DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ship Finance International LTD | |
Entity Central Index Key | 1,289,877 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 871,989,922 | |
Entity Common Stock, Shares Outstanding | 101,504,575 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating revenues | |||
Direct financing lease interest income - related parties | $ 22,850 | $ 34,193 | $ 45,363 |
Direct financing and sales-type lease interest income - other | 331 | 0 | 0 |
Finance lease service revenues - related parties | 44,523 | 46,460 | 46,488 |
Profit sharing revenues - related parties | 51,470 | 59,607 | 33,756 |
Profit sharing revenues - other | 74 | 0 | 0 |
Time charter revenues - related parties | 55,265 | 30,319 | 10,039 |
Time charter revenues - other | 171,483 | 130,459 | 83,013 |
Bareboat charter revenues - related parties | 10,075 | 12,596 | 16,364 |
Bareboat charter revenues - other | 34,964 | 55,419 | 53,407 |
Voyage charter revenues - other | 19,329 | 35,783 | 34,608 |
Other operating income | 2,587 | 1,904 | 4,449 |
Total operating revenues | 412,951 | 406,740 | 327,487 |
(Loss)/gain on sale of assets and termination of charters, net | (167) | 7,364 | 23,931 |
Operating expenses | |||
Vessel operating expenses - related parties | 67,221 | 56,939 | 49,170 |
Vessel operating expenses - other | 68,795 | 63,892 | 70,300 |
Depreciation | 94,293 | 78,080 | 67,393 |
Vessel impairment charge | 5,314 | 42,410 | 11,800 |
Administrative expenses - related parties | 1,443 | 1,032 | 965 |
Administrative expenses - other | 7,629 | 5,705 | 6,644 |
Total operating expenses | 244,695 | 248,058 | 206,272 |
Net operating income | 168,089 | 166,046 | 145,146 |
Non-operating income / (expense) | |||
Interest income – related parties, associated companies | 18,675 | 18,672 | 24,464 |
Interest income – related parties, other | 897 | 13,395 | 4,029 |
Interest income - other | 2,164 | 7,075 | 11,958 |
Interest expense - other | (71,843) | (70,583) | (86,081) |
(Loss)/gain on purchase of bonds | (8,802) | 1,007 | (21) |
Gain on sale of investment in associated company | 0 | 0 | 6,055 |
Gain on redemption of loan notes - related parties | 0 | 28,904 | 0 |
Gain on sale of loan notes and share warrants - other | 0 | 44,552 | 0 |
Available-for-sale securities impairment charge | 0 | (20,552) | 0 |
Dividend income - related parties | 11,550 | 0 | 0 |
Other financial items, net | (2,089) | (21,289) | (16,232) |
Net income before equity in earnings of associated companies | 118,641 | 167,227 | 89,318 |
Equity in earnings of associated companies | 27,765 | 33,605 | 33,497 |
Net income | $ 146,406 | $ 200,832 | $ 122,815 |
Per share information: | |||
Basic earnings per share (in dollars per share) | $ 1.57 | $ 2.15 | $ 1.32 |
Weighted average number of shares outstanding, basic | 93,497 | 93,450 | 93,331 |
Diluted earnings per share (in dollars per share) | $ 1.50 | $ 1.88 | $ 1.24 |
Weighted average number of shares outstanding, diluted | 108,040 | 119,008 | 116,747 |
Cash dividend per share declared and paid (in dollars per share) | $ 1.80 | $ 1.74 | $ 1.63 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 146,406 | $ 200,832 | $ 122,815 |
Fair value adjustments to hedging financial instruments | 9,702 | 27,154 | (351) |
Fair value adjustments to hedging financial instruments in associated companies | 1,150 | 158 | (5) |
Reclassification into net income of previous fair value adjustments to hedging financial instruments | 0 | (1,348) | (4,504) |
Fair value adjustments to available-for-sale securities | (93,406) | 981 | (8,355) |
Reclassification into net income of previous fair value adjustments to available-for-sale securities | 0 | 20,552 | 0 |
Other items of comprehensive (loss)/income | (38) | (136) | (179) |
Other comprehensive (loss)/income, net of tax | (82,592) | 47,361 | (13,394) |
Comprehensive income | $ 63,814 | $ 248,193 | $ 109,421 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 62,382 | $ 70,175 |
Available-for-sale securities | 118,489 | 199,594 |
Trade accounts receivable | 3,549 | 2,057 |
Due from related parties | 17,519 | 45,659 |
Other receivables | 11,370 | 10,441 |
Inventories | 5,083 | 5,056 |
Prepaid expenses and accrued income | 3,608 | 5,790 |
Investment in direct financing and sales-type leases, current portion | 32,220 | 37,145 |
Assets Held-for-sale | 24,097 | 0 |
Financial instruments (short-term): at fair value | 110 | 0 |
Total current assets | 278,427 | 375,917 |
Vessels and equipment, net | 1,737,169 | 1,641,317 |
Newbuildings | 33,447 | 40,149 |
Investment in direct financing and sales-type leases, long-term portion | 523,815 | 474,298 |
Investment in associated companies | 130 | 84,615 |
Loans to related parties - associated companies, long-term | 330,087 | 387,712 |
Receivables from related parties - others, long-term | 9,268 | 0 |
Other long-term assets | 18,992 | 27,746 |
Financial instruments (long-term): at fair value | 6,042 | 800 |
Total assets | 2,937,377 | 3,032,554 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 174,900 | 208,031 |
Trade accounts payable | 1,229 | 835 |
Due to related parties | 850 | 416 |
Accrued expenses | 13,800 | 12,646 |
Financial instruments (short-term): at fair value | 39,309 | 0 |
Other current liabilities | 8,882 | 17,037 |
Total current liabilities | 238,970 | 238,965 |
Long-term liabilities | ||
Long-term debt | 1,377,974 | 1,426,174 |
Financial instruments (long-term): at fair value | 61,456 | 113,642 |
Other long-term liabilities | 124,882 | 11,963 |
Total liabilities | 1,803,282 | 1,790,744 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Share capital ($0.01 par value; 150,000,000 shares authorized; 101,504,575 shares issued and outstanding at December 31, 2016). ($1.00 par value; 125,000,000 shares authorized; 93,468,000 shares issued and outstanding at December 31, 2015). | 1,015 | 93,468 |
Additional paid-in capital | 282,502 | 285,859 |
Contributed surplus | 680,703 | 588,133 |
Accumulated other comprehensive loss | (84,779) | (1,037) |
Accumulated other comprehensive loss – associated companies | (976) | (2,126) |
Retained earnings | 255,630 | 277,513 |
Total stockholders' equity | 1,134,095 | 1,241,810 |
Total liabilities and stockholders' equity | $ 2,937,377 | $ 3,032,554 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' equity | |||||
Share capital, par value (in dollars per share) | $ 0.01 | $ 1 | $ 1 | ||
Share Capital, shares authorized | 150,000,000 | 125,000,000 | |||
Share Capital, shares issued | 101,504,575 | 93,504,575 | 93,468,000 | ||
Share Capital, shares outstanding | 101,504,575 | 93,468,000 | 93,404,000 | 93,260,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 146,406 | $ 200,832 | $ 122,815 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 94,293 | 78,080 | 67,393 |
Vessel impairment charge | 5,314 | 42,410 | 11,800 |
Available-for-sale securities impairment charge | 0 | 20,552 | 0 |
Amortization of deferred charges | 10,972 | 11,613 | 11,271 |
Amortization of seller's credit | (1,324) | (1,904) | (1,903) |
Equity in earnings of associated companies | (27,765) | (33,605) | (33,497) |
Loss/(gain) on sale of assets and termination of charters | 167 | (7,364) | (23,931) |
Gain on sale of investment in associated company | 0 | 0 | (6,055) |
Gain on redemption of Horizon loan notes and warrants | 0 | (44,552) | 0 |
Gain on redemption of Frontline loan notes | 0 | (28,904) | 0 |
Adjustment of derivatives to fair value recognized in net income | (4,399) | 13,278 | 7,699 |
Loss/(gain) on repurchase of bonds | 8,802 | (1,007) | 21 |
Interest receivable in form of notes | (633) | (2,182) | (3,197) |
Other, net | 365 | (1,134) | (458) |
Changes in operating assets and liabilities | |||
Trade accounts receivable | (1,492) | 1,196 | 5,109 |
Due from related parties | 8,433 | 14,105 | (20,634) |
Other receivables | (856) | (840) | (9,418) |
Inventories | (27) | (2,529) | (320) |
Prepaid expenses and accrued income | 2,181 | (715) | (1,104) |
Trade accounts payable | 394 | (1,572) | (1,095) |
Accrued expenses | 1,046 | (5,302) | 4,358 |
Other current liabilities | (11,804) | 7,945 | 3,547 |
Net cash provided by operating activities | 230,073 | 258,401 | 132,401 |
Investing activities | |||
Repayments from investments in direct financing and sales-type leases | 30,410 | 35,946 | 43,120 |
Additions to newbuildings | (188,142) | (223,109) | (202,333) |
Purchase of vessels | 0 | (273,552) | (192,864) |
Proceeds from sale of vessels and termination of charters | 29,102 | 42,275 | 199,429 |
Proceeds from sale of investment in associated company | 0 | 111,095 | 0 |
Proceeds from redemption of Horizon loan notes and warrants | 0 | 71,681 | 0 |
Proceeds from redemption of Frontline loan notes | 0 | 112,687 | 0 |
Net amounts received from/(paid to) associated companies | 193,517 | (62,083) | 88,585 |
Proceeds from repayment of investment loan (included in other receivables) | 0 | 0 | 50,000 |
Other investments and long-term assets, net | (25,488) | (20,722) | (7,877) |
Net cash provided by/(used in) investing activities | 39,399 | (205,782) | (21,940) |
Financing activities | |||
Proceeds from shares issued, net of issuance costs | 323 | 675 | 927 |
Payments in lieu of issuing shares for exercised share options | 0 | 0 | (1,196) |
Repurchase of bonds | (296,800) | (23,787) | (75,262) |
Proceeds from issuance of short-term and long-term debt | 522,000 | 595,305 | 733,632 |
Repayments of short-term and long-term debt | (329,303) | (435,706) | (616,783) |
Debt fees paid | (5,099) | (7,155) | (7,460) |
Repayments of lease obligation liability | (97) | 0 | 0 |
Cash dividends paid | (168,289) | (162,594) | (152,142) |
Net cash used in financing activities | (277,265) | (33,262) | (118,284) |
Net (decrease)/increase in cash and cash equivalents | (7,793) | 19,357 | (7,823) |
Cash and cash equivalents at start of the year | 70,175 | 50,818 | 58,641 |
Cash and cash equivalents at end of the year | 62,382 | 70,175 | 50,818 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | $ 65,184 | $ 68,215 | $ 82,524 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Share capital | Additional paid-in capital | Contributed surplus | Accumulated other comprehensive loss | Accumulated other comprehensive loss – associated companies | Retained earnings |
Balance, at beginning of year at Dec. 31, 2013 | $ 1,191,933 | $ 93,260 | $ 285,632 | $ 581,569 | $ (34,851) | $ (2,279) | $ 268,602 |
Balance, at beginning of year (in shares) at Dec. 31, 2013 | 93,260,000 | 93,260,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Payments in lieu of issuing shares | $ (1,196) | (1,196) | |||||
Amortization of stock-based compensation | 29 | 29 | |||||
Shares issued | $ 927 | $ 144 | 783 | ||||
Shares issued (in shares) | 144,000 | 144,000 | |||||
Transfer arising from reduction in par value of issued shares | $ 0 | 0 | |||||
Equity component of convertible bond issuance due 2021 | $ 0 | 0 | |||||
Adjustment to equity component of convertible bond issuance due 2018 arising from reacquisition of bonds | 0 | ||||||
Amortization of deferred equity contributions | 4,520 | 4,520 | |||||
Gain on hedging financial instruments reclassified into earnings | (4,504) | (4,504) | |||||
Fair value adjustments to hedging financial instruments | (351) | (351) | |||||
Loss on available-for-sale securities reclassified into earnings | 0 | 0 | |||||
Fair value adjustments to available-for-sale securities | (8,355) | (8,355) | |||||
Other items of comprehensive (loss)/income | (179) | (179) | |||||
Fair value adjustments to hedging financial instruments in associated companies | (5) | (5) | |||||
Net income | 122,815 | 122,815 | |||||
Dividends declared | (152,142) | (152,142) | |||||
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 | |||||
Accumulated other comprehensive loss | |||||||
Fair value adjustments to hedging financial instruments | $ (40,965) | ||||||
Fair value adjustments to available-for-sale securities | (7,087) | ||||||
Other items | (188) | ||||||
Accumulated other comprehensive loss | (48,240) | ||||||
Payments in lieu of issuing shares | 0 | 0 | |||||
Amortization of stock-based compensation | 0 | 0 | |||||
Shares issued | $ 675 | $ 64 | 611 | ||||
Shares issued (in shares) | 64,000 | 64,000 | |||||
Transfer arising from reduction in par value of issued shares | $ 0 | 0 | |||||
Equity component of convertible bond issuance due 2021 | $ 0 | 0 | |||||
Adjustment to equity component of convertible bond issuance due 2018 arising from reacquisition of bonds | 0 | ||||||
Amortization of deferred equity contributions | 2,044 | 2,044 | |||||
Gain on hedging financial instruments reclassified into earnings | (1,348) | (1,348) | |||||
Fair value adjustments to hedging financial instruments | 27,154 | 27,154 | |||||
Loss on available-for-sale securities reclassified into earnings | 20,552 | 20,552 | |||||
Fair value adjustments to available-for-sale securities | 981 | 981 | |||||
Other items of comprehensive (loss)/income | (136) | (136) | |||||
Fair value adjustments to hedging financial instruments in associated companies | 158 | 158 | |||||
Net income | 200,832 | 200,832 | |||||
Dividends declared | (162,594) | (162,594) | |||||
Balance, at end of year at Dec. 31, 2015 | $ 1,241,810 | $ 93,468 | 285,859 | 588,133 | (1,037) | (2,126) | 277,513 |
Balance, at end of year (in shares) at Dec. 31, 2015 | 93,468,000 | 93,468,000 | |||||
Accumulated other comprehensive loss | |||||||
Fair value adjustments to hedging financial instruments | $ (15,159) | ||||||
Fair value adjustments to available-for-sale securities | 14,446 | ||||||
Other items | (324) | ||||||
Accumulated other comprehensive loss | (1,037) | ||||||
Payments in lieu of issuing shares | 0 | 0 | |||||
Amortization of stock-based compensation | 403 | 403 | |||||
Shares issued | $ 323 | $ 117 | 206 | ||||
Shares issued (in shares) | 8,036,575 | 8,036,575 | |||||
Transfer arising from reduction in par value of issued shares | $ (92,570) | ||||||
Equity component of convertible bond issuance due 2021 | $ (3,966) | 4,551 | |||||
Adjustment to equity component of convertible bond issuance due 2018 arising from reacquisition of bonds | (8,517) | ||||||
Amortization of deferred equity contributions | 0 | 0 | |||||
Gain on hedging financial instruments reclassified into earnings | 0 | 0 | |||||
Fair value adjustments to hedging financial instruments | 9,702 | 9,702 | |||||
Loss on available-for-sale securities reclassified into earnings | 0 | 0 | |||||
Fair value adjustments to available-for-sale securities | (93,406) | (93,406) | |||||
Other items of comprehensive (loss)/income | (38) | (38) | |||||
Fair value adjustments to hedging financial instruments in associated companies | 1,150 | 1,150 | |||||
Net income | 146,406 | 146,406 | |||||
Dividends declared | (168,289) | (168,289) | |||||
Balance, at end of year at Dec. 31, 2016 | $ 1,134,095 | $ 1,015 | $ 282,502 | $ 680,703 | $ (84,779) | $ (976) | $ 255,630 |
Balance, at end of year (in shares) at Dec. 31, 2016 | 101,504,575 | 101,504,575 | |||||
Accumulated other comprehensive loss | |||||||
Fair value adjustments to hedging financial instruments | $ (5,457) | ||||||
Fair value adjustments to available-for-sale securities | (78,960) | ||||||
Other items | (362) | ||||||
Accumulated other comprehensive loss | $ (84,779) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2016 | |
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. 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, 2016 , the Company owned 11 very large crude oil carriers ("VLCCs"), four Suezmax crude oil carriers, eight Capesize dry bulk carriers, five Supramax dry bulk carriers, seven Handysize dry bulk carriers, two Kamsarmax dry bulk carriers, 20 container vessels, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore support 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). At December 31, 2016 , the Company had also contracted to acquire two product tankers scheduled for delivery in 2017. In addition, the Company has entered into agreements to charter-in two 19,200 twenty-foot equivalent units ("TEU") newbuilding container vessels on a long-term bareboat basis, one of which was delivered from the shipyard in December 2016, with the other delivered in March 2017. At December 31, 2016 , one of the VLCCs was being classified as a "held for sale" asset. 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, 2016 | |
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, 2016, 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 also previously Frontline Shipping II Limited ("Frontline Shipping II"), which are related parties, are accrued based on amounts earned at the reporting date. Such profit share income has two elements: - 50% profit sharing: From January 1, 2012, up to and including June 30, 2015, the charter agreements with Frontline Shipping and Frontline Shipping II included provisions whereby they were to pay the Company profit sharing of 25% 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. In December 2011, the Company received a $106 million compensation payment from Frontline Ltd. ("Frontline"), of which $50 million represented a non-refundable advance relating to this 25% profit sharing agreement. The amendments to the charter agreements made on June 5, 2015, increased the profit sharing percentage to 50% for earnings above new threshold levels from July 1, 2015, onwards. The Company did not recognize any income under the 25% profit sharing agreement, as the cumulative share of earnings did not attain the starting level of $50 million over the three and a half years of the agreement's duration. The new 50% profit sharing agreement is not subject to any such constraints. - Cash sweep: The charter agreements effective from January 1, 2012, were essentially the continuation of previous agreements amended to temporarily reduce the time-charter rates by $6,500 per day for the four year period commencing January 1, 2012. The agreements additionally provided that during the four year period Frontline Shipping and Frontline Shipping II would 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. This arrangement was terminated with effect from July 1, 2015 (see Note 23: Related party transactions). As detailed in Note 23: Related party transactions, the Company also has, or has had, profit sharing arrangements with related parties Golden Ocean Group Limited ("Golden Ocean"), Deep Sea Supply Plc ("Deep Sea") and United Freight Carriers ("UFC"). Amounts receivable under these arrangements are accrued on the basis of amounts earned at the reporting date. 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 share investments and interest-earning listed and unlisted corporate bonds. Any premium paid on their 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. If circumstances arise which lead the Company to believe that the issuer of a corporate bond may be unable meet its payment obligations in full, or that the fair value at acquisition of the share investment or corporate bond may otherwise not be fully recoverable, then to the extent that a loss is expected to arise that unrealized loss is recorded as an impairment in the statement of operations, with an adjustment if necessary to any unrealized gains or losses previously recorded in 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, 2016 and 2015 , 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 rates applicable to borrowings outstanding during the period. 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 one long-term investment, consisting 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 of $2.9 million was made to the carrying value of this asset in 2012, reducing its carrying value to $ nil ( December 31, 2015 : $ nil ; December 31, 2014: $ nil ). 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 each lease was recorded as a deferred deemed equity contribution. These deferred deemed equity contributions were presented as a reduction in the net investment in direct financing leases in the balance sheet, due to the related party nature of both the transfer of the vessels and the subsequent direct financing leases. The deferred deemed equity contributions were amortized as credits to contributed surplus over the life of the lease arrangements, as lease payments were applied to the principal balance of each lease receivable. Amendments were made to the charter agreements on June 5, 2015, reducing daily lease payments from July 1, 2015, onwards. In the course of re-stating the amended leases, it was concluded that amortization of the deferred deemed equity contributions is no longer appropriate and these items are now incorporated into the revised lease schedules. 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, 2016, and concluded that the carrying value of one container vessel was impaired and a charge was taken against this vessel. In the year ended December 31, 2015 , reviews of the carrying value of long-lived assets indicated that two container vessels and two off-shore supply vessels were impaired, and charges were taken against those assets. In the year ended December 31, 2014, reviews of the carrying value of long-lived assets indicated that the carrying value of five container vessels were impaired, and charges were taken against those assets, which were sold in 2015. 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 Adopted Accounting Standards During the period, the Company adopted ASU 2015-03 "Interest - Imputation of Interest, (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and premiums. This ASU is effective for fiscal years beginning after December 15, 2015, and is effective retrospectively. As a result, at December 31, 2016, $27.1 million ( December 31, 2015 : $32.3 million ) of debt issuance costs have been reclassified from Non-Current Assets to Non-Current Liabilities as a direct deduction from long-term debt (see Note 19 - Long-Term Debt). |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers" which will replace almost all existing revenue recognition guidance in U.S. GAAP and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 was effective for reporting periods and interim periods beginning on or after December 15, 2016. In August 2015, the FASB issued ASU 2015-14 "Deferral of the Effective Date" to delay the implementation of ASU 2014-09 by one year, in response to feedback from preparers, practitioners and users of financial statements. Accordingly, ASU 2014-09 is now effective for reporting periods and interim periods beginning on or after December 15, 2017. The Company is in the process of considering the impact of the standard on its consolidated financial statements and expects to complete the assessment during fiscal year 2017. For vessels operating on voyage charters, we expect to continue recognizing revenue over time. The time period over which revenue will be recognized is still being determined and, depending on the final conclusion, each period’s voyage results could differ materially from the same period’s voyage results recognized based on the present revenue recognition guidance. However, the total voyage results recognized over all periods would not change. The adoption of the standard is not expected to have a material impact on other income, primarily income earned from the commercial management of related party and third party vessels and newbuilding supervision fees derived from related parties and third parties. In January 2016, the FASB issued ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 particularly relates to the fair value and impairment of equity investments, financial instruments measured at amortized cost, and the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU 2016-01 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is only permitted for certain particular amendments within ASU 2016-01, where financial statements have not yet been issued. ASU 2016-01 will require the Company to recognize any changes in the fair value of certain equity investments in net income. These changes are currently recognized in other comprehensive income. In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of ASU 2016-02 on its consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09 "Compensation - Stock Compensation" to introduce improvements to employee share-based payment accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. In March 2016, the FASB issued ASU 2016-07 "Investments - Equity Method and Joint Ventures" to simplify the transition to the equity method of accounting. ASU 2016-07 eliminates the requirement that when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership, the investor must adjust the investment, results of operations and retained earnings retrospectively as if the equity method had been in effect during all previous periods in which the investment had been held. ASU 2016-07 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years with early adoption permitted. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently assessing the impact of ASU 2016-15 on its statement of consolidated cash flows. In January 2017, the FASB issued ASU 2017-01 "Business Combinations (Topic 805) -Clarifying the Definition of a Business" which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is required to be applied prospectively and will be effective for the Company beginning January 1, 2018. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
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. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | |
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 $) 2016 2015 2014 Basic: Net income available to stockholders 146,406 200,832 122,815 Diluted: Net income available to stockholders 146,406 200,832 122,815 Interest and other expenses attributable to convertible bonds 15,310 22,449 22,431 Net income assuming dilution 161,716 223,281 145,246 The components of the denominator for the calculation of basic and diluted EPS are as follows: Year ended December 31 (in thousands) 2016 2015 2014 Basic earnings per share: Weighted average number of common shares outstanding 93,497 93,450 93,331 Diluted earnings per share: Weighted average number of common shares outstanding 93,497 93,450 93,331 Effect of dilutive share options — 23 84 Effect of dilutive convertible debt 14,543 25,535 23,332 Weighted average number of common shares outstanding assuming dilution 108,040 119,008 116,747 The weighted average number of common shares outstanding excludes 8,000,000 shares issued as part of a share lending arrangement relating to the issue in October 2016 of 5.75% convertible bonds. These shares are owned by the Company and will be returned on or before maturity of the bonds in 2021. The 3.75% convertible bonds were fully redeemed in cash in February 2016, without any conversion having taken place. The 5.75% convertible bonds were issued in October 2016. Share options were not dilutive at December 31, 2016 . |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , are as follows: (in thousands of $) Year ending December 31, 2017 245,539 2018 230,380 2019 205,314 2020 186,447 2021 138,058 Thereafter 177,428 Total minimum lease revenues 1,183,166 The cost and accumulated depreciation of vessels leased to third parties on operating leases at December 31, 2016 and 2015 were as follows: (in thousands of $) 2016 2015 Cost 2,154,994 1,964,852 Accumulated depreciation 417,825 323,535 Vessels and equipment, net 1,737,169 1,641,317 An impairment charge of $4.8 million was recorded against the carrying value of one container vessel in the year ended December 31, 2016 . In the year ended December 31, 2015 , an impairment charge of $29.2 million was recorded against the carrying value of two container vessels. |
(LOSS)_GAIN ON SALE OF ASSETS A
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | 12 Months Ended |
Dec. 31, 2016 | |
Gain (Loss) on Disposition of Assets [Abstract] | |
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS The Company has recorded gains/losses on sale of assets and termination of charters as follows: Year ended December 31 (in thousands of $) 2016 2015 2014 (Loss) / gain on sale of assets (167 ) 7,364 (1,384 ) Gain on termination of charters — — 25,315 Total (loss) / gain on sale of assets and termination of charters (167 ) 7,364 23,931 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)/Gain on sale of vessels The offshore support vessel Sea Bear , which was accounted for as a direct financing lease asset, was sold to an unrelated party in February 2016. An impairment charge of $8.1 million had been recorded against the carrying value of this vessel in the year ended December 31, 2015 , and a gain of $14,000 was recorded on its disposal. Sales proceeds included compensation received for early termination of the charter (see Note 23: Related party transactions). The VLCC Front Vanguard , which was also a direct financing lease asset, was sold to an unrelated party in July 2016. Sales proceeds included compensation received for early termination of the charter (see Note 23) and a loss of $181,000 was recorded on its disposal. The net loss on sale of these vessels in the year ended December 31, 2016 , was $167,000 . During the year ended December 31, 2015 , the Company sold three Suezmax tankers and five container vessels to unrelated parties and realized aggregate net gains of $7.4 million on their disposal. During the year ended December 31, 2014 , the Company sold three double-hull VLCCs to unrelated parties and realized losses of $1.4 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 dry bulk 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. |
GAIN ON SALE OF LOAN NOTES AND
GAIN ON SALE OF LOAN NOTES AND SHARE WARRANTS - OTHER | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
GAIN ON SALE OF LOAN NOTES AND SHARE WARRANTS - OTHER | GAIN ON SALE OF LOAN NOTES AND SHARE WARRANTS - OTHER In May 2015, the Company sold its holding of loan notes in Horizon Lines, LLC and share warrants in Horizon Lines, Inc. for total net cash proceeds of approximately $71.7 million . These unlisted second lien interest-bearing loan notes and share warrants had been received as compensation on termination of charters to Horizon Lines, LLC in April 2012. At the time of disposal, the notes had a carrying value of approximately $25.9 million and the warrants had a carrying value of approximately $1.2 million , resulting in a total gain of $44.6 million on disposal. |
OTHER FINANCIAL ITEMS
OTHER FINANCIAL ITEMS | 12 Months Ended |
Dec. 31, 2016 | |
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 $) 2016 2015 2014 Net increase/(decrease) in fair value of non-designated derivatives 3,917 (13,051 ) (7,636 ) Net cash payments on non-designated derivatives (4,913 ) (6,453 ) (7,196 ) Net increase/(decrease) in fair value of designated derivatives (ineffective portion) 482 (227 ) (63 ) Other items (1,575 ) (1,558 ) (1,337 ) Total other financial items (2,089 ) (21,289 ) (16,232 ) 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, 2016 , includes $ nil ( 2015 : $(1.3) million ; 2014 : $(4.5) million ) 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, 2016 , include a net gain of $146,000 arising from foreign currency translation ( 2015 : $53,000 ; 2014 : $109,000 ). 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, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE FOR SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES Marketable securities held by the Company are debt securities and share investments considered to be available-for-sale securities. (in thousands of $) 2016 2015 Amortized cost 197,449 185,148 Accumulated net unrealized (loss)/gain (78,960 ) 14,446 Carrying value 118,489 199,594 The Company's investment in marketable securities consists of investments in shares and secured notes which mature in 2019. Available-for-sale securities are recorded at fair value, with unrealized gains and losses recorded as a separate component of other comprehensive income. The net unrealized loss on available-for-sale securities included in other comprehensive income as at December 31, 2016 , was $79.0 million ( 2015 : net unrealized gain $14.4 million ). The investments in shares at December 31, 2016 , consist of listed shares in Frontline with a carrying value of $78.2 million ( 2015 : $164.5 million ) (see Note 23: Related party transactions and Note 16: Investment in associated companies) and shares in NorAm Drilling Company AS traded on the Norwegian Over the Counter market ("OTC") with a carrying value of $1.4 million (2015: $ nil ). The investments in secured notes at December 31, 2016 , consists of listed and unlisted corporate bonds with a total carrying value of $38.9 million ( 2015 : $35.1 million ). The Company recorded no impairment charge in respect of available-for-sale securities in the year ended December 31, 2016 . In December 2015, the Company determined that the bonds were other-than-temporarily impaired and recorded an impairment charge of $20.6 million , reducing their amortized cost to fair value at December 31, 2015 . |
TRADE ACCOUNTS RECEIVABLE AND O
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2015 . As at December 31, 2016 , 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, which include accrued interest on notes held as available-for-sale securities, amounts due from vessel managers and claims receivable, are presented with no allowance for doubtful accounts as of December 31, 2016 and December 31, 2015 . |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET ( in thousands of $) 2016 2015 Cost 2,154,994 1,964,852 Accumulated depreciation 417,825 323,535 Vessels and equipment, net 1,737,169 1,641,317 During 2016 , the Company took delivery of two newbuilding container vessels at an aggregate cost of $195.0 million . During 2015 , the Company took delivery of eight second-hand dry bulk carriers at an aggregate cost of $272.0 million and three newbuilding container vessels at an aggregate cost of $270.7 million . An impairment charge of $4.8 million was recorded against the carrying value of one container vessel in the year ended December 31, 2016 . In the year ended December 31, 2015 , an impairment charge of $29.2 million was recorded against the carrying value of two container vessels. Depreciation expense was $94.3 million for the year ended December 31, 2016 ( 2015 : $78.1 million ; 2014 : $67.4 million ). |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2016 | |
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 relating to the acquisition of newbuilding vessels, together with capitalized loan interest. Interest capitalized in the cost of newbuildings amounted to $1.2 million in the year ended December 31, 2016 ( 2015 : $0.4 million ; 2014 : $0.3 million ). As at December 31, 2016 , the Company had agreements for the delivery of two newbuilding vessels ( 2015 : four newbuilding vessels), being two oil product carriers ( 2015 : two container vessels and two oil product tankers), with accumulated costs of $33.4 million ( 2015 : $40.1 million ). In the year ended December 31, 2016 , two newbuilding container vessels were delivered and no new agreements were entered into for the acquisition of newbuilding vessels. |
INVESTMENTS IN DIRECT FINANCING
INVESTMENTS IN DIRECT FINANCING LEASES | 12 Months Ended |
Dec. 31, 2016 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
INVESTMENTS IN DIRECT FINANCING LEASES | INVESTMENTS IN DIRECT FINANCING LEASES As at December 31, 2016 , 12 ( 2015 : 14 ) of the Company's VLCCs and Suezmax tankers are accounted for as direct financing leases. These vessels are chartered to Frontline Shipping on long-term, fixed rate time charters which extend for various periods depending on the age of the vessels, ranging from approximately four to ten years. Frontline Shipping is a subsidiary 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. The VLCC Front Vanguard , which was accounted for as a direct financing lease at December 31, 2015 , was sold in July 2016 (see Note 8: (Loss)/gain on sale of assets). In November 2016, the Company agreed to sell the VLCC Front Century , also accounted for as a direct financing lease at December 31, 2015 , to an unrelated third party. The Company agreed to terminate the charter with Frontline Shipping upon delivery of the vessel to the new owner, which occurred in March 2017. In accordance with US GAAP, this asset has been reclassified and is presented on the balance sheet as "Asset held for sale". An impairment loss of $0.5 million was recorded to write down its carrying value to its fair value less anticipated cost to sell. Also at December 31, 2016 , one of the Company's offshore support vessels is accounted for as a direct financing lease. The vessel is chartered on a long-term bareboat charter to Deep Sea Supply Shipowning II AS , a subsidiary of Deep Sea Supply AS (formerly Deep Sea Supply BTG AS), which was a joint venture owned 50% by Deep Sea and 50% by BTG Pactual Oil & Gas Empreendimentos e Particapacoes S.A. ("BTG Pactual"). In September 2016, Deep Sea acquired BTG Pactual's share in the joint venture and Deep Sea joined Deep Sea Supply AS as charter guarantor under the amended charter agreements. The terms of the charter provide the charterer with a call option to acquire the vessel at the expiry of the charter in 2023. At December 31, 2015 , a second offshore support vessel was accounted for as a direct financing lease. This vessel was sold in February 2016 and had been chartered on a long-term bareboat charter to DESS Cyprus Limited, a wholly owned subsidiary of Deep Sea. Deep Sea is a related party. In October 2015, the Company entered into agreements to charter in two newbuilding container vessels on a bareboat basis, each for a period of 15 years from delivery by the shipyard, and to charter out each vessel on a bareboat basis for the same 15 year period to MSC Mediterranean Shipping Company S.A. ("MSC"), an unrelated party. The first of these vessels, the MSC Anna , was delivered in December 2016 and this vessel is accounted for as a direct financing lease asset. The above 14 vessels were accounted for as direct financing leases at December 31, 2016 ( 2015 : 16 ), and all except one ( MSC Anna) are leased to related parties. The following lists the components of the investments in direct financing leases as at December 31, 2016 , and December 31, 2015 : (in thousands of $) 2016 2015 Total minimum lease payments to be received 862,083 825,460 Less : amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (287,168 ) (362,959 ) Net minimum lease payments receivable 574,915 462,501 Estimated residual values of leased property (un-guaranteed) 213,901 195,238 Less : unearned income (232,781 ) (146,296 ) Total investment in direct financing leases 556,035 511,443 Current portion 32,220 37,145 Long-term portion 523,815 474,298 556,035 511,443 The chartered-in vessel MSC Anna is included in the above, with a total carrying value at December 31, 2016 , of $144.9 million (2015: $ nil ). The minimum future gross revenues to be received under the Company's non-cancellable direct financing leases as of December 31, 2016 , are as follows: (in thousands of $) Year ending December 31, 2017 101,237 2018 101,203 2019 103,609 2020 99,421 2021 88,855 Thereafter 367,758 Total minimum lease revenues 862,083 |
INVESTMENT IN ASSOCIATED COMPAN
INVESTMENT IN ASSOCIATED COMPANIES | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
INVESTMENT IN ASSOCIATED COMPANIES | INVESTMENT IN ASSOCIATED COMPANIES The Company has, and has had, 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. In addition, on June 5, 2015, the Company received 55 million shares in Frontline, equivalent to approximately 27.73% of Frontline's issued share capital at the time (see Note 23: Related party transactions). Frontline, which is listed on the New York Stock Exchange and the Oslo Stock Exchange and reports its operating results on a quarterly basis, was determined to be an associated company following receipt of these shares. On November 30, 2015, Frontline merged with Frontline 2012 Ltd ("Frontline 2012") and increased its issued share capital, thereby reducing the Company's shareholding in Frontline to approximately 7.03% . Accordingly, Frontline was assessed as no longer being an associated company and the Frontline shares are now held as available-for-sale securities (see Note 11: Available-for-sale securities). The Company's share of the net income of Frontline, in the period of the year ended December 31, 2015 , during which it was an associated company accounted for using the equity method, was $2.6 million ( 2016 : $ nil ; 2014 : $ nil ). The Company also received a dividend of $2.8 million from Frontline in December 2015, which was recorded against the carrying value of this investment. At December 31, 2016 , 2015 and 2014 , the Company had the following participation in investments that are recorded using the equity method: 2016 2015 2014 SFL Deepwater Ltd 100.00 % 100.00 % 100.00 % SFL Hercules Ltd 100.00 % 100.00 % 100.00 % SFL Linus Ltd 100.00 % 100.00 % 100.00 % SFL West Polaris Limited — % — % — % Bluelot Shipping Company Limited — % — % — % SFL Corte Real Limited — % — % — % 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. Although the Company has had no equity-accounted interest in SFL West Polaris Limited ("SFL West Polaris"), Bluelot Shipping Company Limited ("Bluelot") and SFL Corte Real Limited ("Corte Real") since December 31, 2014, the Company had equity-accounted earnings from these companies during the year ended December 31, 2014, as shown below. 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 Limited ("Seadrill"), a related party. In June 2013, SFL Deepwater transferred one of the rigs and the corresponding lease to SFL Hercules (see below). 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 with a syndicate of banks, which was used in November 2013 to refinance the previous loan facility. At December 31, 2016 , the balance outstanding under the new facility was $248.4 million ( 2015 : $221.1 million ), and the available amount under the revolving part of the facility was $ nil ( 2015 : $50.0 million ). The Company guaranteed $75.0 million of this debt at December 31, 2016 ( 2015 : $80.0 million ). In addition, the Company has given the banks a first priority pledge over all shares of SFL Deepwater and assigned all claims under a secured loan made by the Company to SFL Deepwater in favour of the banks. This loan is secured by a second priority mortgage over the rig which has been assigned to the banks. 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 with a syndicate of banks to partly finance its acquisition of the rig from SFL Deepwater. The facility was drawn in June 2013, and at December 31, 2016 , the balance outstanding under this facility was $278.7 million ( 2015 : $256.3 million ). At December 31, 2016 , the available amount under the revolving part of the facility was $ nil ( 2015 : $50.0 million ). The Company guaranteed $75.0 million of this debt at December 31, 2016 ( 2015 : $80.0 million ). In addition, the Company has given the banks a first priority pledge over all shares of SFL Hercules and assigned all claims under a secured loan made by the Company to SFL Hercules in favour of the banks. This loan is secured by a second priority mortgage over the rig which has been assigned to the banks. 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 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 in 2013 from North Atlantic Drilling Ltd ("NADL"), a related party. SFL Linus holds a harsh environment jack-up drilling rig which was delivered from the ship yard in February 2014 and immediately 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 with a syndicate of banks to partly finance the acquisition of the rig. The facility was drawn in February 2014, and at December 31, 2016 , the balance outstanding under this facility was $356.3 million ( 2015 : $353.8 million ). At December 31, 2016 , the available amount under the revolving part of the facility was $ nil ( 2015 : $50.0 million ). The Company guaranteed $90.0 million of this debt at December 31, 2016 ( 2015 : $90.0 million ). In addition, the Company has given the banks a first priority pledge over all shares of SFL Linus and assigned all claims under a secured loan made by the Company to SFL Linus in favour of the banks. This loan is secured by a second priority mortgage over the rig which has been assigned to the banks. In February 2015, amendments were made to the lease, whereby Seadrill replaced NADL as lease guarantor. 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, the charter includes a fixed price put option at the expiry of the charter in 2029. 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. 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. 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 included 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". Bluelot and Corte Real were 100% owned subsidiaries of Ship Finance, each incorporated in 2010 for the purpose of leasing in a 13,800 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. The determination that Ship Finance was not the primary beneficiary of Bluelot and 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. 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, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 122,675 33,763 38,351 50,561 Non-current assets 1,094,442 335,229 326,562 432,651 Total assets 1,217,117 368,992 364,913 483,212 Current liabilities 107,026 25,512 29,280 52,234 Non-current liabilities (1) 1,109,961 343,426 335,603 430,932 Total liabilities 1,216,987 368,938 364,883 483,166 Total shareholders' equity (2) 130 54 30 46 As of December 31, 2015 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 120,251 33,735 38,936 47,580 Non-current assets 1,212,302 366,893 362,419 482,990 Total assets 1,332,553 400,628 401,355 530,570 Current liabilities 128,455 25,221 28,624 74,610 Non-current liabilities (1) 1,119,483 335,881 354,025 429,577 Total liabilities 1,247,938 361,102 382,649 504,187 Total shareholders' equity (2) 84,615 39,526 18,706 26,383 (1) SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2016 , include $119.2 million ( 2015 : $137.4 million ), $85.9 million ( 2015 : $125.3 million ) and $125.0 million ( 2015 : $125.0 million ) due to Ship Finance, respectively (see Note 23: Related party transactions). In addition, SFL Linus current liabilities at December 31, 2016 , include a further $0.7 million ( 2015 : $23.2 million ) due to Ship Finance (see Note 23: Related party transactions). (2) In the year ended December 31, 2016, SFL Deepwater, SFL Hercules and SFL Linus paid dividends of $46.3 million (2015: $ nil ; 2014: $ nil ), $25.1 million (2015: $ nil ; 2014: $ nil ) and $42.1 million (2015: $ nil ; 2014: $ nil ), respectively. Summarized statement of operations information of the Company's wholly-owned equity method investees is shown below. Year ended December 31, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 80,269 22,088 23,292 34,889 — — — Net operating revenues 80,269 22,088 23,292 34,889 — — — Net income (3) 27,765 6,778 6,424 14,563 — — — Year ended December 31, 2015 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 82,731 22,424 23,315 36,992 — — — Net operating revenues 82,725 22,422 23,313 36,990 — — — Net income (3) 31,001 7,561 7,306 16,134 — — — Year ended December 31, 2014 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 108,632 24,917 24,565 33,236 22,251 1,171 2,492 Net operating revenues 105,567 24,905 24,544 33,221 22,234 232 431 Net income (3) 33,497 8,023 7,755 12,413 4,643 232 431 (3) The net income of the above associated companies in the year ended December 31, 2016 , includes interest payable to Ship Finance amounting to $6.5 million ( 2015 : $6.5 million ; 2014 : $6.5 million ), $6.5 million ( 2015 : $6.5 million ; 2014 : $6.5 million ), $5.6 million ( 2015 : $5.6 million ; 2014 : $4.9 million ) and $ nil ( 2015 : $ nil ; 2014 : $6.5 million ), respectively (see Note 23: Related party transactions). SFL Deepwater, 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, 2016 , Ship Finance and Seadrill were in compliance with all of the covenants under these long-term debt facilities. With Seadrill’s potential comprehensive restructuring, there is a risk that the Company, and Seadrill, may not be in compliance with the applicable loan covenants in the future and we would not be able to make further borrowings under such facilities. A chapter 11 filing by Seadrill or the Seadrill Charterers could trigger an event of default under such facilities. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES (in thousands of $) 2016 2015 Vessel operating expenses 4,022 3,676 Administrative expenses 1,414 1,206 Interest expense 8,364 7,764 13,800 12,646 |
OTHER CURRENT LIABILITIES OTHER
OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES (in thousands of $) 2016 2015 Deferred and prepaid charter revenue 4,326 5,549 Obligations under capital leases - current portion 3,649 — Employee taxes 151 152 Other items 756 11,336 8,882 17,037 Other items at December 31, 2015 , include $10.9 million installments payable on newbuildings (2016: $ nil ). |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT (in thousands of $) 2016 2015 Long-term debt: 3.75% senior unsecured convertible bonds due 2016 — 117,500 Norwegian kroner 600 million senior unsecured floating rate bonds due 2017 65,445 63,681 3.25% senior unsecured convertible bonds due 2018 184,202 350,000 Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 87,801 85,434 5.75% senior unsecured convertible bonds due 2021 225,000 — U.S. dollar denominated floating rate debt due through 2023 1,017,558 1,049,861 Total debt principal 1,580,006 1,666,476 Less : unamortized debt issuance costs (27,132 ) (32,271 ) Less : current portion of long-term debt (174,900 ) (208,031 ) 1,377,974 1,426,174 The outstanding debt as of December 31, 2016 , is repayable as follows: (in thousands of $) Year ending December 31, 2017 174,900 2018 324,847 2019 264,481 2020 172,060 2021 457,412 Thereafter 186,306 Total debt principal 1,580,006 The weighted average interest rate for floating rate debt denominated in U.S. dollars and Norwegian kroner ("NOK") as at December 31, 2016 , was 4.20% per annum ( 2015 : 4.22% ). These rates take into consideration the effect of related interest rate swaps. At December 31, 2016 , the three month US Dollar London Interbank Offered Rate ("LIBOR") was 0.998% ( 2015 : 0.613% ) and the three month Norwegian Interbank Offered Rate ("NIBOR") was 1.17% ( 2015 : 1.13% ). 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 was fixed at 3.75% per annum and was payable in cash semi-annually in arrears. The bonds were 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 premium of approximately 35% to the share price at the time. Subsequently, dividend distributions reduced the conversion price to $16.61 at December 31, 2015. The Company had the right to call the bonds after March 3, 2014 , if the value of the shares underlying each bond exceeded, for a specified period of time, 130% of the principal amount of the bond. In December 2015, the Company purchased bonds with principal amounts totaling $7.5 million and the net amount outstanding at December 31, 2015 , was $117.5 million . In February 2016, the amount outstanding was fully redeemed in cash without any conversion into shares having taken place. NOK 600 million senior unsecured bonds due 2017 On October 19, 2012 , the Company issued a senior unsecured bond loan totaling NOK 600 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. Since their issue, at December 31, 2016 , the Company has purchased bonds with principal amounts totaling NOK 43.0 million (2015: NOK 43.0 million ), of which NOK 8.0 million (2015: NOK 8.0 million ) were subsequently re-sold. The Company holds bonds purchased as treasury bonds. The net amount outstanding at December 31, 2016 , was NOK 565 million , equivalent to $65.4 million ( 2015 : NOK 565 million , equivalent to $63.7 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 premium of approximately 33% to the share price at the time. Since then, dividend distributions have reduced the conversion price to $14.3886 per share. In October 2016, the Company purchased and canceled bonds with principal amounts totaling $165.8 million ( 2015 : $ nil ) and the net amount outstanding at December 31, 2016 , was $184.2 million ( 2015 : $350.0 million ). A loss of $8.8 million was recorded on the purchase and cancellation (2015: $ nil ; 2014: $ nil ). 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 in 2013 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 $3.4 million in the year ended December 31, 2016 ( 2015 : $4.1 million ). As a result of the purchase and cancellation of bonds with principal amounts totaling $165.8 million ( 2015 : $ nil ), a total of $8.5 million (2015: $ nil ) was allocated as the reacquisition of the equity component. NOK 900 million senior unsecured bonds due 2019 On March 19, 2014 , the Company issued a senior unsecured bond loan totaling NOK 900 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, at December 31, 2016 , the Company has purchased bonds with principal amounts totaling NOK 142.0 million (2015: NOK 142.0 million ), which are being held as treasury bonds. The net amount outstanding at December 31, 2016 , was NOK 758.0 million , equivalent to $87.8 million ( 2015 : NOK 758.0 million , equivalent to $85.4 million ). 5.75% senior unsecured convertible bonds due 2021 On October 5, 2016 , the Company issued a senior unsecured convertible bond loan totaling $225.0 million . Interest on the bonds is fixed at 5.75% per annum and is payable in cash quarterly in arrears on January 15, April 15, July 15 and October 15. The bonds are convertible into Ship Finance International Limited common shares and mature on October 15, 2021 . The initial conversion rate at the time of issuance was 56.2596 common shares per $1,000 bond, equivalent to a conversion price of approximately $17.7747 per share. The conversion rate will be adjusted for dividends in excess of $0.225 per common share per quarter. Since the issuance, dividend distributions have increased the conversion rate to 58.0285 , equivalent to a conversion price of approximately $17.2329 per share. In conjunction with the bond issue, the Company loaned up to 8,000,000 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 initially borrowed from Hemen Holding Ltd., the largest shareholder of the Company, for a one-time loan fee of $120,000 . In November 2016, the Company issued 8,000,000 new shares, to replace the shares borrowed from Hemen Holding Ltd. and received $80,000 from Hemen Holding Ltd. 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 $4.6 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 $0.2 million in the year ended December 31, 2016 ( 2015 : $ nil ). $49 million secured term loan and revolving credit facility In March 2008, two wholly-owned subsidiaries of the Company entered into a $49.0 million secured term loan and revolving credit facility with a bank. The proceeds of the facility were used to partly fund the acquisition of two newbuilding chemical tankers, which also serve as security for this facility. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of ten years. At December 31, 2016 , the amount available under the revolving part of the facility was $20.0 million (2015: $12.0 million ). The net amount outstanding at December 31, 2016 , was $ nil ( 2015 : $8.0 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, 2016 , was $23.4 million ( 2015 : $26.3 million ). $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, bearing interest at LIBOR plus a margin and with a term of approximately five years. The facility is secured against a Suezmax tanker. In March 2015, the terms of the loan were amended and restated, and the facility now matures in March 2020. The net amount outstanding at December 31, 2016 , was $23.4 million ( 2015 : $26.3 million ). $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 dry bulk carriers. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of eight years. The net amount outstanding at December 31, 2016 , was $30.2 million ( 2015 : $34.1 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, which was fully prepaid and canceled in July 2016, bore interest at LIBOR plus a margin and had a term of seven years. The net amount outstanding at December 31, 2016 , was $ nil ( 2015 : $22.5 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 Supramax dry bulk carriers. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of approximately eight years. The net amount outstanding at December 31, 2016 , was $44.9 million ( 2015 : $50.8 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 dry bulk 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, 2016 , was $110.1 million ( 2015 : $122.2 million ). $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, 2016 was $35.5 million ( 2015 : $39.9 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. The facility bears interest at LIBOR plus a margin and has a term of five years. At December 31, 2016 , the available amount under the revolving part of the facility was $9.0 million (2015: $9.0 million ). The net amount outstanding at December 31, 2016 , was $36.0 million ( 2015 : $36.0 million ). $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, secured against six offshore support vessels. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2016 , was $54.7 million ( 2015 : $ 87.8 million ). One of the vessels was sold in February 2016 and the facility now relates to the remaining five vessels. $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. The facility bears interest at LIBOR plus a margin and has a term of five years. The net amount outstanding at December 31, 2016 , was $20.0 million ( 2015 : $20.0 million ). $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, secured against two 8,700 TEU container vessels, which were delivered in 2014. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of seven years. The net amount outstanding at December 31, 2016 , was $109.4 million ( 2015 : $117.9 million ). $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, secured against two 8,700 TEU container vessels, which were delivered in 2015. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of seven years. The net amount outstanding at December 31, 2016 was $112.6 million (2015: $121.1 million ). $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 dry bulk carriers. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of approximately eight years. The net amount outstanding at December 31, 2016 , was $31.5 million ( 2015 : $34.0 million ). $250 million secured revolving credit facility In June 2015, 17 wholly-owned subsidiaries of the Company entered into a $250.0 million secured revolving credit facility with a syndicate of banks, secured against 17 tankers chartered to Frontline Shipping. Four of the tankers were sold and delivered to their new owners prior to December 31, 2016 , and the facility was secured against the remaining 13 tankers at December 31, 2016 . The facility bears interest at LIBOR plus a margin and has a term of three years. At December 31, 2016 , the available amount under the facility was $175.6 million (2015: $154.6 million ). The net amount outstanding at December 31, 2016 , was $40.0 million ( 2015 : $73.5 million ). $166 million secured term loan facility In July 2015, eight wholly-owned subsidiaries of the Company entered into a $166.4 million secured term loan facility with a syndicate of banks, secured against eight Capesize dry bulk carriers acquired in 2015. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of seven years. The net amount outstanding at December 31, 2016 was $145.6 million ( 2015 : $159.5 million ). $210 million secured term loan facility In November 2015, three wholly-owned subsidiaries of the Company entered into a $210.0 million secured term loan facility with a syndicate of banks, to partly fund the acquisition of three newbuilding container vessels, against which the facility is secured. One of the vessels was delivered in 2015, and the remaining two vessels were delivered in 2016. The Company has provided a limited corporate guarantee for this facility, which bears interest at LIBOR plus a margin and has a term of five years from the delivery of each vessel. At December 31, 2016 , the net amount outstanding was $200.2 million ( 2015 : $70.0 million ). The aggregate book value of assets pledged as security against borrowings at December 31, 2016 , was $2,009 million ( 2015 : $2,087 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, 2016 , the Company is in compliance with all of the covenants under its long-term debt facilities. The $101.4 million secured term loan facility entered into in August 2014 contains certain financial covenants on Deep Sea. As at December 31, 2016 , Deep Sea was in compliance with all covenants under the loan agreement. |
OTHER LONG TERM LIABILITIES
OTHER LONG TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG TERM LIABILITIES | OTHER LONG-TERM LIABILITIES (in thousands of $) 2016 2015 Unamortized sellers' credit 6,124 11,960 Obligations under capital leases - long-term portion 118,754 — Other items 4 3 124,882 11,963 The Company acquired six offshore support vessels from Deep Sea, which were originally chartered back to subsidiaries of 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. In 2013, the charters for five of the vessels were transferred from subsidiaries of Deep Sea to a subsidiary of Deep Sea Supply BTG AS, and the seller's credits for these five vessels were also transferred to the new counterparty. In September 2016, Deep Sea fully acquired Deep Sea Supply BTG AS and the company was renamed Deep Sea Supply AS. The other vessel, for which the charter was not transferred in 2013, was sold in February 2016. In October 2015, the Company entered into agreements to charter in two newbuilding container vessels on a bareboat basis, each for a period of 15 years from delivery by the shipyard, and to charter out each vessel for the same 15 -year period on a bareboat basis to MSC, an unrelated party. The first of these vessels, the MSC Anna , was delivered in December 2016 and this vessel is accounted for as a direct financing lease asset. The Company's future minimum lease obligations under this non-cancellable lease are as follows: (in thousands of $) 2017 12,527 2018 12,527 2019 12,527 2020 12,561 2021 12,527 Thereafter 151,993 Total lease obligations 214,662 Less: imputed interest payable (92,259 ) Present value of obligations under capital lease 122,403 Less: current portion (3,649 ) Obligations under capital lease - long-term portion 118,754 |
SHARE CAPITAL, ADDITIONAL PAID-
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 150,000,000 common shares of $0.01 par value each (2015: 125,000,000 common shares of $1.00 par value each) 1,500 125,000 Issued and fully paid share capital is as follows: (in thousands of $, except share data) 2016 2015 101,504,575 common shares of $0.01 par value each (2015: 93,468,000 common shares of $1.00 par value each) 1,015 93,468 The Company's common shares are listed on the New York Stock Exchange. 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: Share option plan). In the year ended December 31, 2016 , the Company issued a total of 36,575 new shares of $1.00 each following the exercise by two officers and three employees of options granted in 2011 ( 2015 : 64,000 new shares issued to satisfy options exercised by two officers and three employees). The weighted average exercise price of the options was $12.11 per share ( 2015 : $10.55 per share), resulting in a premium on issue of $0.2 million ( 2015 : $0.6 million ). A reorganization of share capital was approved at the Annual General Meeting of the Company held in September 2016, in accordance with the Bermuda Companies Act. Following the reorganization, the Company's authorized share capital was adjusted to 150,000,000 shares of par value $0.01 each, prior to which it had been 125,000,000 shares of par value $1.00 each. As there were 93,504,575 shares issued and fully paid at the time of the reorganization, to reflect the decrease in the par value of each share from $1.00 to $0.01 , $92.6 million was transferred from share capital to contributed surplus. The shares of par value $0.01 each rank pari passu in all respects with each other. In November 2016, in relation with the Company's issue of senior unsecured convertible bonds totaling $225 million (see below), the Company issued 8,000,000 new shares of par value $0.01 each. The shares were issued at par value and have been loaned to an affiliate of one of the underwriters of the bond issue, in order to assist investors in the bonds to hedge their position. 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 premium of approximately 33% to the share price at the time. Since then, dividend distributions have reduced the conversion price to $14.3886 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). In October 2016, the Company purchased and canceled bonds with principal amounts totaling $165.8 million . The equity component of these extinguished bonds was valued at $8.5 million and this amount has been deducted from "Additional paid-in capital". In October 2016, the Company issued a senior unsecured convertible bond totaling $225 million . The bonds are convertible into common shares and mature on October 15, 2021. The initial conversion rate at the time of issuance was 56.2596 common shares per $1,000 bond, equivalent to a conversion price of approximately $17.7747 per share to the share price at the time. Since then, dividend distributions have increased the conversion rate to 58.0285 , equivalent to a conversion price of approximately $17.2329 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 $4.6 million and recorded as "Additional paid-in capital" (see Note 19: Long-term Debt). The Company 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 was recorded as a deferred deemed equity contribution, which was presented as a reduction in net investment in direct financing leases in the balance sheet. This accounting treatment arose from the related party nature of both the initial transfer of the vessels and the subsequent leases. The deferred deemed equity contributions were amortized to contributed surplus over the life of the lease arrangements, as lease payments were applied to the principal balance of the lease receivable. In the six months ended June 30, 2015, the Company credited contributed surplus with $2.0 million of such deemed equity contributions (year ended December 31, 2015 : $2.0 million ). On June 5, 2015, the charter agreements with Frontline were amended with effect from July 1, 2015 (see Note 23: Related party transactions), following which the remaining unamortized deferred deemed equity contributions were incorporated into the lease schedules and no further amounts have been credited to contributed surplus in respect of deferred deemed equity contributions. |
SHARE OPTION PLAN
SHARE OPTION PLAN | 12 Months Ended |
Dec. 31, 2016 | |
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 2026. 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 2016 , 2015 and 2014 : 2016 2015 2014 Options Weighted average exercise price $ Options Weighted average exercise price $ Options Weighted average exercise price $ Options outstanding at beginning of year 125,000 12.56 189,000 13.17 423,000 9.99 Granted 279,000 14.38 — — — — Exercised (125,000 ) 12.11 (64,000 ) 10.55 (224,000 ) 5.41 Forfeited — — — — (10,000 ) 5.56 Options outstanding at end of year 279,000 13.03 125,000 12.56 189,000 13.17 Exercisable at end of year — — 125,000 12.56 189,000 13.17 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. The weighted average assumptions used to calculate the fair values of the new options granted in 2016 were a) risk free interest rate of 1.08% , b) expected share price volatility of 31.3% , c) expected dividend yield of 0% and d) expected life of options 3.5 years . No new options were granted in 2015 and 2014 , and all options outstanding at December 31, 2015, were exercised in 2016. The weighted average fair value of options granted in 2016 is $3.06 per share as at grant-date ( 2015 : $ nil ; 2014 : $ nil ). The total intrinsic value of options exercised in 2016 was $0.3 million on the day of exercise ( 2015 : $0.3 million ; 2014 : $2.9 million ). There are no options fully vested but not exercised at December 31, 2016 . As of December 31, 2016 , the unrecognized compensation costs relating to non-vested options granted under the Option Scheme was $0.5 million ( 2015 : $ nil ) and their intrinsic value amounted to $0.5 million .This cost will be recognized over the remaining vesting periods, which average 2.2 years . During the year ended December 31, 2016 , the Company recognized an expense of $0.4 million in compensation cost relating to the stock options ( 2015 : $ nil ; 2014 : $ nil ). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
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, or had, a significant direct or indirect interest: – Frontline (1) – Frontline 2012 (1) – Frontline Shipping and Frontline Shipping II (collectively the Frontline Charterers) – Seadrill – NADL – Golden Ocean (2) – United Freight Carriers ("UFC" - which is a joint venture approximately 50% owned by Golden Ocean) – Deep Sea – Golar Management UK Limited ("Golar") (3) – Seatankers Management Co. Ltd. ("Seatankers") – Arcadia Petroleum Limited ("Arcadia") – NorAm Drilling Company AS ("NorAm Drilling" - formerly Global Rig Company ASA) (1) On November 30, 2015, Frontline and Frontline 2012 merged, leaving Frontline as the surviving legal entity and Frontline 2012 becoming a wholly-owned subsidiary of Frontline. (2) In March 2015, Golden Ocean Group Limited merged with Knightsbridge Tankers Limited, leaving Knightsbridge Tankers Limited as the surviving legal entity and changing its name to Golden Ocean Group Limited. (3) 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: Investments in direct financing leases): (in thousands of $) 2016 2015 Amounts due from: Frontline Charterers 11,906 18,052 Frontline Ltd 3,008 2,816 UFC — 1,639 Deep Sea 1,945 — SFL Linus 660 23,152 Total amount due from related parties 17,519 45,659 Loans to related parties - associated companies, long-term SFL Deepwater 119,167 137,437 SFL Hercules 85,920 125,275 SFL Linus 125,000 125,000 Total loans to related parties - associated companies, long-term 330,087 387,712 Loans to related parties - others, long-term Deep Sea 9,268 — Total loans to related parties - others, long-term 9,268 — Amounts due to: Frontline Charterers 229 229 Frontline Management 493 143 Seatankers 79 — Other related parties 49 44 Total amount due to related parties 850 416 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, 2016. As described below in "Related party loans", at December 31, 2016 and 2015 , the long-term loans from Ship Finance to SFL Deepwater, SFL Hercules, and SFL Linus are presented net of amounts due to them by Ship Finance on their respective current accounts. Related party leasing and service contracts As at December 31, 2016 , 12 of the Company's vessels leased to Frontline Shipping ( December 31, 2015 : 14 ) and one of its offshore support vessels leased to a subsidiary of Deep Sea ( December 31, 2015 : two ), are recorded as direct financing leases. In addition, at December 31, 2016 , four offshore support vessels were leased to a subsidiary of Deep Sea and eight dry bulk carriers were leased to a subsidiary of Golden Ocean under operating leases. Also at December 31, 2016 , one vessel leased to Frontline Shipping is recorded as a held for sale asset. At December 31, 2016 , the combined balance of net investments in direct financing leases with Frontline Shipping and Deep Sea was $411.1 million ( 2015 : $511.4 million ) of which $28.9 million ( 2015 : $37.1 million ) represents short-term maturities. At December 31, 2016 , the net book value of assets leased under operating leases to Deep Sea and Golden Ocean was $328.6 million ( 2015 : $499.6 million ). At December 31, 2016 , the carrying value of the held for sale asset leased to Frontline Shipping was $24.1 million (2015: $ nil ). In November 2016, the Company agreed to sell the VLCC Front Century to an unrelated party, and agreement was made with Frontline Shipping for the early termination of the charter upon delivery to the new owner, which occurred in March 2017 (see Note 27: Subsequent Events). During the year ended December 31, 2016 , the Company also earned income from another offshore support vessel leased to a subsidiary of Deep Sea, which was sold in February 2016, and from six dry bulk carriers leased to UFC on short-term charters, which all ended during the year. A summary of leasing revenues earned from the Frontline Charterers, Deep Sea, Golden Ocean and UFC is as follows: (in millions of $) 2016 2015 2014 Operating lease income 65.3 42.9 26.4 Direct financing lease interest income 22.9 34.2 45.4 Finance lease service revenue 44.5 46.5 46.5 Direct financing lease repayments 30.3 35.9 43.1 Profit sharing revenues 51.5 59.6 33.8 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. 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 were to 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. During 2012, 2013 and 2014, 11 of the vessels were sold. On June 5, 2015, further amendments were made to the charter agreements relating to the remaining 17 vessels. The amendments, which are effective from July 1, 2015, and do not affect the duration of the leases, include reductions in the daily time-charter rates to $20,000 per day for VLCCs and $15,000 per day for Suezmax tankers. As consideration for the agreed amendments, the Company received 55 million ordinary shares in Frontline, the fair value of which amounted to $150.2 million , and also an increase in the profit sharing percentage (see below). The charters for three of the vessels were transferred from Frontline Shipping II to Frontline Shipping, which is now the charter counterparty for all of the vessels. As part of the amended agreement, Frontline was released from its guarantee obligations under the charters, and in exchange a cash reserve of $2 million per vessel has been built up in Frontline Shipping as security for its obligations under the charters. The Company's holding of Frontline ordinary shares represented approximately 27.73% of the issued share capital of Frontline at the time of receipt in June 2015. On November 30, 2015, Frontline merged with Frontline 2012 and increased its issued share capital, reducing the Company's holding to approximately 7.03% . Accordingly, from June 5, 2015, to November 30, 2015, the Company's shareholding was accounted for as an investment in associated companies (see Note 16: Investment in associated companies). Since December 1, 2015, the Company's holding of Frontline shares has been held under available-for-sale securities (see Note 11: Available-for-sale securities). In February 2016, Frontline enacted a 1-for-5 reverse stock split of its ordinary shares, and the Company's holding in Frontline now consists of 11 million ordinary shares. In the year ended December 31, 2016 , the Company received dividend income totaling $11.6 million on these shares. As disclosed in Note 16: Investment in Associated Companies, the dividend received from Frontline in December 2015 was recorded against the carrying value of this investment. 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 represented a non-refundable advance relating to the new 25% profit sharing agreement. The Company earned and recognized profit sharing revenue under the 25% arrangement in the year ended December 31, 2016 , of $ nil ( 2015 : $ nil ; 2014 : $ nil ). The amendments to the charter agreements effective from July 1, 2015, increased the profit sharing percentage from 25% to 50% for earnings above the new reduced time-charter rates, calculated and payable on a quarterly basis. The Company earned and recognized profit sharing revenue under the 50% arrangement of $50.9 million in the year ended December 31, 2016 ( 2015 : $37.3 million ; 2014 : $ nil ). The amendments to the charter agreements effective from January 1, 2012, additionally provided that for the four year period of the temporary reduction in charter rates, Frontline Shipping and Frontline Shipping II would 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. This arrangement was discontinued from July 1, 2015, when the amendments agreed in June 2015 became effective. In the year ended December 31, 2016 , the Company earned and recognized $ nil revenue under this arrangement ( 2015 : $19.9 million ; 2014 : $32.7 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 early termination of the lease. In July 2016, the VLCC Front Vanguard on charter to Frontline Shipping was sold and its lease canceled, with an agreed termination fee of $0.3 million received. In September 2015, October 2015 and December 2015, the Suezmax tankers Front Glory , Front Splendour and Mindanao on charter to Frontline Shipping were sold and their leases canceled, with agreed termination fees payable of $2.2 million , $1.3 million and $3.3 million , respectively. In November 2014, three VLCCs, namely Front Comanche , Front Commerce and Front Opalia , on charter to the Frontline Charterers were sold and their leases canceled, 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 amortizing loan notes from Frontline 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% was 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. In December 2015, Frontline redeemed in full the loan notes received by the Company on the sale of the above three VLCCs in November 2014 and on the sale of two other VLCCs in 2013. The aggregate amount received on redemption was $113.2 million (2016: $ nil ; 2014 : $ nil ), including accrued interest of $0.5 million (2016: $ nil ; 2014: $ nil ). At the time of the redemption, the loan notes had a carrying value of $83.8 million , resulting in a gain of $28.9 million on disposal. In February 2016, the offshore support vessel Sea Bear on charter to a subsidiary of Deep Sea was sold and its lease canceled. An agreed termination fee was received in the form of loan notes from Deep Sea, receivable over the approximately six remaining years of the canceled lease. The initial face value of the notes received, on which interest at 7.25% is receivable, was $14.6 million and their initial fair value of $11.6 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. In the year ended December 31, 2016 , the Company had five other offshore support vessels on long-term bareboat charters to a subsidiary of Deep Sea. In July 2016, the Company agreed to amend the terms of the charters, which were scheduled to end between September 2019 and January 2020. Under the amended agreements, the charter rates have been temporarily reduced until May 2018, in exchange for extending the original charter periods by three years and introducing a 50% profit share on charter revenues earned by the vessels above the new base charter rates, calculated on a time-charter equivalent basis. In the year ended December 31, 2016 , the Company earned no income under this arrangement (2015: $ nil ; 2014: $ nil ). In the year ended December 31, 2016 , the Company had eight dry bulk carriers operating on time-charters to a subsidiary of Golden Ocean, which include profit sharing arrangements whereby the Company earns a 33% share of profits earned by the vessels above threshold levels. In the year ended December 31, 2016 , the Company earned no income under this arrangement ( 2015 : $ nil ; 2014 : $ nil ). Until their short-term charters ended on the relevant dates during the year, the Company had up to six dry bulk carriers operating on time-charters to UFC during 2016 , which included profit-sharing arrangements whereby the Company earned a 50% share of profits earned by the vessels above threshold levels. In the year ended December 31, 2016 , the Company earned and recognized $0.6 million under this arrangement ( 2015 : $2.5 million ; 2014 : $1.1 million ). As at December 31, 2016 , the Company was owed a total of $11.9 million ( 2015 : $18.1 million ) by Frontline Shipping in respect of leasing contracts and profit share. At December 31, 2016 , the Company was owed $3.0 million ( 2015 : $2.8 million ) by Frontline in respect of various short-term items, including items relating to the operation of vessels in the spot market. At December 31, 2016 , the Company was owed $ nil ( 2015 : $1.6 million ) by UFC in respect of leasing contracts and profit share. At December 31, 2016 , the Company was owed $1.9 million (2015: $ nil ) by Deep Sea and affiliates, including the $1.4 million carrying value of the short-term portion of the loan notes receivable from Deep Sea (2015: $ nil ). The $9.3 million carrying value of the long-term portion of the loan notes is reported under "Loans to related parties - others, long-term". At December 31, 2016 , the Company was owed $0.7 million by SFL Linus in addition to the loan due to the Company ( 2015 : $23.2 million ) - see below. The vessels leased to Frontline Shipping are on time charter terms and for each such vessel the Company pays a fixed management/operating fee of $9,000 per day to Frontline Management (Bermuda) Ltd. ("Frontline Management"), a wholly owned subsidiary of Frontline. This daily fee has been payable since July 1, 2015, when amendments to the charter agreements became effective, before which the fixed daily fee was $6,500 per day. An exception to this arrangement is for any vessel leased to Frontline Shipping 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 addition, during the year ended December 31, 2016 , the Company also had 9 container vessels, 14 dry bulk 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, 2016 , total management fees paid to Frontline Management amounted to $45.9 million ( 2015 : $48.0 million ; 2014 : $48.4 million ). The vessels leased to a subsidiary of Golden Ocean are on time charter terms and for each vessel the Company pays a fixed management/operating fee of $7,000 per day to Golden Ocean Group Management (Bermuda) Ltd. ("Golden Ocean Management"), a wholly-owned subsidiary of Golden Ocean. Additionally, in the year ended December 31, 2016 , the Company had 9 container vessels and 14 dry bulk carriers operating on time-charters, for which part of the operating management was sub-contracted to Golden Ocean Management. In the year ended December 31, 2016 , total management fees paid to Golden Ocean Management amounted to approximately $21.3 million ( 2015 : $9.0 million ; 2014 : $0.8 million ). Management fees are classified as vessel operating expenses in the consolidated statements of operations. The Company operates the Suezmax tankers Glorycrown and Everbright in the spot market (until the latter commenced a two year time charter in January 2016) and pays Frontline Management a management fee of 1.25% of chartering revenues. In 2016 , $0.4 million was paid to Frontline Management pursuant to this arrangement ( 2015 : $0.4 million ; 2014 : $0.3 million ). In 2016 , the Company also paid $0.6 million to Frontline Management ( 2015 : $0.5 million , 2014 : $0.5 million ) for administrative services, including corporate services, and $0.3 million to Seatankers ( 2015 : $ nil ; 2014 : $ nil ) for the provision of advisory and support services. The Company pays fees to Frontline Management for the management supervision of some of its newbuildings, which in 2016 amounted to $nil ( 2015 : $0.1 million ; 2014 : $2.9 million ). In the year ended December 31, 2016 , the Company paid $0.3 million to Seatankers Management Norway AS ( 2015 : $0.4 million to Frontline Management AS; 2014 : $0.4 million to Frontline Management AS) for the provision of office facilities in Oslo, and $0.2 million to Frontline Corporate Services Ltd ( 2015 : $0.1 million to Arcadia; 2014 : $0.1 million to Golar) for the provision of office facilities in London. Golar ceased to be a related party in September 2014. As at December 31, 2016 , the Company owes Frontline Management and Frontline Management AS a combined total of $0.5 million ( 2015 : $0.1 million ) for various items, including technical supervision fees and office costs. At December 31, 2016 , the Company also owes Seatankers $0.1 million ( 2015 : $nil ) for advisory and support services. On October 5, 2016, the Company issued a senior unsecured convertible bond loan totaling $225.0 million . In conjunction with the bond issue, the Company loaned up to 8,000,000 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 initially borrowed from Hemen Holding Ltd., the largest shareholder of the Company, for a one-time loan fee of $120,000 In November 2016, the Company issued 8,000,000 new shares, to replace the shares borrowed from Hemen Holding Ltd.and received $80,000 from Hemen Holding Ltd. Related party loans – associated companies Ship Finance has entered into agreements with SFL Deepwater, SFL Hercules and SFL Linus granting them loans of $145.0 million , $145.0 million and $125.0 million , respectively. The loans to 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 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, 2016 , the Company received interest income on these loans of $6.5 million from SFL Deepwater ( 2015 : $6.5 million ; 2014 : $6.5 million ), $6.5 million from SFL Hercules ( 2015 : $6.5 million ; 2014 : $6.5 million ) and $5.6 million from SFL Linus ( 2015 : $5.6 million , 2014 : $4.9 million ) totaling $18.7 million . Ship Finance also granted a $145.0 million fixed interest rate loan to SFL West Polaris, which was repaid when that company was sold on December 30, 2014. The terms of the loan were similar to those in the above continuing loans, and in the year ended December 31, 2016 , the Company received interest income on this loan of $nil ( 2015 : $nil ; 2014 : $6.5 million ). Related party purchases and sales of vessels – 2016 No vessels were acquired from or sold to related parties in the year ended December 31, 2016 . Related party purchases and sales of vessels – 2015 In the third quarter of 2015, the Company acquired eight Capesize dry bulk carriers from subsidiaries of Golden Ocean for a total acquisition cost of $272.0 million . The vessels were immediately chartered back to a subsidiary of Golden Ocean on ten year time charters, at rates of $17,600 per day for the first seven years and $14,900 per day thereafter. In addition, the Company will receive a 33% profit share of revenues above these rates. Golden Ocean was granted an option to purchase all eight of the vessels at the expiry of the charters. If the purchase option is not exercised, Ship Finance has the option to extend the charters for an additional three years at the rate of $14,900 per day per vessel. 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". Other related party investments In November 2016, the Company acquired approximately 12 million shares in NorAm Drilling for a consideration of approximately $0.7 million . This investment, on which no dividend was received in the year ended December 31, 2016 , is included in "Available-for-sale securities" (see Note 11). The Company also holds within "Available-for-sale securities" 5.7 million $1 senior secured corporate bonds in NorAm Drilling due 2019, on which interest amounting to $0.5 million was earned in the year ended December 31, 2016 ( 2015 : $0.6 million ; 2014 : $0.7 million ). |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
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., NIBC Bank N.V., Skandinaviska Enskilda Banken AB (publ), ING Bank N.V., Danske Bank A/S, Swedbank AB (publ), Credit Agricole Corporate & Investment Bank and Commonwealth Bank of Australia. Credit risk exists to the extent that the counterparties are unable to perform under the contracts, but this risk is considered not to be substantial 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 $) 2016 2015 Designated derivative instruments -short-term liabilities: Interest rate swaps — — Cross currency interest rate swaps 37,101 — Non-designated derivative instruments -short-term liabilities: Interest rate swaps — — Cross currency interest rate swaps 2,208 — Total derivative instruments - short-term liabilities 39,309 — Designated derivative instruments -long-term liabilities: Interest rate swaps 10,134 11,458 Cross currency interest rate swaps 41,716 87,642 Non-designated derivative instruments -long-term liabilities: Interest rate swaps 1,388 2,897 Cross currency interest rate swaps 8,218 11,645 Total derivative instruments - long-term liabilities 61,456 113,642 (in thousands of $) 2016 2015 Designated derivative instruments -short-term assets: Interest rate swaps 110 — Total derivative instruments - short-term assets 110 — Designated derivative instruments -long-term assets: Interest rate swaps 4,540 487 Non-designated derivative instruments -long-term assets: Interest rate swaps 1,502 313 Total derivative instruments - long-term assets 6,042 800 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, 2016 , 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 $28,680 (reducing to $24,794) March 2008 August 2018 4.05% - 4.15% $30,233 (reducing to $23,394) April 2011 December 2018 2.13% - 2.80% $44,873 (reducing to $34,044) May 2011 January 2019 0.80% - 2.58% $100,000 (remaining at $100,000) August 2011 August 2021 2.50% - 2.93% $145,667 (terminating at $79,733) May 2012 August 2022 1.76% - 1.85% $105,436 (equivalent to NOK600 million) October 2012 October 2017 5.92% - 6.23% * $35,467 (reducing to $32,142) February 2013 December 2017 0.81% - 0.82% $100,000 (remaining at $100,000) March 2013 April 2023 1.85% - 1.97% $151,008 (equivalent to NOK900 million) March 2014 March 2019 6.03 % * $108,375 (reducing to $70,125) December 2016 December 2021 1.86% - 3.33% $110,500 (reducing to $70,125) January 2017 January 2022 1.56% - 3.09% $31,547 (reducing to $19,413) September 2015 March 2022 1.67 % $200,156 (reducing to $149,844) February 2016 February 2021 1.07% - 1.26% * These swaps relate to the NOK 600 million and the NOK 900 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. Two interest rate swap agreements with a combined notional principal of $110.5 million have an inception date of January, 2017 , and an interest rate swap agreement with a notional principal of $54.2 million has an inception date of March 2017. The total notional principal amount subject to swap agreements as at December 31, 2016 , excluding those with inception dates in the future, was $1,027.3 million ( 2015 : $804.8 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 NOK 600 million senior unsecured bonds due 2017 and the NOK 900 million senior unsecured bonds due 2019. Principal Receivable Principal Payable Inception date Maturity date NOK600 million US$105.4 million October 2012 October 2017 NOK900 million US$151.0 million March 2014 March 2019 Apart from the NOK 600 million and NOK 900 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, 2016 , and 2015 , are as follows: 2016 2016 2015 2015 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale securities 118,489 118,489 199,594 199,594 Floating rate NOK bonds due 2017 65,445 65,955 63,681 63,719 Floating rate NOK bonds due 2019 87,801 86,026 85,434 79,549 3.75% unsecured convertible bonds due 2016 — — 117,500 118,021 3.25% unsecured convertible bonds due 2018 184,202 201,206 350,000 378,315 5.75% unsecured convertible bonds due 2021 225,000 224,366 — — Derivatives: Interest rate/ currency swap contracts – short-term receivables 110 110 — — Interest rate/ currency swap contracts – long-term receivables 6,042 6,042 800 800 Interest rate/ currency swap contracts – short-term payables 39,309 39,309 — — Interest rate/ currency swap contracts – long-term payables 61,456 61,456 113,642 113,642 The above short-term receivables relating to interest rate/ currency swap contracts at December 31, 2016 , all relate to designated hedges. The above long-term receivables relating to interest rate/ currency swap contracts at December 31, 2016 , include $1.5 million which relates to non-designated swap contracts ( 2015 : $0.3 million ), with the balance relating to designated hedges. The above short-term payables relating to interest rate/ currency swap contracts at December 31, 2016 , include $2.2 million which relates to non-designated swap contracts ( 2015 : $ nil ), with the balance relating to designated hedges. The above long-term payables relating to interest rate/ currency swap contracts at December 31, 2016 , include $9.6 million which relates to non-designated swap contracts ( 2015 : $14.5 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, 2016 , are measured as follows: Fair value measurements using Total fair value as at December 31, 2016 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 118,489 118,489 Interest rate/ currency swap contracts – short-term receivables 110 110 Interest rate/ currency swap contracts - long-term receivables 6,042 6,042 Total assets 124,641 118,489 6,152 — Liabilities: Floating rate NOK bonds due 2017 65,955 65,955 Floating rate NOK bonds due 2019 86,026 86,026 3.25% unsecured convertible bonds due 2018 201,206 201,206 5.75% unsecured convertible bonds due 2021 224,366 224,366 Interest rate/ currency swap contracts – short-term payables 39,309 39,309 Interest rate/ currency swap contracts – long-term payables 61,456 61,456 Total liabilities 678,318 577,553 100,765 — The above fair values of financial assets and liabilities as at December 31, 2015 , were measured as follows: Fair value measurements using Total fair value as at December 31, 2015 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 199,594 199,594 — Interest rate/ currency swap contracts – long-term receivables 800 800 Total assets 200,394 199,594 800 — Liabilities: Floating rate NOK bonds due 2017 63,719 63,719 Floating rate NOK bonds due 2019 79,549 79,549 3.75% unsecured convertible bonds due 2016 118,021 118,021 3.25% unsecured convertible bonds due 2018 378,315 378,315 Interest rate/ currency swap contracts – long-term payables 113,642 113,642 Total liabilities 753,246 639,604 113,642 — 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 Frontline shares (ii) NorAm shares traded on the Norwegian OTC and (iii) secured listed and unlisted corporate bonds. The fair value of the Frontline and NorAm shares and the listed and unlisted corporate bonds consists of their aggregate market value as at the balance sheet date. The estimated fair values for the floating rate NOK bonds due 2017 and 2019, and the 3.75% , 3.25% and 5.75% 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, Bank of Valletta 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, 2016 , Frontline accounted for 28% of our operating revenues ( 2015 : 33% , 2014 : 37% ). There is thus a concentration of revenue risk with Frontline. In addition, a significant portion of our net income is generated from our associated companies that lease rigs to subsidiaries of Seadrill including NADL, which is fully guaranteed by Seadrill. In the year ended December 31, 2016 , income from our associated companies accounted for 31.7% of our net income ( 2015 : 24.7% , 2014 : 46.7% ). There is thus a concentration of risk with Seadrill. Seadrill continues to be engaged in ongoing negotiations with its banks, potential new money investors and advisers to an ad hoc committee of bondholders regarding the terms of a comprehensive restructuring, which may include the infusion of new capital. Seadrill has also indicated that it expects the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 bankruptcy proceedings. If a comprehensive restructuring agreement is not reached, the Company's income generated from associated companies could be reduced or eliminated and could also result in a default under the respective loan facilities provided by the banks in these associated companies resulting in them calling on guarantees made by the Company. As discussed in Note 25, the Company, at December 31, 2016, guaranteed a total of $240.0 million of the bank debt in these companies and had loans granted by the Company to these associated companies totalling $330.7 million . The loans granted by the Company are considered not impaired at December 31, 2016, due to the fair value of ultra deepwater drilling rigs owned by SFL Deepwater and SFL Hercules exceeding the book values at December 31, 2016 and due to current employment under a sub-charter and generally high utilization rates for the type of harsh environment jack-up rig in SFL Linus. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Assets Pledged 2016 Book value of consolidated assets pledged under ship mortgages (see Note 19) $2,009 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, 2016 , their combined bank borrowings amounted to $883.4 million and the Company guaranteed $240.0 million of this debt which is secured by first priority mortgages over the relevant rigs. In addition, the Company has assigned all claims it may have under secured loans granted by the Company to SFL Deepwater, SFL Hercules and SFL Linus, in favor of the lenders under the respective credit facilities (2016: $330.7 million ). These loans are secured by second priority mortgages over each of the rigs, which have been assigned to the lenders under the respective credit facilities. The lenders under the respective credit facilities have also been granted a first priority pledge over all shares of the relevant asset owning subsidiaries. At December 31, 2016 , the Company had commitments under contracts to acquire newbuilding vessels totaling $76.1 million ( 2015 : $261.9 million ). In addition, one subsidiary had contractual commitments relating to the chartering-in of one 19,200 TEU container vessel on a 15 year bareboat charter amounting to $203.0 million at December 31, 2016 (2015: commitments of $406.1 million relating to two chartered-in 19,200 TEU container vessels), of which $15.0 million represents the remaining balance from the initial payment, due on delivery of the vessel (2015: $30.0 million ). There are no other contractual commitments at December 31, 2016 . 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, 2016 | |
CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | CONSOLIDATED VARIABLE INTEREST ENTITIES The Company's consolidated financial statements include 25 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 April 2018 to July 2025. 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, 2016 , the vessel of one of these entities is accounted for as a direct financing lease with a carrying value of $20.2 million , unearned lease income of $0.8 million and estimated residual value of $4.0 million . The outstanding loan balances in this entity is $6.0 million , of which the short-term portion is $ nil . The other 24 fully consolidated variable interest entities own vessels which are accounted for as operating lease assets, with a total net book value at December 31, 2016 , of $564.9 million . The outstanding loan balances in these entities total $250.3 million , of which the short-term portion is $13.9 million . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In February 2017, the Board of Ship Finance declared a dividend of $0.45 per share which was paid in cash on March 30, 2017. In February 2017, Deep Sea announced the plan to merge with Solstad Offshore ASA and Farstad Shipping ASA. The new listed entity will be called Solstad Farstad ASA, and the transaction is expected to be finalized in the second quarter of 2017. Subject to completion of the merger, a wholly owned subsidiary of Solstad Farstad ASA will be the charter guarantor under our agreements going forward. In February 2017, Seadrill provided an update on the ongoing restructuring of their company in their fourth quarter earnings release. According to Seadrill, the negotiation of a potential financial restructuring with its secured lending banks, unsecured bondholders, and potential new money investors is continuing. In the event a consensual restructuring agreement is not concluded within certain deadlines, or an agreement to an extension of the deadlines is not reached, Seadrill are also preparing various contingency plans, including potential schemes of arrangement or chapter 11 proceedings. In April 2017, Seadrill announced that they continue to be engaged in ongoing negotiations with their banks, potential new money investors and the advisers to an ad hoc committee of bondholders regarding the terms of a comprehensive restructuring, which may include the infusion of new capital. While no definitive terms have been reached, based on stakeholder and new money investor feedback, as well as Seadrill’s existing leverage, Seadrill currently believes that a comprehensive restructuring plan will require a substantial impairment or conversion of its bonds as well as impairment, losses or substantial dilution for other stakeholders. Seadrill also announced that it expects the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings. In March 2017, the Company delivered the 1998-built VLCC Front Century to an unrelated third party. The sale of the vessel was agreed in November 2016, in combination with a termination of the charter to Frontline upon delivery of the vessel to the new owner. The net sale price for the vessel was approximately $23.8 million , including compensation receivable from Frontline for the early termination of the charter. In March 2017, SFL Europa was released following its detention in the port of Chittagong, Bangladesh, in November 2016 due to unpaid expenses incurred by the previous charterer, Hanjin Shipping. The vessel is being marketed for a new charter. In March 2017, we took delivery of the MSC Viviana , a 19,200 TEU container vessel chartered-in on a 15 -year bareboat lease. Upon delivery, the vessel commenced a 15 -year bareboat charter to MSC. In April 2017, the jack-up drilling rig Soehanah was redelivered to us from the previous charterer, PT Apexindo Pratama Duta TBK (“Apexindo”), following completion of a special periodic survey. The Company received a $6 million non-amortizing loan note from Apexindo, with a term of approximately six years, which became effective upon the redelivery of the rig to the Company. The rig, which is debt free, is being marketed for new opportunities. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 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 also previously Frontline Shipping II Limited ("Frontline Shipping II"), which are related parties, are accrued based on amounts earned at the reporting date. Such profit share income has two elements: - 50% profit sharing: From January 1, 2012, up to and including June 30, 2015, the charter agreements with Frontline Shipping and Frontline Shipping II included provisions whereby they were to pay the Company profit sharing of 25% 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. In December 2011, the Company received a $106 million compensation payment from Frontline Ltd. ("Frontline"), of which $50 million represented a non-refundable advance relating to this 25% profit sharing agreement. The amendments to the charter agreements made on June 5, 2015, increased the profit sharing percentage to 50% for earnings above new threshold levels from July 1, 2015, onwards. The Company did not recognize any income under the 25% profit sharing agreement, as the cumulative share of earnings did not attain the starting level of $50 million over the three and a half years of the agreement's duration. The new 50% profit sharing agreement is not subject to any such constraints. - Cash sweep: The charter agreements effective from January 1, 2012, were essentially the continuation of previous agreements amended to temporarily reduce the time-charter rates by $6,500 per day for the four year period commencing January 1, 2012. The agreements additionally provided that during the four year period Frontline Shipping and Frontline Shipping II would 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. This arrangement was terminated with effect from July 1, 2015 (see Note 23: Related party transactions). As detailed in Note 23: Related party transactions, the Company also has, or has had, profit sharing arrangements with related parties Golden Ocean Group Limited ("Golden Ocean"), Deep Sea Supply Plc ("Deep Sea") and United Freight Carriers ("UFC"). Amounts receivable under these arrangements are accrued on the basis of amounts earned at the reporting date. 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 share investments and interest-earning listed and unlisted corporate bonds. Any premium paid on their 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. If circumstances arise which lead the Company to believe that the issuer of a corporate bond may be unable meet its payment obligations in full, or that the fair value at acquisition of the share investment or corporate bond may otherwise not be fully recoverable, then to the extent that a loss is expected to arise that unrealized loss is recorded as an impairment in the statement of operations, with an adjustment if necessary to any unrealized gains or losses previously recorded in 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, 2016 and 2015 , 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. |
Vessels and equipment (including operating lease assets) | 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 rates applicable to borrowings outstanding during the period. 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 one long-term investment, consisting 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 of $2.9 million was made to the carrying value of this asset in 2012, reducing its carrying value to $ nil ( December 31, 2015 : $ nil ; December 31, 2014: $ nil ). |
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 each lease was recorded as a deferred deemed equity contribution. These deferred deemed equity contributions were presented as a reduction in the net investment in direct financing leases in the balance sheet, due to the related party nature of both the transfer of the vessels and the subsequent direct financing leases. The deferred deemed equity contributions were amortized as credits to contributed surplus over the life of the lease arrangements, as lease payments were applied to the principal balance of each lease receivable. Amendments were made to the charter agreements on June 5, 2015, reducing daily lease payments from July 1, 2015, onwards. In the course of re-stating the amended leases, it was concluded that amortization of the deferred deemed equity contributions is no longer appropriate and these items are now incorporated into the revised lease schedules. |
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, 2016, and concluded that the carrying value of one container vessel was impaired and a charge was taken against this vessel. In the year ended December 31, 2015 , reviews of the carrying value of long-lived assets indicated that two container vessels and two off-shore supply vessels were impaired, and charges were taken against those assets. In the year ended December 31, 2014, reviews of the carrying value of long-lived assets indicated that the carrying value of five container vessels were impaired, and charges were taken against those assets, which were sold in 2015. |
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. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards During the period, the Company adopted ASU 2015-03 "Interest - Imputation of Interest, (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and premiums. This ASU is effective for fiscal years beginning after December 15, 2015, and is effective retrospectively. As a result, at December 31, 2016, $27.1 million ( December 31, 2015 : $32.3 million ) of debt issuance costs have been reclassified from Non-Current Assets to Non-Current Liabilities as a direct deduction from long-term debt (see Note 19 - Long-Term Debt). RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers" which will replace almost all existing revenue recognition guidance in U.S. GAAP and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 was effective for reporting periods and interim periods beginning on or after December 15, 2016. In August 2015, the FASB issued ASU 2015-14 "Deferral of the Effective Date" to delay the implementation of ASU 2014-09 by one year, in response to feedback from preparers, practitioners and users of financial statements. Accordingly, ASU 2014-09 is now effective for reporting periods and interim periods beginning on or after December 15, 2017. The Company is in the process of considering the impact of the standard on its consolidated financial statements and expects to complete the assessment during fiscal year 2017. For vessels operating on voyage charters, we expect to continue recognizing revenue over time. The time period over which revenue will be recognized is still being determined and, depending on the final conclusion, each period’s voyage results could differ materially from the same period’s voyage results recognized based on the present revenue recognition guidance. However, the total voyage results recognized over all periods would not change. The adoption of the standard is not expected to have a material impact on other income, primarily income earned from the commercial management of related party and third party vessels and newbuilding supervision fees derived from related parties and third parties. In January 2016, the FASB issued ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 particularly relates to the fair value and impairment of equity investments, financial instruments measured at amortized cost, and the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU 2016-01 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is only permitted for certain particular amendments within ASU 2016-01, where financial statements have not yet been issued. ASU 2016-01 will require the Company to recognize any changes in the fair value of certain equity investments in net income. These changes are currently recognized in other comprehensive income. In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of ASU 2016-02 on its consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09 "Compensation - Stock Compensation" to introduce improvements to employee share-based payment accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. In March 2016, the FASB issued ASU 2016-07 "Investments - Equity Method and Joint Ventures" to simplify the transition to the equity method of accounting. ASU 2016-07 eliminates the requirement that when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership, the investor must adjust the investment, results of operations and retained earnings retrospectively as if the equity method had been in effect during all previous periods in which the investment had been held. ASU 2016-07 is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years with early adoption permitted. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently assessing the impact of ASU 2016-15 on its statement of consolidated cash flows. In January 2017, the FASB issued ASU 2017-01 "Business Combinations (Topic 805) -Clarifying the Definition of a Business" which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is required to be applied prospectively and will be effective for the Company beginning January 1, 2018. The impact on the consolidated financial statements of the Company will depend on the facts and circumstances of any specific future transactions. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 $) 2016 2015 2014 Basic: Net income available to stockholders 146,406 200,832 122,815 Diluted: Net income available to stockholders 146,406 200,832 122,815 Interest and other expenses attributable to convertible bonds 15,310 22,449 22,431 Net income assuming dilution 161,716 223,281 145,246 The components of the denominator for the calculation of basic and diluted EPS are as follows: Year ended December 31 (in thousands) 2016 2015 2014 Basic earnings per share: Weighted average number of common shares outstanding 93,497 93,450 93,331 Diluted earnings per share: Weighted average number of common shares outstanding 93,497 93,450 93,331 Effect of dilutive share options — 23 84 Effect of dilutive convertible debt 14,543 25,535 23,332 Weighted average number of common shares outstanding assuming dilution 108,040 119,008 116,747 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , are as follows: (in thousands of $) Year ending December 31, 2017 245,539 2018 230,380 2019 205,314 2020 186,447 2021 138,058 Thereafter 177,428 Total minimum lease revenues 1,183,166 |
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, 2016 and 2015 were as follows: (in thousands of $) 2016 2015 Cost 2,154,994 1,964,852 Accumulated depreciation 417,825 323,535 Vessels and equipment, net 1,737,169 1,641,317 |
(LOSS)_GAIN ON SALE OF ASSETS38
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Gain (Loss) on Disposition of Assets [Abstract] | |
Gains on sale of assets and termination of charters | The Company has recorded gains/losses on sale of assets and termination of charters as follows: Year ended December 31 (in thousands of $) 2016 2015 2014 (Loss) / gain on sale of assets (167 ) 7,364 (1,384 ) Gain on termination of charters — — 25,315 Total (loss) / gain on sale of assets and termination of charters (167 ) 7,364 23,931 |
OTHER FINANCIAL ITEMS (Tables)
OTHER FINANCIAL ITEMS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other financial items | Other financial items comprise the following items: Year ended December 31 (in thousands of $) 2016 2015 2014 Net increase/(decrease) in fair value of non-designated derivatives 3,917 (13,051 ) (7,636 ) Net cash payments on non-designated derivatives (4,913 ) (6,453 ) (7,196 ) Net increase/(decrease) in fair value of designated derivatives (ineffective portion) 482 (227 ) (63 ) Other items (1,575 ) (1,558 ) (1,337 ) Total other financial items (2,089 ) (21,289 ) (16,232 ) |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale debt securities | Marketable securities held by the Company are debt securities and share investments considered to be available-for-sale securities. (in thousands of $) 2016 2015 Amortized cost 197,449 185,148 Accumulated net unrealized (loss)/gain (78,960 ) 14,446 Carrying value 118,489 199,594 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Vessels and equipment | ( in thousands of $) 2016 2015 Cost 2,154,994 1,964,852 Accumulated depreciation 417,825 323,535 Vessels and equipment, net 1,737,169 1,641,317 |
INVESTMENTS IN DIRECT FINANCI42
INVESTMENTS IN DIRECT FINANCING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , and December 31, 2015 : (in thousands of $) 2016 2015 Total minimum lease payments to be received 862,083 825,460 Less : amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (287,168 ) (362,959 ) Net minimum lease payments receivable 574,915 462,501 Estimated residual values of leased property (un-guaranteed) 213,901 195,238 Less : unearned income (232,781 ) (146,296 ) Total investment in direct financing leases 556,035 511,443 Current portion 32,220 37,145 Long-term portion 523,815 474,298 556,035 511,443 |
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 leases as of December 31, 2016 , are as follows: (in thousands of $) Year ending December 31, 2017 101,237 2018 101,203 2019 103,609 2020 99,421 2021 88,855 Thereafter 367,758 Total minimum lease revenues 862,083 |
INVESTMENT IN ASSOCIATED COMP43
INVESTMENT IN ASSOCIATED COMPANIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Percentage participation using the equity method of accounting | At December 31, 2016 , 2015 and 2014 , the Company had the following participation in investments that are recorded using the equity method: 2016 2015 2014 SFL Deepwater Ltd 100.00 % 100.00 % 100.00 % SFL Hercules Ltd 100.00 % 100.00 % 100.00 % SFL Linus Ltd 100.00 % 100.00 % 100.00 % SFL West Polaris Limited — % — % — % Bluelot Shipping Company Limited — % — % — % SFL Corte Real Limited — % — % — % |
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, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 122,675 33,763 38,351 50,561 Non-current assets 1,094,442 335,229 326,562 432,651 Total assets 1,217,117 368,992 364,913 483,212 Current liabilities 107,026 25,512 29,280 52,234 Non-current liabilities (1) 1,109,961 343,426 335,603 430,932 Total liabilities 1,216,987 368,938 364,883 483,166 Total shareholders' equity (2) 130 54 30 46 As of December 31, 2015 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 120,251 33,735 38,936 47,580 Non-current assets 1,212,302 366,893 362,419 482,990 Total assets 1,332,553 400,628 401,355 530,570 Current liabilities 128,455 25,221 28,624 74,610 Non-current liabilities (1) 1,119,483 335,881 354,025 429,577 Total liabilities 1,247,938 361,102 382,649 504,187 Total shareholders' equity (2) 84,615 39,526 18,706 26,383 (1) SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2016 , include $119.2 million ( 2015 : $137.4 million ), $85.9 million ( 2015 : $125.3 million ) and $125.0 million ( 2015 : $125.0 million ) due to Ship Finance, respectively (see Note 23: Related party transactions). In addition, SFL Linus current liabilities at December 31, 2016 , include a further $0.7 million ( 2015 : $23.2 million ) due to Ship Finance (see Note 23: Related party transactions). (2) In the year ended December 31, 2016, SFL Deepwater, SFL Hercules and SFL Linus paid dividends of $46.3 million (2015: $ nil ; 2014: $ nil ), $25.1 million (2015: $ nil ; 2014: $ nil ) and $42.1 million (2015: $ nil ; 2014: $ nil ), respectively. Summarized statement of operations information of the Company's wholly-owned equity method investees is shown below. Year ended December 31, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 80,269 22,088 23,292 34,889 — — — Net operating revenues 80,269 22,088 23,292 34,889 — — — Net income (3) 27,765 6,778 6,424 14,563 — — — Year ended December 31, 2015 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 82,731 22,424 23,315 36,992 — — — Net operating revenues 82,725 22,422 23,313 36,990 — — — Net income (3) 31,001 7,561 7,306 16,134 — — — Year ended December 31, 2014 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus SFL West Polaris Bluelot Corte Real Operating revenues 108,632 24,917 24,565 33,236 22,251 1,171 2,492 Net operating revenues 105,567 24,905 24,544 33,221 22,234 232 431 Net income (3) 33,497 8,023 7,755 12,413 4,643 232 431 (3) The net income of the above associated companies in the year ended December 31, 2016 , includes interest payable to Ship Finance amounting to $6.5 million ( 2015 : $6.5 million ; 2014 : $6.5 million ), $6.5 million ( 2015 : $6.5 million ; 2014 : $6.5 million ), $5.6 million ( 2015 : $5.6 million ; 2014 : $4.9 million ) and $ nil ( 2015 : $ nil ; 2014 : $6.5 million ), respectively (see Note 23: Related party transactions). |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | (in thousands of $) 2016 2015 Vessel operating expenses 4,022 3,676 Administrative expenses 1,414 1,206 Interest expense 8,364 7,764 13,800 12,646 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | (in thousands of $) 2016 2015 Deferred and prepaid charter revenue 4,326 5,549 Obligations under capital leases - current portion 3,649 — Employee taxes 151 152 Other items 756 11,336 8,882 17,037 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of long-term debt | (in thousands of $) 2016 2015 Long-term debt: 3.75% senior unsecured convertible bonds due 2016 — 117,500 Norwegian kroner 600 million senior unsecured floating rate bonds due 2017 65,445 63,681 3.25% senior unsecured convertible bonds due 2018 184,202 350,000 Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 87,801 85,434 5.75% senior unsecured convertible bonds due 2021 225,000 — U.S. dollar denominated floating rate debt due through 2023 1,017,558 1,049,861 Total debt principal 1,580,006 1,666,476 Less : unamortized debt issuance costs (27,132 ) (32,271 ) Less : current portion of long-term debt (174,900 ) (208,031 ) 1,377,974 1,426,174 |
Schedule of maturities of debt | The outstanding debt as of December 31, 2016 , is repayable as follows: (in thousands of $) Year ending December 31, 2017 174,900 2018 324,847 2019 264,481 2020 172,060 2021 457,412 Thereafter 186,306 Total debt principal 1,580,006 |
OTHER LONG TERM LIABILITIES (Ta
OTHER LONG TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long Term Liabilities | (in thousands of $) 2016 2015 Unamortized sellers' credit 6,124 11,960 Obligations under capital leases - long-term portion 118,754 — Other items 4 3 124,882 11,963 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | In October 2015, the Company entered into agreements to charter in two newbuilding container vessels on a bareboat basis, each for a period of 15 years from delivery by the shipyard, and to charter out each vessel for the same 15 -year period on a bareboat basis to MSC, an unrelated party. The first of these vessels, the MSC Anna , was delivered in December 2016 and this vessel is accounted for as a direct financing lease asset. The Company's future minimum lease obligations under this non-cancellable lease are as follows: (in thousands of $) 2017 12,527 2018 12,527 2019 12,527 2020 12,561 2021 12,527 Thereafter 151,993 Total lease obligations 214,662 Less: imputed interest payable (92,259 ) Present value of obligations under capital lease 122,403 Less: current portion (3,649 ) Obligations under capital lease - long-term portion 118,754 |
SHARE CAPITAL, ADDITIONAL PAI48
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Capital | Authorized share capital is as follows: (in thousands of $, except share data) 2016 2015 150,000,000 common shares of $0.01 par value each (2015: 125,000,000 common shares of $1.00 par value each) 1,500 125,000 Issued and fully paid share capital is as follows: (in thousands of $, except share data) 2016 2015 101,504,575 common shares of $0.01 par value each (2015: 93,468,000 common shares of $1.00 par value each) 1,015 93,468 |
SHARE OPTION PLAN (Tables)
SHARE OPTION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 , 2015 and 2014 : 2016 2015 2014 Options Weighted average exercise price $ Options Weighted average exercise price $ Options Weighted average exercise price $ Options outstanding at beginning of year 125,000 12.56 189,000 13.17 423,000 9.99 Granted 279,000 14.38 — — — — Exercised (125,000 ) 12.11 (64,000 ) 10.55 (224,000 ) 5.41 Forfeited — — — — (10,000 ) 5.56 Options outstanding at end of year 279,000 13.03 125,000 12.56 189,000 13.17 Exercisable at end of year — — 125,000 12.56 189,000 13.17 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: Investments in direct financing leases): (in thousands of $) 2016 2015 Amounts due from: Frontline Charterers 11,906 18,052 Frontline Ltd 3,008 2,816 UFC — 1,639 Deep Sea 1,945 — SFL Linus 660 23,152 Total amount due from related parties 17,519 45,659 Loans to related parties - associated companies, long-term SFL Deepwater 119,167 137,437 SFL Hercules 85,920 125,275 SFL Linus 125,000 125,000 Total loans to related parties - associated companies, long-term 330,087 387,712 Loans to related parties - others, long-term Deep Sea 9,268 — Total loans to related parties - others, long-term 9,268 — Amounts due to: Frontline Charterers 229 229 Frontline Management 493 143 Seatankers 79 — Other related parties 49 44 Total amount due to related parties 850 416 |
Summary of leasing revenues earned from related parties | A summary of leasing revenues earned from the Frontline Charterers, Deep Sea, Golden Ocean and UFC is as follows: (in millions of $) 2016 2015 2014 Operating lease income 65.3 42.9 26.4 Direct financing lease interest income 22.9 34.2 45.4 Finance lease service revenue 44.5 46.5 46.5 Direct financing lease repayments 30.3 35.9 43.1 Profit sharing revenues 51.5 59.6 33.8 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 $) 2016 2015 Designated derivative instruments -short-term liabilities: Interest rate swaps — — Cross currency interest rate swaps 37,101 — Non-designated derivative instruments -short-term liabilities: Interest rate swaps — — Cross currency interest rate swaps 2,208 — Total derivative instruments - short-term liabilities 39,309 — Designated derivative instruments -long-term liabilities: Interest rate swaps 10,134 11,458 Cross currency interest rate swaps 41,716 87,642 Non-designated derivative instruments -long-term liabilities: Interest rate swaps 1,388 2,897 Cross currency interest rate swaps 8,218 11,645 Total derivative instruments - long-term liabilities 61,456 113,642 (in thousands of $) 2016 2015 Designated derivative instruments -short-term assets: Interest rate swaps 110 — Total derivative instruments - short-term assets 110 — Designated derivative instruments -long-term assets: Interest rate swaps 4,540 487 Non-designated derivative instruments -long-term assets: Interest rate swaps 1,502 313 Total derivative instruments - long-term assets 6,042 800 |
Schedule of interest rate swap transactions designated as hedges against specific loans | 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, 2016 , 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 $28,680 (reducing to $24,794) March 2008 August 2018 4.05% - 4.15% $30,233 (reducing to $23,394) April 2011 December 2018 2.13% - 2.80% $44,873 (reducing to $34,044) May 2011 January 2019 0.80% - 2.58% $100,000 (remaining at $100,000) August 2011 August 2021 2.50% - 2.93% $145,667 (terminating at $79,733) May 2012 August 2022 1.76% - 1.85% $105,436 (equivalent to NOK600 million) October 2012 October 2017 5.92% - 6.23% * $35,467 (reducing to $32,142) February 2013 December 2017 0.81% - 0.82% $100,000 (remaining at $100,000) March 2013 April 2023 1.85% - 1.97% $151,008 (equivalent to NOK900 million) March 2014 March 2019 6.03 % * $108,375 (reducing to $70,125) December 2016 December 2021 1.86% - 3.33% $110,500 (reducing to $70,125) January 2017 January 2022 1.56% - 3.09% $31,547 (reducing to $19,413) September 2015 March 2022 1.67 % $200,156 (reducing to $149,844) February 2016 February 2021 1.07% - 1.26% * These swaps relate to the NOK 600 million and the NOK 900 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 | 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 NOK 600 million senior unsecured bonds due 2017 and the NOK 900 million senior unsecured bonds due 2019. Principal Receivable Principal Payable Inception date Maturity date NOK600 million US$105.4 million October 2012 October 2017 NOK900 million US$151.0 million March 2014 March 2019 |
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, 2016 , and 2015 , are as follows: 2016 2016 2015 2015 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale securities 118,489 118,489 199,594 199,594 Floating rate NOK bonds due 2017 65,445 65,955 63,681 63,719 Floating rate NOK bonds due 2019 87,801 86,026 85,434 79,549 3.75% unsecured convertible bonds due 2016 — — 117,500 118,021 3.25% unsecured convertible bonds due 2018 184,202 201,206 350,000 378,315 5.75% unsecured convertible bonds due 2021 225,000 224,366 — — Derivatives: Interest rate/ currency swap contracts – short-term receivables 110 110 — — Interest rate/ currency swap contracts – long-term receivables 6,042 6,042 800 800 Interest rate/ currency swap contracts – short-term payables 39,309 39,309 — — Interest rate/ currency swap contracts – long-term payables 61,456 61,456 113,642 113,642 |
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, 2016 , are measured as follows: Fair value measurements using Total fair value as at December 31, 2016 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 118,489 118,489 Interest rate/ currency swap contracts – short-term receivables 110 110 Interest rate/ currency swap contracts - long-term receivables 6,042 6,042 Total assets 124,641 118,489 6,152 — Liabilities: Floating rate NOK bonds due 2017 65,955 65,955 Floating rate NOK bonds due 2019 86,026 86,026 3.25% unsecured convertible bonds due 2018 201,206 201,206 5.75% unsecured convertible bonds due 2021 224,366 224,366 Interest rate/ currency swap contracts – short-term payables 39,309 39,309 Interest rate/ currency swap contracts – long-term payables 61,456 61,456 Total liabilities 678,318 577,553 100,765 — The above fair values of financial assets and liabilities as at December 31, 2015 , were measured as follows: Fair value measurements using Total fair value as at December 31, 2015 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 199,594 199,594 — Interest rate/ currency swap contracts – long-term receivables 800 800 Total assets 200,394 199,594 800 — Liabilities: Floating rate NOK bonds due 2017 63,719 63,719 Floating rate NOK bonds due 2019 79,549 79,549 3.75% unsecured convertible bonds due 2016 118,021 118,021 3.25% unsecured convertible bonds due 2018 378,315 378,315 Interest rate/ currency swap contracts – long-term payables 113,642 113,642 Total liabilities 753,246 639,604 113,642 — |
Schedule of changes in the fair values of the asset with Level 3 valuation |
COMMITMENTS AND CONTINGENT LI52
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of assets pledged | Assets Pledged 2016 Book value of consolidated assets pledged under ship mortgages (see Note 19) $2,009 million |
GENERAL (Details)
GENERAL (Details) | Dec. 31, 2016carrier | Dec. 31, 2016vessel | Dec. 31, 2016drilling_rig | Dec. 31, 2016tanker | Dec. 31, 2015vessel | Oct. 31, 2015vessel |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of very large crude oil carriers owned | 11 | |||||
Number of Suezmax crude oil carriers owned | 4 | |||||
Number of Capesize drybulk carriers owned | 8 | |||||
Number of Supramax drybulk carriers owned | 5 | |||||
Number of Handysize drybulk carriers owned | 7 | |||||
Number of Kamsarmax drybulk carriers owned | 2 | |||||
Number of container vessels owned | vessel | 20 | |||||
Number of car carriers | 2 | |||||
Number of jack-up drilling rigs owned | drilling_rig | 2 | |||||
Number of ultra-deepwater drilling units owned by wholly-owned subsidiaries accounted for using the equity method | drilling_rig | 2 | |||||
Number of offshore supply vessels owned | vessel | 5 | |||||
Number of chemical tankers owned | tanker | 2 | |||||
Number of jack-up drilling rigs owned by wholly-owned subsidiaries account for using the equity method | drilling_rig | 1 | |||||
Number of oil product tankers contracted to be acquired | 2 | 2 | 2 | |||
Number of container vessels contracted to be chartered in | vessel | 1 | 2 | 2 | |||
Number of chartered-in container vessels delivered | vessel | 1 | |||||
Number of VLCCs held for sale | vessel | 1 |
ACCOUNTING POLICIES (Related Pa
ACCOUNTING POLICIES (Related Party) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 42 Months Ended | |
Jan. 31, 2012 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2011 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | |||||
Profit sharing percent of earnings from Frontline from July 1 2015 onwards | 50.00% | ||||
Frontline Charterers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Increase profit sharing percentage of earnings from Frontline for use of fleet (in hundredths) | 25.00% | ||||
Compensation payment received | $ 150,000,000 | $ 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) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2012USD ($) | Dec. 31, 2016USD ($)containershipvesseldrilling_rigInvestment | Dec. 31, 2015USD ($)containership | Dec. 31, 2014USD ($)containership | Dec. 31, 2012USD ($) | |
Accounting Policies [Abstract] | |||||
Number of ultra deepwater drilling units owned | drilling_rig | 2 | ||||
Number of wholly-owned subsidiaries that own drilling rigs | vessel | 3 | ||||
Number of jack-up drilling rigs owned by wholly-owned subsidiaries account for using the equity method | drilling_rig | 1 | ||||
Property, Plant and Equipment [Line Items] | |||||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 27,132,000 | $ 32,271,000 | |||
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 | |||
Number of container vessels impaired | containership | 1 | 2 | 5 | ||
Number of off-shore supply vessels impaired | containership | 2 | ||||
Long-term investment impairment charge | $ 2,900,000 | ||||
Number of long-term investments in shares which are not publicly traded | Investment | 1 | ||||
Offshore vessels and rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated economic useful life (in years) | 30 years | ||||
Other Capitalized Property Plant and Equipment [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% | ||||
Impaired Investment 1 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Investments | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic: | |||
Net income available to stockholders | $ 146,406 | $ 200,832 | $ 122,815 |
Diluted: | |||
Interest on Convertible Debt, Net of Tax | 15,310 | 22,449 | 22,431 |
Net income available to stockholders, diluted | $ 161,716 | $ 223,281 | $ 145,246 |
Basic earnings per share: | |||
Weighted average number of common shares outstanding | 93,497 | 93,450 | 93,331 |
Diluted earnings per share: | |||
Weighted average number of common shares outstanding | 93,497 | 93,450 | 93,331 |
Effect of dilutive share options | 0 | 23 | 84 |
Effect of dilutive convertible debt | 14,543 | 25,535 | 23,332 |
Weighted average number of diluted common shares outstanding | 108,040 | 119,008 | 116,747 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 1 Months Ended | ||
Oct. 31, 2016 | Oct. 05, 2016 | Feb. 10, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issued and loaned to affiliate | 8,000,000 | ||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate | 5.75% | ||
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate | 3.75% |
OPERATING LEASES (Details)
OPERATING LEASES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)containership | Dec. 31, 2015USD ($)containership | Dec. 31, 2014USD ($)containership | |
Minimum future revenues to be received under non-cancelable operating leases [Abstract] | |||
2,017 | $ 245,539 | ||
2,018 | 230,380 | ||
2,019 | 205,314 | ||
2,020 | 186,447 | ||
2,021 | 138,058 | ||
Thereafter | 177,428 | ||
Total minimum lease revenues | 1,183,166 | ||
Cost and accumulated depreciation of vessels leased on operating leases [Abstract] | |||
Cost | 2,154,994 | $ 1,964,852 | |
Accumulated depreciation | 417,825 | 323,535 | |
Vessels and equipment, net | 1,737,169 | 1,641,317 | |
Vessel impairment charge | $ 5,314 | $ 42,410 | $ 11,800 |
Number of container vessels impaired | containership | 1 | 2 | 5 |
Property Subject to Operating Lease [Member] | |||
Vessel impairment charge | $ 4,800 | $ 29,200 |
(LOSS)_GAIN ON SALE OF ASSETS60
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Summary) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
(Loss) / gain on sale of assets | $ (167,000) | $ 7,364,000 | $ (1,384,000) |
Gain on termination of charters | 0 | 0 | 25,315,000 |
Total (loss) / gain on sale of assets and termination of charters | (167,000) | $ 7,364,000 | $ 23,931,000 |
Sale of offshore support vessel Sea Bear [Member] | |||
(Loss) / gain on sale of assets | 14,000 | ||
Sale of VLCC Front Vanguard [Member] | |||
(Loss) / gain on sale of assets | $ (181,000) |
(LOSS)_GAIN ON SALE OF ASSETS61
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Gain on Sale of Vessels) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)vessel | Dec. 31, 2014USD ($)vessel | |
Gain on termination of charters | $ | $ 0 | $ 0 | $ 25,315 |
Vessel impairment charge | $ | 5,314 | 42,410 | 11,800 |
Gain/(Loss) | $ | $ (167) | $ 7,364 | $ (1,384) |
Double-hull Very Large Crude Carriers (VLCC) [Member] | |||
Number of vessels sold | vessel | 3 | ||
Container vessels [Member] | |||
Number of vessels sold | vessel | 5 | ||
Suezmax Tankers [Member] | |||
Number of vessels sold | vessel | 3 |
(LOSS)_GAIN ON SALE OF ASSETS62
(LOSS)/GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Gain on Termination of Charters) (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2010vessel | Sep. 30, 2010USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Vessel impairment charge | $ 5,314,000 | $ 42,410,000 | $ 11,800,000 | ||
(Loss) / gain on sale of assets | (167,000) | 7,364,000 | (1,384,000) | ||
Term of time charter | 5 years | ||||
Daily charter rate of drybulk carriers with terminated charters | $ 14,000 | ||||
Number of drybulk carriers with charter agreement terminated | vessel | 4 | 4 | |||
Total compensation received on termination of charters | 0 | 0 | $ 25,315,000 | ||
Sale of offshore support vessel Sea Bear [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Vessel impairment charge | $ 8,090,000 | ||||
(Loss) / gain on sale of assets | 14,000 | ||||
Sale of VLCC Front Vanguard [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
(Loss) / gain on sale of assets | $ (181,000) |
GAIN ON SALE OF LOAN NOTES AN63
GAIN ON SALE OF LOAN NOTES AND SHARE WARRANTS - OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2015 | |
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from redemption of Horizon loan notes and warrants | $ 0 | $ 71,681 | $ 0 | |
Available-for-sale securities | 118,489 | 199,594 | ||
Gain on sale of loan notes and share warrants - other | $ 0 | 44,552 | $ 0 | |
Impaired Investment 2 [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Investments | $ 1,200 | |||
Unlisted Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Available-for-sale securities | $ 25,900 |
OTHER FINANCIAL ITEMS (Details)
OTHER FINANCIAL ITEMS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Net increase/(decrease) in fair value of non-designated derivatives | $ 3,917 | $ (13,051) | $ (7,636) |
Net cash payments on non-designated derivatives | (4,913) | (6,453) | (7,196) |
Net increase/(decrease) in fair value of designated derivatives (ineffective portion) | 482 | (227) | (63) |
Other items | (1,575) | (1,558) | (1,337) |
Total other financial items | (2,089) | (21,289) | (16,232) |
Loss on derivative instrument reclassified from other comprehensive income | 0 | (1,300) | (4,500) |
Gain on foreign currency translation | $ 146 | $ 53 | $ 109 |
AVAILABLE FOR SALE SECURITIES65
AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 197,449 | $ 185,148 | |
Accumulated net unrealized (loss)/gain | (78,960) | 14,446 | $ (7,087) |
Carrying value | 118,489 | 199,594 | |
Available-for-sale securities impairment charge | 0 | (20,552) | $ 0 |
Share capital | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | 164,500 | ||
Common stock - Frontline Ltd [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | 78,200 | ||
Common stock - NorAm Drilling [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | 1,400 | 0 | |
Listed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value | $ 38,900 | $ 35,100 |
TRADE ACCOUNTS RECEIVABLE AND66
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Allowance for doubtful accounts, trade receivables | $ 0 | $ 0 |
Allowance for doubtful other receivables | $ 0 | $ 0 |
VESSELS AND EQUIPMENT, NET (Sch
VESSELS AND EQUIPMENT, NET (Schedule of Vessels and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 2,154,994 | $ 1,964,852 |
Accumulated depreciation | 417,825 | 323,535 |
Vessels and equipment, net | $ 1,737,169 | $ 1,641,317 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)containership | Dec. 31, 2015USD ($)carriercontainership | Dec. 31, 2014USD ($)containership | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of drybulk carriers delivered | carrier | 8 | ||
Cost of drybulk carriers | $ 272,000 | ||
Number of newbuilding container vessels delivered | containership | 2 | 3 | |
Cost of newbuilding container vessels delivered | $ 195,000 | $ 270,700 | |
Vessel impairment charge | $ 5,314 | $ 42,410 | $ 11,800 |
Number of container vessels impaired | containership | 1 | 2 | 5 |
Depreciation | $ 94,293 | $ 78,080 | $ 67,393 |
Property Subject to Operating Lease [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Vessel impairment charge | $ 4,800 | $ 29,200 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)containershipvessel | Dec. 31, 2015USD ($)vesselcontract | Dec. 31, 2014USD ($) | Dec. 31, 2016tanker | Dec. 31, 2016USD ($) | Dec. 31, 2016contract | |
NEWBUILDINGS [Abstract] | ||||||
Interest capitalized in the cost of newbuildings | $ | $ 1,244 | $ 404 | $ 290 | |||
Number of newbuilding contracts | contract | 4 | 2 | ||||
Number of container vessels contracted to be acquired | contract | 2 | |||||
Number of oil product tankers contracted to be acquired | 2 | 2 | 2 | |||
Accumulated costs of newbuildings | $ | $ 40,100 | $ 33,400 | ||||
Number of container vessels delivered | containership | 2 |
INVESTMENTS IN DIRECT FINANCI70
INVESTMENTS IN DIRECT FINANCING LEASES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Dec. 31, 2016USD ($)vesselRate | Dec. 31, 2015USD ($)vessel | Dec. 31, 2014USD ($) | Oct. 31, 2015vessel | |
Investment in Direct Financing Leases (Details) | |||||
Number of VLCCs and Suezmaxes Chartered | vessel | 12 | 14 | |||
Term of charters, minimum (in years) | 4 years | ||||
Term of charters, maximum (in years) | 10 years | ||||
Vessel impairment charge | $ 5,314 | $ 42,410 | $ 11,800 | ||
Number of offshore supply vessels chartered on long-term bareboat charters | vessel | 1 | ||||
Joint venture, ownership percentage | Rate | 50.00% | ||||
Number of container vessels contracted to be chartered in | vessel | 1 | 2 | 2 | ||
Term of lease or charter | 8 years | 15 years | 15 years | ||
Assets accounted for as direct financing leases and leased to related parties | vessel | 14 | 16 | |||
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | $ 556,035 | $ 511,443 | |||
Number of Chartered In Vessels | vessel | 1 | ||||
Minimum future lease revenues to be received [Abstract] | |||||
2,017 | $ 101,237 | ||||
2,018 | 101,203 | ||||
2,019 | 103,609 | ||||
2,020 | 99,421 | ||||
2,021 | 88,855 | ||||
Thereafter | 367,758 | ||||
Total minimum lease revenues | 862,083 | ||||
Property subject to direct financing leases [Member] | |||||
Investment in Direct Financing Leases (Details) | |||||
Vessel impairment charge | 500 | ||||
Container vessels contracted in subject to direct financing leases [Member] | |||||
Investment in Direct Financing Leases (Details) | |||||
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | $ 144,911 | $ 0 |
INVESTMENTS IN DIRECT FINANCI71
INVESTMENTS IN DIRECT FINANCING LEASES (Components of Investments in Direct Financing and Sales-type Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||
Total minimum lease payments to be received | $ 862,083 | $ 825,460 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (287,168) | (362,959) |
Net minimum lease payments receivable | 574,915 | 462,501 |
Estimated residual values of leased property (un-guaranteed) | 213,901 | 195,238 |
Less: unearned income | (232,781) | (146,296) |
Total investment in direct financing leases | 556,035 | 511,443 |
Current portion | 32,220 | 37,145 |
Long-term portion | $ 523,815 | $ 474,298 |
INVESTMENT IN ASSOCIATED COMP72
INVESTMENT IN ASSOCIATED COMPANIES (Details) shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015Rateshares | Dec. 31, 2016USD ($)drilling_rig | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2010 | Dec. 31, 2008vessel | Nov. 30, 2015Rate | May 31, 2013USD ($) | |||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of shares received | shares | 55 | |||||||||||
Equity in earnings of associated companies | $ 27,765,000 | $ 33,605,000 | $ 33,497,000 | |||||||||
Gain on sale of investment in associated company | 0 | 0 | 6,055,000 | |||||||||
Term loan facility, amount outstanding | $ 1,666,476,000 | 1,580,006,000 | 1,666,476,000 | |||||||||
Summarized balance sheet information [Abstract] | ||||||||||||
Due from related parties | 45,659,000 | 17,519,000 | 45,659,000 | |||||||||
Frontline Ltd [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | Rate | 27.73% | 7.03% | ||||||||||
Equity in earnings of associated companies | 0 | 2,600,000 | 0 | |||||||||
Proceeds from equity method investment dividends | 2,800,000 | |||||||||||
SFL Deepwater [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from equity method investment dividends | $ 46,300,000 | $ 0 | $ 0 | |||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 100.00% | |||||||||
Debt amount | $ 390,000,000 | |||||||||||
Term loan facility, term | 5 years | |||||||||||
Term loan facility, amount guaranteed | 80,000,000 | $ 75,000,000 | $ 80,000,000 | |||||||||
Term loan facility, amount outstanding | 221,100,000 | $ 248,400,000 | 221,100,000 | |||||||||
Number of main assets subject of leases which includes both fixed price call options and fixed price purchase obligations | 1 | 2 | ||||||||||
Available amount under revolving part of credit facility | 50,000,000 | $ 0 | 50,000,000 | |||||||||
Summarized balance sheet information [Abstract] | ||||||||||||
Current assets | 33,735,000 | 33,763,000 | 33,735,000 | |||||||||
Non-current assets | 366,893,000 | 335,229,000 | 366,893,000 | |||||||||
Total assets | 400,628,000 | 368,992,000 | 400,628,000 | |||||||||
Current liabilities | 25,221,000 | 25,512,000 | 25,221,000 | |||||||||
Non-current liabilities | [1] | 335,881,000 | 343,426,000 | 335,881,000 | ||||||||
Total liabilities | 361,102,000 | 368,938,000 | 361,102,000 | |||||||||
Total shareholders' equity (2) | 39,526,000 | 54,000 | 39,526,000 | |||||||||
Due to parent | 137,400,000 | 119,200,000 | 137,400,000 | |||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | 22,088,000 | 22,424,000 | $ 24,917,000 | |||||||||
Net operating revenues | 22,088,000 | 22,422,000 | 24,905,000 | |||||||||
Net income | 6,778,000 | 7,561,000 | 8,023,000 | [2] | ||||||||
Interest payable to parent | 6,500,000 | 6,500,000 | 6,500,000 | |||||||||
SFL Hercules [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from equity method investment dividends | $ 25,100,000 | $ 0 | $ 0 | |||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 100.00% | |||||||||
Debt amount | $ 375,000,000 | |||||||||||
Term loan facility, term | 6 years | |||||||||||
Term loan facility, amount guaranteed | 80,000,000 | $ 75,000,000 | $ 80,000,000 | |||||||||
Term loan facility, amount outstanding | 256,300,000 | 278,700,000 | 256,300,000 | |||||||||
Available amount under revolving part of credit facility | 50,000,000 | 0 | 50,000,000 | |||||||||
Summarized balance sheet information [Abstract] | ||||||||||||
Current assets | 38,936,000 | 38,351,000 | 38,936,000 | |||||||||
Non-current assets | 362,419,000 | 326,562,000 | 362,419,000 | |||||||||
Total assets | 401,355,000 | 364,913,000 | 401,355,000 | |||||||||
Current liabilities | 28,624,000 | 29,280,000 | 28,624,000 | |||||||||
Non-current liabilities | [1] | 354,025,000 | 335,603,000 | 354,025,000 | ||||||||
Total liabilities | 382,649,000 | 364,883,000 | 382,649,000 | |||||||||
Total shareholders' equity (2) | 18,706,000 | 30,000 | 18,706,000 | |||||||||
Due to parent | 125,300,000 | 85,900,000 | 125,300,000 | |||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | 23,292,000 | 23,315,000 | $ 24,565,000 | |||||||||
Net operating revenues | 23,292,000 | 23,313,000 | 24,544,000 | |||||||||
Net income | 6,424,000 | 7,306,000 | 7,755,000 | |||||||||
Interest payable to parent | 6,500,000 | 6,500,000 | 6,500,000 | |||||||||
SFL Linus [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from equity method investment dividends | $ 42,100,000 | $ 0 | $ 0 | |||||||||
Participation in equity method investee (in hundredths) | 100.00% | 100.00% | 100.00% | |||||||||
Debt amount | $ 475,000,000 | |||||||||||
Term loan facility, term | 5 years | |||||||||||
Term loan facility, amount guaranteed | 90,000,000 | $ 90,000,000 | $ 90,000,000 | |||||||||
Term loan facility, amount outstanding | 353,800,000 | 356,300,000 | 353,800,000 | |||||||||
Available amount under revolving part of credit facility | 50,000,000 | 0 | 50,000,000 | |||||||||
Summarized balance sheet information [Abstract] | ||||||||||||
Current assets | 47,580,000 | 50,561,000 | 47,580,000 | |||||||||
Non-current assets | 482,990,000 | 432,651,000 | 482,990,000 | |||||||||
Total assets | 530,570,000 | 483,212,000 | 530,570,000 | |||||||||
Current liabilities | 74,610,000 | 52,234,000 | 74,610,000 | |||||||||
Non-current liabilities | [1] | 429,577,000 | 430,932,000 | 429,577,000 | ||||||||
Total liabilities | 504,187,000 | 483,166,000 | 504,187,000 | |||||||||
Total shareholders' equity (2) | 26,383,000 | 46,000 | 26,383,000 | |||||||||
Due to parent | 125,000,000 | 125,000,000 | 125,000,000 | |||||||||
Due from related parties | 23,152,000 | 660,000 | 23,152,000 | |||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | 34,889,000 | 36,992,000 | $ 33,236,000 | |||||||||
Net operating revenues | 34,889,000 | 36,990,000 | 33,221,000 | |||||||||
Net income | 14,563,000 | 16,134,000 | 12,413,000 | |||||||||
Interest payable to parent | $ 5,600,000 | $ 5,600,000 | $ 4,900,000 | |||||||||
SFL West Polaris [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 0.00% | 0.00% | 100.00% | ||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | $ 0 | $ 0 | $ 22,251,000 | |||||||||
Net operating revenues | 0 | 0 | 22,234,000 | |||||||||
Net income | 0 | 0 | 4,643,000 | [2] | ||||||||
Interest payable to parent | $ 0 | $ 0 | $ 6,500,000 | |||||||||
Bluelot Shipping Company [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 0.00% | 0.00% | 100.00% | ||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | $ 0 | $ 0 | $ 1,171,000 | |||||||||
Net operating revenues | 0 | 0 | 232,000 | |||||||||
Net income | $ 0 | $ 0 | $ 232,000 | [2] | ||||||||
SFL Corte Real [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Participation in equity method investee (in hundredths) | 0.00% | 0.00% | 0.00% | |||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | $ 0 | $ 0 | $ 2,492,000 | |||||||||
Net operating revenues | 0 | 0 | 431,000 | |||||||||
Net income | 0 | 0 | 431,000 | [2] | ||||||||
Total [Member] | ||||||||||||
Summarized balance sheet information [Abstract] | ||||||||||||
Current assets | 120,251,000 | 122,675,000 | 120,251,000 | |||||||||
Non-current assets | 1,212,302,000 | 1,094,442,000 | 1,212,302,000 | |||||||||
Total assets | 1,332,553,000 | 1,217,117,000 | 1,332,553,000 | |||||||||
Current liabilities | 128,455,000 | 107,026,000 | 128,455,000 | |||||||||
Non-current liabilities | [1] | 1,119,483,000 | 1,109,961,000 | 1,119,483,000 | ||||||||
Total liabilities | 1,247,938,000 | 1,216,987,000 | 1,247,938,000 | |||||||||
Total shareholders' equity (2) | $ 84,615,000 | 130,000 | 84,615,000 | |||||||||
Statement of operations information [Abstract] | ||||||||||||
Operating revenues | 80,269,000 | 82,731,000 | 108,632,000 | |||||||||
Net operating revenues | 80,269,000 | 82,725,000 | 105,567,000 | |||||||||
Net income | $ 27,765,000 | $ 31,001,000 | $ 33,497,000 | [2] | ||||||||
[1] | SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2016, include $119.2 million (2015: $137.4 million), $85.9 million (2015: $125.3 million) and $125.0 million (2015: $125.0 million) due to Ship Finance, respectively (see Note 23: Related party transactions). In addition, SFL Linus current liabilities at December 31, 2016, include a further $0.7 million (2015: $23.2 million) due to Ship Finance (see Note 23: Related party transactions). | |||||||||||
[2] | The net income of the above associated companies in the year ended December 31, 2016, includes interest payable to Ship Finance amounting to $6.5 million (2015: $6.5 million; 2014: $6.5 million), $6.5 million (2015: $6.5 million; 2014: $6.5 million), $5.6 million (2015: $5.6 million; 2014: $4.9 million) and $nil (2015: $nil; 2014: $6.5 million), respectively (see Note 23: Related party transactions). |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Abstract] | ||
Vessel operating expenses | $ 4,022 | $ 3,676 |
Administrative expenses | 1,414 | 1,206 |
Interest expense | 8,364 | 7,764 |
Accrued expenses | $ 13,800 | $ 12,646 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred and prepaid charter revenue | $ 4,326 | $ 5,549 |
Capital Lease Obligations, Current | 3,649 | 0 |
Employee taxes | 151 | 152 |
Other items | 756 | 11,336 |
Other current liabilities | 8,882 | 17,037 |
Current liabilities relating to newbuilding contracts | $ 0 | $ 10,900 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jan. 30, 2013 | Oct. 31, 2016USD ($) | Nov. 30, 2015USD ($)carriersubsidiary | Jul. 31, 2015USD ($)carriersubsidiary | Jun. 30, 2015USD ($)carriercontainershipsubsidiary | Dec. 31, 2014USD ($)subsidiary | Nov. 30, 2014USD ($)containershipsubsidiary | Sep. 30, 2014USD ($)containershipsubsidiary | Aug. 31, 2014USD ($)vesselsubsidiary | Jun. 30, 2014USD ($)subsidiary | Mar. 31, 2014 | Jan. 31, 2013USD ($)$ / sharesshares | Nov. 30, 2012USD ($)carriersubsidiary | Oct. 31, 2012NOK | Nov. 30, 2011 | May 31, 2011USD ($)vesselsubsidiary | Mar. 31, 2011USD ($)carrier | Feb. 28, 2011 | Nov. 30, 2010USD ($)carriersubsidiary | Mar. 31, 2010USD ($) | Feb. 28, 2010USD ($) | Mar. 31, 2008USD ($)tankersubsidiary | Dec. 31, 2016USD ($)carriervessel$ / sharesshares | Dec. 31, 2016NOK | Dec. 31, 2016USD ($)carriervessel$ / sharesshares | Dec. 31, 2016NOKcarrier | Dec. 31, 2015USD ($)carrier$ / shares | Dec. 31, 2015NOK | Dec. 31, 2014USD ($) | Dec. 31, 2016NOKcarriervesselshares | Nov. 30, 2016USD ($)shares | Oct. 05, 2016USD ($)$ / sharesshares | Feb. 29, 2016vessel | Dec. 31, 2015NOKcarrier | Mar. 19, 2014NOK | Feb. 10, 2011USD ($)$ / shares | Feb. 08, 2011USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 1,580,006,000 | $ 1,580,006,000 | $ 1,666,476,000 | ||||||||||||||||||||||||||||||||||
Less: unamortized debt issuance costs | (27,132,000) | (27,132,000) | (32,271,000) | ||||||||||||||||||||||||||||||||||
Less : current portion of long-term debt | (174,900,000) | (174,900,000) | (208,031,000) | ||||||||||||||||||||||||||||||||||
Total long-term debt, non-current portion | 1,377,974,000 | 1,377,974,000 | 1,426,174,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
2,017 | 174,900,000 | 174,900,000 | |||||||||||||||||||||||||||||||||||
2,018 | 324,847,000 | 324,847,000 | |||||||||||||||||||||||||||||||||||
2,019 | 264,481,000 | 264,481,000 | |||||||||||||||||||||||||||||||||||
2,020 | 172,060,000 | 172,060,000 | |||||||||||||||||||||||||||||||||||
2,021 | 457,412,000 | 457,412,000 | |||||||||||||||||||||||||||||||||||
Thereafter | 186,306,000 | 186,306,000 | |||||||||||||||||||||||||||||||||||
Long-term debt | $ 1,580,006,000 | $ 1,580,006,000 | $ 1,666,476,000 | ||||||||||||||||||||||||||||||||||
Three month dollar LIBOR rate (in hundredths) | 0.998% | 0.998% | 0.613% | 0.998% | 0.613% | ||||||||||||||||||||||||||||||||
Three month Norwegian kroner NIBOR rate (in hundredths) | 1.17% | 1.17% | 1.13% | 1.17% | 1.13% | ||||||||||||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (8,802,000) | $ 1,007,000 | $ (21,000) | ||||||||||||||||||||||||||||||||||
Equity component of convertible bond issuance due 2021 | $ 20,722,000 | $ (3,966,000) | 0 | 0 | |||||||||||||||||||||||||||||||||
Number of car carriers | carrier | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||
Book value of assets pledged under ship mortgages | $ 2,009,000,000 | $ 2,009,000,000 | 2,087,000,000 | ||||||||||||||||||||||||||||||||||
US Dollar 53.2 Million Secured Term Loan Facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 35,500,000 | 35,500,000 | 39,900,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 35,500,000 | 35,500,000 | 39,900,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 53,200,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||
Number of car carriers | carrier | 2 | ||||||||||||||||||||||||||||||||||||
US Dollar 45 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 36,000,000 | 36,000,000 | 36,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 36,000,000 | $ 36,000,000 | 36,000,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 45,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 7 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||
Number of container vessels | containership | 7 | ||||||||||||||||||||||||||||||||||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Interest rate | 3.25% | ||||||||||||||||||||||||||||||||||||
Maturity date of debt | Feb. 1, 2018 | ||||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 350,000,000 | ||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.945 | $ 14.3886 | $ 14.3886 | ||||||||||||||||||||||||||||||||||
Premium of conversion price to share price | 33.00% | ||||||||||||||||||||||||||||||||||||
Amount of debt repurchased | NOK | NOK 165,800,000 | NOK 0 | |||||||||||||||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (8,802,000) | 0 | 0 | ||||||||||||||||||||||||||||||||||
Common shares loaned to affiliate | shares | 6,060,606 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Related Party Share Loan Fee | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | NOK | NOK (8,500,000) | 0 | |||||||||||||||||||||||||||||||||||
NOK 900 Million Senior Unsecured Bonds [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 87,801,000 | $ 87,801,000 | 85,434,000 | NOK 758,000,000 | NOK 758,000,000 | ||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 87,801,000 | 87,801,000 | 85,434,000 | NOK 758,000,000 | 758,000,000 | ||||||||||||||||||||||||||||||||
Maturity date of debt | Mar. 19, 2019 | ||||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | NOK | NOK 900,000,000 | ||||||||||||||||||||||||||||||||||||
Amount of debt repurchased | NOK | NOK 142,000,000 | 142,000,000 | |||||||||||||||||||||||||||||||||||
Redemption price of debt (in hundredths) | 100.50% | ||||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 225,000,000 | 225,000,000 | 0 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 225,000,000 | $ 225,000,000 | 0 | ||||||||||||||||||||||||||||||||||
Interest rate | 5.75% | ||||||||||||||||||||||||||||||||||||
Maturity date of debt | Oct. 15, 2021 | ||||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 225,000,000 | ||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 17.2329 | $ 17.2329 | $ 17.7747 | ||||||||||||||||||||||||||||||||||
Debt Instrument, Related Party Share Loan Fee | $ 80,000 | $ 120,000 | |||||||||||||||||||||||||||||||||||
Equity component of convertible bond issuance due 2021 | $ 4,649,000 | ||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | $ 200,000 | 0 | |||||||||||||||||||||||||||||||||||
Shares issued on conversion of convertible debt | shares | 58.0285 | 58.0285 | 58.0285 | 56.2596 | |||||||||||||||||||||||||||||||||
Denomination of unsecured corporate bond | $ 1,000 | ||||||||||||||||||||||||||||||||||||
Minimum dividend before convertible debt rate is adjusted | $ / shares | $ 0.225 | ||||||||||||||||||||||||||||||||||||
Own-share Lending Arrangement, Shares, Outstanding | shares | 8,000,000 | ||||||||||||||||||||||||||||||||||||
Common Stock, Shares Loaned to Affiliate (in shares) | shares | 8,000,000 | 8,000,000 | 8,000,000 | 8,000,000 | |||||||||||||||||||||||||||||||||
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 0 | $ 0 | 117,500,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 0 | $ 117,500,000 | ||||||||||||||||||||||||||||||||||
Interest rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Maturity date of debt | Feb. 10, 2016 | ||||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 125,000,000 | ||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 16.61 | $ 27.05 | |||||||||||||||||||||||||||||||||||
Premium of conversion price to share price | 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% | ||||||||||||||||||||||||||||||||||||
Amount of debt repurchased | NOK | 7,500,000 | ||||||||||||||||||||||||||||||||||||
NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 65,445,000 | 65,445,000 | $ 63,681,000 | NOK 565,000,000 | 565,000,000 | ||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 65,445,000 | 65,445,000 | 63,681,000 | NOK 565,000,000 | NOK 565,000,000 | ||||||||||||||||||||||||||||||||
Maturity date of debt | Oct. 19, 2017 | ||||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | NOK | NOK 600,000,000 | ||||||||||||||||||||||||||||||||||||
Amount of debt repurchased | NOK | 43,000,000 | 43,000,000 | |||||||||||||||||||||||||||||||||||
Redemption price of debt (in hundredths) | 100.50% | ||||||||||||||||||||||||||||||||||||
Proceeds from resale of debt previous purchased | NOK | NOK 8,000,000 | NOK 8,000,000 | |||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 184,202,000 | 184,202,000 | 350,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 184,202,000 | 184,202,000 | 350,000,000 | ||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 1,017,558,000 | 1,017,558,000 | 1,049,861,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 1,017,558,000 | $ 1,017,558,000 | $ 1,049,861,000 | ||||||||||||||||||||||||||||||||||
Weighted average interest rate (in hundredths) | 4.20% | 4.20% | 4.22% | 4.20% | 4.22% | ||||||||||||||||||||||||||||||||
Number of vessels sold | vessel | 1 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 49 million secured term loan and revolving credit facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 0 | $ 0 | $ 8,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 0 | 8,000,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 49,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Number of new vessels acquired that were partly funded by secured term loan facility | tanker | 2 | ||||||||||||||||||||||||||||||||||||
Term of loan in years | 10 years | ||||||||||||||||||||||||||||||||||||
Available amount under revolving part of credit facility | 20,000,000 | 20,000,000 | 12,000,000 | ||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 43 million secured term loan facility (February 2010) [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 23,400,000 | 23,400,000 | 26,300,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 23,400,000 | 23,400,000 | 26,300,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 42,600,000 | ||||||||||||||||||||||||||||||||||||
Term of loan in years | 5 years | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 43 million secured term loan facility (March 2010) [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 23,400,000 | 23,400,000 | 26,300,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 23,400,000 | 23,400,000 | 26,300,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 42,600,000 | ||||||||||||||||||||||||||||||||||||
Term of loan in years | 5 years | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 54 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 30,200,000 | 30,200,000 | 34,100,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 30,200,000 | 30,200,000 | 34,100,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 53,700,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 8 years | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 95 million secured term loan and revolving credit facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 0 | 22,500,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 0 | 22,500,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 95,000,000 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 7 years | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 75 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 44,900,000 | 44,900,000 | 50,800,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 44,900,000 | 44,900,000 | 50,800,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 75,400,000 | ||||||||||||||||||||||||||||||||||||
Term of loan in years | 8 years | ||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 3 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 171 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 110,100,000 | 110,100,000 | 122,200,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 110,100,000 | 110,100,000 | 122,200,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 171,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 8 | ||||||||||||||||||||||||||||||||||||
Term of loan in years | 10 years | ||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | vessel | 7 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US Dollar 45 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Available amount under revolving part of credit facility | 9,000,000 | 9,000,000 | 9,000,000 | ||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 101 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 54,700,000 | 54,700,000 | 87,800,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 54,700,000 | $ 54,700,000 | 87,800,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 101,400,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 6 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||
Number of offshore supply vessels | vessel | 6 | ||||||||||||||||||||||||||||||||||||
Number of remaining vessels relating to loan facility | vessel | 5 | 5 | 5 | ||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 20 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 20,000,000 | $ 20,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||
Number of container vessels | containership | 2 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 128 million secured term loan facility (September 2014) [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 109,400,000 | 109,400,000 | 117,900,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 109,400,000 | 109,400,000 | 117,900,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 127,500,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 7 years | ||||||||||||||||||||||||||||||||||||
Number of container vessels | containership | 2 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 128 million secured term loan facility (November 2014) [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 112,600,000 | 112,600,000 | 121,100,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 112,600,000 | 112,600,000 | 121,100,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 127,500,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 7 years | ||||||||||||||||||||||||||||||||||||
Number of container vessels | containership | 2 | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 39 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 31,500,000 | 31,500,000 | 34,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 31,500,000 | 31,500,000 | $ 34,000,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 39,000,000 | $ 39,000,000 | |||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 8 years | ||||||||||||||||||||||||||||||||||||
Number of drybulk carriers | carrier | 2 | 2 | |||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 250 million secured revolving credit facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 40,000,000 | 40,000,000 | $ 73,500,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 40,000,000 | 40,000,000 | 73,500,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 250,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 17 | ||||||||||||||||||||||||||||||||||||
Available amount under revolving part of credit facility | $ 175,600,000 | $ 175,600,000 | 154,600,000 | ||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 17 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 3 years | ||||||||||||||||||||||||||||||||||||
Number of vessels sold | carrier | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||
Number of remaining vessels relating to loan facility | carrier | 13 | 13 | 13 | ||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 166 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 145,600,000 | $ 145,600,000 | 159,500,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 145,600,000 | 145,600,000 | 159,500,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 166,400,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 8 | ||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 8 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 7 years | ||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 210 million secured term loan facility (Maersk) [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Long-term debt | 200,200,000 | 200,200,000 | 70,000,000 | ||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 200,200,000 | $ 200,200,000 | 70,000,000 | ||||||||||||||||||||||||||||||||||
Term loan facility, principal amount | $ 210,000,000 | ||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 3 | ||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 3 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||
Number of vessels delivered | carrier | (1) | (2) | (2) | ||||||||||||||||||||||||||||||||||
Interest Expense [Member] | |||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | $ 3,400,000 | $ 4,100,000 |
OTHER LONG TERM LIABILITIES (De
OTHER LONG TERM LIABILITIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2014 | Dec. 31, 2016USD ($)vessel | Dec. 31, 2015USD ($)vessel | Oct. 31, 2015vessel | Dec. 31, 2013vessel | Dec. 31, 2007USD ($)vessel | |
Other Liabilities Disclosure [Abstract] | ||||||
Unamortized sellers' credit | $ 6,124 | $ 11,960 | ||||
Obligations under capital leases - long-term portion | 118,754 | 0 | ||||
Other items | 4 | 3 | ||||
Other long-term liabilities | $ 124,882 | $ 11,963 | ||||
Number of offshore supply vessels acquired | vessel | 6 | |||||
Seller's credit received | $ 37,000 | |||||
Related Party Transaction [Line Items] | ||||||
Number of container vessels contracted to be chartered in | vessel | 1 | 2 | 2 | |||
Term of lease or charter | 8 years | 15 years | 15 years | |||
Deep Sea Supply BTG [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of offshore supply vessels | vessel | 5 |
OTHER LONG TERM LIABILITIES Obl
OTHER LONG TERM LIABILITIES Obligations under Capital Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Obligations under Capital Lease [Abstract] | ||
2,017 | $ 12,527 | |
2,018 | 12,527 | |
2,019 | 12,527 | |
2,020 | 12,561 | |
2,021 | 12,527 | |
Thereafter | 151,993 | |
Total lease obligations | 214,662 | |
Less: imputed interest payable | (92,259) | |
Present value of obligations under capital lease | 122,403 | |
Less: current portion | (3,649) | $ 0 |
Obligations under capital lease - long-term portion | $ 118,754 | $ 0 |
SHARE CAPITAL, ADDITIONAL PAI78
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' Equity Note [Abstract] | |||||
Common shares, authorized | $ 1,500,000 | $ 125,000,000 | |||
Common shares, authorized (in shares) | 150,000,000 | 125,000,000 | |||
Share capital, par value (in dollars per share) | $ 0.01 | $ 1 | $ 1 | ||
Common shares, issued | $ 1,015,000 | $ 93,468,000 | |||
Common shares, issued (in shares) | 101,504,575 | 93,468,000 | 93,404,000 | 93,260,000 |
SHARE CAPITAL, ADDITIONAL PAI79
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Narrative) (Details) $ / shares in Units, NOK in Millions | Jan. 30, 2013 | Oct. 31, 2016USD ($) | Jan. 31, 2013USD ($)$ / shares | Dec. 31, 2016NOK | Jun. 30, 2015USD ($) | Sep. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)employee$ / sharesshares | Dec. 31, 2015USD ($)employee$ / sharesshares | Dec. 31, 2015NOKemployeeshares | Dec. 31, 2014USD ($) | Nov. 30, 2016shares | Oct. 05, 2016USD ($)$ / sharesshares |
Stockholders' Equity Note [Abstract] | ||||||||||||
Options exercised (in shares) | shares | 36,575 | 64,000 | 64,000 | |||||||||
Share capital, par value (in dollars per share) | $ / shares | $ 1 | $ 0.01 | $ 1 | |||||||||
Number of officers who exercised options | employee | 2 | 2 | 2 | |||||||||
Number of employees exercising options | employee | 3 | 3 | 3 | |||||||||
Exercised share price (in dollars per share) | $ / shares | $ 12.11 | $ 10.55 | ||||||||||
Premium on stock options exercised | $ 200,000 | $ 600,000 | ||||||||||
Share Capital, shares authorized | shares | 150,000,000 | 125,000,000 | ||||||||||
Share Capital, shares issued | shares | 93,504,575 | 101,504,575 | 93,468,000 | |||||||||
Share Capital Details | ||||||||||||
Equity component of convertible bond issuance due 2021 | $ 20,722,000 | $ (3,966,000) | $ 0 | $ 0 | ||||||||
Amortization of deferred equity contributions | $ 2,044,000 | $ 0 | 2,044,000 | 4,520,000 | ||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | ||||||||||||
Share Capital Details | ||||||||||||
Debt amount | $ 225,000,000 | |||||||||||
Common Stock, Shares Loaned to Affiliate (in shares) | shares | 8,000,000 | 8,000,000 | ||||||||||
Maturity date of debt | Oct. 15, 2021 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 17.2329 | $ 17.7747 | ||||||||||
Equity component of convertible bond issuance due 2021 | $ 4,649,000 | |||||||||||
Shares issued on conversion of convertible debt | shares | 58.0285 | 56.2596 | ||||||||||
Denomination of unsecured corporate bond | $ 1,000 | |||||||||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||||||||||
Share Capital Details | ||||||||||||
Debt amount | $ 350,000,000 | |||||||||||
Maturity date of debt | Feb. 1, 2018 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.945 | $ 14.3886 | ||||||||||
Premium of conversion price to share price | 33.00% | |||||||||||
Repayments of Debt | NOK | NOK 165.8 | NOK 0 | ||||||||||
Write off of Deferred Debt Issuance Cost | NOK | NOK 8.5 | NOK 0 | ||||||||||
Contributed surplus | ||||||||||||
Share Capital Details | ||||||||||||
Transfer arising from reduction in par value of issued shares | $ 92,570,000 | 0 | 0 | |||||||||
Amortization of deferred equity contributions | $ 0 | $ 2,044,000 | $ 4,520,000 |
SHARE OPTION PLAN (Details)
SHARE OPTION PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share options [Roll Forward] | |||
Options exercised (in shares) | (36,575) | (64,000) | |
Weighted average assumptions used to calculate fair value of options [Abstract] | |||
Risk free interest rate | 1.08% | ||
Expected share price volatility | 31.27% | ||
Expected dividend yield | 0.00% | ||
Expected life of options (in years) | 3 years 6 months | ||
Weighted average fair value of options granted (in dollars per share) | $ 3.06 | $ 0 | $ 0 |
Other disclosures [Abstract] | |||
Total intrinsic value of options exercised during the period | $ 300,000 | $ 300,000 | $ 2,900,000 |
Unrecognized compensation costs, period of recognition | 2 years 2 months 21 days | ||
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) | 125,000 | 189,000 | 423,000 |
Granted (in shares) | 279,000 | 0 | 0 |
Options exercised (in shares) | (125,000) | (64,000) | (224,000) |
Forfeited (in shares) | 0 | 0 | (10,000) |
Options outstanding at end of year (in shares) | 279,000 | 125,000 | 189,000 |
Exercisable at end of year (in shares) | 0 | 125,000 | 189,000 |
Weighted average exercise price [Abstract] | |||
Options outstanding at beginning of year (in dollars per share) | $ 12.56 | $ 13.17 | $ 9.99 |
Granted (in dollars per share) | 14.38 | 0 | 0 |
Exercised (in dollars per share) | 12.11 | 10.55 | 5.41 |
Forfeited (in dollars per share) | 0 | 0 | 5.56 |
Options outstanding at end of year (in dollars per share) | 13.03 | 12.56 | 13.17 |
Exercisable at end of year (in dollars per share) | $ 0 | $ 12.56 | $ 13.17 |
Other disclosures [Abstract] | |||
Unrecognized compensation costs related to non-vested options granted | $ 461,600 | $ 0 | |
Intrinsic value | 500,000 | ||
Compensation cost recognized during the period | $ 403,000 | $ 0 | $ 29,000 |
New Options Granted During The Year [Member] | |||
Weighted average assumptions used to calculate fair value of options [Abstract] | |||
Expected life of options (in years) | 5 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) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 42 Months Ended | |||||||||||||||||||||
Feb. 29, 2016USD ($) | Jun. 30, 2015USD ($)vesselRateshares | Nov. 30, 2014USD ($)vessel | Jan. 31, 2012 | Dec. 31, 2016USD ($)vesselshares | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Jun. 30, 2016Rate | Jun. 30, 2015USD ($)vesselRateshares | Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($)vesselcarriertankershares | Dec. 31, 2015USD ($)vessel | Dec. 31, 2014USD ($)vessel | Dec. 31, 2011USD ($)vessel | Jun. 30, 2015USD ($)vesselRate | Nov. 30, 2016USD ($)shares | Oct. 05, 2016USD ($)shares | Nov. 30, 2015Rate | Jun. 05, 2015vessel | Dec. 31, 2013vessel | Oct. 31, 2013USD ($) | May 31, 2013USD ($) | |
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | $ 17,519,000 | $ 17,519,000 | $ 45,659,000 | |||||||||||||||||||||||
Loans to related parties which are associates | 330,087,000 | 330,087,000 | 387,712,000 | |||||||||||||||||||||||
Loans to related parties - others, long-term | 9,268,000 | 9,268,000 | 0 | |||||||||||||||||||||||
Due to related parties | $ 850,000 | $ 850,000 | $ 416,000 | |||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 14 | 14 | 16 | |||||||||||||||||||||||
Number of VLCCs held for sale | vessel | 1 | 1 | ||||||||||||||||||||||||
Vessels and equipment, net | $ 1,737,169,000 | $ 1,737,169,000 | $ 1,641,317,000 | |||||||||||||||||||||||
Assets Held-for-sale | 24,097,000 | 24,097,000 | 0 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Direct financing lease interest income | 22,850,000 | 34,193,000 | $ 45,363,000 | |||||||||||||||||||||||
Finance lease service revenue | 44,523,000 | 46,460,000 | 46,488,000 | |||||||||||||||||||||||
Profit sharing revenues | $ 51,470,000 | $ 59,607,000 | 33,756,000 | |||||||||||||||||||||||
Time charter rate for VLCCs from July 1 2015 onwards | $ 20,000 | |||||||||||||||||||||||||
Time charter rate for Suezmax tankers from July 1 2015 onwards | 15,000 | |||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 55,000,000 | |||||||||||||||||||||||||
Profit sharing percent of earnings from Frontline from July 1 2015 onwards | 50.00% | |||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | $ 49,200,000 | |||||||||||||||||||||||||
Term of lease/charter (in years) | 8 years | 15 years | 15 years | |||||||||||||||||||||||
Notes receivable, related parties | $ 48,400,000 | 83,800,000 | $ 83,800,000 | |||||||||||||||||||||||
Gain on redemption of loan notes from related parties | 0 | $ 28,904,000 | 0 | |||||||||||||||||||||||
Compensation received on termination of charters, cash | 10,500,000 | |||||||||||||||||||||||||
Compensation received on termination of charters, notes receivable | $ 38,700,000 | |||||||||||||||||||||||||
Proceeds from redemption of loan notes including interest | 0 | 113,200,000 | 0 | |||||||||||||||||||||||
Accrued interest included with loan note redemption | 0 | 500,000 | 0 | |||||||||||||||||||||||
Management fees paid, vessels | $ 67,221,000 | 56,939,000 | 49,170,000 | |||||||||||||||||||||||
Commission percentage paid on chartering revenues | 1.25% | |||||||||||||||||||||||||
Administrative expenses - related parties | $ 1,443,000 | 1,032,000 | 965,000 | |||||||||||||||||||||||
Related party loans [Abstract] | ||||||||||||||||||||||||||
Interest income, related party loans | 18,675,000 | 18,672,000 | 24,464,000 | |||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | ||||||||||||||||||||||||||
Cost of Drybulk Carriers | 272,000,000 | |||||||||||||||||||||||||
Number of years charter may be extended | 3 years | |||||||||||||||||||||||||
Related party purchases and sales of vessels [Abstract] | ||||||||||||||||||||||||||
Gain on disposal of investment in equity method investee | 0 | 0 | 6,055,000 | |||||||||||||||||||||||
Amortized cost | 197,449,000 | 197,449,000 | 185,148,000 | |||||||||||||||||||||||
Deep Sea and Deep Sea Supply BTG [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | 1,945,000 | 1,945,000 | 0 | |||||||||||||||||||||||
SFL Linus [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | 700,000 | 700,000 | 23,152,000 | |||||||||||||||||||||||
Frontline Charterers, Seadrill, Deep Sea and UFC [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Operating lease income | 65,300,000 | 42,900,000 | 26,400,000 | |||||||||||||||||||||||
Direct financing lease interest income | 22,900,000 | 34,200,000 | 45,400,000 | |||||||||||||||||||||||
Finance lease service revenue | 44,500,000 | 46,500,000 | 46,500,000 | |||||||||||||||||||||||
Direct financing lease repayments | 30,300,000 | 35,900,000 | 43,100,000 | |||||||||||||||||||||||
Profit sharing revenues | 51,500,000 | 59,600,000 | 33,800,000 | |||||||||||||||||||||||
Frontline Charterers [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | 11,906,000 | 11,906,000 | 18,052,000 | |||||||||||||||||||||||
Due to related parties | $ 229,000 | $ 229,000 | 229,000 | |||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 17 | 12 | 17 | 12 | 28 | 17 | 14 | |||||||||||||||||||
Assets Held-for-sale | $ 24,100,000 | $ 24,100,000 | 0 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Profit sharing revenues | 0 | 0 | $ 0 | |||||||||||||||||||||||
Compensation payment received | 150,000,000 | $ 106,000,000 | ||||||||||||||||||||||||
Number of vessels sold | vessel | 3 | 11 | 2 | |||||||||||||||||||||||
Agreed temporary reduction in daily time charter rates | $ 6,500 | |||||||||||||||||||||||||
Number of charters transferred to new charterer | vessel | 3 | |||||||||||||||||||||||||
Cash reserve per vessel | $ 2,000,000 | 2,000,000 | $ 2,000,000 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Period of temporary reduction in daily time charter rates | 4 years | |||||||||||||||||||||||||
Maximum daily amount to which temporary earnings-related 100% payment applies | 6,500 | |||||||||||||||||||||||||
Due from related parties | 11,900,000 | 11,900,000 | 18,100,000 | |||||||||||||||||||||||
Frontline reverse stock split [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 11,000,000 | |||||||||||||||||||||||||
United Freight Carriers Inc [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | $ 0 | $ 0 | 1,639,000 | |||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 6 | 6 | ||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Profit sharing revenues | $ 600,000 | 2,500,000 | $ 1,100,000 | |||||||||||||||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 50.00% | |||||||||||||||||||||||||
Frontline Ltd [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | $ 3,008,000 | $ 3,008,000 | 2,816,000 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Investment Income, Dividend | 11,550,000 | |||||||||||||||||||||||||
Stated interest rate | 7.25% | |||||||||||||||||||||||||
Frontline Shipping and Frontline Shipping II [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Profit sharing revenues | 0 | 19,900,000 | 32,700,000 | |||||||||||||||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 100.00% | |||||||||||||||||||||||||
Profit share income from July 1 2015 onwards | $ 50,900,000 | $ 37,300,000 | $ 0 | |||||||||||||||||||||||
Frontline Management [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due to related parties | 493,000 | $ 493,000 | 143,000 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Number of container vessels operating on time charter, for which part or all management supervision was sub-contracted to a related party | vessel | 9 | |||||||||||||||||||||||||
Number of drybulk carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | carrier | 14 | |||||||||||||||||||||||||
Number of crude oil tankers | tanker | 2 | |||||||||||||||||||||||||
Number of car carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | carrier | 2 | |||||||||||||||||||||||||
Management fees paid, vessels | $ 45,900,000 | 48,000,000 | 48,400,000 | |||||||||||||||||||||||
Commissions paid for sales-type leases on Suezmax tankers | 400,000 | 400,000 | 300,000 | |||||||||||||||||||||||
Administrative expenses - related parties | 600,000 | 500,000 | 500,000 | |||||||||||||||||||||||
Management fees paid, supervision of newbuildings | 0 | 100,000 | 2,900,000 | |||||||||||||||||||||||
Seatankers Management [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Management fees paid, provision of office facilities | 300,000 | |||||||||||||||||||||||||
Seatankers [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due to related parties | 79,000 | 79,000 | 0 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Administrative expenses - related parties | 0 | $ 0 | 300,000 | |||||||||||||||||||||||
Other related parties [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due to related parties | 49,000 | 49,000 | 44,000 | |||||||||||||||||||||||
Golar Management UK Limited [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Management fees paid, provision of office facilities | $ 100,000 | |||||||||||||||||||||||||
Frontline Charterers, Deep Sea and Seadrill [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Combined balance of net investments in direct financing leases | 411,100,000 | 411,100,000 | 511,400,000 | |||||||||||||||||||||||
Combined balance of net investments in direct financing leases, short-term maturities | 28,900,000 | 28,900,000 | 37,100,000 | |||||||||||||||||||||||
Vessels and equipment, net | 328,600,000 | 328,600,000 | 499,600,000 | |||||||||||||||||||||||
Deep Sea [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Loans to related parties - others, long-term | $ 9,268,000 | $ 9,268,000 | $ 0 | |||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 1 | 1 | 2 | |||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 4 | 4 | ||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Profit sharing revenues | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | Rate | 50.00% | |||||||||||||||||||||||||
Stated interest rate | 7.25% | |||||||||||||||||||||||||
Compensation received on termination of charters, notes receivable | $ 11,600,000 | |||||||||||||||||||||||||
Notes Compensation Received on Termination of Charters, Face Value | $ 14,600,000 | |||||||||||||||||||||||||
Number of offshore supply vessels | vessel | 5 | |||||||||||||||||||||||||
Extension of charter period | 3 years | |||||||||||||||||||||||||
Frontline Management AS [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Management fees paid, provision of office facilities | $ 400,000 | $ 400,000 | ||||||||||||||||||||||||
Frontline Corporate Services [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Management fees paid, provision of office facilities | 200,000 | |||||||||||||||||||||||||
Arcadia Petroleum Limited [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Management fees paid, provision of office facilities | 100,000 | |||||||||||||||||||||||||
Frontline Management and Frontline Management AS [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due to related parties | $ 500,000 | 500,000 | 100,000 | |||||||||||||||||||||||
SFL West Polaris and SFL Deepwater [Member] | ||||||||||||||||||||||||||
Related party loans [Abstract] | ||||||||||||||||||||||||||
Interest income, related party loans | $ 18,700,000 | |||||||||||||||||||||||||
Golden Ocean [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 8 | 8 | ||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Profit sharing revenues | $ 0 | 0 | 0 | |||||||||||||||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 33.00% | |||||||||||||||||||||||||
Term of lease/charter (in years) | 10 years | |||||||||||||||||||||||||
Number of container vessels operating on time charter, for which part or all management supervision was sub-contracted to a related party | vessel | 9 | |||||||||||||||||||||||||
Number of drybulk carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | carrier | 14 | |||||||||||||||||||||||||
Management fees paid, vessels | $ 21,300,000 | 9,000,000 | 800,000 | |||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | ||||||||||||||||||||||||||
Cost of Drybulk Carriers | 272,000,000 | |||||||||||||||||||||||||
Time charter rate for Capesize drybulk carriers for first 7 years | 17,600 | |||||||||||||||||||||||||
Number of years before time charter rate is reduced | 7 years | |||||||||||||||||||||||||
Time charter rates for Capesize drybulk carriers after 7 years | 14,900 | |||||||||||||||||||||||||
NorAm Drilling [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 12,000,000 | |||||||||||||||||||||||||
Related party purchases and sales of vessels [Abstract] | ||||||||||||||||||||||||||
Amortized cost | $ 700,000 | 700,000 | ||||||||||||||||||||||||
Available-for-sale Securities, Debt Securities | 5,700,000 | 5,700,000 | ||||||||||||||||||||||||
Interest and Dividend Income, Securities, Operating, Available-for-sale | 500,000 | 600,000 | 700,000 | |||||||||||||||||||||||
Frontline Ltd [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Ownership percentage | Rate | 27.73% | 27.73% | 27.73% | 7.03% | ||||||||||||||||||||||
SFL West Polaris [Member] | ||||||||||||||||||||||||||
Related party loans [Abstract] | ||||||||||||||||||||||||||
Loans advanced to related parties | 145,000,000 | 145,000,000 | ||||||||||||||||||||||||
Interest income, related party loans | 0 | 0 | 6,500,000 | |||||||||||||||||||||||
SFL Deepwater [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Loans to related parties which are associates | 119,167,000 | 119,167,000 | 137,437,000 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Debt amount | $ 390,000,000 | |||||||||||||||||||||||||
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 Hercules [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Loans to related parties which are associates | 85,920,000 | 85,920,000 | 125,275,000 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Debt amount | $ 375,000,000 | |||||||||||||||||||||||||
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 Linus [Member] | ||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | ||||||||||||||||||||||||||
Due from related parties | 660,000 | 660,000 | 23,152,000 | |||||||||||||||||||||||
Loans to related parties which are associates | 125,000,000 | 125,000,000 | 125,000,000 | |||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Debt amount | $ 475,000,000 | |||||||||||||||||||||||||
Related party loans [Abstract] | ||||||||||||||||||||||||||
Loans advanced to related parties | 125,000,000 | 125,000,000 | ||||||||||||||||||||||||
Interest income, related party loans | 5,600,000 | 5,600,000 | $ 4,900,000 | |||||||||||||||||||||||
Sale of offshore support vessel Sea Bear [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Term of lease/charter (in years) | 6 years | |||||||||||||||||||||||||
Sale of VLCC Front Vanguard [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 300,000 | |||||||||||||||||||||||||
Sale of Suezmax tanker Front Glory [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 2,200,000 | |||||||||||||||||||||||||
Sale of Suezmax tanker Front Splendour [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 1,300,000 | |||||||||||||||||||||||||
Sale of Suezmax tanker Mindanao [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 3,300,000 | |||||||||||||||||||||||||
Loan Notes [Member] | Deep Sea [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Short-term portion of loan notes receivable with related parties | $ 1,400,000 | 1,400,000 | $ 0 | |||||||||||||||||||||||
Vessels Leased to Frontline Charterers [Member] | Frontline Management [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Related Party Transactions Daily Vessel Management Fee | 9,000 | |||||||||||||||||||||||||
Daily vessel management fee before July 1 2015 | $ 6,500 | |||||||||||||||||||||||||
Golden Ocean [Member] | Golden Ocean Management [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Related Party Transactions Daily Vessel Management Fee | $ 7,000 | |||||||||||||||||||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | ||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | ||||||||||||||||||||||||||
Debt amount | $ 225,000,000 | |||||||||||||||||||||||||
Own-share Lending Arrangement, Shares, Outstanding | shares | 8,000,000 | |||||||||||||||||||||||||
Debt Instrument, Related Party Share Loan Fee | $ 80,000 | $ 120,000 | ||||||||||||||||||||||||
Own-share Lending Arrangement, Shares, Issued | shares | 8,000,000 | 8,000,000 | 8,000,000 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Financial instruments (short-term): at fair value | $ 39,309 | $ 0 |
Liabilities | 61,456 | 113,642 |
Financial instruments (short-term): at fair value | 110 | 0 |
Assets | 6,042 | 800 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Financial instruments (short-term): at fair value | 0 | 0 |
Liabilities | 10,134 | 11,458 |
Financial instruments (short-term): at fair value | 110 | 0 |
Assets | 4,540 | 487 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Financial instruments (short-term): at fair value | 0 | 0 |
Liabilities | 1,388 | 2,897 |
Assets | 1,502 | 313 |
Cross Currency Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Financial instruments (short-term): at fair value | 37,101 | 0 |
Liabilities | 41,716 | 87,642 |
Cross Currency Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Financial instruments (short-term): at fair value | 2,208 | 0 |
Liabilities | $ 8,218 | $ 11,645 |
FINANCIAL INSTRUMENTS (Interest
FINANCIAL INSTRUMENTS (Interest Rate Risk Management) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2016NOK | Dec. 31, 2015USD ($) | Mar. 19, 2014NOK | Oct. 31, 2012NOK | ||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 1,027,300 | $ 804,800 | ||||
NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Debt amount | NOK | NOK 600,000,000 | |||||
NOK 900 Million Senior Unsecured Bonds [Member] | ||||||
Derivative [Line Items] | ||||||
Debt amount | NOK | NOK 900,000,000 | |||||
Designated as Hedging Instrument [Member] | $28,680 (reducing to $24,794) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 36,972 | |||||
Notional principal, at maturity | $ 24,794 | |||||
Inception date | Mar. 31, 2008 | |||||
Maturity date | Aug. 31, 2018 | |||||
Designated as Hedging Instrument [Member] | $28,680 (reducing to $24,794) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 4.05% | 4.05% | ||||
Designated as Hedging Instrument [Member] | $28,680 (reducing to $24,794) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 4.15% | 4.15% | ||||
Designated as Hedging Instrument [Member] | $30,233 (reducing to $23,394) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 41,956 | |||||
Notional principal, at maturity | $ 23,394 | |||||
Inception date | Apr. 30, 2011 | |||||
Maturity date | Dec. 31, 2018 | |||||
Designated as Hedging Instrument [Member] | $30,233 (reducing to $23,394) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 2.13% | 2.13% | ||||
Designated as Hedging Instrument [Member] | $30,233 (reducing to $23,394) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 2.80% | 2.80% | ||||
Designated as Hedging Instrument [Member] | $44,873 (reducing to $34,044) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 62,535 | |||||
Notional principal, at maturity | $ 34,044 | |||||
Inception date | May 31, 2011 | |||||
Maturity date | Jan. 31, 2019 | |||||
Designated as Hedging Instrument [Member] | $44,873 (reducing to $34,044) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 0.80% | 0.80% | ||||
Designated as Hedging Instrument [Member] | $44,873 (reducing to $34,044) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 2.58% | 2.58% | ||||
Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 100,000 | |||||
Notional principal, at maturity | $ 100,000 | |||||
Inception date | Aug. 31, 2011 | |||||
Maturity date | Aug. 31, 2021 | |||||
Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 2.50% | 2.50% | ||||
Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 2.93% | 2.93% | ||||
Designated as Hedging Instrument [Member] | $145,667 (terminating at $79,733) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 154,100 | |||||
Notional principal, at maturity | $ 79,733 | |||||
Inception date | May 31, 2012 | |||||
Maturity date | Aug. 31, 2022 | |||||
Designated as Hedging Instrument [Member] | $145,667 (terminating at $79,733) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.76% | 1.76% | ||||
Designated as Hedging Instrument [Member] | $145,667 (terminating at $79,733) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.85% | 1.85% | ||||
Designated as Hedging Instrument [Member] | $105,436 (equivalent to NOK600 million) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | [1] | $ 105,436 | NOK 600,000,000 | |||
Inception date | [1] | Oct. 31, 2012 | ||||
Maturity date | [1] | Oct. 31, 2017 | ||||
Designated as Hedging Instrument [Member] | $105,436 (equivalent to NOK600 million) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | [1] | 5.92% | 5.92% | |||
Designated as Hedging Instrument [Member] | $105,436 (equivalent to NOK600 million) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | [1] | 6.23% | 6.23% | |||
Designated as Hedging Instrument [Member] | $35,467 (reducing to $32,142) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 48,767 | |||||
Notional principal, at maturity | $ 32,142 | |||||
Inception date | Feb. 28, 2013 | |||||
Maturity date | Dec. 31, 2017 | |||||
Designated as Hedging Instrument [Member] | $35,467 (reducing to $32,142) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 0.81% | 0.81% | ||||
Designated as Hedging Instrument [Member] | $35,467 (reducing to $32,142) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 0.82% | 0.82% | ||||
Designated as Hedging Instrument [Member] | $151,008 (equivalent to NOK900 million) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | [1] | $ 151,008 | NOK 900,000,000 | |||
Inception date | [1] | Mar. 19, 2014 | ||||
Maturity date | [1] | Mar. 19, 2019 | ||||
Fixed Interest Rate | 6.03% | 6.03% | ||||
Designated as Hedging Instrument [Member] | $108,375 (reducing to $70,125) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 108,375 | |||||
Notional principal, at maturity | $ 70,125 | |||||
Inception date | Dec. 28, 2016 | |||||
Maturity date | Dec. 27, 2021 | |||||
Derivative instrument, notional principal with future inception date | $ 54,188 | |||||
Designated as Hedging Instrument [Member] | $108,375 (reducing to $70,125) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.86% | 1.86% | ||||
Designated as Hedging Instrument [Member] | $108,375 (reducing to $70,125) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 3.33% | 3.33% | ||||
Designated as Hedging Instrument [Member] | $110,500 (reducing to $70,125) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 110,500 | |||||
Notional principal, at maturity | $ 70,125 | |||||
Inception date | Jan. 6, 2017 | |||||
Maturity date | Jan. 6, 2022 | |||||
Designated as Hedging Instrument [Member] | $110,500 (reducing to $70,125) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.56% | 1.56% | ||||
Designated as Hedging Instrument [Member] | $110,500 (reducing to $70,125) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 3.09% | 3.09% | ||||
Designated as Hedging Instrument [Member] | $31,547 (reducing to $19,413) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 31,547 | |||||
Notional principal, at maturity | $ 19,413 | |||||
Inception date | Sep. 21, 2015 | |||||
Maturity date | Mar. 21, 2022 | |||||
Fixed Interest Rate | 1.67% | 1.67% | ||||
Designated as Hedging Instrument [Member] | $31,547 (reducing to $19,413) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.67% | 1.67% | ||||
Designated as Hedging Instrument [Member] | $31,547 (reducing to $19,413) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.67% | 1.67% | ||||
Designated as Hedging Instrument [Member] | $200,156 (reducing to $149,844) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 200,156 | |||||
Notional principal, at maturity | $ 149,844 | |||||
Inception date | Feb. 23, 2016 | |||||
Maturity date | Feb. 4, 2021 | |||||
Designated as Hedging Instrument [Member] | $200,156 (reducing to $149,844) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.07% | 1.07% | ||||
Designated as Hedging Instrument [Member] | $200,156 (reducing to $149,844) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.26% | 1.26% | ||||
Not Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 100,000 | |||||
Notional principal, at maturity | $ 100,000 | |||||
Inception date | Mar. 31, 2013 | |||||
Maturity date | Apr. 30, 2023 | |||||
Not Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.85% | 1.85% | ||||
Not Designated as Hedging Instrument [Member] | $100,000 (remaining at $100,000) | Maximum [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed Interest Rate | 1.97% | 1.97% | ||||
[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 (Foreign
FINANCIAL INSTRUMENTS (Foreign Currency Risk Management) (Details) - NOK | 12 Months Ended | |||
Dec. 31, 2016 | Mar. 19, 2014 | Oct. 31, 2012 | ||
NOK 600 million senior unsecured floating rate bonds due 2017 [Member] | ||||
Derivative [Line Items] | ||||
Debt amount | NOK 600,000,000 | |||
NOK 900 Million Senior Unsecured Bonds [Member] | ||||
Derivative [Line Items] | ||||
Debt amount | NOK 900,000,000 | |||
Designated as Hedging Instrument [Member] | $105,436 (equivalent to NOK600 million) | ||||
Derivative [Line Items] | ||||
Inception date | [1] | Oct. 31, 2012 | ||
Maturity date | [1] | Oct. 31, 2017 | ||
Designated as Hedging Instrument [Member] | $151,008 (equivalent to NOK900 million) | ||||
Derivative [Line Items] | ||||
Inception date | [1] | Mar. 19, 2014 | ||
Maturity date | [1] | Mar. 19, 2019 | ||
[1] | These swaps relate to the NOK600 million and the NOK900 million unsecured bonds, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. For the remaining swaps the fixed interest rate paid is exchanged for LIBOR, excluding margin on the underlying loans. |
FINANCIAL INSTRUMENTS (Fair Val
FINANCIAL INSTRUMENTS (Fair Value and Carrying Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Non-derivatives: | ||
Available-for-sale securities | $ 118,489 | $ 199,594 |
Floating rate NOK bonds due 2017 | 65,955 | 63,719 |
Floating Rate NOK Bonds due 2019 | 86,026 | 79,549 |
Unsecured convertible bonds | 224,366 | |
Derivatives: | ||
Swap contracts short term receivables fair value disclosure | 110 | |
Interest rate/ currency swap contracts – long-term receivables | 6,042 | 800 |
Interest rate/ currency swap contracts – short-term payables | 39,309 | |
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 |
Long term receivables, non-designated swap contracts | 1,500 | 300 |
Long term payables, non-designated swap contracts | 9,600 | 14,500 |
Carrying Value [Member] | ||
Non-derivatives: | ||
Available-for-sale securities | 118,489 | 199,594 |
Floating rate NOK bonds due 2017 | 65,445 | 63,681 |
Floating Rate NOK Bonds due 2019 | 87,801 | 85,434 |
Derivatives: | ||
Swap contracts short term receivables fair value disclosure | 110 | 0 |
Interest rate/ currency swap contracts – long-term receivables | 6,042 | 800 |
Interest rate/ currency swap contracts – short-term payables | 39,309 | 0 |
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 |
Fair Value [Member] | ||
Non-derivatives: | ||
Available-for-sale securities | 118,489 | 199,594 |
Floating rate NOK bonds due 2017 | 65,955 | 63,719 |
Floating Rate NOK Bonds due 2019 | 86,026 | 79,549 |
Derivatives: | ||
Swap contracts short term receivables fair value disclosure | 110 | 0 |
Interest rate/ currency swap contracts – long-term receivables | 6,042 | 800 |
Interest rate/ currency swap contracts – short-term payables | 39,309 | 0 |
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 118,021 | |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | Carrying Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 0 | 117,500 |
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | Fair Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 0 | 118,021 |
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 201,206 | |
Senior Unsecured Convertible Bonds Due 2018 [Member] | Carrying Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 184,202 | 350,000 |
Senior Unsecured Convertible Bonds Due 2018 [Member] | Fair Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 201,206 | 378,315 |
Senior Unsecured Convertible Bonds due 2021 [Member] | Carrying Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 225,000 | 0 |
Senior Unsecured Convertible Bonds due 2021 [Member] | Fair Value [Member] | ||
Non-derivatives: | ||
Unsecured convertible bonds | 224,366 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives: | ||
Interest rate/ currency swap contracts – short-term payables | $ 2,200 | $ 0 |
FINANCIAL INSTRUMENTS (Fair V86
FINANCIAL INSTRUMENTS (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Oct. 05, 2016 | Dec. 31, 2015 | Jan. 31, 2013 | Feb. 10, 2011 |
Assets: | |||||
Available-for-sale securities | $ 118,489 | $ 199,594 | |||
Swap contracts short term receivables fair value disclosure | 110 | ||||
Interest rate/currency swap contracts - long term receivables | 6,042 | 800 | |||
Total assets | 124,641 | 200,394 | |||
Liabilities: | |||||
Floating rate NOK bonds due 2017 | 65,955 | 63,719 | |||
Floating Rate NOK Bonds due 2019 | 86,026 | 79,549 | |||
Unsecured convertible bonds | 224,366 | ||||
Interest rate/ currency swap contracts – short-term payables | 39,309 | ||||
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 | |||
Total liabilities | 678,318 | 753,246 | |||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||
Liabilities: | |||||
Interest rate | 3.25% | ||||
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||||
Liabilities: | |||||
Interest rate | 3.75% | ||||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||||
Liabilities: | |||||
Interest rate | 5.75% | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | |||||
Assets: | |||||
Available-for-sale securities | 118,489 | 199,594 | |||
Total assets | 118,489 | 199,594 | |||
Liabilities: | |||||
Floating rate NOK bonds due 2017 | 65,955 | 63,719 | |||
Floating Rate NOK Bonds due 2019 | 86,026 | 79,549 | |||
Total liabilities | 577,553 | 639,604 | |||
Significant Other Observable Inputs (Level 2) [Member] | Recurring Basis [Member] | |||||
Assets: | |||||
Swap contracts short term receivables fair value disclosure | 110 | ||||
Interest rate/currency swap contracts - long term receivables | 6,042 | 800 | |||
Total assets | 6,152 | 800 | |||
Liabilities: | |||||
Interest rate/ currency swap contracts – short-term payables | 39,309 | ||||
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 | |||
Total liabilities | 100,765 | 113,642 | |||
Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | |||||
Assets: | |||||
Available-for-sale securities | 0 | ||||
Total assets | 0 | 0 | |||
Liabilities: | |||||
Total liabilities | 0 | 0 | |||
3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | 118,021 | ||||
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 | 118,021 | ||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | 201,206 | ||||
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 | 201,206 | 378,315 | |||
Senior Unsecured Convertible Bonds due 2021 [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | 224,366 | ||||
Estimate of Fair Value Measurement [Member] | |||||
Assets: | |||||
Available-for-sale securities | 118,489 | 199,594 | |||
Swap contracts short term receivables fair value disclosure | 110 | 0 | |||
Interest rate/currency swap contracts - long term receivables | 6,042 | 800 | |||
Liabilities: | |||||
Floating rate NOK bonds due 2017 | 65,955 | 63,719 | |||
Floating Rate NOK Bonds due 2019 | 86,026 | 79,549 | |||
Interest rate/ currency swap contracts – short-term payables | 39,309 | 0 | |||
Interest rate/ currency swap contracts – long-term payables | 61,456 | 113,642 | |||
Estimate of Fair Value Measurement [Member] | 3.75% Senior Unsecured Convertible Bonds Due 2016 [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | 0 | 118,021 | |||
Estimate of Fair Value Measurement [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | 201,206 | 378,315 | |||
Estimate of Fair Value Measurement [Member] | Senior Unsecured Convertible Bonds due 2021 [Member] | |||||
Liabilities: | |||||
Unsecured convertible bonds | $ 224,366 | $ 0 |
FINANCIAL INSTRUMENTS (Concentr
FINANCIAL INSTRUMENTS (Concentrations of Risk) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Loans to related parties which are associates | $ 330,087 | $ 387,712 | |
Frontline Charterers [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 28.00% | 33.00% | 37.00% |
Seadrill [Member] | Comprehensive Income [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 31.72001% | 24.73361% | 46.65391% |
Seadrill [Member] | |||
Concentration Risk [Line Items] | |||
Term loan facility, amount guaranteed | $ 240,000 | ||
Loans to related parties which are associates | $ 330,747 |
COMMITMENTS AND CONTINGENT LI88
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Dec. 31, 2016USD ($)vessel | Dec. 31, 2015USD ($)vessel | Oct. 31, 2015vessel | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Book value of assets pledged under ship mortgages | $ 2,009,000 | $ 2,087,000 | ||
Related Party Transaction [Line Items] | ||||
Loans to related parties which are associates | 330,087 | 387,712 | ||
Contractual commitments under newbuilding contracts | $ 76,100 | $ 261,900 | ||
Number of container vessels contracted to be chartered in | vessel | 1 | 2 | 2 | |
Term of lease or charter | 8 years | 15 years | 15 years | |
Contractual commitments relating to chartering-in agreements | $ 203,000 | $ 406,100 | ||
Initial payment amount due on delivery | 15,000 | $ 30,000 | ||
Seadrill [Member] | ||||
Related Party Transaction [Line Items] | ||||
Term loan facility, amount guaranteed | 240,000 | |||
Loans to related parties which are associates | 330,747 | |||
SFL West Polaris and SFL Deepwater [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving credit facility, amount drawn | $ 883,400 |
CONSOLIDATED VARIABLE INTERES89
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | Dec. 31, 2016USD ($)variable_interest_entity | Dec. 31, 2015USD ($) |
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | variable_interest_entity | 25 | |
Estimated residual values of leased property (un-guaranteed) | $ 213,901 | $ 195,238 |
Variable Interest Entities With Assets Accounted for as Direct Financing Leases [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | variable_interest_entity | 1 | |
Carrying value of vessels | $ 20,200 | |
Unearned lease income | 800 | |
Estimated residual values of leased property (un-guaranteed) | 4,000 | |
Outstanding loan balance | 6,000 | |
Outstanding loan balance, current portion | $ 0 | |
Variable Interest Entities With Assets Accounted for as Operating Lease Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | variable_interest_entity | 24 | |
Carrying value of vessels | $ 564,900 | |
Outstanding loan balance | 250,300 | |
Outstanding loan balance, current portion | $ 13,900 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||||
Proceeds from sale of vessels and termination of charters | $ 29,102 | $ 42,275 | $ 199,429 | ||
Term of lease or charter | 8 years | 15 years | 15 years | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividend declared | $ 0.45 | ||||
Proceeds from sale of vessels and termination of charters | $ 24,000 |