100% payment applies | $6,500 |
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Number of ultra deepwater drilling units owned | 2 | |
Number of wholly-owned subsidiaries that own drilling rigs | 3 | |
Number of jack-up drilling rigs owned by wholly-owned subsidiaries account for using the equity method | 1 | |
Property, Plant and Equipment [Line Items] | ||
Allowance for Doubtful Accounts Receivable | 0 | $0 |
Number of container vessels impaired | 5 | |
Number of long-term investments in shares which are not publicly traded | 2 | |
Offshore assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated economic useful life (in years) | 30 years | |
All other vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated economic useful life (in years) | 25 years | |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation, rate | 20.00% |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
LONGTERM_INVESTMENT_IMPAIRMENT1
LONG-TERM INVESTMENT IMPAIRMENT CHARGE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Jun. 30, 2014 | |
Investment | |||||||
Gain (Loss) on Investments [Line Items] | |||||||
Long-term investment impairment charge | $500,000 | $2,900,000 | $0 | $0 | $3,353,000 | ||
Number of long-term investments impaired dwc | 2 | ||||||
Other long-term assets | 8,581,000 | 1,235,000 | |||||
Estimate of Fair Value Measurement [Member] | |||||||
Gain (Loss) on Investments [Line Items] | |||||||
Fair value of long term investments | 0 | ||||||
Non-Publicly Traded Company [Member] | |||||||
Gain (Loss) on Investments [Line Items] | |||||||
Investments, carrying value | 0 | 0 | |||||
Warrants Acquired to Purchase Company Shares [Member] | |||||||
Gain (Loss) on Investments [Line Items] | |||||||
Investments, carrying value | 1,200,000 | 1,200,000 | |||||
Other long-term assets | $1,700,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic: | |||
Net income available to stockholders | $122,815 | $89,206 | $185,836 |
Diluted: | |||
Interest paid on 3.75% convertible bonds | 5,060 | 5,092 | 4,688 |
InterestPaidOn3.25%ConvertibleBonds | 17,371 | 0 | 0 |
Net income available to stockholders, diluted | $145,246 | $94,298 | $190,524 |
Basic earnings per share: | |||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 |
Diluted earnings per share: | |||
Weighted average number of common shares outstanding | 93,331 | 89,508 | 80,594 |
Effect of dilutive share options | 84 | 163 | 168 |
Effect of dilutive convertible debt | 23,332 | 5,753 | 5,106 |
Weighted average number of diluted common shares outstanding | 116,747 | 95,424 | 85,868 |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE (Narrative) (Details) (Convertible Debt [Member]) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
3.75% Convertible Bond [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stated interest rate | 3.75% | 3.75% | 3.75% |
3.25% Convertible Bond | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stated interest rate | 3.25% | 3.25% | 0.00% |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
containership | |||
Leases, Operating [Abstract] | |||
Asset Impairment Charges | $11,800 | $0 | $0 |
Minimum future revenues to be received under non-cancelable operating leases [Abstract] | |||
2014 | 176,872 | ||
2015 | 160,500 | ||
2016 | 156,990 | ||
2017 | 117,070 | ||
2018 | 83,401 | ||
Thereafter | 112,947 | ||
Total minimum lease revenues | 807,780 | ||
Cost and accumulated depreciation of vessels leased on operating leases [Abstract] | |||
Cost | 1,715,510 | 1,360,605 | |
Accumulated depreciation | 338,377 | 270,989 | |
Vessels and equipment, net | $1,377,133 | $1,089,616 | |
Number of container vessels impaired | 5 |
GAIN_ON_SALE_OF_ASSETS_AND_TER2
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Sale of Assets and Termination of Charters) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 |
containership | ||||
Gain (Loss) on Disposition of Assets [Abstract] | ||||
(Loss)/ gain on sale of assets | ($1,384) | $18,025 | $25,681 | |
Gain on termination of charters | 25,315 | 0 | 21,705 | |
Total gain on sale of assets and termination of charters | $23,931 | $18,025 | $47,386 | |
Number of container vessels with charter agreement terminated | 5 |
GAIN_ON_SALE_OF_ASSETS_AND_TER3
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Gain on Sale of Vessels) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2014 | Nov. 30, 2013 |
vessel | vessels | ||||
Significant Acquisitions and Disposals [Line Items] | |||||
Sales price | $116,082 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 117,466 | ||||
Loss | -1,384 | 18,025 | 25,681 | ||
Number of vessels sold | 2 | 2 | |||
Sale of VLCC Front Comanche [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Sales price | -38,835 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 39,235 | ||||
Loss | -400 | ||||
Sale of VLCC Front Commerce [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Sales price | -37,884 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 38,371 | ||||
Loss | -487 | ||||
Sale of VLCC Front Opalia [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Sales price | -39,363 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 39,860 | ||||
Loss | ($497) | ||||
Ore-Bulk-Oil (OBO) Carriers [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Number of vessels sold | 1 | 4 | |||
Single hull Very Large Crude Carrier VLCC [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Number of vessels sold | 1 | ||||
Very Large Crude Carriers (VLCC) [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Number of vessels sold | 2 | 2 | |||
Sale of Suezmax tanker [Member] | |||||
Significant Acquisitions and Disposals [Line Items] | |||||
Number of vessels sold | 1 |
GAIN_ON_SALE_OF_ASSETS_AND_TER4
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Compensation Received on Termination of Charters) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
containership | vessels | vessels | ||||
Gain (Loss) on Disposition of Assets [Abstract] | ||||||
Loss | ($1,384,000) | $18,025,000 | $25,681,000 | |||
Term of time charter | 5 years | |||||
Number of container vessels with charter agreement terminated | 5 | |||||
Number of drybulk carriers with charter agreement terminated | 4 | 4 | ||||
Daily charter rate of drybulk carriers with terminated charters | 14,000 | |||||
Compensation payable (receivable) for early contract termination of charter | 40,000,000 | 49,200,000 | ||||
Percent of common stock to be received upon exercise of warrants | 10.00% | |||||
Total compensation received on termination of charters | $25,315,000 | $0 | $21,705,000 |
OTHER_FINANCIAL_ITEMS_Details
OTHER FINANCIAL ITEMS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Income and Expenses [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ($4,500,000) | $2,100,000 | $27,000 |
Net increase/(decrease) in fair value of non-designated derivatives | -7,636,000 | 7,726,000 | 6,493,000 |
Net cash payments on non-designated derivatives | -7,196,000 | -2,653,000 | -179,000 |
Net increase/(decrease) in fair value of designated derivatives (ineffective portion) | -63,000 | 224,000 | 1,466,000 |
Other items | -1,337,000 | -3,294,000 | -1,904,000 |
Total other financial items | -16,232,000 | 2,003,000 | 5,876,000 |
Foreign Currency Transaction Gain (Loss), before Tax | ($109,000) | ($507,000) | $8,000 |
AVAILABLE_FOR_SALE_SECURITIES_1
AVAILABLE FOR SALE SECURITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $80,743 | $75,657 | |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -7,087 | 1,268 | 569 |
Carrying value | 73,656 | 76,925 | |
Listed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | 49,900 | 56,400 | |
Unlisted Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | 23,700 | 20,500 | |
Unlisted Securities [Member] | Second Lien Interest-Bearing Loan Notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | $59,400 | $51,400 |
TRADE_ACCOUNTS_RECEIVABLE_AND_1
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts, trade receivables | $0 | $0 |
Trade accounts receivable | 3,253,000 | 8,362,000 |
Allowance for Doubtful Other Receivables | 0 | 0 |
Other receivables | 10,488,000 | 79,301,000 |
Trade Accounts Receivable 1 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | 5,000,000 | |
Investment Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | 50,000,000 | |
Receivable on Cancellation of Contract [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $24,900,000 |
VESSELS_AND_EQUIPMENT_NET_Sche
VESSELS AND EQUIPMENT, NET (Schedule of Vessels and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Cost | $1,715,510 | $1,360,605 |
Accumulated depreciation | 338,377 | 270,989 |
Vessels and equipment, net | $1,377,133 | $1,089,616 |
VESSELS_AND_EQUIPMENT_NET_Deta
VESSELS AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2006 | |
containership | carriers | vessel | subsidiaries | |
carriers | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Book value of tankers | $1,377,133,000 | $1,089,616,000 | ||
Asset Impairment Charges | 11,800,000 | 0 | 0 | |
Number of container vessels impaired | 5 | |||
Number of drybulk carriers delivered | 2 | 1 | ||
Number of second hand container vessels delivered | 9 | |||
Number of newbuilding container vessels delivered | 2 | |||
Cost of drybulk carriers | 61,800,000 | 27,800,000 | ||
Cost of second hand container vessels delivered | 127,900,000 | |||
Cost of newbuilding container vessels delivered | 173,800,000 | |||
Number of Suezmax Tankers Transferred To Operating Lease Assets | 2 | |||
Depreciation | 67,393,000 | 58,436,000 | 55,602,000 | |
Suezmax Tankers [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Book value of tankers | 93,600,000 | |||
Floating Rate Debt [Member] | US$ 210 million secured term loan facility [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Number Of Wholly Owned Subsidiaries Of Company That Entered Into Secured Term Loan Facility Agreement | 5 | |||
Debt amount | $210,000,000 |
NEWBUILDINGS_Details
NEWBUILDINGS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
carriers | carriers | ||
containership | contract | ||
contract | |||
vessel | |||
Property, Plant and Equipment [Line Items] | |||
Number of container vessels contracted to be acquired | 2 | ||
Interest capitalized in the cost of newbuildings | $290,000 | $257,000 | $332,000 |
Number of newbuilding contracts | 2 | 7 | |
Accumulated costs of newbuildings | $87,600,000 | $126,000,000 | |
Number of drybulk carriers delivered | 2 | 1 | |
Number of container vessels delivered | 2 | ||
8700 TEU Container Vessel [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of container vessels contracted to be acquired | 0 | ||
4,800 TEU Container Vessel [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of container vessels contracted to be acquired, canceled | 3 |
INVESTMENTS_IN_DIRECT_FINANCIN2
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
assets | vessel | assets | |
vessel | |||
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |||
Number of VLCCs and Suezmaxes Chartered | 17 | ||
Term of charters, minimum (in years) | 3 years | ||
Term of charters, maximum (in years) | 12 years | ||
Number of offshore supply vessels chartered on long-term bareboat charters | 1 | ||
Joint venture, ownership percentage | 50.00% | ||
Assets accounted for as direct financing leases and leased to related parties | 19 | 22 | |
Number of Suezmax Tankers Transferred To Operating Lease Assets | 2 | ||
Minimum future lease revenues to be received [Abstract] | |||
2014 | $117,479 | ||
2015 | 155,562 | ||
2016 | 154,626 | ||
2017 | 147,931 | ||
2018 | 135,690 | ||
Thereafter | 463,039 | ||
Total minimum lease revenues | $1,174,327 |
INVESTMENTS_IN_DIRECT_FINANCIN3
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES (Components of Investments in Direct Financing and Sales-type Leases) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||
Total minimum lease payments to be received | $1,174,327 | $1,490,111 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | -330,056 | -432,463 |
Net minimum lease payments receivable | 844,271 | 1,057,648 |
Estimated residual values of leased property (un-guaranteed) | 239,002 | 278,152 |
Less: unearned income | -243,419 | -318,910 |
Net investment in direct financing and sales-type leases before deferred deemed equity contribution and unamortized gains | 839,854 | 1,016,890 |
Less: deferred deemed equity contribution | -86,585 | -106,377 |
Less: unamortized gains | -6,738 | -7,105 |
Total investment in direct financing and sales-type leases | 746,531 | 903,408 |
Current portion | 37,517 | 45,148 |
Long-term portion | $709,014 | $858,260 |
INVESTMENT_IN_ASSOCIATED_COMPA2
INVESTMENT IN ASSOCIATED COMPANIES (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Sep. 30, 2008 | 31-May-13 | Dec. 31, 2008 | Jun. 30, 2015 | ||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Term loan facility, amount outstanding | $1,732,459,000 | $1,736,879,000 | |||||||||
Gain on sale of investment in associated company | 6,055,000 | 0 | 0 | ||||||||
SFL Hercules [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 100.00% | ||||||||
Term loan facility, principal amount | 375,000,000 | ||||||||||
Term loan facility, term | 6 years | ||||||||||
Term loan facility, amount outstanding | 283,700,000 | 361,200,000 | |||||||||
Term loan facility, amount guaranteed | 85,000,000 | 90,000,000 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 38,619,000 | [1] | 56,886,000 | [1] | |||||||
Non-current assets | 397,226,000 | 429,720,000 | |||||||||
Total assets | 435,845,000 | 486,606,000 | |||||||||
Current liabilities | 32,945,000 | 29,101,000 | |||||||||
Non-current liabilities | 391,500,000 | [2] | 453,860,000 | [2] | |||||||
Total liabilities | 424,445,000 | 482,961,000 | |||||||||
Total shareholders' equity | 11,400,000 | 3,645,000 | |||||||||
Due to parent | 135,300,000 | 120,100,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 24,565,000 | 13,832,000 | |||||||||
Net operating revenues | 24,544,000 | 13,808,000 | |||||||||
Net income | 7,755,000 | 3,645,000 | |||||||||
Interest payable to parent | 6,500,000 | 3,500,000 | 0 | ||||||||
SFL Linus [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 0.00% | ||||||||
Term loan facility, principal amount | 475,000,000 | ||||||||||
Term loan facility, term | 5 years | ||||||||||
Term loan facility, amount outstanding | 451,300,000 | ||||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 44,352,000 | [1] | 0 | [1] | |||||||
Non-current assets | 530,348,000 | 195,000,000 | |||||||||
Total assets | 574,700,000 | 195,000,000 | |||||||||
Current liabilities | 51,540,000 | 0 | |||||||||
Non-current liabilities | 513,068,000 | [2] | 197,317,000 | [2] | |||||||
Total liabilities | 564,608,000 | 197,317,000 | |||||||||
Total shareholders' equity | 10,092,000 | -2,317,000 | |||||||||
Due to parent | 110,700,000 | 195,000,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 33,236,000 | 0 | |||||||||
Net operating revenues | 33,221,000 | 0 | |||||||||
Net income | 12,413,000 | -38,000 | |||||||||
Interest payable to parent | 4,900,000 | 0 | 0 | ||||||||
SFL Deepwater [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 100.00% | ||||||||
Term loan facility, principal amount | 390,000,000 | 1,400,000,000 | |||||||||
Term loan facility, term | 5 years | ||||||||||
Term loan facility, amount outstanding | 303,300,000 | 383,300,000 | |||||||||
Term loan facility, amount guaranteed | 85,000,000 | 90,000,000 | |||||||||
Number of main assets subject of leases which includes both fixed price call options and fixed price purchase obligations | 1 | 2 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 44,297,000 | [1] | 94,981,000 | [1] | |||||||
Non-current assets | 397,191,000 | 432,755,000 | |||||||||
Total assets | 441,488,000 | 527,736,000 | |||||||||
Current liabilities | 38,376,000 | 85,240,000 | |||||||||
Non-current liabilities | 371,147,000 | [2] | 418,554,000 | [2] | |||||||
Total liabilities | 409,523,000 | 503,794,000 | |||||||||
Total shareholders' equity | 31,965,000 | 23,942,000 | |||||||||
Due to parent | 100,000,000 | 115,200,000 | |||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 0 | 150,000,000 | 0 | ||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 24,917,000 | 46,145,000 | 69,508,000 | ||||||||
Net operating revenues | 24,905,000 | 46,109,000 | 69,485,000 | ||||||||
Net income | 8,023,000 | 17,747,000 | 28,243,000 | [3] | |||||||
Interest payable to parent | 6,500,000 | 9,600,000 | 13,100,000 | ||||||||
SFL West Polaris [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 100.00% | 100.00% | ||||||||
Term loan facility, principal amount | 420,000,000 | 700,000,000 | |||||||||
Term loan facility, term | 5 years | ||||||||||
Term loan facility, amount outstanding | 387,000,000 | ||||||||||
Term loan facility, amount guaranteed | 94,000,000 | ||||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 0 | [1] | 34,412,000 | [1] | |||||||
Non-current assets | 0 | 458,558,000 | |||||||||
Total assets | 0 | 492,970,000 | |||||||||
Current liabilities | 0 | 38,337,000 | |||||||||
Non-current liabilities | 0 | [2] | 451,384,000 | [2] | |||||||
Total liabilities | 0 | 489,721,000 | |||||||||
Total shareholders' equity | 0 | 3,249,000 | |||||||||
Due to parent | 100,400,000 | ||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 0 | 73,000,000 | 0 | ||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 22,251,000 | 23,701,000 | 37,421,000 | ||||||||
Net operating revenues | 22,234,000 | 23,681,000 | 37,418,000 | ||||||||
Net income | 4,643,000 | 2,324,000 | 10,719,000 | [3] | |||||||
Interest payable to parent | 6,500,000 | 6,500,000 | 6,500,000 | ||||||||
Bluelot Shipping Company [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 100.00% | 100.00% | ||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 0 | [1] | 9,780,000 | [1] | |||||||
Non-current assets | 0 | 0 | |||||||||
Total assets | 0 | 9,780,000 | |||||||||
Current liabilities | 0 | 3,523,000 | |||||||||
Non-current liabilities | 0 | [2] | 0 | [2] | |||||||
Total liabilities | 0 | 3,523,000 | |||||||||
Total shareholders' equity | 0 | 6,257,000 | |||||||||
Due from parent | 6,100,000 | ||||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 1,171,000 | 19,490,000 | 19,612,000 | ||||||||
Net operating revenues | 232,000 | 2,261,000 | 2,266,000 | ||||||||
Net income | 232,000 | 2,261,000 | 2,266,000 | [3] | |||||||
SFL Corte Real [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 100.00% | 100.00% | ||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 0 | [1] | 9,857,000 | [1] | |||||||
Non-current assets | 0 | 0 | |||||||||
Total assets | 0 | 9,857,000 | |||||||||
Current liabilities | 0 | 3,646,000 | |||||||||
Non-current liabilities | 0 | [2] | 0 | [2] | |||||||
Total liabilities | 0 | 3,646,000 | |||||||||
Total shareholders' equity | 0 | 6,211,000 | |||||||||
Due from parent | 6,000,000 | ||||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 2,492,000 | 19,624,000 | 19,722,000 | ||||||||
Net operating revenues | 431,000 | 2,262,000 | 2,265,000 | ||||||||
Net income | 431,000 | 2,261,000 | 2,264,000 | [3] | |||||||
Total [Member] | |||||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 127,268,000 | [1] | 205,916,000 | [1] | |||||||
Non-current assets | 1,324,765,000 | 1,516,033,000 | |||||||||
Total assets | 1,452,033,000 | 1,721,949,000 | |||||||||
Current liabilities | 122,861,000 | 159,847,000 | |||||||||
Non-current liabilities | 1,275,715,000 | [2] | 1,521,115,000 | [2] | |||||||
Total liabilities | 1,398,576,000 | 1,680,962,000 | |||||||||
Total shareholders' equity | 53,457,000 | 40,987,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 108,632,000 | 122,792,000 | 146,263,000 | ||||||||
Net operating revenues | 105,567,000 | 88,121,000 | 111,434,000 | ||||||||
Net income | 33,497,000 | 28,200,000 | 43,492,000 | [3] | |||||||
Scenario, Forecast [Member] | SFL Linus [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Term loan facility, amount guaranteed | $90,000,000 | ||||||||||
[1] | Bluelot and Corte Real current assets at December 31, 2013, include $6.1 million and $6.0 million due from Ship Finance, respectively (see Note 23: Related party transactions). | ||||||||||
[2] | SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2014, include $100.0 million (2013: $115.2 million), $135.3 million (2013: $120.1 million) and $110.7 million (2013: $195.0 million) due to Ship Finance (see Note 23: Related party transactions). SFL West Polaris non-current liabilities at December 31, 2013, includes $100.4 million due to Ship Finance (see Note 23: Related party transactions). In the year ended December 31, 2013, SFL Deepwater and SFL West Polaris paid dividends of $150.0 million (2014:$nil; 2012:$nil) and $73.0 million (2014: $nil; 2012:$nil), respectively. | ||||||||||
[3] | The net income of SFL Deepwater, SFL West Polaris, SFL Hercules and SFL Linus in the year ended December 31, 2014, includes interest payable to Ship Finance amounting to $6.5 million (2013: $9.6 million; 2012: $13.1 million), $6.5 million (2013: $6.5 million; 2012: $6.5 million), $6.5 million (2013: $3.5 million; 2012: $nil) and $4.9 million (2013: $nil; 2012: $nil), respectively - see Note 23 "Related party transactions". |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Vessel operating expenses | $6,305 | $1,959 |
Administrative expenses | 1,330 | 799 |
Interest expense | 10,555 | 11,074 |
Accrued expenses | $18,190 | $13,832 |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Liabilities Disclosure [Abstract] | |||
Deferred charter revenue | $4,868,000 | $3,744,000 | |
Prepaid charter income | 3,114,000 | 822,000 | |
Employee taxes | 899,000 | 773,000 | |
Other | 211,000 | 209,000 | |
Other current liabilities | 9,092,000 | 5,548,000 | |
Related Party Transaction [Line Items] | |||
Compensation payable (receivable) for early contract termination of charter | $40,000,000 | $49,200,000 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 19, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 07, 2010 | Feb. 28, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 10, 2011 | Jan. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2006 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2007 | Dec. 31, 2013 | Jan. 31, 2008 | Jan. 31, 2008 | Dec. 31, 2013 | Feb. 28, 2008 | Aug. 31, 2007 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 08, 2011 | Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-11 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2011 | Jul. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | vessels | US Dollar 53.2 Million Secured Term Loan Facility [Member] | US Dollar 53.2 Million Secured Term Loan Facility [Member] | US Dollar 53.2 Million Secured Term Loan Facility [Member] | US Dollar 70 Million Secured Term Loan Facility [Member] | US Dollar 70 Million Secured Term Loan Facility [Member] | US Dollar 70 Million Secured Term Loan Facility [Member] | US Dollar 45 million secured term loan facility [Member] | US Dollar 45 million secured term loan facility [Member] | US Dollar 45 million secured term loan facility [Member] | US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | Floating Rate Debt [Member] | SFL Linus [Member] | SFL Linus [Member] | Interest Expense [Member] | Interest Expense [Member] | |
carriers | carriers | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | NOK | USD ($) | NOK | USD ($) | NOK | NOK | NOK | NOK | USD ($) | NOK | USD ($) | NOK | USD ($) | USD ($) | USD ($) | NOK | NOK | USD ($) | NOK | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | US$ 210 million secured term loan facility [Member] | US$ 210 million secured term loan facility [Member] | US$ 210 million secured term loan facility [Member] | US$ 149 million secured term loan facility [Member] | US$ 149 million secured term loan facility [Member] | US$ 149 million secured term loan facility [Member] | US$ 77 million secured term loan facility [Member] | US$ 77 million secured term loan facility [Member] | US$ 30 million secured revolving credit facility (February 2008) [Member] | US$ 30 million secured revolving credit facility (February 2008) [Member] | US$ 30 million secured revolving credit facility (February 2008) [Member] | US$ 30 million secured revolving credit facility (February 2008) [Member] | US$ 49 million secured term loan and revolving credit facility [Member] | US$ 49 million secured term loan and revolving credit facility [Member] | US$ 49 million secured term loan and revolving credit facility [Member] | US$ 43 million secured term loan facility (February 2010) [Member] | US$ 43 million secured term loan facility (February 2010) [Member] | US$ 43 million secured term loan facility (February 2010) [Member] | US$ 725 million secured term loan and revolving credit facility [Member] | US$ 725 million secured term loan and revolving credit facility [Member] | US$ 725 million secured term loan and revolving credit facility [Member] | US$ 43 million secured term loan facility (March 2010) [Member] | US$ 43 million secured term loan facility (March 2010) [Member] | US$ 43 million secured term loan facility (March 2010) [Member] | US$ 54 million secured term loan facility [Member] | US$ 54 million secured term loan facility [Member] | US$ 54 million secured term loan facility [Member] | US$ 95 million secured term loan and revolving credit facility [Member] | US$ 95 million secured term loan and revolving credit facility [Member] | US$ 95 million secured term loan and revolving credit facility [Member] | US$ 95 million secured term loan and revolving credit facility [Member] | US$ 75 million secured term loan facility [Member] | US$ 75 million secured term loan facility [Member] | US$ 75 million secured term loan facility [Member] | US$ 171 million secured term loan facility [Member] | US$ 171 million secured term loan facility [Member] | US$ 171 million secured term loan facility [Member] | US$ 55 million secured securities financing facility [Member] | US$ 167 million secured term loan facility | US$ 167 million secured term loan facility | US$ 167 million secured term loan facility | US dollar 184 million secured term loan and revolving credit facility [Member] | US dollar 184 million secured term loan and revolving credit facility [Member] | US dollar 184 million secured term loan and revolving credit facility [Member] | US dollar 184 million secured term loan and revolving credit facility [Member] | US Dollar 45 million secured term loan facility [Member] | US Dollar 45 million secured term loan facility [Member] | US dollar 101 million secured term loan facility [Member] | US dollar 101 million secured term loan facility [Member] | US dollar 101 million secured term loan facility [Member] | US dollar 20 million secured term loan facility [Member] | US dollar 20 million secured term loan facility [Member] | US dollar 20 million secured term loan facility [Member] | US dollar 20 million secured term loan facility [Member] | US dollar 128 million secured term loan facility (September 2014) [Member] | US dollar 128 million secured term loan facility (September 2014) [Member] | US dollar 128 million secured term loan facility (September 2014) [Member] | US dollar 128 million secured term loan facility (September 2014) [Member] | US dollar 128 million secured term loan facility (November 2014) [Member] | US dollar 128 million secured term loan facility (November 2014) [Member] | US dollar 39 million secured term loan facility [Member] | US dollar 39 million secured term loan facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
vessel | vessel | subsidiaries | subsidiaries | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | vessel | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | subsidiaries | vessel | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | containership | USD ($) | USD ($) | USD ($) | containership | USD ($) | subsidiaries | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||
carriers | containership | vessel | subsidiaries | vessel | tankers | vessel | vessel | subsidiaries | subsidiaries | subsidiaries | vessel | vessel | vessel | subsidiaries | subsidiaries | subsidiaries | containership | subsidiaries | carriers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
subsidiaries | vessel | subsidiaries | subsidiaries | carriers | vessel | vessel | vessel | containership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of container vessels contracted to be acquired, canceled | 3 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $1,732,459,000 | $1,732,459,000 | $1,736,879,000 | $44,300,000 | $48,800,000 | $0 | $70,000,000 | $45,000,000 | $0 | 892,000,000 | $119,277,000 | $0 | 0 | 436,500,000 | $0 | 0 | $71,854,000 | $125,000,000 | $125,000,000 | 564,000,000 | $76,487,000 | 572,000,000 | $92,843,000 | $350,000,000 | $350,000,000 | $1,061,695,000 | $1,097,182,000 | $171,400,000 | $174,800,000 | $73,900,000 | $39,100,000 | $3,000,000 | $5,000,000 | $28,000,000 | $25,600,000 | $29,100,000 | $32,000,000 | $71,500,000 | $158,800,000 | $29,100,000 | $32,000,000 | $38,000,000 | $42,000,000 | $57,500,000 | $47,500,000 | $56,600,000 | $62,500,000 | $134,200,000 | $146,300,000 | $72,200,000 | $74,500,000 | $64,400,000 | $98,700,000 | $0 | $20,000,000 | $0 | $126,400,000 | $0 | $36,400,000 | $0 | $451,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less : current portion of long-term debt | -182,415,000 | -182,415,000 | -389,888,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt, non-current portion | 1,550,044,000 | 1,550,044,000 | 1,346,991,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 182,415,000 | 182,415,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 204,218,000 | 204,218,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 187,205,000 | 187,205,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 582,980,000 | 582,980,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 254,591,000 | 254,591,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 321,050,000 | 321,050,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 1,732,459,000 | 1,732,459,000 | 1,736,879,000 | 44,300,000 | 48,800,000 | 0 | 70,000,000 | 45,000,000 | 0 | 892,000,000 | 119,277,000 | 0 | 0 | 436,500,000 | 0 | 0 | 71,854,000 | 125,000,000 | 125,000,000 | 564,000,000 | 76,487,000 | 572,000,000 | 92,843,000 | 350,000,000 | 350,000,000 | 1,061,695,000 | 1,097,182,000 | 171,400,000 | 174,800,000 | 73,900,000 | 39,100,000 | 3,000,000 | 5,000,000 | 28,000,000 | 25,600,000 | 29,100,000 | 32,000,000 | 71,500,000 | 158,800,000 | 29,100,000 | 32,000,000 | 38,000,000 | 42,000,000 | 57,500,000 | 47,500,000 | 56,600,000 | 62,500,000 | 134,200,000 | 146,300,000 | 72,200,000 | 74,500,000 | 64,400,000 | 98,700,000 | 0 | 20,000,000 | 0 | 126,400,000 | 0 | 36,400,000 | 0 | 451,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (in hundredths) | 4.98% | 4.86% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three month dollar LIBOR rate (in hundredths) | 0.26% | 0.26% | 0.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three month Norwegian kroner NIBOR rate (in hundredths) | 1.48% | 1.48% | 1.69% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate | 3.25% | 3.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | 53,200,000 | 70,000,000 | 45,000,000 | 350,000,000 | 900,000,000 | 900,000,000 | 500,000,000 | 125,000,000 | 600,000,000 | 210,000,000 | 149,000,000 | 77,000,000 | 30,000,000 | 49,000,000 | 42,600,000 | 725,000,000 | 42,600,000 | 53,700,000 | 95,000,000 | 75,400,000 | 171,000,000 | 55,000,000 | 166,800,000 | 184,000,000 | 101,400,000 | 20,000,000 | 127,500,000 | 127,500,000 | 39,000,000 | 475,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of container vessels | 7 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of offshore supply vessels | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of drybulk carriers | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of debt repurchased | 8,000,000 | 4,000,000 | 63,500,000 | 36,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain/(loss) on repurchase of debt | -21,000 | -1,218,000 | -122,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date of debt | 3/19/19 | 4/7/14 | 2016 | 2018 | 10/19/17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption price of debt (in hundredths) | 100.50% | 100.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $21.95 | $18.16 | $17.98 | $27.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium of conversion price to share price | 33.00% | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold percentage of value of shares underlying each bond to principal amount of bond for the bonds to be callable (in hundredths) | 130.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of new vessels acquired that were partly funded by secured term loan facility | 5 | 5 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum revenue level by vessel-owning subsidiaries | 2,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available amount under revolving part of credit facility | 0 | 1,900,000 | 112,000,000 | 119,700,000 | 0 | 20,000,000 | 0 | 8,000,000 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | 2 | 7 | 5 | 5 | 2 | 2 | 2 | 8 | 5 | 4 | 6 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term of loan in years | 2 years | 12 years | 7 years | 10 years | 5 years | 5 years | 5 years | 8 years | 10 years | 12 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels sold | 2 | 2 | 2 | 1 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of remaining vessels relating to loan facility | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | 26 | 14 | 2 | 3 | 7 | 5 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of acquisition cost of securities which may be funded by financing facility (in hundredths) | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of car carriers | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book value of assets pledged under ship mortgages | 2,062,000,000 | 2,062,000,000 | 1,994,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares loaned to affiliate | 6,060,606 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related party share loan fee | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible bond issuance, net | 0 | 20,722,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | 4,100,000 | 3,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | 5 years | 7 years | 7 years | 8 years | 7 years | 6 years | 5 years | 5 years | 7 years | 8 years | 7 years | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Debt | ($8,000,000) |
OTHER_LONG_TERM_LIABILITIES_De
OTHER LONG TERM LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
vessel | ||
Other Liabilities Disclosure [Abstract] | ||
Unamortized sellers' credit | $15,042,000 | $18,125,000 |
Other items | 2,542,000 | 4,000 |
Other long-term liabilities | 17,584,000 | 18,129,000 |
Number of offshore supply vessels acquired | 6 | |
Seller's credit received | 37,000,000 | |
Guarantees, Fair Value Disclosure | $2,500,000 |
SHARE_CAPITAL_ADDITIONAL_PAIDI2
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
employees | ||||
Stockholders' Equity Note [Abstract] | ||||
Number of directors who exercised options | 3 | |||
Common shares, authorized | $125,000,000 | $125,000,000 | ||
Share capital, par value (in dollars per share) | $1 | $1 | ||
Common shares, authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common shares, issued | $93,404,000 | $93,260,000 | ||
Common shares, issued (in shares) | 93,404,000 | 93,260,000 | 85,225,000 | 79,125,000 |
Number of officers who exercised options | 1 |
SHARE_CAPITAL_ADDITIONAL_PAIDI3
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Narrative) (Details) (USD $) | 5 Months Ended | 12 Months Ended | |||
31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | |
employees | employees | ||||
Stockholders' Equity Note [Abstract] | |||||
Options exercised (in shares) | 144,000 | 35,000 | |||
Exercised share price (in dollars per share) | $6.44 | $5.29 | |||
Premium on stock options exercised | $800,000 | $200,000 | |||
Shares issued (in shares) | 8,000,000 | ||||
Proceeds from shares issued | 128,700,000 | ||||
Premium on new shares issued | 120,700,000 | ||||
Amortization of deferred equity contributions | 4,520,000 | 20,197,000 | 13,018,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of options exercised during the period | 2,900,000 | 900,000 | 2,300,000 | ||
Number of employees exercising options | 2 | 2 | |||
Number of employees who exercised options and received cash | 1 | 1 | |||
Number of options exercised satisfied by cash payment | 80,000 | 40,000 | |||
Equity component of convertible bond issuance, net | 0 | 20,722,000 | 0 | ||
Ship Finance International Limited Share Option Scheme [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of options exercised during the period | 1,200,000 | 400,000 | |||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion price (in dollars per share) | $18.16 | $21.95 | |||
Premium of conversion price to share price | 33.00% | ||||
Debt amount | $350,000,000 |
SHARE_OPTION_PLAN_Details
SHARE OPTION PLAN (Details) (USD $) | 5 Months Ended | 12 Months Ended | ||
31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share options [Roll Forward] | ||||
Options exercised (in shares) | -144,000 | -35,000 | ||
Other disclosures [Abstract] | ||||
Total intrinsic value of options exercised during the period | $2,900,000 | $900,000 | $2,300,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, term (in years) | 5 years | |||
Share options [Roll Forward] | ||||
Options outstanding at beginning of year (in shares) | 498,000 | 423,000 | 498,000 | 830,500 |
Granted (in shares) | 0 | 0 | 0 | |
Options exercised (in shares) | -224,000 | -75,000 | -260,000 | |
Forfeited (in shares) | -10,000 | 0 | -72,500 | |
Options outstanding at end of year (in shares) | 189,000 | 423,000 | 498,000 | |
Exercisable at end of year (in shares) | 189,000 | 374,333 | 376,668 | |
Weighted average exercise price [Abstract] | ||||
Options outstanding at beginning of year (in dollars per share) | 10.27 | $9.99 | $10.27 | $11.25 |
Granted (in dollars per share) | $0 | $0 | $0 | |
Exercised (in dollars per share) | $5.41 | $5.29 | $7.17 | |
Forfeited (in dollars per share) | $5.56 | $0 | $18.05 | |
Options outstanding at end of year (in dollars per share) | $13.17 | $9.99 | $10.27 | |
Exercisable at end of year (in dollars per share) | $13.17 | $9.22 | $8.29 | |
Other disclosures [Abstract] | ||||
Granted (in shares) | 0 | 0 | 0 | |
Intrinsic value of options fully vested but not exercised | 200,000 | |||
Options fully vested but not exercised, average remaining term (in years) | 0 years 10 months 27 days | |||
Unrecognized compensation costs related to non-vested options granted | $0 | $29,100 | ||
New Options Granted During The Year [Member] | ||||
Weighted average assumptions used to calculate fair value of options [Abstract] | ||||
Expected life of options (in years) | 0 years | 0 years | 0 years | |
Minimum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vesting period, minimum (in years) | 1 year | |||
Maximum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vesting period, minimum (in years) | 3 years |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 1 Months Ended | 12 Months Ended | 24 Months Ended | 1 Months Ended | |||||||
Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jan. 31, 2013 | Feb. 28, 2013 | Mar. 31, 2013 | Nov. 30, 2013 | 31-May-13 | Jul. 31, 2013 | |
vessel | assets | vessel | |||||||||
assets | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Joint venture, ownership percentage | 50.00% | ||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | $152,491,000 | $13,249,000 | $152,491,000 | ||||||||
Loans to related parties | 346,031,000 | 530,715,000 | 346,031,000 | ||||||||
Loans to related parties - others, long-term | 79,294,000 | 48,847,000 | 79,294,000 | ||||||||
Due to related parties | 1,109,000 | 13,965,000 | 1,109,000 | ||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||
Direct financing lease interest income | 45,363,000 | 55,385,000 | 59,214,000 | ||||||||
Finance lease service revenue | 46,488,000 | 52,390,000 | 64,766,000 | ||||||||
Profit sharing revenues | 33,756,000 | 770,000 | 52,176,000 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Number of vessels leased to related parties classified as direct financing leases | 19 | 22 | 19 | ||||||||
Vessels and equipment, net | 1,377,133,000 | 1,089,616,000 | 1,377,133,000 | ||||||||
Number of vessels sold | 2 | 2 | 2 | ||||||||
Compensation payable (receivable) for early contract termination of charter | 40,000,000 | 49,200,000 | |||||||||
Compensation received on termination of charters, cash | 10,500,000 | ||||||||||
Compensation received on termination of charters, notes receivable | 38,700,000 | ||||||||||
Term of lease/charter (in years) | 8 years | ||||||||||
Notes receivable, related parties | 48,400,000 | 79,000,000 | 48,400,000 | ||||||||
Management fees paid, vessels | 49,170,000 | 54,916,000 | 66,455,000 | ||||||||
Commission percentage paid on chartering revenues | 1.25% | ||||||||||
Administrative expenses - related parties | 965,000 | 439,000 | 471,000 | ||||||||
Related party loans [Abstract] | |||||||||||
Interest income, related party loans | 24,464,000 | 19,575,000 | 19,575,000 | ||||||||
Cost of jack-up drilling rig | 600,000,000 | ||||||||||
Related party purchases and sales of vessels [Abstract] | |||||||||||
Gain on disposal of investment in equity method investee | 6,055,000 | 0 | 0 | ||||||||
Frontline Charterers, Seadrill, Deep Sea and UFC [Member] | |||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||
Operating lease income | 26,400,000 | 24,000,000 | 20,700,000 | ||||||||
Direct financing lease interest income | 45,400,000 | 55,400,000 | 59,200,000 | ||||||||
Finance lease service revenue | 46,500,000 | 52,400,000 | 64,800,000 | ||||||||
Direct financing lease repayments | 43,100,000 | 47,400,000 | 52,800,000 | ||||||||
Profit sharing revenues | 33,800,000 | 800,000 | 52,200,000 | ||||||||
Frontline Charterers [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 30,714,000 | 0 | 30,714,000 | ||||||||
Due to related parties | 196,000 | 815,000 | 196,000 | ||||||||
Due from related parties | 30,700,000 | 0 | 30,700,000 | ||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||
Profit sharing revenues | 0 | 0 | 0 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Number of vessels leased to related parties classified as direct financing leases | 17 | 28 | 17 | ||||||||
Number of vessels sold | 3 | 4 | 4 | 3 | |||||||
Compensation payment received | 106,000,000 | ||||||||||
Agreed temporary reduction in daily time charter rates | 6,500 | ||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 20.00% | ||||||||||
Increase profit sharing percentage of earnings from Frontline for use of fleet (in hundredths) | 25.00% | ||||||||||
Non-refundable advance relating to the profit sharing agreement | 50,000,000 | ||||||||||
Required balance in profit sharing advance before future income can be recognized | 0 | 0 | |||||||||
Profit share accrued towards reduction in profit sharing advance | 0 | ||||||||||
Period of temporary reduction in daily time charter rates | 4 years | ||||||||||
Maximum daily amount to which temporary earnings-related 100% payment applies | 6,500 | ||||||||||
Seadrill [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 111,195,000 | 300,000 | 111,195,000 | ||||||||
Deep Sea [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 1,338,000 | 0 | 1,338,000 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Number of vessels leased to related parties classified as direct financing leases | 2 | 2 | |||||||||
Number of vessels leased to related parties classified as operating leases | 4 | 4 | |||||||||
United Freight Carriers Inc [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 232,000 | 770,000 | 232,000 | ||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||
Profit sharing revenues | 1,100,000 | 800,000 | 0 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 50.00% | ||||||||||
Number of vessels leased to related parties classified as operating leases | 4 | 4 | |||||||||
Frontline Ltd [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 9,012,000 | 10,016,000 | 9,012,000 | ||||||||
Loans to related parties - others, long-term | 79,294,000 | 48,847,000 | 79,294,000 | ||||||||
Accrued interest on loan notes receivable with related parties | 400,000 | 500,000 | 400,000 | ||||||||
NADL [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due from related parties | 0 | 2,163,000 | 0 | ||||||||
Frontline Shipping and Frontline Shipping II [Member] | |||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||
Profit sharing revenues | 32,700,000 | 0 | 52,200,000 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 100.00% | ||||||||||
Frontline Management [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due to related parties | 848,000 | 1,011,000 | 848,000 | ||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Term of lease/charter (in years) | 5 years | ||||||||||
Number of container vessels operating on time charter, for which part or all management supervision was sub-contracted to a related party | 9 | ||||||||||
Number of drybulk carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | 14 | ||||||||||
Number of crude oil tankers | 2 | ||||||||||
Number of car carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | 2 | ||||||||||
Management fees paid, vessels | 48,400,000 | 54,200,000 | 65,900,000 | ||||||||
Commission percentage paid for sales-type leases of Suezmax tankers (in hundredths) | 1.00% | ||||||||||
Commissions paid for sales-type leases on Suezmax tankers | 300,000 | 100,000 | 100,000 | ||||||||
Administrative expenses - related parties | 500,000 | 400,000 | 500,000 | ||||||||
Management fees paid, supervision of newbuildings | 2,900,000 | 2,400,000 | 2,100,000 | ||||||||
Other related parties [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due to related parties | 65,000 | 57,000 | 65,000 | ||||||||
Golar Management UK Limited [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Management fees paid, provision of office facilities | 100,000 | 200,000 | 200,000 | ||||||||
Bluelot [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due to related parties | 0 | 6,064,000 | 0 | ||||||||
Corte Real [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due to related parties | 0 | 6,018,000 | 0 | ||||||||
Frontline Charterers, Deep Sea and Seadrill [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Combined balance of net investments in direct financing leases | 839,900,000 | 1,016,900,000 | 839,900,000 | ||||||||
Combined balance of net investments in direct financing leases, short-term maturities | 37,500,000 | 45,100,000 | 37,500,000 | ||||||||
Vessels and equipment, net | 198,900,000 | 212,900,000 | 198,900,000 | ||||||||
Frontline Management AS [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Management fees paid, provision of office facilities | 400,000 | 300,000 | 400,000 | ||||||||
Frontline Management and Frontline Management AS [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Due to related parties | 800,000 | 1,000,000 | 800,000 | ||||||||
SFL West Polaris and SFL Deepwater [Member] | |||||||||||
Related party loans [Abstract] | |||||||||||
Interest income, related party loans | 24,400,000 | ||||||||||
Golden Ocean [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Number of container vessels operating on time charter, for which part or all management supervision was sub-contracted to a related party | 9 | ||||||||||
Number of drybulk carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | 14 | ||||||||||
Management fees paid, vessels | 800,000 | 700,000 | 500,000 | ||||||||
SFL West Polaris [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Loans to related parties | 0 | 100,383,000 | 0 | ||||||||
Related party loans [Abstract] | |||||||||||
Loans advanced to related parties | 145,000,000 | 145,000,000 | |||||||||
Interest income, related party loans | 6,500,000 | 6,500,000 | 6,500,000 | ||||||||
SFL Deepwater [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Loans to related parties | 100,036,000 | 115,222,000 | 100,036,000 | ||||||||
Related party loans [Abstract] | |||||||||||
Loans advanced to related parties | 145,000,000 | 145,000,000 | |||||||||
Interest income, related party loans | 6,500,000 | 9,600,000 | 13,100,000 | ||||||||
SFL Hercules [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Loans to related parties | 135,250,000 | 120,110,000 | 135,250,000 | ||||||||
Related party loans [Abstract] | |||||||||||
Loans advanced to related parties | 145,000,000 | 145,000,000 | |||||||||
Interest income, related party loans | 6,500,000 | 3,500,000 | 0 | ||||||||
SFL Linus [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Loans to related parties | 110,745,000 | 195,000,000 | 110,745,000 | ||||||||
Related party loans [Abstract] | |||||||||||
Loans advanced to related parties | 125,000,000 | 125,000,000 | |||||||||
Interest income, related party loans | 4,900,000 | 0 | 0 | ||||||||
Sale of VLCC Edinburgh [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | 7,800,000 | ||||||||||
Sale of Front Pride [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | -2,100,000 | ||||||||||
Sale of Front Guider [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | -11,700,000 | ||||||||||
Sale of Golden Victory [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | -37,300,000 | ||||||||||
Sale of Front Champion [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | -30,400,000 | ||||||||||
Sale of Golden Victory and Front Champion [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Compensation payable (receivable) for early contract termination of charter | 67,700,000 | ||||||||||
Compensation received on termination of charters, cash | 10,900,000 | ||||||||||
Compensation received on termination of charters, notes receivable | 56,800,000 | ||||||||||
Term of lease/charter (in years) | 8 years | ||||||||||
Notes Receivable [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Stated interest rate | 7.25% | 7.25% | |||||||||
Loan Notes [Member] | Frontline Ltd [Member] | |||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||
Short-term portion of loan notes receivable with related parties | 7,800,000 | 7,600,000 | 7,800,000 | ||||||||
Minimum [Member] | NADL [Member] | |||||||||||
Related party loans [Abstract] | |||||||||||
Asset purchased and leased back, term of lease (in excess of 15 years) | 15 years | ||||||||||
Number of purchase options, related party | 4 | ||||||||||
Vessels Leased to Frontline Charterers [Member] | Frontline Management [Member] | |||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||
Daily vessel management fee | $6,500 | ||||||||||
Deep Sea [Member] | Deep Sea Supply BTG B.V. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Joint venture, ownership percentage | 50.00% | ||||||||||
BTG Pactual [Member] | Deep Sea Supply BTG B.V. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Joint venture, ownership percentage | 50.00% |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Oct. 07, 2010 | Oct. 31, 2012 | Mar. 19, 2014 | Oct. 31, 2012 | ||||||
USD ($) | USD ($) | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap 1 [Member] | Interest Rate Swap 2 [Member] | Interest Rate Swap 3 [Member] | Interest Rate Swap 4 [Member] | Interest Rate Swap 5 [Member] | Cross Currency Interest Rate Swap [Member] | Cross Currency Interest Rate Swap [Member] | Cross Currency Interest Rate Swap [Member] | Cross Currency Interest Rate Swap [Member] | Cross Currency Interest Rate Swap [Member] | Interest Rate Swap 7 [Member] | Interest Rate Swap 7 [Member] | Interest Rate Swap 8 [Member] | Interest Rate Swap 9 [Member] | Cross Currency Interest Rate Contract Two [Member] | Cross Currency Interest Rate Contract Two [Member] | Interest Rate Swap 11 [Member] | Interest Rate Swap 12 [Member] | Cross Currency Interest Rate Contract 3 [Member] | Cross Currency Interest Rate Contract 3 [Member] | Interest Rate Swap 14 [Member] | Interest Rate Swap 15 [Member] | NOK 500 million senior unsecured floating rate bonds due 2014 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | |||||||
Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | NOK | NOK | NOK | NOK | |||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | NOK | USD ($) | USD ($) | USD ($) | USD ($) | NOK | USD ($) | USD ($) | USD ($) | NOK | USD ($) | USD ($) | USD ($) | NOK | USD ($) | USD ($) | |||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||
Debt amount | 500,000,000 | 600,000,000 | 900,000,000 | 900,000,000 | ||||||||||||||||||||||||||||||||||
Financial instruments (short-term): at fair value | 517,000 | 5,705,000 | 292,000 | 2,279,000 | 225,000 | 0 | 0 | 3,358,000 | 0 | 68,000 | ||||||||||||||||||||||||||||
Derivative, Fair value [Abstract] | ||||||||||||||||||||||||||||||||||||||
Liabilities | 106,679,000 | 56,490,000 | 40,058,000 | 44,006,000 | 1,565,000 | 3,183,000 | 63,083,000 | 8,915,000 | 1,973,000 | 386,000 | ||||||||||||||||||||||||||||
Assets | 3,294,000 | 16,633,000 | 710,000 | 6,565,000 | 2,584,000 | 10,068,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Interest rate swaps [Abstract] | ||||||||||||||||||||||||||||||||||||||
Inception date | 31-Mar-10 | 31-Mar-08 | 30-Apr-11 | 31-May-11 | 31-Aug-11 | 30-Apr-12 | 30-Apr-12 | 31-May-12 | 31-Oct-12 | [1] | 31-Oct-12 | [1] | 28-Feb-13 | 31-Mar-13 | 19-Mar-14 | [1] | 19-Mar-14 | [1] | 28-Dec-16 | 6-Jan-17 | ||||||||||||||||||
Maturity date | 31-Mar-15 | 31-Aug-18 | 31-Dec-18 | 31-Jan-19 | 31-Aug-21 | 31-May-19 | 31-May-19 | 31-Aug-22 | 31-Oct-17 | [1] | 31-Oct-17 | [1] | 31-Dec-17 | 30-Apr-23 | 19-Mar-19 | [1] | 19-Mar-19 | [1] | 27-Dec-21 | 6-Jan-22 | ||||||||||||||||||
Notional principal | 1,094,100,000 | 1,188,000,000 | 213,158,000 | 36,972,000 | 41,956,000 | 62,535,000 | 100,000,000 | 76,136,000 | [1] | 450,000,000 | [1] | 174,789,000 | 154,100,000 | 73,938,000 | 105,436,000 | [1] | 600,000,000 | [1] | 48,767,000 | 100,000,000 | 151,008,000 | [1] | 900,000,000 | [1] | 108,375,000 | 55,250,000 | ||||||||||||
Notional principal, at maturity | $122,632,000 | $24,794,000 | $23,394,000 | $34,044,000 | $100,000,000 | 153,804,000,000 | $79,733,000 | $69,713,000 | $32,142,000 | $100,000,000 | $70,125,000 | $35,063,000 | ||||||||||||||||||||||||||
Fixed Interest Rate | 6.00% | 6.00% | 6.03% | 6.03% | ||||||||||||||||||||||||||||||||||
Fixed interest rate range, low end (in hundredths) | 1.96% | 4.05% | 2.13% | 0.80% | 2.50% | 1.76% | 5.92% | [1] | 5.92% | [1] | 0.81% | 1.85% | 1.86% | 1.83% | ||||||||||||||||||||||||
Fixed interest rate range, high end (in hundredths) | 2.22% | 4.15% | 2.80% | 2.58% | 2.93% | 1.85% | 6.23% | [1] | 6.23% | [1] | 0.82% | 1.97% | 3.33% | 3.09% | ||||||||||||||||||||||||
[1] | These swaps relate to the NOK600 million and the NOK900 million unsecured bonds, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. For the remaining swaps the fixed interest rate paid is exchanged for LIBOR, excluding margin on the underlying loans. |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS (Fair Value and Carrying Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Non-derivatives: | ||
Available for sale securities | $73,656,000 | $76,925,000 |
Floating rate NOK bonds due 2014 | 72,032,000 | |
Floating rate NOK bonds due 2017 | 75,210,000 | 93,752,000 |
Floating Rate NOK Bonds due 2019 | 108,542,000 | |
Derivatives: | ||
Interest rate/ currency swap contracts – long-term receivables | 3,294,000 | 16,633,000 |
Interest rate/ currency swap contracts – long-term payables | 106,679,000 | 56,490,000 |
Long term payables, non-designated swap contracts | 3,500,000 | 3,600,000 |
Long term receivables, non-designated swap contracts | 2,600,000 | 10,100,000 |
Carrying Value [Member] | ||
Non-derivatives: | ||
Available for sale securities | 73,656,000 | 76,925,000 |
Floating rate NOK bonds due 2014 | 0 | 71,854,000 |
Floating rate NOK bonds due 2017 | 76,487,000 | 92,483,000 |
Floating Rate NOK Bonds due 2019 | 119,277,000 | 0 |
Derivatives: | ||
Interest rate/ currency swap contracts – long-term receivables | 3,294,000 | 16,633,000 |
Interest rate/ currency swap contracts – short-term payables | 517,000 | 5,705,000 |
Interest rate/ currency swap contracts – long-term payables | 106,679,000 | 56,490,000 |
Fair Value [Member] | ||
Non-derivatives: | ||
Available for sale securities | 73,656,000 | 76,925,000 |
Floating rate NOK bonds due 2014 | 0 | 72,032,000 |
Floating rate NOK bonds due 2017 | 75,210,000 | 93,752,000 |
Floating Rate NOK Bonds due 2019 | 108,542,000 | 0 |
Derivatives: | ||
Interest rate/ currency swap contracts – long-term receivables | 3,294,000 | 16,633,000 |
Interest rate/ currency swap contracts – short-term payables | 517,000 | 5,705,000 |
Interest rate/ currency swap contracts – long-term payables | 106,679,000 | 56,490,000 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 124,375,000 | 130,589,000 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | Carrying Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 125,000,000 | 125,000,000 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | Fair Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 124,375,000 | 130,589,000 |
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 335,563,000 | |
Senior Unsecured Convertible Bonds Due 2018 [Member] | Carrying Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 350,000,000 | 350,000,000 |
Senior Unsecured Convertible Bonds Due 2018 [Member] | Fair Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 335,563,000 | 359,307,000 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives: | ||
Interest rate/ currency swap contracts – short-term payables | $200,000 | $100,000 |
FINANCIAL_INSTRUMENTS_Fair_Val1
FINANCIAL INSTRUMENTS (Fair Value Hierarchy) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Available for sale securities | $73,656 | $76,925 |
Interest rate/currency swap contracts - long term receivables | 3,294 | 16,633 |
Total assets | 76,950 | 93,558 |
Liabilities: | ||
Floating rate NOK bonds due 2014 | 72,032 | |
Floating rate NOK bonds due 2017 | 75,210 | 93,752 |
Floating Rate NOK Bonds due 2019 | 108,542 | |
Swap Contracts, Short Term Payable, Fair Value Disclosure | 517 | |
Interest rate/ currency swap contracts – long-term payables | 106,679 | 56,490 |
Total liabilities | 750,886 | 717,875 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | ||
Assets: | ||
Available for sale securities | 49,913 | 56,379 |
Total assets | 49,913 | 56,379 |
Liabilities: | ||
Floating rate NOK bonds due 2014 | 72,032 | |
Floating rate NOK bonds due 2017 | 75,210 | 93,752 |
Floating Rate NOK Bonds due 2019 | 108,542 | |
Total liabilities | 643,690 | 655,680 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring Basis [Member] | ||
Assets: | ||
Interest rate/currency swap contracts - long term receivables | 3,294 | 16,633 |
Total assets | 3,294 | 16,633 |
Liabilities: | ||
Swap Contracts, Short Term Payable, Fair Value Disclosure | 517 | 5,705 |
Interest rate/ currency swap contracts – long-term payables | 106,679 | 56,490 |
Total liabilities | 107,196 | 62,195 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | ||
Assets: | ||
Available for sale securities | 23,743 | 20,546 |
Total assets | 23,743 | 20,546 |
Liabilities: | ||
Total liabilities | 0 | 0 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | 124,375 | 130,589 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | 124,375 | 130,589 |
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | 335,563 | |
Senior Unsecured Convertible Bonds Due 2018 [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | 335,563 | 359,307 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Available for sale securities | 73,656 | 76,925 |
Interest rate/currency swap contracts - long term receivables | 3,294 | 16,633 |
Liabilities: | ||
Floating rate NOK bonds due 2014 | 0 | 72,032 |
Floating rate NOK bonds due 2017 | 75,210 | 93,752 |
Floating Rate NOK Bonds due 2019 | 108,542 | 0 |
Interest rate/ currency swap contracts – short-term payables | 517 | 5,705 |
Interest rate/ currency swap contracts – long-term payables | 106,679 | 56,490 |
Estimate of Fair Value Measurement [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | 124,375 | 130,589 |
Estimate of Fair Value Measurement [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | ||
Liabilities: | ||
Unsecured convertible bonds | $335,563 | $359,307 |
FINANCIAL_INSTRUMENTS_Changes_
FINANCIAL INSTRUMENTS (Changes in the fair values of the asset with Level 3 valuation) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2011 | Jan. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance as at December 31, 2014 | $73,656 | 76,925 | |||
Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance as at December 31, 2013 | 20,546 | ||||
Interest income, receivable in form of unlisted second lien loan notes - see (a) below | 3,197 | ||||
Balance as at December 31, 2014 | 23,743 | ||||
Interest Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Interest income, receivable in form of unlisted second lien loan notes - see (a) below | $3,200 | ||||
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Stated interest rate | 3.75% | ||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Stated interest rate | 3.25% | ||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Concentration risk, percentage | 37.00% | 38.00% | 54.00% |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Oct. 31, 2013 | Jun. 30, 2015 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Book value of assets pledged under ship mortgages | $2,062,000,000 | $2,062,000,000 | $1,994,000,000 | ||||
Related Party Transaction [Line Items] | |||||||
Contractual commitments under newbuilding contracts | 85,000,000 | 794,800,000 | |||||
Term of loan in years | 2 years | ||||||
Bridge Loan | 150,000,000 | 150,000,000 | |||||
Ship Finance International Limited share of bridging loan commitment | 61,300,000 | 61,300,000 | |||||
SFL West Polaris and SFL Deepwater [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revolving credit facility, amount drawn | 1,038,300,000 | 1,038,300,000 | |||||
SFL Linus [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Contractual commitments under newbuilding contracts | 405,000,000 | ||||||
Financial Guarantee [Member] | SFL West Polaris and SFL Deepwater [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Guarantee on loan facility | 260,000,000 | 260,000,000 | |||||
SFL West Polaris [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Term loan facility, amount guaranteed | 94,000,000 | 94,000,000 | |||||
Term loan facility, principal amount | 420,000,000 | 700,000,000 | |||||
SFL Linus [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Term loan facility, principal amount | 475,000,000 | ||||||
Scenario, Forecast [Member] | SFL Linus [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Term loan facility, amount guaranteed | 90,000,000 | ||||||
Subsequent Event [Member] | SFL West Polaris [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Term loan facility, amount guaranteed | $88,000,000 |
CONSOLIDATED_VARIABLE_INTEREST1
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
variable_interest_entities | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 18 | |
Estimated residual values of leased property (un-guaranteed) | $239,002,000 | $278,152,000 |
Variable Interest Entities With Assets Accounted for as Direct Financing Leases [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 2 | |
Carrying value of vessels | 65,000,000 | |
Unearned lease income | 16,000,000 | |
Estimated residual values of leased property (un-guaranteed) | 21,700,000 | |
Outstanding loan balance | 28,600,000 | |
Outstanding loan balance, current portion | 4,800,000 | |
Variable Interest Entities With Assets Accounted for as Operating Lease Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 16 | |
Carrying value of vessels | 373,100,000 | |
Outstanding loan balance | 197,500,000 | |
Outstanding loan balance, current portion | $18,800,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 5 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2010 | 31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2013 | Oct. 31, 2012 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 19, 2014 | Oct. 31, 2012 | Feb. 28, 2015 | Oct. 31, 2013 | Jun. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Floating Rate Debt [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | SFL Linus [Member] | US Dollar 70 Million Secured Term Loan Facility [Member] | ||
employees | employees | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | NOK | NOK | Subsequent Event [Member] | NOK | NOK | NOK | Subsequent Event [Member] | USD ($) | USD ($) | ||||
employees | vessel | USD ($) | NOK | NOK | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Term of lease or charter (in excess of 15 years) | 8 years | |||||||||||||||||
Debt amount | $127,500,000 | 600,000,000 | 900,000,000 | 900,000,000 | $475,000,000 | $70,000,000 | ||||||||||||
Amount of debt repurchased | 36,000,000 | 7,000,000 | 8,000,000 | 36,000,000 | ||||||||||||||
Dividend declared | $0.42 | |||||||||||||||||
Number of officers who exercised options | 1 | 2 | ||||||||||||||||
Term of time charter | 5 years | 7 years | ||||||||||||||||
Number of vessels delivered | 2 | |||||||||||||||||
Asset Impairment Charges | $11,800,000 | $0 | $0 | |||||||||||||||
Number of employees exercising options | 2 | 2 | 2 | |||||||||||||||
Options exercised (in shares) | 144,000 | 35,000 | 39,000 | |||||||||||||||
Exercised share price (in dollars per share) | $6.44 | $5.29 | $10.71 | $10.71 |