Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | International Seaways, Inc. | |
Entity Central Index Key | 1,679,049 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,135,725 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 53,472 | $ 60,027 |
Voyage receivables, including unbilled of $49,578 and $54,701 | 50,696 | 58,187 |
Other receivables | 2,621 | 4,411 |
Inventories | 3,977 | 3,270 |
Prepaid expenses and other current assets | 9,781 | 5,897 |
Total Current Assets | 120,547 | 131,792 |
Restricted cash - non current | 37,714 | 10,579 |
Vessels and other property, less accumulated depreciation of $309,859 and $307,010 | 1,019,049 | 1,104,727 |
Deferred drydock expenditures, net | 26,014 | 30,528 |
Vessel held for sale, net | 17,940 | 5,108 |
Total Vessels, Deferred Drydock and Other Property | 1,063,003 | 1,140,363 |
Investments in and advances to affiliated companies | 384,024 | 378,894 |
Other assets | 7,184 | 2,856 |
Total Assets | 1,612,472 | 1,664,484 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 24,707 | 22,805 |
Payable to OSG | 34 | 367 |
Current installments of long-term debt | 20,625 | 24,063 |
Total Current Liabilities | 45,366 | 47,235 |
Long-term debt | 500,643 | 528,874 |
Other liabilities | 2,821 | 2,721 |
Total Liabilities | 548,830 | 578,830 |
Commitments and contingencies | ||
Equity: | ||
Capital - 100,000,000 no par value shares authorized; 29,123,331 and 29,089,865 shares issued and outstanding | 1,306,869 | 1,306,606 |
Accumulated deficit | (209,861) | (180,545) |
Stockholders Equity Subtotal | 1,097,008 | 1,126,061 |
Accumulated other comprehensive loss | (33,366) | (40,407) |
Total Equity | 1,063,642 | 1,085,654 |
Total Liabilities and Equity | $ 1,612,472 | $ 1,664,484 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Unbilled contracts receivable (in dollars) | $ 49,578 | $ 54,701 |
Vessels and other property, accumulated depreciation | $ 309,859 | $ 307,010 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 29,123,331 | 29,089,865 |
Common stock, shares, outstanding | 29,123,331 | 29,089,865 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Shipping Revenues: | ||
Pool revenues, includeing $12,769 and $5,714 from companies accounted for by the equity method | $ 35,514 | $ 49,773 |
Time and bareboat charter revenues | 7,913 | 17,350 |
Voyage charter revenues | 8,551 | 21,627 |
Shipping revenues | 51,978 | 88,750 |
Operating Expenses: | ||
Voyage expenses | 3,177 | 4,618 |
Vessel expenses | 36,658 | 33,728 |
Charter hire expenses | 8,623 | 11,351 |
Depreciation and amortization | 17,624 | 18,616 |
General and administrative | 6,029 | 6,274 |
Separation and transition costs | 735 | |
Loss on disposal of vessels and other property | 6,573 | |
Total operating expenses | 78,684 | 75,322 |
(Loss)/income from vessel operations | (26,706) | 13,428 |
Equity in income of affiliated companies | 8,340 | 13,606 |
Operating (loss)/income | (18,366) | 27,034 |
Other income | 679 | 204 |
(Loss)/income before interest expense and income taxes | (17,687) | 27,238 |
Interest expense | (11,621) | (9,167) |
(Loss)/income before income taxes | (29,308) | 18,071 |
Income tax provision | (8) | (4) |
Net (loss)/income | $ (29,316) | $ 18,067 |
Weighted Average Number of Common Shares Outstanding: | ||
Basic | 29,106,180 | 29,180,255 |
Diluted | 29,106,180 | 29,195,544 |
Per Share Amounts: | ||
Basic and diluted net (loss)/income per share | $ (1.01) | $ 0.62 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Pool revenues, received from companies accounted for by the equity method | $ 12,769 | $ 5,714 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net (Loss)/Income | $ (29,316) | $ 18,067 |
Other Comprehensive (Loss)/Income, net of tax: | ||
Net change in unrealized losses on cash flow hedges | 7,470 | 3,318 |
Defined benefit pension and other postretirement benefit plans: | ||
Net change in unrecognized prior service costs | (41) | (18) |
Net change in unrecognized actuarial losses | (388) | (179) |
Other Comprehensive Income, net of tax | 7,041 | 3,121 |
Comprehensive (Loss)/Income | $ (22,275) | $ 21,188 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net (Loss)/Income | $ (29,316) | $ 18,067 |
Items included in net income not affecting cash flows: | ||
Depreciation and amortization | 17,624 | 18,616 |
Amortization of debt discount and other deferred financing costs | 1,250 | 1,979 |
Stock compensation, non-cash | 629 | 740 |
Undistributed earnings of affiliated companies | (8,425) | (13,436) |
Other - net | 131 | |
Items included in net income related to investing and financing activities: | ||
Loss on disposal of vessels and other property | 6,573 | |
Cash distributions from affiliated companies | 6,212 | |
Payments for drydocking | (1,249) | (7,026) |
Vessel operations insurance claims proceeds | 1,061 | 5 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in receivables | 7,489 | (457) |
Decrease in payable to OSG | (333) | (628) |
Decrease in deferred revenue | (918) | (1,892) |
Net change in inventories, prepaid expenses and other current assets and accounts payable, accrued expense, and other current and long-term liabilities | (5,051) | (4,826) |
Net cash (used in)/provided by operating activities | (4,454) | 11,273 |
Cash Flows from Investing Activities: | ||
Expenditures for vessels and vessel improvements | (1,911) | (397) |
Proceeds from disposal of vessels and other property | 57,430 | |
Expenditures for other property | (126) | (26) |
Investments in and advances to affiliated companies | 869 | (74) |
Repayments of advances from joint venture investees | 2,488 | |
Net cash (used in)/provided by investing activities | 58,750 | (497) |
Cash Flows from Financing Activities: | ||
Payments on debt | (33,438) | (1,546) |
Cash paid to tax authority upon vesting of stock-based compensation | (278) | (164) |
Net cash used in financing activities | (33,716) | (1,710) |
Net increase in cash, cash equivalents and restricted cash | 20,580 | 9,066 |
Cash, cash equivalents and restricted cash at beginning of year | 70,606 | 92,001 |
Cash, cash equivalents and restricted cash at end of period | $ 91,186 | $ 101,067 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member]Restricted Stock [Member] | Common Stock [Member]Restricted Stock Units (RSUs) [Member] | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Total |
Balance, beginning at Dec. 31, 2016 | $ 1,306,236 | $ (74,457) | $ (52,267) | $ 1,179,512 | ||||
Net (Loss)/Income | 18,067 | 18,067 | ||||||
Other comprehensive income | 3,121 | 3,121 | ||||||
Forfeitures of vested restricted stock awards | (227) | (227) | ||||||
Compensation relating to stock option awards | 175 | 175 | ||||||
Compensation relating to restricted stock units or restricted stock awards | $ 226 | $ 339 | $ 226 | $ 339 | ||||
Balance, ending at Mar. 31, 2017 | 1,306,749 | (56,390) | (49,146) | 1,201,213 | ||||
Balance, beginning at Dec. 31, 2017 | 1,306,606 | (180,545) | (40,407) | 1,085,654 | ||||
Net (Loss)/Income | (29,316) | (29,316) | ||||||
Other comprehensive income | 7,041 | 7,041 | ||||||
Forfeitures of vested restricted stock awards | (366) | (366) | ||||||
Compensation relating to stock option awards | 183 | 183 | ||||||
Compensation relating to restricted stock units or restricted stock awards | $ 192 | $ 254 | $ 192 | $ 254 | ||||
Balance, ending at Mar. 31, 2018 | $ 1,306,869 | $ (209,861) | $ (33,366) | $ 1,063,642 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation: Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of International Seaways, Inc. (“INSW”), a Marshall Islands corporation, and its wholly owned subsidiaries. The Company owns and operates a fleet of 53 oceangoing vessels, including eight vessels that have been chartered-in under operating leases and six vessels in which the Company has interests through its joint venture s , engaged primarily in the transportation of crude oil and refined petroleum products in the International Flag trade through its wholly owned subsidiaries. Subsequent to March 31, 2018, the Company delivered a 2000-built VLCC and a 2004-built MR to buyers and entered into an agreement to sell a 2001-built Aframax , which is expected to be delivered to buyer s during the second quarter of 2018, (see Note 5, “Vessels”). Also, in conjunction with the signing of a stock purchase agreement (the “SPA”) to acquire the holding companies for six VLCCs from Euronav and subject to certain financing and other conditions, the Company expects to take delivery of the six VLCCs and to deliver a 2003-built ULCC to Euronav during the second quarter of 2018, (s ee Note 17 , “ Subsequent Events ” ). Unless the context indicates otherwise, references to “INSW”, the “Company”, “we”, “us” or “our”, refer to International Seaways, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles in the United States. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results have been included. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances and transactions within INSW have been eliminated. Investments in 50% or less owned affiliated companies, in which INSW exercises significant influence, are accounted for by the equity method. Certain prior year amounts have been reclassified to conform to the current year presentation as described in Note 2, “Significant Accounting Policies.” Dollar amounts, except per share amounts are in thousands. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 — Significant Accounting Policies: Cash, cash equivalents and Restricted cash — Interest-bearing deposits that are highly liquid investments and have a maturity of three months or less when purchased are included in cash and cash equivalents. Restricted cash of $37,714 and $10,579 as of March 31, 2018 and December 31, 2017, respectively, represents legally restricted cash relating to the 2017 Debt Facilities. Such restricted cash reserves are included in the non-current assets section of the consolidated balance sheet. The 2017 Debt Facilities stipulate that net cash proceeds of any INSW asset sale or casualty event exceeding $5,000 , are restricted and required to be reinvested in fixed or capital assets within twelve months of such sale or casualty event or used to repay the principal balance outstanding on the 2017 Debt Facilities. Concentration of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk are voyage receivables due from charterers and pools in which the Company participates. During the three months periods ended March 31, 2018 and 2017, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 96% and 89% of consolidated voyage receivables at March 31, 2018 and December 31, 2017, respectively. Deferred finance charges — Finance charges, excluding original issue discount, incurred in the arrangement and / or amendments resulting in the modification of debt are deferred and amortized to interest expense on either an effective interest method or straight-line basis over the life of the related debt. Unamortized deferred finance charges of $518 relating to the 2017 Revolver Facility are included in other assets in the condensed consolidated balance sheet as of March 31, 2018. Unamortized deferred financing charges of $21,858 relating to the 2017 Term Loan Facility and $23,626 relating to the 2017 Term Loan Facility and the 2017 Revolver Facility are included in long-term debt in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017, respectively. Interest expense relating to the amortization of deferred financing charges amounted to $656 and $1,936 for the three months ended March 31, 2018 and 2017, respectively. Revenue and expense recognition — On January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from Contracts with Customers (ASC 606) . The guidance provides a unified model to determine how revenue is recognized. In doing so, the Company makes judgments includ ing identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation. Revenues are recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company’s contract revenues consist of revenues from time charters, bareboat charters, voyage charters and pool revenues. Revenues from time charters are accounted for as fixed rate operating leases with an embedded technical management service component and are recognized ratably over the rental periods of such charters. B areboat charters are accounted for as operating leases and the associated revenue is recognized ratably over the rental periods of such charters. Voyage charter s contain a lease component if the contract (i) specifies a specific vessel asset; and (ii) has terms that allow the charterer to exercise substantive decision-making rights, which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel is used. Voyage charter revenues and expenses are recognized ratably over the estimated length of each voyage. For a voyage charter which contains a lease component, revenue and expenses are recognized based on a lease commencement-to-discharge basis and the lease commencement date is the lat t er of discharge of the previous cargo or voyage charter contract signing . For voyage charter s that do not have a lease component, revenue and expenses are recognized based on a load-to-discharge basis. Accordingly, voyage expenses incurred during a vessel’s positioning voyage to a load port in order to serve a customer under a voyage charter not containing a lease are considered costs to fulfill a contract and are deferred and recognized ratably over the load-to-discharge portion of the contract. Under voyage charters, expenses such as fuel, port charges, canal tolls, cargo handling operations and brokerage commissions are paid by the Company whereas, under time and bareboat charters, such voyage costs are paid by the Company’s customers. For the Company’s vessels operating in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants on a time charter equivalent (“TCE”) basis in accordance with an agreed-upon formula. Accordingly, the Company accounts for its agreements with commercial pools as variable rate operating leases with an embedded technical management service component. For the pools in which the Company participates, management monitors, among other things, the relative proportion of the Company’s vessels operating in each of the pools to the total number of vessels in each of the respective pools, and assesses whether or not the Company’s participation interest in each of the pools is sufficiently significant so as to determine that the Company has effective control of the pool. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations , including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. As the Company’s performance obligations are services which are received and consumed by its customers as it performs such services , revenues are recognized over time proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. The minimum duration of services is less than one year for each of the Company’s current contracts . D emurrage earned during a voyage charter represents variable consideration . T he Company estimates demurrage at contract inception using either the expected value or most likely amount approaches. Such estimate is reviewed and updated over the term of the voyage charter contract. The Company has elected the practical expedient to expense costs to obtain a contract with a customer (e.g. broker commissions) as incurred rather than defer and amortize such costs as the amortization period would be expected to be one year or less. See Note 14, “Revenue,” for additional disclosures on revenue recognition and the impact of adopting ASC 606 on January 1, 2018. Recently Adopted Accounting Standards — In January 2017, the FASB issued ASU 2017-01 , Business Combinations (ASC 805), which revises the definition of a business and puts in place a new framework to assist entities in evaluating whether an acquired set of assets and activities should be accounted for as an acquisition of a business or as a group of assets. Under the current business combinations guidance, there are three elements of a business: inputs, processes, and outputs. The new framework adds an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set is not a business. The new framework also specifies the minimum required inputs and processes necessary to be a business. It removes the need to consider a market participant’s ability to replace missing elements when all of the inputs or processes that the seller used in operating a business were not obtained. What qualifies as an input and process remains substantially the same as in the prior guidance. While processes would typically be documented, the guidance clarifies that the intellectual capacity of an organized workforce could also qualify as a process. Administrative systems (e.g., billing, payroll) are typically not considered processes that significantly contribute to the creation of outputs. The new guidance narrows the definition of “outputs” to be consistent with how they are described in ASC 606. As a result, fewer sets will be considered to have outputs. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. Upon adoption of this standard, the Company concluded that the planned acquisition of six VLCC tankers (see Note 17 , “ Subsequent Events ”) should be accounted for as an acquisition of a group of assets as substantially all of the fair value of the gross assets to be acquired will be concentrated in vessel assets. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (ASC 718), which provides guidance in regards to a change to the terms or conditions of a share-based payment award. An entity is required to account for the effects of a modification unless all the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance is to be applied prospectively to an award modified on or after the adoption date. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The adoption of this accounting policy had no impact on the Company’s consolidated financial statements since there were no stock award modification s during the three months ended March 31, 2018. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASC 715), which requires that an employer classify and report the service cost component in the same line item or items in the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period and disclose by line item in the statement of operations the amount of net benefit cost that is included in the statement of operations. The other components of net benefit cost would be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. The standard is effective for interim and annual periods beginning after December 31, 2017. The standard requires application using a retrospective transition method and allows a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The adoption of this accounting standard resulted in the reclassification o f $118 of net actuarial gains and $202 of benefit obligation interest costs from the general and administrative expense line to t he other income and interest expense lines, respectively, on the condensed consolidated statements of operations for the three months ended March 31, 2017 . Net periodic pension costs comprised of $171 of net actuarial gains and $196 of benefit obligation interest costs, are included in the other income and interest expense lines, respectively, on the condensed consolidated statements of operations for the three months ended March 31, 2018. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The adoption of this accounting standard resulted in the inclusion of restricted cash of $10,579 at December 31, 2017 in the beginning-of-period amounts shown on the statement of cash flows for the three months ended March 31, 2018 . In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASC 230), which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic with respect to (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The standard is effective for interim and annual periods beginning after December 31, 2017. The guidance requires application using a retrospective transition method. We adopted the standard for classification of distributions received from equity method investees using the cumulative equity earnings approach, which required the retrospective reclassification of distributions received from certain affiliated companies accounted for by the equity method, from investing activities to operating activities. As a result, $2,488 of the total distributions of $8,700 received from certain affiliated companies accounted for by the equity method during the three months ended March 31, 2018 is presented as a cash inflow from investing activities while the balance of $6,212 is presented as a cash inflow from operating activities. There were no comparable cash distributions from equity method investees during the three months ended March 31, 2017. In addition, the adoption of this accounting standard resulted in the separate line presentation of $1,061 and $5 of insurance proceeds received for various claims arising from the normal operations of our vessel fleet, in the operating activities section of the condensed consolidated statement of cash flows for the three months ended March 31, 2018 and 2017, respectively . In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), a standard that supersedes virtually all of the existing revenue recognition guidance in U.S. GAAP. The standard establishes a five-step model that applies to revenue earned from a contract with a customer. The standard’s requirements also apply to the sale of some non-financial assets that are not part of an entity’s ordinary activities (e.g., sales of property or plant and equipment). Extensive disclosures are required, including disaggregation of total revenue, information about performance obligations, changes in contract asset and liability account balances between periods and key judgments and estimates. The FASB has issued several amendments to the standard, including clarification of the accounting for licenses of intellectual property and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard is effective for us beginning January 1, 2018 and we adopted the standard using the cumulative catch-up transition method. See Note 14, “Revenue,” for further information. Recently Issued Accounting Standards — In September 2017, the FASB issued ASU 2017-13, Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments , which allows certain public business entities (“PBEs”) that otherwise would not meet the definition of a public business entity except for a requirement to include its financial statements or financial information in another entity’s filings with the SEC, to elect to use non-PBE transition dates for the sole purpose of adopting ASU No. 2016-02, Leases (ASC 842), and ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606). Accordingly, all financial statements or financial information of the Company’s FSO and LNG joint ventures that may be included in the Company’s filings with the SEC pursuant to SEC Regulation S-X Rule 4-08(g), Summarized Financial Information of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons, and/or SEC Regulation S-X Rule 3-09, Separate Financial Statements of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons, will likely not reflect the adoptions of ASC 606 and ASC 842 until January 1, 2019 and January 1, 2020, respectively. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842), which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. Management is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. Management expects that the Company will recognize increases in reported amounts for property, plant and equipment and related lease liabilities upon adoption of the new standard. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | Note 3 — Earnings per Common Share: Basic earnings per common share is computed by dividing earnings, after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities. Participating securities are defined by ASC 260, Earnings Per Share , as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents and are included in the computation of earnings per share pursuant to the two-class method. There were 38,938 and 32,067 weighted average shares of unvested restricted common stock considered to be participating securities for the three months ended March 31, 2018 and 2017, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. As of March 31, 2018, there were 83,908 shares of restricted stock units and 275,830 stock options outstanding and considered to be potentially dilutive securities. The components of the calculation of basic earnings per share and diluted earnings per share are as follows: Three Months Ended March 31, 2018 2017 Net (loss)/income $ (29,316) $ 18,067 Weighted average common shares outstanding: Basic 29,106,180 29,180,255 Diluted 29,106,180 29,195,544 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, 2018 2017 Net (loss)/income allocated to: Common Stockholders $ (29,316) $ 18,047 Participating securities - 20 $ (29,316) $ 18,067 For the three months ended March 31, 2018 and 2017 earnings per share calculations, there were 0 and 15,289 dilutive equity awards outstanding, respectively. Awards of 379,902 and 198,730 for the three months ended March 31, 2018 and 2017, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive. |
Business and Segment Reporting
Business and Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Business and Segment Reporting [Abstract] | |
Business and Segment Reporting | Note 4 — Business and Segment Reporting: The Company has two reportable segments: Crude Tankers and Product Carriers. The joint ventures with two floating storage and offloading service vessels are included in the Crude Tankers Segment. The joint venture with four LNG Carriers is included in Other. Adjusted (loss)/income from vessel operations for segment purposes is defined as (loss)/income from vessel operations before general and administrative expenses, separation and transition costs and loss on disposal of vessels and other property. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s condensed consolidated financial statements. Information about the Company’s reportable segments as of and for the three months ended March 31, 2018 and 2017 follows: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2018: Shipping revenues $ 32,365 $ 19,613 $ - $ 51,978 Time charter equivalent revenues 29,220 19,581 - 48,801 Depreciation and amortization 12,873 4,718 33 17,624 Loss/(gain) on disposal of vessels and other property 9,988 (3,415) - 6,573 Adjusted (loss)/income from vessel operations (12,024) (2,411) 331 (14,104) Equity in income of affiliated companies 5,575 - 2,765 8,340 Investments in and advances to affiliated companies at March 31, 2018 257,782 14,620 111,622 384,024 Adjusted total assets at March 31, 2018 1,041,597 363,175 111,248 1,516,020 Expenditures for vessels and vessel improvements 1,564 347 - 1,911 Payments for drydockings 1,249 - - 1,249 Three months ended March 31, 2017: Shipping revenues $ 59,892 $ 28,858 $ - $ 88,750 Time charter equivalent revenues 56,045 28,087 - 84,132 Depreciation and amortization 13,047 5,536 33 18,616 Adjusted income from vessel operations 18,359 2,033 45 20,437 Equity in income of affiliated companies 9,915 - 3,691 13,606 Investments in and advances to affiliated companies at March 31, 2017 277,867 14,808 83,562 376,237 Adjusted total assets at March 31, 2017 1,075,115 419,757 83,188 1,578,060 Expenditures for vessels and vessel improvements 110 287 - 397 Payments for drydockings 5,297 1,729 - 7,026 Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, 2018 2017 Time charter equivalent revenues $ 48,801 $ 84,132 Add: Voyage expenses 3,177 4,618 Shipping revenues $ 51,978 $ 88,750 Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliations of adjusted (loss)/income from vessel operations of the segments to (loss)/income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, 2018 2017 Total adjusted (loss)/income from vessel operations of all segments $ (14,104) $ 20,437 General and administrative expenses (6,029) (6,274) Separation and transition costs - (735) Loss on disposal of vessels and other property (6,573) - Consolidated (loss)/income from vessel operations (26,706) 13,428 Equity in income of affiliated companies 8,340 13,606 Other income 679 204 Interest expense (11,621) (9,167) (Loss)/income before income taxes $ (29,308) $ 18,071 Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: As of March 31, 2018 2017 Total assets of all segments $ 1,516,020 $ 1,578,060 Corporate unrestricted cash and cash equivalents 53,472 101,067 Restricted cash 37,714 - Other unallocated amounts 5,266 4,202 Consolidated total assets $ 1,612,472 $ 1,683,329 |
Vessels
Vessels | 3 Months Ended |
Mar. 31, 2018 | |
Vessels [Abstract] | |
Vessels | Note 5 — Vessels: Vessel Impairments The Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2017 that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable as of March 31, 2018. Factors considered included declines in valuations during 2018 for vessels of certain sizes and ages , any negative changes in forecasted near term charter rates , and an increase in the likelihood that the Company will sell certain of its vessels before the end of their estimated useful lives in conjunction with the Company’s fleet renewal program . The Company concluded that as of March 31, 2018, the r e were no such factors that rose to the level of impairment trigger events requiring further considerations. We will continue to monitor these negative developments and if such declines continue for a protracted period of time or worsen, we will re-evaluate whether these changes in industry conditions constitute impairment triggers. Vessel Acquisitions and Deliveries In April 2018, the Company entered into an SPA to acquire the holding companies for six VLCC s including one 2015-built and five 2016-built , for a price of $434,000 . The Company’s obligation to consummate the transaction is subject to a number of conditions which are described in further detail in Note 17, “Subsequent Events . ” Vessel Sales During the first quarter of 2018 , the Company recognized a n et aggregate loss on disposal of vessels of $6,571 relating to (i) the sale of a 2002-built MR which was held - for - sale as of December 31, 2017; (ii) the sale of a 2004-built MR; and (iii) the sale and leaseback of two 2009-built Aframaxes. In March 2018, the Company entered into a memorandum of agreement for the sale of a 2000-built VLCC, which was delivered to its buyer during the second quarter of 2018. The 2000-built VLCC has been classified as vessel held - for - sale as of the end of January 2018. In April 2018, t he Company entered into memorand a of agreements for the sale s of a 2001-built Aframax and a 2004-built MR . Also, in conjunction with and subject to the closing of the SPA, the Company agreed to sell its 2003-built ULCC. T he 2004-built MR was delivered to its buyer s in April and the other vessels are expected to be delivered to their buyers during the second quarter of 2018. The Company expects to recognize a net aggregate gain on such sales. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments [Abstract] | |
Equity Method Investments | Note 6 — Equity Method Investments: Investments in affiliated companies include joint ventures accounted for using the equity method. As of March 31, 2018, the Company had an approximate 50% interest in three joint ventures. One joint venture operates four LNG carriers (the “LNG Joint Venture”). The other two joint ventures - TI Africa Limited (“TI Africa”) and TI Asia Limited (“TI Asia”) - converted two ULCCs to Floating Storage and Offloading Service vessels (collectively the “FSO Joint Venture”). The FSO Joint Venture had no outstanding debt as of March 31, 2018 and December 31, 2017 however on March 29, 2018, it executed an agreement on a $220,000 secured credit facility (the “ FSO Loan Agreement”). The FSO Loan Agreement is among TI Africa and TI Asia, as joint and several b orrowers, ABN AMRO Bank N.V. and ING Belgium SA/NV, as Lenders, Mandated Lead Arrangers and Swap Banks, and ING Bank N.V., as Agent and as Security Trustee. The FSO Loan Agreement provides for (i) a term loan of $110,000 (the “ FSO Term Loan”), which is repayable in scheduled quarterly installments over the course of the two service contracts for the FSO Asia and FSO Africa with North Oil Company, maturing in July 2022 and September 2022, respectively, and (ii) a revolving credit facility of $110,000 (the “ FSO Revolver”), which revolving credit commitment reduces quarterly over the course of the foregoing two service contracts. O n April 26, 2018 , t he FSO Joint Venture drew down and distributed the entire $110,000 of proceeds of the FSO Term Loan to INSW , which has guaranteed the FSO Term Loan and which expects to use the proceeds for general corporate purposes, including to fund partially the agreement to purchase six VLCCs from Euronav (See Note 17, “Subsequent Events”) . The FSO Joint Venture also borrowed the entire $110,000 available under the FSO Revolver and distributed the proceeds to Euronav on April 26, 2018 , which has guaranteed the FSO Revolver. The FSO Term Loan and the FSO Revolver are secured by, among other things, a first preferred vessel mortgage on the FSO Africa and FSO Asia, an assignment of the service contracts for the FSO Africa and FSO Asia and the aforementioned guarantees of the FSO Term Loan by INSW and the guarantee of the FSO Revolver by Euronav. The FSO Loan Agreement has a financial covenant that the Debt Service Cover Ratio (as defined in the agreement ) shall be equal or greater than 1.10 to 1.00 . Interest payable on the FSO Term Loan and on the FSO Revolver is three month, six month or twelve month LIBOR , as selected by the FSO Joint Venture , plus 2.00% . On April 30, 2018 , the FSO Joint Venture entered into swap transactions which fixed the interest rate on the FSO Term Loan at a blended rate of approximately 4.863% per annum, effective as of June 30, 2018. The FSO Joint Venture ha s agreed to pay a commitment fee (“ FSO Commitment Fee”) of 0.7% on any undrawn amount under the FSO Revolver. INSW has agreed to pay Euronav an amount equal to the first 0.3% of the 0.7% FSO Commitment Fee and, to the extent the FSO Revolver is fully drawn, to pay Euronav an amount equal to the first 0.3% of the amount of loan interest payable under the FSO Revolver. Investments in and advances to affiliated companies as reflected in the accompanying condensed consolidated balance sheet as of March 31, 2018 consisted of: FSO Joint Venture of $248,335 , LNG Joint Venture of $111,622 and Other of $24,067 (which primarily relates to working capital deposits that the Company maintains for commercial pools in which it participates). A condensed summary of the results of operations of the joint ventures follows: Three Months Ended March 31, 2018 2017 Shipping revenues $ 52,787 $ 60,969 Ship operating expenses (28,292) (26,195) Income from vessel operations 24,495 34,774 Other income 312 1,517 Interest expense (8,380) (9,960) Income tax provision (996) - Net income $ 15,431 $ 26,331 See Note 11, “Related Parties,” for additional disclosures on guarantees INSW has issued in favor of its joint venture partners, lenders and/or customers. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities ("VIEs") [Abstract] | |
Variable Interest Entities ("VIEs") | Note 7 — Variable Interest Entities (“VIEs”): As of March 31, 2018, the Company participates in seven commercial pools and three joint ventures. One of the pools and the two FSO joint ventures were determined to be VIEs. The Company is not considered a primary beneficiary of either the pool or the joint ventures. The following table presents the carrying amounts of assets and liabilities in the condensed consolidated balance sheet related to the VIEs as of March 31, 2018: Condensed Consolidated Balance Sheet Investments in Affiliated Companies $ 252,282 In accordance with accounting guidance, the Company evaluated its maximum exposure to loss related to these VIEs by assuming a complete loss of the Company’s investment in these VIEs. The table below compares the Company’s liability in the condensed consolidated balance sheet to the maximum exposure to loss at March 31, 2018: Condensed Consolidated Balance Sheet Maximum Exposure to Loss Other Liabilities $ - $ 252,282 In addition, as of March 31, 2018, the Company had approximately $14,349 of trade receivables from the pool that was determined to be a VIE. These trade receivables, which are included in voyage receivables in the accompanying condensed consolidated balance sheet, have been excluded from the above tables and the calculation of INSW’s maximum exposure to loss. The Company does not record the maximum exposure to loss as a liability because it does not believe that such a loss is probable of occurring as of March 31, 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures | Note 8 — Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures: 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 condensed consolidated balance sheet for interest-bearing deposits approximate their fair value. Debt— The fair value of debt is estimated based on quoted market prices. Interest rate swaps and caps— The fair values of interest rate swaps and caps are the estimated amounts that the Company would receive or pay to terminate the swaps or caps at the reporting date, which include adjustments for the counterparty’s or the Company’s credit risk, as appropriate, after taking into consideration any underlying collateral securing the swap or cap agreements. ASC 820, Fair Value Measurements and Disclosures , relating to fair value measurements defines fair value and established a framework for measuring fair value. The ASC 820 fair value hierarchy distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price. In addition, the fair value of assets and liabilities should include consideration of non-performance risk, which for the liabilities described below includes the Company's own credit risk. The levels of the fair value hierarchy established by ASC 820 are as follows: Level 1- Quoted prices in active markets for identical assets or liabilities Level 2- Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3- Inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: Fair Value Level 1 Level 2 March 31, 2018: Cash and cash equivalents (1) $ 91,186 $ 91,186 $ - 2017 Term Loan Facility (539,730) - (539,730) December 31, 2017: Cash and cash equivalents (1) $ 70,606 $ 70,606 $ - 2017 Term Loan Facility (550,689) - (550,689) 2017 Revolver Facility (30,227) - (30,227) (1) Includes non-current restricted cash of $37,714 and $10,579 at March 31, 2018 and December 31, 2017, respectively. Derivatives The Company manages its exposure to interest rate volatility risk by using derivative instruments. Interest Rate Risk The Company uses interest rate caps and swaps for the management of interest rate risk exposure. INSW is party to an interest rate cap agreement (“Interest Rate Cap”) with a major financial institution covering a notional amount of $300,000 to limit the floating interest rate exposure associated with the 2017 Term Loan. The Interest Rate Cap agreement is designated and qualified as a cash flow hedge and contain s no leverage features. The Interest Rate Cap ha s a cap rate of 2.5% through the termination date of December 31, 2020. Tabular disclosure of derivatives location For interest rate caps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take i nto account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty. Derivatives are recorded on a net basis by counterparty when a legal right of offset exists. The following table presents information with respect to the fair values of derivatives reflected in the March 31, 2018 and December 31, 2017 balance sheets on a gross basis by transaction: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount March 31, 2018: Derivatives designated as hedging instruments: Interest rate caps: Current portion Prepaid expenses and other current assets $ 93 Accounts payable, accrued expenses and other current liabilities $ - Long-term portion Other assets 1,820 Other liabilities - Total derivatives designated as hedging instruments $ 1,913 $ - December 31, 2017: Derivatives designated as hedging instruments: Interest rate caps: Current portion Prepaid expenses and other current assets $ 16 Accounts payable, accrued expenses and other current liabilities $ - Long-term portion Other assets 886 Other liabilities - Total derivatives designated as hedging instruments $ 902 $ - The following tables present information with respect to gains and losses on derivative positions reflected in the condensed consolidated statements of operations or in the condensed consolidated statements of other comprehensive (loss)/ income. The effect of cash flow hedging relationships recognized in other comprehensive income excluding amounts reclassified from accumulated other comprehensive loss (effective portion), including hedges of equity method investees, for the three months ended March 31, 2018 and 2017 follows: Three Months Ended March 31, 2018 2017 Interest rate swaps $ 3,854 $ (270) Interest rate cap 1,012 - Total $ 4,866 $ (270) The effect of cash flow hedging relationships on the unaudited condensed consolidated statement of operations is presented excluding hedges of equity method investees. The effect of INSW’s cash flow hedging relationships on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2018 and 2017 follows: Statement of Operations Effective Portion of Gain/(Loss) Reclassified from Accumulated Other For the three months ended Comprehensive Loss Ineffective Portion Amount of Amount of Location Gain/(Loss) Location Gain/(Loss) March 31, 2018: Interest rate cap Interest expense $ - Interest expense $ - Total $ - $ - March 31, 2017: Interest rate cap Interest expense $ (131) Interest expense $ - Total $ (131) $ - See Note 13, “Accumulated Other Comprehensive Loss,” for disclosures relating to the impact of derivative instruments on accumulated other comprehensive loss. Fair Value Hierarchy The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis (excluding investments in affiliated companies): Fair Value Level 1 Level 2 Assets/(Liabilities) at March 31, 2018: Derivative Assets (interest rate cap) $ 1,913 $ - $ 1,913 (1) Assets/(Liabilities) at December 31, 2017 Derivative Assets (interest rate cap) $ 902 $ - $ 902 (1) (1) For interest rate caps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt [Abstract] | |
Debt | Note 9 — Debt: Debt consists of the following: March 31, December 31, 2018 2017 2017 Term Loan, due 2022, net of unamortized discount and deferred costs of $21,857 and $23,074 $ 521,268 $ 523,489 2017 Revolver Facility, net of unamortized deferred finance costs of $552 - 29,448 521,268 552,937 Less current portion (20,625) (24,063) Long-term portion $ 500,643 $ 528,874 Capitalized terms used hereafter have the meaning given in these condensed consolidated financial statements or in the respective transaction documents referred to below, including subsequent amendments thereto. 2017 Debt Facilities The 2017 Debt Facilities include a revolving credit facility of $50,000 (the “2017 Revolver Facility”) and (ii) a term loan of $550,000 (the “2017 Term Loan Facility” and together with the 2017 Revolver Facility, the “2017 Debt Facilities”) . The 2017 Debt Facilities are secured by a first lien on substantially all of the assets of the Administrative Borrower and certain of its subsidiaries. The 2017 Term Loan Facility matures on June 22, 2022 , and the 2017 Revolver Facility matures on December 22, 2021 . The maturity dates for the 2017 Debt Facilities are subject to acceleration upon the occurrence of certain events (as described in the credit agreement). On March 21, 2018, the $30,000 outstanding balance under the 2017 Revolver Facility was repaid in full using proceeds from the sale of vessels sold during December 2017 and the first quarter of 2018. The 2017 Term Loan Facility amortizes in quarterly installments equal to 0.625% of the original principal amount of the loan for the first four quarterly installments and equal to 1.25% of the original principal amount of the loan for all quarterly installments thereafter. The 2017 Term Loan Facility is subject to additional mandatory annual prepayments in an aggregate principal amount of 50% of Excess Cash Flow, as defined in the credit agreement. Management estimated that it will have no Excess Cash Flow under the 2017 Term Loan Facility for the year ended December 31, 2018 based on the actual results of the three months ended March 31, 2018 and the projection for the remainder of 2018. Accordingly, there is currently no mandatory prepayment expected during the first quarter of 201 9 . As set forth in the 2017 Debt Facilities credit agreement, the 2017 Debt Facilities contain certain restrictions relating to new borrowings and INSW’s ability to receive cash dividends, loans or advances from ISOC and its subsidiaries that are Restricted Subsidiaries. As of March 31, 2018, permitted cash dividends that can be distributed to INSW by ISOC under the 2017 Term Loan Facility was $15,000 . The 2017 Debt Facilities have covenants to maintain the aggregate Fair Market Value (as defined in the credit agreement) of the Collateral Vessels at greater than or equal to $300,000 at the end of each fiscal quarter and to ensure that at any time, the outstanding principal amounts of the 2017 Debt Facilities and certain other secured indebtedness permitted under credit agreement minus the amount of unrestricted cash and cash equivalents does not exceed 65% of the aggregate Fair Market Value of the Collateral Vessels plus the Fair Market Value of certain joint venture equity interests. The Company had substantial headroom under this covenant as of March 31, 2018, with an estimated ratio of 45% . Interest Expense Total interest expense, including amortization of issuance and deferred financing costs (for additional information related to deferred financing costs see Note 2, “Significant Accounting Policies”), commitment, administrative and other fees for the 2017 Debt Facilities and the INSW Facilities (which were terminated in accordance with their terms on June 22, 2017) for the three months ended March 31, 2018 and 2017 was $11,361 and $8,735 , respectively. Interest paid for the 2017 Debt Facilities and INSW Facilities for the three months ended March 31, 2018 and 2017 was $9,958 and $6,699 , respectively. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Taxes [Abstract] | |
Taxes | Note 10 — Taxes: The Company derives substantially all of its gross income from the use and operation of vessels in international commerce. The Company’s entities that own and operate vessels are primarily domiciled in the Marshall Islands, which do not impose income tax on shipping operations. The Company also has or had subsidiaries in various jurisdictions that perform administrative, commercial or technical management functions. These subsidiaries are subject to income tax based on the services performed in countries in which their offices are located; current and deferred income taxes are recorded accordingly. A substantial portion of income earned by the Company is not subject to income tax. With respect to subsidiaries not subject to income tax in their respective countries of incorporation, no deferred taxes are provided for the temporary differences in the bases of the underlying assets and liabilities for tax and accounting purposes. As of March 31, 2018, the Company believes it will qualify for an exemption from U.S. federal income taxes under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations for 201 8 , so long as less than 50 percent of the total value of the Company’s stock is held by one or more shareholders who own 5% or more of the Company’s stock for more than half of the days of 2018. The Marshall Islands impose tonnage taxes, which are assessed on the tonnage of certain of the Company’s vessels. These tonnage taxes are included in vessel expenses in the accompanying condensed consolidated statements of operations. As of March 31, 2018, and December 31, 2017, the Company has recognized a reserve for uncertain tax positions of $150 and $153 , respectively, and accrued interest of $56 and $51 , respectively, in noncurrent other liabilities in the accompanying condensed consolidated balance sheets. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Parties [Abstract] | |
Related Parties | Note 11 — Related Parties: Transition Services Agreement and Other Spin-off Related Activity During the three months ended March 31, 2017, INSW earned fees totaling $55 for services provided to it former parent, Overseas Shipholding Group, Inc. (“ OSG ”) and incurred fees totaling $529 for services received from OSG including INSW’s share of the compensation costs of former OSG corporate employees providing services to one or both companies during the defined transitional period, which ended on June 30, 2017. Payable to OSG aggregating $34 as of March 31, 2018 was related to a guarantee provided by OSG as described below. Payables to OSG aggregating $367 as of December 31, 2017 w ere primarily in relation to the spin-related agreements (Transition Services, Separation and Distribution and Employee Matters Agreements) between INSW and OSG and were paid in full during the first quarter of 2018. Guarantees The FSO Joint Venture is a party to a number of contracts: (a) the FSO Joint Venture is an obligor pursuant to a guarantee facility agreement dated as of July 14, 2017, by and among, the FSO Joint Venture, ING Belgium NV/SA, as issuing bank, and Euronav and INSW, as guarantors (the ‘‘Guarantee Facility’’); (b) the FSO Joint Venture is party to two service contracts with NOC (the ‘‘NOC Service Contracts’’) and (c) the FSO Joint Venture is a borrower under a $220,000 secured credit facility by and among TI Africa and TI Asia, as joint and several borrowers, ABN AMRO Bank N.V. and ING Belgium SA/NV, as Lenders, Mandated Lead Arrangers and Swap Banks, and ING Bank N.V., as Agent and as Security Trustee. INSW severally guarantees the obligations of the FSO Joint Venture pursuant to the Guarantee Facility and severally guaranteed the obligations of the FSO Joint Venture to Maersk Oil Qatar AS (“MOQ”) under the MOQ service contracts, which contracts were novated to NOC in July 2017 (the ‘‘MOQ Guarantee’’) and severally guarantees the obligations of the FSO Joint Venture under the NOC Service Contracts. In addition, INSW continues the MOQ Guarantee for the period ended on the novation date of the service contracts for MOQ, which period will end when the Qatari authorities determine that the FSO Joint Venture has paid all Qatari taxes owed by the FSO Joint Venture under such service contracts for tax periods through the novation date. The FSO Joint Venture drew down on a $220,000 credit facility in April 2018 (See Note 6, “Equity Method Investments”). The Company provided a guarantee for the $110,000 FSO T erm L oan portion of the facility, which amortizes over the remaining terms of the NOC Service Contracts , which expire in July 2022 and September 2022. INSW’s g uarantee of the FSO Term Loan has financial covenants that provide (i) INSW’ s Liquid Assets shall not be less than the higher of $50 million and 5% of Total Indebtedness of INSW , (ii) INSW shall have Cash of at least $30 million and (iii) INSW is in compliance with the Loan to Value Test (as such capitalized te rms are defined in the Company g uarantee or in the case of the Loan to Value Test, as defined in the credit agreement underlying the Company’s 2017 Debt Facilities (see Note 10, “Debt”). INSW maintains a guarantee in favor of Qatar Liquefied Gas Company Limited (2) (‘‘LNG Charterer’’) relating to certain LNG Tanker Time Charter Party Agreements with the LNG Charterer and each of Overseas LNG H1 Corporation, Overseas LNG H2 Corporation, Overseas LNG S1 Corporation and Overseas LNG S2 Corporation (such agreements, the ‘‘LNG Charter Party Agreements,’’ and such guarantee, the ‘‘LNG Performance Guarantee’’). INSW will pay QGTC an annual fee of $100 until such time that QGTC ceases to provide a guarantee in favor of the LNG charterer relating to performance under the LNG Charter Party Agreements. OSG continues to provide a guarantee in favor of the LNG Charterer relating to the LNG Charter Party Agreements (such guarantees, the ‘‘OSG LNG Performance Guarantee’’). INSW will indemnify OSG for liabilities arising from the OSG LNG Performance Guarantee pursuant to the terms of the Separation and Distribution Agreement. In connection with the OSG LNG Performance Guarantee, INSW pays a $135 fee per year to OSG, which will increase to $145 per year in 2019 and will be terminated if OSG ceases to provide the OSG LNG Performance Guarantee. |
Capital Stock and Stock Compens
Capital Stock and Stock Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Capital Stock and Stock Compensation [Abstract] | |
Capital Stock and Stock Compensation | Note 12 — Capital Stock and Stock Compensation: The Company accounts for stock -based compensation expense in accordance with the fair value method required by ASC 718, Compensation – Stock Compensation . Such fair value method requires share - based payment transactions to be measured according to the fair value of the equity instruments issued. Information regarding share-based compensation awards granted by INSW during 2018 follows: Management Compensation - Restricted Stock Units and Stock Options There were no stock-based compensation awards granted during the three months ended March 31, 2018. Share Repurchases In connection with the settlement of vested restricted stock units, the Company repurchased 15,746 and 12,205 shares of common stock during the three months ended March 31, 2018 and 2017, respectively, at an average cost of $17.66 and $18.58 , respectively, per share (based on the market prices on the dates of vesting) from certain members of management to cover withholding taxes. On May 2, 2017, the Company’s Board of Directors approved a resolution authorizing the Company to implement a stock repurchase program. Under the program, the Company may opportunistically repurchase up to $30,000 worth of shares of the Company’s common stock from time to time over a 24-month period, on the open market or otherwise, in such quantities, at such prices, in such manner and on such terms and conditions as management determines is in the best interests of the Company. Shares owned by employees, directors and other affiliates of the Company will not be eligible for repurchase under this program without further authorization from the Board. No shares were repurchased during the three months ended March 31, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 13 — Accumulated Other Comprehensive Loss: The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: March 31, December 31, 2018 2017 Unrealized losses on derivative instruments $ (21,519) $ (28,989) Items not yet recognized as a component of net periodic benefit cost (pension plans) (11,847) (11,418) $ (33,366) $ (40,407) The changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2018 and 2017 follow: Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Total Balance as of December 31, 2017 $ (28,989) $ (11,418) $ (40,407) Current period change, excluding amounts reclassified from accumulated other comprehensive loss 4,866 (429) 4,437 Amounts reclassified from accumulated other comprehensive loss 2,604 - 2,604 Total change in accumulated other comprehensive loss 7,470 (429) 7,041 Balance as of March 31, 2018 $ (21,519) $ (11,847) $ (33,366) Balance as of December 31, 2016 $ (40,317) $ (11,950) $ (52,267) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (270) (197) (467) Amounts reclassified from accumulated other comprehensive loss 3,588 - 3,588 Total change in accumulated other comprehensive loss 3,318 (197) 3,121 Balance as of March 31, 2017 $ (36,999) $ (12,147) $ (49,146) Amounts reclassified out of each component of accumulated other comprehensive loss follow: Three Months Ended March 31, Accumulated Other Comprehensive Loss Component 2018 2017 Statement of Operations Line Item Unrealized losses on cash flow hedges: Interest rate swaps entered into by the Company's Equity in income of equity method joint venture investees $ (2,604) $ (3,457) affiliated companies Interest rate caps entered into by the Company's subsidiaries - (131) Interest expense $ (2,604) $ (3,588) Total before and net of tax See Note 8, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” for additional disclosures relating to derivative instruments. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Revenue | Note 1 4 — Re venue : On January 1, 201 8 , the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were in progress as of January 1, 201 8 . Results for reporting periods beginning after January 1, 201 8 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. Upon adoption of ASC 606, the timing and recognition of earnings from the pool arrangements and time charter/bareboat charter-out contracts to which the Company is party did not change sign ificantly from previous practice. D epending on whether or not the underlying voyage charter has been determined to be a service only contract or a lease co ntract with a service component, th ere may be a change in the timing of revenue recognition under voyage charter contracts . Such change in timing of revenue recognition may have a material impact on the Company’s consolidated financial statements, depending on the number of voyage charters that are in progress at a reporting period end . A s of December 31, 2017, only one of the Company’s vessels was operating on a voyage charter. A review of the terms of the voyage charter agreement resulted in the determination that it was a short-term lease contract because the charterer had substantive decision-making rights with respect to the load and discharge ports. We concluded there was no material cumulative catch up adjustment for this contract as the adoption of ASC 606 did not materially change the timing or the amount of the non-lease component of the revenue recognized ratably between contract signing date in November 2017 and the discharge of cargo in January 2018. As a result, there was no cumulative catch up adjustment recognized on January 1, 2018 . The adoption of ASC 606 had no impact to revenues for the three months ended March 31, 2018 as there was no voyage charter in progress as of March 31, 2018 . Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. See Note 2, “Significant Accounting Policies,” for additional detail on the Company’s accounting polic ies regarding revenue recognition and costs to obtain or fulfill a contract . Disaggregation of R evenue For purposes of determining the standalone selling price of the vessel lease and technical management service components of the Company’s contracts with customers , the Company concluded that the r esidual a pproach would be the most appropriate method to use given that vessel lease rates are highly variable depending on shipping market conditions, the duration of such charters , and the age of the vessel. The Company believes that the standalone transaction price attributable to the technical management service component is more readily determinable than the price of the lease component and, accordingly, the service component is estimated using observable data (such as fees charged by third-party technical managers) and the residual transaction price is attributed to the vessel lease . The following table presents the Company’s revenue disaggregated by revenue source for the three months ended March 31, 2018. Crude Product Tankers Carriers Other Totals Three months ended March 31, 2018: Pool revenues Vessel lease component $ 3,874 $ 4,988 $ - $ 8,862 Technical management services component 12,526 14,126 - 26,652 Time and bareboat charter revenues Vessel lease component 2,276 495 - 2,771 Technical management services component 5,142 - - 5,142 Voyage charter revenues Vessel lease component 2,680 4 - 2,684 Technical management services component 768 - - 768 Lightering services component 5,099 - - 5,099 Total shipping revenues $ 32,365 $ 19,613 $ - $ 51,978 Contract B alances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers , and s ignificant changes in contract assets and liabilities balances . Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2018 $ 3,486 $ 54,701 $ (1,775) Closing balance as of March 31, 2018 1,118 49,578 (999) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ - $ - $ 918 We receive payments f rom customers based on a distribution schedule, as established in our contracts. Contract asset s relate to our conditional right to consideration for our completed performance under contracts and are recogniz ed when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under contract s and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed, which is expected to take place in 2018. Performance o bligations All of the Company's performance obligations, and associated revenue, are generally transferred to customers over time . The expected duration of services is less than one year. Revenues from performance obligations satisfied in previous periods aggregating $290 was recognized during the three months ended March 31, 2018 and related to: (i) pool adjustments; (ii) change in estimate of performance obligations related to voyage charters; and (iii) off hire adjustments related to time and bareboat charters. Cost s to O btain or F ulfill a C ontract As of March 31, 2018, there were no unamortized deferred costs of obtaining or fulfilling a contract. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Leases | Note 15 — Leases: 1. Charters-in: As of March 31, 2018, INSW had commitments to charter in six MR and two Aframax vessels. All of the charters-in, of which four are bareboat charters with expiry dates ranging from May 2018 to March 2024 and four are time charters with expiry dates ranging from June 2018 to July 2018, are accounted for as operating leases. In April 2018, the Company executed addendums to the aforementioned time charters-in, extending their expiry to dates ranging from January 2019 to July 2019. Lease expense relating to charters-in is included in charter hire expenses in the condensed consolidated statements of operations. The future minimum commitments and related number of operating days under these operating leases are as follows: Bareboat Charters-in: At March 31, 2018 Amount Operating Days 2018 $ 5,443 658 2019 6,278 730 2020 6,295 732 2021 6,278 730 2022 6,278 730 Thereafter 6,828 794 Net minimum lease payments $ 37,400 4,374 Time Charters-in: At March 31, 2018 Amount Operating Days 2018 $ 7,941 1,011 Net minimum lease payments $ 7,941 1,011 The future minimum commitments for time charters-in exclude amounts with respect to vessels chartered-in where the duration of the charter was one year or less at inception but include amounts with respect to workboats employed in the Crude Tankers Lightering business which are cancellable upon 180 days’ notice. Time charters-in commitments have been reduced to reflect estimated days that the vessels will not be available for employment due to drydock because INSW does not pay charter hire when time chartered-in vessels are not available for its use. Certain of the charters in the above tables provide INSW with renewal and purchase options. 2. Charters-out: At March 31, 2018, the future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable bareboat and time charters and the related revenue days (revenue days represent calendar days, less days that vessels are not available for employment due to repairs, drydock or lay-up) are as follows: Time Charters-out: At March 31, 2018 Amount Revenue Days 2018 $ 7,383 691 Future minimum revenues $ 7,383 691 Future minimum revenues do not include (1) the Company’s share of time charters entered into by the pools in which it participates, and (2) the Company’s share of time charters entered into by the joint ventures, which the Company accounts for under the equity method. Revenues from a time charter are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the minimum future charter revenues, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Contingencies [Abstract] | |
Contingencies | Note 16 — Contingencies: INSW’s policy for recording legal costs related to contingencies is to expense such legal costs as incurred. Multi-Employer Plans The Merchant Navy Officers Pension Fund (“MNOPF”) is a multi-employer defined benefit pension plan covering British crew members that served as officers on board INSW’s vessels (as well as vessels of other owners). The trustees of the plan have indicated that, under the terms of the High Court ruling in 2005, which established the liability of past employers to fund the deficit on the Post 1978 section of MNOPF, calls for further contributions may be required if additional actuarial deficits arise or if other employers liable for contributions are not able to pay their share in the future. As the amount of any such assessment cannot currently be reasonably estimated, no reserves have been recorded for this contingency in INSW’s condensed consolidated financial statements as of March 31, 2018. The next deficit valuation is due March 31, 2019. The Merchant Navy Ratings Pension Fund (“MNRPF”) is a multi-employer defined benefit pension plan covering British crew members that served as ratings (seamen) on board INSW’s vessels (as well as vessels of other owners) more than 20 years ago. Participating employers include current employers, historic employers that have made voluntary contributions, and historic employers such as INSW that have made no deficit contributions. Calls for contributions may be required if additional actuarial deficits arise or if other employers liable for contributions are unable to pay their share in the future. Based on the latest estimated deficit valuation using a measurement date of March 31, 2017, which was distributed to employers in February 2018, INSW recorded a reserve of £241 ($ 337 ) for a potential assessment by the trustees of the MNRPF as of March 31, 2018. The Company expects to make a deficit payment in the second half of 2018. Galveston Accident In late September 2017, an industrial accident at a leased facility in Galveston resulted in fatalities to two temporary employees. In accordance with law, an investigation of the accident is currently underway by the Occupational Safety and Health Administration and local law enforcement. In addition, lawsuits relating to the accident, each of which claims damages in excess of $25,000 were filed in state court in Texas (Harris County District Court) and identified a subsidiary of the Company as one of several defendants. The lawsuits have been settled as to most of the original defendants, with the exception of the subsidiary, and the remaining disputes were removed to federal court in Texas (Southern District) in January 2018. The subsidiary has filed its answer to those complaints, generally denying the allegations and stating certain affirmative defenses, and has separately filed a motion for declaratory judgment in federal court in Texas (Southern District) seeking judgment that it does not owe contractual indemnification obligations to certain of the other original defendants. The Company intends to vigorously defend these suits. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. Accordingly, the Company is currently unable to predict the ultimate timing or outcome of, or to reasonably estimate the possible loss or a range of possible loss resulting from, these matters. Legal Proceedings Arising in the Ordinary Course of Business The Company is a party, as plaintiff or defendant, to various suits in the ordinary course of business for monetary relief arising principally from personal injuries, wrongful death, collision or other casualty and to claims arising under charter parties and other contract disputes. A substantial majority of such personal injury, wrongful death, collision or other casualty claims against the Company are covered by insurance (subject to deductibles not material in amount). Each of the claims involves an amount which, in the opinion of management, should not be material to the Company’s financial position, results of operations and cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 1 7 — Subsequent Events : On April 18, 2018 , Seaways Holding Corporation (the “Purchaser”), a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of INSW (and together with Purchaser, “INSW”), entered into the SPA with Euronav NV (“Euronav”), a limited liability company incorporated under the laws of Belgium, and Euronav MI Inc. (“Seller”), a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of Euronav, pursuant to which Purchaser has agreed to purchase from Seller, on the terms and subject to the conditions in the SPA including those set out below, the outstanding shares of Gener8 Maritime Subsidiary VII, Inc., a corporation incorporated under the laws of the Marshalls Islands (“HoldCo”) and the sole member of six limited liability companies that in the aggregate hold title to six VLCC vessels (the “Vessels”) (such transaction, the “Transaction”) in connection with a transaction to be entered into between Euronav, Seller and Gener8 Maritime, Inc., a corporation incorporated under the laws of the Marshall Islands (“GNRT”). The Company has unconditionally and irrevocably agreed to guarantee the performance and payment of the obligations of Purchaser under the SPA. The purchase price for the Transaction is $434 ,000 , inclusive of any assumed debt. INSW will fund the Transaction with a combination of available liquidity, the assumption of all or part of the debt secured by the Vessels and/or new third-party financing. Euronav’s obligation to consummate the Transaction is subject to consummation of the transaction contemplated by the merger agreement between Euronav and GNRT (the “GNRT Agreement”). INSW ’ s obligation to consummate the Transaction is also subject to certain specified closing conditions including, but not limited to: · consummation of Euronav’s announced acquisition of GNRT on terms that do not materially impede, interfere with, prevent, delay or limit the economic benefit to INSW of the Transaction; · amendment of INSW’s existing term loan credit facility as required to consummate the Transaction, on terms and conditions reasonably acceptable to INSW ; · accuracy in all material respects of the representations and warranties, and compliance in all material respects with the covenants and agreements, made by Seller and Euronav in the SPA ; · receipt of any required regulatory approvals and third-party consents and approvals; and · other customary closing conditions. Each party to the SPA has agreed to use its reasonable best efforts to satisfy the foregoing conditions. The SPA also contains specified representations, warranties, and indemnification provisions of the parties customary for transactions of this type. Subject to the satisfaction or waiver of the foregoing conditions and the other terms and conditions contained in the SPA , the Transaction is expected to close in the second quarter of 2018. The SPA contains certain termination rights for the parties thereto in specified circumstances, including: (a) termination of the GNRT Agreement in accordance with its terms; (b) by either party for certain breaches of the SPA that are not cured; (c) by either party if the Transaction would violate any non-appealable final order, decree or judgment of any governmental authority permanently enjoining the Transaction; or (d) by either party if the Transaction is not consummated on or before June 30, 2018, provided that at such time the party seeking to terminate is not then in material breach of its obligations under the SPA . The SPA can also be terminated by mutual agreement of the parties. The SPA obligates Euronav to pay INSW a break-up fee equal to $5 ,000 if the SPA is terminated in certain circumstances, but only in situations where either the GNRT Agreement has been terminated, provided Euronav has received a break-up fee under the GNRT Agreement or Euronav’s acquisition of GNRT has been consummated but the Transaction has not. If INSW is unable to receive necessary consents from its lenders with respect to the Transaction, INSW has agreed, if Euronav so elects, to purchase the Vessels and their respective special purpose vehicles for the same purchase price (and may or may not assume the debt related to the Vessels), following which Euronav is expected to repurchase two of the 2016-built Vessels from INSW for aggregate consideration of $143,000 . Any such repurchase may also involve prepayment of all or part of the outstanding debt obligations associated with the Vessels and would be subject to certain other conditions, including definitive documentation. |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Cash, cash equivalents and Restricted cash | Cash, cash equivalents and Restricted cash — Interest-bearing deposits that are highly liquid investments and have a maturity of three months or less when purchased are included in cash and cash equivalents. Restricted cash of $37,714 and $10,579 as of March 31, 2018 and December 31, 2017, respectively, represents legally restricted cash relating to the 2017 Debt Facilities. Such restricted cash reserves are included in the non-current assets section of the consolidated balance sheet. The 2017 Debt Facilities stipulate that net cash proceeds of any INSW asset sale or casualty event exceeding $5,000 , are restricted and required to be reinvested in fixed or capital assets within twelve months of such sale or casualty event or used to repay the principal balance outstanding on the 2017 Debt Facilities. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk are voyage receivables due from charterers and pools in which the Company participates. During the three months periods ended March 31, 2018 and 2017, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 96% and 89% of consolidated voyage receivables at March 31, 2018 and December 31, 2017, respectively. |
Deferred finance charges | Deferred finance charges — Finance charges, excluding original issue discount, incurred in the arrangement and / or amendments resulting in the modification of debt are deferred and amortized to interest expense on either an effective interest method or straight-line basis over the life of the related debt. Unamortized deferred finance charges of $518 relating to the 2017 Revolver Facility are included in other assets in the condensed consolidated balance sheet as of March 31, 2018. Unamortized deferred financing charges of $21,858 relating to the 2017 Term Loan Facility and $23,626 relating to the 2017 Term Loan Facility and the 2017 Revolver Facility are included in long-term debt in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017, respectively. Interest expense relating to the amortization of deferred financing charges amounted to $656 and $1,936 for the three months ended March 31, 2018 and 2017, respectively. |
Revenue and expense recognition | Revenue and expense recognition — On January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from Contracts with Customers (ASC 606) . The guidance provides a unified model to determine how revenue is recognized. In doing so, the Company makes judgments includ ing identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation. Revenues are recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company’s contract revenues consist of revenues from time charters, bareboat charters, voyage charters and pool revenues. Revenues from time charters are accounted for as fixed rate operating leases with an embedded technical management service component and are recognized ratably over the rental periods of such charters. B areboat charters are accounted for as operating leases and the associated revenue is recognized ratably over the rental periods of such charters. Voyage charter s contain a lease component if the contract (i) specifies a specific vessel asset; and (ii) has terms that allow the charterer to exercise substantive decision-making rights, which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel is used. Voyage charter revenues and expenses are recognized ratably over the estimated length of each voyage. For a voyage charter which contains a lease component, revenue and expenses are recognized based on a lease commencement-to-discharge basis and the lease commencement date is the lat t er of discharge of the previous cargo or voyage charter contract signing . For voyage charter s that do not have a lease component, revenue and expenses are recognized based on a load-to-discharge basis. Accordingly, voyage expenses incurred during a vessel’s positioning voyage to a load port in order to serve a customer under a voyage charter not containing a lease are considered costs to fulfill a contract and are deferred and recognized ratably over the load-to-discharge portion of the contract. Under voyage charters, expenses such as fuel, port charges, canal tolls, cargo handling operations and brokerage commissions are paid by the Company whereas, under time and bareboat charters, such voyage costs are paid by the Company’s customers. For the Company’s vessels operating in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants on a time charter equivalent (“TCE”) basis in accordance with an agreed-upon formula. Accordingly, the Company accounts for its agreements with commercial pools as variable rate operating leases with an embedded technical management service component. For the pools in which the Company participates, management monitors, among other things, the relative proportion of the Company’s vessels operating in each of the pools to the total number of vessels in each of the respective pools, and assesses whether or not the Company’s participation interest in each of the pools is sufficiently significant so as to determine that the Company has effective control of the pool. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations , including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. As the Company’s performance obligations are services which are received and consumed by its customers as it performs such services , revenues are recognized over time proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. The minimum duration of services is less than one year for each of the Company’s current contracts . D emurrage earned during a voyage charter represents variable consideration . T he Company estimates demurrage at contract inception using either the expected value or most likely amount approaches. Such estimate is reviewed and updated over the term of the voyage charter contract. The Company has elected the practical expedient to expense costs to obtain a contract with a customer (e.g. broker commissions) as incurred rather than defer and amortize such costs as the amortization period would be expected to be one year or less. See Note 14, “Revenue,” for additional disclosures on revenue recognition and the impact of adopting ASC 606 on January 1, 2018. |
Recently adopted / issued accounting standards | Recently Adopted Accounting Standards — In January 2017, the FASB issued ASU 2017-01 , Business Combinations (ASC 805), which revises the definition of a business and puts in place a new framework to assist entities in evaluating whether an acquired set of assets and activities should be accounted for as an acquisition of a business or as a group of assets. Under the current business combinations guidance, there are three elements of a business: inputs, processes, and outputs. The new framework adds an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set is not a business. The new framework also specifies the minimum required inputs and processes necessary to be a business. It removes the need to consider a market participant’s ability to replace missing elements when all of the inputs or processes that the seller used in operating a business were not obtained. What qualifies as an input and process remains substantially the same as in the prior guidance. While processes would typically be documented, the guidance clarifies that the intellectual capacity of an organized workforce could also qualify as a process. Administrative systems (e.g., billing, payroll) are typically not considered processes that significantly contribute to the creation of outputs. The new guidance narrows the definition of “outputs” to be consistent with how they are described in ASC 606. As a result, fewer sets will be considered to have outputs. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. Upon adoption of this standard, the Company concluded that the planned acquisition of six VLCC tankers (see Note 17 , “ Subsequent Events ”) should be accounted for as an acquisition of a group of assets as substantially all of the fair value of the gross assets to be acquired will be concentrated in vessel assets. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (ASC 718), which provides guidance in regards to a change to the terms or conditions of a share-based payment award. An entity is required to account for the effects of a modification unless all the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance is to be applied prospectively to an award modified on or after the adoption date. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The adoption of this accounting policy had no impact on the Company’s consolidated financial statements since there were no stock award modification s during the three months ended March 31, 2018. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASC 715), which requires that an employer classify and report the service cost component in the same line item or items in the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period and disclose by line item in the statement of operations the amount of net benefit cost that is included in the statement of operations. The other components of net benefit cost would be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. The standard is effective for interim and annual periods beginning after December 31, 2017. The standard requires application using a retrospective transition method and allows a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The adoption of this accounting standard resulted in the reclassification o f $118 of net actuarial gains and $202 of benefit obligation interest costs from the general and administrative expense line to t he other income and interest expense lines, respectively, on the condensed consolidated statements of operations for the three months ended March 31, 2017 . Net periodic pension costs comprised of $171 of net actuarial gains and $196 of benefit obligation interest costs, are included in the other income and interest expense lines, respectively, on the condensed consolidated statements of operations for the three months ended March 31, 2018. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The adoption of this accounting standard resulted in the inclusion of restricted cash of $10,579 at December 31, 2017 in the beginning-of-period amounts shown on the statement of cash flows for the three months ended March 31, 2018 . In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASC 230), which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic with respect to (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The standard is effective for interim and annual periods beginning after December 31, 2017. The guidance requires application using a retrospective transition method. We adopted the standard for classification of distributions received from equity method investees using the cumulative equity earnings approach, which required the retrospective reclassification of distributions received from certain affiliated companies accounted for by the equity method, from investing activities to operating activities. As a result, $2,488 of the total distributions of $8,700 received from certain affiliated companies accounted for by the equity method during the three months ended March 31, 2018 is presented as a cash inflow from investing activities while the balance of $6,212 is presented as a cash inflow from operating activities. There were no comparable cash distributions from equity method investees during the three months ended March 31, 2017. In addition, the adoption of this accounting standard resulted in the separate line presentation of $1,061 and $5 of insurance proceeds received for various claims arising from the normal operations of our vessel fleet, in the operating activities section of the condensed consolidated statement of cash flows for the three months ended March 31, 2018 and 2017, respectively . In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), a standard that supersedes virtually all of the existing revenue recognition guidance in U.S. GAAP. The standard establishes a five-step model that applies to revenue earned from a contract with a customer. The standard’s requirements also apply to the sale of some non-financial assets that are not part of an entity’s ordinary activities (e.g., sales of property or plant and equipment). Extensive disclosures are required, including disaggregation of total revenue, information about performance obligations, changes in contract asset and liability account balances between periods and key judgments and estimates. The FASB has issued several amendments to the standard, including clarification of the accounting for licenses of intellectual property and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard is effective for us beginning January 1, 2018 and we adopted the standard using the cumulative catch-up transition method. See Note 14, “Revenue,” for further information. Recently Issued Accounting Standards — In September 2017, the FASB issued ASU 2017-13, Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments , which allows certain public business entities (“PBEs”) that otherwise would not meet the definition of a public business entity except for a requirement to include its financial statements or financial information in another entity’s filings with the SEC, to elect to use non-PBE transition dates for the sole purpose of adopting ASU No. 2016-02, Leases (ASC 842), and ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606). Accordingly, all financial statements or financial information of the Company’s FSO and LNG joint ventures that may be included in the Company’s filings with the SEC pursuant to SEC Regulation S-X Rule 4-08(g), Summarized Financial Information of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons, and/or SEC Regulation S-X Rule 3-09, Separate Financial Statements of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons, will likely not reflect the adoptions of ASC 606 and ASC 842 until January 1, 2019 and January 1, 2020, respectively. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842), which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. Management is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. Management expects that the Company will recognize increases in reported amounts for property, plant and equipment and related lease liabilities upon adoption of the new standard. |
Contingencies (Policy)
Contingencies (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Contingencies [Abstract] | |
Legal costs | INSW’s policy for recording legal costs related to contingencies is to expense such legal costs as incurred. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per Common Share [Abstract] | |
Components of Calculation of Earnings Per Share | The components of the calculation of basic earnings per share and diluted earnings per share are as follows: Three Months Ended March 31, 2018 2017 Net (loss)/income $ (29,316) $ 18,067 Weighted average common shares outstanding: Basic 29,106,180 29,180,255 Diluted 29,106,180 29,195,544 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, 2018 2017 Net (loss)/income allocated to: Common Stockholders $ (29,316) $ 18,047 Participating securities - 20 $ (29,316) $ 18,067 |
Business and Segment Reporting
Business and Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business and Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company’s reportable segments as of and for the three months ended March 31, 2018 and 2017 follows: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2018: Shipping revenues $ 32,365 $ 19,613 $ - $ 51,978 Time charter equivalent revenues 29,220 19,581 - 48,801 Depreciation and amortization 12,873 4,718 33 17,624 Loss/(gain) on disposal of vessels and other property 9,988 (3,415) - 6,573 Adjusted (loss)/income from vessel operations (12,024) (2,411) 331 (14,104) Equity in income of affiliated companies 5,575 - 2,765 8,340 Investments in and advances to affiliated companies at March 31, 2018 257,782 14,620 111,622 384,024 Adjusted total assets at March 31, 2018 1,041,597 363,175 111,248 1,516,020 Expenditures for vessels and vessel improvements 1,564 347 - 1,911 Payments for drydockings 1,249 - - 1,249 Three months ended March 31, 2017: Shipping revenues $ 59,892 $ 28,858 $ - $ 88,750 Time charter equivalent revenues 56,045 28,087 - 84,132 Depreciation and amortization 13,047 5,536 33 18,616 Adjusted income from vessel operations 18,359 2,033 45 20,437 Equity in income of affiliated companies 9,915 - 3,691 13,606 Investments in and advances to affiliated companies at March 31, 2017 277,867 14,808 83,562 376,237 Adjusted total assets at March 31, 2017 1,075,115 419,757 83,188 1,578,060 Expenditures for vessels and vessel improvements 110 287 - 397 Payments for drydockings 5,297 1,729 - 7,026 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, 2018 2017 Time charter equivalent revenues $ 48,801 $ 84,132 Add: Voyage expenses 3,177 4,618 Shipping revenues $ 51,978 $ 88,750 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliations of adjusted (loss)/income from vessel operations of the segments to (loss)/income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, 2018 2017 Total adjusted (loss)/income from vessel operations of all segments $ (14,104) $ 20,437 General and administrative expenses (6,029) (6,274) Separation and transition costs - (735) Loss on disposal of vessels and other property (6,573) - Consolidated (loss)/income from vessel operations (26,706) 13,428 Equity in income of affiliated companies 8,340 13,606 Other income 679 204 Interest expense (11,621) (9,167) (Loss)/income before income taxes $ (29,308) $ 18,071 |
Reconciliation of Assets from Segment to Consolidated | Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: As of March 31, 2018 2017 Total assets of all segments $ 1,516,020 $ 1,578,060 Corporate unrestricted cash and cash equivalents 53,472 101,067 Restricted cash 37,714 - Other unallocated amounts 5,266 4,202 Consolidated total assets $ 1,612,472 $ 1,683,329 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments [Abstract] | |
Results of Operations of Equity Method Investments | A condensed summary of the results of operations of the joint ventures follows: Three Months Ended March 31, 2018 2017 Shipping revenues $ 52,787 $ 60,969 Ship operating expenses (28,292) (26,195) Income from vessel operations 24,495 34,774 Other income 312 1,517 Interest expense (8,380) (9,960) Income tax provision (996) - Net income $ 15,431 $ 26,331 |
Variable Interest Entities ("31
Variable Interest Entities ("VIEs") (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities ("VIEs") [Abstract] | |
Schedule of Variable Interest Entities | The following table presents the carrying amounts of assets and liabilities in the condensed consolidated balance sheet related to the VIEs as of March 31, 2018: Condensed Consolidated Balance Sheet Investments in Affiliated Companies $ 252,282 |
Schedule of Variable Interest Entities Liability in Condensed Consolidated Balance Sheet to Maximum Exposure to Loss | The table below compares the Company’s liability in the condensed consolidated balance sheet to the maximum exposure to loss at March 31, 2018: Condensed Consolidated Balance Sheet Maximum Exposure to Loss Other Liabilities $ - $ 252,282 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: Fair Value Level 1 Level 2 March 31, 2018: Cash and cash equivalents (1) $ 91,186 $ 91,186 $ - 2017 Term Loan Facility (539,730) - (539,730) December 31, 2017: Cash and cash equivalents (1) $ 70,606 $ 70,606 $ - 2017 Term Loan Facility (550,689) - (550,689) 2017 Revolver Facility (30,227) - (30,227) (1) Includes non-current restricted cash of $37,714 and $10,579 at March 31, 2018 and December 31, 2017, respectively. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents information with respect to the fair values of derivatives reflected in the March 31, 2018 and December 31, 2017 balance sheets on a gross basis by transaction: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount March 31, 2018: Derivatives designated as hedging instruments: Interest rate caps: Current portion Prepaid expenses and other current assets $ 93 Accounts payable, accrued expenses and other current liabilities $ - Long-term portion Other assets 1,820 Other liabilities - Total derivatives designated as hedging instruments $ 1,913 $ - December 31, 2017: Derivatives designated as hedging instruments: Interest rate caps: Current portion Prepaid expenses and other current assets $ 16 Accounts payable, accrued expenses and other current liabilities $ - Long-term portion Other assets 886 Other liabilities - Total derivatives designated as hedging instruments $ 902 $ - |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The effect of cash flow hedging relationships recognized in other comprehensive income excluding amounts reclassified from accumulated other comprehensive loss (effective portion), including hedges of equity method investees, for the three months ended March 31, 2018 and 2017 follows: Three Months Ended March 31, 2018 2017 Interest rate swaps $ 3,854 $ (270) Interest rate cap 1,012 - Total $ 4,866 $ (270) The effect of cash flow hedging relationships on the unaudited condensed consolidated statement of operations is presented excluding hedges of equity method investees. The effect of INSW’s cash flow hedging relationships on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2018 and 2017 follows: Statement of Operations Effective Portion of Gain/(Loss) Reclassified from Accumulated Other For the three months ended Comprehensive Loss Ineffective Portion Amount of Amount of Location Gain/(Loss) Location Gain/(Loss) March 31, 2018: Interest rate cap Interest expense $ - Interest expense $ - Total $ - $ - March 31, 2017: Interest rate cap Interest expense $ (131) Interest expense $ - Total $ (131) $ - |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consists of the following: March 31, December 31, 2018 2017 2017 Term Loan, due 2022, net of unamortized discount and deferred costs of $21,857 and $23,074 $ 521,268 $ 523,489 2017 Revolver Facility, net of unamortized deferred finance costs of $552 - 29,448 521,268 552,937 Less current portion (20,625) (24,063) Long-term portion $ 500,643 $ 528,874 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Note 13 — Accumulated Other Comprehensive Loss: The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: March 31, December 31, 2018 2017 Unrealized losses on derivative instruments $ (21,519) $ (28,989) Items not yet recognized as a component of net periodic benefit cost (pension plans) (11,847) (11,418) $ (33,366) $ (40,407) The changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2018 and 2017 follow: Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Total Balance as of December 31, 2017 $ (28,989) $ (11,418) $ (40,407) Current period change, excluding amounts reclassified from accumulated other comprehensive loss 4,866 (429) 4,437 Amounts reclassified from accumulated other comprehensive loss 2,604 - 2,604 Total change in accumulated other comprehensive loss 7,470 (429) 7,041 Balance as of March 31, 2018 $ (21,519) $ (11,847) $ (33,366) Balance as of December 31, 2016 $ (40,317) $ (11,950) $ (52,267) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (270) (197) (467) Amounts reclassified from accumulated other comprehensive loss 3,588 - 3,588 Total change in accumulated other comprehensive loss 3,318 (197) 3,121 Balance as of March 31, 2017 $ (36,999) $ (12,147) $ (49,146) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified out of each component of accumulated other comprehensive loss follow: Three Months Ended March 31, Accumulated Other Comprehensive Loss Component 2018 2017 Statement of Operations Line Item Unrealized losses on cash flow hedges: Interest rate swaps entered into by the Company's Equity in income of equity method joint venture investees $ (2,604) $ (3,457) affiliated companies Interest rate caps entered into by the Company's subsidiaries - (131) Interest expense $ (2,604) $ (3,588) Total before and net of tax |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Schedule of Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by revenue source for the three months ended March 31, 2018. Crude Product Tankers Carriers Other Totals Three months ended March 31, 2018: Pool revenues Vessel lease component $ 3,874 $ 4,988 $ - $ 8,862 Technical management services component 12,526 14,126 - 26,652 Time and bareboat charter revenues Vessel lease component 2,276 495 - 2,771 Technical management services component 5,142 - - 5,142 Voyage charter revenues Vessel lease component 2,680 4 - 2,684 Technical management services component 768 - - 768 Lightering services component 5,099 - - 5,099 Total shipping revenues $ 32,365 $ 19,613 $ - $ 51,978 |
Schedule of Contract Related Receivables, Assets and Liabilities with Customers | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers , and s ignificant changes in contract assets and liabilities balances . Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2018 $ 3,486 $ 54,701 $ (1,775) Closing balance as of March 31, 2018 1,118 49,578 (999) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ - $ - $ 918 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Charters-Out [Member] | |
Lease [Abstract] | |
Operating Leases of Lessee Disclosure | At March 31, 2018, the future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable bareboat and time charters and the related revenue days (revenue days represent calendar days, less days that vessels are not available for employment due to repairs, drydock or lay-up) are as follows: Time Charters-out: At March 31, 2018 Amount Revenue Days 2018 $ 7,383 691 Future minimum revenues $ 7,383 691 |
Property Subject to Operating Lease [Member] | Bareboat Charters-In [Member] | |
Lease [Abstract] | |
Schedule of Property Subject to or Available for Operating Lease | The future minimum commitments and related number of operating days under these operating leases are as follows: Bareboat Charters-in: At March 31, 2018 Amount Operating Days 2018 $ 5,443 658 2019 6,278 730 2020 6,295 732 2021 6,278 730 2022 6,278 730 Thereafter 6,828 794 Net minimum lease payments $ 37,400 4,374 |
Property Subject to Operating Lease [Member] | Time Charters-In [Member] | |
Lease [Abstract] | |
Schedule of Property Subject to or Available for Operating Lease | Time Charters-in: At March 31, 2018 Amount Operating Days 2018 $ 7,941 1,011 Net minimum lease payments $ 7,941 1,011 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | Mar. 31, 2018property |
Vessel/Fleet [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 53 |
Charter In Vessels [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 8 |
Vessels with Interest In [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 6 |
Significant Accounting Polici38
Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash and cash equivalents, noncurrent | $ 37,714 | $ 10,579 | |
Amortization of financing costs | 656 | $ 1,936 | |
Cash paid to tax authority upon vesting of stock-based compensation | 278 | $ 164 | |
Increase in cash and cash equivalent | 20,580 | 9,066 | |
Repayments of advances from joint venture investees | 2,488 | ||
Aggregate distributions from affiliates, equity method investment | 8,700 | ||
Vessel operations insurance claims proceeds | 1,061 | 5 | |
Accounting Standards Update 2017-07 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net actuarial gain | 171 | 118 | |
Defined benefit plan, interest cost | 196 | 202 | |
Accounting Standards Update 2016-15 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Equity method distributions, operating activities | 6,212 | ||
Vessel operations insurance claims proceeds | 1,061 | $ 5 | |
INSW Facilities [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Debt instrument, convenant threshold related to net cash proceeds from asset sales | $ 5,000 | ||
Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 96.00% | 89.00% | |
Term Loan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred finance costs, gross | $ 21,858 | $ 23,626 | |
Revolving Credit Facility [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred finance costs, gross | $ 518 |
Earnings per Common Share (Narr
Earnings per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive awards | 0 | 15,289 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Participating securities allocated a portion of income | 38,938 | 32,067 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 83,908 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 275,830 | |
Antidilutive securities excluded from computation of earnings per share, amount | 379,902 | 198,730 |
Earnings per Common Share (Calc
Earnings per Common Share (Calculation of EPS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Common Share [Abstract] | ||
Net (Loss)/Income | $ (29,316) | $ 18,067 |
Weighted average common shares outstanding: | ||
Basic | 29,106,180 | 29,180,255 |
Diluted | 29,106,180 | 29,195,544 |
Earnings per Common Share (Reco
Earnings per Common Share (Reconciliation of Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Common Share [Abstract] | ||
Common Stockholders | $ (29,316) | $ 18,047 |
Participating securities | 20 | |
Net (Loss)/Income | $ (29,316) | $ 18,067 |
Business and Segment Reportin42
Business and Segment Reporting (Reportable Segments Information) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Shipping revenues | $ 51,978 | $ 88,750 |
Time charter equivalent revenues | 48,801 | 84,132 |
Depreciation and amortization | 17,624 | 18,616 |
Loss/(gain) on disposal of vessels and other property, including impairments | 6,573 | |
Adjusted income/(loss) from vessel operations | (14,104) | 20,437 |
Equity in income of affiliated companies | 8,340 | 13,606 |
Investments in and advances to affiliated companies | 384,024 | 376,237 |
Adjusted total assets | 1,516,020 | 1,578,060 |
Expenditures for vessels and vessel improvements | 1,911 | 397 |
Payments for drydockings | 1,249 | 7,026 |
International Crude Tankers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Shipping revenues | 32,365 | 59,892 |
Time charter equivalent revenues | 29,220 | 56,045 |
Depreciation and amortization | 12,873 | 13,047 |
Loss/(gain) on disposal of vessels and other property, including impairments | 9,988 | |
Adjusted income/(loss) from vessel operations | (12,024) | 18,359 |
Equity in income of affiliated companies | 5,575 | 9,915 |
Investments in and advances to affiliated companies | 257,782 | 277,867 |
Adjusted total assets | 1,041,597 | 1,075,115 |
Expenditures for vessels and vessel improvements | 1,564 | 110 |
Payments for drydockings | 1,249 | 5,297 |
International Product Carriers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Shipping revenues | 19,613 | 28,858 |
Time charter equivalent revenues | 19,581 | 28,087 |
Depreciation and amortization | 4,718 | 5,536 |
Loss/(gain) on disposal of vessels and other property, including impairments | (3,415) | |
Adjusted income/(loss) from vessel operations | (2,411) | 2,033 |
Investments in and advances to affiliated companies | 14,620 | 14,808 |
Adjusted total assets | 363,175 | 419,757 |
Expenditures for vessels and vessel improvements | 347 | 287 |
Payments for drydockings | 1,729 | |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 33 | 33 |
Adjusted income/(loss) from vessel operations | 331 | 45 |
Equity in income of affiliated companies | 2,765 | 3,691 |
Investments in and advances to affiliated companies | 111,622 | 83,562 |
Adjusted total assets | $ 111,248 | $ 83,188 |
Business and Segment Reportin43
Business and Segment Reporting (Reconciliation of Time Charter Revenue to Shipping Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business and Segment Reporting [Abstract] | ||
Time charter equivalent revenues | $ 48,801 | $ 84,132 |
Add: Voyage expenses | 3,177 | 4,618 |
Shipping revenues | $ 51,978 | $ 88,750 |
Business and Segment Reportin44
Business and Segment Reporting (Reconciliation of Income from Vessel Operations to Profit (Loss) Before Reorganization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business and Segment Reporting [Abstract] | ||
Total adjusted income from vessel operations of all segments | $ (14,104) | $ 20,437 |
General and administrative expenses | (6,029) | (6,274) |
Separation and transition costs | (735) | |
Loss on disposal of vessels and other property, including impairments | (6,573) | |
(Loss)/income from vessel operations | (26,706) | 13,428 |
Equity in income of affiliated companies | 8,340 | 13,606 |
Other income | 679 | 204 |
Interest expense | (11,621) | (9,167) |
(Loss)/income before income taxes | $ (29,308) | $ 18,071 |
Business and Segment Reportin45
Business and Segment Reporting (Reconcilation of Assets of Segments to Consolidated Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Business and Segment Reporting [Abstract] | |||
Adjusted total assets | $ 1,516,020 | $ 1,578,060 | |
Cash and cash equivalents | 53,472 | $ 60,027 | 101,067 |
Restricted cash | 37,714 | 10,579 | |
Other unallocated amounts | 5,266 | 4,202 | |
Consolidated Total Assets | $ 1,612,472 | $ 1,664,484 | $ 1,683,329 |
Vessels (Narrative) (Details)
Vessels (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Payments to acquire equipment | $ 1,911 | $ 397 | |
Gain (loss) on disposition of assets | 6,571 | ||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ (6,573) | ||
6 Very Large Crude Carriers [Member] | Subsequent Event [Member] | Scenario, Plan [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire equipment | $ 434,000 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) | Apr. 26, 2018USD ($) | Mar. 29, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018 | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | $ 384,024,000 | $ 378,894,000 | ||||
Other Equity Method Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | $ 24,067,000 | |||||
LNG and FSO Joint Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | |||||
LNG Joint Venture [Member] | Liquid Natural Gas Carrier Vessel [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | $ 111,622,000 | |||||
FSO Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Long term debt carrying amount | $ 0 | $ 0 | ||||
FSO Joint Venture [Member] | Secured Debt [Member] | FSO Loan Agreement [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 220,000,000 | |||||
Debt instrument covenant debt service cover ratio | 1.10 | |||||
FSO Joint Venture [Member] | Secured Debt [Member] | Medium-term Notes [Member] | FSO Term Loan [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 110,000,000 | |||||
FSO Joint Venture [Member] | Secured Debt [Member] | Revolving Credit Agreement [Member] | FSO Revolver [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 110,000,000 | |||||
Proceeds from long-term lines of credit | $ 110,000,000 | |||||
Debt instrument, description of variable rate basis | three month, six month or twelve month LIBOR | |||||
Debt instrument, basis spread on variable rate | 2.00% | |||||
Line of credit facility, commitment fee percentage | 0.70% | |||||
Line of credit facility, commitment fee percentage paid to affiliate | 0.30% | |||||
FSO Joint Venture [Member] | Interest Rate Swap [Member] | Secured Debt [Member] | Medium-term Notes [Member] | FSO Term Loan [Member] | Scenario, Forecast [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, fixed interest rate | 4.863% | |||||
FSO Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | $ 248,335,000 | |||||
Subsequent Event [Member] | FSO Joint Venture [Member] | Secured Debt [Member] | Medium-term Notes [Member] | FSO Term Loan [Member] | Financial Guarantee [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from long-term lines of credit | $ 110,000,000 |
Equity Method Investments (Resu
Equity Method Investments (Results of Operations of Equity Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Method Investments [Abstract] | ||
Shipping revenues | $ 52,787 | $ 60,969 |
Ship operating expenses | (28,292) | (26,195) |
Income from vessel operations | 24,495 | 34,774 |
Other income | 312 | 1,517 |
Interest expense | (8,380) | (9,960) |
Income tax provision | (996) | |
Net income | $ 15,431 | $ 26,331 |
Variable Interest Entities ("49
Variable Interest Entities ("VIEs") (Narrative) (Details) $ in Thousands | Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Accounts receivable, net, current | $ 50,696 | $ 58,187 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of joint ventures | item | 3 | |
Accounts receivable, net, current | $ 14,349 |
Variable Interest Entities ("50
Variable Interest Entities ("VIEs") (Balance Sheet Carrying Amounts Related to VIEs) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investments in Affiliated Companies | $ 384,024 | $ 376,237 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in Affiliated Companies | $ 252,282 |
Variable Interest Entities ("51
Variable Interest Entities ("VIEs") (Comparison of Liability to Maximum Exposure to Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Other Liabilities | $ 2,821 | $ 2,721 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 252,282 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Narrative) (Details) - Interest Rate Cap [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Fair Value Of Financial Instruments Derivatives And Fair Value Disclousres [Line Items] | |
Derivative, notional amount | $ 300,000 |
Derivative, cap interest rate | 2.50% |
Fair Value of Financial Instr53
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Fair Value of Financial Instruments Other Than Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents including restricted cash | $ 91,186 | $ 70,606 | $ 101,067 | $ 92,001 |
Restricted cash and cash equivalents, noncurrent | 37,714 | 10,579 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents including restricted cash | 91,186 | 70,606 | ||
Term Loan [Member] | INSW Facilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (539,730) | (550,689) | ||
Term Loan [Member] | INSW Facilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | $ (539,730) | (550,689) | ||
Revolver Facility [Member] | INSW Facilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (30,227) | |||
Revolver Facility [Member] | INSW Facilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | $ (30,227) |
Fair Value of Financial Instr54
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Fair Value of Derivative Instruments) (Details) - Interest Rate Cap [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Asset | $ 1,913 | $ 902 |
Other Noncurrent Assets [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 1,820 | 886 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | $ 93 | $ 16 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Effect of Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unrealized gain (loss) on derivative instruments | $ 4,866 | $ (270) |
Interest Rate Cap [Member] | ||
Unrealized gain (loss) on derivative instruments | 1,012 | |
Interest Rate Swap [Member] | ||
Unrealized gain (loss) on derivative instruments | $ 3,854 | $ (270) |
Fair Value of Financial Instr56
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Effect of Cash Flow Hedging Relationships on Consolidated Statements of Operations) (Details) - Interest Expense [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ (131) |
Interest Rate Cap [Member] | |
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ (131) |
Fair Value of Financial Instr57
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures (Fair Values of Assets and Liabilities Measured on Recurring Basis) (Details) - Interest Rate Cap [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative asset | $ 1,913 | $ 902 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative asset | $ 1,913 | $ 902 |
Debt (2017 Debt Facilities) (Na
Debt (2017 Debt Facilities) (Narrative) (Details) - USD ($) | Jun. 22, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Payments on debt | $ (33,438,000) | $ (1,546,000) | |
2017 Debt Facilities [Member] | Subsidiaries [Member] | International Seaways Operating Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date, description | The maturity dates for the 2017 Debt Facilities are subject to acceleration upon the occurrence of certain events (as described in the credit agreement). | ||
Debt instrument, interest rate terms | On March 21, 2018, the $30,000 outstanding balance under the 2017 Revolver Facility was repaid in full using proceeds from the sale of vessels sold during December 2017 and the first quarter of 2018. | ||
Debt instrument covenant on collateral fair market value | $ 300,000,000 | ||
Debt instrument convenant percentage benchmark against certain fair market values | 65.00% | ||
Debt Instrument Covenant Fair Market Value Of Collateral Percentage | 45.00% | ||
2017 Debt Facilities [Member] | Subsidiaries [Member] | Revolving Credit Facility [Member] | International Seaways Operating Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Line of credit facility, expiration date | Dec. 22, 2021 | ||
Term Loan [Member] | 2017 Debt Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, covenant related to base Available Amount | $ 15,000,000 | ||
Term Loan [Member] | 2017 Debt Facilities [Member] | Subsidiaries [Member] | International Seaways Operating Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 550,000,000 | ||
Debt instrument, maturity date | Jun. 22, 2022 | ||
Quarterly installment percentage of original principal amount for period one | 0.625% | ||
Quarterly installment percentage of original principal amount for period two | 1.25% | ||
Additional prepayment requirement percentage of Excess Cash flow | 50.00% |
Debt (INSW Facilities) (Narrati
Debt (INSW Facilities) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Payments on debt | $ (33,438) | $ (1,546) | |
International Seaways Exit Facilities and 2017 Debt Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Interest Expense | 11,361 | 8,735 | |
INSW Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, convenant threshold related to net cash proceeds from asset sales | 5,000 | ||
Interest Expense | 9,958 | $ 6,699 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Deferred finance costs, gross | 518 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Deferred finance costs, gross | 21,858 | $ 23,626 | |
Term Loan [Member] | 2017 Debt Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, covenant related to base Available Amount | $ 15,000 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less current portion | $ (20,625) | $ (24,063) |
Long-term portion | 500,643 | 528,874 |
2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Less current portion | (20,625) | (24,063) |
Unamortized discount and deferred finance costs | 21,857 | 23,074 |
Term Loan [Member] | 2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 521,268 | 523,489 |
Revolver Facility [Member] | 2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29,448 | |
Unamortized discount and deferred finance costs | 552 | |
Revolving Credit Facility [Member] | 2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 521,268 | $ 552,937 |
Taxes (Narrative) (Details)
Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Taxes [Abstract] | ||
Income tax examination, interest accrued | $ 56 | $ 51 |
Reserve for uncertain tax positions | $ 150 | $ 153 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) - USD ($) $ in Thousands | Mar. 29, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 |
Non-cash expense relating to stock compensation benefits | $ 629 | $ 740 | |||
Cash distributions from affiliated companies | 6,212 | ||||
Transition Services and Separation and Distribution and Employee Matters Agreements [Member] | |||||
Accounts payable, related parties, current | 34 | $ 367 | |||
Transition Services Agreement [Member] | |||||
Related party earned fees | 55 | ||||
Related party incurred fees | $ 529 | ||||
Subsidiaries [Member] | Qatar Gas Transport Company Limited Nakilat Joint Venture [Member] | |||||
Guarantor obligation fee | 100 | ||||
LNG Joint Venture [Member] | |||||
Annual fee to related party | $ 135 | ||||
LNG Joint Venture [Member] | Scenario, Forecast [Member] | |||||
Annual fee to related party | $ 145 | ||||
Secured Debt [Member] | Medium-term Notes [Member] | FSO Term Loan [Member] | FSO Joint Venture [Member] | |||||
Debt instrument covenant liquid assets minimal threshold amount | $ 50,000 | ||||
Debt instrument covenant total indebtednesss percentage | 5.00% | ||||
Debt instrument covenant cash on hand | $ 30,000 |
Capital Stock and Stock Compe63
Capital Stock and Stock Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | May 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program, authorized amount | $ 30,000,000 | ||
Purchases Of Treasury Stock | $ 0 | $ 0 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares paid for tax withholding for share based compensation | 15,746 | 12,205 | |
Shares paid for tax withholding for share based compensation, per share amount | $ 17.66 | $ 18.58 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Unrealized losses on derivative instruments | $ (21,519) | $ (28,989) |
Items not yet recognized as a component of net periodic benefit cost (pension plans) | (11,847) | (11,418) |
Accumulated other comprehensive loss | $ (33,366) | $ (40,407) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss (Changes in Components of AOCI, Net of Related Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Balance, beginning | $ 1,085,654 | $ 1,179,512 |
Other Comprehensive Income, net of tax | 7,041 | 3,121 |
Balance, ending | 1,063,642 | 1,201,213 |
Accumulated Other Comprehensive Loss [Member] | ||
Balance, beginning | (40,407) | (52,267) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | 4,437 | (467) |
Amounts reclassified from accumulated other comprehensive loss | 2,604 | 3,588 |
Other Comprehensive Income, net of tax | 7,041 | 3,121 |
Balance, ending | (33,366) | (49,146) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Balance, beginning | (28,989) | (40,317) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | 4,866 | (270) |
Amounts reclassified from accumulated other comprehensive loss | 2,604 | 3,588 |
Other Comprehensive Income, net of tax | 7,470 | 3,318 |
Balance, ending | (21,519) | (36,999) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance, beginning | (11,418) | (11,950) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | (429) | (197) |
Other Comprehensive Income, net of tax | (429) | (197) |
Balance, ending | $ (11,847) | $ (12,147) |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Loss (Amounts Reclassified out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unrealized losses on available-for-sale securities: | ||
Interest expense | $ (11,621) | $ (9,167) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Total reclassified out of AOCL, before tax | (2,604) | (3,588) |
Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Equity in income of affiliated companies | $ (2,604) | (3,457) |
Interest Rate Cap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Interest expense | $ (131) |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Capitalized contract cost, net | $ 0 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |
Contract with customer, performance obligation satisfied in previous period | $ 290,000 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | $ 51,978 |
Pooled Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 8,862 |
Pooled Services [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 26,652 |
Time and Bareboat Charter Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 2,771 |
Time and Bareboat Charter Services [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,142 |
Voyage Charter [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 2,684 |
Voyage Charter [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 768 |
Voyage Charter [Member] | Lightering Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,099 |
International Crude Tankers Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 32,365 |
International Crude Tankers Segment [Member] | Pooled Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 3,874 |
International Crude Tankers Segment [Member] | Pooled Services [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 12,526 |
International Crude Tankers Segment [Member] | Time and Bareboat Charter Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 2,276 |
International Crude Tankers Segment [Member] | Time and Bareboat Charter Services [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,142 |
International Crude Tankers Segment [Member] | Voyage Charter [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 2,680 |
International Crude Tankers Segment [Member] | Voyage Charter [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 768 |
International Crude Tankers Segment [Member] | Voyage Charter [Member] | Lightering Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,099 |
International Product Carriers Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 19,613 |
International Product Carriers Segment [Member] | Pooled Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 4,988 |
International Product Carriers Segment [Member] | Pooled Services [Member] | Technical Management Services Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 14,126 |
International Product Carriers Segment [Member] | Time and Bareboat Charter Services [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 495 |
International Product Carriers Segment [Member] | Voyage Charter [Member] | Asset Lease Component [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | $ 4 |
Revenue (Schedule of Contract R
Revenue (Schedule of Contract Related Receivables, Assets and Liabilities with Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2018 | |
Revenue [Abstract] | ||
Voyage receivables - receivables | $ 3,486 | $ 1,118 |
Contract asset (voyage receivables unbilled receivables) | 54,701 | 49,578 |
Contract liability (deferred revenues) | (1,775) | $ (999) |
Amounts included in contract liability at the beginning of the period | $ 918 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Mar. 31, 2018property |
Charter-In [Member] | |
Leases [Line Items] | |
Commitments to charter in vessels, Number of Units | 6 |
Leases (Bareboat and Time Chart
Leases (Bareboat and Time Charters-In) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Bareboat Charters-In [Member] | |
Leases [Line Items] | |
2,018 | $ 5,443 |
2,019 | 6,278 |
2,020 | 6,295 |
2,021 | 6,278 |
2,022 | 6,278 |
Thereafter | 6,828 |
Net minimum lease payments | $ 37,400 |
2018, operating days | 658 days |
2019, operating days | 730 days |
2020, operating days | 732 days |
2021, operating days | 730 days |
2022, operating days | 730 days |
Thereafter, operating days | 794 days |
Operating days, total | 4374 days |
Time Charters-In [Member] | |
Leases [Line Items] | |
2,018 | $ 7,941 |
Net minimum lease payments | $ 7,941 |
2018, operating days | 1011 days |
Operating days, total | 1011 days |
Leases (Future Minimum Revenues
Leases (Future Minimum Revenues on Charters-Out) (Details) - Charters-Out [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 7,383 |
Future minimum revenues | $ 7,383 |
2018, revenue days | 691 days |
Revenue Days | 691 days |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) £ in Thousands, $ in Thousands | 1 Months Ended | ||
Sep. 30, 2017USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2018USD ($) | |
Galveston Accident [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 25,000 | ||
Merchant Navy Ratings Pension Fund [Member] | |||
Loss Contingencies [Line Items] | |||
Other liabilities, current | £ 241 | $ 337 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 18, 2018 | |
Subsequent Event [Line Items] | ||||
Subsequent event, date | Apr. 18, 2018 | |||
Subsequent event, description | On April 18, 2018, Seaways Holding Corporation (the "Purchaser"), a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of INSW (and together with Purchaser, "INSW"), entered into the SPA with Euronav NV ("Euronav"), a limited liability company incorporated under the laws of Belgium, and Euronav MI Inc. ("Seller"), a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of Euronav, pursuant to which Purchaser has agreed to purchase from Seller, on the terms and subject to the conditions in the SPA including those set out below, the outstanding shares of Gener8 Maritime Subsidiary VII, Inc., a corporation incorporated under the laws of the Marshalls Islands ("HoldCo") and the sole member of six limited liability companies that in the aggregate hold title to six VLCC vessels (the "Vessels") (such transaction, the "Transaction") in connection with a transaction to be entered into between Euronav, Seller and Gener8 Maritime, Inc., a corporation incorporated under the laws of the Marshall Islands ("GNRT"). The Company has unconditionally and irrevocably agreed to guarantee the performance and payment of the obligations of Purchaser under the SPA. | |||
Payments to acquire equipment | $ 1,911 | $ 397 | ||
Scenario, Forecast [Member] | ||||
Subsequent Event [Line Items] | ||||
Agreement termination fee | $ 5,000 | |||
Scenario, Forecast [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale of productive assets | $ 143,000 | |||
6 Very Large Crude Carriers [Member] | Scenario, Plan [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments to acquire equipment | $ 434,000 |