DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ship Finance International LTD | |
Entity Central Index Key | 0001289877 | |
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 Emerging Growth Company | false | |
Entity Public Float | $ 1,379,722,852 | |
Entity Common Stock, Shares Outstanding | 119,373,064 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | FY | |
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues | |||
Direct financing lease interest income - related parties | $ 9,623 | $ 16,362 | $ 22,850 |
Direct financing and sales-type lease interest income - other | 30,055 | 21,903 | 331 |
Finance lease service revenues - related parties | 22,095 | 35,010 | 44,523 |
Profit sharing revenues - related parties | 1,779 | 5,753 | 51,470 |
Profit sharing revenues - other | 0 | 61 | 74 |
Time charter revenues - related parties | 53,258 | 51,832 | 55,265 |
Time charter revenues - other | 239,468 | 186,577 | 171,483 |
Bareboat charter revenues - related parties | 0 | 5,736 | 10,075 |
Bareboat charter revenues - other | 36,222 | 34,860 | 34,964 |
Voyage charter revenues - other | 24,339 | 21,037 | 19,329 |
Other Operating Income | 1,873 | 1,747 | 2,587 |
Total operating revenues | 418,712 | 380,878 | 412,951 |
Gain/(Loss) on sale of assets and termination of charters, net | (2,578) | 1,124 | (167) |
Gain (Loss) on Disposition of Stock in Subsidiary | 7,613 | 0 | 0 |
Operating expenses | |||
Vessel operating expenses - related parties | 45,266 | 57,714 | 67,221 |
Vessel operating expenses - other | 83,282 | 74,080 | 68,795 |
Depreciation | 104,079 | 88,150 | 94,293 |
Vessel impairment charge | 64,338 | 0 | 5,314 |
Administrative expenses - related parties | 1,072 | 831 | 1,443 |
Administrative expenses - other | 8,095 | 6,601 | 7,629 |
Total operating expenses | 306,132 | 227,376 | 244,695 |
Net operating income | 117,615 | 154,626 | 168,089 |
Non-operating income / (expense) | |||
Interest income – related parties, associated companies | 14,128 | 15,265 | 18,675 |
Interest income – related parties, other | 880 | 422 | 897 |
Interest income - other | 2,943 | 3,643 | 2,164 |
Interest Expense, Related Party | 6,378 | 0 | 0 |
Interest expense - other | (107,508) | (90,414) | (71,843) |
(Loss)/gain on purchase of bonds | 1,146 | (2,305) | (8,802) |
Available-for-sale securities impairment charge | 0 | (4,410) | 0 |
Dividend income from related parties | 0 | 3,300 | 11,550 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 12,277 | 0 | 0 |
Debt and Equity Securities, Realized Gain (Loss) | 13,477 | 0 | 0 |
Other financial items, net | 10,407 | (2,684) | (2,089) |
Net income before equity in earnings of associated companies | 58,987 | 77,443 | 118,641 |
Equity in earnings of associated companies | 14,635 | 23,766 | 27,765 |
Net income | $ 73,622 | $ 101,209 | $ 146,406 |
Per share information: | |||
Basic earnings per share (in dollars per share) | $ 0.70 | $ 1.06 | $ 1.57 |
Weighted average number of shares outstanding, basic | 105,898 | 95,597 | 93,497 |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 1.03 | $ 1.50 |
Weighted average number of shares outstanding, diluted | 107,606 | 102,900 | 108,040 |
Cash dividend per share declared and paid (in dollars per share) | $ 1.40 | $ 1.60 | $ 1.80 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 73,622 | $ 101,209 | $ 146,406 |
Fair value adjustments to hedging financial instruments | (3,433) | 9,974 | 9,702 |
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | (3,127) | 1,555 | 0 |
Fair value adjustments to investment securities classified as available-for-sale | 2,244 | (23,528) | (93,406) |
Unrealized loss from investment securities classified as available-for-sale securities reclassified to Consolidated Statement of Operations | 0 | 2,106 | 0 |
Fair value adjustments to hedging financial instruments in associated companies | (206) | 1,182 | 1,150 |
Other items of comprehensive (loss)/income | (74) | 60 | (38) |
Other comprehensive (loss)/income, net of tax | (4,596) | (8,651) | (82,592) |
Comprehensive income | $ 69,026 | $ 92,558 | $ 63,814 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 211,394 | $ 153,052 |
Restricted Cash, Current | 1,000 | 0 |
Investment in debt and equity securities | 87,174 | 93,802 |
Trade accounts receivable | 2,976 | 12,583 |
Due from related parties | 41,771 | 9,625 |
Other receivables | 13,041 | 9,012 |
Inventories | 8,547 | 5,126 |
Prepaid expenses and accrued income | 2,593 | 2,291 |
Investment in direct financing and sales-type leases, current portion | 39,804 | 32,096 |
Financial instruments (short-term): at fair value | 5,279 | 108 |
Total current assets | 413,579 | 317,695 |
Vessels and equipment, net | 1,559,712 | 1,762,596 |
Finance Lease, Right-of-Use Asset | 749,889 | 0 |
Investment in direct financing and sales-type leases, long-term portion | 762,355 | 585,975 |
Investment in associated companies | 25,107 | 10,678 |
Loans to related parties - associated companies, long-term | 310,144 | 314,000 |
Receivables from related parties - others, long-term | 15,616 | 0 |
Other long-term assets | 30,810 | 12,791 |
Financial instruments (long-term): at fair value | 10,633 | 8,347 |
Total assets | 3,877,845 | 3,012,082 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 267,149 | 313,823 |
Capital Lease Obligations, Current | 67,793 | 9,031 |
Trade accounts payable | 1,945 | 487 |
Due to related parties | 1,349 | 857 |
Accrued expenses | 12,510 | 13,351 |
Financial instruments (short-term): at fair value | 45,047 | 503 |
Other current liabilities | 8,332 | 5,693 |
Total current liabilities | 404,125 | 343,745 |
Long-term liabilities | ||
Long-term debt | 1,169,931 | 1,190,184 |
Obligations under capital leases - long-term portion | 1,104,258 | 230,576 |
Financial instruments (long-term): at fair value | 16,213 | 48,618 |
Other long-term liabilities | 3,286 | 3,962 |
Total liabilities | 2,697,813 | 1,817,085 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Share capital ($0.01 par value; 200,000,000 shares authorized; 119,373,064 shares issued and outstanding at December 31, 2018). $0.01 par value; 150,000,000 shares authorized; 110,930,873 shares issued and outstanding at December 31, 2017). | 1,194 | 1,109 |
Additional paid-in capital | 468,844 | 403,659 |
Contributed surplus | 680,703 | 680,703 |
Accumulated other comprehensive loss | (220) | (94,612) |
Accumulated other comprehensive loss – associated companies | 0 | 206 |
Retained earnings | 29,511 | 203,932 |
Total stockholders' equity | 1,180,032 | 1,194,997 |
Total liabilities and stockholders' equity | $ 3,877,845 | $ 3,012,082 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2016 |
Stockholders' equity | |||
Share capital, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 1 |
Share Capital, shares authorized | 200,000,000 | 150,000,000 | 125,000,000 |
Share Capital, shares issued | 119,373,064 | 110,930,873 | 93,504,575 |
Share Capital, shares outstanding | 119,373,064 | 110,930,873 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 73,622 | $ 101,209 | $ 146,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | (104,079) | (88,150) | (94,293) |
Amortization of deferred charges | 10,187 | 9,013 | 10,972 |
Amortization of seller's credit | (447) | (1,249) | (1,324) |
Amortization of Intangible Assets | 1,699 | 0 | 0 |
Vessel impairment charge | 64,338 | 0 | 5,314 |
Available-for-sale securities impairment charge | 0 | 4,410 | 0 |
Other Asset Impairment Charges | 1,730 | 0 | 0 |
Equity in earnings of associated companies | (14,635) | (23,766) | (27,765) |
Loss/(gain) on sale of assets and termination of charters | 2,578 | (1,124) | 167 |
Gain (Loss) on Disposition of Stock in Subsidiary | (7,613) | 0 | 0 |
Adjustment of derivatives to fair value recognized in net income | (13,898) | (8,208) | (4,399) |
Increase (Decrease) in Equity Securities, FV-NI | (12,277) | 0 | 0 |
Loss/(gain) on repurchase of bonds | (1,146) | 2,305 | 8,802 |
Gain (Loss) on Sale of Equity Investments | (13,476) | 0 | 0 |
Interest receivable in form of notes | 0 | (635) | (633) |
Other, net | 1,108 | 3,959 | 365 |
Changes in operating assets and liabilities | |||
Trade accounts receivable | 9,607 | (9,034) | (1,492) |
Due from related parties | (1,308) | 10,543 | 8,433 |
Other receivables | (3,870) | 2,418 | (856) |
Increase (Decrease) in Other Current Assets | (157) | 0 | 0 |
Inventories | (3,423) | (42) | (27) |
Prepaid expenses and accrued income | (301) | 1,317 | 2,181 |
Trade accounts payable | 2,370 | (742) | 394 |
Accrued expenses | (433) | (1,188) | 1,046 |
Other current liabilities | 2,641 | 460 | (11,804) |
Net cash provided by operating activities | 200,975 | 177,796 | 230,073 |
Investing activities | |||
Repayments from investments in direct financing and sales-type leases | 33,486 | 31,929 | 30,410 |
Additions to newbuildings | 0 | (81,664) | (188,142) |
Purchase of vessels | (1,137,703) | 0 | 0 |
Proceeds from sale of vessels and termination of charters | 145,654 | 74,791 | 29,102 |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 83,485 | 0 | 0 |
Net amounts received from/(paid to) associated companies | (24,161) | 27,322 | 193,517 |
Payments for (Proceeds from) Investments | (32,675) | 4,016 | 25,488 |
Net cash provided by/(used in) investing activities | (866,564) | 48,362 | 39,399 |
Financing activities | |||
Proceeds from shares issued, net of issuance costs | 0 | 88 | 323 |
Principal settlements of cross currency swaps, net | 0 | (29,186) | 0 |
Proceeds from Long-term Capital Lease Obligations | 944,097 | 0 | 0 |
Repurchase of bonds | (97,248) | (68,383) | (296,800) |
Proceeds from issuance of short-term and long-term debt | 825,984 | 302,104 | 522,000 |
Repayments of short-term and long-term debt | (778,731) | (179,354) | (329,303) |
Debt fees paid | (8,257) | (2,554) | (5,099) |
Repayments of lease obligation liability | (11,653) | (5,296) | (97) |
Cash dividends paid | (149,261) | (152,907) | (168,289) |
Net cash provided by/(used in) financing activities | 724,931 | (135,488) | (277,265) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 59,342 | 90,670 | (7,793) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 153,052 | 62,382 | 70,175 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 212,394 | 153,052 | 62,382 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | $ 104,620 | $ 88,201 | $ 65,184 |
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 | Senior Unsecured Convertible Bonds Due 2018 [Member]Additional paid-in capital | Senior Unsecured Convertible Bonds due 2023 [Member]Additional paid-in capital |
Balance, at beginning of year at Dec. 31, 2015 | $ 93,468 | $ 285,859 | $ 588,133 | $ (1,037) | $ (2,126) | $ 277,513 | |||
Balance, at beginning of year (in shares) at Dec. 31, 2015 | 93,468,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Amortization of stock-based compensation | 403 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | 0 | ||||||||
Shares issued | $ 117 | 206 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | ||||||||
Shares issued (in shares) | 8,036,575 | ||||||||
Transfer arising from reduction in par value of issued shares | $ (92,570) | 92,570 | |||||||
Equity component of convertible bond issuance due 2021 | 4,551 | $ 0 | |||||||
Adjustment to equity component of 3.25% convertible bond issuance due 2018 arising from reacquisition of bonds | 0 | $ (8,517) | |||||||
Fair value adjustments to hedging financial instruments | $ 9,702 | 9,702 | |||||||
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | 0 | 0 | |||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |||||||
Fair value adjustments to available-for-sale securities | (93,406) | ||||||||
Unrealized loss from available-for-sale securities reclassified to Consolidated Statement of Operations | 0 | 0 | |||||||
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) | ||||||||
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 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Value, Purchase of Assets | 0 | ||||||||
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) | ||||||||
Amortization of stock-based compensation | 374 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | 0 | ||||||||
Shares issued | $ 94 | 88 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 137,063 | ||||||||
Shares issued (in shares) | 9,426,298 | ||||||||
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 3.25% convertible bond issuance due 2018 arising from reacquisition of bonds | 0 | (16,368) | |||||||
Fair value adjustments to hedging financial instruments | 9,974 | 9,974 | |||||||
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | 1,555 | 1,555 | |||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |||||||
Fair value adjustments to available-for-sale securities | (23,528) | ||||||||
Unrealized loss from available-for-sale securities reclassified to Consolidated Statement of Operations | 2,106 | 2,106 | |||||||
Other items of comprehensive (loss)/income | 60 | 60 | |||||||
Fair value adjustments to hedging financial instruments in associated companies | 1,182 | 1,182 | |||||||
Net income | 101,209 | 101,209 | |||||||
Dividends declared | (152,907) | ||||||||
Balance, at end of year at Dec. 31, 2017 | $ 1,194,997 | $ 1,109 | 403,659 | 680,703 | (94,612) | 206 | 203,932 | ||
Balance, at end of year (in shares) at Dec. 31, 2017 | 110,930,873 | 110,930,873 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Value, Purchase of Assets | 0 | ||||||||
Accumulated other comprehensive loss | |||||||||
Fair value adjustments to hedging financial instruments | $ 6,072 | ||||||||
Fair value adjustments to available-for-sale securities | (100,382) | ||||||||
Other items | (302) | ||||||||
Accumulated other comprehensive loss | (94,612) | ||||||||
Amortization of stock-based compensation | 454 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | (33) | ||||||||
Shares issued | $ 85 | 0 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 9,927 | ||||||||
Shares issued (in shares) | 8,442,191 | ||||||||
Transfer arising from reduction in par value of issued shares | $ 0 | 0 | |||||||
Equity component of convertible bond issuance due 2021 | 0 | $ 7,906 | |||||||
Adjustment to equity component of 3.25% convertible bond issuance due 2018 arising from reacquisition of bonds | (1,096) | $ (9,933) | |||||||
Fair value adjustments to hedging financial instruments | (3,433) | (3,433) | |||||||
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | (3,127) | (3,127) | |||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (98,782) | (98,782) | |||||||
Fair value adjustments to available-for-sale securities | 2,244 | ||||||||
Unrealized loss from available-for-sale securities reclassified to Consolidated Statement of Operations | 0 | 0 | |||||||
Other items of comprehensive (loss)/income | (74) | (74) | |||||||
Fair value adjustments to hedging financial instruments in associated companies | (206) | (206) | |||||||
Net income | 73,622 | 73,622 | |||||||
Dividends declared | (149,261) | ||||||||
Balance, at end of year at Dec. 31, 2018 | $ 1,180,032 | $ 1,194 | 468,844 | $ 680,703 | $ (220) | $ 0 | $ 29,511 | ||
Balance, at end of year (in shares) at Dec. 31, 2018 | 119,373,064 | 119,373,064 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Value, Purchase of Assets | $ 57,960 | ||||||||
Accumulated other comprehensive loss | |||||||||
Fair value adjustments to hedging financial instruments | $ (488) | ||||||||
Fair value adjustments to available-for-sale securities | 644 | ||||||||
Other items | (376) | ||||||||
Accumulated other comprehensive loss | $ (220) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , the Company owned three very large crude oil carriers ("VLCCs"), two Suezmax crude oil carriers, five Supramax dry bulk carriers, seven Handysize dry bulk carriers, two Kamsarmax dry bulk carriers, eight Capesize dry bulk carriers, 45 container vessels (including four chartered-in 19,200 and 19,400 twenty-foot equivalent units ("TEU") container vessels and seven 10,600 TEU and 13,800 TEU container vessels financed through sale and leaseback), two car carriers, one jack-up drilling rig, two ultra-deepwater drilling units, five offshore support vessels, two chemical tankers and two oil product tankers. The two ultra-deepwater drilling units and the one jack-up drilling rig referred to above are owned by wholly-owned subsidiaries of the Company that are accounted for using the equity method (see Note 17: Investment in associated companies). Since the Company's 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, 2018 | |
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, 2018 , 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 Effective from January 1, 2018, we adopted the new accounting standard ASC Topic 606 "Revenue from Contracts with Customers" using the modified retrospective method, which resulted in no adjustment to our retained earnings on adoption and comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. 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, voyage charters and other freight billings. In a time charter voyage, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. Generally, the charterer has the discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer and carries only lawful or non hazardous cargo. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges, and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire in advance of the upcoming contract period. The time charter contracts are either operating or direct financing or sales type leases. Where time charters and bareboat charters are considered operating leases, revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. Rental payments from 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. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimate is reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. We have determined that our voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses, and the revenue is recognized on a straight line basis over the voyage days from the commencement of loading to completion of discharge. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. Voyage revenues typically become billable and due for payment on completion of the voyage and discharge of the cargo, at which point the receivable is recognized as "Trade accounts receivable, net". In a voyage contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. To recognize costs incurred to fulfill a contract as an asset, the following criteria shall be met: (i) the costs relate directly to the contract, (ii) the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future and (iii) the costs are expected to be recovered. The costs incurred during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are subsequently amortized on a straight-line basis as we satisfy the performance obligations under the contract. Costs incurred to obtain a contract, such as commissions, are also deferred and expensed over the same period. For our vessels operating under revenue sharing agreements, or in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants in accordance with an agreed-upon formula. Revenues generated through revenue sharing agreements are presented gross when we are considered the principal under the charter parties with the net income allocated under the revenue sharing agreement presented as within voyage charter income. For revenue sharing agreements that meet the definition of a lease, we account for such contracts as variable rate operating leases and recognize revenue for the applicable period based on the actual net revenue distributed by the pool. As detailed in Note 24: Related party transactions, the Company has, or has had, profit sharing arrangements with Frontline Shipping Limited ("Frontline Shipping"), Golden Ocean Group Limited ("Golden Ocean"). The Company also has profit sharing agreements with Deep Sea Supply Shipowning II AS (the “Solstad Charterer”), a wholly owned subsidiary of Solship Invest 3 AS (“Solship”, formerly Deep Sea Supply Plc, or Deep Sea). Amounts receivable under these arrangements are accrued on the basis of amounts earned at the reporting date. Any contingent elements of rental income, such as profit share 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. Investment in debt and equity securities Investments in debt and equity securities include share investments and interest-earning listed and unlisted corporate bonds. Any premium paid on their acquisition is amortized over the life of the bond. Investments in debt securities are recorded at fair value, with unrealized gains and losses recorded as a separate component of other comprehensive income. Investments in equity securities are recorded at fair value, with unrealized gains and losses recorded in the consolidated statement of operations. 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. In determining whether the Company has an other-than-temporary impairment in its investment in bonds, in addition to the Company’s intention and ability to hold the investments until the market recovers, the Company considers the period of decline, the amount and the severity of the decline and the ability of the investment to recover in the near to medium term. The Company also evaluates if the underlying security provided by the bonds is sufficient to ensure that the decline in fair value of these bonds did not result in an other-than-temporary impairment. The cost of disposals or reclassifications from other comprehensive income is calculated on an average cost basis, where applicable. 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, 2018 and 2017 , 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 net realizable 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. Vessels and equipment under capital lease The Company charters-in certain vessels and equipment under leasing agreements. Leases of vessels and equipment, where the Company has substantially all the risks and rewards of ownership, are classified as capital lease assets, with corresponding capital lease obligations recorded. Capital lease assets are capitalized at the commencement of the lease at the lower of the fair value of the leased asset and the present value of the minimum lease payments. For sale and lease back transactions, when the asset sold is for more or less than its carrying amount, any indicated loss or gain on the sale is in substance a prepayment of rent or unearned rent, respectively, and thus, in accordance with ASC 840-40-35-4, the Company defers this prepaid or unearned rental and amortizes it over the lease term. In case the fair value of the asset sold is less than its carrying amount, any indicated loss on the sale is recognized in the consolidated statement of operations as incurred. Depreciation of vessels and equipment under capital lease is included within "Depreciation" in the consolidated statement of operations. Vessels and equipment under capital lease are depreciated on a straight-line basis over the vessels' remaining economic useful lives or on a straight-line basis over the term of the lease. The method applied is determined by the criteria by which the lease has been assessed to be a capital lease. 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 direct financing and sales-type leases Leases (charters) of our vessels where we are the lessor are classified as either direct financing or sales-type leases or operating leases, based on an assessment of the terms of the lease. For charters classified as direct financing 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 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 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 direct financing or sales-type 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 direct financing or sales-type 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 direct financing or sales-type 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. Obligations under capital lease The Company charters-in and out four container vessels on a bareboat basis under long term leasing agreements with corresponding assets classified as investments in direct financing leases. The Company also charters-in seven container vessels through sale and leaseback financing arrangements with corresponding lease assets classified under vessels under capital lease. Leases of vessels and equipment, where the Company has substantially all the risks and rewards of ownership, are classified as capital leases. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the capital balance outstanding. The interest element of the capital cost is charged to the Consolidated Statement of Operations over the lease period. 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. 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. A conversion of the bonds at more favorable terms than the original bond is treated as an inducement and the Company recognizes a debt conversion expense equal to the fair value of all securities and other consideration transferred in the transaction in excess of the fair value of securities or consideration issuable pursuant to the original conversion terms. 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. 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. 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 In May 2014, issued ASU 2014-09 "Revenue from Contracts with Customers", subsequently amended and collectively Topic 606. The standard replaced almost all existing revenue recognition guidance in U.S. GAAP, with the intention to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASC 606 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. ASC 606 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which became effective for the Company beginning January 1, 2018. The majority of vessels are on bareboat or time charters and these continue to be accounted as operating or finance leases in accordance with ASC 840 Leases and related interpretations and the implementation of the new revenue standard therefore did not have an effect on income recognition from such contracts. The Company adopted ASC 606 in the first quarter of fiscal 2018 on a modified retrospective basis with no changes recognized in the prior year comparative financial statements. The adoption of this standard only impacted our vessels operating on voyage charters. For vessels operating on voyage charters, voyage revenues are, under the new revenue standard, recognized over the estimated length of each voyage, calculated on a load-to-discharge basis. Certain voyage expenses, primarily bunker fuel expenses, are capitalized between the previous discharge port, or contract date if later, and the next load port if they qualify as fulfillment costs under ASC 340 Deferred Costs and Other Assets. ASC 606 has been applied to those voyage contracts that were not completed at the date of initial application. Upon adoption, the cumulative effect of adopting this guidance resulted in a net minor adjustment of $0.1 million to the opening balance of retained earnings as of January 1, 2018 and the Company did not consider this material enough to record. In addition, the adoption of this standard did not have a material impact on the consolidated financial statements of the Company for the year ended December 31, 2018 . 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 became effective for fiscal years and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-01 in the first quarter of fiscal 2018 on a modified retrospect |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Topic 606. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. Accounting Standards Codification ("ASC") 842 provides a group of practical expedients that allows entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases and (iii) reassess initial direct costs for any existing leases. The Company plans to adopt ASC 842 on January 1, 2019 and has elected the use of the practical expedients. Due to this election, the Company has determined the adoption of ASC 842 will not have a material impact on the consolidated financial statements. In December 2018, the FASB issued ASU No. 2018-20 "Leases (Topic 842): Narrow-Scope Improvements for Lessors" to address issues facing lessors when applying the leases standard. The amendments addresses the following issues (i) Sales taxes and other similar taxes collected from lessees, which permits lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs and exclude the costs from being reported as lease revenue with an associated expense. (ii) Certain lessor costs paid directly by lessees, whereby certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. The amendments also require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments. A lessor will record those reimbursed costs as revenue. (iii) Recognition of variable payments for contracts with lease and non-lease components. The amendments relate to recognizing variable payments for contracts with lease and non-lease components require lessors to allocate (rather than recognize as currently required in the new leases standard) certain variable payments to the lease and non-lease components when the changes in facts and circumstances on which the variable payment is based occur. After the allocation, the amount of variable payments allocated to the lease components will be recognized as income in profit or loss in accordance with the new leasing guidance, while the amount of variable payments allocated to non-lease components will be recognized in accordance with other accounting guidance, such as revenue from contracts with customers. ASU 2018-20 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company has determined the adoption of ASU 2018-20 will not have a material impact on the consolidated financial statements. 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, 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 March 2017, the FASB issued ASU 2017-08 "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities" to amend the amortization period for certain purchased callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. 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 August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments also simplify the application of hedge accounting in certain situations. ASU 2017-12 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company has not elected to early adopt. The effect of the adoption of ASU 2017-12 will be that $34.4 thousand of hedge ineffectiveness losses will be reclassified from retained earnings to other comprehensive income. In July 2018, the FASB issued ASU 2018-10 "'Codification Improvements to Topic 842, Leases" to provide amendments that affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. ASU 2018-10 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company does not expect that the adoption of ASU 2018-10 will have a material effect on the consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-16 "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." In the United States, eligible benchmark interest rates under Topic 815 are interest rates on direct Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, and the Overnight Index Swap (OIS) Rate based on the Federal Funds Effective Rate. When the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, in August 2017, it introduced the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate as the fourth permissible U.S. benchmark rate. The new ASU adds the OIS rate based on SOFR as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. ASU 2018-16 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2018-16 on the consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18 "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606", which defines a collaborative arrangement as a contractual arrangement under which two or more parties actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. The ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard. The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. It accomplishes this by allowing organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard. ASU 2018-18 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company does not expect that the adoption of ASU 2018-18 will have a material effect on the consolidated financial statements. Also in November 2018, the FASB issued ASU No. 2018-19 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses" to provide new guidance to mitigate the transition complexity by requiring entities other than public business entities, including not-for-profit organizations and certain employee benefit plans, to implement the credit losses standard issued in 2016, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard. ASU 2018-19 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2018-19 on the consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
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, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The computation of basic earnings per share ("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 $) 2018 2017 2016 Basic earnings per share: Net income available to stockholders 73,622 101,209 146,406 Diluted earnings per share: Net income available to stockholders 73,622 101,209 146,406 Interest and other expenses attributable to convertible bonds 123 4,511 15,310 Net income assuming dilution 73,745 105,720 161,716 The components of the denominator for the calculation of basic and diluted EPS are as follows: Year ended December 31, (in thousands) 2018 2017 2016 Basic earnings per share: Weighted average number of common shares outstanding 105,898 95,597 93,497 Diluted earnings per share: Weighted average number of common shares outstanding* 105,898 95,597 93,497 Effect of dilutive share options 59 26 — Effect of dilutive convertible bonds 1,649 7,277 14,543 Weighted average number of common shares outstanding assuming dilution 107,606 102,900 108,040 Year ended December 31, 2018 2017 2016 Basic earnings per share: $ 0.70 $ 1.06 $ 1.57 Diluted earnings per share: $ 0.69 $ 1.03 $ 1.50 *The weighted average number of common shares outstanding excludes 8,000,000 shares issued as part of a share lending arrangement relating to the Company's issuance of 5.75% senior unsecured convertible bonds in October 2016. It also excludes 3,765,842 shares issued as of December 31, 2018 from up to 7,000,000 shares issuable under a share lending arrangement relating to the Company's issuance of 4.875% senior unsecured convertible bonds in April and May 2018. These lent shares are owned by the Company and will be returned on or before maturity of the bonds in 2021 and 2023, respectively. In February 2018, the Company redeemed the full outstanding amount under the 3.25% senior unsecured convertible bonds due 2018. The remaining outstanding principal amount of $63.2 million was paid in cash, and the premium settled in common shares with the issue of 651,365 new shares. As of December 31, 2018 , the 4.875% senior unsecured convertible bonds issued in April and May 2018 and the 5.75% senior unsecured convertible bonds issued in October 2016 were both anti-dilutive. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , are as follows: Year ending December 31, (in thousands of $) 2019 313,018 2020 298,033 2021 250,742 2022 179,092 2023 161,125 Thereafter 209,844 Total minimum lease revenues 1,411,854 There is no contingent rental income included above. The cost and accumulated depreciation of vessels (owned and under capital lease) leased to third parties on non-cancelable operating leases at December 31, 2018 and 2017 were as follows: ( in thousands of $) 2018 2017 Cost 2,336,269 2,256,747 Accumulated depreciation 309,135 494,151 Total 2,027,134 1,762,596 |
GAIN_(LOSS) ON SALE OF ASSETS A
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS | 12 Months Ended |
Dec. 31, 2018 | |
Gain (Loss) on Disposition of Assets [Abstract] | |
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS | GAIN/(LOSS) 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 $) 2018 2017 2016 (Loss)/gain on sale of vessels (2,578) (1,699) (167) Gain on termination of charters — 2,823 — Total loss/(gain) on sale of assets and termination of charters (2,578) 1,124 (167) The Company distinguishes between gains or losses on termination of charters, where ownership of the underlying vessel is retained, and gains or losses 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: During the year ended December 31, 2018 , the VLCC Front Circassia , which was accounted for as a direct financing lease asset, was sold to an unrelated third party. A loss of $1.4 million was recorded on the disposal, the proceeds of which included $17.9 million gross sales proceeds and compensation in the form of a loan note of $4.4 million at fair value was received for the early termination of the charter (see Note 24: Related party transactions). The container vessel SFL Avon , which was accounted for as an operating lease asset, was sold to an unrelated third party during the year ended December 31, 2018 for a loss of $0.2 million on disposal. The VLCCs Front Page , Front Stratus and Front Serenade which were accounted for as direct financing lease assets during the year ended December 31, 2018 , were sold to a related party, ADS Crude Carriers Plc. ("ADS"). Gains of $0.3 million , $0.2 million and $0.3 million were recorded on the disposal of the vessels, respectively. The gross proceeds from the sale was $22.5 million per vessel in addition to compensation, in the form of loan notes of $3.4 million each, received for the early termination of the charters (see Note 24: Related party transactions). During the year ended December 31, 2018 , the VLCCs Front Ariake and Front Falcon , which were accounted for as a direct financing lease assets, were sold to an unrelated third party. A gain of $1,000 and a loss of $1.8 million was recorded on the disposals respectively, and compensation in the form of a loan note of $3.4 million at fair value was received for the early termination of the Front Ariake charter (see Note 24: Related party transactions). During the year ended December 31, 2017 , the Company recorded a net loss of $1.7 million arising from the disposals of four crude oil tankers and the commencement of a sales-type lease for the 1,700 TEU container vessel MSC Alice as described below. The VLCC Front Century , the Suezmax Front Brabant, the VLCC Front Scilla and the Suezmax Front Ardenne , which were accounted for as direct financing lease assets, were sold to unrelated third parties in March 2017, May 2017, June 2017 and August 2017, respectively. Losses of $26,000 , $1.7 million , $1.1 million and a gain of $0.3 million , respectively, were recorded on the disposals. Sales proceeds included compensation received for early termination of the charters (see Note 24: Related party transactions). The 1,700 TEU container vessel MSC Alice which was previously an operating lease asset, was accounted for as a sales-type lease during the year ended December 31, 2017 , following the commencement of a long-term bareboat charter in April 2017 to MSC Mediterranean Shipping Company S.A. ("MSC"), an unrelated party. The terms of the charter provides a minimum fixed price purchase obligation at the expiry of the five year charter period. A gain of $0.7 million was recorded on the transaction. During the year ended December 31, 2016 , the Company sold one VLCC and one offshore support vessel to unrelated parties and realized aggregate net loss of $0.2 million on their disposals. Gain on termination of charters: In April 2017, the 2007-built jack-up drilling rig Soehanah was redelivered to us by the previous charterer, PT Apexindo Pratama Duta ("Apexindo"). Ship Finance received a non-amortizing loan note with a term of six years from Apexindo as part of the settlement agreement for the early termination of the charter. The note which has an initial face value of $6.0 million has been recorded at an initial fair value of $2.8 million , resulting as a gain on the termination of the charter. |
GAIN ON SALE OF SUBSIDIARIES AN
GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS During the year ended December 31, 2018 , the Company entered into an agreement to sell 100% of the share capital of Rig Finance Limited ("Rig Finance"), a wholly owned subsidiary, to an unrelated third party. Rig Finance owned the jack-up drilling rig Soehanah . Net proceeds of $84.4 million were received for the shares, resulting in a net gain of $7.6 million on the sale. At the time of disposal on December 31, 2018 , net assets held by Rig Finance were as follows: (in thousands of $) December 31, 2018 Cash and cash equivalents 915 Vessel and equipment, net 76,875 Charter deposit (913 ) Other current liabilities (90 ) Net assets 76,787 |
OTHER FINANCIAL ITEMS
OTHER FINANCIAL ITEMS | 12 Months Ended |
Dec. 31, 2017 | |
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 $) 2018 2017 2016 Net cash payments on non-designated derivatives (721 ) (5,124 ) (4,913 ) Net increase in fair value of non-designated derivatives 13,908 8,068 3,917 Net increase in fair value of designated derivatives (ineffective portion) (11 ) 140 482 Other items (2,769 ) (5,768 ) (1,575 ) Total other financial items 10,407 (2,684 ) (2,089 ) 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 movement in the valuation of non-designated derivatives in the year ended December 31, 2018 , includes $3.1 million ( 2017 : $1.6 million ; 2016 : $nil ) 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, 2018 , include a net loss of $2.0 million arising from foreign currency translation ( 2017 : loss $4.5 million ; 2016 : gain $0.1 million ). 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, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS IN DEBT AND EQUITY SECURITIES Marketable securities held by the Company consist of corporate bonds and equity securities. (in thousands of $) 2018 2017 Amortized cost 76,234 194,184 Accumulated net unrealized (loss)/gain 10,940 (100,382 ) Carrying value 87,174 93,802 Year ended December 31, 2018 Year ended December 31, 2017 (in thousands of $) Amortised Cost Unrealised gains/ (losses)* Fair value Amortised Cost Unrealised gains/ (losses)* Fair value Corporate Bonds: Golden Close Senior — — — 17,754 (2,240 ) 15,514 Golden Close Convertible — — — 9,960 — 9,960 Golden Close Super Senior — — — 2,561 347 2,908 NorAm Drilling 4,715 477 5,192 5,181 293 5,474 Oro Negro 7,886 167 8,053 7,886 — 7,886 Total corporate bonds 12,601 644 13,245 43,342 (1,600 ) 41,742 Shares: Frontline 50,490 10,340 60,830 150,004 (99,514 ) 50,490 NorAm Drilling 3,035 893 3,928 730 732 1,462 Golden Close 108 (108 ) — 108 — 108 ADS Crude Carriers 10,000 (829 ) 9,171 — — — Total shares 63,633 10,296 73,929 150,842 (98,782 ) 52,060 Total 76,234 10,940 87,174 194,184 (100,382 ) 93,802 * This includes foreign currency gains or losses on non U.S. dollar denominated equity investments in addition to the changes in the fair value from market prices movements. The investments in corporate bonds at December 31, 2018 , consist of investments in Oro Negro and NorAm Drilling Company AS ("NorAm Drilling") bonds which have a total carrying value of $13.2 million ( 2017 : $41.7 million , including investments in Golden Close Corp. Ltd. ("Golden Close") bonds) and have maturities in 2019 and 2021 , respectively. The corporate bonds are classified as available-for-sale securities and are recorded at fair value, with unrealized gains and losses recorded as a separate component of "Other comprehensive income". The accumulated net unrealized gain on these available-for-sale corporate debt securities included in "Other comprehensive income" at December 31, 2018 , was $0.6 million ( 2017 : loss of $1.6 million ). Following the adoption of ASU 2016-01 from January 2018, the Company now recognizes any changes in the fair value of equity investments in net income. The adoption of the standard resulted in a net unrealized gain of $12.3 million recorded in the consolidated statement of operations for the year ended December 31, 2018 . See also Recently Adopted Accounting Standards within Note 2. The investments in shares at December 31, 2018 , consist of listed shares in Frontline with a carrying value of $60.8 million ( 2017 : $50.5 million ) (see Note 24: Related party transactions), shares in NorAm Drilling traded in the Norwegian Over the Counter market ("OTC") market with a carrying value of $3.9 million ( 2017 : $1.5 million ) and shares in Golden Close, previously traded in the Norwegian OTC market with a carrying value of $nil ( 2017 : $0.1 million ). During the year ended December 31, 2018 , the Company acquired 4,031,800 shares in ADS, a recently formed company in 2018 trading on the Oslo Merkur Market and a related party. The investment in ADS shares were purchased for $10.0 million and have a carrying value of $9.2 million at December 31, 2018 ( 2017 : $nil ). See also Note 24: Related party transactions. In November 2018 NorAm Drilling undertook a share consolidation of 20 :1, resulting in a revised investment of 601,023 shares. On the same day NorAm Drilling participated in a rights issue, increasing the Company's investment in shares by 623,447 shares. In December 2018, the Company acquired an additional 41,756 shares bringing the total investment in NorAm Drilling to 1,266,226 shares with a fair value of $3.9 million at December 31, 2018 ( 2017 : $1.5 million ). During the year ended December 31, 2018 , Golden Close initiated liquidation proceedings. As a result of this, the Company received total proceeds of $45.6 million in settlement of its total investment, resulting in an overall net gain of $13.5 million . As at December 31, 2018 , the net investment in Golden Close debt and equity securities is $nil ( 2017 : $28.5 million ). In December 2017, the Company determined that the shares in Golden Close were other-than-temporarily impaired and recorded $3.9 million impairment charge in a separate line in the consolidated statement of operations for the year ended December 31, 2017 . Year ended December 31, 2018 Year ended December 31, 2017 (in thousands of $) Amortised Cost Unrealised gains/ (losses)* Fair value Amortised Cost Unrealised gains/ (losses)* Fair value Corporate Bonds: Golden Close Senior — — — 17,754 (2,240 ) 15,514 Golden Close Convertible — — — 9,960 — 9,960 Golden Close Super Senior — — — 2,561 347 2,908 NorAm Drilling 4,715 477 5,192 5,181 293 5,474 Oro Negro 7,886 167 8,053 7,886 — 7,886 Total corporate bonds 12,601 644 13,245 43,342 (1,600 ) 41,742 Shares: Frontline 50,490 10,340 60,830 150,004 (99,514 ) 50,490 NorAm Drilling 3,035 893 3,928 730 732 1,462 Golden Close 108 (108 ) — 108 — 108 ADS Crude Carriers 10,000 (829 ) 9,171 — — — Total shares 63,633 10,296 73,929 150,842 (98,782 ) 52,060 Total 76,234 10,940 87,174 194,184 (100,382 ) 93,802 * This includes foreign currency gains or losses on non U.S. dollar denominated equity investments in addition to the changes in the fair value from market prices movements. |
TRADE ACCOUNTS RECEIVABLE AND O
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 . As at December 31, 2018 , 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, mainly include amounts due from vessel managers and claims receivable, which are presented with no allowance for doubtful accounts as of December 31, 2018 and December 31, 2017 . |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET ( in thousands of $) 2018 2017 Cost 1,955,880 2,256,747 Accumulated depreciation 396,168 494,151 Vessels and equipment, net 1,559,712 1,762,596 The Company disposed of one container vessel, SFL Avon , with a net carrying value of $12.3 million during the year ended December 31, 2018 (Refer Note 8: Gain/(loss) on sale of assets and termination of charters). In addition, the Company sold a wholly owned subsidiary which owned one jack-up drilling rig, Soehanah with a net carrying value of $76.9 million during the year ended December 31, 2018 (Refer Note 9: Gain on sale of subsidiaries and disposal groups). In 2018 , the Company had no agreements for the construction of newbuilding vessels. In 2017 , the Company took delivery of two newbuilding oil product carriers at an aggregate cost of $115.1 million and transferred one container vessel from operating lease asset to a sales-type lease asset. The carrying value of the container vessel reclassified from vessels and equipment to investment in lease asset was $2.3 million . Depreciation expense was $104.1 million for the year ended December 31, 2018 ( 2017 : $88.2 million ; 2016 : $94.3 million ). The Company owns five offshore support vessels which are chartered on a long-term bareboat charter to Deep Sea Supply Shipowning II AS (the “Solstad Charterer”), an indirect wholly owned subsidiary of Solship Invest 3 AS (“Solship”) which is in turn a wholly owned subsidiary of Solstad Offshore ASA (“Solstad”). Four of these vessels are accounted for as operating leases within Vessels and Equipment, net , and the other one is accounted for as a finance lease (Refer Note 16: Investments in direct financing and sales-type leases). In July 2018, the Company entered into a restructuring agreement with subsidiaries of Solstad, which became effective at the end of August 2018, whereby the Company will receive 50% of the agreed charter hire for two of the offshore support vessels accounted for as operating leases. All other contracted charter hire income earned from fixed assets and finance lease assets will be deferred until the end of 2019. In 2018 , following indications that the Solstad Charterer may not have sufficient funds to fulfill its obligations under the charters, the vessels were written down to estimated fair value and impairment charges of $25.4 million were made against the four offshore supply vessels accounted for as operating leases. (See also Note 16: Investments in direct financing and sales-type leases). No impairment charges were made in 2017 and $4.8 million was recorded against the carrying value of one container vessel in the year ended December 31, 2016 . Acquisitions, disposals and impairments in respect of vessels accounted for as direct financing and sales-type leases and vessels those accounted for as capital leases are discussed in Note 16: Investments in direct financing and sales-type leases and Note 14: Vessels under capital lease, net, respectively. |
VESSELS UNDER CAPITAL LEASE, NE
VESSELS UNDER CAPITAL LEASE, NET VESSELS UNDER CAPITAL LEASE, NET (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
VESSELS UNDER CAPITAL LEASE, NET [Abstract] | |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | VESSELS UNDER CAPITAL LEASE, NET (in thousands of $) 2018 2017 Cost 754,392 — Accumulated depreciation 4,503 — Vessels under capital lease, net 749,889 — In May 2018, the Company took delivery of four 2014 built container vessels, each with approximately 13,800 TEU carrying capacity. The Company initially recorded additions to cost of vessels and equipment of $445.0 million , which included the issuance of 4,024,984 common shares with a value of $58.0 million as part of the consideration. An additional $18.0 million of the consideration paid was assigned to the long term time charter contracts acquired with the vessels which was recorded separately within long term assets and is being amortized to revenue over the remaining period of each contract. In September and October 2018, the Company took delivery of three 2015 built container vessels, each with approximately 10,600 TEU carrying capacity. The Company initially recorded additions to cost of vessels and equipment of $315.0 million In the third and fourth quarter of 2018, the Company refinanced the four 13,800 TEU container vessels and the three 10,600 TEU container vessels with an Asian based financial institution by entering into separate sale and leaseback financing arrangements. The vessels are leased back for an original term ranging from six to 11 years , with options to purchase each vessel after six years. The vessels were derecognized from the Vessels and Equipment category and reclassified to the Vessels under Capital Lease category at a total net carrying value of $748.9 million . The Company recorded additions of $ 5.5 million . Depreciation charged on vessels under capital lease during the year ended December 31, 2018 was $4.5 million and is included in depreciation in the accompanying consolidated statements of operations. |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2018 | |
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. No interest was capitalized in the cost of newbuildings in the year ended December 31, 2018 ( 2017 : $1.2 million ; 2016 : $1.2 million ). As at December 31, 2018 , and December 31, 2017 the Company had no agreements for the construction of newbuilding vessels. During 2017 , the Company took delivery of two newbuilding oil product carriers, which were under construction as at December 31, 2016 . Upon delivery, the vessels were transferred from newbuildings to vessels and equipment (see Note 13: Vessels and equipment, net). |
INVESTMENTS IN DIRECT FINANCING
INVESTMENTS IN DIRECT FINANCING LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
INVESTMENTS IN DIRECT FINANCING LEASES | INVESTMENTS IN DIRECT FINANCING AND SALES TYPE LEASES As of December 31, 2018 , three of the Company's VLCCs ( 2017 : nine VLCCs and Suezmax tankers) were 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 six to eight 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 VLCCs Front Page, Front Stratus and Front Serenade which were accounted for as direct financing leases, were sold in July 2018, August 2018 and September 2018, respectively. These vessels were sold to ADS, a related party (see Note 8: Gain/(loss) on sale of assets and termination of charters and Note 24: Related party transactions). Prior to the sale of these vessels, an impairment charge of $21.8 million was recorded against the carrying value of these three vessels. The VLCC Front Circassia , which was accounted for as a direct financing lease, was sold in February 2018 (see Note 8: Gain/(loss) on sale of assets and termination of charters and Note 24: Related party transactions). The VLCCs Front Ariake and Front Falcon, which were accounted for as direct financing leases, were sold in October 2018 and November 2018, respectively. An impairment charge of $6.8 million was recorded against the carrying value of VLCC Front Ariake leased to Frontline Shipping. The Company owns one offshore supply vessel accounted for as a direct finance lease which is chartered on a long-term bareboat charter, together with four other vessels accounted for as operating leases, to the Solstad Charterer (see Note 13: Vessels and equipment, net). In 2018 , the Company recorded an impairment charge of $10.3 million , against the carrying value of this vessel. In addition to the remaining four vessels above leased to related and unrelated third parties, the Company also had four ( 2017 : two ) container vessels accounted for as direct financing leases and one ( 2017 : one ) container vessel accounted for as a sales-type lease as at December 31, 2018 , which are all on long-term bareboat charters to MSC Mediterranean Shipping Company S.A. ("MSC"), an unrelated party. The two additional container vessels, MSC Erica and MSC Reef, were also chartered in from unrelated third parties in December 2018, and immediately commenced a finance lease out to MSC. The terms of the charters provide a fixed price put option, purchase option or purchase obligation at the expiry of the 15 year charter period for four of the container vessels and a minimum fixed price purchase obligation at the expiry of the five year charter period for the fifth container vessel. In April 2018, the Company acquired 15 second hand feeder size container vessels for an aggregate purchase price of $105.5 million from a subsidiary of MSC. The vessels were immediately leased back to the seller under seven year bareboat charters. The charterer has purchase options throughout the term of the charters and the Company has a put option at the end of the seven year period. As at December 31, 2018 , the Company had a total of 24 vessels accounted for as direct financing and sales-type leases ( 2017 : 13 vessels). The following lists the components of the investments in direct financing leases as at December 31, 2018 , and December 31, 2017 : (in thousands of $) 2018 2017 Total minimum lease payments to be received 1,173,152 916,765 Less : amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (74,077 ) (211,508 ) Net minimum lease payments receivable 1,099,075 705,257 Estimated residual values of leased property (un-guaranteed) 180,080 232,424 Less : unearned income (476,996 ) (319,610 ) Total investment in direct financing leases 802,159 618,071 Current portion 39,804 32,096 Long-term portion 762,355 585,975 802,159 618,071 The chartered-in vessels MSC Anna, MSC Viviana, MSC Erica and MSC Reef are included in the above and had a total carrying value of $581.2 million (2017: $283.9 million for MSC Anna, MSC Viviana ). The minimum lease payments included above for these vessels at December 31, 2018 is $870.0 million ( 2017 : $432.2 million ). The minimum future gross revenues to be received under the Company's non-cancellable direct financing leases as of December 31, 2018 , are as follows: Year ending December 31, (in thousands of $) 2019 106,503 2020 105,877 2021 105,257 2022 104,849 2023 104,690 Thereafter 645,976 Total minimum lease revenues 1,173,152 The above minimum lease revenues includes $162.4 million related to the three VLCCs leased to Frontline Shipping as of December 31, 2018 . Frontline Shipping is a 100% owned subsidiary of Frontline, however the performance under the leases is not guaranteed by Frontline following the amendments agreed in 2015. There is no requirement for a minimum cash balance in Frontline Shipping, but in exchange for releasing the guarantee a dividend restriction was introduced on Frontline Shipping whereby it can only make distributions to its parent company if it can demonstrate it will have minimum free cash of $2.0 million per vessel both prior to and following (i) such distribution and (ii) the payment of the next hire due and any profit share accrued under the charters. Due to the current depressed tanker market, there is a risk that Frontline Shipping may not have sufficient funds to pay the agreed charterhires. However, the performance under the fixed price agreements with Frontline Management whereby we pay management fees of $9,000 per day for each vessel to cover all operating costs including drydocking costs, is guaranteed by Frontline. |
INVESTMENT IN ASSOCIATED COMPAN
INVESTMENT IN ASSOCIATED COMPANIES | 12 Months Ended |
Dec. 31, 2018 | |
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. At December 31, 2018 , 2017 and 2016 , the Company had the following participation in investments that are recorded using the equity method: 2018 2017 2016 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 Deepwater Ltd. ("SFL Deepwater"), SFL Hercules Ltd. ("SFL Hercules"), and SFL Linus Ltd. ("SFL Linus") each own drilling units which have been leased to subsidiaries of Seadrill Limited (“Seadrill”), a related party, as further described below. In September 2017, Seadrill announced that it has entered into a restructuring agreement (the “Restructuring Plan”) with more than 97% of its secured bank lenders, approximately 40% of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Limited (“Hemen”), who is also the largest shareholder in the Company. The Company, SFL Deepwater, SFL Hercules and SFL Linus have also entered into the Restructuring Plan, which has been implemented by way of prearranged Chapter 11 cases. As part of the Restructuring Plan, the financial covenants on Seadrill have been replaced by financial covenants on a newly established subsidiary of Seadrill, Seadrill Rig Holding Company Limited (“RigCo”), who also acts as guarantor for the obligations under the leases for the three drilling units, on a subordinated basis to the senior secured lenders in Seadrill and new secured notes. SFL Deepwater is a 100% owned subsidiary of Ship Finance, incorporated in 2008 for the purpose of holding two ultra deepwater drilling rigs and leasing those rigs to Seadrill Deepwater Charterer Ltd. and Seadrill Offshore AS, fully guaranteed by their parent company Seadrill. In 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. In connection with the Restructuring Plan, certain amendments were agreed with the banks under the loan facility, including an extension of the final maturity date by four years. At December 31, 2018 , the balance outstanding under the new facility was $203.7 million ( 2017 : $225.8 million ), and the available amount under the revolving part of the facility was $ nil ( 2017 : $ nil ). The Company guaranteed $84.7 million of this debt at December 31, 2018 ( 2017 : $75.0 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 favor 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 originally expired in November 2023. In connection with the Restructuring Plan, the lease has been extended by 13 months until December 2024. 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. In connection with the Restructuring Plan, certain amendments were agreed with the banks under the loan facility, including an extension of the final maturity date by four years. At December 31, 2018 , the balance outstanding under this facility was $210.0 million ( 2017 : $251.3 million ), and the available amount under the revolving part of the facility was $ nil ( 2017 : $ nil ). The Company guaranteed $78.9 million of this debt at December 31, 2018 ( 2017 : $70.0 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 originally expired in November 2023. In connection with the Restructuring Plan, the lease has been extended by 13 months until December 2024. 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 shipyard 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. In connection with the Restructuring Plan, certain amendments were agreed with the banks under the loan facility, including an extension of the final maturity date by four years. At December 31, 2018 , the balance outstanding under this facility was $241.5 million ( 2017 : $308.8 million ) and, the available amount under the revolving part of the facility was $ nil ( 2017 : $ nil ). The Company guaranteed $102.5 million of this debt at December 31, 2018 ( 2017 : $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. Summarized balance sheet information of the Company's equity method investees is as follows: As of December 31, 2018 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 58,089 19,558 16,858 21,673 Non-current assets 967,954 302,362 290,370 375,222 Total assets 1,026,043 321,920 307,228 396,895 Current liabilities 69,181 18,252 19,487 31,442 Non-current liabilities (1) 931,755 297,060 281,627 353,068 Total liabilities 1,000,936 315,312 301,114 384,510 Total shareholders' equity (2) 25,107 6,608 6,114 12,385 As of December 31, 2017 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 97,723 26,242 29,152 42,329 Non-current assets 1,020,067 317,450 305,852 396,765 Total assets 1,117,790 343,692 335,004 439,094 Current liabilities 106,628 25,642 29,443 51,543 Non-current liabilities (1) 1,000,484 315,415 302,819 382,250 Total liabilities 1,107,112 341,057 332,262 433,793 Total shareholders' equity (2) 10,678 2,635 2,742 5,301 (1) SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2018 , include $109.0 million ( 2017 : $113.0 million ), $80.0 million ( 2017 : $80.0 million ) and $121.0 million ( 2017 : $121.0 million ) due to Ship Finance, respectively (see Note 24: Related party transactions). In addition, SFL Hercules and SFL Linus current liabilities at December 31, 2018 , include a further $10.1 million and $21.7 million due to Ship Finance. SFL Deepwater balance was $nil ( 2017 : $0.1 million , $3.6 million and $0.2 million ) due to Ship Finance (see Note 24: Related party transactions). (2) In the year ended December 31, 2018 , SFL Deepwater, SFL Hercules and SFL Linus did not pay any dividends ( 2017 : $3.4 million ; 2016 : $46.3 million ), ( 2017 : $3.8 million ; 2016 : $25.1 million ), ( 2017 : $7.3 million ; 2016 : $42.1 million ), respectively. Summarized statement of operations information of the Company's wholly-owned equity method investees is shown below. Year ended December 31, 2018 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Operating revenues 64,572 19,594 19,126 25,852 Net operating revenues 64,410 19,540 19,049 25,821 Net income (3) 14,635 3,973 3,372 7,290 Year ended December 31, 2017 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Operating revenues 73,487 20,873 21,827 30,787 Net operating revenues 73,487 20,873 21,827 30,787 Net income (3) 23,766 5,981 6,462 11,323 Year ended December 31, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus 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 (3) The net income of SFL Deepwater, SFL Hercules and SFL Linus for the year ended December 31, 2018 , includes interest payable to Ship Finance amounting to $5.1 million ( 2017 : $5.4 million ; 2016 : $6.5 million ), $3.6 million ( 2017 : $4.3 million ; 2016 : $6.5 million ), and $5.4 million ( 2017 : $5.5 million ; 2016 : $5.6 million ), respectively (see Note 24: 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 part of the Restructuring Plan, the financial covenants on Seadrill were replaced by financial covenants on a newly established subsidiary of Seadrill, who also acts as guarantor for the obligations under the leases for the three drilling units, on a subordinated basis to the senior secured lenders in Seadrill and new secured notes. As at December 31, 2018 , Ship Finance and Seadrill were in compliance with all of the applicable covenants under these long-term debt facilities. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES (in thousands of $) 2018 2017 Vessel operating expenses 5,395 6,111 Administrative expenses 628 552 Interest expense 6,487 6,688 12,510 13,351 |
OTHER CURRENT LIABILITIES OTHER
OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES (in thousands of $) 2018 2017 Deferred and prepaid charter revenue 7,562 3,936 Employee taxes 195 18 Other items 575 1,739 8,332 5,693 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT (in thousands of $) 2018 2017 Long-term debt: 3.25% senior unsecured convertible bonds due 2018 — 63,218 Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 77,722 92,477 Norwegian kroner 500 million senior unsecured floating rate bonds due 2020 57,829 61,001 5.75% senior unsecured convertible bonds due 2021 212,230 225,000 Norwegian kroner 600 million senior unsecured floating rate bonds due 2023 69,395 — 4.875% senior unsecured convertible bonds due 2023 151,700 — U.S. dollar denominated floating rate debt due through 2025 891,471 1,081,204 Total debt principal 1,460,347 1,522,900 Less : unamortized debt issuance costs (23,267 ) (18,893 ) Less : current portion of long-term debt (267,149 ) (313,823 ) Total long-term debt 1,169,931 1,190,184 The outstanding debt as of December 31, 2018 , is repayable as follows: Year ending December 31, (in thousands of $) 2019 267,149 2020 196,093 2021 463,516 2022 199,466 2023 321,830 Thereafter 12,293 Total debt principal 1,460,347 The weighted average interest rate for consolidated floating rate debt denominated in U.S. dollars and Norwegian kroner ("NOK") as at December 31, 2018 , was 4.22% per annum including margin ( 2017 : 4.26% ). This rate takes into consideration the effect of related interest rate swaps. At December 31, 2018 , the three month US Dollar London Interbank Offered Rate ("LIBOR") was 2.808% ( 2017 : 1.694% ) and the three month Norwegian Interbank Offered Rate ("NIBOR") was 1.27% ( 2017 : 0.81% ). 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 10 banking days prior to February 1, 2018 . Subject to adjustment for any dividend payments in the future, the conversion price at the time of issue was $21.945 per share which represented a premium of approximately 33% to the share price at the time. In October 2017, the Company entered into separate privately negotiated transactions with certain holders of the bonds and converted principal amounts totaling $121.0 million of the outstanding bonds into 9,418,798 common shares. The Company had previously purchased and canceled bonds with principal amounts totaling $165.8 million in October 2016. The net amount outstanding at December 31, 2018 , was $nil ( 2017 : $63.2 million ). No gain or loss was recorded in the year ended December 31, 2018 in respect of the equity conversions ( 2017 : a loss of $1.5 million was recorded in the year ended December 31, 2017 on the purchase and cancellation of bonds; 2016 : $8.8 million ). 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, the largest shareholder of the Company, for a one-time loan fee of $1.0 million . In February 2018, the Company redeemed the full outstanding amount of $63.2 million . This was fully paid in cash, and the premium settled in common shares with the issuance of 651,365 new shares. 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 $0.1 million in the year ended December 31, 2018 ( 2017 : $1.8 million ). The equity component of the converted bonds in 2018 was valued at $nil ( 2017 : $16.4 million for the purchased and canceled bonds) and this amount has been deducted from "Additional paid-in capital". NOK900 million senior unsecured bonds due 2019 On March 19, 2014 , the Company issued a senior unsecured bond loan totaling NOK900.0 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, 2018 , the Company has purchased bonds with principal amounts totaling NOK228.0 million ( 2017 : NOK142.0 million ), which are being held as treasury bonds. The net amount outstanding at December 31, 2018 , was NOK672.0 million , equivalent to $77.7 million ( 2017 : NOK758.0 million , equivalent to $92.5 million ). NOK500 million senior unsecured bonds due 2020 On June 22, 2017 , the Company issued a senior unsecured bond loan totaling NOK500.0 million in the Norwegian credit market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on June 22, 2020 . The net amount outstanding at December 31, 2018 , was NOK500.0 million , equivalent to $57.8 million ( 2017 : NOK500.0 million , equivalent to $61.0 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 net amount outstanding at December 31, 2018 was $212.2 million ( 2017 : $225.0 million ). 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 62.9233 common shares per $1,000 bond, equivalent to a conversion price of approximately $15.8924 per share. Based on the closing price of our common stock of $10.53 on December 31, 2018 , the if-converted value was less than the principal amounts by $77.5 million . In December 2018 , the Company purchased bonds with principal amounts totaling $12.8 million ( 2017 : $nil ) resulting in a gain of $0.9 million being recorded ( 2017 : $nil ; 2016 : $nil ). 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, 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 and received $80,000 from Hemen upon the return of the borrowed shares. 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 in 2016 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 equity component was valued at $4.1 million in 2018. The amortization of this item amounted to $0.9 million in the year ended December 31, 2018 ( 2017 : $0.9 million ). As a result of the purchase of bonds with principal amounts totaling $12.8 million ( 2017 : $nil ), a total of $0.5 million ( 2017 : $nil ) was allocated as the reacquisition of the equity component. NOK600 million senior unsecured bonds due 2023 On September 13, 2018 the Company issued a senior unsecured bond totaling NOK600 million in the Norwegian credit market. The bonds bear quarterly interest at NIBOR plus a margin and are redeemable in full on September 13, 2023. The net amount outstanding at December 31, 2018 , was NOK600 million , equivalent to $69.4 million ( 2017 : NOKnil , equivalent to $nil ). 4.875% senior unsecured convertible bonds due 2023 On April 23, 2018 , the Company issued a senior unsecured convertible bond totaling $150.0 million . Additional bonds were issued on May 4, 2018 at a principal amount of $14.0 million . Interest on the bonds is fixed at 4.875% 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 and mature on May 1, 2023 . The net amount outstanding at December 31, 2018 was $151.7 million ( December 31, 2017 : $nil ). The initial conversion rate at the time of issuance was 52.8157 common shares per $1,000 bond, equivalent to a conversion price of approximately $18.93 per share. Since the issuance, dividend distributions have increased the conversion rate to 58.7171 common shares per $1,000 bond, equivalent to a conversion price of approximately $17.03 per share. Based on the closing price of our common stock of $10.53 on December 31, 2018 , the if-converted value was less than the principal amounts by $65.5 million . In December 2018 , the Company purchased bonds with principal amounts totaling $12.3 million ( 2017 : $nil ). A gain of $0.4 million was recorded on the transaction ( 2017 : $nil ; 2016 : $nil ). In conjunction with the bond issue, the Company agreed to loan up to 7,000,000 of its common shares to affiliates of the underwriters of the issue, in order to assist investors in the bonds to hedge their position. As at December 31, 2018 , a total of 3,765,842 shares were issued from up to 7,000,000 shares issuable under a share lending arrangement. 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 $7.9 million at issue date 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 $1.0 million in the year ended December 31, 2018 ( 2017 : $nil ). As a result of the purchase of bonds with principal amounts totaling $12.3 million ( 2017 : $nil ), a total of $0.6 million ( 2017 : $nil ) was allocated as the reacquisition of the equity component. $50 million secured term credit facility In June 2018 , 15 wholly-owned subsidiaries of the Company entered into a $50.0 million secured term loan facility with a bank, secured against 15 feeder size container vessels. The 15 vessels were delivered in April 2018 . The Company has provided a 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, 2018 , was $46.9 million ( 2017 : $nil ). $17.5 million secured term loan facility due 2023 In December 2018 , two wholly-owned subsidiaries of the Company entered into a $17.5 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 approximately five years. The net amount outstanding at December 31, 2018 , was $17.5 million ( 2017 : $nil ). $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, 2018 , was $17.8 million ( 2017 : $20.6 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, 2018 , was $17.8 million ( 2017 : $20.6 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 had a term of approximately eight years. This was fully repaid in December 2018. The net amount outstanding at December 31, 2018 , was $nil ( 2017 : $26.3 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, 2018 , was $32.7 million ( 2017 : $39.0 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, 2018 , was $73.7 million ( 2017 : $98.0 million ). $45 million secured term loan and revolving credit facility In June 2014, seven wholly-owned subsidiaries of the Company entered into a $45.0 million secured term loan and revolving credit facility with a bank, secured against seven 4,100 TEU container vessels. The facility bears interest at LIBOR plus a margin and has a term of five years. At December 31, 2018 , the available amount under the revolving part of the facility was $nil ( 2017 : $9.0 million ). The net amount outstanding at December 31, 2018 , was $45.0 million ( 2017 : $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. One of the vessels was sold in February 2016 and the facility now relates to the remaining five 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. In October 2017, certain amendments were made to the agreement, including an extension of the final maturity date until January 2023. The net amount outstanding at December 31, 2018 , was $44.1 million ( 2017 : $ 44.1 million ). $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, 2018 , was $20.0 million ( 2017 : $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, 2018 , was $92.4 million ( 2017 : $100.9 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, 2018 was $95.6 million ( 2017 : $104.1 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, 2018 , was $26.7 million ( 2017 : $29.1 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. Eight of the tankers were sold and delivered to their new owners prior to December 31, 2017, and the facility was secured against the remaining nine tankers at December 31, 2017 . The facility bore interest at LIBOR plus a margin and had a term of three years before repayment in December 2018. At December 31, 2018 , the available amount under the facility was $ nil ( 2017 : $nil ). The net amount outstanding at December 31, 2018 , was $nil ( 2017 : $149.0 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. 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, 2018 was $117.9 million ( 2017 : $131.7 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 finance the acquisition of three 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, 2018 , the net amount outstanding was $173.9 million ( 2017 : $187.0 million ). $76 million secured term loan facility In August 2017, two wholly-owned subsidiaries of the Company entered into a $76.0 million secured term loan facility with a bank, secured against two product tanker vessels. The two vessels were delivered in August 2017. 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 . At December 31, 2018 , the net amount outstanding was $69.5 million ( 2017 : $74.7 million ). The aggregate book value of assets pledged as security against borrowings at December 31, 2018 , was $1,527 million ( 2017 : $1,908 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, 2018 , the Company is in compliance with all of the covenants under its long-term debt facilities. In addition, the $101.4 million secured term loan facility entered into in August 2014 contains certain financial covenants on Solship. As at December 31, 2018 , Solship was in compliance with all covenants under the loan agreement. |
OTHER LONG TERM LIABILITIES
OTHER LONG TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG TERM LIABILITIES | CAPITAL LEASE OBLIGATIONS AND OTHER LONG-TERM LIABILITIES (in thousands of $) 2018 2017 Unamortized sellers' credit 3,282 3,958 Other items 4 4 3,286 3,962 The unamortized seller's credit is in respect of the five offshore support vessels on long-term bareboat charters to the Solstad Charterer, a wholly owned subsidiary of Deep Sea Supply AS, which in turn is a wholly owned subsidiary of Solship (formerly Deep Sea). Solship is a wholly owned subsidiary of Solstad Offshore ASA. Between 2007 and 2008, the Company acquired seven offshore support vessels from subsidiaries of then Deep Sea, which were chartered back to the subsidiaries under bareboat charter agreements. As part of the purchase consideration, the Company received seller's credits totaling $39.5 million which are being recognized as additional bareboat revenues over the period of the charters. One of the vessels was sold in January 2008 and the other vessel was sold in February 2016. (in thousands of $) 2018 2017 Current portion of obligations under capital leases 67,793 9,031 Obligations under capital leases - long-term portion 1,104,258 230,576 1,172,051 239,607 In October 2015, the Company entered into agreements to charter in two 19,200 TEU newbuildings 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 vessel was delivered in December 2016 and the second vessel was delivered in March 2017. Both vessels are accounted for as direct financing lease assets. In December 2018, the Company entered into agreements to charter in a further two 19,400 TEU container vessels on a bareboat basis, each for a period of 15 years, and to charter out each vessel for the same 15 -year period on a bareboat basis to MSC, an unrelated party. The vessels were delivered in December 2018 and both are accounted for as direct financing lease assets. In the second, third and fourth quarter of 2018, the Company acquired four 13,800 TEU container vessels and three 10,600 TEU container vessels, which were subsequently refinanced with an Asian based financial institution by entering into separate sale and leaseback financing arrangements. The vessels are leased back for terms ranging from six to 11 years , with options to purchase the vessel after six years. Due to the terms of the sale and leaseback arrangements, each option is expected to be exercised on the sixth anniversary. These sale and leaseback transactions were accounted for as capital leases (Refer Note 14: Vessels under capital lease, net). The Company's future minimum lease obligations under the non-cancellable capital leases are as follows: Year ending December 31, (in thousands of $) 2019 130,169 2020 126,868 2021 126,726 2022 126,726 2023 126,726 Thereafter 976,801 Total lease obligations 1,614,016 Less: imputed interest payable (441,965 ) Present value of obligations under capital leases 1,172,051 Less: current portion (67,793 ) Obligations under capital leases - long-term portion 1,104,258 Interest incurred on capital leases was $21.8 million (2017: $16.0 million ; 2016: $0.2 million ). |
SHARE CAPITAL, ADDITIONAL PAID-
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 200,000,000 common shares of $0.01 par value each (2017: 150,000,000 common shares of $0.01 par value each) 2,000 1,500 Issued and fully paid share capital is as follows: (in thousands of $, except share data) 2018 2017 119,373,064 common shares of $0.01 par value each (2017: 110,930,873 common shares of $0.01 par value each) 1,194 1,109 The Company's common shares are listed on the New York Stock Exchange. During the year ended December 31, 2018 , the Company issued a total of no new shares of $0.01 each following the exercise of share options ( 2017 : 7,500 new shares of $0.01 issued to satisfy options exercised). The weighted average exercise price of the options exercised in 2017 was $11.78 per share resulting in a premium on issue of $0.1 million . In November 2016, the Board of Directors renewed the Ship Finance International Limited Share Option Scheme (the "Option Scheme"), originally approved in November 2006. 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 23: Share option plan). At the Annual General Meeting of the Company in September 2018, a resolution was passed to approve an increase of the Company’s authorized share capital from $ 1,500,000 divided into 150,000,000 common shares of $0.01 par value each to $2,000,000 divided into 200,000,000 common shares of $0.01 par value each by the authorization of an additional 50,000,000 common shares of $0.01 par value each. In May 2018 , the Company issued a total of 4,024,984 new shares as part of the consideration paid for the acquisition of four 2014 built container vessels, each with 13,800 TEU carrying capacity. The vessels are employed under long-term time-charters to an unrelated third party (see Note 13: Vessels and equipment, net). In April 2018 , the Company issued a total of 3,765,842 new shares of par value $0.01 each from up to 7,000,000 issuable under a share lending arrangement in relation with the Company's issuance of 4.875% senior unsecured convertible bonds in April and May 2018. The shares issued have been loaned to affiliates of the underwriters of the bond issue in order to assist investors in the bonds to hedge their position. The bonds are convertible into common shares and mature on May 1, 2023. 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 $ 7.9 million at issue date and recorded as "Additional paid-in capital" (see Note 20: Short-term and long-term debt). In December 2018, the Company purchased bonds with principal amounts totaling $12.3 million (2017: $nil ). The equity component of these extinguished bonds was valued at $0.6 million (2017: $nil ) and has been deducted from "Additional paid-in capital". In February 2018 , the Company redeemed the full outstanding amount under the 3.25% senior unsecured convertible bonds due 2018. The remaining outstanding principal amount of $63.2 million was paid in cash, and the premium settled in common shares with the issue of 651,365 new shares (see Note 20: Short-term and long-term debt). In October 2017, the Company issued a total of 9,418,798 new shares following separate privately negotiated transactions with certain holders of the 3.25% senior unsecured convertible bonds due 2018 for the conversion of a principal amount of $121.0 million from the outstanding balance of the convertible bonds. 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. 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 20: Short-term and long-term debt). Previously in October 2016, the Company purchased and canceled bonds with principal amounts totaling $165.8 million . The equity component of the converted bonds in 2018 was valued at $nil ( 2017 : $16.4 million for the purchased and canceled bonds) and this amount has been deducted from "Additional paid-in capital". In November 2016, in relation with the Company's issue in October 2016 of senior unsecured convertible bonds totaling $225 million , 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. 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 62.9233 , equivalent to a conversion price of approximately $15.8924 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 $4.1 million and recorded as "Additional paid-in capital" (see Note 20: Short-term and long-term debt). In December 2018, the Company purchased bonds with principal amounts totaling $12.8 million (2017: $nil ). The equity component of these extinguished bonds was valued at $0.5 million (2017: $nil ) and has been deducted from "Additional paid-in capital". 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. |
SHARE OPTION PLAN
SHARE OPTION PLAN | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE OPTION PLAN | SHARE OPTION PLAN In November 2006, the Board of Directors approved the Ship Finance International Limited Share Option Scheme (the "Option Scheme"). The Option Scheme will expire in November 2026, following the renewal in November 2016. The terms and conditions remain unchanged from those originally adopted in November 2006 and 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. As of December 31, 2018 additional paid-in capital was credited with $0.5 million relating to the fair value of options granted in March 2016, September 2017 and April 2018. As of December 31, 2018 no options were exercised under the Option Scheme. During the year ended December 31, 2018 , the Company awarded a total of 83,000 options to officers and employees, pursuant to the Company's Share Option Scheme. The options have a five year term and a three year vesting period and the first options will be exercisable from April 2019 onwards. The initial strike price was $14.67 per share. The following summarizes share option transactions related to the Option Scheme in 2018 , 2017 and 2016 : 2018 2017 2016 Options Weighted average exercise price $ Options Weighted average exercise price $ Options Weighted average exercise price $ Options outstanding at beginning of year 369,500 12.20 279,000 13.03 125,000 12.56 Granted 83,000 14.67 113,000 14.30 279,000 14.38 Exercised — — (7,500 ) 11.78 (125,000 ) 12.11 Forfeited (35,000 ) 10.03 (15,000 ) 11.78 — — Options outstanding at end of year 417,500 11.43 369,500 12.20 279,000 13.03 Exercisable at end of year 111,500 10.03 85,500 11.43 — — 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 fair value of options granted in 2018 was $3.49 per share as at grant date ( 2017 : $3.77 ; 2016 : $3.06 ). The weighted average assumptions used to calculate the fair values of the new options granted in 2018 were (a) risk free interest rate of 2.63% ( 2017 : 1.58% ; 2016 : 1.08% ); (b) expected share price volatility of 29.5% ( 2017 : 33.0% ; 2016 : 31.3% ); (c) expected dividend yield of 0% ( 2017 : 0% ; 2016 : 0% ) and (d) expected life of options 3.5 years ( 2017 : 3.5 years ; 2016 : 3.5 years ). The total intrinsic value of options exercised in 2018 was $nil on the day of exercise ( 2017 : $0.02 million ; 2016 : $0.3 million ). The total amount of cash received from options exercised in 2018 was $nil ( 2017 : $0.1 million ; 2016 : $0.1 million ). As of December 31, 2018 , there are 111,500 options fully vested but not exercised ( 2017 : 85,500 options; 2016 : nil options) and their intrinsic value amounted to $nil ( 2017 : $0.3 million ; 2016 : $nil ). The weighted average remaining term of the vested exercisable options is 2.7 years as of December 31, 2018 . As of December 31, 2018 , the unrecognized compensation costs relating to non-vested options granted under the Option Scheme was $0.3 million ( 2017 : $0.5 million ; 2016 : $0.5 million ) and their intrinsic value amounted to $nil ( 2017 : $0.9 million ; 2016 : $0.5 million ). This cost will be recognized over the remaining vesting periods, which average 1.4 years ( 2017 : 2.0 years ; 2016 : 2.2 years ). During the year ended December 31, 2018 , the Company recognized an expense of $0.5 million in compensation cost relating to the stock options ( 2017 : $0.4 million ; 2016 : $0.4 million ). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company has had transactions with the following related parties, being companies in which our principal shareholder Hemen and companies associated with Hemen have, or had, a significant direct or indirect interest: – Frontline – Frontline Shipping – Seadrill – Golden Ocean – United Freight Carriers ("UFC" - which is a joint venture approximately 50% owned by Golden Ocean) – Deep Sea Supply Plc. ("Deep Sea") (1) – Seatankers Management Co. Ltd. ("Seatankers") – NorAm Drilling – Golden Close – Sterna Finance – ADS Crude Carriers Plc ("ADS") (1) From October 2017, Deep Sea was determined to no longer be a related party (see below). The Consolidated Balance Sheets include the following amounts due from and to related parties, excluding direct financing lease balances (see Note 16: Investments in direct financing and sales type leases): (in thousands of $) 2018 2017 Amounts due from: Frontline Shipping 1,225 — Frontline 8,430 5,579 Deep Sea — — Seadrill 223 — SFL Linus 21,718 3,559 SFL Deepwater — 171 SFL Hercules 10,125 97 Golden Ocean 50 153 Other related parties — 66 Total amount due from related parties 41,771 9,625 Loans to related parties - associated companies, long-term SFL Deepwater 109,144 113,000 SFL Hercules 80,000 80,000 SFL Linus 121,000 121,000 Total loans to related parties - associated companies, long-term 310,144 314,000 Long-term receivables from related parties Frontline 11,170 — Frontline Shipping 4,446 — Total long-term receivables from related parties 15,616 — Amounts due to: Frontline Shipping 1,125 539 Frontline 125 147 Seatankers — 60 Golden Ocean 91 — Other related parties 8 111 Total amount due to related parties 1,349 857 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, 2018 . As described below in "Related party loans", at December 31, 2018 and 2017 , 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 One of the Company's offshore support vessels ( 2017 : one ) accounted for as a direct finance lease and four of the Company's offshore support vessels ( 2017 : four ) accounted for as operating leases were employed under long term charters to a subsidiary of Deep Sea. In June 2017, Deep Sea completed a merger with Solstad Offshore ASA and Farstad Shipping ASA, creating Solstad Farstad, with Hemen's shareholding in Solstad Farstad being below 20% . In October 2018, Solstad Farstad changed its name to Solstad Offshore ASA ("Solstad").The Company determined that Solstad was not a related party as a result of the merger. Following the merger, Solship (formerly Deep Sea), a wholly owned subsidiary of Solstad Farstad, acts as charter guarantor under the long term charter agreements. As at December 31, 2018 , three of the Company's vessels leased to Frontline Shipping ( 2017 : nine ) are recorded as direct financing leases. In addition, at December 31, 2018 , eight dry bulk carriers were leased to a subsidiary of Golden Ocean under operating leases. At December 31, 2018 , the balance of net investments in direct financing leases with Frontline Shipping was $115.0 million ( 2017 : $314.0 million ) of which $8.0 million ( 2017 : $22.3 million ) represents short-term maturities. At December 31, 2018 , the net book value of assets leased under operating leases to Golden Ocean was $217.7 million ( 2017 : $233.7 million ). 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 2016. A summary of leasing revenues earned from the Frontline Shipping, Deep Sea, Golden Ocean and UFC is as follows: (in millions of $) 2018 2017 2016 Operating lease income 53.3 59.4 65.3 Direct financing lease interest income 9.6 16.4 22.9 Finance lease service revenue 22.1 35.0 44.5 Direct financing lease repayments 16.8 25.1 30.3 Profit sharing revenues 1.8 5.8 51.5 In June 2015, amendments were made to the charter agreements relating to 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, and also an increase in the profit sharing percentage (see below). A dividend restriction was introduced on Frontline Shipping whereby it can only make distributions to its parent company if it can demonstrate it meets certain conditions. In February 2016, Frontline enacted a 1-for-5 reverse stock split of its ordinary shares, and the Company's holding in Frontline consists of 11 million ordinary shares. In the year ended December 31, 2018 , the Company received dividend income totaling $nil ( 2017 : $3.3 million ; 2016 : $11.6 million ) on these shares. Frontline Shipping pays the Company profit sharing of 50% of their earnings on a time-charter equivalent basis from their use of the Company's fleet above average threshold charter rates calculated on a quarterly basis. The Company earned and recognized profit sharing revenue under the 50% arrangement of $1.5 million in the year ended December 31, 2018 ( 2017 : $5.6 million ; 2016 : $50.9 million ). In the event that vessels on charter to the Frontline Shipping are agreed to be sold, the Company may either pay or receive compensation for the early termination of the lease. In the year ended December 31, 2018 , the Company sold the VLCC Front Circassia to an unrelated third party. The vessel was delivered to the new owner in February 2018, and a termination fee of $4.4 million at fair value was received from Frontline Shipping in the form of a loan note. The loan note bears interest at a rate of 7.5% and matures in December 2021. The Company also sold the VLCCs Front Page, Front Stratus and Front Serenade to a related third party. The vessels were delivered to the new owner, ADS, in July 2018, August 2018 and September 2018, respectively, and an aggregate termination fee of $10.1 million at fair value was received from Frontline in the form of three loan notes. The loan notes bear interest at a rate of 7.5% and mature between November 2024 and May 2025. In October 2018, the Company sold the VLCC Front Ariake to an unrelated third party. The vessel was delivered to the new owner in October 2018 and a termination fee of $3.4 million at fair value was received from Frontline in the form of a loan note. The loan note bears interest at a rate of 7.5% and matures in November 2023. In March 2017, May 2017, June 2017 and August 2017, Front Century, Front Brabant, Front Scilla and Front Ardenne on charter to Frontline Shipping were sold and their leases canceled, with agreed termination fees received of $4.1 million , $3.6 million , $6.5 million and $4.8 million , respectively. 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 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. From October 2017, due to the merger of Deep Sea, Solstad Offshore ASA and Farstad Shipping ASA, this loan note is no longer considered a related party receivable. The Company received $0.4 million interest on the loan note in 2017 up until it was considered a related party receivable ( 2016 : $0.9 million ). In the year ended December 31, 2018 , 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, 2018 , the Company earned $0.2 million income under this arrangement ( 2017 : $0.2 million ; 2016 : $ nil ). Until their short-term charters ended on the relevant dates during 2016 , 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. As at December 31, 2018 , the Company was owed a total of $1.2 million ( 2017 : owes $0.3 million ) to Frontline Shipping in respect of leasing contracts and profit share. At December 31, 2018 , the Company was owed $8.4 million ( 2017 : $5.6 million ) by Frontline in respect of various short-term items, including vessel management fees and items relating to the operation of vessels trading in a pool with two vessels owned by Frontline. At December 31, 2018 , the Company was owed $21.7 million ( 2017 : $3.6 million ), $nil ( 2017 : $0.2 million ) and $10.1 million ( 2017 : $0.1 million ) by SFL Linus, SFL Deepwater and SFL Hercules respectively in addition to the loan due to the Company - 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. 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, 2018 , the Company also had 15 container vessels, 14 dry bulk carriers, two Suezmax tankers, two car carriers and two product tankers operating on time charter or in the spot market, for which the supervision of the technical management was sub-contracted to Frontline Management. Management fees incurred are included in the table below. 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, 2018 , the Company had 15 container vessels and 14 dry bulk carriers operating on time-charters, for which part of the operational management was sub-contracted to Golden Ocean Management. Management fees incurred are included in the table below. Management fees are classified as vessel operating expenses in the consolidated statements of operations. In addition to leasing revenues and repayments, the Company incurred fees with related parties. 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 and its subsidiaries, a management fee of 1.25% of chartering revenues. The Company paid fees to Frontline Management for administrative services, including corporate services, and fees to Seatankers for the provision of advisory and support services. The Company also pays fees to Frontline Management for the management supervision of some of its newbuildings. The Company paid fees to Seatankers Management Norway AS for the provision of office facilities in Oslo, and fees to Frontline Corporate Services Ltd for the provision of office facilities in London. Fees incurred for these services are as follows: Year ended (in thousands of $) December 31, 2018 December 31, 2017 December 31, 2016 Frontline: Vessel Management Fees 24,033 36,536 45,931 Newbuilding Supervision Fees — 979 — Commissions and Brokerage 287 269 390 Administration Services Fees 323 335 576 Golden Ocean: Vessel Management Fees 20,440 20,440 20,496 Operating Management Fees 793 738 795 Seatankers: Administration Services Fees 290 82 315 Office Facilities: Seatankers Management Norway AS 108 105 — Frontline Management AS 185 136 317 Frontline Corporate Services Ltd 166 173 235 As at December 31, 2018 , the Company owes Frontline Management and Frontline Management AS a combined total of $0.1 million ( 2017 : $0.1 million ) for various items, including technical supervision fees and office costs. At December 31, 2018 , the Company also owes Seatankers $nil ( 2017 : $0.1 million ) 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, 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 and received $80,000 from Hemen. In the year ended December 31, 2017 , in addition to the above, the Company also paid $0.4 million to a subsidiary of Seadrill for the provision of management services for the jack-up drilling rig Soehanah. 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. The net outstanding loan balances as at December 31, 2018 , were $109.0 million , $80.0 million , and $121.0 million for SFL Deepwater, SFL Hercules and SFL Linus, respectively. 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 addition to this, as at December 31, 2018 the Company has current receivables of $nil , $10.1 million , $21.7 million from SFL Deepwater, SFL Hercules and SFL Linus, respectively ( 2017 : $0.2 million ; $0.1 million ; $3.6 million , respectively). In the year ended December 31, 2018 , the Company received interest income on these loans of $5.1 million from SFL Deepwater ( 2017 : $5.4 million ; 2016 : $6.5 million ), $3.6 million from SFL Hercules ( 2017 : $4.3 million ; 2016 : $6.5 million ) and $5.4 million from SFL Linus ( 2017 : $5.5 million ; 2016 : $5.6 million ) totaling $14.1 million ( 2017 : $15.2 million ; 2016 : $18.7 million ). Related party purchases and sales of vessels In the year ended December 31, 2018 , the VLCCs Front Page , Front Stratus and Front Serenade which were accounted for as direct financing lease assets, were sold to a related party, ADS Crude Carriers Plc. ("ADS"). Gains of $0.3 million , $0.2 million and $0.3 million were recorded on the disposal of the vessels, respectively. The gross proceeds from the sale was $22.5 million per vessel in addition to compensation, in the form of loan notes of $3.4 million each, received for the early termination of the charters. No vessels were acquired from or sold to related parties in the year ended December 31, 2017 . Long-term receivables from related parties The Company received a loan note from Frontline Shipping as compensation for the early termination of the charter of Front Circassia in February 2018. The initial face value of the note was $8.9 million , however, Ship Finance recorded the loan note at an initial fair market value of $4.4 million . The loan note bears interest at a rate of 7.5% and matures in December 2021. In the year ended December 31, 2018 , the Company received interest income on this loan note of $0.5 million . The Company received loan notes from Frontline as compensation for the early termination of the charter of Front Page, Front Stratus and Front Serenade in July, August and September 2018, respectively. The face value of the notes is $3.4 million each, and bears interest at a rate of 7.5% . The loan notes mature in between November 2024 and May 2025. In the year ended December 31, 2018 , the Company received interest income on these loan notes of $0.3 million . The Company received a loan note from Frontline as compensation for the early termination of the charter of Front Ariake in October 2018. The initial face value of the note was $3.4 million and bears interest at a rate of 7.5% . The note matures in December 2023. In the year ended December 31, 2018 , the Company received interest income on this loan note of $0.1 million . Other related party transactions In May 2018, four wholly-owned subsidiaries of the Company entered into a $320.0 million unsecured loan facility provided by an affiliate of Hemen, Sterna Finance. The unsecured intermediary loan facility was entered into to partly fund the acquisition of four 13,800 TEU container vessels acquired in May 2018. The Company had provided a corporate guarantee for this loan facility, which had a fixed interest rate, was non-amortizing and had a term of 13 months from the drawdown date of the loan. Interest expense incurred on the loan in the year ended December 31, 2018 was $6.4 million . The loan balance was prepaid in full in November 2018. In August 2018, the Company acquired 4,031,800 shares in ADS, a newly formed company trading on the Oslo Merkur Market. The shares were purchased for $10.0 million , and have a fair value of $9.2 million at December 31, 2018 (see Note 11: Investments in debt and equity securities). These shares, on which no dividend income was received in the year ended December 31, 2018 , represent 17.24% of the outstanding shares in the company. In November 2016, the Company acquired approximately 12 million shares in NorAm Drilling for a consideration of approximately $0.7 million . In November 2018 NorAm undertook a share consolidation of 20 :1, resulting in a revised investment of 601,023 shares. On the same day NorAm participated in a rights issue, increasing the Company's investment in shares by 623,447 shares. In December 2018, the Company acquired an additional 41,756 shares bringing the total investment in NorAm to 1,266,226 shares with a fair value of $3.9 million . This investment, on which no dividend was received in the year ended December 31, 2018 , is included in "Investments in debt and equity securities" (Note 11) ( 2017 : $nil ; 2016 : $nil ). The Company also holds within "Investments in Debt and Equity Securities" senior secured corporate bonds in NorAm Drilling due 2021. During the year ended December 31, 2018 , the Company redeemed a total of 466,667 units at par value and recorded no gain or loss on redemption. This investment is included in Note 11: Investments in debt and equity securities. Interest amounting to $0.5 million was earned in the year ended December 31, 2018 ( 2017 : $0.5 million ; 2016 : $0.5 million ). In addition, the Company earned other income of $nil in the year ended December 31, 2018 , ( 2017 : $0.1 million ; 2016 : $nil ). During the year ended December 31, 2018 , Golden Close initiated liquidation proceedings. As a result of this, the Company received total proceeds of $45.6 million in settlement of its total investment, resulting in an overall net gain of $13.5 million . The Company earned interest income on the Golden Close notes up to the date of redemption of $0.2 million in the year ended December 31, 2018 ( 2017 : $0.6 million ; 2016 : $0.2 million ). As at December 31, 2018 , the net investment in Golden Close debt and equity securities is $nil ( 2017 : $28.5 million ). In June 2017, the Company facilitated a performance guarantee in favour of an oil company relating to a contract for the drillship Deepsea Metro 1 . The guarantee had a maximum liability limited to $18.0 million , a maturity of up to six months, and was secured under a first lien mortgage over the drillship, ranking ahead of other secured claims. In the year ended December 31, 2017 , the Company recorded net fee income of $0.4 million for facilitating the guarantee. The performance guarantee agreement was terminated in September 2017. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 $) 2018 2017 Designated derivative instruments -short-term assets: Interest rate swaps — 108 Non-designated derivative instruments -short-term assets: Cross currency interest rate swaps 5,279 — Total derivative instruments - short-term assets 5,279 108 Designated derivative instruments -long-term assets: Interest rate swaps 5,459 5,136 Non-designated derivative instruments -long-term assets: Interest rate swaps 5,174 3,211 Total derivative instruments - long-term assets 10,633 8,347 (in thousands of $) 2018 2017 Designated derivative instruments -short-term liabilities: Interest rate swaps — 248 Cross currency interest rate swaps 33,004 — Non-designated derivative instruments -short-term liabilities: Interest rate swaps — 255 Cross currency interest rate swaps 12,043 — Total derivative instruments - short-term liabilities 45,047 503 Designated derivative instruments -long-term liabilities: Interest rate swaps 1,811 5,109 Cross currency interest rate swaps 4,709 36,120 Cross currency swaps 9,607 — Non-designated derivative instruments -long-term liabilities: Interest rate swaps 86 553 Cross currency interest rate swaps — 6,836 Total derivative instruments - long-term liabilities 16,213 48,618 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, 2018 , 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 $11,130 (remaining at $11,130) May 2011 January 2019 2.08% - 2.58% $100,000 (remaining at $100,000) August 2011 August 2021 2.50% - 2.93% $121,133 (terminating at $79,733) May 2012 August 2022 1.76% - 1.85% $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 % * $92,438 (reducing to $70,125) December 2016 December 2021 2.29% - 2.63% $95,625 (reducing to $70,125) January 2017 January 2022 2.12% - 2.58% $26,693 (reducing to $19,413) September 2015 March 2022 1.67 % $173,906 (reducing to $149,844) February 2016 February 2021 1.07% - 1.26% $63,987 (equivalent to NOK500 million) October 2017 March - June 2020 6.86% - 6.96% * $16,833 (equivalent to NOK100 million) September 2018 March 2019 6.03 % † * These swaps relate to the NOK900 million and NOK500 million unsecured bonds due 2019 and 2020, respectively, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. † This swap relates to the NOK900 million unsecured bond due 2019, where NIBOR plus a margin is paid in exchange for a fixed interest rate. For the remaining swaps, the fixed interest rate paid is exchanged for LIBOR, excluding margin on the underlying loans. The total net notional principal amount subject to interest swap agreements as at December 31, 2018 , was $0.9 billion ( 2017 : $1.1 billion ). Foreign currency risk management The Company has entered into currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner and the payment of Norwegian kroner in exchange for U.S. dollars, which are designated as hedges against the NOK900 million , NOK500 million and NOK600 million senior unsecured bonds due 2019, 2020 and 2023 respectively. During the last quarter of 2018 , the Company entered into a currency swap transaction involving the payment of Norwegian kroner in exchange for U.S. dollars. This swap relates to the NOK900 million bond, but is not designated as a hedging instrument. Principal Receivable Principal Payable Inception date Maturity date NOK900 million US$151.0 million March 2014 March 2019 NOK500 million US$64.0 million October 2017 March - June 2020 NOK472 million US$62.1 million September 2018 September 2023 US$16.8 million NOK100 million September 2018 March 2019 Apart from the NOK900 million , NOK500 million and NOK600 million senior unsecured bonds due 2019, 2020 and 2023, 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, 2018 , and 2017 , are as follows: 2018 2018 2017 2017 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale debt securities 13,245 13,245 41,742 41,742 Equity Securities 73,929 73,929 52,060 52,060 Floating rate NOK bonds due 2019 77,722 77,916 92,477 92,709 Floating rate NOK bonds due 2020 57,829 58,841 61,001 61,306 Floating rate NOK bonds due 2023 69,395 69,568 — — 3.25% unsecured convertible bonds due 2018 — — 63,218 71,662 5.75% unsecured convertible bonds due 2021 212,230 199,496 225,000 242,719 4.875% unsecured convertible bonds due 2023 151,700 139,374 — — Derivatives: Interest rate/ currency swap contracts – short-term receivables 5,279 5,279 108 108 Interest rate/ currency swap contracts – long-term receivables 10,633 10,633 8,347 8,347 Interest rate/ currency swap contracts – short-term payables 45,047 45,047 503 503 Interest rate/ currency swap contracts – long-term payables 16,213 16,213 48,618 48,618 The above short-term receivables relating to interest rate/ currency swap contracts at December 31, 2018 , all relate to non-designated hedges. The above long-term receivables relating to interest rate/ currency swap contracts at December 31, 2018 , include $5.2 million which relates to non-designated swap contracts ( 2017 : $3.2 million ), with the balance relating to designated hedges. The above short-term payables relating to interest rate/ currency swap contracts at December 31, 2018 , include $12.0 million which relates to non-designated swap contracts ( 2017 : $0.3 million ), with the balance relating to designated hedges. The above long-term payables relating to interest rate/ currency swap contracts at December 31, 2018 , include $0.1 million which relates to non-designated swap contracts ( 2017 : $7.4 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, 2018 , are measured as follows: Fair value measurements using December 31, 2018 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 debt securities 13,245 13,245 Equity securities 73,929 73,929 Interest rate/ currency swap contracts – short-term receivables 5,279 5,279 Interest rate/ currency swap contracts - long-term receivables 10,633 10,633 Total assets 103,086 87,174 15,912 — Liabilities: Floating rate NOK bonds due 2019 77,916 77,916 Floating rate NOK bonds due 2020 58,841 58,841 Floating rate NOK bonds due 2023 69,568 69,568 5.75% unsecured convertible bonds due 2021 199,496 199,496 4.875% unsecured convertible bonds due 2023 139,374 139,374 Interest rate/ currency swap contracts – short-term payables 45,047 45,047 Interest rate/ currency swap contracts – long-term payables 16,213 16,213 Total liabilities 606,455 545,195 61,260 — The above fair values of financial assets and liabilities as at December 31, 2017 , were measured as follows: Fair value measurements using December 31, 2017 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 debt securities 41,742 41,742 — Equity securities 52,060 52,060 Interest rate/ currency swap contracts – short-term receivables 108 108 Interest rate/ currency swap contracts – long-term receivables 8,347 8,347 Total assets 102,257 93,802 8,455 — Liabilities: Floating rate NOK bonds due 2019 92,709 92,709 Floating rate NOK bonds due 2020 61,306 61,306 3.25% unsecured convertible bonds due 2018 71,662 71,662 5.75% unsecured convertible bonds due 2021 242,719 242,719 Interest rate/ currency swap contracts – short-term payables 503 503 Interest rate/ currency swap contracts – long-term payables 48,618 48,618 Total liabilities 517,517 468,396 49,121 — 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. Investment in equity securities consist of (i) listed Frontline shares (ii) NorAm Drilling shares traded in the OTC market (iii) Golden Close shares traded in the OTC market and (iv) ADS shares traded on the Merkur Market whilst the investments in available-for-sale debt securities consist of listed and unlisted corporate bonds. The estimated fair value of the debt and equity securities consists of their aggregate market value as at the balance sheet date. The estimated fair values for the floating rate NOK bonds due 2019, 2020 and 2023, and the 5.75% and 4.875% 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 established independent valuation techniques 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, as these financial institutions are established and reputable establishments with no prior history of default. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. There is also a concentration of revenue risk with certain customers to whom the Company has chartered multiple vessels: In the year ended December 31, 2018 , Frontline Shipping accounted for approximately 8% of our consolidated operating revenues ( 2017 : 15% , 2016 : 28% ). Frontline Shipping is a 100% owned subsidiary of Frontline, but the performance under the leases is not guaranteed by Frontline following amendments agreed in 2015. There is no requirement for a minimum cash balance in Frontline Shipping, but in exchange for releasing the guarantee a dividend restriction was introduced on Frontline Shipping whereby it can only make distributions to its parent company if it can demonstrate it will have minimum free cash of $2 million per vessel both prior to and following (i) such distribution and (ii) the payment of the next hire due and any profit share accrued under the charters. Due to the current depressed tanker market, there is a risk that Frontline Shipping may not have sufficient funds to pay the agreed charterhires. However, the performance under the fixed price agreements with Frontline Management whereby we pay management fees of $9,000 per day for each vessel to cover all operating costs including drydocking costs, is guaranteed by Frontline. In the year ended December 31, 2018 , the Company had eight Capesize dry bulk carriers leased to a subsidiary of Golden Ocean which accounted for approximately 13% of our consolidated operating revenues ( 2017 : 14% , 2016 : 12% ). The Company also had 29 container vessels on long-term bareboat charters to MSC, which accounted for approximately 11% of our consolidated operating revenues in the year ended December 31, 2018 ( 2017 : 10% , 2016 : 4% ). Following the acquisition of Hamburg Süd by Maersk Line A/S (“Maersk”) in November 2017, the Company had 10 container vessels on long-term time charters to Maersk at December 31, 2018 , which accounted for approximately 27% of our consolidated operating revenues ( 2017 : 14% ; 2016 : 9% ). 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, 2018 , income from our associated companies accounted for 39.1% of our net income ( 2017 : 38.6% , 2016 : 31.7% ). The Company and three of the Company's subsidiaries, who own and lease the drilling rigs West Linus, West Hercules and West Taurus to subsidiaries of Seadrill, agreed to the Restructuring Plan announced by Seadrill in September 2017. As part of the agreement, Ship Finance and its relevant subsidiaries have agreed to reduce the contractual charter hire payable by the relevant Seadrill subsidiaries by approximately 29% for a five year period with economic effect from January 1, 2018, with the reduced amounts added back in the period thereafter. The call options on behalf of the Seadrill subsidiaries under the relevant leases were also amended as part of the Restructuring Plan. The leases for West Hercules and West Taurus have been extended for a period of 13 months until December 2024, with amended purchase obligations at the new expiry of the charters. Concurrently, the banks who finance the three rigs also extended the loan period by approximately four years under each of the facilities, with reduced amortization in the extension period compared to the current amortization. The Restructuring Plan was implemented in July 2018, at which time Seadrill emerged from Chapter 11. As discussed in Note 26: Commitments and contingent liabilities, the Company, at December 31, 2018 , guaranteed a total of $266.1 million ( 2017 : $235.0 million ) of the bank debt in these companies and had net outstanding receivable balance on loans granted by the Company to these associated companies totaling $342.0 million ( 2017 : $317.8 million ). The loans granted by the Company are considered not impaired at December 31, 2018 , due to the fair value of the jack-up rig owned by SFL Linus and the ultra deepwater drilling rigs owned by SFL Deepwater and SFL Hercules exceeding the book values at December 31, 2018 . |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Assets Pledged 2018 2017 Carrying value of consolidated assets pledged under ship mortgages $1,527 million $1,908 million Of the above, $1,424.4 million relates to assets recorded as vessels and equipment ( 2017 : $1,576.3 million ) and $103.1 million relates to assets accounted for as investments in direct financing leases ( 2017 : $331.3 million ). In addition, as at December 31, 2018 the Company had 11 vessels ( 2017 : two vessels) with obligations under capital lease with a total net book value of $1,331.1 million ( 2017 : $283.9 million ). Of these, seven vessels with net book value of $749.9 million ( 2017 : nil ) were recorded as vessels under capital lease and four vessels with net book value of $581.2 million ( 2017 : $283.9 million ) were accounted for as investments in direct financing leases. The Company and its equity-accounted subsidiaries have funded their acquisition of vessels, jack-up rigs and ultra-deepwater drilling units through a combination of equity, short-term debt and long-term debt. Providers of long-term loan facilities usually require that the loans be secured by mortgages against the assets being acquired. As at December 31, 2018 , the Company ( $1.5 billion ) and its 100% equity-accounted subsidiaries ( $655.2 million ) had a combined outstanding principal indebtedness of $2.1 billion ( 2017 : $2.3 billion ) under various credit facilities. Other Contractual Commitments and Contingencies 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 17. As at December 31, 2018 , their combined bank borrowings amounted to $655.2 million ( 2017 : $785.8 million ) and the Company guaranteed $266.1 million ( 2017 : $235.0 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 its secured loans to SFL Deepwater, SFL Hercules and SFL Linus, in favor of the lenders under the respective credit facilities. These loans had a net outstanding balance of $342.0 million at December 31, 2018 ( 2017 : $317.8 million ) and 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. As at December 31, 2018 , the Company had no commitments under contracts to acquire newbuilding vessels ( 2017 : $nil ). As at December 31, 2018 , the Company had committed $3.4 million towards the procurement of exhaust gas cleaning systems ("EGCS”) on four of its oil tankers ( 2017 : $nil ). There were no other material contractual commitments as at December 31, 2018 . 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, 2018 | |
CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | CONSOLIDATED VARIABLE INTEREST ENTITIES As at December 31, 2018 , the Company's consolidated financial statements included 40 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 March 2019 to November 2033 . 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, 2018 , 18 of the consolidated variable interest entities have a vessel which is accounted for as a direct financing lease asset. At December 31, 2018 , the vessels had a carrying value of $403.9 million , unearned lease income of $221.4 million and estimated residual value of $126.2 million . The outstanding loan balances in 16 of these entities amounted to a total of $47.0 million , of which the short-term portion was $6.2 million as at December 31, 2018 . Also, two of the vessels that are included in the direct financing lease assets had outstanding obligations under capital lease which amounted to a total of $274.3 million , of which the short-term portion was $11.3 million , as at December 31, 2018 . At December 31, 2018 , 19 fully consolidated variable interest entities each own vessels which are accounted for as operating lease assets and had a total net book value of $353.9 million at December 31, 2018 . The outstanding loan balances in these entities amounted to a total of $182.9 million , of which the short-term portion was $78.9 million as at December 31, 2018 . The other three fully consolidated variable interest entities each own vessels which are accounted for as vessels and equipment under capital lease and had a total net book value of $312.4 million at December 31, 2018 . The outstanding obligations under capital lease for these entities amounted to a total of $270.6 million , of which the short-term portion was $20.3 million as at December 31, 2018 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2019, 100,000 options were awarded to one officer pursuant to the Company's Share Option Scheme. The options vest over a three year period and have a five year term. The initial exercise price was $11.50 per share and the first options will be exercisable from January 2020. On February 26, 2019, the Board of Ship Finance declared a dividend of $0.35 per share which will be paid in cash on or around March 29, 2019. In March 2019, 2,461 new common shares were issued to satisfy employee options being exercised. In March 2019, 425,000 options were awarded to employees, officers and directors pursuant to the Company's Share Option Scheme. The options vest over a three year period and have a five year term. The initial exercise price was $12.35 per share and the first options will be exercisable from March 2020. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 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 Effective from January 1, 2018, we adopted the new accounting standard ASC Topic 606 "Revenue from Contracts with Customers" using the modified retrospective method, which resulted in no adjustment to our retained earnings on adoption and comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. 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, voyage charters and other freight billings. In a time charter voyage, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. Generally, the charterer has the discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer and carries only lawful or non hazardous cargo. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges, and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire in advance of the upcoming contract period. The time charter contracts are either operating or direct financing or sales type leases. Where time charters and bareboat charters are considered operating leases, revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. Rental payments from 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. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimate is reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. We have determined that our voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses, and the revenue is recognized on a straight line basis over the voyage days from the commencement of loading to completion of discharge. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. Voyage revenues typically become billable and due for payment on completion of the voyage and discharge of the cargo, at which point the receivable is recognized as "Trade accounts receivable, net". In a voyage contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. To recognize costs incurred to fulfill a contract as an asset, the following criteria shall be met: (i) the costs relate directly to the contract, (ii) the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future and (iii) the costs are expected to be recovered. The costs incurred during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are subsequently amortized on a straight-line basis as we satisfy the performance obligations under the contract. Costs incurred to obtain a contract, such as commissions, are also deferred and expensed over the same period. For our vessels operating under revenue sharing agreements, or in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants in accordance with an agreed-upon formula. Revenues generated through revenue sharing agreements are presented gross when we are considered the principal under the charter parties with the net income allocated under the revenue sharing agreement presented as within voyage charter income. For revenue sharing agreements that meet the definition of a lease, we account for such contracts as variable rate operating leases and recognize revenue for the applicable period based on the actual net revenue distributed by the pool. As detailed in Note 24: Related party transactions, the Company has, or has had, profit sharing arrangements with Frontline Shipping Limited ("Frontline Shipping"), Golden Ocean Group Limited ("Golden Ocean"). The Company also has profit sharing agreements with Deep Sea Supply Shipowning II AS (the “Solstad Charterer”), a wholly owned subsidiary of Solship Invest 3 AS (“Solship”, formerly Deep Sea Supply Plc, or Deep Sea). Amounts receivable under these arrangements are accrued on the basis of amounts earned at the reporting date. Any contingent elements of rental income, such as profit share 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 | Investment in debt and equity securities Investments in debt and equity securities include share investments and interest-earning listed and unlisted corporate bonds. Any premium paid on their acquisition is amortized over the life of the bond. Investments in debt securities are recorded at fair value, with unrealized gains and losses recorded as a separate component of other comprehensive income. Investments in equity securities are recorded at fair value, with unrealized gains and losses recorded in the consolidated statement of operations. 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. In determining whether the Company has an other-than-temporary impairment in its investment in bonds, in addition to the Company’s intention and ability to hold the investments until the market recovers, the Company considers the period of decline, the amount and the severity of the decline and the ability of the investment to recover in the near to medium term. The Company also evaluates if the underlying security provided by the bonds is sufficient to ensure that the decline in fair value of these bonds did not result in an other-than-temporary impairment. The cost of disposals or reclassifications from other comprehensive income is calculated on an average cost basis, where applicable. 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, 2018 and 2017 , 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 net realizable 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 direct financing and sales-type leases Leases (charters) of our vessels where we are the lessor are classified as either direct financing or sales-type leases or operating leases, based on an assessment of the terms of the lease. For charters classified as direct financing 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 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 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 direct financing or sales-type 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 direct financing or sales-type 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 direct financing or sales-type 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. |
Obligations under Capital Lease | Obligations under capital lease The Company charters-in and out four container vessels on a bareboat basis under long term leasing agreements with corresponding assets classified as investments in direct financing leases. The Company also charters-in seven container vessels through sale and leaseback financing arrangements with corresponding lease assets classified under vessels under capital lease. Leases of vessels and equipment, where the Company has substantially all the risks and rewards of ownership, are classified as capital leases. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the capital balance outstanding. The interest element of the capital cost is charged to the Consolidated Statement of Operations over the lease period. |
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. |
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. A conversion of the bonds at more favorable terms than the original bond is treated as an inducement and the Company recognizes a debt conversion expense equal to the fair value of all securities and other consideration transferred in the transaction in excess of the fair value of securities or consideration issuable pursuant to the original conversion terms. |
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. 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. |
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 In May 2014, issued ASU 2014-09 "Revenue from Contracts with Customers", subsequently amended and collectively Topic 606. The standard replaced almost all existing revenue recognition guidance in U.S. GAAP, with the intention to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASC 606 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. ASC 606 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which became effective for the Company beginning January 1, 2018. The majority of vessels are on bareboat or time charters and these continue to be accounted as operating or finance leases in accordance with ASC 840 Leases and related interpretations and the implementation of the new revenue standard therefore did not have an effect on income recognition from such contracts. The Company adopted ASC 606 in the first quarter of fiscal 2018 on a modified retrospective basis with no changes recognized in the prior year comparative financial statements. The adoption of this standard only impacted our vessels operating on voyage charters. For vessels operating on voyage charters, voyage revenues are, under the new revenue standard, recognized over the estimated length of each voyage, calculated on a load-to-discharge basis. Certain voyage expenses, primarily bunker fuel expenses, are capitalized between the previous discharge port, or contract date if later, and the next load port if they qualify as fulfillment costs under ASC 340 Deferred Costs and Other Assets. ASC 606 has been applied to those voyage contracts that were not completed at the date of initial application. Upon adoption, the cumulative effect of adopting this guidance resulted in a net minor adjustment of $0.1 million to the opening balance of retained earnings as of January 1, 2018 and the Company did not consider this material enough to record. In addition, the adoption of this standard did not have a material impact on the consolidated financial statements of the Company for the year ended December 31, 2018 . 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 became effective for fiscal years and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-01 in the first quarter of fiscal 2018 on a modified retrospective basis, with no changes recognized in the prior year comparatives and a cumulative catch up adjustment recognized in the opening retained earnings. Upon adoption of ASU 2016-01, the Company reclassified approximately $98.8 million of unrealized losses related to its equity investments from accumulated other comprehensive income to retained earnings. As a result of the adoption of this guidance the Company is required to recognize the movement in the fair value of our equity securities in the consolidated statement of operations. For the year ended December 31, 2018 , the adoption of the standard resulted in a net unrealized gain of $12.3 million being included in the consolidated statement of operations. The Company anticipates additional volatility to the Company's statements of operations in future periods, due to changes in market prices of the Company's investments in equity securities. 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 adoption of these amendments did not have a material impact on the consolidated financial statements of the Company for the year ended December 31, 2018. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash", to address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The standard was effective for fiscal years beginning after December 15, 2017, and interim periods within those years. For the year ended December 31, 2018 , restricted cash has been disclosed as part of cash and cash equivalents in the Consolidated Statement of 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 was effective for the Company beginning January 1, 2018. The adoption of ASU 2017-01 did not have a material impact on the consolidated financial statements of the Company for the year ended December 31, 2018. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" to clarify and reduce both diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. ASU 2017-09 was effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption was permitted. The adoption of ASU 2017-09 did not have a material impact on the consolidated financial statements of the Company for the year ended December 31, 2018. RECENTLY ISSUED ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Topic 606. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. Accounting Standards Codification ("ASC") 842 provides a group of practical expedients that allows entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases and (iii) reassess initial direct costs for any existing leases. The Company plans to adopt ASC 842 on January 1, 2019 and has elected the use of the practical expedients. Due to this election, the Company has determined the adoption of ASC 842 will not have a material impact on the consolidated financial statements. In December 2018, the FASB issued ASU No. 2018-20 "Leases (Topic 842): Narrow-Scope Improvements for Lessors" to address issues facing lessors when applying the leases standard. The amendments addresses the following issues (i) Sales taxes and other similar taxes collected from lessees, which permits lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs and exclude the costs from being reported as lease revenue with an associated expense. (ii) Certain lessor costs paid directly by lessees, whereby certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. The amendments also require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments. A lessor will record those reimbursed costs as revenue. (iii) Recognition of variable payments for contracts with lease and non-lease components. The amendments relate to recognizing variable payments for contracts with lease and non-lease components require lessors to allocate (rather than recognize as currently required in the new leases standard) certain variable payments to the lease and non-lease components when the changes in facts and circumstances on which the variable payment is based occur. After the allocation, the amount of variable payments allocated to the lease components will be recognized as income in profit or loss in accordance with the new leasing guidance, while the amount of variable payments allocated to non-lease components will be recognized in accordance with other accounting guidance, such as revenue from contracts with customers. ASU 2018-20 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company has determined the adoption of ASU 2018-20 will not have a material impact on the consolidated financial statements. 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, 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 March 2017, the FASB issued ASU 2017-08 "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities" to amend the amortization period for certain purchased callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. 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 August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments also simplify the application of hedge accounting in certain situations. ASU 2017-12 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company has not elected to early adopt. The effect of the adoption of ASU 2017-12 will be that $34.4 thousand of hedge ineffectiveness losses will be reclassified from retained earnings to other comprehensive income. In July 2018, the FASB issued ASU 2018-10 "'Codification Improvements to Topic 842, Leases" to provide amendments that affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. ASU 2018-10 is effective for fiscal years and interim periods beginning after December 15, 2018. The Company does not expect that the adoption of ASU 2018-10 will have a material effect on the consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-16 "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." In the United States, eligible benchmark interest rates under Topic 815 are interest rates on direct Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, and the Overnight Index Swap (OIS) Rate based on the Federal Funds Effective Rate. When the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, in August 2017, it introduced the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate as the fourth permissible U.S. benchmark rate. The new ASU adds the OIS rate based on SOFR as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. ASU 2018-16 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2018-16 on the consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18 "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606", which defines a collaborative arrangement as a contractual arrangement under which two or more parties actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. The ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard. The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. It accomplishes this by allowing organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard. ASU 2018-18 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company does not expect that the adoption of ASU 2018-18 will have a material effect on the consolidated financial statements. Also in November 2018, the FASB issued ASU No. 2018-19 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses" to provide new guidance to mitigate the transition complexity by requiring entities other than public business entities, including not-for-profit organizations and certain employee benefit plans, to implement the credit losses standard issued in 2016, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard. ASU 2018-19 is effective for fiscal years and interim periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2018-19 on the consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $) 2018 2017 2016 Basic earnings per share: Net income available to stockholders 73,622 101,209 146,406 Diluted earnings per share: Net income available to stockholders 73,622 101,209 146,406 Interest and other expenses attributable to convertible bonds 123 4,511 15,310 Net income assuming dilution 73,745 105,720 161,716 The components of the denominator for the calculation of basic and diluted EPS are as follows: Year ended December 31, (in thousands) 2018 2017 2016 Basic earnings per share: Weighted average number of common shares outstanding 105,898 95,597 93,497 Diluted earnings per share: Weighted average number of common shares outstanding* 105,898 95,597 93,497 Effect of dilutive share options 59 26 — Effect of dilutive convertible bonds 1,649 7,277 14,543 Weighted average number of common shares outstanding assuming dilution 107,606 102,900 108,040 Year ended December 31, 2018 2017 2016 Basic earnings per share: $ 0.70 $ 1.06 $ 1.57 Diluted earnings per share: $ 0.69 $ 1.03 $ 1.50 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , are as follows: Year ending December 31, (in thousands of $) 2019 313,018 2020 298,033 2021 250,742 2022 179,092 2023 161,125 Thereafter 209,844 Total minimum lease revenues 1,411,854 |
Cost and accumulated depreciation of vessels leased to third parties on operating leases | The cost and accumulated depreciation of vessels (owned and under capital lease) leased to third parties on non-cancelable operating leases at December 31, 2018 and 2017 were as follows: ( in thousands of $) 2018 2017 Cost 2,336,269 2,256,747 Accumulated depreciation 309,135 494,151 Total 2,027,134 1,762,596 |
GAIN_(LOSS) ON SALE OF ASSETS_2
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $) 2018 2017 2016 (Loss)/gain on sale of vessels (2,578) (1,699) (167) Gain on termination of charters — 2,823 — Total loss/(gain) on sale of assets and termination of charters (2,578) 1,124 (167) |
GAIN ON SALE OF SUBSIDIARIES _2
GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | At the time of disposal on December 31, 2018 , net assets held by Rig Finance were as follows: (in thousands of $) December 31, 2018 Cash and cash equivalents 915 Vessel and equipment, net 76,875 Charter deposit (913 ) Other current liabilities (90 ) Net assets 76,787 |
OTHER FINANCIAL ITEMS (Tables)
OTHER FINANCIAL ITEMS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other financial items | Other financial items comprise the following items: Year ended December 31, (in thousands of $) 2018 2017 2016 Net cash payments on non-designated derivatives (721 ) (5,124 ) (4,913 ) Net increase in fair value of non-designated derivatives 13,908 8,068 3,917 Net increase in fair value of designated derivatives (ineffective portion) (11 ) 140 482 Other items (2,769 ) (5,768 ) (1,575 ) Total other financial items 10,407 (2,684 ) (2,089 ) |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale debt securities | Marketable securities held by the Company consist of corporate bonds and equity securities. (in thousands of $) 2018 2017 Amortized cost 76,234 194,184 Accumulated net unrealized (loss)/gain 10,940 (100,382 ) Carrying value 87,174 93,802 |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS IN DEBT AND EQUITY SECURITIES Marketable securities held by the Company consist of corporate bonds and equity securities. (in thousands of $) 2018 2017 Amortized cost 76,234 194,184 Accumulated net unrealized (loss)/gain 10,940 (100,382 ) Carrying value 87,174 93,802 Year ended December 31, 2018 Year ended December 31, 2017 (in thousands of $) Amortised Cost Unrealised gains/ (losses)* Fair value Amortised Cost Unrealised gains/ (losses)* Fair value Corporate Bonds: Golden Close Senior — — — 17,754 (2,240 ) 15,514 Golden Close Convertible — — — 9,960 — 9,960 Golden Close Super Senior — — — 2,561 347 2,908 NorAm Drilling 4,715 477 5,192 5,181 293 5,474 Oro Negro 7,886 167 8,053 7,886 — 7,886 Total corporate bonds 12,601 644 13,245 43,342 (1,600 ) 41,742 Shares: Frontline 50,490 10,340 60,830 150,004 (99,514 ) 50,490 NorAm Drilling 3,035 893 3,928 730 732 1,462 Golden Close 108 (108 ) — 108 — 108 ADS Crude Carriers 10,000 (829 ) 9,171 — — — Total shares 63,633 10,296 73,929 150,842 (98,782 ) 52,060 Total 76,234 10,940 87,174 194,184 (100,382 ) 93,802 * This includes foreign currency gains or losses on non U.S. dollar denominated equity investments in addition to the changes in the fair value from market prices movements. The investments in corporate bonds at December 31, 2018 , consist of investments in Oro Negro and NorAm Drilling Company AS ("NorAm Drilling") bonds which have a total carrying value of $13.2 million ( 2017 : $41.7 million , including investments in Golden Close Corp. Ltd. ("Golden Close") bonds) and have maturities in 2019 and 2021 , respectively. The corporate bonds are classified as available-for-sale securities and are recorded at fair value, with unrealized gains and losses recorded as a separate component of "Other comprehensive income". The accumulated net unrealized gain on these available-for-sale corporate debt securities included in "Other comprehensive income" at December 31, 2018 , was $0.6 million ( 2017 : loss of $1.6 million ). Following the adoption of ASU 2016-01 from January 2018, the Company now recognizes any changes in the fair value of equity investments in net income. The adoption of the standard resulted in a net unrealized gain of $12.3 million recorded in the consolidated statement of operations for the year ended December 31, 2018 . See also Recently Adopted Accounting Standards within Note 2. The investments in shares at December 31, 2018 , consist of listed shares in Frontline with a carrying value of $60.8 million ( 2017 : $50.5 million ) (see Note 24: Related party transactions), shares in NorAm Drilling traded in the Norwegian Over the Counter market ("OTC") market with a carrying value of $3.9 million ( 2017 : $1.5 million ) and shares in Golden Close, previously traded in the Norwegian OTC market with a carrying value of $nil ( 2017 : $0.1 million ). During the year ended December 31, 2018 , the Company acquired 4,031,800 shares in ADS, a recently formed company in 2018 trading on the Oslo Merkur Market and a related party. The investment in ADS shares were purchased for $10.0 million and have a carrying value of $9.2 million at December 31, 2018 ( 2017 : $nil ). See also Note 24: Related party transactions. In November 2018 NorAm Drilling undertook a share consolidation of 20 :1, resulting in a revised investment of 601,023 shares. On the same day NorAm Drilling participated in a rights issue, increasing the Company's investment in shares by 623,447 shares. In December 2018, the Company acquired an additional 41,756 shares bringing the total investment in NorAm Drilling to 1,266,226 shares with a fair value of $3.9 million at December 31, 2018 ( 2017 : $1.5 million ). During the year ended December 31, 2018 , Golden Close initiated liquidation proceedings. As a result of this, the Company received total proceeds of $45.6 million in settlement of its total investment, resulting in an overall net gain of $13.5 million . As at December 31, 2018 , the net investment in Golden Close debt and equity securities is $nil ( 2017 : $28.5 million ). In December 2017, the Company determined that the shares in Golden Close were other-than-temporarily impaired and recorded $3.9 million impairment charge in a separate line in the consolidated statement of operations for the year ended December 31, 2017 . Year ended December 31, 2018 Year ended December 31, 2017 (in thousands of $) Amortised Cost Unrealised gains/ (losses)* Fair value Amortised Cost Unrealised gains/ (losses)* Fair value Corporate Bonds: Golden Close Senior — — — 17,754 (2,240 ) 15,514 Golden Close Convertible — — — 9,960 — 9,960 Golden Close Super Senior — — — 2,561 347 2,908 NorAm Drilling 4,715 477 5,192 5,181 293 5,474 Oro Negro 7,886 167 8,053 7,886 — 7,886 Total corporate bonds 12,601 644 13,245 43,342 (1,600 ) 41,742 Shares: Frontline 50,490 10,340 60,830 150,004 (99,514 ) 50,490 NorAm Drilling 3,035 893 3,928 730 732 1,462 Golden Close 108 (108 ) — 108 — 108 ADS Crude Carriers 10,000 (829 ) 9,171 — — — Total shares 63,633 10,296 73,929 150,842 (98,782 ) 52,060 Total 76,234 10,940 87,174 194,184 (100,382 ) 93,802 * This includes foreign currency gains or losses on non U.S. dollar denominated equity investments in addition to the changes in the fair value from market prices movements. |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Vessels and equipment | ( in thousands of $) 2018 2017 Cost 1,955,880 2,256,747 Accumulated depreciation 396,168 494,151 Vessels and equipment, net 1,559,712 1,762,596 |
VESSELS UNDER CAPITAL LEASE, _2
VESSELS UNDER CAPITAL LEASE, NET VESSELS UNDER CAPITAL LEASE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Capital Leased Assets [Table Text Block] | (in thousands of $) 2018 2017 Cost 754,392 — Accumulated depreciation 4,503 — Vessels under capital lease, net 749,889 — |
INVESTMENTS IN DIRECT FINANCI_2
INVESTMENTS IN DIRECT FINANCING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , and December 31, 2017 : (in thousands of $) 2018 2017 Total minimum lease payments to be received 1,173,152 916,765 Less : amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (74,077 ) (211,508 ) Net minimum lease payments receivable 1,099,075 705,257 Estimated residual values of leased property (un-guaranteed) 180,080 232,424 Less : unearned income (476,996 ) (319,610 ) Total investment in direct financing leases 802,159 618,071 Current portion 39,804 32,096 Long-term portion 762,355 585,975 802,159 618,071 |
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, 2018 , are as follows: Year ending December 31, (in thousands of $) 2019 106,503 2020 105,877 2021 105,257 2022 104,849 2023 104,690 Thereafter 645,976 Total minimum lease revenues 1,173,152 |
INVESTMENT IN ASSOCIATED COMP_2
INVESTMENT IN ASSOCIATED COMPANIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Percentage participation using the equity method of accounting | At December 31, 2018 , 2017 and 2016 , the Company had the following participation in investments that are recorded using the equity method: 2018 2017 2016 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 % |
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, 2018 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 58,089 19,558 16,858 21,673 Non-current assets 967,954 302,362 290,370 375,222 Total assets 1,026,043 321,920 307,228 396,895 Current liabilities 69,181 18,252 19,487 31,442 Non-current liabilities (1) 931,755 297,060 281,627 353,068 Total liabilities 1,000,936 315,312 301,114 384,510 Total shareholders' equity (2) 25,107 6,608 6,114 12,385 As of December 31, 2017 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Current assets 97,723 26,242 29,152 42,329 Non-current assets 1,020,067 317,450 305,852 396,765 Total assets 1,117,790 343,692 335,004 439,094 Current liabilities 106,628 25,642 29,443 51,543 Non-current liabilities (1) 1,000,484 315,415 302,819 382,250 Total liabilities 1,107,112 341,057 332,262 433,793 Total shareholders' equity (2) 10,678 2,635 2,742 5,301 (1) SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2018 , include $109.0 million ( 2017 : $113.0 million ), $80.0 million ( 2017 : $80.0 million ) and $121.0 million ( 2017 : $121.0 million ) due to Ship Finance, respectively (see Note 24: Related party transactions). In addition, SFL Hercules and SFL Linus current liabilities at December 31, 2018 , include a further $10.1 million and $21.7 million due to Ship Finance. SFL Deepwater balance was $nil ( 2017 : $0.1 million , $3.6 million and $0.2 million ) due to Ship Finance (see Note 24: Related party transactions). (2) In the year ended December 31, 2018 , SFL Deepwater, SFL Hercules and SFL Linus did not pay any dividends ( 2017 : $3.4 million ; 2016 : $46.3 million ), ( 2017 : $3.8 million ; 2016 : $25.1 million ), ( 2017 : $7.3 million ; 2016 : $42.1 million ), respectively. Summarized statement of operations information of the Company's wholly-owned equity method investees is shown below. Year ended December 31, 2018 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Operating revenues 64,572 19,594 19,126 25,852 Net operating revenues 64,410 19,540 19,049 25,821 Net income (3) 14,635 3,973 3,372 7,290 Year ended December 31, 2017 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus Operating revenues 73,487 20,873 21,827 30,787 Net operating revenues 73,487 20,873 21,827 30,787 Net income (3) 23,766 5,981 6,462 11,323 Year ended December 31, 2016 (in thousands of $) TOTAL SFL Deepwater SFL Hercules SFL Linus 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 (3) The net income of SFL Deepwater, SFL Hercules and SFL Linus for the year ended December 31, 2018 , includes interest payable to Ship Finance amounting to $5.1 million ( 2017 : $5.4 million ; 2016 : $6.5 million ), $3.6 million ( 2017 : $4.3 million ; 2016 : $6.5 million ), and $5.4 million ( 2017 : $5.5 million ; 2016 : $5.6 million ), respectively (see Note 24: Related party transactions). |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | (in thousands of $) 2018 2017 Vessel operating expenses 5,395 6,111 Administrative expenses 628 552 Interest expense 6,487 6,688 12,510 13,351 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | (in thousands of $) 2018 2017 Deferred and prepaid charter revenue 7,562 3,936 Employee taxes 195 18 Other items 575 1,739 8,332 5,693 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of long-term debt | (in thousands of $) 2018 2017 Long-term debt: 3.25% senior unsecured convertible bonds due 2018 — 63,218 Norwegian kroner 900 million senior unsecured floating rate bonds due 2019 77,722 92,477 Norwegian kroner 500 million senior unsecured floating rate bonds due 2020 57,829 61,001 5.75% senior unsecured convertible bonds due 2021 212,230 225,000 Norwegian kroner 600 million senior unsecured floating rate bonds due 2023 69,395 — 4.875% senior unsecured convertible bonds due 2023 151,700 — U.S. dollar denominated floating rate debt due through 2025 891,471 1,081,204 Total debt principal 1,460,347 1,522,900 Less : unamortized debt issuance costs (23,267 ) (18,893 ) Less : current portion of long-term debt (267,149 ) (313,823 ) Total long-term debt 1,169,931 1,190,184 |
Schedule of maturities of debt | The outstanding debt as of December 31, 2018 , is repayable as follows: Year ending December 31, (in thousands of $) 2019 267,149 2020 196,093 2021 463,516 2022 199,466 2023 321,830 Thereafter 12,293 Total debt principal 1,460,347 |
OTHER LONG TERM LIABILITIES (Ta
OTHER LONG TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Lessee, Finance Leases [Text Block] | (in thousands of $) 2018 2017 Current portion of obligations under capital leases 67,793 9,031 Obligations under capital leases - long-term portion 1,104,258 230,576 1,172,051 239,607 |
Schedule of Other Long Term Liabilities | (in thousands of $) 2018 2017 Unamortized sellers' credit 3,282 3,958 Other items 4 4 3,286 3,962 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The Company's future minimum lease obligations under the non-cancellable capital leases are as follows: Year ending December 31, (in thousands of $) 2019 130,169 2020 126,868 2021 126,726 2022 126,726 2023 126,726 Thereafter 976,801 Total lease obligations 1,614,016 Less: imputed interest payable (441,965 ) Present value of obligations under capital leases 1,172,051 Less: current portion (67,793 ) Obligations under capital leases - long-term portion 1,104,258 Interest incurred on capital leases was $21.8 million (2017: $16.0 million ; 2016: $0.2 million ). |
SHARE CAPITAL, ADDITIONAL PAI_2
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Capital | Authorized share capital is as follows: (in thousands of $, except share data) 2018 2017 200,000,000 common shares of $0.01 par value each (2017: 150,000,000 common shares of $0.01 par value each) 2,000 1,500 Issued and fully paid share capital is as follows: (in thousands of $, except share data) 2018 2017 119,373,064 common shares of $0.01 par value each (2017: 110,930,873 common shares of $0.01 par value each) 1,194 1,109 |
SHARE OPTION PLAN (Tables)
SHARE OPTION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 , 2017 and 2016 : 2018 2017 2016 Options Weighted average exercise price $ Options Weighted average exercise price $ Options Weighted average exercise price $ Options outstanding at beginning of year 369,500 12.20 279,000 13.03 125,000 12.56 Granted 83,000 14.67 113,000 14.30 279,000 14.38 Exercised — — (7,500 ) 11.78 (125,000 ) 12.11 Forfeited (35,000 ) 10.03 (15,000 ) 11.78 — — Options outstanding at end of year 417,500 11.43 369,500 12.20 279,000 13.03 Exercisable at end of year 111,500 10.03 85,500 11.43 — — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | In addition to leasing revenues and repayments, the Company incurred fees with related parties. 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 and its subsidiaries, a management fee of 1.25% of chartering revenues. The Company paid fees to Frontline Management for administrative services, including corporate services, and fees to Seatankers for the provision of advisory and support services. The Company also pays fees to Frontline Management for the management supervision of some of its newbuildings. The Company paid fees to Seatankers Management Norway AS for the provision of office facilities in Oslo, and fees to Frontline Corporate Services Ltd for the provision of office facilities in London. Fees incurred for these services are as follows: Year ended (in thousands of $) December 31, 2018 December 31, 2017 December 31, 2016 Frontline: Vessel Management Fees 24,033 36,536 45,931 Newbuilding Supervision Fees — 979 — Commissions and Brokerage 287 269 390 Administration Services Fees 323 335 576 Golden Ocean: Vessel Management Fees 20,440 20,440 20,496 Operating Management Fees 793 738 795 Seatankers: Administration Services Fees 290 82 315 Office Facilities: Seatankers Management Norway AS 108 105 — Frontline Management AS 185 136 317 Frontline Corporate Services Ltd 166 173 235 |
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 16: Investments in direct financing and sales type leases): (in thousands of $) 2018 2017 Amounts due from: Frontline Shipping 1,225 — Frontline 8,430 5,579 Deep Sea — — Seadrill 223 — SFL Linus 21,718 3,559 SFL Deepwater — 171 SFL Hercules 10,125 97 Golden Ocean 50 153 Other related parties — 66 Total amount due from related parties 41,771 9,625 Loans to related parties - associated companies, long-term SFL Deepwater 109,144 113,000 SFL Hercules 80,000 80,000 SFL Linus 121,000 121,000 Total loans to related parties - associated companies, long-term 310,144 314,000 Long-term receivables from related parties Frontline 11,170 — Frontline Shipping 4,446 — Total long-term receivables from related parties 15,616 — Amounts due to: Frontline Shipping 1,125 539 Frontline 125 147 Seatankers — 60 Golden Ocean 91 — Other related parties 8 111 Total amount due to related parties 1,349 857 |
Summary of leasing revenues earned from related parties | A summary of leasing revenues earned from the Frontline Shipping, Deep Sea, Golden Ocean and UFC is as follows: (in millions of $) 2018 2017 2016 Operating lease income 53.3 59.4 65.3 Direct financing lease interest income 9.6 16.4 22.9 Finance lease service revenue 22.1 35.0 44.5 Direct financing lease repayments 16.8 25.1 30.3 Profit sharing revenues 1.8 5.8 51.5 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $) 2018 2017 Designated derivative instruments -short-term assets: Interest rate swaps — 108 Non-designated derivative instruments -short-term assets: Cross currency interest rate swaps 5,279 — Total derivative instruments - short-term assets 5,279 108 Designated derivative instruments -long-term assets: Interest rate swaps 5,459 5,136 Non-designated derivative instruments -long-term assets: Interest rate swaps 5,174 3,211 Total derivative instruments - long-term assets 10,633 8,347 (in thousands of $) 2018 2017 Designated derivative instruments -short-term liabilities: Interest rate swaps — 248 Cross currency interest rate swaps 33,004 — Non-designated derivative instruments -short-term liabilities: Interest rate swaps — 255 Cross currency interest rate swaps 12,043 — Total derivative instruments - short-term liabilities 45,047 503 Designated derivative instruments -long-term liabilities: Interest rate swaps 1,811 5,109 Cross currency interest rate swaps 4,709 36,120 Cross currency swaps 9,607 — Non-designated derivative instruments -long-term liabilities: Interest rate swaps 86 553 Cross currency interest rate swaps — 6,836 Total derivative instruments - long-term liabilities 16,213 48,618 |
Schedule of interest rate swap transactions designated as hedges against specific loans | At December 31, 2018 , 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 $11,130 (remaining at $11,130) May 2011 January 2019 2.08% - 2.58% $100,000 (remaining at $100,000) August 2011 August 2021 2.50% - 2.93% $121,133 (terminating at $79,733) May 2012 August 2022 1.76% - 1.85% $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 % * $92,438 (reducing to $70,125) December 2016 December 2021 2.29% - 2.63% $95,625 (reducing to $70,125) January 2017 January 2022 2.12% - 2.58% $26,693 (reducing to $19,413) September 2015 March 2022 1.67 % $173,906 (reducing to $149,844) February 2016 February 2021 1.07% - 1.26% $63,987 (equivalent to NOK500 million) October 2017 March - June 2020 6.86% - 6.96% * $16,833 (equivalent to NOK100 million) September 2018 March 2019 6.03 % † * These swaps relate to the NOK900 million and NOK500 million unsecured bonds due 2019 and 2020, respectively, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. † This swap relates to the NOK900 million unsecured bond due 2019, where NIBOR plus a margin is paid in exchange for a fixed interest rate. 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 and the payment of Norwegian kroner in exchange for U.S. dollars, which are designated as hedges against the NOK900 million , NOK500 million and NOK600 million senior unsecured bonds due 2019, 2020 and 2023 respectively. During the last quarter of 2018 , the Company entered into a currency swap transaction involving the payment of Norwegian kroner in exchange for U.S. dollars. This swap relates to the NOK900 million bond, but is not designated as a hedging instrument. Principal Receivable Principal Payable Inception date Maturity date NOK900 million US$151.0 million March 2014 March 2019 NOK500 million US$64.0 million October 2017 March - June 2020 NOK472 million US$62.1 million September 2018 September 2023 US$16.8 million NOK100 million September 2018 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, 2018 , and 2017 , are as follows: 2018 2018 2017 2017 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale debt securities 13,245 13,245 41,742 41,742 Equity Securities 73,929 73,929 52,060 52,060 Floating rate NOK bonds due 2019 77,722 77,916 92,477 92,709 Floating rate NOK bonds due 2020 57,829 58,841 61,001 61,306 Floating rate NOK bonds due 2023 69,395 69,568 — — 3.25% unsecured convertible bonds due 2018 — — 63,218 71,662 5.75% unsecured convertible bonds due 2021 212,230 199,496 225,000 242,719 4.875% unsecured convertible bonds due 2023 151,700 139,374 — — Derivatives: Interest rate/ currency swap contracts – short-term receivables 5,279 5,279 108 108 Interest rate/ currency swap contracts – long-term receivables 10,633 10,633 8,347 8,347 Interest rate/ currency swap contracts – short-term payables 45,047 45,047 503 503 Interest rate/ currency swap contracts – long-term payables 16,213 16,213 48,618 48,618 |
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, 2018 , are measured as follows: Fair value measurements using December 31, 2018 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 debt securities 13,245 13,245 Equity securities 73,929 73,929 Interest rate/ currency swap contracts – short-term receivables 5,279 5,279 Interest rate/ currency swap contracts - long-term receivables 10,633 10,633 Total assets 103,086 87,174 15,912 — Liabilities: Floating rate NOK bonds due 2019 77,916 77,916 Floating rate NOK bonds due 2020 58,841 58,841 Floating rate NOK bonds due 2023 69,568 69,568 5.75% unsecured convertible bonds due 2021 199,496 199,496 4.875% unsecured convertible bonds due 2023 139,374 139,374 Interest rate/ currency swap contracts – short-term payables 45,047 45,047 Interest rate/ currency swap contracts – long-term payables 16,213 16,213 Total liabilities 606,455 545,195 61,260 — The above fair values of financial assets and liabilities as at December 31, 2017 , were measured as follows: Fair value measurements using December 31, 2017 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 debt securities 41,742 41,742 — Equity securities 52,060 52,060 Interest rate/ currency swap contracts – short-term receivables 108 108 Interest rate/ currency swap contracts – long-term receivables 8,347 8,347 Total assets 102,257 93,802 8,455 — Liabilities: Floating rate NOK bonds due 2019 92,709 92,709 Floating rate NOK bonds due 2020 61,306 61,306 3.25% unsecured convertible bonds due 2018 71,662 71,662 5.75% unsecured convertible bonds due 2021 242,719 242,719 Interest rate/ currency swap contracts – short-term payables 503 503 Interest rate/ currency swap contracts – long-term payables 48,618 48,618 Total liabilities 517,517 468,396 49,121 — |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of assets pledged | Assets Pledged 2018 2017 Carrying value of consolidated assets pledged under ship mortgages $1,527 million $1,908 million |
GENERAL (Details)
GENERAL (Details) | Dec. 31, 2018carrier | Dec. 31, 2018containership | Dec. 31, 2018vessel | Dec. 31, 2018 | Dec. 31, 2018drilling_rig | Dec. 31, 2018tanker | Dec. 27, 2018vessel | Dec. 31, 2017vessel | Oct. 31, 2015vessel |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Number of very large crude oil carriers owned | 3 | ||||||||
Number of Suezmax crude oil carriers owned | 2 | ||||||||
Number of Supramax drybulk carriers owned | 5 | ||||||||
Number of Handysize drybulk carriers owned | 7 | ||||||||
Number of Kamsarmax drybulk carriers owned | 2 | ||||||||
Number of Capesize drybulk carriers owned | 8 | ||||||||
Number of container vessels owned | vessel | 45 | ||||||||
Number of container vessels contracted to be chartered in | vessel | 4 | 2 | 2 | 2 | |||||
Capital Leased Assets, Number of Units | containership | 7 | ||||||||
Number of car carriers | 2 | ||||||||
Number of jack-up drilling rigs owned | drilling_rig | 1 | ||||||||
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 | 5 | 5 | |||||||
Number of chemical tankers owned | tanker | 2 | ||||||||
Number of oil product tankers contracted to be acquired | tanker | 2 | ||||||||
Number of jack-up drilling rigs owned by wholly-owned subsidiaries account for using the equity method | drilling_rig | 1 |
ACCOUNTING POLICIES (Related Pa
ACCOUNTING POLICIES (Related Party) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |
Document Period End Date | Dec. 31, 2018 |
Profit sharing percent of earnings from Frontline from July 1 2015 onwards | 50.00% |
Frontline Charterers [Member] | |
Related Party Transaction [Line Items] | |
Profit Sharing Agreement, Term | 3 years 6 months |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)vesseldrilling_rig | Dec. 27, 2018vessel | Dec. 31, 2017USD ($)vessel | Oct. 31, 2015vessel | |
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] | ||||
Number of container vessels contracted to be chartered in | vessel | 4 | 2 | 2 | 2 |
Allowance for Doubtful Accounts Receivable | $ | $ 0 | $ 0 | ||
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% |
ACCOUNTING POLICIES Trade Accou
ACCOUNTING POLICIES Trade Accounts Receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 |
ACCOUNTING POLICIES Obligations
ACCOUNTING POLICIES Obligations under capital lease (Details) | Dec. 31, 2018containership |
Leases [Abstract] | |
Capital Leased Assets, Number of Units | 7 |
ACCOUNTING POLICIES Accounting
ACCOUNTING POLICIES Accounting Standards Updates (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Document Period End Date | Dec. 31, 2018 | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 12,277 | $ 0 | $ 0 | |
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 100 | |||
Accounting Standards Update 2016-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 98,800 |
RECENTLY ISSUED ACCOUNTING ST_2
RECENTLY ISSUED ACCOUNTING STANDARDS Recently Issued Accounting Standards (Details) $ in Thousands | Jan. 01, 2019USD ($) |
Accounting Standards Update 2017-12 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 34 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Document Period End Date | Dec. 31, 2018 | ||
Own-share Lending Arrangement, Shares, Total Authorised for share lending arrangement | 7,000,000 | ||
Basic earnings per share (in dollars per share) | $ 0.70 | $ 1.06 | $ 1.57 |
Basic earnings per share: | |||
Net income available to stockholders | $ 73,622 | $ 101,209 | $ 146,406 |
Diluted earnings per share: | |||
Interest on Convertible Debt, Net of Tax | 123 | 4,511 | 15,310 |
Net income available to stockholders, diluted | $ 73,745 | $ 105,720 | $ 161,716 |
Basic earnings per share: | |||
Weighted average number of common shares outstanding | 105,898,000 | 95,597,000 | 93,497,000 |
Diluted earnings per share: | |||
Weighted average number of common shares outstanding | 105,898,000 | 95,597,000 | 93,497,000 |
Effect of dilutive share options | 59,000 | 26,000 | 0 |
Effect of dilutive convertible bonds | 1,649,000 | 7,277,000 | 14,543,000 |
Weighted average number of diluted common shares outstanding | 107,606,000 | 102,900,000 | 108,040,000 |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 1.03 | $ 1.50 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018 | Oct. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 05, 2016 | Jan. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Long-term debt | $ 1,460,347 | $ 1,522,900 | ||||
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] | ||||||
Shares issued on conversion of convertible debt | 62.9233 | 56.2596 | ||||
Interest rate | 5.75% | |||||
Repayments of Debt | $ 12,800 | 0 | ||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Interest rate | 3.25% | |||||
Repayments of Debt | 165,800 | |||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Long-term debt | $ 63,218 | |||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares issued on conversion of convertible debt | 651,365 | 9,418,798 | ||||
Long-term debt | $ 0 | |||||
Repayments of Debt | $ 63,200 | |||||
Debt Conversion, Converted Instrument, Amount | $ 121,000 |
EARNINGS PER SHARE Issued share
EARNINGS PER SHARE Issued shares excluded from weighted average common shares outstanding (Details) - shares | Dec. 31, 2018 | Apr. 23, 2018 |
Senior Unsecured Convertible Bonds due 2023 [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Own-share Lending Arrangement, Shares, Issued | 3,765,842 | 3,765,842 |
EARNINGS PER SHARE Debt Instrum
EARNINGS PER SHARE Debt Instrument, Interest Rate, Stated percentage (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 05, 2016 | |
Debt Instrument, Redemption [Line Items] | ||||
Document Period End Date | Dec. 31, 2018 | |||
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Debt Instrument, Redemption [Line Items] | ||||
Repayments of Debt | $ 63.2 | |||
Senior Unsecured Convertible Bonds due 2023 [Member] | ||||
Debt Instrument, Redemption [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |||
Repayments of Debt | $ 12.3 | $ 0 |
OPERATING LEASES (Details)
OPERATING LEASES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Document Period End Date | Dec. 31, 2018 | ||
Cost and accumulated depreciation of vessels leased on operating leases [Abstract] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 396,168,000 | ||
Operating Leases, Income Statement, Lease Revenue | $ 0 | ||
Minimum future revenues to be received under non-cancelable operating leases [Abstract] | |||
2019 | 313,018,000 | ||
2020 | 298,033,000 | ||
2021 | 250,742,000 | ||
2022 | 179,092,000 | ||
2023 | 161,125,000 | ||
Thereafter | 209,844,000 | ||
Total minimum lease revenues | 1,411,854,000 | ||
Assets Leased to Others [Member] | |||
Cost and accumulated depreciation of vessels leased on operating leases [Abstract] | |||
Cost | 2,336,269,000 | $ 2,256,747,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 309,135,000 | 494,151,000 | |
Vessels and equipment, net | $ 2,027,134,000 | $ 1,762,596,000 |
GAIN_(LOSS) ON SALE OF ASSETS_3
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Summary) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2016 | Dec. 31, 2018USD ($)containership | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018 | Feb. 29, 2016vessel | |
Property, Plant and Equipment [Line Items] | ||||||
(Loss)/ gain on sale of vessels | $ (2,578) | $ (1,699) | $ (167) | |||
Gain on termination of charters | 0 | 2,823 | 0 | |||
Total gain/(loss) on sale of assets and termination of charters | $ (2,578) | 1,124 | $ (167) | |||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | ||
Term of time charter | 2 years | |||||
Proceeds from sale of vessels and termination of charters | $ 145,654 | 74,791 | $ 29,102 | |||
Compensation Received on Termination of Charters, Notes Receivable | 3,400 | $ 2,800 | ||||
Crude Oil Tankers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number Of Vessels Sold | vessel | 4 | 1 | ||||
Front Circassia [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | (1,400) | |||||
Proceeds from sale of vessels and termination of charters | 17,900 | |||||
Compensation Received on Termination of Charters, Notes Receivable | 4,400 | |||||
SFL Avon [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | (200) | |||||
Front Page [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | 300 | |||||
Front Stratus [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | 200 | |||||
Front Serenade [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | 300 | |||||
Front Page, Front Stratus, Front Serenade [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of vessels and termination of charters | 22,500 | |||||
Compensation Received on Termination of Charters, Notes Receivable | 3,400 | |||||
Front Ariake [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | 0 | |||||
Front Falcon [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | $ (1,800) | |||||
Sale of oil tanker- Front Century [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | $ 0 | |||||
Sale of oil tanker- Front Brabant [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | (1,700) | |||||
Sale of oil tanker- Front Scilla [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | (1,100) | |||||
Sale of oil tanker- Front Ardenne [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | 300 | |||||
MSC Alice [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total gain/(loss) on sale of assets and termination of charters | $ 700 | |||||
Term of time charter | 5 years |
GAIN_(LOSS) ON SALE OF ASSETS_4
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Gain on Sale of Vessels) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)containership | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018 | Feb. 29, 2016vessel | |
Property, Plant and Equipment [Line Items] | |||||
Gain on termination of charters | $ 0 | $ 2,823 | $ 0 | ||
Gain/(Loss) | (2,578) | (1,699) | (167) | ||
Gain (Loss) On Disposition of Assets and Termination of Charters | $ (2,578) | $ 1,124 | $ (167) | ||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | |
Crude Oil Tankers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number Of Vessels Sold | vessel | 4 | 1 |
GAIN_(LOSS) ON SALE OF ASSETS_5
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Gain on Termination of Charters) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
(Loss)/ gain on sale of vessels | $ (2,578) | $ (1,699) | $ (167) |
Notes Compensation Received on Termination of Charters, Face Value | 6,000 | ||
Compensation Received on Termination of Charters, Notes Receivable | 3,400 | 2,800 | |
Total compensation received on termination of charters | $ 0 | $ 2,823 | $ 0 |
Apexindo [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt Instrument, Term | 6 years |
GAIN ON SALE OF SUBSIDIARIES _3
GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 915 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | (913) |
Disposal Group, Including Discontinued Operation, Other Liabilities | (90) |
Disposal group, Net assets | $ 76,787 |
GAIN ON SALE OF SUBSIDIARIES _4
GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 84,400 | |||
Gain (Loss) on Disposition of Stock in Subsidiary | $ 0 | $ 7,613 | $ 0 | $ 0 |
GAIN ON SALE OF SUBSIDIARIES _5
GAIN ON SALE OF SUBSIDIARIES AND DISPOSAL GROUPS Gain on sale of subsidiaries and disposal groups - Narrative (Details) | Dec. 31, 2018 |
SFL Deepwater [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage held in consolidated subsidiary sold to a third party | 100.00% |
OTHER FINANCIAL ITEMS (Details)
OTHER FINANCIAL ITEMS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Net cash payments on non-designated derivatives | $ (721) | $ (5,124) | $ (4,913) |
Net increase in fair value of non-designated derivatives | 13,908 | 8,068 | 3,917 |
Net increase in fair value of designated derivatives (ineffective portion) | (11) | 140 | 482 |
Other items | (2,769) | (5,768) | (1,575) |
Total other financial items | 10,407 | (2,684) | (2,089) |
Loss on derivative instrument reclassified from other comprehensive income | 1,600 | 0 | |
Gain on foreign currency translation | $ 2,000 | $ 4,528 | $ 146 |
AVAILABLE FOR SALE SECURITIES_2
AVAILABLE FOR SALE SECURITIES (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2018shares | Jun. 30, 2018shares | Jun. 30, 2015shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Document Period End Date | Dec. 31, 2018 | |||||
Proceeds from Sale of Available-for-sale Securities | $ 45,600 | |||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 12,277 | $ 0 | $ 0 | |||
Amortized cost | 76,234 | 194,184 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | 644 | (100,382) | (78,960) | |||
Unrealised Gain or Loss on Marketable Securities | 10,940 | (100,382) | ||||
Marketable Securities | 87,174 | 93,802 | ||||
Debt and Equity Securities, Realized Gain (Loss) | 13,477 | 0 | 0 | |||
Stock Issued During Period, Shares, Purchase of Assets | shares | 4,024,984 | |||||
Dividend income from related parties | 0 | 3,300 | 11,550 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 55,000,000 | |||||
Available-for-sale securities impairment charge | 0 | 4,410 | 0 | |||
Unrealized loss from investment securities classified as available-for-sale securities reclassified to Consolidated Statement of Operations | 0 | 2,106 | $ 0 | |||
Corporate Bond Securities_Golden Close Senior [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 0 | 17,754 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | 2,240 | ||||
Marketable Securities | 0 | 15,514 | ||||
Coporate Bond Securities_Golden Close Convertible [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 0 | 9,960 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | 0 | ||||
Marketable Securities | 0 | 9,960 | ||||
Corporate Bond Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 12,601 | 43,342 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | (644) | 1,600 | ||||
Marketable Securities | 13,245 | 41,742 | ||||
Common stock - Frontline Ltd [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 50,490 | 150,004 | ||||
Unrealised Gain or Loss on Marketable Securities | (10,340) | 99,514 | ||||
Marketable Securities | 60,830 | 50,490 | ||||
Common Stock [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 63,633 | 150,842 | ||||
Unrealised Gain or Loss on Marketable Securities | 10,296 | 98,782 | ||||
Marketable Securities | 73,929 | 52,060 | ||||
Corproate Bond Securities_Golden Close Super Senior [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 0 | 2,561 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | (347) | ||||
Marketable Securities | 0 | 2,908 | ||||
Common stock - NorAm Drilling [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 3,035 | 730 | ||||
Unrealised Gain or Loss on Marketable Securities | (893) | (732) | ||||
Marketable Securities | $ 3,928 | 1,462 | ||||
Debt Securities, Available for Sale, Share Consolidation Ratio | 20 | |||||
Number of shares held after share consolidation | shares | 601,023 | |||||
Conversion of Stock, Shares Issued | shares | 623,447 | |||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 41,756 | |||||
Investment Owned, Balance, Shares | shares | 1,266,226 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 12,000,000 | |||||
Payments to Acquire Marketable Securities | $ 700 | |||||
Golden Close [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Marketable Securities | $ 0 | 28,490 | ||||
Common Stock, Golden Close [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 108 | 108 | ||||
Unrealised Gain or Loss on Marketable Securities | 108 | 0 | ||||
Marketable Securities | 108 | |||||
Available-for-sale securities impairment charge | 3,900 | |||||
Common Stock, ADS [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 10,000 | 0 | ||||
Unrealised Gain or Loss on Marketable Securities | 829 | 0 | ||||
Marketable Securities | 9,171 | 0 | ||||
Corporate Bond Securities_NorAm Drilling [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 4,715 | 5,181 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | (477) | (293) | ||||
Marketable Securities | 5,192 | 5,474 | ||||
Corporate Bond Securities_Oro Negro [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 7,886 | 7,886 | ||||
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax | (167) | 0 | ||||
Marketable Securities | $ 8,053 | $ 7,886 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
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) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018containership | Dec. 31, 2017USD ($) | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018Rate | Dec. 31, 2016vessel | Feb. 29, 2016vessel | |
Property, Plant and Equipment [Abstract] | |||||||
Document Period End Date | Dec. 31, 2018 | ||||||
Property, Plant and Equipment, Gross | $ 1,955,880 | ||||||
Charterhire, percentage rate | Rate | 1 | ||||||
Number of newbuilding container vessels disposed | 1 | 1 | 1 | 1 | |||
Number of vessels transferred from operating lease assets to sales type assets | 1 | ||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 396,168 | ||||||
Property, Plant and Equipment, Net | $ 1,762,596 | $ 1,559,712 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($)containership | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018vessel | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018contract | Dec. 31, 2018Rate | Feb. 29, 2016vessel | |
Property Subject to or Available for Operating Lease [Line Items] | |||||||||
Number Of Vessels Delivered | 2 | ||||||||
Property, Plant and Equipment, Net | $ 1,762,596,000 | $ 1,559,712,000 | |||||||
Document Period End Date | Dec. 31, 2018 | ||||||||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | |||||
Number of Newbuilding Contracts | contract | 0 | ||||||||
Cost of newbuilding container vessels delivered | $ 115,100,000 | ||||||||
Number of vessels transferred from operating lease assets to sales type assets | 1 | ||||||||
Vessel impairment charge | $ (64,338,000) | $ 0 | $ (5,314,000) | ||||||
Depreciation | 104,079,000 | 88,150,000 | $ 94,293,000 | ||||||
Number of offshore supply vessels owned | 5 | 5 | |||||||
Number of offshore supply vessels under operating leases | 4 | 2 | |||||||
Number of offshore supply vessels under finance lease | 1 | ||||||||
Charterhire, percentage rate | Rate | 1 | ||||||||
Number of container vessels | vessel | 1 | ||||||||
Container vessels [Member] | |||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||
Property, Plant and Equipment, Net | 2,300,000 | 12,300,000 | |||||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 76,875,000 | ||||||||
Property Subject to Operating Lease [Member] | |||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||
Vessel impairment charge | $ (25,400,000) | $ 0 | $ (4,800,000) | ||||||
Offshore Supply Vessels [Member] | |||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||
Number of offshore supply vessels under operating leases | vessel | 4 | ||||||||
Sea Cheetah and Sea Jaguar [Member] | |||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||
Number of offshore supply vessels under operating leases | 4 |
VESSELS UNDER CAPITAL LEASE, _3
VESSELS UNDER CAPITAL LEASE, NET (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Oct. 31, 2015 | Dec. 31, 2018USD ($)containership | Jun. 30, 2018USD ($)shares | Dec. 31, 2018USD ($)containership | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($)containership | May 31, 2018USD ($)containership | Apr. 05, 2018containership | |
Vessels under capital lease, net [Line Items] | |||||||||
Number of year before option to buy vessel is available | 6 | 6 | |||||||
Number of Container Vessels acquired | containership | 15 | 15 | 3 | 4 | 15 | ||||
Capital Leased Assets, Number of Units | containership | 7 | 7 | |||||||
Term of lease or charter | 15 years | 7 years | |||||||
Depreciation | $ 104,079 | $ 88,150 | $ 94,293 | ||||||
Capital Leased Assets, Gross | $ 754,392 | 754,392 | 0 | ||||||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 748,897 | ||||||||
Purchases under capital lease | 5,500 | 5,500 | |||||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 4,503 | 4,503 | 0 | ||||||
Value of vessels acquired- part non cash acquisition | $ 315,000 | $ 445,000 | |||||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 4,024,984 | ||||||||
Stock Issued During Period, Value, Purchase of Assets | $ 58,000 | ||||||||
Contract with Customer, Asset, Net | $ 18,000 | ||||||||
Capital Leases, Balance Sheet, Assets by Major Class, Net | $ 749,889 | $ 749,889 | $ 0 | ||||||
14,000 TEU Containership [Member] | |||||||||
Vessels under capital lease, net [Line Items] | |||||||||
Capital Leased Assets, Number of Units | containership | 4 | ||||||||
10,600 TEU Containership [Member] | |||||||||
Vessels under capital lease, net [Line Items] | |||||||||
Capital Leased Assets, Number of Units | containership | 3 | ||||||||
Minimum [Member] | |||||||||
Vessels under capital lease, net [Line Items] | |||||||||
Term of lease or charter | 6 years | 5 years | |||||||
Maximum [Member] | |||||||||
Vessels under capital lease, net [Line Items] | |||||||||
Term of lease or charter | 11 years | 15 years | |||||||
Assets Held under Capital Leases [Member] | |||||||||
Vessels under capital lease, net [Line Items] | |||||||||
Depreciation | $ 4,500 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)tankercontract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
NEWBUILDINGS [Abstract] | |||
Interest capitalized in the cost of newbuildings | $ | $ 0 | $ 1.2 | $ 1.2 |
Number of newbuilding contracts | contract | 0 | ||
Number of oil product tankers contracted to be acquired | tanker | 2 | ||
Newbuilding vessels and equipment under construction | 2 |
INVESTMENTS IN DIRECT FINANCI_3
INVESTMENTS IN DIRECT FINANCING LEASES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2015vessel | Dec. 31, 2018USD ($)vesselRate | Dec. 31, 2018USD ($)vesselRate | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 27, 2018vessel | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||||||
Purchase of vessels | $ 1,137,703 | $ 0 | $ 0 | |||
Subsidiary, percentage owned | Rate | 100.00% | 100.00% | ||||
Investment in Direct Financing Leases (Details) | ||||||
Number of VLCCs and Suezmaxes Chartered | vessel | 9 | |||||
Term of charters, minimum (in years) | 6 years | |||||
Term of charters, maximum (in years) | 8 years | |||||
Vessel impairment charge | $ 64,338 | $ 0 | $ 5,314 | |||
Assets accounted for as direct financing leases and leased to related parties | vessel | 4 | 4 | ||||
Number of container vessels contracted to be chartered in | vessel | 2 | 4 | 4 | 2 | 2 | |
Assets accounted for as sales-type lease | vessel | 1 | 1 | 1 | |||
Term of lease or charter | 15 years | 7 years | ||||
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | $ 802,159 | $ 802,159 | $ 618,071 | |||
Total minimum lease payments to be received | 1,173,152 | 1,173,152 | 916,765 | |||
Minimum future lease revenues to be received [Abstract] | ||||||
2019 | 106,503 | 106,503 | ||||
2020 | 105,877 | 105,877 | ||||
2021 | 105,257 | 105,257 | ||||
2022 | 104,849 | 104,849 | ||||
2023 | 104,690 | 104,690 | ||||
Thereafter | 645,976 | 645,976 | ||||
Total minimum lease revenues | 1,173,152 | 1,173,152 | ||||
Container vessels contracted in subject to direct financing leases [Member] | ||||||
Investment in Direct Financing Leases (Details) | ||||||
Total minimum lease payments to be received | $ 870,000 | $ 870,000 | $ 432,200 | |||
Maximum [Member] | ||||||
Investment in Direct Financing Leases (Details) | ||||||
Term of lease or charter | 11 years | 15 years | ||||
Minimum [Member] | ||||||
Investment in Direct Financing Leases (Details) | ||||||
Term of lease or charter | 6 years | 5 years |
INVESTMENTS IN DIRECT FINANCI_4
INVESTMENTS IN DIRECT FINANCING LEASES (Components of Investments in Direct Financing and Sales-type Leases) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2015 | Dec. 31, 2018USD ($)containership | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 31, 2018vessel | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Sep. 30, 2018containership | May 31, 2018containership | Apr. 05, 2018containership | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | ||||||||||
Document Period End Date | Dec. 31, 2018 | |||||||||
Chartered in vessels, carrying value | $ 283,900 | $ 581,200 | ||||||||
Term of lease or charter | 15 years | 7 years | ||||||||
Number of Container Vessels acquired | containership | 15 | 3 | 4 | 15 | ||||||
Vessel impairment charge | $ 64,338 | 0 | $ 5,314 | |||||||
Number of offshore supply vessels under finance lease | 1 | |||||||||
Total minimum lease payments to be received | 916,765 | 1,173,152 | ||||||||
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (211,508) | (74,077) | ||||||||
Net minimum lease payments receivable | 705,257 | 1,099,075 | ||||||||
Estimated residual values of leased property (un-guaranteed) | 232,424 | 180,080 | ||||||||
Less: unearned income | (319,610) | (476,996) | ||||||||
Total investment in direct financing leases | 618,071 | 802,159 | ||||||||
Current portion | 32,096 | 39,804 | ||||||||
Long-term portion | $ 585,975 | $ 762,355 | ||||||||
Number of offshore supply vessels owned | 5 | 5 | ||||||||
Assets accounted for as direct financing and sales type leases | vessel | 13 | 24 |
INVESTMENTS IN DIRECT FINANCI_5
INVESTMENTS IN DIRECT FINANCING LEASES - Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)vessel | Dec. 31, 2017vessel | Jun. 30, 2015USD ($) | |
Related Party Transaction [Line Items] | |||
Capital Leases, Future Minimum Payments Receivable | $ 1,173,152,000 | ||
Number of VLCCs and Suezmaxes Chartered | vessel | 9 | ||
Frontline Charterers [Member] | |||
Related Party Transaction [Line Items] | |||
Capital Leases, Future Minimum Payments Receivable | $ 162,400,000 | ||
Number of VLCCs and Suezmaxes Chartered | vessel | 3 | ||
Cash reserve per vessel | $ 2,000,000 | ||
Frontline Management [Member] | Vessels Leased to Frontline Charterers [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transactions Daily Vessel Management Fee | $ 9,000 |
INVESTMENTS IN DIRECT FINANCI_6
INVESTMENTS IN DIRECT FINANCING LEASES Investments in direct financing leases (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018 | Dec. 31, 2018Rate | |
Lessor, Lease, Description [Line Items] | |||||
Number of offshore supply vessels under operating leases | 4 | 2 | |||
Document Period End Date | Dec. 31, 2018 | ||||
Purchase of vessels | $ | $ 1,137,703 | $ 0 | $ 0 | ||
Number of container vessels | vessel | 1 | ||||
Subsidiary, percentage owned | Rate | 100.00% | ||||
15 MSC Feeder Vessels [Member] | |||||
Lessor, Lease, Description [Line Items] | |||||
Purchase of vessels | $ | $ 105,500 | ||||
Sales Type Lease [Member] | |||||
Lessor, Lease, Description [Line Items] | |||||
Number of container vessels | vessel | 2 |
INVESTMENTS IN DIRECT FINANCI_7
INVESTMENTS IN DIRECT FINANCING LEASES Investments in direct financing leases (impairments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Capital Leased Assets [Line Items] | |||
Vessel impairment charge | $ 64,338 | $ 0 | $ 5,314 |
Front Page, Front Stratus, Front Serenade [Member] | |||
Capital Leased Assets [Line Items] | |||
Vessel impairment charge | $ 21,800 | ||
Number of vessels impaired | 3 | ||
Front Ariake [Member] | |||
Capital Leased Assets [Line Items] | |||
Vessel impairment charge | $ 6,800 | ||
Sea Leopard [Member] | |||
Capital Leased Assets [Line Items] | |||
Vessel impairment charge | $ 10,300 |
INVESTMENT IN ASSOCIATED COMP_3
INVESTMENT IN ASSOCIATED COMPANIES (Details) shares in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2013USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2015shares | Dec. 31, 2018USD ($)drilling_rig | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2017 | May 31, 2013USD ($) | Dec. 31, 2008vessel | |||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Document Period End Date | Dec. 31, 2018 | ||||||||||
Number of shares received | shares | 55 | ||||||||||
Equity in earnings of associated companies | $ 14,635,000 | $ 23,766,000 | $ 27,765,000 | ||||||||
Term loan facility, amount outstanding | 1,460,347,000 | 1,522,900,000 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Due to related parties | 1,349,000 | 857,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Interest payable to parent | $ 6,378,000 | $ 6,378,000 | 0 | 0 | |||||||
Proportion of secured bank lenders in restructuring agreement with Seadrill Limited | 97.00% | ||||||||||
Proportion of bondholders in restructuring agreement with Seadrill Limited | 40.00% | ||||||||||
Number Of Drilling Units | drilling_rig | 3 | ||||||||||
SFL Deepwater, SFL Hercules, SFL Linus [Member] | |||||||||||
Statement of operations information [Abstract] | |||||||||||
Number Of Drilling Units | drilling_rig | 3 | ||||||||||
SFL Deepwater [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from equity method investment dividends | $ 3,400,000 | $ 46,300,000 | |||||||||
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, extension term | 4 years | ||||||||||
Term loan facility, amount guaranteed | $ 84,700,000 | $ 75,000,000 | |||||||||
Lease Agreement, Extension Term | 13 months | ||||||||||
Term loan facility, amount outstanding | $ 203,700,000 | 225,800,000 | |||||||||
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 | $ 0 | 0 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 19,558,000 | 26,242,000 | |||||||||
Non-current assets | 302,362,000 | 317,450,000 | |||||||||
Total assets | 321,920,000 | 343,692,000 | |||||||||
Current liabilities | 18,252,000 | 25,642,000 | |||||||||
Non-current liabilities | [1] | 297,060,000 | 315,415,000 | ||||||||
Total liabilities | 315,312,000 | 341,057,000 | |||||||||
Total shareholders' equity (2) | 6,608,000 | 2,635,000 | |||||||||
Due to parent | 109,000,000 | 113,000,000 | |||||||||
Due to related parties | 171,000 | ||||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 19,594,000 | 20,873,000 | $ 22,088,000 | ||||||||
Net operating revenues | 19,540,000 | 20,873,000 | 22,088,000 | ||||||||
Net income | 3,973,000 | 5,981,000 | 6,778,000 | [2] | |||||||
Interest payable to parent | $ 5,100,000 | 5,400,000 | 6,500,000 | ||||||||
SFL Hercules [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from equity method investment dividends | $ 3,800,000 | $ 25,100,000 | |||||||||
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, extension term | 4 years | ||||||||||
Term loan facility, amount guaranteed | $ 78,900,000 | $ 70,000,000 | |||||||||
Lease Agreement, Extension Term | 13 months | ||||||||||
Term loan facility, amount outstanding | $ 210,000,000 | 251,300,000 | |||||||||
Available amount under revolving part of credit facility | 0 | 0 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 16,858,000 | 29,152,000 | |||||||||
Non-current assets | 290,370,000 | 305,852,000 | |||||||||
Total assets | 307,228,000 | 335,004,000 | |||||||||
Current liabilities | 19,487,000 | 29,443,000 | |||||||||
Non-current liabilities | [1] | 281,627,000 | 302,819,000 | ||||||||
Total liabilities | 301,114,000 | 332,262,000 | |||||||||
Total shareholders' equity (2) | 6,114,000 | 2,742,000 | |||||||||
Due to parent | 80,000,000 | 80,000,000 | |||||||||
Due to related parties | 10,100,000 | 97,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 19,126,000 | 21,827,000 | $ 23,292,000 | ||||||||
Net operating revenues | 19,049,000 | 21,827,000 | 23,292,000 | ||||||||
Net income | 3,372,000 | 6,462,000 | 6,424,000 | ||||||||
Interest payable to parent | $ 3,600,000 | 4,300,000 | 6,500,000 | ||||||||
SFL Linus [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from equity method investment dividends | $ 7,300,000 | $ 42,100,000 | |||||||||
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, extension term | 4 years | ||||||||||
Term loan facility, amount guaranteed | $ 102,500,000 | $ 90,000,000 | |||||||||
Term loan facility, amount outstanding | 241,500,000 | 308,800,000 | |||||||||
Available amount under revolving part of credit facility | 0 | 0 | |||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 21,673,000 | 42,329,000 | |||||||||
Non-current assets | 375,222,000 | 396,765,000 | |||||||||
Total assets | 396,895,000 | 439,094,000 | |||||||||
Current liabilities | 31,442,000 | 51,543,000 | |||||||||
Non-current liabilities | [1] | 353,068,000 | 382,250,000 | ||||||||
Total liabilities | 384,510,000 | 433,793,000 | |||||||||
Total shareholders' equity (2) | 12,385,000 | 5,301,000 | |||||||||
Due to parent | 121,000,000 | 121,000,000 | |||||||||
Due to related parties | 21,700,000 | 3,600,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 25,852,000 | 30,787,000 | $ 34,889,000 | ||||||||
Net operating revenues | 25,821,000 | 30,787,000 | 34,889,000 | ||||||||
Net income | 7,290,000 | 11,323,000 | 14,563,000 | ||||||||
Interest payable to parent | 5,400,000 | 5,500,000 | 5,600,000 | ||||||||
Total [Member] | |||||||||||
Summarized balance sheet information [Abstract] | |||||||||||
Current assets | 58,089,000 | 97,723,000 | |||||||||
Non-current assets | 967,954,000 | 1,020,067,000 | |||||||||
Total assets | 1,026,043,000 | 1,117,790,000 | |||||||||
Current liabilities | 69,181,000 | 106,628,000 | |||||||||
Non-current liabilities | [1] | 931,755,000 | 1,000,484,000 | ||||||||
Total liabilities | 1,000,936,000 | 1,107,112,000 | |||||||||
Total shareholders' equity (2) | 25,107,000 | 10,678,000 | |||||||||
Statement of operations information [Abstract] | |||||||||||
Operating revenues | 64,572,000 | 73,487,000 | 80,269,000 | ||||||||
Net operating revenues | 64,410,000 | 73,487,000 | 80,269,000 | ||||||||
Net income | $ 14,635,000 | $ 23,766,000 | $ 27,765,000 | [2] | |||||||
[1] | SFL Deepwater, SFL Hercules and SFL Linus non-current liabilities at December 31, 2018, include $109.0 million (2017: $113.0 million), $80.0 million (2017: $80.0 million) and $121.0 million (2017: $121.0 million) due to Ship Finance, respectively (see Note 24: Related party transactions). In addition, SFL Hercules and SFL Linus current liabilities at December 31, 2018, include a further $10.1 million and $21.7 million due to Ship Finance. SFL Deepwater balance was $nil (2017: $0.1 million, $3.6 million and $0.2 million) due to Ship Finance (see Note 24: Related party transactions). (2)In the year ended December 31, 2018, SFL Deepwater, SFL Hercules and SFL Linus did not pay any dividends (2017: $3.4 million; 2016: $46.3 million), (2017: $3.8 million; 2016: $25.1 million), (2017: $7.3 million; 2016: $42.1 million), respectively. | ||||||||||
[2] | The net income of SFL Deepwater, SFL Hercules and SFL Linus for the year ended December 31, 2018, includes interest payable to Ship Finance amounting to $5.1 million (2017: $5.4 million; 2016: $6.5 million), $3.6 million (2017: $4.3 million; 2016: $6.5 million), and $5.4 million (2017: $5.5 million; 2016: $5.6 million), respectively (see Note 24: Related party transactions). |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Vessel operating expenses | $ 5,395 | $ 6,111 |
Administrative expenses | 628 | 552 |
Interest expense | 6,487 | 6,688 |
Accrued expenses | $ 12,510 | $ 13,351 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred and prepaid charter revenue | $ 7,562 | $ 3,936 |
Capital Lease Obligations, Current | 67,793 | 9,031 |
Employee taxes | 195 | 18 |
Other items | 575 | 1,739 |
Other current liabilities | $ 8,332 | $ 5,693 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jan. 30, 2013 | Feb. 28, 2018USD ($) | Aug. 31, 2017USD ($)carriersubsidiary | Jun. 30, 2017 | Oct. 31, 2016USD ($) | Nov. 30, 2015USD ($)carriersubsidiary | Jul. 31, 2015USD ($)carriersubsidiary | Jun. 30, 2015USD ($)carriercontainershipsubsidiary | Dec. 31, 2014subsidiary | Nov. 30, 2014USD ($)containershipsubsidiary | Sep. 30, 2014USD ($)containershipsubsidiary | Aug. 31, 2014USD ($)vesselsubsidiary | Jun. 30, 2014USD ($)subsidiary | Mar. 31, 2014 | Jan. 31, 2013USD ($)$ / sharesshares | May 31, 2011USD ($)vesselsubsidiary | Mar. 31, 2011USD ($)carrier | Nov. 30, 2010USD ($)carriersubsidiary | Mar. 31, 2010USD ($) | Feb. 28, 2010USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018USD ($)carriersubsidiary | Dec. 31, 2018NOK (kr)carriersubsidiary | Dec. 31, 2017USD ($)carriershares | Dec. 31, 2017NOK (kr) | Dec. 31, 2016USD ($)vessel | Dec. 31, 2018shares | Dec. 31, 2018containership | Dec. 31, 2018vessel | Dec. 31, 2018$ / shares | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Sep. 30, 2018containership | Sep. 13, 2018NOK (kr) | May 31, 2018containership | May 04, 2018USD ($) | Apr. 23, 2018USD ($)$ / sharesshares | Apr. 05, 2018containership | Dec. 31, 2017NOK (kr)carriershares | Oct. 31, 2017NOK (kr) | Jun. 22, 2017NOK (kr) | Nov. 30, 2016USD ($)shares | Oct. 05, 2016USD ($)$ / sharesshares | Feb. 29, 2016vessel | Dec. 30, 2014USD ($) | Mar. 19, 2014NOK (kr) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Document Period End Date | Dec. 31, 2018 | Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Own-share Lending Arrangement, Shares, Total Authorised for share lending arrangement | shares | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of bonds | $ 12,800,000 | $ 0 | $ 97,248,000 | $ 68,383,000 | $ 296,800,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 0 | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
gain on repurchase of bonds | 900,000 | 400,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 1,522,900,000 | 1,460,347,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: unamortized debt issuance costs | (18,893,000) | (23,267,000) | |||||||||||||||||||||||||||||||||||||||||||||||
Less : current portion of long-term debt | (313,823,000) | (267,149,000) | |||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt, non-current portion | 1,190,184,000 | 1,169,931,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 267,149,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 196,093,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 463,516,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 199,466,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 321,830,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 12,293,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 1,522,900,000 | 1,460,347,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Three month dollar LIBOR rate (in hundredths) | 1.694% | 2.808% | 1.694% | ||||||||||||||||||||||||||||||||||||||||||||||
Three month Norwegian kroner NIBOR rate (in hundredths) | 0.81% | 1.27% | 0.81% | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Container Vessels acquired | containership | 15 | 3 | 4 | 15 | |||||||||||||||||||||||||||||||||||||||||||||
Share Price | $ / shares | $ 10.53 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 1,146,000 | $ (2,305,000) | $ (8,802,000) | ||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible bond issuance due 2021 | $ 20,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of car carriers | carrier | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Number of container vessels | vessel | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels delivered | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Book value of assets pledged under ship mortgages | $ 1,908,000,000 | 1,527,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds due 2023 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Premium of Convertible Debt if Converted at Balance Sheet Date | 65,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of bonds | $ 12,300,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 0 | 600,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 14,000,000 | $ 150,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | 17.0308 | $ 18.9300 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | $ 1,000,000 | $ 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued on conversion of convertible debt | shares | 58.7171 | 52.8157 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares Loaned to Affiliate (in shares) | shares | 3,765,842 | 3,765,842 | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 121,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $ 63,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued on conversion of convertible debt | shares | 9,418,798 | 651,365 | 9,418,798 | ||||||||||||||||||||||||||||||||||||||||||||||
US Dollar 45 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 36,000,000 | 45,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 36,000,000 | 45,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
NOK600million senior unsecured floating rate bonds due 2023 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 69,400,000 | kr 600,000,000 | kr 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 69,400,000 | 600,000,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | kr | kr 600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 350,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.945 | ||||||||||||||||||||||||||||||||||||||||||||||||
Premium of conversion price to share price | 33.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 165,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | (1,500,000) | $ (8,802,000) | ||||||||||||||||||||||||||||||||||||||||||||||
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 | kr | kr 0 | kr 16,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||
NOK 900 Million Senior Unsecured Bonds [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 92,477,000 | 77,700,000 | 672,000,000 | 758,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 92,477,000 | 77,700,000 | 672,000,000 | 758,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Maturity date of debt | Mar. 19, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | kr | kr 900,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | kr | kr 228,000,000 | kr 142,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Redemption price of debt (in hundredths) | 100.50% | ||||||||||||||||||||||||||||||||||||||||||||||||
NOK500million senior unsecured floating rate bonds due 2020 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 61,001,000 | 57,829,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 61,001,000 | 57,829,000 | kr 500,000,000 | kr 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Maturity date of debt | Jun. 22, 2020 | Jun. 22, 2020 | Jun. 22, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | kr | kr 500,000,000 | kr 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
NOK 600 Million Senior Unsecured Bond due 2023 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 69,395,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 69,395,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Premium of Convertible Debt if Converted at Balance Sheet Date | 77,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 5.75% | ||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date of debt | Oct. 15, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 225,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 15.8924 | $ 17.7747 | |||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $ 12,800,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Related Party Share Loan Fee | $ 80,000 | $ 120,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible bond issuance due 2021 | $ 4,600,000 | 4,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | $ 900,000 | 900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued on conversion of convertible debt | shares | 62.9233 | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 63,218,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 63,218,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 1,081,204,000 | 891,471,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 1,081,204,000 | 891,471,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (in hundredths) | 4.26% | 4.22% | 4.26% | ||||||||||||||||||||||||||||||||||||||||||||||
Number Of Vessels Sold | vessel | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 50 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 50,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Term of loan in years | 7 years | 7 years | |||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 50 million secured term loan facility (June 2018) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 0 | 46,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 0 | 46,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 43 million secured term loan facility (February 2010) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 20,600,000 | 17,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 20,600,000 | 17,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 20,600,000 | 17,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 20,600,000 | 17,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 26,300,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 26,300,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 53,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 8 years | ||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 17.5 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | 0 | 17,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of wholly-owned subsidiaries of the Company that entered into secured term loan facility agreement | subsidiary | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US$ 75 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 39,000,000 | 32,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 39,000,000 | 32,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 98,000,000 | 73,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 98,000,000 | 73,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 101 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 44,100,000 | 44,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 44,100,000 | 44,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 20,000,000 | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 100,900,000 | 92,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 100,900,000 | 92,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 104,100,000 | 95,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 104,100,000 | 95,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 29,100,000 | 26,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 29,100,000 | 26,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 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 | $ 149,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 149,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels against which loan was secured | carrier | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US dollar 166 million secured term loan facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 131,700,000 | 117,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 131,700,000 | 117,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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 | 187,000,000 | 173,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 187,000,000 | 173,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt 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) | ||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt [Member] | US Dollar 76 Million Secured Term Loan Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 74,700,000 | 69,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 74,700,000 | 69,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt amount | $ 76,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charges | $ 100,000 | 1,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | Senior Unsecured Convertible Bonds due 2023 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt, Fair Value Disclosures | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 151,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 151,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | Senior Unsecured Convertible Bonds due 2021 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt, Fair Value Disclosures | 225,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 225,000,000 | 212,230,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 225,000,000 | 212,230,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt, Fair Value Disclosures | $ 63,218,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | NOK 900 Million Senior Unsecured Bonds [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 77,722,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ 77,722,000 |
OTHER LONG TERM LIABILITIES (De
OTHER LONG TERM LIABILITIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015vessel | Dec. 31, 2018containership | Dec. 31, 2018vessel | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 27, 2018vessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016vessel | Feb. 29, 2016vessel | Dec. 31, 2014vessel | Dec. 31, 2007USD ($)vessel | |
Other Liabilities Disclosure [Abstract] | |||||||||||
Unamortized sellers' credit | $ 3,282 | $ 3,958 | |||||||||
Obligations under capital leases - long-term portion | 1,104,258 | 230,576 | |||||||||
Other items | 4 | 4 | |||||||||
Other long-term liabilities | $ 3,286 | $ 3,962 | |||||||||
Number of offshore supply vessels acquired | vessel | 7 | ||||||||||
Seller's credit received | $ 39,500 | ||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of container vessels contracted to be chartered in | vessel | 2 | 4 | 2 | 2 | |||||||
Term of lease or charter | 15 years | 7 years | |||||||||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | |||||||
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) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2015vessel | Dec. 31, 2018USD ($)containershipvessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 27, 2018vessel | Sep. 30, 2018containership | May 31, 2018containership | Apr. 05, 2018containership | |
Obligations under Capital Lease [Abstract] | ||||||||
Term of charters, minimum (in years) | 6 years | |||||||
Term of charters, maximum (in years) | 8 years | |||||||
Number of container vessels contracted to be chartered in | vessel | 2 | 4 | 2 | 2 | ||||
Term of lease or charter | 15 years | 7 years | ||||||
Number of Container Vessels acquired | containership | 15 | 3 | 4 | 15 | ||||
Capital Leased Assets, Number of Units | containership | 7 | |||||||
Number of year before option to buy vessel is available | 6 | |||||||
2019 | $ 130,169 | |||||||
2020 | 126,868 | |||||||
2021 | 126,726 | |||||||
2022 | 126,726 | |||||||
2023 | 126,726 | |||||||
Thereafter | 976,801 | |||||||
Total lease obligations | 1,614,016 | |||||||
Less: imputed interest payable | (441,965) | |||||||
Present value of obligations under capital leases | 1,172,051 | $ 239,607 | ||||||
Less: current portion | (67,793) | (9,031) | ||||||
Obligations under capital leases - long-term portion | 1,104,258 | 230,576 | ||||||
Finance Lease, Interest Expense | $ 21,800 | $ 16,000 | $ 200 |
SHARE CAPITAL, ADDITIONAL PAI_3
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2018USD ($) | Jun. 30, 2018shares | Dec. 31, 2018USD ($)containership$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2018containership | May 31, 2018containership | Apr. 05, 2018containership | Oct. 05, 2016shares | Sep. 30, 2016$ / sharesshares | |
Class of Stock [Line Items] | |||||||||
Common shares, authorized | $ 2,000,000 | $ 1,500,000 | |||||||
Common shares, authorized (in shares) | shares | 200,000,000 | 150,000,000 | 125,000,000 | ||||||
Share capital, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 1 | ||||||
Common shares, issued | $ 1,194,000 | $ 1,109,000 | |||||||
Common shares, issued (in shares) | shares | 119,373,064 | 110,930,873 | |||||||
Exercisable at end of year (in dollars per share) | $ / shares | $ 11.78 | ||||||||
Increase in authorised common stock | shares | 50,000,000 | ||||||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 4,024,984 | ||||||||
Number of Container Vessels acquired | containership | 15 | 3 | 4 | 15 | |||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Repayments of Debt | $ 63,200,000 | ||||||||
Shares issued on conversion of convertible debt | shares | 651,365 | 9,418,798 | |||||||
Senior Unsecured Convertible Bonds due 2023 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Repayments of Debt | $ 12,300,000 | $ 0 | |||||||
Adjustment to equity component of 3.25% convertible bond issuance due 2018 arising from reacquisition of bonds | 600,000 | 0 | |||||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Repayments of Debt | 165,800,000 | ||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Repayments of Debt | $ 12,800,000 | 0 | |||||||
Shares issued on conversion of convertible debt | shares | 62.9233 | 56.2596 | |||||||
Adjustment to equity component of 3.25% convertible bond issuance due 2018 arising from reacquisition of bonds | $ 500,000 | $ 0 |
SHARE CAPITAL, ADDITIONAL PAI_4
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Narrative) (Details) $ / shares in Units, kr in Millions | Jan. 30, 2013 | Oct. 31, 2016USD ($) | Jan. 31, 2013USD ($)$ / shares | Sep. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018NOK (kr)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017NOK (kr)shares | Dec. 31, 2016USD ($) | Nov. 30, 2016shares | Oct. 05, 2016USD ($)$ / sharesshares |
Stockholders' Equity Note [Abstract] | |||||||||||
Options exercised (in shares) | shares | 0 | 0 | 7,500 | 7,500 | |||||||
Share capital, par value (in dollars per share) | $ / shares | $ 1 | $ 0.01 | $ 0.01 | ||||||||
Exercisable at end of year (in dollars per share) | $ / shares | $ 11.78 | ||||||||||
Premium on stock options exercised | $ 100,000 | ||||||||||
Common stock, value authorized | $ 2,000,000 | 1,500,000 | |||||||||
Own-share Lending Arrangement, Shares, Total Authorised for share lending arrangement | shares | 7,000,000 | ||||||||||
Long-term debt | $ 1,460,347,000 | $ 1,522,900,000 | |||||||||
Share Capital, shares authorized | shares | 125,000,000 | 200,000,000 | 150,000,000 | ||||||||
Share Capital, shares issued | shares | 93,504,575 | 119,373,064 | 110,930,873 | ||||||||
Share Capital Details | |||||||||||
Equity component of convertible bond issuance due 2021 | $ 20,700,000 | ||||||||||
Senior Unsecured Convertible Bonds due 2021 [Member] | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||||||||
Share Capital Details | |||||||||||
Debt amount | $ 225,000,000 | ||||||||||
Common Stock, Shares Loaned to Affiliate (in shares) | shares | 8,000,000 | ||||||||||
Maturity date of debt | Oct. 15, 2021 | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 15.8924 | $ 17.7747 | |||||||||
Equity component of convertible bond issuance due 2021 | $ 4,600,000 | $ 4,100,000 | |||||||||
Repayments of Debt | $ 12,800,000 | $ 0 | |||||||||
Shares issued on conversion of convertible debt | shares | 62.9233 | 56.2596 | |||||||||
Denomination of unsecured corporate bond | $ 1,000 | ||||||||||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||||||
Share Capital Details | |||||||||||
Debt amount | $ 350,000,000 | ||||||||||
Maturity date of debt | Feb. 1, 2018 | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.945 | ||||||||||
Premium of conversion price to share price | 33.00% | ||||||||||
Repayments of Debt | 165,800,000 | ||||||||||
Write off of Deferred Debt Issuance Cost | kr | kr 0 | kr 16.4 | |||||||||
Contributed surplus | |||||||||||
Share Capital Details | |||||||||||
Transfer arising from reduction in par value of issued shares | $ 92,600,000 | $ 0 | $ 0 | $ 92,570,000 |
SHARE OPTION PLAN (Details)
SHARE OPTION PLAN (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Document Period End Date | Dec. 31, 2018 | |||
Share options [Roll Forward] | ||||
Options exercised (in shares) | 0 | (7,500) | ||
Weighted average exercise price [Abstract] | ||||
Exercisable at end of year (in dollars per share) | $ 11.78 | |||
Weighted average assumptions used to calculate fair value of options [Abstract] | ||||
Weighted average fair value of options granted (in dollars per share) | $ 3.49 | $ 3.77 | $ 3.06 | |
Risk free interest rate | 2.63% | 1.58% | 1.08% | |
Expected share price volatility | 29.51% | 33.02% | 31.27% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Expected life of options (in years) | 3 years 6 months | 3 years 6 months | 3 years 6 months | |
Other disclosures [Abstract] | ||||
Total intrinsic value of options exercised during the period | $ 0 | $ 0 | $ 300,000 | |
Proceeds from Stock Options Exercised | $ 0 | $ 100,000 | $ 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 8 months | |||
Unrecognized compensation costs, period of recognition | 1 year 5 months | 2 years | 2 years 2 months 21 days | |
Employee Stock Option [Member] | ||||
Share options [Roll Forward] | ||||
Options outstanding at beginning of year (in shares) | 369,500 | 279,000 | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 83,000 | 113,000 | 279,000 | |
Options exercised (in shares) | 0 | (7,500) | (125,000) | |
Forfeited (in shares) | (35,000) | (15,000) | 0 | |
Options outstanding at end of year (in shares) | 417,500 | 369,500 | 279,000 | |
Exercisable at end of year (in shares) | 111,500 | 85,500 | 0 | |
Weighted average exercise price [Abstract] | ||||
Options outstanding at beginning of year (in dollars per share) | $ 12.20 | $ 13.03 | $ 12.56 | |
Granted (in dollars per share) | 14.67 | 14.30 | 14.38 | |
Exercised (in dollars per share) | 0 | 11.78 | 12.11 | |
Forfeited (in dollars per share) | 10.03 | 11.78 | 0 | |
Options outstanding at end of year (in dollars per share) | 11.43 | 12.20 | 13.03 | |
Exercisable at end of year (in dollars per share) | $ 10.03 | $ 11.43 | $ 0 | |
Other disclosures [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 300,000 | $ 0 | |
Unrecognized compensation costs related to non-vested options granted | 334,000 | 502,000 | 462,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | 900,000 | $ 507,780 | |
New Options Granted During The Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vesting period, minimum (in years) | 3 years | |||
Weighted average assumptions used to calculate fair value of options [Abstract] | ||||
Expected life of options (in years) | 5 years | |||
Ship Finance International Limited Share Option Scheme [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | $ 500,000 | |||
Additional paid-in capital | ||||
Other disclosures [Abstract] | ||||
Amortization of stock-based compensation | $ 454,000 | $ 374,000 | $ 403,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2018shares | Feb. 28, 2018USD ($) | Feb. 29, 2016USD ($)vesselshares | Jan. 31, 2016 | Oct. 31, 2015 | Jun. 30, 2015USD ($)shares | Oct. 31, 2013USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017 | Mar. 31, 2016 | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2015USD ($)shares | Sep. 30, 2018USD ($)containershipRate | Dec. 31, 2018USD ($)carriervesselNoteshares | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($)vesselshares | Dec. 31, 2018containership | Dec. 31, 2018vessel | Dec. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018Rate | May 31, 2018containership | Apr. 05, 2018containership | Feb. 13, 2018USD ($)Rate | Nov. 30, 2016USD ($)shares | Oct. 05, 2016USD ($)shares | Jun. 05, 2015vessel | May 31, 2013USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Term of time charter | 2 years | ||||||||||||||||||||||||||||
Management fee, percentage | 1.25% | ||||||||||||||||||||||||||||
Document Period End Date | Dec. 31, 2018 | ||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | $ 9,625,000 | $ 41,771,000 | |||||||||||||||||||||||||||
Loans to related parties which are associates | 314,000,000 | 310,144,000 | |||||||||||||||||||||||||||
Long-term receivables from related parties | 0 | 15,616,000 | |||||||||||||||||||||||||||
Due to related parties | 857,000 | 1,349,000 | |||||||||||||||||||||||||||
Long-term debt | 1,522,900,000 | 1,460,347,000 | |||||||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 4 | ||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Operating lease income | $ 0 | ||||||||||||||||||||||||||||
Direct financing lease interest income | $ 9,623,000 | 16,362,000 | $ 22,850,000 | ||||||||||||||||||||||||||
Finance lease service revenue | 22,095,000 | 35,010,000 | 44,523,000 | ||||||||||||||||||||||||||
Profit sharing revenues | $ 1,779,000 | 5,753,000 | $ 51,470,000 | ||||||||||||||||||||||||||
Number Of Vessels Sold | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||
Term of lease/charter (in years) | 15 years | 7 years | |||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | $ 3,400,000 | 2,800,000 | |||||||||||||||||||||||||||
Notes Compensation Received on Termination of Charters, Face Value | 6,000,000 | ||||||||||||||||||||||||||||
Management fees paid, vessels | 45,266,000 | 57,714,000 | 67,221,000 | ||||||||||||||||||||||||||
Administrative expenses - related parties | 1,072,000 | 831,000 | 1,443,000 | ||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Interest income, related party loans | 14,128,000 | 15,265,000 | 18,675,000 | ||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | (2,578,000) | 1,124,000 | (167,000) | ||||||||||||||||||||||||||
Proceeds from sale of vessels and termination of charters | 145,654,000 | 74,791,000 | 29,102,000 | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 4,024,984 | ||||||||||||||||||||||||||||
Marketable Securities | 93,802,000 | 87,174,000 | |||||||||||||||||||||||||||
Debt and Equity Securities, Realized Gain (Loss) | 13,477,000 | 0 | 0 | ||||||||||||||||||||||||||
Dividend income from related parties | 0 | 3,300,000 | 11,550,000 | ||||||||||||||||||||||||||
Marketable Securities, Gain (Loss) | 0 | ||||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Available-for-sale securities impairment charge | 0 | 4,410,000 | 0 | ||||||||||||||||||||||||||
Proceeds from Sale of Available-for-sale Securities | 45,600,000 | ||||||||||||||||||||||||||||
Number of Container Vessels acquired | containership | 3 | 15 | 4 | 15 | |||||||||||||||||||||||||
Interest Expense, Related Party | $ 6,378,000 | 6,378,000 | 0 | 0 | |||||||||||||||||||||||||
Frontline Shipping [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from Related Parties, Noncurrent | 0 | 4,446,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | Rate | 7.50% | ||||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | $ 4,400,000 | ||||||||||||||||||||||||||||
SFL Hercules [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 97,000 | 10,100,000 | |||||||||||||||||||||||||||
SFL Deepwater [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 200,000 | 0 | |||||||||||||||||||||||||||
Deep Sea and Deep Sea Supply BTG [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 0 | 0 | |||||||||||||||||||||||||||
SFL Linus [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 3,600,000 | 21,700,000 | |||||||||||||||||||||||||||
Frontline Charterers, Seadrill, Deep Sea and UFC [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Operating lease income | 53,300,000 | 59,400,000 | 65,300,000 | ||||||||||||||||||||||||||
Direct financing lease interest income | 16,400,000 | 22,900,000 | |||||||||||||||||||||||||||
Finance lease service revenue | 35,000,000 | 44,500,000 | |||||||||||||||||||||||||||
Direct financing lease repayments | 16,800,000 | 25,100,000 | 30,300,000 | ||||||||||||||||||||||||||
Profit sharing revenues | 5,800,000 | 51,500,000 | |||||||||||||||||||||||||||
Frontline Charterers [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 0 | 1,225,000 | |||||||||||||||||||||||||||
Due to related parties | $ 539,000 | 1,125,000 | |||||||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 9 | 3 | 17 | ||||||||||||||||||||||||||
Combined balance of net investments in direct financing leases | 115,000,000 | ||||||||||||||||||||||||||||
Combined balance of net investments in direct financing leases, short-term maturities | 8,000,000 | ||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Due to Related Parties | 1,200,000 | ||||||||||||||||||||||||||||
Cash reserve per vessel | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||||||||
Due from related parties | $ 300,000 | ||||||||||||||||||||||||||||
Management fees paid, vessels | 24,033,000 | 36,536,000 | 45,931,000 | ||||||||||||||||||||||||||
Administrative expenses - related parties | 323,000 | 335,000 | 576,000 | ||||||||||||||||||||||||||
Management fees paid, supervision of newbuildings | 0 | 1,000,000 | 0 | ||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Commission and Brokerage Expenses | 287,000 | $ 269,000 | 390,000 | ||||||||||||||||||||||||||
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] | |||||||||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 6 | ||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Profit sharing revenues | $ 600,000 | ||||||||||||||||||||||||||||
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 | $ 5,579,000 | 8,430,000 | |||||||||||||||||||||||||||
Due from Related Parties, Noncurrent | 0 | 11,170,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Investment Income, Dividend | 0 | 3,300,000 | $ 11,600,000 | ||||||||||||||||||||||||||
Related Party Transactions Daily Vessel Management Fee | 9,000 | ||||||||||||||||||||||||||||
Frontline Shipping and Frontline Shipping II [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Profit share income from July 1 2015 onwards | $ 1,500,000 | 5,600,000 | 50,900,000 | ||||||||||||||||||||||||||
Frontline Management [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due to related parties | 147,000 | 125,000 | |||||||||||||||||||||||||||
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 | 15 | ||||||||||||||||||||||||||||
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 car carriers operating on time charter, for which part or all management supervision was sub-contracted to a related party | carrier | 2 | ||||||||||||||||||||||||||||
Seatankers [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due to related parties | 60,000 | 0 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Administrative expenses - related parties | $ 290,000 | 82,000 | 315,000 | ||||||||||||||||||||||||||
Other related parties [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 66,000 | ||||||||||||||||||||||||||||
Due to related parties | 111,000 | 8,000 | |||||||||||||||||||||||||||
Frontline Charterers, Deep Sea and Seadrill [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Combined balance of net investments in direct financing leases | 314,000,000 | ||||||||||||||||||||||||||||
Combined balance of net investments in direct financing leases, short-term maturities | $ 22,300,000 | ||||||||||||||||||||||||||||
Deep Sea [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Number of vessels leased to related parties classified as direct financing leases | vessel | 1 | 1 | |||||||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 4 | 4 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | 7.25% | ||||||||||||||||||||||||||||
Interest Income, Related Party | $ 400,000 | 900,000 | |||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | $ 11,600,000 | ||||||||||||||||||||||||||||
Notes Compensation Received on Termination of Charters, Face Value | $ 14,600,000 | ||||||||||||||||||||||||||||
Frontline Management AS [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Management fees paid, provision of office facilities | 185,000 | 136,000 | 317,000 | ||||||||||||||||||||||||||
Frontline Corporate Services [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Administrative expenses - related parties | 166,000 | 173,000 | 235,000 | ||||||||||||||||||||||||||
Frontline Management and Frontline Management AS [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due to related parties | 100,000 | 100,000 | |||||||||||||||||||||||||||
Golden Ocean [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due to related parties | 0 | 91,000 | |||||||||||||||||||||||||||
Number of vessels leased to related parties classified as operating leases | vessel | 8 | ||||||||||||||||||||||||||||
Vessels and equipment, net | 233,700,000 | 217,700,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Profit sharing revenues | $ 200,000 | 200,000 | 0 | ||||||||||||||||||||||||||
Profit sharing percentage of earnings from Frontline for use of fleet | 33.00% | ||||||||||||||||||||||||||||
Number of container vessels operating on time charter, for which part or all management supervision was sub-contracted to a related party | vessel | 15 | ||||||||||||||||||||||||||||
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 | $ 20,440,000 | 20,440,000 | 20,496,000 | ||||||||||||||||||||||||||
Related Party, Operating Management Fees | 793,000 | 738,000 | 795,000 | ||||||||||||||||||||||||||
NorAm Drilling [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Dividend income from related parties | 0 | 0 | 0 | ||||||||||||||||||||||||||
Number of units of investments in bonds redeemed | 466,667 | ||||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Interest and Dividend Income, Securities, Operating, Available-for-sale | 500,000 | 500,000 | 500,000 | ||||||||||||||||||||||||||
Other Income | 0 | 100,000 | 0 | ||||||||||||||||||||||||||
Golden Close [Member] | |||||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Interest and Dividend Income, Securities, Operating, Available-for-sale | 200,000 | 600,000 | 200,000 | ||||||||||||||||||||||||||
Term loan facility, amount guaranteed | $ 18,000,000 | ||||||||||||||||||||||||||||
Guarantee term, Period | 6 months | ||||||||||||||||||||||||||||
Other Income | $ 400,000 | ||||||||||||||||||||||||||||
Seadrill [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 0 | 223,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Period of temporary reduction in daily time charter rates | 5 years | ||||||||||||||||||||||||||||
Related Party, Operating Management Fees | 400,000 | ||||||||||||||||||||||||||||
Equity Accounted Subsidiaries [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Interest income, related party loans | 14,100,000 | 15,200,000 | 18,700,000 | ||||||||||||||||||||||||||
Frontline [Member] | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Frontline reverse stock split | shares | 0.20 | ||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | Rate | 7.50% | 7.50% | |||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | $ 10,100,000 | $ 3,400,000 | |||||||||||||||||||||||||||
Number of Loan Notes | Note | 3 | ||||||||||||||||||||||||||||
Sterna Finance [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Debt amount | $ 320,000,000 | ||||||||||||||||||||||||||||
ADS [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Ownership percentage | Rate | 0.00% | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Dividend income from related parties | $ 0 | ||||||||||||||||||||||||||||
Seatankers Management AS [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Management fees paid, provision of office facilities | 108,000 | 105,000 | 0 | ||||||||||||||||||||||||||
Solstad Farstad [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Ownership percentage (less than) | 20.00% | ||||||||||||||||||||||||||||
SFL Deepwater [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 171,000 | ||||||||||||||||||||||||||||
Loans to related parties which are associates | 113,000,000 | 109,144,000 | |||||||||||||||||||||||||||
Due to related parties | 171,000 | ||||||||||||||||||||||||||||
Long-term debt | 225,800,000 | 203,700,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Debt amount | $ 390,000,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Loans advanced to related parties | 145,000,000 | ||||||||||||||||||||||||||||
Due to Related Parties, Noncurrent | 113,000,000 | 109,000,000 | |||||||||||||||||||||||||||
Interest income, related party loans | 5,100,000 | 5,400,000 | 6,500,000 | ||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Term loan facility, amount guaranteed | 75,000,000 | 84,700,000 | |||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||
Interest Expense, Related Party | 5,100,000 | 5,400,000 | 6,500,000 | ||||||||||||||||||||||||||
SFL Hercules [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 97,000 | 10,125,000 | |||||||||||||||||||||||||||
Loans to related parties which are associates | 80,000,000 | 80,000,000 | |||||||||||||||||||||||||||
Due to related parties | 97,000 | 10,100,000 | |||||||||||||||||||||||||||
Long-term debt | 251,300,000 | 210,000,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Debt amount | $ 375,000,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Loans advanced to related parties | 145,000,000 | ||||||||||||||||||||||||||||
Due to Related Parties, Noncurrent | 80,000,000 | 80,000,000 | |||||||||||||||||||||||||||
Interest income, related party loans | 3,600,000 | 4,300,000 | 6,500,000 | ||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Term loan facility, amount guaranteed | 70,000,000 | 78,900,000 | |||||||||||||||||||||||||||
Debt Instrument, Term | 6 years | ||||||||||||||||||||||||||||
Interest Expense, Related Party | 3,600,000 | 4,300,000 | 6,500,000 | ||||||||||||||||||||||||||
Golden Ocean [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 153,000 | 50,000 | |||||||||||||||||||||||||||
SFL Linus [Member] | |||||||||||||||||||||||||||||
Amounts due from and to related parties [Abstract] | |||||||||||||||||||||||||||||
Due from related parties | 3,559,000 | 21,718,000 | |||||||||||||||||||||||||||
Loans to related parties which are associates | 121,000,000 | 121,000,000 | |||||||||||||||||||||||||||
Due to related parties | 3,600,000 | 21,700,000 | |||||||||||||||||||||||||||
Long-term debt | 308,800,000 | 241,500,000 | |||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Debt amount | $ 475,000,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Loans advanced to related parties | 125,000,000 | ||||||||||||||||||||||||||||
Due to Related Parties, Noncurrent | 121,000,000 | 121,000,000 | |||||||||||||||||||||||||||
Interest income, related party loans | 5,400,000 | 5,500,000 | 5,600,000 | ||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Term loan facility, amount guaranteed | 90,000,000 | 102,500,000 | |||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||
Interest Expense, Related Party | 5,400,000 | 5,500,000 | $ 5,600,000 | ||||||||||||||||||||||||||
Sale of oil tanker- Front Century [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 4,100,000 | ||||||||||||||||||||||||||||
Sale of oil tanker- Front Brabant [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 3,600,000 | ||||||||||||||||||||||||||||
Sale of oil tanker- Front Scilla [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 6,500,000 | ||||||||||||||||||||||||||||
Sale of oil tanker- Front Ardenne [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation payable (receivable) for early contract termination of charter | 4,800,000 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Common Stock, ADS [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Marketable Securities | 0 | 9,171,000 | |||||||||||||||||||||||||||
Common Stock, ADS [Member] | ADS [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 4,031,800 | ||||||||||||||||||||||||||||
Payments to Acquire Marketable Securities | $ 10,000,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Marketable Securities | 9,171,000 | ||||||||||||||||||||||||||||
Common stock - NorAm Drilling [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 12,000,000 | ||||||||||||||||||||||||||||
Payments to Acquire Marketable Securities | $ 700,000 | ||||||||||||||||||||||||||||
Debt Securities, Available for Sale, Share Consolidation Ratio | 20 | ||||||||||||||||||||||||||||
Number of shares held after share consolidation | shares | 601,023 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Conversion of Stock, Shares Issued | shares | 623,447 | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 41,756 | ||||||||||||||||||||||||||||
Investment Owned, Balance, Shares | shares | 1,266,226 | ||||||||||||||||||||||||||||
Marketable Securities | 1,462,000 | 3,928,000 | |||||||||||||||||||||||||||
Common Stock, Golden Close [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Marketable Securities | 108,000 | ||||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Available-for-sale securities impairment charge | $ 3,900,000 | ||||||||||||||||||||||||||||
Corproate Bond Securities_Golden Close Super Senior [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Marketable Securities | 2,908,000 | 0 | |||||||||||||||||||||||||||
Golden Close [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Marketable Securities | $ 28,490,000 | $ 0 | |||||||||||||||||||||||||||
Front Page [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | 300,000 | ||||||||||||||||||||||||||||
Front Stratus [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | 200,000 | ||||||||||||||||||||||||||||
Front Serenade [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | 300,000 | ||||||||||||||||||||||||||||
Front Page, Front Stratus, Front Serenade [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | 3,400,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Proceeds from sale of vessels and termination of charters | 22,500,000 | ||||||||||||||||||||||||||||
Front Page, Front Stratus, Front Serenade [Member] | Frontline [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | Rate | 7.50% | ||||||||||||||||||||||||||||
Interest Income, Related Party | 282,000 | ||||||||||||||||||||||||||||
Front Circassia [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Compensation Received on Termination of Charters, Notes Receivable | 4,400,000 | ||||||||||||||||||||||||||||
Notes Compensation Received on Termination of Charters, Face Value | $ 8,900,000 | ||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | (1,400,000) | ||||||||||||||||||||||||||||
Proceeds from sale of vessels and termination of charters | 17,900,000 | ||||||||||||||||||||||||||||
Front Circassia [Member] | Frontline Shipping [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | Rate | 7.50% | ||||||||||||||||||||||||||||
Interest Income, Related Party | 537,000 | ||||||||||||||||||||||||||||
Front Ariake [Member] | |||||||||||||||||||||||||||||
Related party loans [Abstract] | |||||||||||||||||||||||||||||
Gain (Loss) On Disposition of Assets and Termination of Charters | 0 | ||||||||||||||||||||||||||||
Front Ariake [Member] | Frontline [Member] | |||||||||||||||||||||||||||||
Leasing revenues earned from related parties [Abstract] | |||||||||||||||||||||||||||||
Stated interest rate | Rate | 7.50% | ||||||||||||||||||||||||||||
Interest Income, Related Party | $ 58,000 | ||||||||||||||||||||||||||||
Floating Rate Debt [Member] | Sterna Finance [Member] | |||||||||||||||||||||||||||||
Related party leasing and service contracts [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Term | 13 months |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 12, 2017subsidiaryRate | |
Derivative [Line Items] | ||||
Financial instruments (short-term): at fair value | $ 45,047 | $ 503 | ||
Liabilities | 16,213 | 48,618 | ||
Financial instruments (short-term): at fair value | 5,279 | 108 | ||
Assets | 10,633 | 8,347 | ||
Loans to related parties which are associates | 310,144 | 314,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Financial instruments (short-term): at fair value | 0 | 248 | ||
Liabilities | 1,811 | 5,109 | ||
Financial instruments (short-term): at fair value | 0 | 108 | ||
Assets | 5,459 | 5,136 | ||
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Financial instruments (short-term): at fair value | 0 | 255 | ||
Liabilities | 86 | 553 | ||
Assets | 5,174 | 3,211 | ||
Cross Currency Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Financial instruments (short-term): at fair value | 33,004 | 0 | ||
Liabilities | 4,709 | 36,120 | ||
Cross Currency Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Financial instruments (short-term): at fair value | 12,043 | 0 | ||
Liabilities | 0 | 6,836 | ||
Financial instruments (short-term): at fair value | 5,279 | 0 | ||
Cross Currency Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Liabilities | 9,607 | 0 | ||
Seadrill [Member] | ||||
Derivative [Line Items] | ||||
Agreed Proportion of temporary reduction to daily charter rate | Rate | 29.00% | |||
Agreed Temporary Reduction in Daily Time Charter Rates, Period | 5 years | |||
Agreed Period of Charter Extension following Amendments | 13 months | |||
Number of drilling rigs owned by wholly-owned subsidiaries account for using the equity method | subsidiary | 3 | |||
Agreed period of extension to bank loan term | 4 years | |||
Financial Guarantee [Member] | ||||
Derivative [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 266,100 | 235,000 | ||
Seadrill [Member] | ||||
Derivative [Line Items] | ||||
Loans to related parties which are associates | $ 342,000 | $ 317,800 |
FINANCIAL INSTRUMENTS (Interest
FINANCIAL INSTRUMENTS (Interest Rate Risk Management) (Details) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Dec. 31, 2017USD ($) | Oct. 31, 2017NOK (kr) | Jun. 22, 2017NOK (kr) | Mar. 19, 2014NOK (kr) | |||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 900,000 | $ 1,100,000 | ||||||
NOK 900 Million Senior Unsecured Bonds [Member] | ||||||||
Derivative [Line Items] | ||||||||
Debt amount | kr | kr 900,000,000 | |||||||
NOK500million senior unsecured floating rate bonds due 2020 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Debt amount | kr | kr 500,000,000 | kr 500,000,000 | ||||||
Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract 5 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 100,000 | [1] | kr 16,833,000 | |||||
Inception date | Sep. 19, 2018 | |||||||
Maturity date | [1] | Mar. 19, 2019 | ||||||
Fixed Interest Rate | 6.03% | 6.03% | ||||||
Designated as Hedging Instrument [Member] | Cross Currency Contract 1 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | [1] | $ 62,079 | kr 472,000,000 | |||||
Inception date | Sep. 19, 2018 | |||||||
Maturity date | [1] | Sep. 23, 2023 | ||||||
Designated as Hedging Instrument [Member] | Cross Currency Contract 1 [Member] | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Maturity date | Sep. 19, 2023 | |||||||
Designated as Hedging Instrument [Member] | $11,130 (remaining at $11,130) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 11,130 | |||||||
Notional principal, at maturity | $ 11,130 | |||||||
Inception date | May 31, 2011 | |||||||
Maturity date | Jan. 28, 2019 | |||||||
Designated as Hedging Instrument [Member] | $11,130 (remaining at $11,130) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 2.10% | 2.10% | ||||||
Designated as Hedging Instrument [Member] | $11,130 (remaining at $11,130) | 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. 3, 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] | $121,133 (terminating at $79,733) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 121,133 | |||||||
Notional principal, at maturity | $ 79,733 | |||||||
Inception date | May 31, 2012 | |||||||
Maturity date | Aug. 30, 2022 | |||||||
Designated as Hedging Instrument [Member] | $121,133 (terminating at $79,733) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.76% | 1.76% | ||||||
Designated as Hedging Instrument [Member] | $121,133 (terminating at $79,733) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.85% | 1.85% | ||||||
Designated as Hedging Instrument [Member] | $151,008 (equivalent to NOK900 million) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | [1] | $ 151,008 | kr 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] | $92,438 (reducing to $70,125) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 92,438 | |||||||
Notional principal, at maturity | $ 70,125 | |||||||
Inception date | Dec. 28, 2016 | |||||||
Maturity date | Dec. 25, 2021 | |||||||
Derivative instrument, notional principal with future inception date | $ 54,188 | |||||||
Designated as Hedging Instrument [Member] | $92,438 (reducing to $70,125) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 2.29% | 2.29% | ||||||
Designated as Hedging Instrument [Member] | $92,438 (reducing to $70,125) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 2.63% | 2.63% | ||||||
Designated as Hedging Instrument [Member] | $95,625 (reducing to $70,125) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 95,625 | |||||||
Notional principal, at maturity | $ 70,125 | |||||||
Inception date | Jan. 6, 2017 | |||||||
Maturity date | Jan. 6, 2022 | |||||||
Designated as Hedging Instrument [Member] | $95,625 (reducing to $70,125) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 2.12% | 2.12% | ||||||
Designated as Hedging Instrument [Member] | $95,625 (reducing to $70,125) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 2.58% | 2.58% | ||||||
Designated as Hedging Instrument [Member] | $26,693 (reducing to $19,413) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 26,693 | |||||||
Notional principal, at maturity | $ 19,413 | |||||||
Inception date | Sep. 21, 2015 | |||||||
Maturity date | Mar. 19, 2022 | |||||||
Fixed Interest Rate | 1.67% | 1.67% | ||||||
Designated as Hedging Instrument [Member] | $26,693 (reducing to $19,413) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.67% | 1.67% | ||||||
Designated as Hedging Instrument [Member] | $26,693 (reducing to $19,413) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.67% | 1.67% | ||||||
Designated as Hedging Instrument [Member] | $173,906 (reducing to $149,844) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 173,906 | |||||||
Notional principal, at maturity | $ 149,844 | |||||||
Inception date | Feb. 23, 2016 | |||||||
Maturity date | Feb. 4, 2021 | |||||||
Designated as Hedging Instrument [Member] | $173,906 (reducing to $149,844) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.07% | 1.07% | ||||||
Designated as Hedging Instrument [Member] | $173,906 (reducing to $149,844) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fixed Interest Rate | 1.26% | 1.26% | ||||||
Designated as Hedging Instrument [Member] | $63,987 (equivalent to NOK500 million) | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | [1] | $ 63,987 | kr 500,000,000 | |||||
Inception date | Oct. 19, 2017 | |||||||
Designated as Hedging Instrument [Member] | $63,987 (equivalent to NOK500 million) | Minimum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Maturity date | Mar. 22, 2020 | |||||||
Fixed Interest Rate | 6.86% | 6.86% | ||||||
Designated as Hedging Instrument [Member] | $63,987 (equivalent to NOK500 million) | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Maturity date | Jun. 22, 2020 | |||||||
Fixed Interest Rate | 6.96% | 6.96% | ||||||
Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract 5 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | [1] | $ 16,833 | kr 100,000,000 | |||||
Fixed Interest Rate | 6.03% | 6.03% | ||||||
Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract 5 [Member] | Maximum [Member] | ||||||||
Derivative [Line Items] | ||||||||
Maturity date | Mar. 19, 2019 | |||||||
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. 25, 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 NOK900 million and NOK500 million unsecured bonds due 2019 and 2020, respectively, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. †This swap relates to the NOK900 million unsecured bond due 2019, where NIBOR plus a margin is paid in exchange for a fixed interest rate. 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) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Sep. 13, 2018NOK (kr) | Dec. 31, 2017USD ($) | Mar. 19, 2014NOK (kr) | |||
Derivative [Line Items] | |||||||
Debt amount | $ | $ 900,000 | $ 1,100,000 | |||||
NOK600million senior unsecured floating rate bonds due 2023 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt Instrument, Face Amount | kr 600,000,000 | ||||||
NOK 900 Million Senior Unsecured Bonds [Member] | |||||||
Derivative [Line Items] | |||||||
Debt Instrument, Face Amount | kr 900,000,000 | ||||||
Designated as Hedging Instrument [Member] | Cross Currency Contract 1 [Member] | |||||||
Derivative [Line Items] | |||||||
Inception date | Sep. 19, 2018 | ||||||
Maturity date | [1] | Sep. 23, 2023 | |||||
Debt amount | [1] | $ 62,079 | kr 472,000,000 | ||||
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 | |||||
Debt amount | [1] | $ 151,008 | 900,000,000 | ||||
Designated as Hedging Instrument [Member] | $63,987 (equivalent to NOK500 million) | |||||||
Derivative [Line Items] | |||||||
Inception date | Oct. 19, 2017 | ||||||
Debt amount | [1] | $ 63,987 | 500,000,000 | ||||
Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract 5 [Member] | |||||||
Derivative [Line Items] | |||||||
Inception date | Sep. 19, 2018 | ||||||
Maturity date | [1] | Mar. 19, 2019 | |||||
Debt amount | $ 100,000 | [1] | kr 16,833,000 | ||||
[1] | These swaps relate to the NOK900 million and NOK500 million unsecured bonds due 2019 and 2020, respectively, and the fixed interest rates paid are exchanged for NIBOR plus the margin on the bonds. †This swap relates to the NOK900 million unsecured bond due 2019, where NIBOR plus a margin is paid in exchange for a fixed interest rate. 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) $ in Thousands, kr in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) |
Non-derivatives: | ||||
Floating Rate NOK Bonds due 2019 | $ 92,709 | |||
Long-term debt | $ 1,460,347 | 1,522,900 | ||
Financial instruments (short-term): at fair value | 5,279 | 108 | ||
Derivatives: | ||||
Derivative Asset, Noncurrent | 10,633 | 8,347 | ||
Interest rate/ currency swap contracts – long-term receivables | 8,347 | |||
Long term receivables, non-designated swap contracts | 5,200 | 3,200 | ||
Long term payables, non-designated swap contracts | 100 | 7,400 | ||
Carrying Value [Member] | ||||
Non-derivatives: | ||||
Floating Rate NOK Bonds due 2019 | 92,477 | |||
Derivatives: | ||||
Swap contracts short term receivables fair value disclosure | 108 | |||
Derivative Asset, Noncurrent | 5,279 | |||
Interest rate/ currency swap contracts – long-term receivables | 8,347 | |||
Interest rate/ currency swap contracts – short-term payables | 45,047 | 503 | ||
Interest rate/ currency swap contracts – long-term payables | 16,213 | 48,618 | ||
Fair Value [Member] | ||||
Non-derivatives: | ||||
Available-for-sale debt securities | 13,245 | 41,742 | ||
Equity Securities, FV-NI | 73,929 | 52,060 | ||
Floating Rate NOK Bonds due 2019 | 77,916 | 92,709 | ||
Floating rate NOK bonds due 2023 | 69,568 | 0 | ||
Floating Rate NOK Bonds due 2020 | 58,841 | 61,306 | ||
Derivatives: | ||||
Swap contracts short term receivables fair value disclosure | 108 | |||
Interest rate/ currency swap contracts – long-term receivables | 8,347 | |||
Interest rate/ currency swap contracts – short-term payables | 503 | |||
Interest rate/ currency swap contracts – long-term payables | 48,618 | |||
Senior Unsecured Convertible Bonds due 2023 [Member] | Carrying Value [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 151,700 | |||
Unsecured convertible bonds | 0 | |||
Senior Unsecured Convertible Bonds due 2023 [Member] | Fair Value [Member] | ||||
Non-derivatives: | ||||
Unsecured convertible bonds | 139,374 | 0 | ||
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 0 | |||
Senior Unsecured Convertible Bonds Due 2018 [Member] | Carrying Value [Member] | ||||
Non-derivatives: | ||||
Unsecured convertible bonds | 63,218 | |||
Senior Unsecured Convertible Bonds Due 2018 [Member] | Fair Value [Member] | ||||
Non-derivatives: | ||||
Unsecured convertible bonds | 0 | 71,662 | ||
Senior Unsecured Convertible Bonds due 2021 [Member] | Carrying Value [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 212,230 | 225,000 | ||
Unsecured convertible bonds | 225,000 | |||
Senior Unsecured Convertible Bonds due 2021 [Member] | Fair Value [Member] | ||||
Non-derivatives: | ||||
Unsecured convertible bonds | 199,496 | 242,719 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives: | ||||
Interest rate/ currency swap contracts – short-term payables | 12,000 | 300 | ||
NOK 900 Million Senior Unsecured Bonds [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 77,700 | kr 672 | 92,477 | kr 758 |
NOK 900 Million Senior Unsecured Bonds [Member] | Carrying Value [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 77,722 | |||
NOK500million senior unsecured floating rate bonds due 2020 [Member] | ||||
Non-derivatives: | ||||
Long-term debt | 57,829 | kr 500 | 61,001 | kr 500 |
NOK 600 Million Senior Unsecured Bond due 2023 [Member] | ||||
Non-derivatives: | ||||
Long-term debt | $ 69,395 | 0 | ||
Recurring Basis [Member] | ||||
Non-derivatives: | ||||
Floating Rate NOK Bonds due 2020 | 61,306 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Non-derivatives: | ||||
Floating Rate NOK Bonds due 2019 | 92,709 | |||
Floating Rate NOK Bonds due 2020 | 61,306 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Non-derivatives: | ||||
Unsecured convertible bonds | $ 71,662 |
FINANCIAL INSTRUMENTS (Fair V_2
FINANCIAL INSTRUMENTS (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 05, 2016 | Jan. 31, 2013 |
Assets: | ||||
Available-for-sale Securities, Current | $ 87,174 | $ 93,802 | ||
Derivative Asset, Noncurrent | 10,633 | 8,347 | ||
Financial instruments (short-term): at fair value | 5,279 | 108 | ||
Interest rate/currency swap contracts - long term receivables | 8,347 | |||
Total assets | 103,086 | 102,257 | ||
Liabilities: | ||||
Floating Rate NOK Bonds due 2019 | 92,709 | |||
Long-term debt | 1,460,347 | 1,522,900 | ||
Financial instruments (short-term): at fair value | 45,047 | 503 | ||
Total liabilities | 606,455 | 517,517 | ||
Senior Unsecured Convertible Bonds due 2023 [Member] | ||||
Liabilities: | ||||
Interest rate | 4.875% | |||
US dollar 350 Million Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Liabilities: | ||||
Interest rate | 3.25% | |||
Senior Unsecured Convertible Bonds due 2021 [Member] | ||||
Liabilities: | ||||
Interest rate | 5.75% | |||
Recurring Basis [Member] | ||||
Liabilities: | ||||
Floating Rate NOK Bonds due 2020 | 61,306 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member] | ||||
Assets: | ||||
Total assets | 87,174 | 93,802 | ||
Liabilities: | ||||
Floating Rate NOK Bonds due 2019 | 92,709 | |||
Floating Rate NOK Bonds due 2020 | 61,306 | |||
Total liabilities | 545,195 | 468,396 | ||
Significant Other Observable Inputs (Level 2) [Member] | Recurring Basis [Member] | ||||
Assets: | ||||
Interest rate/currency swap contracts - long term receivables | 8,347 | |||
Total assets | 15,912 | 8,455 | ||
Liabilities: | ||||
Interest rate/ currency swap contracts – long-term payables | 48,618 | |||
Total liabilities | 61,260 | 49,121 | ||
Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | ||||
Assets: | ||||
Available-for-sale debt securities | 0 | |||
Total assets | 0 | 0 | ||
Liabilities: | ||||
Total liabilities | 0 | 0 | ||
Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Liabilities: | ||||
Long-term debt | 0 | |||
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 | 71,662 | |||
Estimate of Fair Value Measurement [Member] | ||||
Assets: | ||||
Available-for-sale debt securities | 13,245 | 41,742 | ||
Equity Securities, FV-NI | 73,929 | 52,060 | ||
Swap contracts short term receivables fair value disclosure | 108 | |||
Interest rate/currency swap contracts - long term receivables | 8,347 | |||
Liabilities: | ||||
Floating Rate NOK Bonds due 2019 | 77,916 | 92,709 | ||
Floating Rate NOK Bonds due 2020 | 58,841 | 61,306 | ||
Floating rate NOK bonds due 2023 | 69,568 | 0 | ||
Interest rate/ currency swap contracts – short-term payables | 503 | |||
Interest rate/ currency swap contracts – long-term payables | 48,618 | |||
Estimate of Fair Value Measurement [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Liabilities: | ||||
Unsecured convertible bonds | 0 | 71,662 | ||
Estimate of Fair Value Measurement [Member] | Senior Unsecured Convertible Bonds due 2021 [Member] | ||||
Liabilities: | ||||
Unsecured convertible bonds | 199,496 | 242,719 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Swap contracts short term receivables fair value disclosure | 108 | |||
Derivative Asset, Noncurrent | 5,279 | |||
Interest rate/currency swap contracts - long term receivables | 8,347 | |||
Liabilities: | ||||
Floating Rate NOK Bonds due 2019 | 92,477 | |||
Interest rate/ currency swap contracts – short-term payables | 45,047 | 503 | ||
Interest rate/ currency swap contracts – long-term payables | 16,213 | 48,618 | ||
Reported Value Measurement [Member] | Senior Unsecured Convertible Bonds Due 2018 [Member] | ||||
Liabilities: | ||||
Unsecured convertible bonds | 63,218 | |||
Reported Value Measurement [Member] | Senior Unsecured Convertible Bonds due 2021 [Member] | ||||
Liabilities: | ||||
Long-term debt | $ 212,230 | 225,000 | ||
Unsecured convertible bonds | $ 225,000 |
FINANCIAL INSTRUMENTS (Concentr
FINANCIAL INSTRUMENTS (Concentrations of Risk) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)vesselcontainership | Dec. 31, 2017USD ($) | Dec. 31, 2016vessel | |
Concentration Risk [Line Items] | |||
Number of container vessels | vessel | 1 | ||
Loans to related parties which are associates | $ 310,144,000 | $ 314,000,000 | |
MSC [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.93% | 9.88% | 4.00% |
Property Subject to or Available for Operating Lease, Number of Units | vessel | 29 | ||
Golden Ocean [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.78% | 13.61% | 12.00% |
Frontline Charterers [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 7.94% | 14.91% | 28.00% |
Seadrill [Member] | Comprehensive Income [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 39.06848% | 38.56475% | 31.72001% |
Maersk [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.69% | 13.98% | 8.57% |
Seadrill [Member] | |||
Concentration Risk [Line Items] | |||
Loans to related parties which are associates | $ 342,000,000 | $ 317,800,000 | |
Frontline Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Minimum Free Cash | 2,000,000 | ||
Related Party Transactions Daily Vessel Management Fee | $ 9,000 | ||
Golden Ocean [Member] | |||
Concentration Risk [Line Items] | |||
Property Subject to or Available for Operating Lease, Number of Units | vessel | 8 | ||
Frontline [Member] | Frontline Shipping [Member] | |||
Concentration Risk [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
Maersk [Member] | |||
Concentration Risk [Line Items] | |||
Number of container vessels | containership | 10 | ||
Financial Guarantee [Member] | |||
Concentration Risk [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 266,100,000 | $ 235,000,000 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2015vessel | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($)vessel | Dec. 27, 2018vessel | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Book value of assets pledged under ship mortgages | $ 1,527,000 | $ 1,908,000 | ||
Related Party Transaction [Line Items] | ||||
Long-term debt | 1,460,347 | 1,522,900 | ||
Loans to related parties which are associates | 310,144 | 314,000 | ||
Contractual commitments under newbuilding contracts | $ 0 | $ 0 | ||
Number of container vessels contracted to be chartered in | vessel | 2 | 4 | 2 | 2 |
Term of lease or charter | 15 years | 7 years | ||
SFL Deepwater [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | $ 203,700 | $ 225,800 | ||
Term loan facility, amount guaranteed | 84,700 | 75,000 | ||
Loans to related parties which are associates | 109,144 | 113,000 | ||
Seadrill [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans to related parties which are associates | 342,000 | 317,800 | ||
SFL Hercules [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 210,000 | 251,300 | ||
Term loan facility, amount guaranteed | 78,900 | 70,000 | ||
Loans to related parties which are associates | 80,000 | 80,000 | ||
SFL Linus [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 241,500 | 308,800 | ||
Term loan facility, amount guaranteed | 102,500 | 90,000 | ||
Loans to related parties which are associates | 121,000 | 121,000 | ||
Equity Accounted Subsidiaries [Member] | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | 655,200 | 785,800 | ||
Financial Guarantee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | $ 266,100 | $ 235,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES Book value of assets pledged (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Other Commitments [Line Items] | ||
Other Commitment | $ 3,400 | $ 0 |
Number of vessels committed to vessel upgrades | 4 | |
Book value of assets pledged under ship mortgages | $ 1,527,000 | $ 1,908,000 |
Number of vessels under capital lease obligations held as vessels under capital lease | 7 | |
Number of vessels under capital lease obligations held as investments in direct financing lease assets | 4 | |
Number of vessels under capital lease obligation | 2 | 11 |
Debt, Long-term and Short-term, Combined Amount | $ 1,460,347 | |
Long-term debt | 1,460,347 | $ 1,522,900 |
Loans to related parties which are associates | 310,144 | 314,000 |
Property Subject to Operating Lease [Member] | ||
Other Commitments [Line Items] | ||
Book value of assets pledged under ship mortgages | 1,424,400 | 1,576,300 |
Property subject to direct financing leases [Member] | ||
Other Commitments [Line Items] | ||
Book value of assets pledged under ship mortgages | 103,100 | 331,300 |
Assets Held under Capital Leases [Member] | ||
Other Commitments [Line Items] | ||
Book value of assets pledged under ship mortgages | 1,331,100 | 283,900 |
Property subject to capital lease, held as vessels under capital lease asset [Domain] | ||
Other Commitments [Line Items] | ||
Book value of assets pledged under ship mortgages | 749,900 | 0 |
Property subject to capital lease, held as investments in direct financing lease assets [Domain] | ||
Other Commitments [Line Items] | ||
Book value of assets pledged under ship mortgages | 581,200 | |
Equity Accounted Subsidiaries [Member] | ||
Other Commitments [Line Items] | ||
Long-term debt | 655,200 | 785,800 |
Ship Finance Ltd and Equity Accounting Subsidiaries [Member] | ||
Other Commitments [Line Items] | ||
Long-term debt | 2,100,000 | 2,300,000 |
Financial Guarantee [Member] | ||
Other Commitments [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 266,100 | 235,000 |
Seadrill [Member] | ||
Other Commitments [Line Items] | ||
Loans to related parties which are associates | $ 342,000 | $ 317,800 |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)variable_interest_entity | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Document Period End Date | Dec. 31, 2018 | |
Number of variable interest entities | variable_interest_entity | 40 | |
Estimated residual values of leased property (un-guaranteed) | $ 180,080 | $ 232,424 |
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 | 18 | |
Variable Interest Entity, Outstanding Lease Obligations | $ 274,300 | |
Variable Interest Entity, Outstanding Lease Obligations, Short Term | 11,300 | |
Carrying value of vessels | 403,900 | |
Unearned lease income | 221,400 | |
Estimated residual values of leased property (un-guaranteed) | 126,200 | |
Outstanding loan balance | 47,000 | |
Outstanding loan balance, current portion | $ 6,200 | |
Variable Interest Entities which contain Finance Lease Obligations [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | variable_interest_entity | 2 | |
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 | 19 | |
Carrying value of vessels | $ 353,900 | |
Outstanding loan balance | 182,900 | |
Outstanding loan balance, current portion | $ 78,900 | |
Variable Interest Entities Accounted for as Vessels under Capital Lease [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | variable_interest_entity | 3 | |
Variable Interest Entity, Outstanding Lease Obligations | $ 270,600 | |
Variable Interest Entity, Outstanding Lease Obligations, Short Term | 20,300 | |
Carrying value of vessels | $ 312,400 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 26, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Oct. 31, 2015 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||||||
Long-term debt | $ 1,460,347 | $ 1,522,900 | |||||||
Proceeds from sale of vessels and termination of charters | 145,654 | 74,791 | $ 29,102 | ||||||
Compensation Received on Termination of Charters, Notes Receivable | $ 3,400 | $ 2,800 | |||||||
Proportion of bondholders in restructuring agreement with Seadrill Limited | 40.00% | ||||||||
Proportion of secured bank lenders in restructuring agreement with Seadrill Limited | 97.00% | ||||||||
Term of lease or charter | 15 years | 7 years | |||||||
Options exercised (in shares) | 0 | 7,500 | |||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 425,000 | 100,000 | |||||||
Dividend declared | $ 0.35 | ||||||||
Options exercised (in shares) | 2,461 | ||||||||
Senior Unsecured Convertible Bonds Due 2018 [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Long-term debt | $ 0 | ||||||||
Shares issued on conversion of convertible debt | 651,365 | 9,418,798 | |||||||
Employee Stock Option [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 83,000 | 113,000 | 279,000 | ||||||
Options exercised (in shares) | 0 | 7,500 | 125,000 |