Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Navios South American Logistics Inc. |
Trading Symbol | NLO |
Entity Central IndexKey | 1,506,042 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Well Known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock Shares Outstanding | 20,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 79,888 | $ 65,182 |
Restricted cash | 0 | 2,900 |
Accounts receivable, net | 25,726 | 32,913 |
Note receivable, current portion | 318 | 0 |
Prepaid expenses and other current assets | 6,183 | 9,792 |
Inventories | 8,257 | 7,815 |
Total current assets | 120,372 | 118,602 |
Deposits for vessels, port terminals and other fixed assets | 36,849 | 136,891 |
Vessels, port terminals and other fixed assets, net | 529,009 | 409,489 |
Intangible assets other than goodwill, net | 60,008 | 63,551 |
Goodwill | 104,096 | 104,096 |
Deferred drydock and special survey costs, net | 16,412 | 20,653 |
Note receivable, net of current portion | 500 | 0 |
Other long-term assets | 769 | 1,898 |
Total noncurrent assets | 747,643 | 736,578 |
Total assets | 868,015 | 855,180 |
Current liabilities | ||
Accounts payable | 22,273 | 29,915 |
Due to affiliate companies | 265 | 54 |
Accrued expenses | 18,350 | 15,901 |
Deferred income | 5,740 | 4,517 |
Notes payable - current portion | 4,711 | 4,532 |
Current portion of capital lease obligations | 0 | 2,639 |
Current portion of long-term debt | 5,254 | 1,819 |
Total current liabilities | 56,593 | 59,377 |
Senior notes, net | 369,260 | 368,180 |
Notes payable, net of current portion | 26,398 | 29,915 |
Long-term debt, net of current portion | 127,123 | 23,502 |
Capital lease obligations, net of current portion | 0 | 14,978 |
Income tax payable | 466 | 435 |
Deferred tax liability | 7,765 | 11,526 |
Other long-term liabilities | 1,135 | 1,097 |
Total noncurrent liabilities | 532,147 | 449,633 |
Total liabilities | 588,740 | 509,010 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock-$1.00 par value: 50,000,000 authorized shares; 20,000 shares issued and outstanding in 2017 and 2016 | 20 | 20 |
Additional paid-in capital | 233,441 | 303,441 |
Retained earnings | 45,814 | 42,709 |
Total stockholders' equity | 279,275 | 346,170 |
Total liabilities and stockholders' equity | $ 868,015 | $ 855,180 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common stock par value | $ 1 | $ 1 |
Number of shares authorized | 50,000,000 | 50,000,000 |
Number of shares issued | 20,000 | 20,000 |
Number of shares outstanding | 20,000 | 20,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Time charter, voyage and port terminal revenues | $ 180,044 | $ 190,218 | $ 211,701 |
Sales of products | 32,572 | 30,118 | 39,347 |
Time charter, voyage and port terminal expenses | (33,617) | (32,139) | (33,564) |
Direct vessel expenses | (62,554) | (69,130) | (74,746) |
Cost of products sold | (30,717) | (27,450) | (36,811) |
Depreciation of vessels, port terminals and other fixed assets | (23,322) | (23,105) | (24,146) |
Amortization of intangible assets | (3,543) | (3,523) | (3,823) |
Amortization of deferred drydock and special survey costs | (7,928) | (6,870) | (7,280) |
General and administrative expenses | (16,665) | (14,294) | (14,008) |
(Provision for) / recovery of losses on accounts receivable | (569) | (1,304) | 52 |
Taxes other than income taxes | (9,018) | (9,740) | (11,976) |
Interest expense and finance cost | (28,347) | (24,240) | (27,082) |
Interest income | 238 | 815 | 569 |
Gain on sale of assets | 1,064 | 0 | 0 |
Foreign exchange differences, net | (726) | 1,722 | 219 |
Other income, net | 2,725 | 61 | 235 |
(Loss)/income before income taxes | (363) | 11,139 | 18,687 |
Income tax benefit/(expense) | 3,468 | (982) | 3,551 |
Net income | $ 3,105 | $ 10,157 | $ 22,238 |
Earnings per share, basic and diluted | $ 0.16 | $ 0.51 | $ 1.11 |
Weighted average number of shares, basic and diluted | 20,000 | 20,000 | 20,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | |||
Net income | $ 3,105 | $ 10,157 | $ 22,238 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||
Depreciation of vessels, port terminals and other fixed assets | 23,322 | 23,105 | 24,146 |
Amortization of deferred drydock and special survey costs | 7,928 | 6,870 | 7,280 |
Income tax (benefit) / expense | (3,468) | 982 | (3,551) |
Amortization of deferred financing costs | 1,275 | 1,002 | 928 |
Amortization of intangible assets | 3,543 | 3,523 | 3,823 |
Accretion of Notes payable / unwinding of discount | (25) | 477 | 0 |
Gain on sale of assets | (1,064) | 0 | 0 |
Provision for/ (recovery of) losses on accounts receivable | 569 | 1,304 | (52) |
Restricted cash | 2,900 | (2,900) | 0 |
Decrease/ (increase) in accounts receivable | 6,684 | (8,120) | 3,271 |
Decrease/ (increase) in prepaid expenses and other current assets | 3,609 | (3,558) | 3,674 |
(Increase)/ decrease in inventories | (442) | (2,047) | 6,667 |
Decrease/ (increase) in other long term assets | 1,166 | (220) | (199) |
Payments for drydock and special survey costs | (3,687) | (7,220) | (9,497) |
Income tax payable | 30 | 435 | 0 |
(Decrease)/ increase in accounts payable | (9,164) | 1,683 | (8,039) |
Increase/ (decrease) in due to/ due from affiliate companies, net | 211 | 350 | (2,079) |
Increase/ (decrease) in accrued expenses | 2,156 | 128 | (1,631) |
Increase/ (decrease) in deferred income | 1,223 | (2,708) | 1,043 |
Increase/ (decrease) in other long term liabilities | 0 | (439) | 503 |
Decrease in due to related parties | 0 | (3,825) | (3,540) |
Net cash provided by operating activities | 39,871 | 18,979 | 44,985 |
INVESTING ACTIVITIES: | |||
Acquisition of vessels port terminals and other fixed assets, net | (9,932) | (4,262) | (7,881) |
Deposits for vessels, port terminals and other fixed assets | (36,589) | (86,911) | (19,158) |
Proceeds from Notes Receivable | 200 | 0 | 0 |
Net cash used in investing activities | (46,321) | (91,173) | (27,039) |
FINANCING ACTIVITIES: | |||
Proceeds from Term Loan B Facility, net of deferred finance costs and discount | 95,487 | 0 | 0 |
Proceeds from Notes Payable | 709 | 35,306 | 0 |
Proceeds from long term debt, net of deferred finance costs | 13,893 | 25,000 | 0 |
Repayment of long-term debt and payment of principal | (2,519) | (69) | (69) |
Repayment of Notes Payable | (4,040) | (1,336) | 0 |
Payment for acquisition of intangible asset | 0 | 0 | (6,800) |
Payments of obligations under capital leases | (12,374) | (3,032) | (1,501) |
Dividends paid | (70,000) | 0 | 0 |
Net cash provided by/ (used in) financing activities | 21,156 | 55,869 | (8,370) |
Net increase/ (decrease) in cash and cash equivalents | 14,706 | (16,325) | 9,576 |
Cash and cash equivalents, beginning of year | 65,182 | 81,507 | 71,931 |
Cash and cash equivalents, end of year | 79,888 | 65,182 | 81,507 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest, net of capitalized interest | 25,863 | 22,999 | 25,771 |
Non-cash investing and financing activities: | |||
Revaluation of vessels due to termination/restructuring of capital lease obligation | 5,243 | 0 | 210 |
Decrease in capital lease obligation due to restructuring | 0 | 0 | (210) |
Transfers from deposits for vessels, port terminals and other fixed assets | 137,357 | 0 | 0 |
Acquisition of vessels port terminals and other fixed assets, net | (843) | (472) | (710) |
Deposits for vessels, port terminals and other fixed assets | $ (726) | $ (5,726) | $ (1,871) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Total Navios Logistics' Stockholders' Equity |
Balance, value at Dec. 31, 2014 | $ 313,775 | $ 20 | $ 303,441 | $ 10,314 | $ 313,775 |
Balance, units at Dec. 31, 2014 | 20,000 | ||||
Net income/(loss) | 22,238 | 22,238 | 22,238 | ||
Balance, units at Dec. 31, 2015 | 20,000 | ||||
Balance at Dec. 31, 2015 | 336,013 | $ 20 | 303,441 | 32,552 | 336,013 |
Net income/(loss) | 10,157 | 10,157 | 10,157 | ||
Balance, units at Dec. 31, 2016 | 20,000 | ||||
Balance at Dec. 31, 2016 | 346,170 | $ 20 | 303,441 | 42,709 | 346,170 |
Net income/(loss) | 3,105 | 3,105 | 3,105 | ||
Dividends | (70,000) | (70,000) | (70,000) | ||
Balance, units at Dec. 31, 2017 | 20 | ||||
Balance at Dec. 31, 2017 | $ 279,275 | $ 20,000 | $ 233,441 | $ 45,814 | $ 279,275 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS[Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1: DESCRIPTION OF BUSINESS Navios South American Logistics Inc. (“Navios Logistics”, the “Company” or “we”) was incorporated under the laws of the Republic of the Marshall Islands on December 17, 2007. We believe we are one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics is focused on providing its customers integrated transportation, storage and related services through its port facilities, its large, versatile fleet of dry and liquid cargo barges and its product tankers. Navios Logistics serves the needs of a number of growing South American industries, including mineral and grain commodity providers as well as users of refined petroleum products. As of December 31, 2017, Navios Maritime Holdings Inc. (“Navios Holdings”) owned 63.8% of Navios Logistics’ stock. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (a) Basis of Presentation: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Navios Logistics and its subsidiaries, both majority and wholly-owned. All significant intercompany balances and transactions between these entities have been eliminated in the consolidated statements. The Company also consolidates entities that are determined to be variable interest entities as defined in the accounting guidance, if it determines that it is the primary beneficiary. The primary beneficiary of a variable interest entity (“VIE”) is the variable interest holder (e.g., a contractual counterparty or capital provider) deemed to have the controlling financial interest in the VIE and therefore must consolidate it. The primary beneficiary is not necessarily the party with the majority or even any of the voting interests in an entity. Rather, the primary beneficiary is the reporting entity that has both of the following characteristics: a) the power to direct the activities that most significantly impact the VIE’s economic performance; and b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Based on internal forecasts and projections, management believes that the company has adequate financial resources to continue in operation and meet its financial commitments, including but not limited to capital expenditures and debt service obligations, for a period of at least twelve months from the date of issuance of these consolidated financial statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements. Subsidiaries Included in the Consolidation: Subsidiaries are those entities in which the Company has an interest of more than one half of the voting rights or otherwise has power to govern the financial and operating policies. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition. The excess of the cost of acquisition over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill. Company Name Country of Incorporation Nature Percentage of Ownership Statement of operations 2017 2016 2015 Corporacion Navios S.A. Uruguay Port-Facility Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Energias Renovables del Sur S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Nauticler S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania Naviera Horamar S.A. Argentina Vessel-Operating Management Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania de Transporte Fluvial International S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ponte Rio S.A. Uruguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Tankers Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Navigation Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Shipping Ltd. Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS South Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrovia Internacional S.A. Uruguay Land-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Mercopar S.A. Paraguay Operating/Barge-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrolera San Antonio S.A. Paraguay Port Facility-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Stability Oceanways S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Hidronave South American Logistics S.A. Brazil Pushboat-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Horamar do Brasil Navegação Ltda Brazil Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navarra Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Pelayo Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navios Logistics Finance (US) Inc. Delaware Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Varena Maritime Services S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Honey Bunkering S.A. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Naviera Alto Parana S.A. Paraguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Edolmix S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Cartisur S.A. Uruguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 NP Trading S.A. British Virgin Islands Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ruswe International S.A. Uruguay Barge-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Delta Naval Trade S.A. Panama Non-Operating Company 100% 1/1-12/31 7/21-12/31 — Terra Norte Group S.A. Paraguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 9/30-12/31 (c) Use of Estimates: The preparation of consolidated financial statements in conformity with the accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for tangible and intangible assets, expected future cash flows from long-lived assets to support impairment tests, impairment test for goodwill, provisions necessary for losses on accounts receivable and demurrages, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions. (d) Cash and Cash Equivalents: Cash and cash equivalents consist of cash on hand, deposits held with banks, and other short-term liquid investments with original maturities of three months or less. (e) Restricted Cash: As of December 31, 2016, restricted cash included $2,900 which related to amounts held in a retention account as part of the Vale International S.A. (“Vale”) arbitration in New York. The restricted cash was released during the first quarter of 2017. See also Note 14. (f) Accounts Receivable, Net: The amount shown as accounts receivable, net, at each balance sheet date, includes receivables from charterers for hire, freight and demurrage billings, net of a provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. (g) Insurance Claims: Insurance claims at each balance sheet date consist of claims submitted and/or claims in the process of compilation or submission (claims pending). They are recorded on the accrual basis and represent the claimable expenses, net of applicable deductibles, incurred through December 31 of each reported period, which are expected to be recovered from insurance companies. Any remaining costs to complete the claims are included in accrued liabilities. Claims receivable mainly represent claims against vessels’ insurance underwriters in respect of damages arising from accidents or other insured risks. While it is anticipated that claims receivable will be recovered within one year, such claims may not all be recovered within one year due to the attendant process of settlement. Nonetheless, amounts are classified as current as they represent amounts currently due to the Company. All amounts are shown net of applicable deductibles. (h) Inventories: Inventories, which primarily consist of petroleum products and other inventories such as lubricants and stock provisions on board of the owned vessels and pushboats at period end, are valued at the lower of cost or market as determined on the first-in, first-out basis. (i) Barges, Pushboats and Other Vessels: Barges, pushboats and other vessels acquired as part of a business combination are recorded at fair value on the date of acquisition and if acquired as an asset acquisition are recorded at cost (including transaction costs). All other barges, pushboats and other vessels acquired are stated at cost, which consists of the contract price, capitalized interest and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for major improvements and upgrading are capitalized, provided they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the assets. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of the sale or retirement and any gain or loss is included in the accompanying consolidated statements of operations. Expenditures for routine maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over the useful life of the assets, after considering the estimated residual value. Management estimates the useful life of the Company’s vessels to be between 15 and 45 years from the asset’s original construction or acquisition. However, when regulations place limitations over the ability of a vessel to trade on a worldwide basis, its useful life is re-estimated to end at the date such regulations become effective. An increase in the useful life of a vessel or in its residual value would have the effect of decreasing the annual depreciation charge and extending it into later periods. A decrease in the useful life of a vessel or in its residual value would have the effect of increasing the annual depreciation charge. We also capitalize interest on long-term construction projects. (j) Port Terminals and Other Fixed Assets, net: Port terminals and other fixed assets acquired as part of a business combination are recorded at fair value on the date of acquisition. All other port terminals and other fixed assets are stated at cost and are depreciated utilizing the straight-line method at rates equivalent to their average estimated economic useful lives. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of sale or retirement and any gain or loss is included in the accompanying consolidated statements of operations. Useful lives of the assets are: Dry port terminal 5 to 49 years Oil storage, plant and port facilities for liquid cargoes 5 to 20 years Other fixed assets 5 to 10 years (k) Deposits for Vessels, Port terminals and Other Fixed Assets: Deposits for vessels, port terminals and other fixed assets represent amounts paid by the Company in accordance with the terms of the purchase agreements for the construction of vessels, port terminals and other fixed assets. Deposits for vessels, port terminals and other fixed assets also include pre-delivery expenses. Pre-delivery expenses represent any direct costs to bring the asset to the condition necessary (including possible relocation) for it to be capable of operating in the manner intended by management. Interest costs incurred during the construction (until the asset is substantially complete and ready for its intended use) are capitalized. Capitalized interest for the years ended December 31, 2017, 2016 and 2015 amounted to $4,764, $5,843 and $2,261, respectively. (l) Impairment of Long-Lived Assets: Vessels, other fixed assets and other long-lived assets held and used by Navios Logistics are reviewed periodically for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be fully recoverable. In accordance with accounting for long-lived assets, management determines projected undiscounted cash flows for each asset group and compares it to its carrying amount. In the event that projected undiscounted cash flows for an asset group is less than its carrying amount, then management reviews fair values and compares them to the asset’s carrying amount. In the event that impairment occurs, an impairment charge is recognized by comparing the asset’s carrying amount to its fair value. For the purposes of assessing impairment, long lived-assets are grouped at the lowest levels for which there are separately identifiable cash flows. For all the periods presented, the management of Navios Logistics after considering various indicators, including but not limited to its long-lived assets’ contracted revenues and cash flows over their remaining useful life and the economic outlook, concluded that no impairment analysis should be performed on the long-lived assets. Although management believes the underlying indicators supporting this conclusion are reasonable, if charter rate trends and the length of the current market downturn occur, management may be required to perform impairment analysis that could expose Navios Logistics to material charges in the future. No impairment loss was recognized for any of the periods presented. (m) Deferred Drydock and Special Survey Costs: The Company’s vessels, pushboats and barges are subject to regularly scheduled drydocking and special surveys that are carried out every five years for oceangoing vessels and up to every eight years for pushboats and barges, to coincide with the renewal of the related certificates issued by the classification societies, unless a further extension is obtained under certain conditions. The costs of drydocking and special survey are deferred and amortized over the above mentioned periods or to the next drydocking or special survey date if such has been determined. Unamortized drydocking or special survey costs of vessels, pushboats and barges sold are charged against income in the year the vessel, pushboat or barge is sold. Costs capitalized as part of the drydocking or special survey consist principally of the actual costs incurred at the yard, spare parts, paints, lubricants and fuel, labour and services incurred solely during the drydocking or special survey period. For each of the years ended December 31, 2017, 2016 and 2015, the amortization expense was $7,928, $6,870 and $7,280, respectively and the payments for drydocking and special survey were $3,687, $7,220 and $9,497, respectively. Accumulated amortization as of December 31, 2017 and 2016 amounted to $34,092 and $26,164, respectively. (n) Deferred Financing Costs: Deferred financing costs include fees, commissions and legal expenses associated with obtaining or modifying loan facilities. These costs are amortized over the life of the related debt using the effective interest rate method, and are included in interest expense. Amortization expense for each of the years ended December 31, 2017, 2016 and 2015 was $1,275, $1,002 and $928, respectively. (o) Goodwill and Other Intangibles: (i) Goodwill: Goodwill is tested for impairment at the reporting unit level at least annually. The Company evaluates impairment of goodwill using a two-step process. First, the aggregate fair value of the reporting unit is compared to its carrying amount, including goodwill. The Company determines the fair value of the reporting unit based on discounted cash flow analysis and believes that the discounted cash flow analysis is the best indicator of fair value for its individual reporting units. If the fair value of a reporting unit exceeds the carrying amount, no impairment exists. If the carrying amount of the reporting unit exceeds the fair value, then the Company must perform the second step to determine the implied fair value of the reporting unit’s goodwill and compare it with its carrying amount. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all the assets and liabilities of that reporting unit, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price. If the carrying amount of the goodwill exceeds the implied fair value, then goodwill impairment is recognized by writing the goodwill down to its implied fair value. The fair value for goodwill impairment testing was estimated using the expected present value of future cash flows, using judgments and assumptions that management believes were appropriate in the circumstances. The significant factors and assumptions the Company used in its discounted cash flow analysis included: EBITDA, the discount rate used to calculate the present value of future cash flows and future capital expenditures. EBITDA assumptions included revenue assumptions, general and administrative expense growth assumptions, and direct vessel expenses growth assumptions. The future cash flows from operations were determined principally by combining revenues from existing contracts and estimated revenues based on the historical performance of each segment, including utilization rates and actual storage capacity. A weighted average cost of capital (“WACC”) was used to discount future estimated cash flows to their present values. The WACC was based on externally observable data regarding risk free rates, risk premiums and systematic risk and on the Company’s cost of equity and debt and its capital structure. No impairment loss was recognized for any of the periods presented. (ii) Intangibles Other Than Goodwill: Navios Logistics’ intangible assets consist of customer relationships, trade name and port terminal operating rights. Intangible assets resulting from acquisitions accounted for using the purchase method of accounting and are recorded at fair value as estimated based on market information, the “relief from royalty” method or discounted cash flows. The fair value of the trade name was determined based on the “relief from royalty” method which values the trade name based on the estimated amount that a company would have to pay in an arm’s length transaction in order to use that trade name. Other intangibles that are being amortized, such as the port terminal operating rights and customer relationships, would be considered impaired if their fair market value could not be recovered from the future undiscounted cash flows associated with the asset. The fair value of customer relationships was determined based on the “excess earnings” method, which relies upon the future cash flow generating ability of the asset. The asset is amortized under the straight line method. When intangible assets or liabilities associated with the acquisition of a vessel are identified, they are recorded at fair value. Fair value is determined by reference to market data and the discounted amount of expected future cash flows. Where charter rates are higher than market charter rates, an asset is recorded, being the difference between the acquired charter rate and the market charter rate for an equivalent vessel. Where charter rates are less than market charter rates, a liability is recorded, being the difference between the assumed charter rate and the market charter rate for an equivalent vessel. The determination of the fair value of acquired assets and assumed liabilities requires us to make significant assumptions and estimates of many variables including market charter rates, expected future charter rates, the level of utilization of our vessels and our weighted average cost of capital. The use of different assumptions could result in a material change in the fair value of these items, which could have a material impact on our financial position and results of operations. No impairment loss was recognized for any of the periods presented. Amortizable intangible assets are amortized under the straight-line method according to the following weighted average amortization periods: Intangible Assets/Liabilities Years Trade name 10 Port terminal operating rights 47 Customer relationships 20 (p) Foreign Currency Translation: The Company’s and its subsidiaries’ functional currency and reporting currency is the U.S. dollar. Therefore, the financial statements of the foreign operations are translated using the exchange rate at the balance sheet date except for property and equipment and equity, which are translated at historical rates. The Company’s subsidiaries in Uruguay, Argentina, Brazil and Paraguay transact part of their operations in Uruguayan pesos, Argentinean pesos, Brazilian reals and Paraguayan guaranies. However, all of the subsidiaries’ primary cash flows are U.S. dollar-denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the consolidated statement of operations. The foreign currency exchange (losses)/gains recognized in the consolidated statement of operations for each of the years ended December 31, 2017, 2016 and 2015 were ($726), $1,722 and $219, respectively. (q) Provisions for contingencies losses: The Company, in the ordinary course of business, is subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency loss is probable at the date of the financial statements and the amount of the loss can be reasonably estimated. If the Company has determined that the reasonable estimate of the probable loss is a range and there is no best estimate within the range, the Company will accrue the lower amount of the range. For probable losses accrued any reasonably possible loss in excess of amounts accrued are disclosed. See Note 14, “Commitments and Contingencies” for further discussion. During the year ended December 31, 2017, the Company recorded $1,272 in the consolidated statement of operations under “Other income, net” as additional income for several contracts relating to the Barge Business. (r) Segment Reporting: Operating segments, as defined, are components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. Based on the Company’s methods of internal reporting and management structure, the Company has three reportable segments: Port Terminal Business, Cabotage Business and Barge Business. See Note 21 for details. (s) Revenue and Expense Recognition: Revenue is recorded when (i) services are rendered, (ii) the Company has signed a charter agreement or other evidence of an arrangement, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured. The Company generates revenue from time charters, bareboat charters, contracts of affreightment/voyage contracts, demurrages and contracts covering dry or liquid port terminal operations. Revenue from time chartering and bareboat chartering is earned and recognized on a daily basis as the service is delivered. Revenue from contracts of affreightment “CoA”/voyage contracts is recognized based upon the percentage of voyage completion. A voyage is deemed to commence upon the barge’s arrival at the loading port, as applicable under the contract, and is deemed to end upon the completion of discharge under the current voyage. The percentage of voyage completion is based on the days traveled as of the balance sheet date divided by the total days expected for the voyage. The position of the barge at the balance sheet date is determined by the days traveled as of the balance sheet date over the total voyage of the pushboat having the barge in tow. Revenue arising from contracts that provide our customers with continuous access to convoy capacity is recognized ratably over the period of the contracts. Demurrage income represents payments made by the charterer to the vessel owner when loading or discharging time exceeds the stipulated time in the voyage charter and is recognized as it is earned. Deferred revenue primarily relates to cash received from clients in either of the Company’s businesses prior to it being earned. These amounts are recognized as revenue over the period that the service is rendered. Revenues from dry port terminal operations consist of an agreed flat fee per ton and cover the services performed to unload barges (or trucks), transfer the product into the silos, or the stockpiles for temporary storage and then loading the oceangoing vessels. Revenues are recognized upon completion of loading of the oceangoing vessels. Additionally, fees are charged for vessel dockage and for storage time in excess of contractually specified terms. Dockage revenues are recognized ratably up to completion of loading. Storage fees are assessed and recognized when the product remains in the silo storage beyond the contractually agreed time allowed. Storage fee revenue is recognized ratably over the storage period and ends when the product is loaded onto the oceangoing vessel. Revenues from liquid port terminal operations consist mainly of sales of petroleum products in the Paraguayan market. Additionally, revenues consist of an agreed flat fee per cubic meter to cover the services performed to unload barges, transfer the products into the tanks for temporary storage and then loading the trucks. Revenues are recognized upon completion of loading the trucks. Additionally, fees are charged for storage time in excess of contractually specified terms. Storage fee revenue is recognized ratably over the storage period and ends when the product is loaded onto the trucks. Time Charter, Voyage and Port Terminal Expenses: Time charter and voyage expenses comprise all expenses related to each particular voyage, including time charter hire paid and voyage freight paid, bunkers, port charges, canal tolls, cargo handling, agency fees and brokerage commissions. Direct Vessel Expenses: Direct vessel expenses consist of all expenses relating to the operation of vessels, including crewing, repairs and maintenance, victualing costs, dockage expenses, insurance, stores and lubricants and miscellaneous expenses such as communications. (t) Financial Instruments: Financial instruments carried on the balance sheet include cash and cash equivalents, trade receivables and payables, other receivables, long-term debt and other liabilities. The particular recognition methods applicable to each class of financial instrument are disclosed in the applicable significant accounting policy description of each item, or included below as applicable. Financial risk management: The Company’s activities expose it to a variety of financial risks including fluctuations in future freight rates, time charter hire rates, and fuel prices, credit and interest rates risk. Risk management is carried out under policies approved by management. Guidelines are established for overall risk management, as well as specific areas of operations. Credit risk: The Company closely monitors its exposure to customers and counterparties for credit risk. Navios Logistics, through its access to Navios Holdings policies and personnel, has policies designed to limit trading to customers and counterparties with an appropriate credit history. Credit risk with respect to accounts receivable is reduced by the Company by rendering services to established international operators. Management believes that no additional credit risk beyond amounts provided for collection losses is inherent in the Company’s trade receivables. Liquidity risk: Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Company monitors cash balances for its working capital needs. Foreign exchange risk: Foreign currency transactions are translated into the measurement currency rates prevailing at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of operations. (u) Earnings per Share: Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the years presented. There are no dilutive or potentially dilutive securities, accordingly there is no difference between basic and diluted net earnings per share. (v) Income Taxes: The Company is a Marshall Islands corporation. The Company believes that substantially all of its operations are exempt from income taxes in the Marshall Islands. The Company’s subsidiaries are, however, subject to income taxes in some of the countries in which they operate, mainly Argentina, Brazil and Paraguay. The Company’s operations in Uruguay and Panama are exempt from income taxes. As per the tax laws of the countries in which the Company operates that are subject to income taxes, the provisions for income taxes have been computed on a separate return basis (i.e., the Company does not prepare a consolidated income tax return). All income tax payments are made by the subsidiaries as required by the respective tax laws. At any point in time, the Company may have tax audits underway at various stages of completion. The Company evaluates the tax positions and establishes liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closing of statute of limitations. Such adjustments are reflected in the tax provision as appropriate. Argentinean companies have open tax years ranging from 2010 and onwards and Paraguayan and Brazilian companies have open tax years ranging from 2011 and onwards. In relation to these open tax years, the Company believes that there are no material uncertain tax positions. The Company is generally not able to reliably estimate the ultimate settlement amounts until the close of an audit. The Company classifies interest and penalties, related to income taxes in the consolidated statement of operations under income taxes. The asset and liability method is used to account for future income taxes. Under this method, future income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Future income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A deferred tax asset i |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 3: CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following: December 31, 2017 December 31, 2016 Cash on hand and at banks $79,885 $65,179 Short-term deposits 3 3 Total cash and cash equivalents $79,888 $65,182 Short-term deposits are comprised of deposits with banks with original maturities of less than 90 days. Cash deposits and cash equivalents in excess of amounts covered by government-provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Logistics does maintain cash deposits and equivalents in excess of government-provided insurance limits. Navios Logistics also seeks to reduce its exposure to credit risk by dealing with a diversified group of major financial institutions. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4: ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: December 31, 2017 December 31, 2016 Accounts receivable $28,507 $35,125 Less: Provision for losses on accounts receivables (2,781) (2,212) Accounts receivable, net $25,726 $32,913 Changes to the provision for accounts receivables are summarized as follows: Provision for Losses on Accounts Receivables Balance at Beginning of Year (Charges to Expenses)/ Amount Recovered Amount Utilized Balance at End of Year Year ended December 31, 2015 $(971) $52 $— $(919) Year ended December 31, 2016 $(919) $(1,304) $11 $(2,212) Year ended December 31, 2017 $(2,212) $(569) $— $(2,781) See Note 2(t) for a discussion of credit risk. For the year ended December 31, 2017, three customers accounted for 20.3%, 13.7% and 12.7% of the Company’s revenue. For the year ended December 31, 2016, three customers accounted for 28.0%, 13.8% and 11.5% of the Company’s revenue, two of them are in common with the ones accounted for in 2017, and for the year ended December 31, 2015, two customers accounted for 27.8% and 12.9% of the Company’s revenue and are common with the customers accounted for in 2016. For the three years, the most significant customer is common. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2017 December 31, 2016 VAT and other tax credits 2,186 2,526 Insurance claims receivable, net 1,025 1,744 Deferred insurance premiums 1,074 2,042 Advances to suppliers 192 1,285 Other 1,706 2,195 Total prepaid expenses and other current assets $6,183 $9,792 See Note 2(g) for insurance claims receivable. |
Vessels, Port Terminals and Oth
Vessels, Port Terminals and Other Fixed Assets, net | 12 Months Ended |
Dec. 31, 2017 | |
VESSELS, PORT TERMINALS AND OTHER FIXED ASSETS [Abstract] | |
VESSELS, PORT TERMINALS AND OTHER FIXED ASSETS, NET | NOTE 6: VESSELS, PORT TERMINALS AND OTHER FIXED ASSETS, NET Vessels, port terminals and other fixed assets, net consist of the following: Tanker Vessels, Barges and Pushboats Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $464,968 $(111,139) $353,829 Additions 6,188 (20,007) (13,819) Restructuring of capital lease (210) — (210) Balance December 31, 2015 $470,946 $(131,146) $339,800 Additions 738 (18,894) (18,156) Transfers 3,696 — 3,696 Balance December 31, 2016 $475,380 $(150,040) $325,340 Additions 5,531 (17,603) (12,072) Disposals (3,585) 3,585 — Revaluation of vessels due to termination of capital lease obligation (5,243) — (5,243) Balance December 31, 2017 $472,083 $(164,058) $308,025 Dry Port Terminals Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $78,385 $(11,446) $66,939 Additions 1,266 (2,173) (907) Balance December 31, 2015 $79,651 $(13,619) $66,032 Additions 452 (2,204) (1,752) Balance December 31, 2016 $80,103 $(15,823) $64,280 Additions 4,362 (4,826) (464) Transfers from deposits for vessels, port terminals and other fixed assets 137,357 — 137,357 Balance December 31, 2017 $221,822 $ (20,649) $201,173 Oil Storage Plant and Port Facilities for Liquid Cargoes Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $28,014 $(9,021) $18,993 Additions 1,021 (1,258) (237) Balance December 31, 2015 $29,035 $(10,279) $18,756 Additions 1,599 (1,289) 310 Transfers (1,513) — (1,513) Balance December 31, 2016 $29,121 $(11,568) $17,553 Additions 698 (411) 287 Balance December 31, 2017 $29,819 $ (11,979) $17,840 Other Fixed Assets Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $5,735 $(1,871) $3,864 Additions 116 (708) (592) Balance December 31, 2015 $5,851 $(2,579) $3,272 Additions 1,945 (718) 1,227 Transfers (2,183) — (2,183) Balance December 31, 2016 $5,613 $(3,297) $2,316 Additions 184 (482) (298) Disposals (75) 28 (47) Balance December 31, 2017 $5,722 $(3,751) $1,971 Total Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $577,102 $(133,477) $443,625 Additions 8,591 (24,146) (15,555) Restructuring of capital lease (210) — (210) Balance December 31, 2015 $585,483 $(157,623) $427,860 Additions 4,734 (23,105) (18,371) Balance December 31, 2016 $590,217 $(180,728) $409,489 Additions 10,775 (23,322) (12,547) Disposals (3,660) 3,613 (47) Transfers from deposits for vessels, port terminals and other fixed assets 137,357 — 137,357 Revaluation of vessels due to termination of capital lease obligation (5,243) — (5,243) Balance December 31, 2017 $729,446 $(200,437) $529,009 Certain assets of the Company have been pledged as collateral for loan facilities. As of December 31, 2017 and 2016, the net book value of such assets was $93,991 and $650, respectively. See also Note 9. On September 4, 2017, Navios Logistics has signed an agreement for the construction of covers for dry barges for a total consideration of $1,115. As of December 31, 2017, Navios Logistics had paid $629. On May 18, 2017, Navios Logistics acquired two product tankers, Ferni H (16,871 DWT) and San San H (16,871 DWT) for $11,239 which were previously leased with an obligation to purchase in 2020. Following the acquisition of the two product tankers, the remaining capital lease obligation was terminated and the carrying value of the tankers was adjusted for the difference between the purchase price and the carrying value. As of December 31, 2016, the obligations for these vessels were accounted for as capital leases and the lease payments during the year ended December 31, 2016 for both vessels were $3,032. See also Note 9. In February 2017, two self-propelled barges of our fleet, Formosa and San Lorenzo, were sold for a total amount of $1,109, to be paid in cash. Sale price will be received in installments in the form of lease payments through 2023. The barges may be transferred at the lessee’s option at no cost at the end of the lease period. Future minimum collections of Note receivable as of December 31, 2017, are as follows: Collections Due by Period December 31, 2017 December 31, 2018 $ 347 December 31, 2019 115 December 31, 2020 111 December 31, 2021 167 December 31, 2022 38 December 31, 2023 131 Total future minimum note receivable collections 909 Less: amount representing interest (91 ) Present value of future minimum Note receivable collections (1) $ 818 (1)Reflected in the balance sheet as Note receivable current and non-current. Deposits for vessels, port terminals and other fixed assets On February 11, 2014, Navios Logistics entered into an agreement, as amended on June 3, 2016, for the construction of three new pushboats with a purchase price of $7,344 for each pushboat. As of December 31, 2017 and December 31, 2016, Navios Logistics had paid $30,708 and $16,156, respectively, for the construction of the new pushboats which were delivered in February 2018. Capitalized interest included in deposits for vessels, port terminals and other fixed assets for the construction of the three new pushboats amounted to $3,384 and $1,934 as of December 31, 2017 and December 31, 2016, respectively. Navios Logistics has signed a shipbuilding contract for the construction of a river and estuary tanker for a total consideration of $14,854 (€12,400). As of December 31, 2017, Navios Logistics had paid $6,141 (including supervision cost). Capitalized interest included in deposits for vessels, port terminals and other fixed assets for the construction of this tanker amounted to $205 as of December 31, 2017. The vessel is expected to be delivered in the second quarter of 2018. Navios Logistics has secured a credit from the shipbuilder to finance up to 50% of the purchase price, with a maximum amount of $7,427 (€6,200). During the second quarter of 2017, Navios Logistics substantially completed the expansion of its dry port in Uruguay. As of December 31, 2017, a total of $137,357 had been transferred to “Vessels, port terminals and other fixed assets, net” in the consolidated balance sheets of which capitalized interest amounted to $9,971. As of December 31, 2016, Navios Logistics had paid $120,735, for the expansion of its dry port in Uruguay. Capitalized interest included in deposits for vessels, port terminals and other fixed assets for the expansion of dry port amounted to $6,862 as of December 31, 2016. |
Intangible Assets Other Than Go
Intangible Assets Other Than Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS OTHER THAN GOODWILL [Abstract] | |
INTANGIBLE ASSETS OTHER THAN GOODWILL | NOTE 7: INTANGIBLE ASSETS OTHER THAN GOODWILL Intangible assets as of December 31, 2017 and 2016 consist of the following: December 31, 2017 Acquisition Cost Accumulated Amortization Net Book Value December 31, 2017 Trade name $10,420 $(10,420) — Port terminal operating rights 53,152 (10,889) 42,263 Customer relationships 36,120 (18,375) 17,745 Total intangible assets $99,692 $(39,684) $60,008 December 31, 2016 Acquisition Cost Accumulated Amortization Net Book Value December 31, 2016 Trade name $10,420 $(9,378) $1,042 Port terminal operating rights 53,152 (10,162) 42,990 Customer relationships 36,120 (16,601) 19,519 Total intangible assets $99,692 $(36,141) $63,551 On December 15, 2014, Navios Logistics acquired two companies for a total consideration of $17,000. These companies, as free zone direct users, hold the right to occupy approximately 53 acres of undeveloped riverfront land located in the Nueva Palmira free zone in Uruguay, adjacent to Navios Logistics’ existing port. During the year ended December 31, 2014, Navios Logistics paid $10,200 and during the year ended December 31, 2015, Navios Logistics paid $6,800, representing the balance of the purchase price. Amortization expense for each of the years ended December 31, 2017 2016 and 2015, amounted to $3,543, $3,523 and $3,823, respectively. The aggregate amortization of acquired intangibles will be as follows: Description Within One Year Year Two Year Three Year Four Year Five Thereafter Total Port terminal operating rights 985 985 985 985 985 37,338 42,263 Customer relationships 1,775 1,775 1,775 1,775 1,775 8,870 17,745 Total $2,760 $2,760 $2,760 $2,760 $2,760 $46,208 $60,008 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8: ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable consist of the following: December 31, 2017 December 31, 2016 Trade payable $21,614 $28,767 Rent payable 230 168 Professional fees payable 429 980 Total accounts payable $22,273 $29,915 Accrued expenses consist of the following: December 31, 2017 December 31, 2016 Accrued salaries $6,563 $6,142 Taxes 5,002 4,591 Accrued fees 1,086 446 Accrued bond coupon 4,531 4,531 Accrued interest 1,112 39 Other 56 152 Total accrued expenses $18,350 $15,901 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS [Abstract] | |
BORROWINGS | NOTE 9: BORROWINGS Borrowings consist of the following: December 31, 2017 December 31, 2016 Senior Notes $375,000 $375,000 Term Loan B Facility $100,000 — Notes Payable $31,109 $34,447 BBVA loan $23,250 $25,000 Term Bank loan $13,300 — Loan for Nazira $253 $321 Total borrowings 542,912 434,768 Less: current portion (9,965) (6,351) Less: deferred financing costs, net (10,166) (6,820) Total long-term borrowings $522,781 $421,597 2022 Senior Notes On April 22, 2014, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Co-Issuers”) issued $375,000 in aggregate principal amount of Senior Notes due on May 1, 2022 (the “2022 Senior Notes”), at a fixed rate of 7.25%. The 2022 Senior Notes are unregistered and are fully and unconditionally guaranteed, jointly and severally, by all of Navios Logistics’ direct and indirect subsidiaries except for Horamar do Brasil Navegação Ltda (“Horamar do Brasil”), Naviera Alto Parana S.A. (“Naviera Alto Parana”) and Terra Norte Group S.A. (“Terra Norte”), which are deemed to be immaterial, and Logistics Finance, which is the co-issuer of the 2022 Senior Notes. The subsidiary guarantees are “full and unconditional,” except that the indenture provides for an individual subsidiary’s guarantee to be automatically released in certain customary circumstances, such as in connection with a sale or other disposition of all or substantially all of the assets of the subsidiary, in connection with the sale of a majority of the capital stock of the subsidiary, if the subsidiary is designated as an “unrestricted subsidiary” in accordance with the indenture, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance or satisfaction and discharge of the 2022 Senior Notes. The Co-Issuers have the option to redeem the 2022 Senior Notes in whole or in part, at their option, at any time on or after May 1, 2017, at a fixed price of 105.438%, which price declines ratably until it reaches par in 2020. In addition, upon the occurrence of certain change of control events, the holders of the 2022 Senior Notes will have the right to require the Co-Issuers to repurchase some or all of the 2022 Senior Notes at 101% of their face amount, plus accrued and unpaid interest to the repurchase date. As of December 31, 2017 and December 31, 2016, deferred financing costs associated with the 2022 Senior Notes amounted to $5,740 and $6,820, respectively. Interest expense associated with the senior notes amounted to $27,188, $27,188 and 27,188 for the years ended December 31, 2017, 2016 and 2015, respectively. The indenture contains covenants which, among other things, limit the incurrence of additional indebtedness, issuance of certain preferred stock, the payment of dividends in excess of 6% per annum of the net proceeds received by or contributed to Navios Logistics in or from any public offering, redemption or repurchase of capital stock or making restricted payments and investments, creation of certain liens, transfer or sale of assets, entering into transactions with affiliates, merging or consolidating or selling all or substantially all of Navios Logistics’ properties and assets and creation or designation of restricted subsidiaries. The 2022 Senior Notes include customary events of default, including failure to pay principal and interest on the 2022 Senior Notes, a failure to comply with covenants, a failure by Navios Logistics or any significant subsidiary or any group of our restricted subsidiaries that, taken together, would constitute a significant subsidiary to pay material judgments or indebtedness and bankruptcy and insolvency events with respect to us or any significant subsidiary or any group of our restricted subsidiaries that, taken together, would constitute a significant subsidiary. As of December 31, 2017, all subsidiaries, including Logistics Finance, Horamar do Brasil, Naviera Alto Parana and Terra Norte are 100% owned. Logistics Finance, Horamar do Brasil, Naviera Alto Parana and Terra Norte do not have any independent assets or operations. In addition, there are no significant restrictions on (i) the ability of the parent company, any issuer (or co-issuer) or any guarantor subsidiaries of the 2022 Senior Notes to obtain funds by dividend or loan from any of their subsidiaries or (ii) the ability of any subsidiaries to transfer funds to the issuer (or co-issuer) or any guarantor subsidiaries. Term Loan B Facility On November 3, 2017, Navios Logistics and Navios Logistics Finance (US) Inc., as co-borrowers, completed the issuance of a new $100,000 Term Loan B Facility (the “Term Loan B Facility”). The Term Loan B Facility bears an interest rate of LIBOR plus 475 basis points and has a four year term with 1.0% amortization per annum. The Term Loan B Facility is fully and unconditionally guaranteed jointly and severally, by all of Navios Logistics’ direct and indirect subsidiaries except for Horamar do Brasil Navegação Ltda (“Horamar do Brasil”), Naviera Alto Parana S.A. (“Naviera Alto Parana”) and Terra Norte Group S.A. (“Terra Norte”), which are deemed to be immaterial, and Logistics Finance, which is the co-issuer of the Term Loan B Facility. The subsidiary guarantees are “full and unconditional,” except that the credit agreement provides for an individual subsidiary’s guarantee to be automatically released in certain circumstances. The Term Loan B Facility is secured by first priority mortgages on five tanker vessels servicing our cabotage business, as well as by assignments of the revenues arising from certain time charter contracts and an iron ore port contract. The net proceeds of the Term Loan B Facility were used: (i) to finance a $70,000 dividend of which $44,677 was paid to Navios Holdings, (ii) for general corporate purposes and (iii) to pay fees and expenses relating to the Term Loan B Facility. The Term Loan B Facility contains restrictive covenants including restrictions on indebtedness, liens, acquisitions and investments, restricted payments and dispositions. The Term Loan B Facility also provides for customary events of default, including change of control. As of December 31, 2017, a balance of $100,000 was outstanding under the Term Loan B Facility. As of December 31, 2017, unamortized deferred financing costs associated with the Term Loan B Facility amounted to $4,331. Interest expense associated with the Term Loan B Facility amounted to $1,006 for the year ended December 31, 2017. Notes Payable In connection with the purchase of mechanical equipment for the expansion of its dry port terminal, Corporacion Navios S.A. (“CNSA”) entered into an unsecured export financing line of credit for a total amount of $41,964, including all related fixed financing costs of $5,949, available in multiple drawings upon the completion of certain milestones (“Drawdown Events”). CNSA incurs the obligation for the respective amount drawn by signing promissory notes (“Notes Payable”). Each drawdown is repayable in 16 consecutive semi-annual installments, starting six months after the completion of each Drawdown Event. Together with each Note Payable, CNSA shall pay interest equal to six-month LIBOR. The unsecured export financing line is fully and unconditionally guaranteed by Navios Logistics. As of December 31, 2017, the Company had drawn the total available amount and the outstanding balance of Notes Payable was $31,109. Interest expense associated with the Notes Payable amounted to $1,013 and $1,065 for the year ended December 31, 2017 and December 31, 2016, respectively. Other Indebtedness On December 15, 2016, Navios Logistics entered into a facility with Banco Bilbao Vizcaya Argentaria Uruguay S.A. (“BBVA”) for an amount of $25,000, for general corporate purposes. The loan bears interest at a rate of LIBOR (180 days) plus 325 basis points. The loan is repayable in twenty quarterly installments, starting on June 19, 2017, and secured by assignments of certain receivables. As of December 31, 2017, the outstanding amount of the loan was $23,250. On May 18, 2017, Navios Logistics entered into a $14,000 term loan facility in order to finance the acquisition of the two product tankers. The term loan bears interest at a rate of LIBOR (90 days) plus 315 basis points and is repayable in twenty quarterly installments with a final balloon payment of $7,000 on the last repayment date. As of December 31, 2017, the outstanding amount of the loan was $13,300 and deferred financing costs associated with the term loan amounted to $95. In connection with the acquisition of Hidronave S.A. on October 29, 2009, Navios Logistics assumed a $817 loan facility that was entered into by Hidronave S.A. in 2001, in order to finance the construction of the pushboat Nazira. As of December 31, 2017, the outstanding loan balance was $253 ($321 as of December 31, 2016). The loan facility bears interest at a fixed rate of 600 basis points. The loan is repayable in monthly installments of $6 each and the final repayment must occur prior to August 10, 2021. In connection with the loan and other long term liabilities, the Company is subject to certain covenants, commitments, limitations and restrictions. The Company was in compliance with all the covenants as of December 31, 2017. The annual weighted average interest rates of the Company’s total borrowings were 6.13%, 6.08% and 7.21% for the year ended December 31, 2017, 2016 and 2015, respectively. The maturity table below reflects future payments of the long-term debt outstanding as of December 31, 2017, for the next five years and thereafter. Year Amount in thousands of U.S. dollars 2018 $11,130 2019 11,795 2020 12,988 2021 110,257 2022 389,205 2023 and thereafter 7,537 Total $542,912 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 10: FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments. Restricted cash: The carrying amounts reported in the consolidated balance sheets for interest bearing restricted deposits approximate their fair value because of the short maturity of these investments. Borrowings: The book value has been adjusted to reflect the net presentation of deferred financing costs. The outstanding balance of the floating rate loans continues to approximate their fair value, excluding the effect of any deferred finance costs. The 2022 Senior Notes and the loan for the acquisition of Hidronave S.A. are fixed rate borrowings and their fair value was determined based on quoted market prices. Note receivable : The carrying amount of the Note receivable approximates its fair value. Notes Payable: The Notes Payable are floating rate obligations and their carrying amounts approximate their fair value as indicated in the table below. Capital leases and long term debt: The capital leases and long-term debt are fixed rate obligations and their carrying amounts approximate their fair value as indicated in the table below. The estimated fair values of the Company’s financial instruments are as follows: December 31, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value Cash and cash equivalents $ 79,888 $ 79,888 $ 65,182 $ 65,182 Restricted cash $ — $ — $ 2,900 $ 2,900 Note receivable, including current portion $ 818 $ 818 $ — $ — Senior notes $ (369,260 ) $ (361,549 ) $ (368,180 ) $ (355,781 ) Term Loan B Facility $ (95,669 ) $ (101,563 ) $ — $ — Notes payable, including current portion $ (31,109 ) $ (31,109 ) $ (34,447 ) $ (34,447 ) Capital lease obligations $ — $ — $ (17,617 ) $ (17,617 ) Long-term debt, including current portion $ (36,708 ) $ (36,708 ) $ (25,321 ) $ (25,321 ) Fair Value Measurements The estimated fair value of our financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. Level III: Inputs that are unobservable. Fair Value Measurements at December 31, 2017 Total Level I Level II Level III Cash and cash equivalents $79,888 $79,888 $— $— Note receivable, including current portion $818 $818 $— $— Senior Notes $(361,549) $(361,549) $— $— Term Loan B Facility $(101,563) $— $(101,563) $— Notes payable, including current portion (1) $(31,109) $— $(31,109) $— Long-term debt (1) $(36,708) $— $(36,708) $— Fair Value Measurements at December 31, 2016 Total Level I Level II Level III Cash and cash equivalents $65,182 $65,182 $— $— Restricted cash $2,900 $2,900 $— $— Senior Notes $(355,781) $(355,781) $— $— Notes payable, including current portion (1) $(34,447) $— $(34,447) $— Capital lease obligations (1) $(17,617) $— $(17,617) $— Long-term debt (1) $(25,321) $— $(25,321) $— (1)The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rates and remaining maturities as well as taking into account our creditworthiness. |
Time Charter, Voyage and Port T
Time Charter, Voyage and Port Terminal Expenses | 12 Months Ended |
Dec. 31, 2017 | |
TIME CHARTER, VOYAGE AND PORT TERMINAL EXPENSES [Abstract] | |
TIME CHARTER, VOYAGE AND PORT TERMINAL EXPENSES | NOTE 11: TIME CHARTER, VOYAGE AND PORT TERMINAL EXPENSES Time charter, voyage and port terminal expenses for the years ended December 31, 2017, 2016 and 2015 were as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Fuel $10,471 $11,839 $13,901 Time charter 1,564 1,521 1,307 Ports payroll and related costs 7,971 6,304 5,657 Docking expenses 3,272 3,287 3,299 Maritime and regulatory fees 578 610 909 Towing expenses 2,597 2,297 1,612 Other expenses 7,164 6,281 6,879 Total $33,617 $32,139 $33,564 |
Direct Vessel Expenses
Direct Vessel Expenses | 12 Months Ended |
Dec. 31, 2017 | |
DIRECT VESSEL EXPENSES [Abstract] | |
DIRECT VESSEL EXPENSES | NOTE 12: DIRECT VESSEL EXPENSES Direct vessel expenses for the year ended December 31, 2017, 2016 and 2015 were as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Payroll and related costs $41,231 $41,443 $52,026 Insurances 3,534 4,149 4,088 Repairs and maintenance 7,952 12,351 8,893 Lubricants 736 1,046 899 Victualing 1,739 1,973 1,995 Travel expenses 3,343 3,608 3,484 Other expenses 4,019 4,560 3,361 Total $62,554 $69,130 $74,746 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2017 | |
GENERAL AND ADMINISTRATIVE EXPENSES [Abstract] | |
GENERAL AND ADMINISTRATIVE EXPENSES | NOTE 13: GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses at December 31, 2017, 2016 and 2015 were as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Payroll and related costs $7,030 $5,899 $6,260 Professional fees 3,998 3,946 3,734 Other expenses 5,637 4,449 4,014 Total $16,665 $14,294 $14,008 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14: COMMITMENTS AND CONTINGENCIES As of December 31, 2017, the Company had operating lease obligations relating to chartered-in barges through March 2020. As of December 31, 2017, the Company had obligations related to the construction of three new pushboats, the construction of a river and estuary tanker (including supervision costs) and the construction of covers for barges of $580, $9,024 and $486, respectively, until the second quarter of 2018. Navios Logistics has issued a guarantee and indemnity letter that guarantees the performance by Petrolera San Antonio S.A. (a consolidated subsidiary) of all its obligations to Vitol S.A. up to $12,000. This guarantee expires on March 1, 2019. The Company is subject to legal proceedings, claims and contingencies arising in the ordinary course of business. When such amounts can be estimated and the contingency is probable, management accrues the corresponding liability. While the ultimate outcome of lawsuits or other proceedings against the Company cannot be predicted with certainty, management does not believe the costs, individually or in aggregate of such actions will have a material effect on the Company’s consolidated financial position, results of operations or cash flows. The Company had a dispute with Vale regarding the termination date of CoA contract, which was under arbitration proceedings in New York. Related to this arbitration, the Company issued a letter of credit amounting to $2,900 and the total amount was collateralized by a cash deposit, which was presented as restricted cash in the accompanying balance sheets as of December 2016. On February 10, 2017, the arbitration tribunal ruled in favor of Navios Logistics. Vale has been ordered to pay Navios Logistics $21,500, compensating for all unpaid invoices, late payment of invoices, and legal fees incurred. An amount of $1,157 was recorded in the consolidated statements of operations under “Other income, net” as part of this compensation. The full amount was received in March 2017, and the collateralized cash amount of $2,900, was released. On March 30, 2016, the Company received written notice from Vale stating that Vale would not be performing the service contract entered into between CNSA and Vale on September 27, 2013, relating to the iron ore port facility in Nueva Palmira, Uruguay. The Company initiated arbitration proceedings in London on June 10, 2016 pursuant to the dispute resolution provisions of the service contract. On December 20, 2016, a London arbitration tribunal ruled that the Vale port contract remains in full force and effect. If Vale were to further repudiate or renounce the contract, we may elect to terminate the contract and then would be entitled to damages calculated by reference to guaranteed volumes and agreed tariffs for the remaining period of the contract. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 15: INCOME TAXES As indicated in Note 2(v), the Company is a Marshall Islands corporation. However, the Company is subject to tax in Argentina, Brazil and Paraguay, jurisdictions where certain of its subsidiaries operate. The Company’s operations in Panama and Uruguay are not taxed. The corporate income tax rate in Argentina, Brazil and Paraguay is 35%, 34% and 10%, respectively for the year ended December 31, 2017. As a result of the tax reforms voted by the Argentinean Parliament in December 2017, the corporate income tax rate will decrease to 30% for the year 2018, and to 25% from 2019 onwards. The components of income before income taxes in consolidated statements of operations for the years ended December 31, 2017, 2016 and 2015 are as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Argentina $(6,496) $(789) $(14,031) Paraguay (1,306) (7,239) 5,942 Uruguay 36,931 44,432 49,465 Panama (26,701) (19,391) (16,283) Marshall Islands (2,894) (6,404) (6,716) Others 103 530 310 Total (loss)/income before income taxes and noncontrolling interest $(363) $11,139 $18,687 Income tax benefit is comprised of: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Current $(194) $(211) $ 1,947 Deferred 3,966 (333) 2,028 Total Argentina $3,772 $(544) $3,975 Current $(99) $(162) $(214) Deferred (205) (276) (210) Total Paraguay $(304) $(438) $(424) Total income tax benefit/(loss) $3,468 $(982) $3,551 A reconciliation between the income tax expense resulting from applying the Marshall Islands, Panamanian or Uruguayan statutory income tax rate and the reported income tax expense has not been presented herein, as it would not provide any additional useful information to the users of these consolidated financial statements, as the Company’s net income is subject to neither Marshall Islands, Panama nor Uruguay tax. A reconciliation between the income tax expense resulting from applying the Brazilian or Paraguayan statutory income tax rate and the reported income tax expense has not been presented herein since these amounts are not material to the Company’s consolidated financial statements. Reconciliation of income tax benefit to taxes calculated based on Argentinean statutory tax rate is as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Loss before income taxes and noncontrolling interest $(6,496) $(789) $(14,031) Statutory tax rate 35% 35% 35% Income before taxes at the statutory tax rate 2,274 276 4,911 Permanent differences 1,498 (820) (936) Income tax benefit/(loss) of the year $3,772 $(544) $3,975 The amount of permanent differences in 2017 includes the net gain impact of $2,837 related to the decrease in future Argentinean income tax rates from 2018 onwards, partially offset by $722 related to non-deductible expenses. The components of deferred income taxes included on the balance sheets were as follows: December 31, 2017 December 31, 2016 Deferred income tax assets: Future deductible differences $1,082 $316 Tax loss carry-forward 260 1,199 Total deferred income tax assets 1,342 1,515 Deferred income tax liabilities: Intangible assets (4,548) (7,222) Property, plant and equipment, net (3,347) (4,810) Other (1,212) (1,009) Total deferred income tax liabilities (9,107) (13,041) Net deferred income tax liabilities $(7,765) $(11,526) The decrease in future Argentinean income tax rates from 2018 onwards has been reflected in the deferred tax assets and liabilities. The impact was a loss of $ 168 in deferred assets and an income of $ 3,005 in deferred tax liabilities. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
LEASES [Abstract] | |
Leases | NOTE 16: LEASES Chartered-out: As of December 31, 2017, the future minimum revenue (charter-out rates are presented net of commissions, where applicable, and assume no off-hire days) expected to be earned on non-cancelable time charters, COA’s with minimum guaranteed volumes and contracts with minimum guaranteed throughput in the Company’s ports were as follows: Amount 2018 $138,384 2019 104,721 2020 77,209 2021 62,290 2022 55,450 2023 and thereafter 699,388 Total minimum revenue, net of commissions $1,137,442 Revenues from time charters are not generally received when a vessel is off-hire, including time required for scheduled maintenance of the vessel. Navios Logistics’ future minimum revenue, as presented in the table above, expected to be earned on non-cancelable contracts under time charter after the successful completion of the construction of a river and estuary tanker, is $41,830 for a period of five years, based on current contract rates. Chartered-in: As of December 31, 2017, the Company’s future minimum commitments, net of any commissions, under chartered-in vessels were as follows: Amount 2018 $182 2019 182 2020 31 Total minimum commitments, net of commissions $395 For the year ended December 31, 2017, charter hire expense for chartered-in pushboats and barges amounted to $1,564 ($1,521 in 2016 and $1,307 in 2015). Office space: The future minimum commitments under lease obligations for office space were as follows: Amount 2018 $761 2019 601 2020 509 2021 184 Total $2,055 Rent expense for office space amounted to $677 for the year ended December 31, 2017 ($720 in 2016 and $716 in 2015). |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
TRANSACTIONS WITH RELATED PARTIES [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | NOTE 17: TRANSACTIONS WITH RELATED PARTIES At December 31, 2017 and 2016, the amounts due to affiliate companies were as follows: December 31, 2017 December 31, 2016 Navios Holdings $(265) $(54) Amounts due to affiliate companies do not accrue interest and do not have a specific due date for their settlement. General & administrative expenses: On April 12, 2011, Navios Logistics entered into an administrative services agreement for a term of five years, with Navios Holdings, pursuant to which Navios Holdings provides certain administrative management services to Navios Logistics. Navios Holdings is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. In April 2016, we extended the duration of the Administrative Services Agreement until December 31, 2021. Total general and administrative fees charged for the year ended December 31, 2017 amounted to $1,000 ($1,000 in 2016 and $760 in 2015). Lodging and travel services: Navios Logistics obtains lodging and travel services from Empresa Hotelera Argentina S.A./(NH Lancaster) and Pit Jet S.A., both owned by members of the Lopez family, including Claudio Pablo Lopez, Navios Logistics’ Chief Executive Officer and Vice Chairman and Carlos Augusto Lopez, Navios Logistics’ Chief Commercial Officer—Shipping Division, each of whom has no controlling interest in those companies. Total charges were $51 for the year ended December 31, 2017 ($29 in 2016 and $34 in 2015) and amounts payable amounted to $16 as of December 31, 2017 and $6 as of December 31, 2016. Shareholders’ Agreement Pursuant to a shareholders’ agreement (the “Shareholders’ Agreement”) entered into in January 2008 in connection with the original combination of the Uruguayan port business and the upriver barge business, Grandall Investments S.A.(“Grandall”) (an entity owned and controlled by Lopez family members, including Claudio Pablo Lopez, our Chief Executive Officer and Vice Chairman) has certain rights as our shareholders, including certain rights of first offer, rights of first refusal, tag along rights, exit options and veto rights. Pursuant to an amendment dated June 17, 2010, when we became subject to the reporting requirements of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), the shares of our common stock held by Navios Holdings were to convert into shares of Class B Common Stock, with each share of Class B Common Stock entitling its holder to ten votes per share. Navios Holdings has currently waived such conversion provision. If and when the conversion occurs, it will permit Navios Holdings to control our business even if it does not hold a majority economic interest in our company. Pursuant to an Assignment and Succession agreement dated December 17, 2012, Peers Business Inc., a Panamanian corporation assumed all rights and obligations of Grandall under the Shareholders’ Agreement. Employment Agreements The Company has executed employment agreements with several of its key employees who are noncontrolling shareholders of the Company. These agreements stipulate, among other things, severance and benefit arrangements in the event of termination. In addition, the agreements include confidentiality provisions and covenants not to compete. The employment agreements initially expired in December 31, 2009, but are being renewed automatically for successive one-year periods until either party gives 90 days written notice of its intention to terminate the agreement. Generally, the agreements call for a base salary ranging from $280 to $340 per year, annual bonuses and other incentives, provided certain performance targets are achieved. Under the agreements, the Company accrued compensation totaling $900 for the year ended December 31, 2017 ($900 in 2016; $900 in 2015). |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | NOTE 18: SHARE CAPITAL Common shares and shareholders On August 4, 2010, the Company amended its articles of incorporation increasing its authorized share capital to 50,000,000 shares of common stock with a par value of $0.01 per share. As of December 31, 2017 and 2016, the Company has issued 20,000 shares of common stock, with a par value of $1.00. Holders of each share of common stock have one vote for each share held of record on all matters submitted to a vote of shareholders. Dividends on shares of common stock may be declared and paid from funds available to the Company. |
Restrictions on Distribution of
Restrictions on Distribution of Profits | 12 Months Ended |
Dec. 31, 2017 | |
RESTRICTIONS IN DISTRIBUTION OF PROFITS [Abstract] | |
RESTRICTIONS ON DISTRIBUTION OF PROFITS | NOTE 19: RESTRICTIONS ON DISTRIBUTION OF PROFITS Under the laws of the countries in which the Company conducts its operations, the Company is subject to certain restrictions on the distribution of profits. Under the laws of Argentina, Brazil, Paraguay and Uruguay, a minimum of 5% of net income for the year calculated in accordance with local generally accepted accounting principles, plus/less previous years adjustments and, if any, considering the absorption of accumulated losses, must be appropriated by resolution of the shareholders to a legal reserve until such reserve reaches 20% of the outstanding capital of those subsidiaries. The payment of dividends is in the discretion of Navios Logistics’ board of directors. Any determination as to dividend policy will be made by the Company’s board of directors and will depend on a number of factors, including the provisions of Marshall Islands law, our future earnings, capital requirements, financial condition and future prospects and such other factors as the Company’s board of directors may deem relevant. The Company’s ability to pay dividends is also restricted by the indenture governing the Senior Notes. See also Note 9 for restrictions on distribution of dividends under the indenture governing the Senior Notes. |
Earnings_(Loss) per Common Shar
Earnings/(Loss) per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS/(LOSS) PER COMMON SHARE [Abstract] | |
EARNINGS/(LOSS) PER COMMON SHARE | NOTE 20: EARNINGS/(LOSS) PER COMMON SHARE Basic and diluted net earnings per share are computed using the weighted-average number of common shares outstanding. The computations of basic and diluted earnings per share for each of the years ended December 31, 2017, 2016 and 2015, are as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Net income attributable to Navios Logistics’ stockholders $3,105 $10,157 $22,238 Weighted average number of shares, basic and diluted 20,000 20,000 20,000 Net earnings per share from continuing operations: Basic and diluted $0.16 $0.51 $1.11 At December 31, 2017, 2016 and 2015, the Company had no dilutive or potentially dilutive securities, accordingly there is no difference between basic and diluted net earnings per share. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 21: SEGMENT INFORMATION Current accounting guidance establishes standards for reporting information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial reports issued to shareholders. Operating segments are components of a company of which separate financial information is available that is regularly evaluated by the chief operating decision makers in deciding how to allocate resources and assess performance. Chief operating decision makers use net income to evaluate operating performance of each segment. The guidance also establishes standards for related disclosures about a company’s products and services, geographical areas and major customers. The Company has determined that its reportable segments are those that are based on the Company’s method of internal reporting. Navios Logistics has three reportable segments: Port Terminal Business, Barge Business and Cabotage Business. The Port Terminal Business includes the dry port terminal operations and the liquid port terminal operations. A general description of each segment follows: The Port Terminal Business segment This segment includes the operating results of Navios Logistics’ dry port terminal and liquid port terminal operations. (i) Dry port terminal operations Navios Logistics owns and operates the largest independent bulk transfer and storage port terminal facilities in Uruguay based on throughputs. Its dry port terminal operations is comprised of two port terminals, one for agricultural and forest-related exports and one for mineral-related exports which are located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers. (ii) Liquid port terminal operations Navios Logistics owns and operates an up-river port terminal with tank storage for refined petroleum products, oil and gas in San Antonio, Paraguay, approximately 17 miles by river from the capital of Asuncion. Its port terminal is one of the largest independent storage facilities for crude and petroleum products in Paraguay based on storage capacity. The Barge Business segment Navios Logistics services the Argentine, Bolivian, Brazilian, Paraguayan and Uruguayan river transportation markets through its fleet. Navios Logistics operates different types of pushboats and wet and dry barges for delivering a wide range of dry and liquid products between ports in the Parana, Paraguay and Uruguay River systems in South America (the Hidrovia or the “waterway”). Navios Logistics contracts its vessels either on a time charter basis or on a CoA basis. The Cabotage Business segment Navios Logistics owns and operates oceangoing vessels to support the transportation needs of its customers in the South American coastal trade business. Its fleet consists of six oceangoing product tanker vessels, two self-propelled barges until they were sold in February 2017 and a bunker vessel. Navios Logistics contracts its vessels either on a time charter basis or on a CoA basis. Unallocated interest This reconciling item represents the interest expense resulting from the 2022 Senior Notes, which has not yet been fully allocated to the segments due to the fact that the amount received had been maintained at the corporate level and not utilized by an operating segment as of December 31, 2016. Beginning January 1, 2017, interest expense of the 2022 Senior Notes had been fully allocated to the segments. Inter-segment transactions, if any, are accounted for at current market prices. The following table describes the results of operations of the three segments, the Port Terminal Business segment, the Barge Business segment and the Cabotage Business segment for the years ended December 31, 2017, 2016 and 2015: Port Terminal Business Segment for the Year Ended December 31, 2017 Cabotage Business Segment for the Year Ended December 31, 2017 Barge Business Segment for the Year Ended December 31, 2017 Total Time charter, voyage and port terminal revenues $53,526 $48,130 $78,388 $180,044 Sales of products 32,572 — — 32,572 Time charter, voyage and port terminal expenses (14,432) (1,866) (17,319) (33,617) Direct vessel expenses — (32,017) (30,537) (62,554) Cost of products sold (30,717) — — (30,717) Depreciation of vessels, port terminals and other fixed assets (5,238) (2,940) (15,144) (23,322) Amortization of intangible assets (729) — (2,814) (3,543) Amortization of deferred drydock and special survey costs — (5,148) (2,780) (7,928) General and administrative expenses (3,778) (1,718) (11,169) (16,665) Provision of losses on accounts receivable — — (569) (569) Taxes other than income taxes — (4,463) (4,555) (9,018) Interest expense and finance cost, net (7,004) (4,784) (16,559) (28,347) Interest income 14 — 224 238 Gain on sale of assets — — 1,064 1,064 Foreign exchange differences. net (406) 144 (464) (726) Other income, net 16 — 2,709 2,725 Income/(loss) before income taxes 23,824 (4,662) (19,525) (363) Income tax benefit/(expense) — (1,199) 4,667 3,468 Net income/(loss) $23,824 $(5,861) $(14,858) $3,105 Port Terminal Business Segment for the Year Ended December 31, 2016 Cabotage Business Segment for the Year Ended December 31, 2016 Barge Business Segment for the Year Ended December 31, 2016 Unallocated interest Total Time charter, voyage and port terminal revenues $36,268 $52,637 $101,313 $— $190,218 Sales of products 30,118 — — — 30,118 Time charter, voyage and port terminal expenses (12,340) (2,098) (17,701) — (32,139) Direct vessel expenses — (33,596) (35,534) — (69,130) Cost of products sold (27,450) — — — (27,450) Depreciation of vessels, port terminals and other fixed assets (3,533) (2,667) (16,905) — (23,105) Amortization of intangible assets (706) — (2,817) — (3,523) Amortization of deferred drydock and special survey costs — (3,765) (3,105) — (6,870) General and administrative expenses (2,646) (1,193) (10,455) — (14,294) Provision of losses on accounts receivable — — (1,304) — (1,304) Taxes other than income taxes — (4,617) (5,123) — (9,740) Interest expense and finance cost, net (1,381) (4,894) (16,973) (992) (24,240) Interest income 54 — 761 — 815 Foreign exchange differences. net (78) 1,184 616 — 1,722 Other income, net (98) — 159 — 61 Income/(loss) before income taxes 18,208 991 (7,068) (992) 11,139 Income tax (expense)/benefit — (1,457) 475 — (982) Net income/(loss) $18,208 $(466) $(6,593) $(992) $10,157 Port Terminal Business Segment for the Year Ended December 31, 2015 Cabotage Business Segment for the Year Ended December 31, 2015 Barge Business Segment for the Year Ended December 31, 2015 Unallocated interest Total Time charter, voyage and port terminal revenues $42,382 $63,345 $105,974 $— $211,701 Sales of products 39,347 — — — 39,347 Time charter, voyage and port terminal expenses (11,784) (2,659) (19,121) — (33,564) Direct vessel expenses — (41,831) (32,915) — (74,746) Cost of products sold (36,811) — — — (36,811) Depreciation of vessels, port terminals and other fixed assets (3,431) (4,645) (16,070) — (24,146) Amortization of intangible assets (1,006) — (2,817) — (3,823) Amortization of deferred drydock and special survey costs — (4,810) (2,470) — (7,280) General and administrative expenses (2,661) (1,128) (10,219) — (14,008) Recovery of losses on accounts receivable — — 52 — 52 Taxes other than income taxes — (5,600) (6,376) — (11,976) Interest expense and finance cost, net (1,088) (5,273) (16,982) (3,739) (27,082) Interest income 250 — 319 — 569 Foreign exchange differences. net (638) 679 178 — 219 Other income, net 72 (450) 613 — 235 Income/(loss) before income taxes 24,632 (2,372) 166 (3,739) 18,687 Income tax benefit/(expense) — (785) 4,336 — 3,551 Net income/(loss) $24,632 $(3,157) $4,502 $(3,739) $22,238 For the Barge Business segment and for the Cabotage Business segment, the Company’s vessels operate on a regional basis and are not restricted to specific locations. Accordingly, it is not practicable to allocate the assets of these operations to specific locations. The total net book value of long-lived assets for vessels amounted to $344,874 and $341,496 at December 31, 2017 and 2016, respectively. All of the assets related to the Port Terminal Business segment are located in Uruguay and in Paraguay. The total net book value of long-lived assets for the Port Terminal Business segment amounted to $219,013 and $202,568 as of December 31, 2017 and 2016, respectively. In addition, the net book value of intangible assets other than goodwill allocated to the Barge Business segment and to the Cabotage Business segment, collectively, amounted to $17,745 and $20,561 as of December 31, 2017 and 2016, respectively, while the net book value of intangible assets allocated to the Port Terminal segment amounted to $42,263 and $42,990 as of December 31, 2017 and 2016, respectively. Goodwill totaling to $22,142, $40,868 and $41,086 has been allocated to the three segments, the Port Terminal Business, the Barge Business and the Cabotage Business, respectively. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation: | (a) Basis of Presentation: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation: | (b) Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Navios Logistics and its subsidiaries, both majority and wholly-owned. All significant intercompany balances and transactions between these entities have been eliminated in the consolidated statements. The Company also consolidates entities that are determined to be variable interest entities as defined in the accounting guidance, if it determines that it is the primary beneficiary. The primary beneficiary of a variable interest entity (“VIE”) is the variable interest holder (e.g., a contractual counterparty or capital provider) deemed to have the controlling financial interest in the VIE and therefore must consolidate it. The primary beneficiary is not necessarily the party with the majority or even any of the voting interests in an entity. Rather, the primary beneficiary is the reporting entity that has both of the following characteristics: a) the power to direct the activities that most significantly impact the VIE’s economic performance; and b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Based on internal forecasts and projections, management believes that the company has adequate financial resources to continue in operation and meet its financial commitments, including but not limited to capital expenditures and debt service obligations, for a period of at least twelve months from the date of issuance of these consolidated financial statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements. Subsidiaries Included in the Consolidation: Subsidiaries are those entities in which the Company has an interest of more than one half of the voting rights or otherwise has power to govern the financial and operating policies. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition. The excess of the cost of acquisition over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill. Company Name Country of Incorporation Nature Percentage of Ownership Statement of operations 2017 2016 2015 Corporacion Navios S.A. Uruguay Port-Facility Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Energias Renovables del Sur S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Nauticler S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania Naviera Horamar S.A. Argentina Vessel-Operating Management Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania de Transporte Fluvial International S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ponte Rio S.A. Uruguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Tankers Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Navigation Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Shipping Ltd. Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS South Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrovia Internacional S.A. Uruguay Land-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Mercopar S.A. Paraguay Operating/Barge-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrolera San Antonio S.A. Paraguay Port Facility-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Stability Oceanways S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Hidronave South American Logistics S.A. Brazil Pushboat-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Horamar do Brasil Navegação Ltda Brazil Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navarra Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Pelayo Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navios Logistics Finance (US) Inc. Delaware Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Varena Maritime Services S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Honey Bunkering S.A. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Naviera Alto Parana S.A. Paraguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Edolmix S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Cartisur S.A. Uruguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 NP Trading S.A. British Virgin Islands Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ruswe International S.A. Uruguay Barge-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Delta Naval Trade S.A. Panama Non-Operating Company 100% 1/1-12/31 7/21-12/31 — Terra Norte Group S.A. Paraguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 9/30-12/31 |
Use of Estimates: | (c) Use of Estimates: The preparation of consolidated financial statements in conformity with the accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for tangible and intangible assets, expected future cash flows from long-lived assets to support impairment tests, impairment test for goodwill, provisions necessary for losses on accounts receivable and demurrages, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions. |
Cash and Cash Equivalents: | (d) Cash and Cash Equivalents: Cash and cash equivalents consist of cash on hand, deposits held with banks, and other short-term liquid investments with original maturities of three months or less. |
Restricted cash: | (e) Restricted Cash: As of December 31, 2016, restricted cash included $2,900 which related to amounts held in a retention account as part of the Vale International S.A. (“Vale”) arbitration in New York. The restricted cash was released during the first quarter of 2017. See also Note 14. |
Accounts Receivable, Net: | (f) Accounts Receivable, Net: The amount shown as accounts receivable, net, at each balance sheet date, includes receivables from charterers for hire, freight and demurrage billings, net of a provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. |
Insurance Claims: | (g) Insurance Claims: Insurance claims at each balance sheet date consist of claims submitted and/or claims in the process of compilation or submission (claims pending). They are recorded on the accrual basis and represent the claimable expenses, net of applicable deductibles, incurred through December 31 of each reported period, which are expected to be recovered from insurance companies. Any remaining costs to complete the claims are included in accrued liabilities. Claims receivable mainly represent claims against vessels’ insurance underwriters in respect of damages arising from accidents or other insured risks. While it is anticipated that claims receivable will be recovered within one year, such claims may not all be recovered within one year due to the attendant process of settlement. Nonetheless, amounts are classified as current as they represent amounts currently due to the Company. All amounts are shown net of applicable deductibles. |
Inventories: | (h) Inventories: Inventories, which primarily consist of petroleum products and other inventories such as lubricants and stock provisions on board of the owned vessels and pushboats at period end, are valued at the lower of cost or market as determined on the first-in, first-out basis. |
Barges, Pushboats and Other Vessels: | (i) Barges, Pushboats and Other Vessels: Barges, pushboats and other vessels acquired as part of a business combination are recorded at fair value on the date of acquisition and if acquired as an asset acquisition are recorded at cost (including transaction costs). All other barges, pushboats and other vessels acquired are stated at cost, which consists of the contract price, capitalized interest and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for major improvements and upgrading are capitalized, provided they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the assets. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of the sale or retirement and any gain or loss is included in the accompanying consolidated statements of operations. Expenditures for routine maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over the useful life of the assets, after considering the estimated residual value. Management estimates the useful life of the Company’s vessels to be between 15 and 45 years from the asset’s original construction or acquisition. However, when regulations place limitations over the ability of a vessel to trade on a worldwide basis, its useful life is re-estimated to end at the date such regulations become effective. An increase in the useful life of a vessel or in its residual value would have the effect of decreasing the annual depreciation charge and extending it into later periods. A decrease in the useful life of a vessel or in its residual value would have the effect of increasing the annual depreciation charge. We also capitalize interest on long-term construction projects. |
Port Terminals and Other Fixed Assets, net: | (j) Port Terminals and Other Fixed Assets, net: Port terminals and other fixed assets acquired as part of a business combination are recorded at fair value on the date of acquisition. All other port terminals and other fixed assets are stated at cost and are depreciated utilizing the straight-line method at rates equivalent to their average estimated economic useful lives. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of sale or retirement and any gain or loss is included in the accompanying consolidated statements of operations. Useful lives of the assets are: Dry port terminal 5 to 49 years Oil storage, plant and port facilities for liquid cargoes 5 to 20 years Other fixed assets 5 to 10 years |
Deposits for Vessels, Port terminals and Other Fixed Assets | (k) Deposits for Vessels, Port terminals and Other Fixed Assets: Deposits for vessels, port terminals and other fixed assets represent amounts paid by the Company in accordance with the terms of the purchase agreements for the construction of vessels, port terminals and other fixed assets. Deposits for vessels, port terminals and other fixed assets also include pre-delivery expenses. Pre-delivery expenses represent any direct costs to bring the asset to the condition necessary (including possible relocation) for it to be capable of operating in the manner intended by management. Interest costs incurred during the construction (until the asset is substantially complete and ready for its intended use) are capitalized. Capitalized interest for the years ended December 31, 2017, 2016 and 2015 amounted to $4,764, $5,843 and $2,261, respectively. |
Impairment of Long-Lived Assets: | (l) Impairment of Long-Lived Assets: Vessels, other fixed assets and other long-lived assets held and used by Navios Logistics are reviewed periodically for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be fully recoverable. In accordance with accounting for long-lived assets, management determines projected undiscounted cash flows for each asset group and compares it to its carrying amount. In the event that projected undiscounted cash flows for an asset group is less than its carrying amount, then management reviews fair values and compares them to the asset’s carrying amount. In the event that impairment occurs, an impairment charge is recognized by comparing the asset’s carrying amount to its fair value. For the purposes of assessing impairment, long lived-assets are grouped at the lowest levels for which there are separately identifiable cash flows. For all the periods presented, the management of Navios Logistics after considering various indicators, including but not limited to its long-lived assets’ contracted revenues and cash flows over their remaining useful life and the economic outlook, concluded that no impairment analysis should be performed on the long-lived assets. Although management believes the underlying indicators supporting this conclusion are reasonable, if charter rate trends and the length of the current market downturn occur, management may be required to perform impairment analysis that could expose Navios Logistics to material charges in the future. No impairment loss was recognized for any of the periods presented. |
Deferred Drydock and Special Survey Costs: | (m) Deferred Drydock and Special Survey Costs: The Company’s vessels, pushboats and barges are subject to regularly scheduled drydocking and special surveys that are carried out every five years for oceangoing vessels and up to every eight years for pushboats and barges, to coincide with the renewal of the related certificates issued by the classification societies, unless a further extension is obtained under certain conditions. The costs of drydocking and special survey are deferred and amortized over the above mentioned periods or to the next drydocking or special survey date if such has been determined. Unamortized drydocking or special survey costs of vessels, pushboats and barges sold are charged against income in the year the vessel, pushboat or barge is sold. Costs capitalized as part of the drydocking or special survey consist principally of the actual costs incurred at the yard, spare parts, paints, lubricants and fuel, labour and services incurred solely during the drydocking or special survey period. For each of the years ended December 31, 2017, 2016 and 2015, the amortization expense was $7,928, $6,870 and $7,280, respectively and the payments for drydocking and special survey were $3,687, $7,220 and $9,497, respectively. Accumulated amortization as of December 31, 2017 and 2016 amounted to $34,092 and $26,164, respectively. |
Deferred Financing Costs: | (n) Deferred Financing Costs: Deferred financing costs include fees, commissions and legal expenses associated with obtaining or modifying loan facilities. These costs are amortized over the life of the related debt using the effective interest rate method, and are included in interest expense. Amortization expense for each of the years ended December 31, 2017, 2016 and 2015 was $1,275, $1,002 and $928, respectively. |
Goodwill and Other Intangibles: | (o) Goodwill and Other Intangibles: (i) Goodwill: Goodwill is tested for impairment at the reporting unit level at least annually. The Company evaluates impairment of goodwill using a two-step process. First, the aggregate fair value of the reporting unit is compared to its carrying amount, including goodwill. The Company determines the fair value of the reporting unit based on discounted cash flow analysis and believes that the discounted cash flow analysis is the best indicator of fair value for its individual reporting units. If the fair value of a reporting unit exceeds the carrying amount, no impairment exists. If the carrying amount of the reporting unit exceeds the fair value, then the Company must perform the second step to determine the implied fair value of the reporting unit’s goodwill and compare it with its carrying amount. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all the assets and liabilities of that reporting unit, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price. If the carrying amount of the goodwill exceeds the implied fair value, then goodwill impairment is recognized by writing the goodwill down to its implied fair value. The fair value for goodwill impairment testing was estimated using the expected present value of future cash flows, using judgments and assumptions that management believes were appropriate in the circumstances. The significant factors and assumptions the Company used in its discounted cash flow analysis included: EBITDA, the discount rate used to calculate the present value of future cash flows and future capital expenditures. EBITDA assumptions included revenue assumptions, general and administrative expense growth assumptions, and direct vessel expenses growth assumptions. The future cash flows from operations were determined principally by combining revenues from existing contracts and estimated revenues based on the historical performance of each segment, including utilization rates and actual storage capacity. A weighted average cost of capital (“WACC”) was used to discount future estimated cash flows to their present values. The WACC was based on externally observable data regarding risk free rates, risk premiums and systematic risk and on the Company’s cost of equity and debt and its capital structure. No impairment loss was recognized for any of the periods presented. (ii) Intangibles Other Than Goodwill: Navios Logistics’ intangible assets consist of customer relationships, trade name and port terminal operating rights. Intangible assets resulting from acquisitions accounted for using the purchase method of accounting and are recorded at fair value as estimated based on market information, the “relief from royalty” method or discounted cash flows. The fair value of the trade name was determined based on the “relief from royalty” method which values the trade name based on the estimated amount that a company would have to pay in an arm’s length transaction in order to use that trade name. Other intangibles that are being amortized, such as the port terminal operating rights and customer relationships, would be considered impaired if their fair market value could not be recovered from the future undiscounted cash flows associated with the asset. The fair value of customer relationships was determined based on the “excess earnings” method, which relies upon the future cash flow generating ability of the asset. The asset is amortized under the straight line method. When intangible assets or liabilities associated with the acquisition of a vessel are identified, they are recorded at fair value. Fair value is determined by reference to market data and the discounted amount of expected future cash flows. Where charter rates are higher than market charter rates, an asset is recorded, being the difference between the acquired charter rate and the market charter rate for an equivalent vessel. Where charter rates are less than market charter rates, a liability is recorded, being the difference between the assumed charter rate and the market charter rate for an equivalent vessel. The determination of the fair value of acquired assets and assumed liabilities requires us to make significant assumptions and estimates of many variables including market charter rates, expected future charter rates, the level of utilization of our vessels and our weighted average cost of capital. The use of different assumptions could result in a material change in the fair value of these items, which could have a material impact on our financial position and results of operations. No impairment loss was recognized for any of the periods presented. Amortizable intangible assets are amortized under the straight-line method according to the following weighted average amortization periods: Intangible Assets/Liabilities Years Trade name 10 Port terminal operating rights 47 Customer relationships 20 |
Foreign Currency Translation: | (p) Foreign Currency Translation: The Company’s and its subsidiaries’ functional currency and reporting currency is the U.S. dollar. Therefore, the financial statements of the foreign operations are translated using the exchange rate at the balance sheet date except for property and equipment and equity, which are translated at historical rates. The Company’s subsidiaries in Uruguay, Argentina, Brazil and Paraguay transact part of their operations in Uruguayan pesos, Argentinean pesos, Brazilian reals and Paraguayan guaranies. However, all of the subsidiaries’ primary cash flows are U.S. dollar-denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the consolidated statement of operations. The foreign currency exchange (losses)/gains recognized in the consolidated statement of operations for each of the years ended December 31, 2017, 2016 and 2015 were ($726), $1,722 and $219, respectively. |
Provisions for contingencies losses: | (q) Provisions for contingencies losses: The Company, in the ordinary course of business, is subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency loss is probable at the date of the financial statements and the amount of the loss can be reasonably estimated. If the Company has determined that the reasonable estimate of the probable loss is a range and there is no best estimate within the range, the Company will accrue the lower amount of the range. For probable losses accrued any reasonably possible loss in excess of amounts accrued are disclosed. See Note 14, “Commitments and Contingencies” for further discussion. During the year ended December 31, 2017, the Company recorded $1,272 in the consolidated statement of operations under “Other income, net” as additional income for several contracts relating to the Barge Business. |
Segment Reporting: | (r) Segment Reporting: Operating segments, as defined, are components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. Based on the Company’s methods of internal reporting and management structure, the Company has three reportable segments: Port Terminal Business, Cabotage Business and Barge Business. See Note 21 for details. |
Revenue and Expense Recognition: | (s) Revenue and Expense Recognition: Revenue is recorded when (i) services are rendered, (ii) the Company has signed a charter agreement or other evidence of an arrangement, (iii) the price is fixed or determinable, and (iv) collection is reasonably assured. The Company generates revenue from time charters, bareboat charters, contracts of affreightment/voyage contracts, demurrages and contracts covering dry or liquid port terminal operations. Revenue from time chartering and bareboat chartering is earned and recognized on a daily basis as the service is delivered. Revenue from contracts of affreightment “CoA”/voyage contracts is recognized based upon the percentage of voyage completion. A voyage is deemed to commence upon the barge’s arrival at the loading port, as applicable under the contract, and is deemed to end upon the completion of discharge under the current voyage. The percentage of voyage completion is based on the days traveled as of the balance sheet date divided by the total days expected for the voyage. The position of the barge at the balance sheet date is determined by the days traveled as of the balance sheet date over the total voyage of the pushboat having the barge in tow. Revenue arising from contracts that provide our customers with continuous access to convoy capacity is recognized ratably over the period of the contracts. Demurrage income represents payments made by the charterer to the vessel owner when loading or discharging time exceeds the stipulated time in the voyage charter and is recognized as it is earned. Deferred revenue primarily relates to cash received from clients in either of the Company’s businesses prior to it being earned. These amounts are recognized as revenue over the period that the service is rendered. Revenues from dry port terminal operations consist of an agreed flat fee per ton and cover the services performed to unload barges (or trucks), transfer the product into the silos, or the stockpiles for temporary storage and then loading the oceangoing vessels. Revenues are recognized upon completion of loading of the oceangoing vessels. Additionally, fees are charged for vessel dockage and for storage time in excess of contractually specified terms. Dockage revenues are recognized ratably up to completion of loading. Storage fees are assessed and recognized when the product remains in the silo storage beyond the contractually agreed time allowed. Storage fee revenue is recognized ratably over the storage period and ends when the product is loaded onto the oceangoing vessel. Revenues from liquid port terminal operations consist mainly of sales of petroleum products in the Paraguayan market. Additionally, revenues consist of an agreed flat fee per cubic meter to cover the services performed to unload barges, transfer the products into the tanks for temporary storage and then loading the trucks. Revenues are recognized upon completion of loading the trucks. Additionally, fees are charged for storage time in excess of contractually specified terms. Storage fee revenue is recognized ratably over the storage period and ends when the product is loaded onto the trucks. Time Charter, Voyage and Port Terminal Expenses: Time charter and voyage expenses comprise all expenses related to each particular voyage, including time charter hire paid and voyage freight paid, bunkers, port charges, canal tolls, cargo handling, agency fees and brokerage commissions. Direct Vessel Expenses: Direct vessel expenses consist of all expenses relating to the operation of vessels, including crewing, repairs and maintenance, victualing costs, dockage expenses, insurance, stores and lubricants and miscellaneous expenses such as communications. |
Financial Instruments: | (t) Financial Instruments: Financial instruments carried on the balance sheet include cash and cash equivalents, trade receivables and payables, other receivables, long-term debt and other liabilities. The particular recognition methods applicable to each class of financial instrument are disclosed in the applicable significant accounting policy description of each item, or included below as applicable. Financial risk management: The Company’s activities expose it to a variety of financial risks including fluctuations in future freight rates, time charter hire rates, and fuel prices, credit and interest rates risk. Risk management is carried out under policies approved by management. Guidelines are established for overall risk management, as well as specific areas of operations. Credit risk: The Company closely monitors its exposure to customers and counterparties for credit risk. Navios Logistics, through its access to Navios Holdings policies and personnel, has policies designed to limit trading to customers and counterparties with an appropriate credit history. Credit risk with respect to accounts receivable is reduced by the Company by rendering services to established international operators. Management believes that no additional credit risk beyond amounts provided for collection losses is inherent in the Company’s trade receivables. Liquidity risk: Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Company monitors cash balances for its working capital needs. Foreign exchange risk: Foreign currency transactions are translated into the measurement currency rates prevailing at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of operations. |
Earnings per Share: | (u) Earnings per Share: Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the years presented. There are no dilutive or potentially dilutive securities, accordingly there is no difference between basic and diluted net earnings per share. |
Income Taxes: | (v) Income Taxes: The Company is a Marshall Islands corporation. The Company believes that substantially all of its operations are exempt from income taxes in the Marshall Islands. The Company’s subsidiaries are, however, subject to income taxes in some of the countries in which they operate, mainly Argentina, Brazil and Paraguay. The Company’s operations in Uruguay and Panama are exempt from income taxes. As per the tax laws of the countries in which the Company operates that are subject to income taxes, the provisions for income taxes have been computed on a separate return basis (i.e., the Company does not prepare a consolidated income tax return). All income tax payments are made by the subsidiaries as required by the respective tax laws. At any point in time, the Company may have tax audits underway at various stages of completion. The Company evaluates the tax positions and establishes liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closing of statute of limitations. Such adjustments are reflected in the tax provision as appropriate. Argentinean companies have open tax years ranging from 2010 and onwards and Paraguayan and Brazilian companies have open tax years ranging from 2011 and onwards. In relation to these open tax years, the Company believes that there are no material uncertain tax positions. The Company is generally not able to reliably estimate the ultimate settlement amounts until the close of an audit. The Company classifies interest and penalties, related to income taxes in the consolidated statement of operations under income taxes. The asset and liability method is used to account for future income taxes. Under this method, future income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Future income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A deferred tax asset is recognized for temporary differences or losses carried forward that will result in deductible amounts in future years. Valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. On December 29, 2017, the Argentine government enacted the Law 27,430 that made changes to the income tax law in Argentina. The new law modifies the rates for income taxes applicable in the next years. In measuring its income tax assets and liabilities, the Company used the rate that is expected to be enacted at the time of the reversal of the asset or liability in the calculation of the deferred tax for the items related to Argentina. An income tax rate of 30% was applied on temporary differences whose reversal is expected to occur in the years before 2020, and a rate of 25% on temporary differences remaining thereafter. During the year ended December 31, 2017, the Company has recorded an income tax benefit of $2,837 within the caption “Income tax benefit/(expense)” in the consolidated statements of operations related to the change in the rate of the income tax. Minimum presumed income tax (MPIT): Under the tax laws of Argentina, the Company’s subsidiary in that country is subject to a minimum presumed income tax, or MPIT. This tax is supplementary to income tax. The tax is calculated by applying the effective tax rate of 1% on the tax basis of certain assets. The subsidiaries’ tax liabilities will be the higher of income tax or MPIT. However, if the MPIT exceeds income tax during any fiscal year, such excess may be computed as a prepayment of any income tax excess over the MPIT that may arise in the next ten fiscal years. The Company has recorded as other current asset a total amount of $226 for the year ended December 31, 2017 ($502 in 2016) in relation to MPIT, as we expect that the MPIT asset will be applied against taxable income of the fiscal year 2018. Through General Instruction N ° 2/2017 of the Administracion Federal de Ingresos Publicos (“AFIP”) in Argentina, the organization has instructed its legal areas to respect the criteria set by the Supreme Court of Justice of the Nation. This criteria states that there is no minimum profit presumed when a company has recorded losses in the accounting balances and losses tax carry forward in the income tax presentation in the fiscal period. As a consequence of this measure, the Argentine subsidiary of the Company has not determined a tax on minimum presumed income (or advances) for the 2017 fiscal year. |
Other Taxes: | (w) Other Taxes: Turnover tax: Under the tax laws of Argentina, the Company’s subsidiary in that country is subject to taxes levied on gross revenues. Rates differ depending on the jurisdiction where revenues are earned for tax purposes. Average rates were approximately 5.0% for the year ended December 31, 2017 (5.0% for both 2016 and 2015, respectively). As a result of the tax reform voted by the Argentinean Parliament in December 2017, this rate will be reduced as of January 2018, from 5.0% to 3.0% Turnover taxes are recorded as part of taxes other than income tax in the consolidated statement of operations and amounted to $2,948 for the year ended December 31, 2017 ($3,389 in 2016 and $2,942 in 2015). |
Dividends: | (x) Dividends: Dividends are recorded in the Company’s consolidated financial statements in the period in which they are declared. On November 3, 2017, the Company paid a dividend in the aggregate amount of $70,000, out of which $44,677 was paid to Navios Holdings. |
Pension Information: | (y) Pension Information: The Company does not maintain any pension plans. The laws in the different countries in which the Company carries out its operations provide for pension benefits to be paid to retired employees from government pension plans and/or privately-managed pension funds. |
Severance Payments: | (z) Severance Payments: Under certain laws and labor agreements of the countries in which the Company conducts its operations, the Company is required to make minimum severance payments to its dismissed employees without cause and employees leaving its employment in certain other circumstances. Accrual of severance costs is made if they relate to services already rendered, relate to rights that accumulate or vest, are probable of payment and are reasonably estimable. While the Company expects to make severance payments in the future, it is impossible to estimate the number of employees that will be dismissed without proper cause in the future, if any, and accordingly the Company has not recorded such liability. Instead, severance payments are expensed as incurred. |
Recent Accounting Pronouncements: | (aa) Recent Accounting Pronouncements: In February 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)”. This update clarifies the scope of Subtopic 610-20 “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets” and provides guidance for partial sales of nonfinancial assets. Subtopic 610-20, which was issued in May 2014 as a part of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The amendments in ASU 2017-05 are effective at the same time as the amendments in ASU 2014-09. Therefore the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The adoption of this new standard is not expected to have material impact on the Company’s results of operations, financial position or cash flows. In January 2017, FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350)”. This update addresses concerns expressed about the cost and complexity of the goodwill impairment test and simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The amendments in this ASU are required for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendments are effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019. Early adoption is permitted for all entities. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements. In January 2017, FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323)”. The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to our consolidated financial statements was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with SAB Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. In December 2016, FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The amendments in this ASU affect narrow aspects of the guidance issued in ASU 2014-09, which is not yet effective, and are of a similar nature to the items typically addressed in the Technical Corrections and Improvements project. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, defers the effective date of Update 2014-09 by one year, as noted below. In November 2016, FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. This update addresses the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230, Statement of Cash Flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for all entities. The Company currently presents changes in restricted cash and cash equivalents depending on the nature of the cash flow within the consolidated statement of cash flows. The new guidance will not impact financial results, but will result in a change in the presentation of restricted cash and cash equivalents within the statement of cash flows. The Company currently plans to adopt this guidance from January 1, 2018. In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for all entities. The Company has assessed each of the eight specific presentation issues and the adoption of this ASU does not have a material impact on the Company’s consolidated financial statements. In February 2016, FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 will apply to both capital (or finance) leases and operating leases. According to ASU 2016-02, lessees will be required to recognize assets (right of use asset) and liabilities (lease liabilities) on the balance sheet for both types of leases, capital (or finance) leases and operating leases, with terms greater than 12 months. ASU 2016 – 02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. In January 2018, the FASB issued a proposed amendment to ASC 842, Leases, that would provide an entity the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to accumulated deficit on the effective date of the ASU, January 1, 2019 rather than January 1, 2017, which would eliminate the need to restate amounts presented prior to January 1, 2019. In addition, this proposed amendment, lessors can elect, as a practical expedient, not to allocate the total consideration to lease and non-lease components based on their relative standalone selling prices. If adopted, this practical expedient will allow lessors to elect a combined single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and, the combined single lease component would be classified as an operating lease. This guidance requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset and non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components will be governed by ASC 842 while revenue related to non-lease components will be subject to ASC 606. ASC 842 provides practical expedients that allow 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 the standard on January 1, 2019 and expects to elect the use of practical expedients. If the proposed amendment to ASC 842 is adopted, the Company would elect the transition method for adoption as described above. Based on a preliminary assessment, the Company expects the adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. With regards to the Company’s charter-out contracts, the Company is not expecting that the adoption will have a material effect on its consolidated financial statements since the Company is a lessor for these charter-out contracts and the changes are fairly minor. If the proposed practical expedient mentioned above is adopted and elected, good and services embedded in the charter-out contract that qualify as non-lease components will be combined under a single lease component presentation. However, without the proposed practical expedient, the Company expects that it will continue to recognize the lease revenue component using an approach that is substantially equivalent to existing guidance. The components of the charter hire that are categorized as lease components will generally be a fixed rate per day with revenue recognized straight line over the lease contract. Other goods and services that are categorized as non-lease components will be recognized at either a point in time or over time based on the pattern of transfer of the underlying goods or services to our charterers. The Company is continuing its assessment of other miscellaneous leases, which have lease terms greater than 12 months and the Company is the lessee and may identify additional impacts this guidance will have on the consolidated financial statements and disclosures. In January 2016, FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10)—Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments in this ASU require an entity (i) to measure equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value with changes in fair value recognized in net income; (ii) to perform a qualitative assessment to identify impairment in equity investments without readily determinable fair values; (iii) to present separately in other comprehensive income the fair value of a liability resulting from a change in the instrument-specific credit risk; and (iv) to present separately financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet. The amendments also eliminate the requirement, for public business entities, to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this new standard is not expected to have a material impact on the Company’s results of operations, financial position or cash flows. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, clarifying the method used to determine the timing and requirements for revenue recognition on the statements of income. Under the new standard, an entity must identify the performance obligations in a contract, the transaction price and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts. The new accounting guidance was originally effective for interim and annual periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 for all entities by one year. The standard will be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein. The Company will adopt the standard as of January 1, 2018 and the adoption of this ASU will not have a material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Subsidiaries included in the consolidation | Company Name Country of Incorporation Nature Percentage of Ownership Statement of operations 2017 2016 2015 Corporacion Navios S.A. Uruguay Port-Facility Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Energias Renovables del Sur S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Nauticler S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania Naviera Horamar S.A. Argentina Vessel-Operating Management Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Compania de Transporte Fluvial International S.A. Uruguay Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ponte Rio S.A. Uruguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Tankers Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Navigation Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS Shipping Ltd. Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 HS South Inc. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrovia Internacional S.A. Uruguay Land-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Mercopar S.A. Paraguay Operating/Barge-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Petrolera San Antonio S.A. Paraguay Port Facility-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Stability Oceanways S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Hidronave South American Logistics S.A. Brazil Pushboat-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Horamar do Brasil Navegação Ltda Brazil Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navarra Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Pelayo Shipping Corporation Marshall Is. Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Navios Logistics Finance (US) Inc. Delaware Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Varena Maritime Services S.A. Panama Barge and Pushboat-Owning Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Honey Bunkering S.A. Panama Tanker-Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Naviera Alto Parana S.A. Paraguay Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Edolmix S.A. Uruguay Port-Terminal Rights Owning Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Cartisur S.A. Uruguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 NP Trading S.A. British Virgin Islands Sub-Holding Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Ruswe International S.A. Uruguay Barge-Operating Company 100% 1/1-12/31 1/1-12/31 1/1-12/31 Delta Naval Trade S.A. Panama Non-Operating Company 100% 1/1-12/31 7/21-12/31 — Terra Norte Group S.A. Paraguay Non-Operating Company 100% 1/1-12/31 1/1-12/31 9/30-12/31 |
Useful lives of fixed assets | Dry port terminal 5 to 49 years Oil storage, plant and port facilities for liquid cargoes 5 to 20 years Other fixed assets 5 to 10 years |
Weighted average amortization periods for intangibles | Intangible Assets/Liabilities Years Trade name 10 Port terminal operating rights 47 Customer relationships 20 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
Schedule of cash and cash equivalents | December 31, 2017 December 31, 2016 Cash on hand and at banks $79,885 $65,179 Short-term deposits 3 3 Total cash and cash equivalents $79,888 $65,182 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
Schedule of accounts receivable | December 31, 2017 December 31, 2016 Accounts receivable $28,507 $35,125 Less: Provision for losses on accounts receivables (2,781) (2,212) Accounts receivable, net $25,726 $32,913 |
Provision for Losses on Accounts Receivable | Provision for Losses on Accounts Receivables Balance at Beginning of Year (Charges to Expenses)/ Amount Recovered Amount Utilized Balance at End of Year Year ended December 31, 2015 $(971) $52 $— $(919) Year ended December 31, 2016 $(919) $(1,304) $11 $(2,212) Year ended December 31, 2017 $(2,212) $(569) $— $(2,781) |
Prepaid Expenses and Other Cu32
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract] | |
Schedule of prepaid expenses and other current assets | December 31, 2017 December 31, 2016 VAT and other tax credits 2,186 2,526 Insurance claims receivable, net 1,025 1,744 Deferred insurance premiums 1,074 2,042 Advances to suppliers 192 1,285 Other 1,706 2,195 Total prepaid expenses and other current assets $6,183 $9,792 |
Vessels, Port Terminals and O33
Vessels, Port Terminals and Other Fixed Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VESSELS, PORT TERMINALS AND OTHER FIXED ASSETS [Abstract] | |
Vessels, port terminal and other fixed assets, net | Tanker Vessels, Barges and Pushboats Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $464,968 $(111,139) $353,829 Additions 6,188 (20,007) (13,819) Restructuring of capital lease (210) — (210) Balance December 31, 2015 $470,946 $(131,146) $339,800 Additions 738 (18,894) (18,156) Transfers 3,696 — 3,696 Balance December 31, 2016 $475,380 $(150,040) $325,340 Additions 5,531 (17,603) (12,072) Disposals (3,585) 3,585 — Revaluation of vessels due to termination of capital lease obligation (5,243) — (5,243) Balance December 31, 2017 $472,083 $(164,058) $308,025 Dry Port Terminals Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $78,385 $(11,446) $66,939 Additions 1,266 (2,173) (907) Balance December 31, 2015 $79,651 $(13,619) $66,032 Additions 452 (2,204) (1,752) Balance December 31, 2016 $80,103 $(15,823) $64,280 Additions 4,362 (4,826) (464) Transfers from deposits for vessels, port terminals and other fixed assets 137,357 — 137,357 Balance December 31, 2017 $221,822 $ (20,649) $201,173 Oil Storage Plant and Port Facilities for Liquid Cargoes Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $28,014 $(9,021) $18,993 Additions 1,021 (1,258) (237) Balance December 31, 2015 $29,035 $(10,279) $18,756 Additions 1,599 (1,289) 310 Transfers (1,513) — (1,513) Balance December 31, 2016 $29,121 $(11,568) $17,553 Additions 698 (411) 287 Balance December 31, 2017 $29,819 $ (11,979) $17,840 Other Fixed Assets Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $5,735 $(1,871) $3,864 Additions 116 (708) (592) Balance December 31, 2015 $5,851 $(2,579) $3,272 Additions 1,945 (718) 1,227 Transfers (2,183) — (2,183) Balance December 31, 2016 $5,613 $(3,297) $2,316 Additions 184 (482) (298) Disposals (75) 28 (47) Balance December 31, 2017 $5,722 $(3,751) $1,971 Total Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $577,102 $(133,477) $443,625 Additions 8,591 (24,146) (15,555) Restructuring of capital lease (210) — (210) Balance December 31, 2015 $585,483 $(157,623) $427,860 Additions 4,734 (23,105) (18,371) Balance December 31, 2016 $590,217 $(180,728) $409,489 Additions 10,775 (23,322) (12,547) Disposals (3,660) 3,613 (47) Transfers from deposits for vessels, port terminals and other fixed assets 137,357 — 137,357 Revaluation of vessels due to termination of capital lease obligation (5,243) — (5,243) Balance December 31, 2017 $729,446 $(200,437) $529,009 |
Schedule of future minimum lease payments under capital leases | Collections Due by Period December 31, 2017 December 31, 2018 $ 347 December 31, 2019 115 December 31, 2020 111 December 31, 2021 167 December 31, 2022 38 December 31, 2023 131 Total future minimum note receivable collections 909 Less: amount representing interest (91 ) Present value of future minimum Note receivable collections (1) $ 818 |
Intangible Assets Other Than 34
Intangible Assets Other Than Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS OTHER THAN GOODWILL [Abstract] | |
Schedule of intangible assets | December 31, 2017 Acquisition Cost Accumulated Amortization Net Book Value December 31, 2017 Trade name $10,420 $(10,420) — Port terminal operating rights 53,152 (10,889) 42,263 Customer relationships 36,120 (18,375) 17,745 Total intangible assets $99,692 $(39,684) $60,008 December 31, 2016 Acquisition Cost Accumulated Amortization Net Book Value December 31, 2016 Trade name $10,420 $(9,378) $1,042 Port terminal operating rights 53,152 (10,162) 42,990 Customer relationships 36,120 (16,601) 19,519 Total intangible assets $99,692 $(36,141) $63,551 |
Schedule of aggregate amortization of intangible assets | Description Within One Year Year Two Year Three Year Four Year Five Thereafter Total Port terminal operating rights 985 985 985 985 985 37,338 42,263 Customer relationships 1,775 1,775 1,775 1,775 1,775 8,870 17,745 Total $2,760 $2,760 $2,760 $2,760 $2,760 $46,208 $60,008 |
Accounts Payable and Accrued 35
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | |
Schedule of accounts payable | December 31, 2017 December 31, 2016 Trade payable $21,614 $28,767 Rent payable 230 168 Professional fees payable 429 980 Total accounts payable $22,273 $29,915 |
Schedule of accrued expenses | December 31, 2017 December 31, 2016 Accrued salaries $6,563 $6,142 Taxes 5,002 4,591 Accrued fees 1,086 446 Accrued bond coupon 4,531 4,531 Accrued interest 1,112 39 Other 56 152 Total accrued expenses $18,350 $15,901 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS [Abstract] | |
Loans' outstanding amounts | December 31, 2017 December 31, 2016 Senior Notes $375,000 $375,000 Term Loan B Facility $100,000 — Notes Payable $31,109 $34,447 BBVA loan $23,250 $25,000 Term Bank loan $13,300 — Loan for Nazira $253 $321 Total borrowings 542,912 434,768 Less: current portion (9,965) (6,351) Less: deferred financing costs, net (10,166) (6,820) Total long-term borrowings $522,781 $421,597 |
Principal payments | Year Amount in thousands of U.S. dollars 2018 $11,130 2019 11,795 2020 12,988 2021 110,257 2022 389,205 2023 and thereafter 7,537 Total $542,912 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE FAIR VALUE OF DERIVATIVE NET [Abstract] | |
Fair value of financial instruments | December 31, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value Cash and cash equivalents $ 79,888 $ 79,888 $ 65,182 $ 65,182 Restricted cash $ — $ — $ 2,900 $ 2,900 Note receivable, including current portion $ 818 $ 818 $ — $ — Senior notes $ (369,260 ) $ (361,549 ) $ (368,180 ) $ (355,781 ) Term Loan B Facility $ (95,669 ) $ (101,563 ) $ — $ — Notes payable, including current portion $ (31,109 ) $ (31,109 ) $ (34,447 ) $ (34,447 ) Capital lease obligations $ — $ — $ (17,617 ) $ (17,617 ) Long-term debt, including current portion $ (36,708 ) $ (36,708 ) $ (25,321 ) $ (25,321 ) |
Fair value measurements on a recurring basis | Fair Value Measurements at December 31, 2017 Total Level I Level II Level III Cash and cash equivalents $79,888 $79,888 $— $— Note receivable, including current portion $818 $818 $— $— Senior Notes $(361,549) $(361,549) $— $— Term Loan B Facility $(101,563) $— $(101,563) $— Notes payable, including current portion (1) $(31,109) $— $(31,109) $— Long-term debt (1) $(36,708) $— $(36,708) $— Fair Value Measurements at December 31, 2016 Total Level I Level II Level III Cash and cash equivalents $65,182 $65,182 $— $— Restricted cash $2,900 $2,900 $— $— Senior Notes $(355,781) $(355,781) $— $— Notes payable, including current portion (1) $(34,447) $— $(34,447) $— Capital lease obligations (1) $(17,617) $— $(17,617) $— Long-term debt (1) $(25,321) $— $(25,321) $— |
Time Charter, Voyage and Port38
Time Charter, Voyage and Port Terminal Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TIME CHARTER, VOYAGE AND PORT TERMINAL EXPENSES [Abstract] | |
Time charter, voyage and port terminal expenses | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Fuel $10,471 $11,839 $13,901 Time charter 1,564 1,521 1,307 Ports payroll and related costs 7,971 6,304 5,657 Docking expenses 3,272 3,287 3,299 Maritime and regulatory fees 578 610 909 Towing expenses 2,597 2,297 1,612 Other expenses 7,164 6,281 6,879 Total $33,617 $32,139 $33,564 |
Direct Vessel Expenses (Tables)
Direct Vessel Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DIRECT VESSEL EXPENSES [Abstract] | |
Direct vessel expenses | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Payroll and related costs $41,231 $41,443 $52,026 Insurances 3,534 4,149 4,088 Repairs and maintenance 7,952 12,351 8,893 Lubricants 736 1,046 899 Victualing 1,739 1,973 1,995 Travel expenses 3,343 3,608 3,484 Other expenses 4,019 4,560 3,361 Total $62,554 $69,130 $74,746 |
General and Administrative Ex40
General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GENERAL AND ADMINISTRATIVE EXPENSES [Abstract] | |
General and administrative expenses | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Payroll and related costs $7,030 $5,899 $6,260 Professional fees 3,998 3,946 3,734 Other expenses 5,637 4,449 4,014 Total $16,665 $14,294 $14,008 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Schedule of income before income taxes per juristiction | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Argentina $(6,496) $(789) $(14,031) Paraguay (1,306) (7,239) 5,942 Uruguay 36,931 44,432 49,465 Panama (26,701) (19,391) (16,283) Marshall Islands (2,894) (6,404) (6,716) Others 103 530 310 Total (loss)/income before income taxes and noncontrolling interest $(363) $11,139 $18,687 |
Schedule of income tax benefit/(expense) | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Current $(194) $(211) $ 1,947 Deferred 3,966 (333) 2,028 Total Argentina $3,772 $(544) $3,975 Current $(99) $(162) $(214) Deferred (205) (276) (210) Total Paraguay $(304) $(438) $(424) Total income tax benefit/(loss) $3,468 $(982) $3,551 |
Reconciliation of Income tax benefit to taxes calculated based on Argentinean tax rate | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Loss before income taxes and noncontrolling interest $(6,496) $(789) $(14,031) Statutory tax rate 35% 35% 35% Income before taxes at the statutory tax rate 2,274 276 4,911 Permanent differences 1,498 (820) (936) Income tax benefit/(loss) of the year $3,772 $(544) $3,975 |
Components of deferred income taxes | December 31, 2017 December 31, 2016 Deferred income tax assets: Future deductible differences $1,082 $316 Tax loss carry-forward 260 1,199 Total deferred income tax assets 1,342 1,515 Deferred income tax liabilities: Intangible assets (4,548) (7,222) Property, plant and equipment, net (3,347) (4,810) Other (1,212) (1,009) Total deferred income tax liabilities (9,107) (13,041) Net deferred income tax liabilities $(7,765) $(11,526) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LEASES [Abstract] | |
Future Minimum Revenues, net of Commissions | Amount 2018 $138,384 2019 104,721 2020 77,209 2021 62,290 2022 55,450 2023 and thereafter 699,388 Total minimum revenue, net of commissions $1,137,442 |
Future Minimum Commitments under Chartered-in Vessels, net of Commissions | Amount 2018 $182 2019 182 2020 31 Total minimum commitments, net of commissions $395 |
Future Minimum Commitments for Office Space, net of Commissions | Amount 2018 $761 2019 601 2020 509 2021 184 Total $2,055 |
Transactions with Related Par43
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRANSACTIONS WITH RELATED PARTIES [Abstract] | |
Amounts due to affiliate companies | December 31, 2017 December 31, 2016 Navios Holdings $(265) $(54) |
Earnings_(Loss) per Common Sh44
Earnings/(Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS/(LOSS) PER COMMON SHARE [Abstract] | |
Earnings/(Loss) per common and diluted shares | Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Net income attributable to Navios Logistics’ stockholders $3,105 $10,157 $22,238 Weighted average number of shares, basic and diluted 20,000 20,000 20,000 Net earnings per share from continuing operations: Basic and diluted $0.16 $0.51 $1.11 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [Abstract] | |
Segments summarized financial information | Port Terminal Business Segment for the Year Ended December 31, 2017 Cabotage Business Segment for the Year Ended December 31, 2017 Barge Business Segment for the Year Ended December 31, 2017 Total Time charter, voyage and port terminal revenues $53,526 $48,130 $78,388 $180,044 Sales of products 32,572 — — 32,572 Time charter, voyage and port terminal expenses (14,432) (1,866) (17,319) (33,617) Direct vessel expenses — (32,017) (30,537) (62,554) Cost of products sold (30,717) — — (30,717) Depreciation of vessels, port terminals and other fixed assets (5,238) (2,940) (15,144) (23,322) Amortization of intangible assets (729) — (2,814) (3,543) Amortization of deferred drydock and special survey costs — (5,148) (2,780) (7,928) General and administrative expenses (3,778) (1,718) (11,169) (16,665) Provision of losses on accounts receivable — — (569) (569) Taxes other than income taxes — (4,463) (4,555) (9,018) Interest expense and finance cost, net (7,004) (4,784) (16,559) (28,347) Interest income 14 — 224 238 Gain on sale of assets — — 1,064 1,064 Foreign exchange differences. net (406) 144 (464) (726) Other income, net 16 — 2,709 2,725 Income/(loss) before income taxes 23,824 (4,662) (19,525) (363) Income tax benefit/(expense) — (1,199) 4,667 3,468 Net income/(loss) $23,824 $(5,861) $(14,858) $3,105 Port Terminal Business Segment for the Year Ended December 31, 2016 Cabotage Business Segment for the Year Ended December 31, 2016 Barge Business Segment for the Year Ended December 31, 2016 Unallocated interest Total Time charter, voyage and port terminal revenues $36,268 $52,637 $101,313 $— $190,218 Sales of products 30,118 — — — 30,118 Time charter, voyage and port terminal expenses (12,340) (2,098) (17,701) — (32,139) Direct vessel expenses — (33,596) (35,534) — (69,130) Cost of products sold (27,450) — — — (27,450) Depreciation of vessels, port terminals and other fixed assets (3,533) (2,667) (16,905) — (23,105) Amortization of intangible assets (706) — (2,817) — (3,523) Amortization of deferred drydock and special survey costs — (3,765) (3,105) — (6,870) General and administrative expenses (2,646) (1,193) (10,455) — (14,294) Provision of losses on accounts receivable — — (1,304) — (1,304) Taxes other than income taxes — (4,617) (5,123) — (9,740) Interest expense and finance cost, net (1,381) (4,894) (16,973) (992) (24,240) Interest income 54 — 761 — 815 Foreign exchange differences. net (78) 1,184 616 — 1,722 Other income, net (98) — 159 — 61 Income/(loss) before income taxes 18,208 991 (7,068) (992) 11,139 Income tax (expense)/benefit — (1,457) 475 — (982) Net income/(loss) $18,208 $(466) $(6,593) $(992) $10,157 Port Terminal Business Segment for the Year Ended December 31, 2015 Cabotage Business Segment for the Year Ended December 31, 2015 Barge Business Segment for the Year Ended December 31, 2015 Unallocated interest Total Time charter, voyage and port terminal revenues $42,382 $63,345 $105,974 $— $211,701 Sales of products 39,347 — — — 39,347 Time charter, voyage and port terminal expenses (11,784) (2,659) (19,121) — (33,564) Direct vessel expenses — (41,831) (32,915) — (74,746) Cost of products sold (36,811) — — — (36,811) Depreciation of vessels, port terminals and other fixed assets (3,431) (4,645) (16,070) — (24,146) Amortization of intangible assets (1,006) — (2,817) — (3,823) Amortization of deferred drydock and special survey costs — (4,810) (2,470) — (7,280) General and administrative expenses (2,661) (1,128) (10,219) — (14,008) Recovery of losses on accounts receivable — — 52 — 52 Taxes other than income taxes — (5,600) (6,376) — (11,976) Interest expense and finance cost, net (1,088) (5,273) (16,982) (3,739) (27,082) Interest income 250 — 319 — 569 Foreign exchange differences. net (638) 679 178 — 219 Other income, net 72 (450) 613 — 235 Income/(loss) before income taxes 24,632 (2,372) 166 (3,739) 18,687 Income tax benefit/(expense) — (785) 4,336 — 3,551 Net income/(loss) $24,632 $(3,157) $4,502 $(3,739) $22,238 |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Entity Incorporation Date Of Incorporation | Dec. 17, 2007 |
Navios Maritime Holdings Inc. | |
Minority Interest Ownership Percentage By Parent | 63.80% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Subsidiaries in Consolidation (Table) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Corporacion Navios S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Port-Facility Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Energias Renovables del Sur S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Port-Terminal Rights Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Nauticler S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Sub-Holding Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Compania Naviera Horamar S.A. | |
Entity Information | |
Country of Incorporation | Argentina |
Nature | Vessel-Operating Management Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Compania de Transporte Fluvial International S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Sub-Holding Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Ponte Rio S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
HS Tankers Inc. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
HS Navigation Inc. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
HS Shipping Ltd. Inc. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
HS South Inc. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Petrovia Internacional S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Land-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Mercopar S.A. | |
Entity Information | |
Country of Incorporation | Paraguay |
Nature | Operating/Barge-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Petrolera San Antonio S.A. | |
Entity Information | |
Country of Incorporation | Paraguay |
Nature | Port Facility-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Stability Oceanways S.A. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Barge and Pushboat-Owning Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Hidronave South American Logistics S.A. | |
Entity Information | |
Country of Incorporation | Brazil |
Nature | Pushboat-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Horamar do Brazil Navegacao Ltda | |
Entity Information | |
Country of Incorporation | Brazil |
Nature | Non-Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Navarra Shipping Corporation | |
Entity Information | |
Country of Incorporation | Marshall Is. |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Pelayo Shipping Corporation | |
Entity Information | |
Country of Incorporation | Marshall Is. |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Navios Logistics Finance (US) Inc. | |
Entity Information | |
Country of Incorporation | Delaware |
Nature | Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Varena Maritime Services S.A. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Barge and Pushboat-Owning Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Honey Bunkering S.A. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Tanker-Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Naviera Alto Parana S.A. | |
Entity Information | |
Country of Incorporation | Paraguay |
Nature | Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Edolmix S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Port-Terminal Rights Owning Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Cartisur S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Non-Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
NP Trading S.A. | |
Entity Information | |
Country of Incorporation | British Virgin Islands |
Nature | Sub-Holding Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Ruswe International S.A. | |
Entity Information | |
Country of Incorporation | Uruguay |
Nature | Barge-Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 1/1-12/31 |
Delta Naval Trade S.A. | |
Entity Information | |
Country of Incorporation | Panama |
Nature | Non-Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 7/21-12/31 |
Terra Norte Group S.A. | |
Entity Information | |
Country of Incorporation | Paraguay |
Nature | Non-Operating Company |
Percentage of Ownership | 100.00% |
Statement of operations | |
2,017 | 1/1-12/31 |
2,016 | 1/1-12/31 |
2,015 | 9/30-12/31 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Useful Lives of Assets (Table) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Dry port terminal | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Dry port terminal | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 49 years |
Oil storage, plant and port facilities for liquid cargoes | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Oil storage, plant and port facilities for liquid cargoes | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Other fixed assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Other fixed assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Amortization Period of Intangible Assets/Liabilities (Table) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Trade name | |
Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 10 years |
Port terminal operating rights | |
Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 47 years |
Customer relationships | |
Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 20 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||
Payments for drydock and special survey costs | $ (3,687) | $ (7,220) | $ (9,497) | ||
Restricted cash | 0 | 2,900 | 0 | ||
Amortization of deferred financing costs | 1,275 | 1,002 | 928 | ||
Amortization of deferred drydock and special survey costs | 7,928 | 6,870 | 7,280 | ||
Foreign currency exchange gains/(losses) recognized | (726) | 1,722 | 219 | ||
Property, Plant and Equipment [Line Items] | |||||
Capitalized interest costs | 4,764 | 5,843 | 2,261 | ||
Accumulated amortization of deferred drydock and special survey costs | $ 34,092 | 26,164 | |||
Amortization method of intangible assets | straight-line method | ||||
Dividends paid | $ (70,000) | 0 | 0 | ||
Income tax benefit/(expense) | (3,468) | 982 | (3,551) | ||
Other income, net | 2,725 | $ 61 | $ 235 | ||
Navios Holdings | |||||
Property, Plant and Equipment [Line Items] | |||||
Dividends paid to Navios Holdings | 44,677 | ||||
Tax reform | |||||
Property, Plant and Equipment [Line Items] | |||||
Income tax benefit/(expense) | $ 2,837 | ||||
ARGENTINA | |||||
Property, Plant and Equipment [Line Items] | |||||
Average tax rates used to calculate the turnover tax | 5.00% | 5.00% | 5.00% | ||
Turnover taxes | $ 2,948 | $ 3,389 | $ 2,942 | ||
Statutory tax rate | 35.00% | 35.00% | 35.00% | ||
Income tax benefit/(expense) | $ 3,772 | $ (544) | $ 3,975 | ||
ARGENTINA | Tax reform | |||||
Property, Plant and Equipment [Line Items] | |||||
Average tax rates used to calculate the turnover tax | 3.00% | ||||
Statutory tax rate | 25.00% | 30.00% | |||
Minimum presumed income tax | |||||
Property, Plant and Equipment [Line Items] | |||||
Effective tax rate used to calculate the minimum presumed income tax (MPIT) | 1.00% | ||||
Other current assets | $ 226 | $ 502 | |||
Drydocking and special survey costs for Ocean-going Vessels | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 | ||||
Drydocking and special survey costs for Pushboats and Barges | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 7 | ||||
Barges, Pushboats and Other Vessels | |||||
Property, Plant and Equipment [Line Items] | |||||
Barges, Pushboats, Other Vessels, Port terminals and Other fixed assets depreciation method | straight-line method | ||||
Barges, Pushboats and Other Vessels | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 15 years | ||||
Barges, Pushboats and Other Vessels | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 45 years | ||||
Several barge business contracts | |||||
Property, Plant and Equipment [Line Items] | |||||
Other income, net | $ 1,272 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash Equivalents At Carrying Value [Abstract] | ||||
Cash on hand and at banks | $ 79,885 | $ 65,179 | ||
Short-term deposits | 3 | 3 | ||
Total cash and cash equivalents | $ 79,888 | $ 65,182 | $ 81,507 | $ 71,931 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ACCOUNTS RECEIVABLE, NET [Abstract] | ||||
Accounts receivable | $ 28,507 | $ 35,125 | ||
Less: Provision for losses on accounts receivables | (2,781) | (2,212) | $ (919) | $ (971) |
Accounts receivable, net | $ 25,726 | $ 32,913 |
Accounts Receivable, Net - Prov
Accounts Receivable, Net - Provisions for Losses on Accounts Receivables (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE NET CURRENT [Abstract] | |||
Balance at Beginning of Year | $ (2,212) | $ (919) | $ (971) |
(Charges to Expenses)/ Amount Recovered | (569) | (1,304) | 52 |
Amount Recovered | 0 | 11 | 0 |
Balance at End of Year | $ (2,781) | $ (2,212) | $ (919) |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer 1 | |||
Entity Wide Revenue Major Customer | |||
Revenue percentage | 20.30% | 28.00% | 27.80% |
Customer 2 | |||
Entity Wide Revenue Major Customer | |||
Revenue percentage | 13.70% | 13.80% | 12.90% |
Customer 3 | |||
Entity Wide Revenue Major Customer | |||
Revenue percentage | 12.70% | 11.50% |
Prepaid Expenses and Other Cu55
Prepaid Expenses and Other Current Assets - Schedule (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract] | ||
VAT and other tax credits | $ 2,186 | $ 2,526 |
Insurance claims receivable, net | 1,025 | 1,744 |
Deferred insurance premiums | 1,074 | 2,042 |
Advances to suppliers | 192 | 1,285 |
Other | 1,706 | 2,195 |
Total prepaid expenses and other current assets | $ 6,183 | $ 9,792 |
Vessels, Port Terminals and O56
Vessels, Port Terminals and Other Fixed Assets, net - Balance Sheet Analysis (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Vessels, port terminals and other fixed assets, net | |||
Balance | $ 409,489 | ||
Additions | 10,775 | ||
Additions | (23,322) | $ (23,105) | $ (24,146) |
Disposals | (47) | ||
Transfers / Restructuring of capital lease | 137,357 | 0 | 0 |
Revaluation of vessels due to termination of capital lease obligation | (5,243) | 0 | (210) |
Balance | 529,009 | 409,489 | |
Cost | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 590,217 | 585,483 | 577,102 |
Additions | 10,775 | 4,734 | 8,591 |
Disposals | (3,660) | ||
Transfers / Restructuring of capital lease | 137,357 | (210) | |
Revaluation of vessels due to termination of capital lease obligation | (5,243) | ||
Balance | 729,446 | 590,217 | 585,483 |
Accumulated Depreciation | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | (180,728) | (157,623) | (133,477) |
Additions | (23,322) | (23,105) | (24,146) |
Disposals | 3,613 | ||
Balance | (200,437) | (180,728) | (157,623) |
Net Book Value | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 409,489 | 427,860 | 443,625 |
Additions | (12,547) | (18,371) | (15,555) |
Disposals | (47) | ||
Transfers / Restructuring of capital lease | 137,357 | (210) | |
Revaluation of vessels due to termination of capital lease obligation | (5,243) | ||
Balance | 529,009 | 409,489 | 427,860 |
Tanker Vessels, Barges and Pushboats | Cost | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 475,380 | 470,946 | 464,968 |
Additions | 5,531 | 738 | 6,188 |
Disposals | (3,585) | ||
Transfers / Restructuring of capital lease | 3,696 | (210) | |
Revaluation of vessels due to termination of capital lease obligation | (5,243) | ||
Balance | 472,083 | 475,380 | 470,946 |
Tanker Vessels, Barges and Pushboats | Accumulated Depreciation | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | (150,040) | (131,146) | (111,139) |
Additions | (17,603) | (18,894) | (20,007) |
Disposals | 3,585 | ||
Balance | (164,058) | (150,040) | (131,146) |
Tanker Vessels, Barges and Pushboats | Net Book Value | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 325,340 | 339,800 | 353,829 |
Additions | (12,072) | (18,156) | (13,819) |
Transfers / Restructuring of capital lease | 3,696 | (210) | |
Revaluation of vessels due to termination of capital lease obligation | (5,243) | ||
Balance | 308,025 | 325,340 | 339,800 |
Dry Port Terminals | Cost | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 80,103 | 79,651 | 78,385 |
Additions | 4,362 | 452 | 1,266 |
Transfers / Restructuring of capital lease | 137,357 | ||
Balance | 221,822 | 80,103 | 79,651 |
Dry Port Terminals | Accumulated Depreciation | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | (15,823) | (13,619) | (11,446) |
Additions | (4,826) | (2,204) | (2,173) |
Balance | (20,649) | (15,823) | (13,619) |
Dry Port Terminals | Net Book Value | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 64,280 | 66,032 | 66,939 |
Additions | (464) | (1,752) | (907) |
Transfers / Restructuring of capital lease | 137,357 | ||
Balance | 201,173 | 64,280 | 66,032 |
Oil Storage Plant and Port Facilities for Liquid Cargoes | Cost | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 29,121 | 29,035 | 28,014 |
Additions | 698 | 1,599 | 1,021 |
Transfers / Restructuring of capital lease | (1,513) | ||
Balance | 29,819 | 29,121 | 29,035 |
Oil Storage Plant and Port Facilities for Liquid Cargoes | Accumulated Depreciation | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | (11,568) | (10,279) | (9,021) |
Additions | (411) | (1,289) | (1,258) |
Balance | (11,979) | (11,568) | (10,279) |
Oil Storage Plant and Port Facilities for Liquid Cargoes | Net Book Value | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 17,553 | 18,756 | 18,993 |
Additions | 287 | 310 | |
Additions | (237) | ||
Transfers / Restructuring of capital lease | (1,513) | ||
Balance | 17,840 | 17,553 | 18,756 |
Other Fixed Assets | Cost | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 5,613 | 5,851 | 5,735 |
Additions | 184 | 1,945 | 116 |
Disposals | (75) | ||
Transfers / Restructuring of capital lease | (2,183) | ||
Balance | 5,722 | 5,613 | 5,851 |
Other Fixed Assets | Accumulated Depreciation | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | (3,297) | (2,579) | (1,871) |
Additions | (482) | (718) | (708) |
Disposals | 28 | ||
Balance | (3,751) | (3,297) | (2,579) |
Other Fixed Assets | Net Book Value | |||
Vessels, port terminals and other fixed assets, net | |||
Balance | 2,316 | 3,272 | 3,864 |
Additions | 1,227 | ||
Additions | (298) | (592) | |
Disposals | (47) | ||
Transfers / Restructuring of capital lease | (2,183) | ||
Balance | $ 1,971 | $ 2,316 | $ 3,272 |
Vessels, Port Terminals and O57
Vessels, Port Terminals and Other Fixed Assets, net - Future Minimum Collections of Note Receivable (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Payment Due by Period [Abstract] | ||
December 31, 2018 | $ 347 | |
December 31, 2019 | 115 | |
December 31, 2020 | 111 | |
December 31, 2021 | 167 | |
December 31, 2022 | 38 | |
December 31, 2023 | 131 | |
Total future minimum note receivable collections | 909 | |
Less: amount representing interest | (91) | |
Present value of future minimum Note receivable collections | $ 818 | $ 0 |
Vessels, Port Terminals and O58
Vessels, Port Terminals and Other Fixed Assets, net (Details) € in Thousands, $ in Thousands | 8 Months Ended | 12 Months Ended | |||||||
Sep. 04, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 18, 2018USD ($) | Dec. 31, 2017EUR (€) | Feb. 28, 2017USD ($) | Feb. 11, 2014USD ($) | |
Vessels, port terminals and other fixed assets, net | |||||||||
Assets pledged as collateral | $ 93,991 | $ 650 | |||||||
Payments of obligations under capital leases | 12,374 | 3,032 | $ 1,501 | ||||||
Construction cost | 36,849 | 136,891 | |||||||
Capitalized interest costs | 4,764 | 5,843 | 2,261 | ||||||
Payments made during the period to acquire fixed assets | $ 9,932 | 4,262 | $ 7,881 | ||||||
San San H product tanker | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Vessel Capacity in dwt | 16,871 | 16,871 | |||||||
Ferni H product tanker | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Vessel Capacity in dwt | 16,871 | 16,871 | |||||||
San San H/Ferni H product tankers | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Payments of obligations under capital leases | 3,032 | ||||||||
Acquisition cost | $ 11,239 | ||||||||
Formosa and San Lorenzo | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | $ 1,109 | ||||||||
Dry Barges | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | $ 1,115 | $ 486 | |||||||
Payments made during the period to acquire fixed assets | $ 629 | ||||||||
Three new pushboats | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Construction cost | 30,708 | 16,156 | |||||||
Capitalized interest costs | 3,384 | 1,934 | |||||||
One pushboat | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | $ 7,344 | ||||||||
Two pushboats | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | 7,344 | ||||||||
Three pushboats | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | $ 7,344 | ||||||||
Expansion of dry port | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Construction cost | 137,357 | 120,735 | |||||||
Capitalized interest costs | 9,971 | $ 6,862 | |||||||
River and estuary tanker | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Acquisition cost | 14,854 | € 12,400 | |||||||
Capitalized interest costs | 205 | ||||||||
Payments made during the period to acquire fixed assets | $ 6,141 | ||||||||
River and estuary tanker | Shipbuilder | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Percentage financed by third party | 50.00% | 50.00% | |||||||
River and estuary tanker | Shipbuilder | Maximum | |||||||||
Vessels, port terminals and other fixed assets, net | |||||||||
Amount financed by third party | $ 7,427 | € 6,200 |
Intangible Assets Other Than 59
Intangible Assets Other Than Goodwill - Schedule (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible assets other than goodwill | ||
Acquisition Cost | $ 99,692 | $ 99,692 |
Accumulated Amortization | (39,684) | (36,141) |
Net Book Value | 60,008 | 63,551 |
Trade name | ||
Intangible assets other than goodwill | ||
Acquisition Cost | 10,420 | 10,420 |
Accumulated Amortization | (10,420) | (9,378) |
Net Book Value | 0 | 1,042 |
Port terminal operating rights | ||
Intangible assets other than goodwill | ||
Acquisition Cost | 53,152 | 53,152 |
Accumulated Amortization | (10,889) | (10,162) |
Net Book Value | 42,263 | 42,990 |
Customer relationships | ||
Intangible assets other than goodwill | ||
Acquisition Cost | 36,120 | 36,120 |
Accumulated Amortization | (18,375) | (16,601) |
Net Book Value | $ 17,745 | $ 19,519 |
Intangible Assets Other Than 60
Intangible Assets Other Than Goodwill - Aggregate Amortization (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Weighted average amortization periods of intangible assets | ||
Within One Year | $ 2,760 | |
Year Two | 2,760 | |
Year Three | 2,760 | |
Year Four | 2,760 | |
Year Five | 2,760 | |
Thereafter | 46,208 | |
Total | 60,008 | $ 63,551 |
Port terminal operating rights | ||
Weighted average amortization periods of intangible assets | ||
Within One Year | 985 | |
Year Two | 985 | |
Year Three | 985 | |
Year Four | 985 | |
Year Five | 985 | |
Thereafter | 37,338 | |
Total | 42,263 | 42,990 |
Customer relationships | ||
Weighted average amortization periods of intangible assets | ||
Within One Year | 1,775 | |
Year Two | 1,775 | |
Year Three | 1,775 | |
Year Four | 1,775 | |
Year Five | 1,775 | |
Thereafter | 8,870 | |
Total | $ 17,745 | $ 19,519 |
Intangible Assets Other Than 61
Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 15, 2014 | |
Intangible assets other than goodwill | |||||
Amortization expense | $ 3,543 | $ 3,523 | $ 3,823 | ||
Payments made during the period to acquire intangible assets | $ 0 | $ 0 | 6,800 | ||
Two Companies | |||||
Intangible assets other than goodwill | |||||
Acquisition cost | $ 17,000 | ||||
Payments To Acquire Businesses Gross | $ 6,800 | $ 10,200 |
Accounts Payable and Accrued 62
Accounts Payable and Accrued Expenses - Accounts Payable (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES CURRENT [Abstract] | ||
Trade payable | $ 21,614 | $ 28,767 |
Rent payable | 230 | 168 |
Professional fees payable | 429 | 980 |
Total accounts payable | $ 22,273 | $ 29,915 |
Accounts Payable and Accrued 63
Accounts Payable and Accrued Expenses - Accrued Expenses (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ACCRUED LIABILITIES CURRENT [Abstract] | ||
Accrued salaries | $ 6,563 | $ 6,142 |
Taxes | 5,002 | 4,591 |
Accrued fees | 1,086 | 446 |
Accrued bond coupon | 4,531 | 4,531 |
Accrued Interest | 1,112 | 39 |
Other | 56 | 152 |
Total accrued expenses | $ 18,350 | $ 15,901 |
Borrowings - Schedule (Table) (
Borrowings - Schedule (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 29, 2009 |
Debt Instrument [Line Items] | |||
Senior Notes | $ 375,000 | $ 375,000 | |
Loans Payable | 36,708 | 25,321 | |
Notes Payable | 31,109 | 34,447 | |
Total borrowings | 542,912 | 434,768 | |
Less: current portion | (9,965) | (6,351) | |
Less: deferred financing costs, net | (10,166) | (6,820) | |
Total long-term borrowings | 522,781 | 421,597 | |
BBVA Loan | |||
Debt Instrument [Line Items] | |||
Loans Payable | 23,250 | 25,000 | |
Loan for Nazira | |||
Debt Instrument [Line Items] | |||
Loans Payable | 253 | 321 | $ 817 |
Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Loans Payable | 100,000 | 0 | |
Less: deferred financing costs, net | (4,331) | ||
Term Bank loan | |||
Debt Instrument [Line Items] | |||
Loans Payable | $ 13,300 | $ 0 |
Borrowings - Future Payments of
Borrowings - Future Payments of Long Term Debt (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
LONG TERM DEBT BY MATURITY [Abstract] | ||
2,018 | $ 11,130 | |
2,019 | 11,795 | |
2,020 | 12,988 | |
2,021 | 110,257 | |
2,022 | 389,205 | |
2023 and thereafter | 7,537 | |
Total | $ 542,912 | $ 434,768 |
Borrowings (Details)
Borrowings (Details) $ in Thousands | 4 Months Ended | 5 Months Ended | 10 Months Ended | 12 Months Ended | |||
Apr. 22, 2014USD ($) | May 17, 2017USD ($) | Nov. 03, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 29, 2009USD ($) | |
Borrowings | |||||||
Deferred financing costs | $ 10,166 | $ 6,820 | |||||
Interest expense | 28,347 | 24,240 | $ 27,082 | ||||
Loans Payable | 36,708 | 25,321 | |||||
Dividends Paid | $ 70,000 | $ 0 | $ 0 | ||||
Annual weighted average interest rate | 6.13% | 6.08% | 7.21% | ||||
Navios Holdings | |||||||
Borrowings | |||||||
Dividends paid to Navios Holdings | $ 44,677 | ||||||
2022 Senior Notes | |||||||
Borrowings | |||||||
Amount issued in Senior Notes | $ 375,000 | ||||||
Senior Notes maturity date | May 1, 2022 | ||||||
Interest rate | 7.25% | ||||||
Debt redemption description | The Co-Issuers have the option to redeem the 2022 Senior Notes in whole or in part, at their option, at any time on or after May 1, 2017, at a fixed price of 105.438%, which price declines ratably until it reaches par in 2020. In addition, upon the occurrence of certain change of control events, the holders of the 2022 Senior Notes will have the right to require the Co-Issuers to repurchase some or all of the 2022 Senior Notes at 101% of their face amount, plus accrued and unpaid interest to the repurchase date. | ||||||
Deferred financing costs | $ 5,740 | $ 6,820 | |||||
Interest expense | $ 27,188 | 27,188 | $ 27,188 | ||||
Senior Notes covenants | The indenture contains covenants which, among other things, limit the incurrence of additional indebtedness, issuance of certain preferred stock, the payment of dividends in excess of 6% per annum of the net proceeds received by or contributed to Navios Logistics in or from any public offering, redemption or repurchase of capital stock or making restricted payments and investments, creation of certain liens, transfer or sale of assets, entering into transactions with affiliates, merging or consolidating or selling all or substantially all of Navios Logistics' properties and assets and creation or designation of restricted subsidiaries. | ||||||
Maximum dividend percentage | 6.00% | ||||||
Mandatory redemption price percentage | 101.00% | ||||||
2022 Senior Notes | On or after May 1, 2017 | |||||||
Borrowings | |||||||
Redemption price percentage | 105.438% | ||||||
Notes Payable | |||||||
Borrowings | |||||||
Deferred financing costs | $ 5,949 | ||||||
Interest expense | $ 1,013 | 1,065 | |||||
Repayment frequency | semi-annual installments | ||||||
Repayment installments | 16 | ||||||
Maximum borrowing capacity | $ 41,964 | ||||||
Interest rate description | six-month LIBOR | ||||||
Line of credit facility amount outstanding | $ 31,109 | ||||||
Hidronave S.A. loan | |||||||
Borrowings | |||||||
Interest rate | 6.00% | ||||||
Repayment frequency | monthly | ||||||
Repayment amount | $ 6 | ||||||
Loans Payable | $ 253 | 321 | $ 817 | ||||
Repayment terms | The loan is repayable in monthly installments of $6 each and the final repayment must occur prior to August 10, 2021. | ||||||
BBVA Loan | |||||||
Borrowings | |||||||
Loans Payable | $ 23,250 | 25,000 | |||||
Interest rate expressed in basis points | 3.25% | ||||||
Maximum borrowing capacity | $ 25,000 | ||||||
Interest rate description | LIBOR (180 days) plus 325 basis points | ||||||
Term Bank loan | |||||||
Borrowings | |||||||
Loans Payable | $ 13,300 | 0 | |||||
Term Bank loan | Two Product Tankers | |||||||
Borrowings | |||||||
Deferred financing costs | 95 | ||||||
Repayment installments | 20 | ||||||
Loans Payable | 13,300 | ||||||
Interest rate expressed in basis points | 3.15% | ||||||
Maximum borrowing capacity | $ 14,000 | ||||||
Interest rate description | LIBOR (90 days) plus 315 basis points | ||||||
Balloon payment | $ 7,000 | ||||||
Term Loan B Facility | |||||||
Borrowings | |||||||
Deferred financing costs | 4,331 | ||||||
Interest expense | 1,006 | ||||||
Loans Payable | 100,000 | $ 0 | |||||
Interest rate expressed in basis points | 4.75% | ||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Interest rate description | LIBOR plus 475 basis points | ||||||
Dividends Paid | 70,000 | ||||||
Line of credit facility amount outstanding | 100,000 | ||||||
Debt amortization percentage | 1.00% | ||||||
Number Of Vessels | 5 | ||||||
Term Loan B Facility | Navios Holdings | |||||||
Borrowings | |||||||
Dividends paid to Navios Holdings | $ 44,677 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ||||
Cash and cash equivalents - Book Value | $ 79,888 | $ 65,182 | $ 81,507 | $ 71,931 |
Cash and cash equivalents - Fair Value | 79,888 | 65,182 | ||
Resricted cash - Book Value | 0 | 2,900 | $ 0 | |
Restricted cash - Fair Value | 0 | 2,900 | ||
Note receivable, including current portion - Book Value | 818 | 0 | ||
Note receivable, including current portion - Fair Value | 818 | 0 | ||
Senior notes - Book Value | (369,260) | (368,180) | ||
Senior notes - Fair Value | (361,549) | (355,781) | ||
Term Loan B - Book Value | (95,669) | 0 | ||
Term Loan B - Fair Value | (101,563) | 0 | ||
Notes payable, including current portion - Book Value | (31,109) | (34,447) | ||
Notes payable, including current portion - Fair Value | (31,109) | (34,447) | ||
Capital lease obligations - Book Value | 0 | (17,617) | ||
Capital lease obligations - Fair Value | 0 | (17,617) | ||
Long-term debt, including current portion - Book Value | (36,708) | (25,321) | ||
Long-term debt, including current portion - Fair Value | $ (36,708) | $ (25,321) |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Measured on Nonrecurring Basis (Tables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Cash and cash equivalents | $ 79,888 | $ 65,182 |
Restricted cash | 0 | 2,900 |
Note receivable, including current portion | 818 | 0 |
Senior Notes | (361,549) | (355,781) |
Term Loan B | (101,563) | 0 |
Notes payable, including current portion | (31,109) | (34,447) |
Capital lease obligations | 0 | (17,617) |
Long-term debt | (36,708) | (25,321) |
Fair Value Measurements Non Recurring | Level I | ||
Fair Value Measurements | ||
Cash and cash equivalents | 79,888 | 65,182 |
Restricted cash | 2,900 | |
Note receivable, including current portion | 818 | |
Senior Notes | (361,549) | (355,781) |
Fair Value Measurements Non Recurring | Level II | ||
Fair Value Measurements | ||
Term Loan B | (101,563) | |
Notes payable, including current portion | (31,109) | (34,447) |
Capital lease obligations | $ (36,708) | (17,617) |
Long-term debt | $ (25,321) |
Time Charter, Voyage and Port69
Time Charter, Voyage and Port Terminal Expenses (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER EXPENSES [Abstract] | |||
Fuel | $ 10,471 | $ 11,839 | $ 13,901 |
Time charter | 1,564 | 1,521 | 1,307 |
Ports payroll and related costs | 7,971 | 6,304 | 5,657 |
Docking expenses | 3,272 | 3,287 | 3,299 |
Maritime and regulatory fees | 578 | 610 | 909 |
Towing expenses | 2,597 | 2,297 | 1,612 |
Other expenses | 7,164 | 6,281 | 6,879 |
Total | $ 33,617 | $ 32,139 | $ 33,564 |
Direct Vessel Expenses (Table)
Direct Vessel Expenses (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING EXPENSES [Abstract] | |||
Payroll and related costs | $ 41,231 | $ 41,443 | $ 52,026 |
Insurances | 3,534 | 4,149 | 4,088 |
Repairs and maintenance | 7,952 | 12,351 | 8,893 |
Lubricants | 736 | 1,046 | 899 |
Victualing | 1,739 | 1,973 | 1,995 |
Travel expenses | 3,343 | 3,608 | 3,484 |
Other expenses | 4,019 | 4,560 | 3,361 |
Total | $ 62,554 | $ 69,130 | $ 74,746 |
General and Administrative Ex71
General and Administrative Expenses (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
GENERAL AND ADMINISTRATIVE EXPENSES [Abstract] | |||
Payroll and related costs | $ 7,030 | $ 5,899 | $ 6,260 |
Professional fees | 3,998 | 3,946 | 3,734 |
Other expenses | 5,637 | 4,449 | 4,014 |
Total | $ 16,665 | $ 14,294 | $ 14,008 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Sep. 04, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies | ||||||
Guarantee and indemnity letter | Navios Logistics has issued a guarantee and indemnity letter that guarantees the performance by Petrolera San Antonio S.A. (a consolidated subsidiary) of all its obligations to Vitol S.A. up to $12,000. This guarantee expires on March 1, 2018. | |||||
Guarantee obligations | $ 12,000 | |||||
Restricted cash | 0 | $ 2,900 | $ 0 | |||
Other Income | ||||||
Commitments and Contingencies | ||||||
Gain from legal settlements | $ 1,157 | |||||
Dry Barges | ||||||
Commitments and Contingencies | ||||||
Contractual obligations | 486 | $ 1,115 | ||||
Construction of a river and estuary tanker | ||||||
Commitments and Contingencies | ||||||
Contractual obligations | 14,854 | € 12,400 | ||||
Vale International S.A. | ||||||
Commitments and Contingencies | ||||||
Proceeds from legal settlements | 21,500 | |||||
Letter of credit | ||||||
Commitments and Contingencies | ||||||
Restricted cash | $ 0 | |||||
Acquisition of three pushboats | ||||||
Commitments and Contingencies | ||||||
Contractual obligations | 580 | |||||
Construction of a river and estuary tanker | ||||||
Commitments and Contingencies | ||||||
Contractual obligations | $ 9,024 |
Income Taxes - Components of In
Income Taxes - Components of Income (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total (loss)/income before income taxes and noncontrolling interest | $ (363) | $ 11,139 | $ 18,687 |
Argentina | |||
Total (loss)/income before income taxes and noncontrolling interest | (6,496) | (789) | (14,031) |
Paraguay | |||
Total (loss)/income before income taxes and noncontrolling interest | (1,306) | (7,239) | 5,942 |
Uruguay | |||
Total (loss)/income before income taxes and noncontrolling interest | 36,931 | 44,432 | 49,465 |
Panama | |||
Total (loss)/income before income taxes and noncontrolling interest | (26,701) | (19,391) | (16,283) |
Marshall Islands | |||
Total (loss)/income before income taxes and noncontrolling interest | (2,894) | (6,404) | (6,716) |
Others | |||
Total (loss)/income before income taxes and noncontrolling interest | $ 103 | $ 530 | $ 310 |
Income Taxes - Benefit (Table)
Income Taxes - Benefit (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Total income tax benefit/(loss) | $ 3,468 | $ (982) | $ 3,551 |
Argentina | |||
Income Tax Examination [Line Items] | |||
Current | (194) | (211) | 1,947 |
Deferred | 3,966 | (333) | 2,028 |
Total income tax benefit/(loss) | (3,772) | 544 | (3,975) |
Paraguay | |||
Income Tax Examination [Line Items] | |||
Current | (99) | (162) | (214) |
Deferred | (205) | (276) | (210) |
Total income tax benefit/(loss) | $ 304 | $ 438 | $ 424 |
Income Taxes - Tax Benefit (Tab
Income Taxes - Tax Benefit (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of income tax benefit | |||
Loss before income taxes and noncontrolling interest | $ (363) | $ 11,139 | $ 18,687 |
Argentina | |||
Reconciliation of income tax benefit | |||
Loss before income taxes and noncontrolling interest | $ (6,496) | $ (789) | $ (14,031) |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Income before taxes at the statutory tax rate | $ 2,274 | $ 276 | $ 4,911 |
Permanent differences | 1,498 | (820) | (936) |
Income tax benefit/(loss) of the year | $ 3,772 | $ (544) | $ 3,975 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Future deductible differences | $ 1,082 | $ 316 |
Tax loss carry-forward | 260 | 1,199 |
Total deferred income tax assets | 1,342 | 1,515 |
Deferred income tax liabilities: | ||
Intangible assets | (4,548) | (7,222) |
Property, plant and equipment, net | (3,347) | (4,810) |
Other | (1,212) | (1,009) |
Total deferred income tax liabilities | (9,107) | (13,041) |
Net deferred income tax liabilities | $ (7,765) | $ (11,526) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||||
Income tax benefit/(expense) | $ (3,468) | $ 982 | $ (3,551) | ||
Tax reform | |||||
Income Tax Examination [Line Items] | |||||
Income tax benefit/(expense) | 2,837 | ||||
Non-deductible expense | 722 | ||||
Tax reform | Tax Asset | |||||
Income Tax Examination [Line Items] | |||||
Increase / (decrease) in derferred income tax | (168) | ||||
Tax reform | Tax Liability | |||||
Income Tax Examination [Line Items] | |||||
Income tax benefit/(expense) | $ 3,005 | ||||
Argentina | |||||
Income Tax Examination [Line Items] | |||||
Corporate income tax rate | 35.00% | 35.00% | 35.00% | ||
Income tax benefit/(expense) | $ 3,772 | $ (544) | $ 3,975 | ||
Argentina | Tax reform | |||||
Income Tax Examination [Line Items] | |||||
Corporate income tax rate | 25.00% | 30.00% | |||
Brazil | |||||
Income Tax Examination [Line Items] | |||||
Corporate income tax rate | 34.00% | ||||
Paraguay | |||||
Income Tax Examination [Line Items] | |||||
Corporate income tax rate | 10.00% | ||||
Income tax benefit/(expense) | $ (304) | $ (438) | $ (424) |
Leases - Future Minimum Revenue
Leases - Future Minimum Revenues (Table) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
LEASES [Abstract] | |
2,018 | $ 138,384 |
2,019 | 104,721 |
2,020 | 77,209 |
2,021 | 62,290 |
2,022 | 55,450 |
2023 and thereafter | 699,388 |
Total minimum revenue, net of commissions | $ 1,137,442 |
Leases - Future Minimum Commitm
Leases - Future Minimum Commitments (Tables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum commitments under lease obligations | |||
Rent expense for office space | $ 677 | $ 720 | $ 716 |
Office Space | |||
Future minimum commitments under lease obligations | |||
2,018 | 761 | ||
2,019 | 601 | ||
2,020 | 509 | ||
2,021 | 184 | ||
Total | 2,055 | ||
Chartered-in vessels | |||
Future minimum commitments under lease obligations | |||
2,018 | 182 | ||
2,019 | 182 | ||
2,020 | 31 | ||
Total | $ 395 |
Leases - Future Minimum Commi80
Leases - Future Minimum Commitments Chartered-in Vessels (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum commitments, net of commissions under chartered-in vessels | |||
Charter hire expense for chartered-in pushboats and barges | $ 1,564 | $ 1,521 | $ 1,307 |
Operating leases future minimum payments receivable | 1,137,442 | ||
River and estuary tanker | |||
Future minimum commitments, net of commissions under chartered-in vessels | |||
Operating leases future minimum payments receivable | $ 41,830 | ||
Term of future minimum receivables to be earned on non-cancellable contracts | 5 years |
Transactions with Related Par81
Transactions with Related Parties - Amounts (due to)/ From Affiliates (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts due to affiliate companies | ||
Due to affiliate companies | $ (265) | $ (54) |
Navios Holdings | ||
Amounts due to affiliate companies | ||
Due to affiliate companies | $ (265) | $ (54) |
Transactions with Related Par82
Transactions with Related Parties (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Amounts due to affiliate companies | |||
General and administrative fees | $ 16,665 | $ 14,294 | $ 14,008 |
Payments made during the period to acquire fixed assets | 9,932 | 4,262 | 7,881 |
Compensation under employment agreements | 7,030 | 5,899 | 6,260 |
Total general expenses | $ 5,637 | 4,449 | 4,014 |
Employment Agreements | |||
Amounts due to affiliate companies | |||
Period of the renewed employment agreement | 1 | ||
Days required for cancellation written notice for agreement | 90 | ||
Minimum | |||
Amounts due to affiliate companies | |||
Compensation under employment agreements | $ 280 | ||
Maximum | |||
Amounts due to affiliate companies | |||
Compensation under employment agreements | 340 | ||
Key Employees | |||
Amounts due to affiliate companies | |||
Compensation under employment agreements | $ 900 | 900 | 900 |
Navios Holdings | Administrative services agreement | |||
Amounts due to affiliate companies | |||
Duration of agreement | 5 years | ||
General and administrative fees | $ 1,000 | 1,000 | 760 |
Empresa Hotelera Argentina S.A. and Pit Jet S.A. | Lodging and travel services | |||
Amounts due to affiliate companies | |||
Amounts payable | 16 | 6 | |
Total general expenses | $ 51 | $ 29 | $ 34 |
Share Capital (Details)
Share Capital (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 04, 2010 |
SHARE CAPITAL [Abstract] | ||||
Authorized share capital, shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock par value | $ 1 | $ 1 | $ 1 | $ 0.01 |
Common stock, shares issued | 20,000 | 20,000 | 20,000 |
Restrictions On Distribution 84
Restrictions On Distribution Of Profits (Details) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS/(LOSS) PER COMMON SHARE [Abstract] | |
Retained earnings appropriated, percentage | 5.00% |
Legal reserve over the capital of subsidiaries, percentage | 20.00% |
Earnings_(Loss) per Common Sh85
Earnings/(Loss) per Common Share - Basic and Diluted (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EARNINGS/(LOSS) PER COMMON SHARE [Abstract] | |||
Net income attributable to Navios Logistics' stockholders | $ 3,105 | $ 10,157 | $ 22,238 |
Weighted average number of shares, basic and diluted | 20,000 | 20,000 | 20,000 |
Net earnings per share from continuing operations: | |||
Basic and diluted | $ 0.16 | $ 0.51 | $ 1.11 |
Segment Information - Results p
Segment Information - Results per Segment (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information | |||
Time charter, voyage and port terminal revenues | $ 180,044 | $ 190,218 | $ 211,701 |
Sales of products | 32,572 | 30,118 | 39,347 |
Time charter, voyage and port terminal expenses | (33,617) | (32,139) | (33,564) |
Direct vessel expenses | (62,554) | (69,130) | (74,746) |
Cost of products sold | (30,717) | (27,450) | (36,811) |
Depreciation of vessels, port terminals and other fixed assets | (23,322) | (23,105) | (24,146) |
Amortization of intangible assets | (3,543) | (3,523) | (3,823) |
Amortization of deferred drydock and special survey costs | (7,928) | (6,870) | (7,280) |
General and administrative expenses | (16,665) | (14,294) | (14,008) |
Provision of losses on accounts receivable | (569) | (1,304) | 52 |
Taxes other than income taxes | (9,018) | (9,740) | (11,976) |
Interest expense and finance cost, net | (28,347) | (24,240) | (27,082) |
Interest income | 238 | 815 | 569 |
Gain on sale of assets | 1,064 | 0 | 0 |
Foreign exchange differences, net | (726) | 1,722 | 219 |
Other income, net | 2,725 | 61 | 235 |
Income/(loss) before income taxes | (363) | 11,139 | 18,687 |
Income tax benefit/(expense) | 3,468 | (982) | 3,551 |
Net income/(loss) | 3,105 | 10,157 | 22,238 |
Port Terminal Business Segment | |||
Segment Reporting Information | |||
Time charter, voyage and port terminal revenues | 53,526 | 36,268 | 42,382 |
Sales of products | 32,572 | 30,118 | 39,347 |
Time charter, voyage and port terminal expenses | (14,432) | (12,340) | (11,784) |
Direct vessel expenses | 0 | 0 | 0 |
Cost of products sold | (30,717) | (27,450) | (36,811) |
Depreciation of vessels, port terminals and other fixed assets | (5,238) | (3,533) | (3,431) |
Amortization of intangible assets | (729) | (706) | (1,006) |
Amortization of deferred drydock and special survey costs | 0 | 0 | 0 |
General and administrative expenses | (3,778) | (2,646) | (2,661) |
Provision of losses on accounts receivable | 0 | 0 | 0 |
Taxes other than income taxes | 0 | 0 | 0 |
Interest expense and finance cost, net | (7,004) | (1,381) | (1,088) |
Interest income | 14 | 54 | 250 |
Gain on sale of assets | 0 | ||
Foreign exchange differences, net | (406) | (78) | (638) |
Other income, net | 16 | (98) | 72 |
Income/(loss) before income taxes | 23,824 | 18,208 | 24,632 |
Income tax benefit/(expense) | 0 | 0 | 0 |
Net income/(loss) | 23,824 | 18,208 | 24,632 |
Cabotage Business Segment | |||
Segment Reporting Information | |||
Time charter, voyage and port terminal revenues | 48,130 | 52,637 | 63,345 |
Sales of products | 0 | 0 | 0 |
Time charter, voyage and port terminal expenses | (1,866) | (2,098) | (2,659) |
Direct vessel expenses | (32,017) | (33,596) | (41,831) |
Cost of products sold | 0 | 0 | 0 |
Depreciation of vessels, port terminals and other fixed assets | (2,940) | (2,667) | (4,645) |
Amortization of intangible assets | 0 | 0 | 0 |
Amortization of deferred drydock and special survey costs | (5,148) | (3,765) | (4,810) |
General and administrative expenses | (1,718) | (1,193) | (1,128) |
Provision of losses on accounts receivable | 0 | 0 | 0 |
Taxes other than income taxes | (4,463) | (4,617) | (5,600) |
Interest expense and finance cost, net | (4,784) | (4,894) | (5,273) |
Interest income | 0 | 0 | 0 |
Gain on sale of assets | 0 | ||
Foreign exchange differences, net | 144 | 1,184 | 679 |
Other income, net | 0 | 0 | (450) |
Income/(loss) before income taxes | (4,662) | 991 | (2,372) |
Income tax benefit/(expense) | (1,199) | (1,457) | (785) |
Net income/(loss) | (5,861) | (466) | (3,157) |
Barge Business Segment | |||
Segment Reporting Information | |||
Time charter, voyage and port terminal revenues | 78,388 | 101,313 | 105,974 |
Sales of products | 0 | 0 | 0 |
Time charter, voyage and port terminal expenses | (17,319) | (17,701) | (19,121) |
Direct vessel expenses | (30,537) | (35,534) | (32,915) |
Cost of products sold | 0 | 0 | 0 |
Depreciation of vessels, port terminals and other fixed assets | (15,144) | (16,905) | (16,070) |
Amortization of intangible assets | (2,814) | (2,817) | (2,817) |
Amortization of deferred drydock and special survey costs | (2,780) | (3,105) | (2,470) |
General and administrative expenses | (11,169) | (10,455) | (10,219) |
Provision of losses on accounts receivable | (569) | (1,304) | 52 |
Taxes other than income taxes | (4,555) | (5,123) | (6,376) |
Interest expense and finance cost, net | (16,559) | (16,973) | (16,982) |
Interest income | 224 | 761 | 319 |
Gain on sale of assets | 1,064 | ||
Foreign exchange differences, net | (464) | 616 | 178 |
Other income, net | 2,709 | 159 | 613 |
Income/(loss) before income taxes | (19,525) | (7,068) | 166 |
Income tax benefit/(expense) | 4,667 | 475 | 4,336 |
Net income/(loss) | $ (14,858) | (6,593) | 4,502 |
Unallocated interest | |||
Segment Reporting Information | |||
Time charter, voyage and port terminal revenues | 0 | 0 | |
Sales of products | 0 | 0 | |
Time charter, voyage and port terminal expenses | 0 | 0 | |
Direct vessel expenses | 0 | 0 | |
Cost of products sold | 0 | 0 | |
Depreciation of vessels, port terminals and other fixed assets | 0 | 0 | |
Amortization of intangible assets | 0 | 0 | |
Amortization of deferred drydock and special survey costs | 0 | 0 | |
General and administrative expenses | 0 | 0 | |
Provision of losses on accounts receivable | 0 | 0 | |
Taxes other than income taxes | 0 | 0 | |
Interest expense and finance cost, net | (992) | (3,739) | |
Interest income | 0 | 0 | |
Foreign exchange differences, net | 0 | 0 | |
Other income, net | 0 | 0 | |
Income/(loss) before income taxes | (992) | (3,739) | |
Income tax benefit/(expense) | 0 | 0 | |
Net income/(loss) | $ (992) | $ (3,739) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Total net book value of long-lived assets | $ 529,009 | $ 409,489 |
Total net book value of intangible assets | 60,008 | 63,551 |
Goodwill | 104,096 | 104,096 |
Deposits for vessels, port terminals and other fixed assets | 36,849 | 136,891 |
Barge/Cabotage Business Segment | ||
Total net book value of intangible assets | 17,745 | 20,561 |
Vessels, including constructions in progress | ||
Total net book value of long-lived assets | 344,847 | 341,496 |
Cabotage Business Segment | ||
Goodwill | 41,086 | 41,086 |
Barge Business Segment | ||
Goodwill | 40,868 | 40,868 |
Port Terminal Business Segment, including constructions in progress | ||
Total net book value of long-lived assets | 219,013 | 202,568 |
Total net book value of intangible assets | 42,263 | 42,990 |
Goodwill | $ 22,142 | $ 22,142 |
Oceangoing product tanker vessels | ||
Number of vessels | 6 | |
Self-propelled barges | ||
Number of vessels | 2 | |
Bunker Vessel | ||
Number of vessels | 1 |