Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | International Seaways, Inc. | ||
Entity Central Index Key | 0001679049 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,199,074 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 498,144,337 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 58,313 | $ 60,027 |
Restricted cash | 59,331 | 10,579 |
Voyage receivables, including unbilled of $87,725 and $54,701 | 94,623 | 58,187 |
Other receivables | 5,246 | 4,411 |
Inventories | 3,066 | 3,270 |
Prepaid expenses and other current assets | 5,912 | 5,881 |
Current portion of derivative asset | 460 | 16 |
Total Current Assets | 167,620 | 131,792 |
Restricted cash | 59,331 | 10,579 |
Vessels and other property, less accumulated depreciation | 1,330,795 | 1,104,727 |
Vessel held for sale, net | 5,108 | |
Deferred drydock expenditures, net | 16,773 | 30,528 |
Total Vessels, Deferred Drydock and Other Property | 1,347,568 | 1,140,363 |
Investments in and advances to affiliated companies | 268,322 | 378,894 |
Long-term derivative asset | 704 | 886 |
Other assets | 5,056 | 1,970 |
Total Assets | 1,848,601 | 1,664,484 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 22,974 | 22,805 |
Payable to OSG | 34 | 367 |
Current installments of long-term debt | 51,555 | 24,063 |
Current portion of derivative liability | 707 | |
Total Current Liabilities | 75,270 | 47,235 |
Long-term portion | 759,112 | 528,874 |
Long-term portion of derivative liability | 1,922 | |
Other liabilities | 2,442 | 2,721 |
Total Liabilities | 838,746 | 578,830 |
Commitments and contingencies | ||
Equity: | ||
Capital - 100,000,000 no par value shares authorized; 29,184,501 and 29,089,865 shares issued and outstanding | 1,309,269 | 1,306,606 |
Accumulated deficit | (269,485) | (180,545) |
Stockholders Equity Subtotal | 1,039,784 | 1,126,061 |
Accumulated other comprehensive loss | (29,929) | (40,407) |
Total Equity | 1,009,855 | 1,085,654 |
Total Liabilities and Equity | 1,848,601 | 1,664,484 |
Parent Company [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 159 | 1,624 |
Other receivables | 5 | 6 |
Prepaid expenses and other current assets | 556 | 575 |
Total Current Assets | 720 | 2,205 |
Restricted cash | 4,000 | |
Investment in subsidiaries | 941,872 | 978,737 |
Investments in and advances to affiliated companies | 112,212 | 102,398 |
Intercompany receivables | 1,611 | 3,126 |
Other assets | 282 | |
Total Assets | 1,060,697 | 1,086,466 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 841 | 621 |
Payable to OSG | 34 | 47 |
Total Current Liabilities | 875 | 668 |
Long-term portion | 49,824 | |
Intercompany payables | 143 | 143 |
Total Liabilities | 50,842 | 811 |
Equity: | ||
Capital - 100,000,000 no par value shares authorized; 29,184,501 and 29,089,865 shares issued and outstanding | 1,309,269 | 1,306,606 |
Accumulated deficit | (269,485) | (180,544) |
Stockholders Equity Subtotal | 1,039,784 | 1,126,062 |
Accumulated other comprehensive loss | (29,929) | (40,407) |
Total Equity | 1,009,855 | 1,085,655 |
Total Liabilities and Equity | $ 1,060,697 | $ 1,086,466 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Unbilled contracts receivable (in dollars) | $ 87,725 | $ 54,701 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 29,184,501 | 29,089,865 |
Common stock, shares, outstanding | 29,184,501 | 29,089,865 |
Parent Company [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 29,184,501 | 29,089,865 |
Common stock, shares, outstanding | 29,184,501 | 29,089,865 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shipping Revenues: | |||
Pool revenues, including $94,441, $39,572, and $37,481 from companies accounted for by the equity method | $ 177,206 | $ 177,347 | $ 246,196 |
Time and bareboat charter revenues | 25,961 | 55,106 | 95,484 |
Voyage charter revenues | 67,194 | 57,648 | 56,639 |
Shipping revenues | 270,361 | 290,101 | 398,319 |
Operating Expenses: | |||
Voyage expenses | 27,261 | 15,106 | 13,274 |
Vessel expenses | 135,003 | 141,235 | 141,944 |
Charter hire expenses | 44,910 | 41,700 | 37,411 |
Depreciation and amortization | 72,428 | 78,853 | 79,885 |
General and administrative | 24,304 | 24,453 | 30,352 |
Third-party debt modification costs | 1,306 | 9,240 | |
Separation and transition costs | 604 | 9,043 | |
Loss on disposal of vessels and other property, including impairments | 19,680 | 86,855 | 79,203 |
Total operating expenses | 324,892 | 398,046 | 391,112 |
(Loss)/income from vessel operations | (54,531) | (107,945) | 7,207 |
Equity in income of affiliated companies | 29,432 | 48,966 | 16,849 |
Operating (loss)/income | (25,099) | (58,979) | 24,056 |
Other expense | (3,715) | (5,818) | (1,346) |
(Loss)/income before interest expense, reorganization items and income taxes | (28,814) | (64,797) | 22,710 |
Interest expense | (60,231) | (41,247) | (40,362) |
Loss before reorganization items and income taxes | (89,045) | (106,044) | (17,652) |
Reorganization items, net | (131) | ||
Loss before income taxes | (89,045) | (106,044) | (17,783) |
Income tax benefit/(provision) | 105 | (44) | (440) |
Net loss | $ (88,940) | $ (106,088) | $ (18,223) |
Weighted Average Number of Common Shares Outstanding: | |||
Basic | 29,136,634 | 29,159,440 | 29,157,992 |
Diluted | 29,136,634 | 29,159,440 | 29,157,992 |
Per Share Amounts: | |||
Basic and Diluted net income (in dollars per share) | $ (3.05) | $ (3.64) | $ (0.62) |
Parent Company [Member] | |||
Shipping Revenues: | |||
Shipping revenues | $ 2 | $ 2 | |
Operating Expenses: | |||
Voyage expenses | (1,318) | ||
Vessel expenses | (4) | (778) | |
Charter hire expenses | (457) | ||
Depreciation and amortization | 783 | ||
General and administrative | $ 4,664 | 5,880 | 25,467 |
Third-party debt modification costs | 44 | ||
Separation and transition costs | 381 | 6,077 | |
Loss on disposal of vessels and other property, including impairments | 30 | ||
Total operating expenses | 4,708 | 6,257 | 29,804 |
(Loss)/income from vessel operations | (4,708) | (6,255) | (29,802) |
Equity in income of affiliated companies | (80,269) | (75,790) | 53,586 |
Operating (loss)/income | (84,977) | (82,045) | 23,784 |
Other expense | (92) | (6,888) | (2,583) |
(Loss)/income before interest expense, reorganization items and income taxes | (85,069) | (88,933) | 21,201 |
Interest expense | (3,864) | (17,129) | (39,278) |
Loss before reorganization items and income taxes | (88,933) | (106,062) | (18,077) |
Reorganization items, net | (131) | ||
Loss before income taxes | (88,933) | (106,062) | (18,208) |
Income tax benefit/(provision) | (7) | (26) | (15) |
Net loss | $ (88,940) | $ (106,088) | $ (18,223) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Pool revenues, received from companies accounted for by the equity method | $ 94,441 | $ 39,572 | $ 37,481 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ 6,958 | $ (47,786) | $ (18,796) | $ (29,316) | $ (90,720) | $ (21,816) | $ (11,619) | $ 18,067 | $ (88,940) | $ (106,088) | $ (18,223) |
Other Comprehensive Income/(Loss), net of tax: | |||||||||||
Net change in unrealized losses on cash flow hedges | 7,469 | 11,328 | 13,129 | ||||||||
Foreign currency translation adjustment | 42 | ||||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net change in unrecognized prior service costs | (13) | (31) | 294 | ||||||||
Net change in unrecognized actuarial losses | 3,022 | 563 | (1,608) | ||||||||
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 | ||||||||
Comprehensive Loss | (78,462) | (94,228) | (6,366) | ||||||||
Parent Company [Member] | |||||||||||
Net loss | (88,940) | (106,088) | (18,223) | ||||||||
Other Comprehensive Income/(Loss), net of tax: | |||||||||||
Net change in unrealized losses on cash flow hedges | 7,469 | 11,328 | 13,129 | ||||||||
Foreign currency translation adjustment | 42 | ||||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net change in unrecognized prior service costs | (13) | (31) | 294 | ||||||||
Net change in unrecognized actuarial losses | 3,022 | 563 | (1,608) | ||||||||
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 | ||||||||
Comprehensive Loss | $ (78,462) | $ (94,228) | $ (6,366) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (88,940) | $ (106,088) | $ (18,223) |
Items included in net loss not affecting cash flows: | |||
Depreciation and amortization | 72,428 | 78,853 | 79,885 |
Loss on write-down of vessels and other fixed assets | 19,037 | 88,408 | 79,242 |
Amortization of debt discount and other deferred financing costs | 6,212 | 6,423 | 6,643 |
Deferred financing costs write-off | 2,400 | 7,020 | 5,097 |
Stock compensation, non-cash | 3,162 | 3,808 | 2,841 |
Earnings of affiliated companies | (29,201) | (49,427) | (17,816) |
Allocated reorganization items, non-cash | 131 | ||
Other - net | 448 | 131 | 517 |
Items included in net loss related to investing and financing activities: | |||
Loss/(gain) on disposal of vessels and other property, net | 643 | (1,553) | (39) |
Allocated general and administrative costs, non-cash | 1,146 | ||
Loss/(gain) on repurchase of debt | 1,295 | (3,755) | |
Cash distributions from affiliated companies | 43,622 | 21,220 | 12,166 |
Payments for drydocking | (4,520) | (21,396) | (9,258) |
Insurance claims proceeds related to vessel operations | 5,436 | 1,964 | 1,942 |
Deferred financing costs paid for loan modification | (8,273) | ||
Changes in operating assets and liabilities: | |||
(Increase)/decrease in receivables | (36,436) | 8,730 | 8,033 |
Decrease in payable to OSG | (333) | (316) | (10,667) |
(Decrease)/increase in deferred revenue | (893) | (4,730) | 4,421 |
Net change in inventories, prepaid expenses and other current assets and accounts payable, accrued expenses and other current and long-term liabilities | (6,840) | (15,652) | (5,073) |
Net cash (used in)/provided by operating activities | (12,480) | 17,395 | 128,960 |
Cash Flows from Investing Activities: | |||
Expenditures for vessels and vessel improvements | (148,946) | (173,535) | (1,988) |
Proceeds from disposal of vessels and other property | 169,292 | 18,344 | |
Expenditures for other property | (1,096) | (406) | (907) |
Investements in and advances to affiliated companies, net | 3,679 | (731) | (987) |
Repayments of advances from joint venture investees | 100,780 | 19,530 | 6,334 |
Net cash provided by/(used in) investing activities | 123,709 | (136,798) | 2,452 |
Cash Flows from Financing Activities: | |||
Issuance of debt, net of issuance and deferred financing costs | 70,120 | 614,933 | |
Payments on debt | (71,610) | (54,983) | (90,065) |
Extinguishment of debt | (62,069) | (458,416) | (65,167) |
Dividend payments to OSG | (202,000) | ||
Repurchases of common stock | (3,177) | ||
Cash paid to tax authority upon vesting of stock-based compensation | (410) | (349) | (26) |
Other - net | (222) | ||
Net cash (used in)/provided by financing activities | (64,191) | 98,008 | (357,258) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 47,038 | (21,395) | (225,846) |
Cash, cash equivalents and restricted cash at beginning of year | 70,606 | 92,001 | 317,847 |
Cash, cash equivalents and restricted cash at end of year | $ 117,644 | $ 70,606 | $ 92,001 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Capital [Member] | (Accumulated deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2015 | $ 1,355,329 | $ 92,581 | $ (64,124) | $ 1,383,786 |
Net loss | (18,223) | (18,223) | ||
Other comprehensive income | 11,857 | 11,857 | ||
Capital contribution of Former Parent, net | 3,797 | 3,797 | ||
Dividends | (53,185) | (148,815) | (202,000) | |
Compensation relating to restricted stock awards | 40 | 40 | ||
Compensation relating to restricted stock units awards | 184 | 184 | ||
Compensation relating to stock options | 71 | 71 | ||
Balance at Dec. 31, 2016 | 1,306,236 | (74,457) | (52,267) | 1,179,512 |
Net loss | (106,088) | (106,088) | ||
Other comprehensive income | 11,860 | 11,860 | ||
Forfeitures of vested restricted stock awards | (261) | (261) | ||
Compensation relating to restricted stock awards | 841 | 841 | ||
Compensation relating to restricted stock units awards | 2,141 | 2,141 | ||
Compensation relating to stock options | 826 | 826 | ||
Repurchase of common stock | (3,177) | (3,177) | ||
Balance at Dec. 31, 2017 | 1,306,606 | (180,545) | (40,407) | 1,085,654 |
Net loss | (88,940) | (88,940) | ||
Other comprehensive income | 10,478 | 10,478 | ||
Forfeitures of vested restricted stock awards | (499) | (499) | ||
Compensation relating to restricted stock awards | 860 | 860 | ||
Compensation relating to restricted stock units awards | 1,412 | 1,412 | ||
Compensation relating to stock options | 890 | 890 | ||
Balance at Dec. 31, 2018 | $ 1,309,269 | $ (269,485) | $ (29,929) | $ 1,009,855 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1 — DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Nature of the Business International Seaways, Inc. (“INSW”), a Marshall Islands corporation, and its wholly owned subsidiaries (the “Company” or “INSW,” or “we” or “us” or “our”) are engaged primarily in the ocean transportation of crude oil and petroleum products in international markets. The Company’s business is currently organized into two reportable segments: Crude Tankers and Product Carriers. The crude oil fleet is comprised of most major crude oil vessel classes. The products fleet transports refined petroleum product cargoes from refineries to consuming markets characterized by both long and short-haul routes. Through joint venture partnerships, the Company operates four liquefied natural gas (“LNG”) carriers and two Floating Storage and Offloading (“FSO”) service vessels. As of December 31, 2018, the Company’s operating fleet consisted of 48 vessels, 42 of which were owned (including four LNG carriers and two FSO service vessels in which the Company has joint venture ownership interests), with the remaining vessels chartered-in. Vessels chartered-in may be bareboat charters or time charters. Under either a bareboat charter or time charter, a customer pays a fixed daily or monthly rate for a fixed period of time for use of the vessel. Under a bareboat charter, the customer pays all costs of operating the vessel, including voyage expenses, such as fuel, canal tolls and port charges, and vessel expenses such as crew costs, vessel stores and supplies, lubricating oils, maintenance and repair, insurance and communications associated with operating the vessel. Under a time charter, the customer pays all voyage expenses and the shipowner pays all vessel expenses. The Company’s operating fleet list excludes vessels chartered-in where the duration of the charter was one year or less at inception. The Marshall Islands is the principal flag of registry of the Company’s vessels. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. For the eleven-month period ended November 30, 2016, the accompanying consolidated financial statements include the assets, liabilities, revenues and expenses of the individual entities that comprise the Company carved out from the historical results of operations, cost basis of the assets and liabilities and cash flows of Overseas Shipholding Group, Inc. (“ OSG ”), a publicly traded company incorporated in Delaware, United States, for these entities using both specific identification and allocation consistent with prior periods. For the eleven month period ended November 30, 2016, the Company functioned as part of the larger group of companies controlled by OSG, and accordingly, OSG performed certain corporate overhead functions for the Company. Therefore, certain costs related to the Company have been allocated from OSG. These allocated costs are primarily related to corporate administrative expenses, reorganization costs and employee related costs, including pensions and other benefits for corporate and shared employees, for the following functional groups: information technology, legal services, accounting and finance services, human resources, marketing and contract support, customer support, treasury and cash management, facility and other corporate and infrastructural services. The costs associated with these services and support functions have been allocated to the Company primarily based on either the proportion of time spent by employees within the above functions on tasks related to or for the benefit of the Company’s entities or the proportion of ship operating days of the Company. Ship operating days are defined as the total number of days vessels are owned or chartered in during a period. A portion of this cost allocation was offset by costs for certain corporate functions held within the Company (including information technology functions) that have historically provided services to OSG and non-INSW subsidiaries of OSG. The net costs allocated for these functions are included in general and administrative expenses, technical management and transition costs, separation and transition costs and reorganization items, net within the consolidated financial statements. The tax provisions for the Company have been provided using a separate tax return methodology. Management believes the assumptions and allocations are reasonable. The expenses and cost allocations have been determined on a basis considered to be a reasonable reflection of the utilization of services provided to or the benefit received by the Company during the periods relative to the total costs incurred by OSG. However, the amounts recorded may not be representative of the amounts that would have been incurred had the Company been an entity that operated independently of OSG. Following our spin-off from OSG on November 30, 2016, we began perform ing functions previously performed by OSG using internal resources and purchased services, some of which were provided by OSG during a transitional period that ended on June 30, 2017 pursuant to the Transition Services Agreement. All intercompany balances and transactions within the Company have been eliminated. Investments in 50% or less owned affiliated companies, in which the Company exercises significant influence, are accounted for by the equity method. Dollar amounts, except per share amounts are in thousands. |
Parent Company [Member] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | NOTE A — BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS International Seaways, Inc. (the “Parent”) is the Parent company that conducts substantially all of its business operations through its subsidiaries. The condensed financial information and related notes have been prepared in accordance with Rule 12.04, Schedule I of Regulation S-X. This financial information should be read in conjunction with the consolidated financial statements and notes thereto of International Seaways, Inc., and subsidiaries (collectively, the “Company”). The Parent owns 100% of International Seaways Operating Corporation (“ISOC”), which is incorporated in the Marshall Islands, and OIN Delaware LLC, which is incorporated in the state of Delaware . The Parent has 49.90% interest in a joint venture , OSG Nakilat Corporation (“LNG Joint Venture”), which is incorporated in the Marshall Islands. The following subsidiaries of the Parent are in the process of being dissolved: ERN Holdings Inc. and Oleron Tankers S.A., which are incorporated in Panama, OSG-NNA Ship Management Services Inc, which is incorporated in the Philippines , and Ship Paying Corporation No. 3, which is incorporated in Liberia. ISOC and its subsidiaries own and operate a fleet of oceangoing vessels engaged in the transportation of crude oil and refined petroleum products in the international markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 1. Cash and cash equivalents — 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 $59,331 and $10,579 as of December 31, 2018 and December 31, 2017, respectively, represents legally restricted cash relating to the Company’s 2017 Term Loan Facility, Sinosure Credit Facility, ABN Term Loan Facility, and 10.75% Unsecured Subordinated Notes (as defined in Note 8, “Debt”). Such restricted cash reserves are included in the non-current assets section of the consolidated balance sheets. 2. 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. With respect to voyage receivables, the Company limits its credit risk by performing ongoing credit evaluations. Voyage receivables reflected in the consolidated balance sheets as of December 31, 2018 and 2017 are net of an allowance for doubtful accounts of $27 and $108 , respectively. The provisions for doubtful accounts for the years ended December 31, 2018, 2017 and 2016 were not material. During the three years ended December 31, 2018, 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 for 88% and 89% of consolidated voyage receivables at December 31, 2018 and 2017. 3. Inventories —Inventories, which consists principally of fuel, are stated at cost determined on a first-in, first-out basis. 4. Vessels, vessel lives, deferred drydocking expenditures and other property —Vessels are recorded at cost and are depreciated to their estimated salvage value on the straight-line basis over the lives of the vessels, which are generally 25 years. Each vessel’s salvage value is equal to the product of its lightweight tonnage and an estimated scrap rate of $300 per ton. The carrying value of each of the Company’s vessels represents its original cost at the time it was delivered or purchased less depreciation calculated using estimated useful lives from the date such vessel was originally delivered from the shipyard. A vessel’s carrying value is reduced to its new cost basis (i.e., its current fair value) if a vessel impairment charge is recorded. Interest costs are capitalized to vessels during the period that vessels are under construction, however, no interest was capitalized during 2018, 2017 or 2016. Other property, including leasehold improvements, are recorded at cost and amortized on a straight-line basis over the shorter of the terms of the leases or the estimated useful lives of the assets, which range from three to seven years. Expenditures incurred during a drydocking are deferred and amortized on the straight-line basis over the period until the next scheduled drydocking, generally two and a half to five years. The Company only includes in deferred drydocking costs those direct costs that are incurred as part of the drydocking to meet regulatory requirements or are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs include shipyard costs as well as the costs of placing the vessel in the shipyard. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. 5. Impairment of long-lived assets —The carrying amounts of long-lived assets held and used by the Company are reviewed for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be fully recoverable. In such instances, an impairment charge would be recognized if the estimate of the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than the asset’s carrying amount. This assessment is made at the individual vessel level since separately identifiable cash flow information for each vessel is available. The impairment charge, if any, would be measured as the amount by which the carrying amount of a vessel exceeded its fair value. If using an income approach in determining the fair value of a vessel, the Company will consider the discounted cash flows resulting from highest and best use of the vessel asset from a market-participant’s perspective. Alternatively, if using a market approach, the Company will obtain third party appraisals of the estimated fair value of the vessel. A long lived asset impairment charge results in a new cost basis being established for the relevant long lived asset. See Note 5, “Vessels, Deferred Drydock and Other Property,” for further discussion on the impairment tests performed on certain of our vessels during the three years ended December 31, 2018. 6. 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 $413 relating to the 2017 Revolver Facility are included in other assets in the consolidated balance sheet as of December 31, 2018. Unamortized deferred financing charges of $26,647 relating to the 2017 Term Loan Facility, Sinosure Credit Facility, ABN Term Loan Facility, 8.5% Senior Notes and 10.75% Subordinated Notes and (as defined in Note 8, “Debt”) and $23,626 relating to the 2017 Term Loan Facility and the 2017 Revolver Facility are included in long-term debt in the consolidated balance sheets as of December 31, 2018 and December 31, 2017, respectively. Interest expense relating to the amortization of deferred financing costs amounted to $3,933 in 2018 , $ 5,115 in 201 7 and $6,449 in 201 6. 7. 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 including 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. Bareboat charters are accounted for as operating leases and the associated revenue is recognized ratably over the rental periods of such charters. Voyage charters 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 latter of discharge of the previous cargo or voyage charter contract signing. For voyage charters 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. Demurrage earned during a voyage charter represents variable consideration. The 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 15, “Revenue,” for additional disclosures on revenue recognition and the impact of adopting ASC 606 on January 1, 2018. 8. Derivatives —ASC 815, Derivatives and Hedging , requires the Company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not effective hedges must be adjusted to fair value through earnings. If the derivative is an effective hedge, depending on the nature of the hedge, a change in the fair value of the derivative is either recorded to current earnings (fair value hedge), or recognized in other comprehensive income/(loss) and reclassified into earnings in the same period or periods during which the hedge transaction affects earnings (cash flow hedge). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. The Company also formally assesses (both at the hedge's inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item such as forecasted transactions; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income/(loss) and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in other comprehensive gain/(loss) will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the balance sheet, recognizing changes in the fair value in current-period earnings, unless it is designated in a new hedging relationship. During the three years ended December 31, 2018, no ineffectiveness gains or losses were recorded in earnings relative to interest rate caps or swaps entered into by the Company or its subsidiaries that qualified for hedge accounting. Any gain or loss realized upon the early termination of an interest rate cap or swaps is recognized as an adjustment of interest expense over the shorter of the remaining term of the derivative instruments or the hedged debt. See Note 9, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” for additional disclosures on the Company’s interest rate caps and swaps and other financial instruments. 9. Income taxes — Substantially all of the companies included in the Company’s consolidated financial statements were excluded from the OSG consolidated group for U.S. income tax purposes for the eleven-month period ended November 30, 2016 . T he Company’s financial statements have been prepared on the basis that OSG was responsible for all U.S. taxes for periods prior to December 1, 2016. Prior to December 1, 2016, the Company had not operated as an independent stand-alone entity. However, for the purposes of these consolidated financial statements the Company has calculated income taxes as if it had filed relevant income tax returns on a stand-alone basis. T he Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Net deferred tax assets are recorded to the extent the Company believes these assets will more likely than not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company were to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes in the period such determination is made. Uncertain tax positions are recorded in accordance with ASC 740, Income Taxes, on the basis of a two-step process whereby (1) the Company first determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. 10. Valuation of equity method investments — When events and circumstances warrant, investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in fair value of an investment below its carrying amount is determined to be other-than-temporary. Impairment charges related to equity method investments are recorded in equity in income of affiliated companies in the accompanying consolidated statements of operations. See Note 6, “Equity Method Investments,” for further discussion of the Company’s evaluation of impairment of its equity method investments during the three years ended December 31, 2018. 11. Use of estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts of assets, liabilities, equity, revenues and expenses reported in the financial statements and accompanying notes. The most significant estimates relate to the depreciation of vessels and other property, amortization of drydocking costs, judgements involved in identifying performance obligations in revenue contracts, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation, estimates used in assessing the recoverability of equity method investments and other long-lived assets, liabilities incurred relating to pension benefits, and income taxes. Actual results could differ from those estimates. 12. 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 acquisition of six VLCC tankers (see Note 5, “Vessels, Deferred Drydock and Other Property”) should be accounted for as an acquisition of a group of assets as substantially all of the fair value of the gross assets acquired was 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 modifications during the year ended December 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. Such practical expedient was not utilized by the Company. The adoption of this accounting standard resulted in the presentation of $526 and ( $380 ) of net actuarial gains/(losses) and $809 and $886 of benefit obligation interest costs, which were previously presented in the general and administrative expense line for the years ended December 31, 2017 and 2016, respectively, in the other expense and interest expense lines on the consolidated statements of operations, respectively. In November 2016, the FASB issued ASU 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 year ended December 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, $19,530 and $6,334 of the total distributions of $40,750 and $18,500 received from certain affiliated companies accounted for by the equity method during the years ended December 31, 2017 and 2016, respectively, are presented as cash inflows from investing activities while the balance of $21,220 and $12,166 are presented as cash inflows from operating activities. In addition, the adoption of this accounting standard resulted in the separate line presentation of $1,964 and $1,942 of insurance proceeds received for various claims arising from the normal operations of our vessel fleet, in the operating activities section of the consolidated statement of cash flows for the years ended December 31, 2017 and 2016, respectively. In May 2014, the FASB issued ASU 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 15, “Revenue,” for further information. 13. Recently issued accounting standards — In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit losses (ASC 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model known as the current expected credit loss (“CECL”) model that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to recognize as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. Unlike the incurred loss models under existing standards, the CECL model does not specify a threshold for the recognition of an impairment allowance. Rather, an entity will recognize its estimate of expected credit losses for financial assets as of the end of the reporting period. Credit impairment will be recognized as an allowance or contra-asset rather than as a direct write-down of the amortized cost basis of a financial asset. However, the carrying amount of a financial asset that is deemed uncollectible will be written off in a manner consistent with existing standards. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2019 and early adoption is permitted . We are in the process of evaluating financial assets on our balance sheet for potential credit losses under CECL model. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements. In November 2018, the FASB issued ASU 2018-19, Financial Instruments – Credit losses (ASC 326), which clarifies that operating lease receivables are not within the scope of ASC 326 and should instead be accounted for under the new leasing standard, ASC 842. In August 2018, the SEC issued a final rule that amends certain of its disclosure requirements. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly changing the information provided to investors. The amendments require registrants to include a reconciliation of changes in stockholders’ equity in their interim financial statements. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods as well as comparable periods in Form 10-Q, but only for the year-to-date periods in registration statements. While the amendments adopted in August 2018 are effective on November 5, 2018, the SEC staff issued a Compliance and Disclosure Interpretation (C&DI) that provides an extended transition period for companies to comply with the requirement to provide a reconciliation of changes in stockholders’ equity in their interim financial statements, allowing a registrant to not comply with that requirement until the Form 10-Q for the quarter that begins after November 5, 2018. Accordingly, the Company intends to begin providing the new interim reconciliations of shareholders’ equity required by the rule in the Form 10-Q for the three months ending March 31, 2019. In August 2018, the FASB issued ASU 2018-14, Defined Benefit Plans (ASC 715), which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 adds requirements for an entity to disclose the following: (1) the weighted average interest crediting rates used in the entity’s cash balance pension plans and other similar plans; (2) a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period; and (3) an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the ASU removes guidance that requires the following disclosures: (1) the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year; (2) information about plan assets to be returned to the entity, including amounts and expected timing; (3) information about benefits covered by related-party insurance and annuity contracts and significant transactions between the plan and related parties; and (4) effects of a one-percentage-point change in the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2020 and early adoption is permitted. Management does not expect the adoption of this accounting standard to have a material impact on the C |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 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 42,449 , 35,876 and 1,489 weighted average shares of unvested restricted common stock shares considered to be participating securities for the years ended December 31, 2018, 2017 and 2016, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. Accordingly, no allocation was made to the participating securities under the two-class method for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, there were 139,506 shares of restricted stock units and 400,785 stock options outstanding considered to be potentially dilutive securities. The components of the calculation of basic and diluted earnings per share are as follows: For the year ended December 31, 2018 2017 2016 Net loss $ (88,940) $ (106,088) $ (18,223) Weighted average common shares outstanding: Basic 29,136,634 29,159,440 29,157,992 Diluted 29,136,634 29,159,440 29,157,992 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: For the year ended December 31, 2018 2017 2016 Net loss allocated to: Common Stockholders $ (88,940) $ (106,088) $ (18,223) Participating securities - - - $ (88,940) $ (106,088) $ (18,223) There were no dilutive equity awards outstanding for the years ended December 31, 2018, 2017 and 2016. Awards of 523,544 , 397,833 and 11,153 for the years ended December 31, 2018, 2017 and 2016, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Business and Segment Reporting [Abstract] | |
Business and Segment Reporting | NOTE 4 — BUSINESS AND SEGMENT REPORTING: The Company is engaged primarily in the ocean transportation of crude oil and petroleum products in the international market through the ownership and operation of a diversified fleet of vessels. The shipping industry has many distinct market segments based, in large part, on the size and design configuration of vessels required and, in some cases, on the flag of registry. Rates in each market segment are determined by a variety of factors affecting the supply and demand for vessels to move cargoes in the trades for which they are suited. Tankers are not bound to specific ports or schedules and therefore can respond to market opportunities by moving between trades and geographical areas. The Company charters its vessels to commercial shippers and foreign governments and governmental agencies primarily on voyage charters and on time charters. 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 income/(loss) from vessel operations for segment reporting is defined as income/(loss) from vessel operations before general and administrative expenses, third-party debt modification fees, separation and transition costs and loss on disposal of vessels and other property, including impairments. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s consolidated financial statements. Information about the Company’s reportable segments as of and for each of the years in the three-year period ended December 31, 2018 follows: Crude Product Tankers Carriers Other Totals 2018 Shipping revenues $ 202,396 $ 67,965 $ - $ 270,361 Time charter equivalent revenues 175,524 67,576 - 243,100 Depreciation and amortization 54,431 17,862 135 72,428 Loss/(gain) on disposal of vessels and other property, including impairments 22,992 (3,312) - 19,680 Adjusted income/(loss) from vessel operations 2,194 (12,002) 567 (9,241) Equity in income of affiliated companies 19,582 - 9,850 29,432 Investments in and advances to affiliated companies at December 31, 2018 143,789 12,321 112,212 268,322 Adjusted total assets at December 31, 2018 1,285,433 328,792 112,212 1,726,437 Expenditures for vessels and vessel improvements 146,322 2,624 - 148,946 Payments for drydockings 4,121 399 - 4,520 2017 Shipping revenues $ 192,426 $ 97,675 $ - $ 290,101 Time charter equivalent revenues 178,812 96,183 - 274,995 Depreciation and amortization 56,302 22,418 133 78,853 Loss on disposal of vessels and other property, including impairments 85,625 1,230 - 86,855 Adjusted income/(loss) from vessel operations 21,623 (8,385) (31) 13,207 Equity in income of affiliated companies 34,577 - 14,389 48,966 Investments in and advances to affiliated companies at December 31, 2017 260,884 15,612 102,398 378,894 Adjusted total assets at December 31, 2017 1,104,714 382,905 102,025 1,589,644 Expenditures for vessels and vessel improvements 172,164 1,371 - 173,535 Payments for drydockings 17,606 3,790 - 21,396 2016 Shipping revenues $ 271,764 $ 126,555 $ - $ 398,319 Time charter equivalent revenues 258,171 126,314 560 385,045 Depreciation and amortization 52,395 26,696 794 79,885 Loss on disposal of vessels and other property, including impairments 7,585 71,456 162 79,203 Adjusted income from vessel operations 111,768 13,327 710 125,805 Equity in income of affiliated companies 5,584 - 11,265 16,849 Investments in and advances to affiliated companies at December 31, 2016 266,470 15,296 76,915 358,681 Adjusted total assets at December 31, 2016 1,066,184 422,579 76,915 1,565,678 Expenditures for vessels and vessel improvements 691 1,297 - 1,988 Payments for drydockings 7,636 1,622 - 9,258 Reconciliations of time charter equivalent revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow: For the year ended December 31, 2018 2017 2016 Time charter equivalent revenues $ 243,100 $ 274,995 $ 385,045 Add: Voyage expenses 27,261 15,106 13,274 Shipping revenues $ 270,361 $ 290,101 $ 398,319 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 before income taxes, as reported in the consolidated statements of operations follow: For the year ended December 31, 2018 2017 2016 Total adjusted (loss)/income from vessel operations of all segments $ (9,241) $ 13,207 $ 125,805 General and administrative expenses (24,304) (24,453) (30,352) Third-party debt modification fees (1,306) (9,240) - Separation and transition costs - (604) (9,043) Loss on disposal of vessels and other property, including impairments (19,680) (86,855) (79,203) Consolidated (loss)/income from vessel operations (54,531) (107,945) 7,207 Equity in income of affiliated companies 29,432 48,966 16,849 Other expense (3,715) (5,818) (1,346) Interest expense (60,231) (41,247) (40,362) Reorganization items, net - - (131) Loss before income taxes $ (89,045) $ (106,044) $ (17,783) Reconciliations of total assets of the segments to amounts included in the consolidated balance sheets follow: At December 31, 2018 2017 Total assets of all segments $ 1,726,437 $ 1,589,644 Corporate unrestricted cash and cash equivalents 58,313 60,027 Restricted cash 59,331 10,579 Other unallocated amounts 4,520 4,234 Consolidated total assets $ 1,848,601 $ 1,664,484 Certain additional information about the Company’s operations for each of the years in the three year period ended December 31, 2018 follows: Crude Product Tankers Carriers Other Consolidated 2018 Total vessels, deferred drydock and other property at December 31, 2018 $ 1,057,994 $ 289,317 $ 257 $ 1,347,568 2017 Total vessels, deferred drydock and other property at December 31, 2017 $ 800,362 $ 339,627 $ 374 $ 1,140,363 2016 Total vessels, deferred drydock and other property at December 31, 2016 $ 753,028 $ 377,095 $ 484 $ 1,130,607 |
VESSELS, DEFERRED DRYDOCK AND O
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY | 12 Months Ended |
Dec. 31, 2018 | |
Vessels, Deferred Drydock and Other Property [Abstract] | |
Vessels, Deferred Drydock and Other Property | NOTE 5 — VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY: Vessels and other property, excluding vessel held for sale, consist of the following: At December 31, 2018 2017 Vessels, at cost $ 1,629,647 $ 1,404,360 Accumulated depreciation (301,885) (302,087) Vessels, net 1,327,762 1,102,273 Other property, at cost 8,199 7,377 Accumulated depreciation and amortization (5,166) (4,923) Other property, net 3,033 2,454 Total Vessels and other property $ 1,330,795 $ 1,104,727 All of the Company’s vessels are pledged as collateral under either the 2017 Term Loan Facility, Sinosure Credit Facility, or ABN Term Loan Facility (see Note 8, “Debt”). The aggregate carrying value of the 29 vessels pledged as collateral under the 2017 Term Loan Facility, the six vessels pledged as collateral under Sinosure Credit Facility, and the vessel pledged as collateral under ABN Term Loan Facility at December 31, 2018 was $836,310 , $436,812 , and $51,762 , respectively. A breakdown of the carrying value of the Company’s owned vessels by reportable segment and fleet as of December 31, 2018 and 2017 follows: As of December 31, 2018 Net Average Number of Accumulated Carrying Vessel Age Owned Cost Depreciation Value (by dwt) Vessels Crude Tankers VLCC $ 998,038 $ (200,706) $ 797,332 7.6 13 Suezmax 117,339 (5,914) 111,425 1.4 2 Aframax (1) 95,116 (15,445) 79,671 13.1 3 Panamax 56,357 (2,447) 53,910 16.2 7 Total Crude Tankers 1,266,850 (224,512) 1,042,338 (2) 8.4 25 Product Carriers LR2 73,681 (12,009) 61,672 4.4 1 LR1 106,376 (17,772) 88,604 10.0 4 MR 182,740 (47,592) 135,148 10.0 6 Total Product Carriers 362,797 (77,373) 285,424 (3) 9.1 11 Fleet Total $ 1,629,647 $ (301,885) $ 1,327,762 8.5 36 (1) Net carrying value includes assets capitalized on two bareboat chartered-in Aframaxes. (2) Includes seven VLCCs, one Aframax, and one Panamax with an aggregate carrying value of $429,045 , which the Company believes exceeds their aggregate market values (estimated by taking an average of two third party vessel appraisals) of approximately $341,625 by $87,420 . (3) Includes one LR2, four LR1s and four MRs with an aggregate carrying value of $269,645 , which the Company believes exceeds their aggregate market values (estimated by taking an average of two third party vessel appraisals) of approximately $202,300 by $67,345 . As of December 31, 2017 Net Average Number of Accumulated Carrying Vessel Age Owned Cost Depreciation Value (by dwt) Vessels Crude Tankers VLCC (includes ULCC) $ 663,880 $ (209,966) $ 453,914 12.5 10 Suezmax 117,259 (1,821) 115,438 0.4 2 Aframax 167,146 (21,064) 146,082 12.6 7 Panamax 61,120 (538) 60,582 15.3 8 Total Crude Tankers 1,009,405 (233,389) 776,016 12.1 27 Product Carriers LR2 73,681 (9,305) 64,376 3.4 1 LR1 106,176 (13,122) 93,054 9.0 4 MR 215,098 (46,271) 168,827 11.5 10 Total Product Carriers 394,955 (68,698) 326,257 9.6 15 Fleet Total $ 1,404,360 $ (302,087) $ 1,102,273 11.7 42 Vessel activity for the three years ended December 31, 2018 is summarized as follows: Accumulated Net Book Vessel Cost Depreciation Value Balance at January 1, 2016 $ 1,642,891 $ (404,957) $ 1,237,934 Purchases and vessel additions 2,127 - Depreciation - (63,328) Impairment (166,078) 86,836 Balance at December 31, 2016 1,478,940 (381,449) 1,097,491 Purchases and vessel additions 174,108 - Disposals and transfer to held for sale (23,266) 2,232 Depreciation - (59,883) Impairment (225,422) 137,013 Balance at December 31, 2017 1,404,360 (302,087) 1,102,273 Purchases and vessel additions 459,608 - Disposals (176,300) 16,097 Depreciation - (56,711) Impairment (58,021) 40,816 Balance at December 31, 2018 $ 1,629,647 $ (301,885) $ 1,327,762 The total of purchases and vessel additions will differ from expenditures for vessels as shown in the consolidated statements of cash flows because of the timing of when payments were made. Vessel Impairments During the year ended December 31, 2018, the Company gave consideration on a quarterly basis 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. 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 the increased likelihood of disposal prior to the end of their respective useful lives constituted impairment triggering events for one Panamax and two Aframaxes that were being actively marketed for sale as of June 30, 2018; one VLCC that was held-for-sale as of September 30, 2018; and as of December 31, 2018, one MR that has an increased likelihood of disposal prior to the end of its useful life. In developing estimates of undiscounted future cash flows for performing Step 1 of the impairment tests as of June 30, 2018, the Company utilized weighted probabilities assigned to possible outcomes for each of the three vessels for which impairment trigger events were determined to exist. The Company entered into a memorandum of agreement for the sale of the Panamax vessel in early July 2018. Accordingly, a 100% probability was attributed to the vessel being sold before the end of its useful life. As the Company is considering selling the other two vessels as a part of its fleet renewal program, 50% probabilities were assigned to the possibility that the two Aframax vessels would be sold prior to the end of their respective useful lives. In estimating the fair value of the vessels for the purposes of Step 2 of the impairment tests, the Company considered the market approach by using the sales price per the memorandum of agreement. Based on the tests performed, the sum of the undiscounted cash flows for each of the two Aframax vessels was more than its carrying value as of June 30, 2018 and the sum of the undiscounted cash flows for the Panamax vessel was less than its carrying value as of June 30, 2018. Accordingly, an impairment charge totaling $948 was recorded for the Panamax vessel to write-down its carrying value to its estimated fair value at June 30, 2018. Held-for-sale impairment charges aggregating $16,419 were recorded during the third quarter of 2018 including (i) a charge of $14,226 to write the value of the VLCC held-for-sale at September 30, 2018 down to its estimated fair value; (ii) a charge of $361 for estimated costs to sell the vessel; and (iii) a charge of $1,832 for the write-off of other assets associated with the operations of the vessel. The amount of the charge to write down the vessel to its fair value was determined using the market approach by utilizing the sales price as per the memorandum of agreement associated with the sale of the vessel. In developing estimates of undiscounted future cash flows for performing Step 1 of the impairment test as of December 31, 2018, the Company utilized weighted probabilities assigned to possible outcomes for the MR for which an impairment triggering event was determined to exist. As the Company is considering selling the MR as a part of its fleet renewal program, a 50% probability was assigned to the possibility that the vessel will be sold prior to the end of its useful life. In estimating the fair value of the vessel for the purposes of Step 2 of the impairment test, the Company considered the market approach by utilizing a combination of third party appraisals and recently executed vessel sale transactions. Based on the tests performed, the sum of the undiscounted cash flows for the vessel was less than its carrying value as of December 31, 2018. Accordingly, an impairment charge totaling $1,670 was recorded to write-down the vessel’s carrying value to its estimated fair value at December 31, 2018. The Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2016 that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable as of December 31, 2017. Factors considered included declines in valuations during 2017 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 would 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 the above indicators constituted impairment trigger events for eighteen vessels (one ULCC, one VLCC, six Aframaxes, eight Panamaxes and two LR1s) as of December 31, 2017 and three vessels (one Panamax and two MRs) as of September 30, 2017. In developing estimates of undiscounted future cash flows for performing Step 1 of the impairment tests, the Company utilized weighted probabilities assigned to possible outcomes for the vessels that the Company was considering to sell or recycle before the end of their respective useful lives in conjunction with the Company’s fleet renewal program. The Company made assumptions about future performance, with significant assumptions being related to charter rates, ship operating expenses, utilization, drydocking requirements, residual value and the estimated remaining useful lives of the vessels. These assumptions are based on historical trends as well as future expectations. The estimated daily time charter equivalent rates used for unfixed days were based on a combination of (i) internally forecasted rates that are consistent with forecasts provided to the Company’s senior management and Board of Directors, and (ii) the trailing 12-year historical average rates, based on monthly average rates published by a third party maritime research service. The internally forecasted rates were based on management’s evaluation of current economic data and trends in the shipping and oil and gas industries. Management used the published 12-year historical average rates in its assumptions because it is management’s belief that the 12-year period captures an even distribution of strong and weak charter rate periods, which results in the use of an average mid-cycle rate that is in line with management’s forecast of a return to mid-cycle charter rate levels in the medium term. Recognizing that the transportation of crude oil and petroleum products is cyclical and subject to significant volatility based on factors beyond the Company’s control, management believes the use of estimates based on the combination of internally forecasted rates and 12-year historical average rates calculated as of the reporting date to be reasonable. Estimated outflows for operating expenses and drydocking requirements are based on historical and budgeted costs and are adjusted for assumed inflation. Utilization was based on historical levels achieved and estimates of a residual value for recyclings are based upon published 12-year historical data or the pattern of scrap rates used in management’s evaluation of salvage value for purposes of recording depreciation. In estimating the fair value of the vessels for the purposes of Step 2 of the impairment tests, the Company considered the market and income approaches by using a combination of third party appraisals, current recycling market data, and discounted cash flow models prepared by the Company. In preparing the discounted cash flow models, the Company used a methodology consistent with that described above and discounted the cash flows using its current estimate of INSW’s weighted average cost of capital. Based on the tests performed, impairment charges totaling $81,062 and $7,346 were recorded on twelve vessels (one ULCC, one VLCC, four Aframaxes and six Panamaxes) at December 31, 2017 and three vessels (one Panamax and two MRs) as of September 30, 2017, respectively to write-down their carrying values to their estimated fair values. The Company monitored the industry wide decline in vessel valuations during 2016 and specifically from June 30, 2016 to September 30, 2016, and September 30, 2016 to December 31, 2016, as well as the decline in forecasted near term charter rates, and concluded that the declines in vessel valuations and in forecasted near term charter rates constituted impairment trigger events for 28 vessels as of September 30, 2016 and 24 vessels as of December 31, 2016. In developing estimates of undiscounted future cash flows for performing Step 1 of the impairment tests, the Company utilized the methodology described above. In estimating the fair value of the vessels for the purposes of Step 2 of the September 30, 2016 impairment tests, the Company developed fair value estimates that utilized a market approach which considered an average of two vessel appraisals. Based on the tests performed, impairment charges totaling $49,640 were recorded on two LR1s, an Aframax and a Panamax to write-down their carrying values to their estimated fair values at September 30, 2016. In estimating the fair values of the vessels for the purposes of Step 2 of the December 31, 2016 impairment tests, the Company considered the market and income approaches by using a combination of third party appraisals and discounted cash flow models prepared by the Company. In preparing the discounted cash flow models, the Company used a methodology consistent with that described above and discounted the cash flows using its current estimate of INSW’s weighted average cost of capital. Based on the tests performed, impairment charges aggregating $29,602 were recorded on one Panamax and seven MRs to write-down their carrying values to their estimated fair values at December 31, 2016. Vessel Acquisitions and Deliveries On June 14, 2018 (the “Closing Date”), the Company completed its acquisition of six 300,000 DWT VLCCs including one 2015-built and five 2016-built. The Company purchased the outstanding shares of Gener8 Maritime Subsidiary VII, Inc., a corporation incorporated under the laws of the Marshall Islands and the sole member of six limited liability companies each of which holds title to a VLCC tanker (collectively, the "Six VLCCs") (such purchase, the "Transaction"). The Transaction was completed pursuant to the terms of the Stock Purchase and Sale Agreement (the "SPA") dated as of April 18, 2018, by and among Seaways Holding Corporation, a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of the Company, Euronav NV ("Euronav"), a corporation incorporated and existing under the laws of the Kingdom of Belgium, and Euronav MI II Inc. (as successor to Euronav MI Inc.), a corporation incorporated under the laws of the Marshall Islands and a wholly-owned subsidiary of Euronav. In accordance with ASC 2017-01, Business Combinations (Topic 805), this acquisition did not constitute the acquisition of a business, and therefore was accounted for as an asset acquisition. The purchase price for the Transaction was $434,000 , inclusive of assumed debt secured by the Vessels (see Note 8, “Debt”). On the Closing Date, the Company paid to Euronav cash consideration of approximately $120,025 , with the difference reflecting assumed debt and accrued interest thereon through the Closing Date. The balance payable to Euronav for the other assets and liabilities of Gener8 Maritime Subsidiary VII, Inc. acquired was determined to be $20,935 and was paid to Euronav in October 2018. During 2017, the Company acquired two 2017-built Suezmax tankers for an aggregate price of $116,000 , which were delivered in July 2017, and one 2010-built VLCC tanker for a price of $53,000 , which was delivered in November 2017. Vessel Sales During the year ended December 31, 2018, the Company recognized a net aggregate gain on disposal of vessels and other property of $643 , primarily relating to (i) the sale of a 2002-built MR which was held-for-sale as of December 31, 2017; (ii) the sale of three 2004-built MRs, a 1998-built MR, a 2000-built VLCC, a 2001-built VLCC, two 2001-built Aframaxes, and a 2002-built Panamax; (iii) the sale and leaseback of two 2009-built Aframaxes, and (iv) the sale of a 2003-built ULCC in conjunction with the acquisition of Six VLCCs. During 2017, the Company recognized an aggregate gain on disposal of vessels of $1,594 relating to the sale of a 2001-built MR and a 2004-built MR. During the last quarter of 2017, the Company entered into memorandums of agreement for the sale of a 2002-built MR and a 2004-built MR, which were delivered to buyers during the first quarter of 2018. The 2002-built MR had been classified as vessel held for sale as of December 31, 2017. The Company recognized gains on such sales in 2018. There were no vessels sold during the year ended December 31, 2016. Drydocking activity for the three years ended December 31, 2018 is summarized as follows: 2018 2017 2016 Balance at January 1 $ 30,528 $ 30,557 $ 37,075 Additions 5,616 19,205 8,822 Sub-total 36,144 49,762 45,897 Drydock amortization (15,084) (18,367) (15,340) Amount charged to loss on disposal of vessels (4,287) (867) - Balance at December 31 $ 16,773 $ 30,528 $ 30,557 |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 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 December 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 converted two ULCCs to Floating Storage and Offloading Service vessels (collectively the “FSO Joint Venture”). FSO Joint Venture The Company has a 50% interest in this joint venture. The FSO Joint Venture financed the purchase of the two ULCCs from each of Euronav NV and INSW and their conversion costs through partner loans and a long-term bank financing, which was secured by, among other things, the service contracts with Maersk Oil Qatar AS and the FSOs themselves. In July 2017, the FSO Joint Venture repaid the principal balance outstanding on the bank financing facility, using cash on hand. In May 2017, the FSO Joint Venture signed two five-year service contracts with North Oil Company (“NOC”), the new operator of the Al Shaheen oil field, off the coast of Qatar, relating to the two FSO service vessels. The shareholders of NOC are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited. Such contracts commenced during the third quarter of 2017 at the expiry of the previous contracts with Maersk Oil Qatar AS. On March 29, 2018, the FSO Joint Venture 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 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. 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. The FSO Joint Venture drew down and distributed the entire $110,000 of proceeds of the FSO Term Loan on April 26, 2018 to INSW, which has guaranteed the FSO Term Loan and which has used the proceeds for general corporate purposes, including to fund partially the agreement to purchase the Six VLCCs (See Note 5, “Vessels, Deferred Drydock and Other Property”). The FSO Joint Venture also borrowed the entire $110,000 available under the FSO Revolver and distributed the proceeds on April 26, 2018 to Euronav, 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 to or greater than 1.10 to 1.00. Approximately $93,033 was outstanding under the FSO Term Loan as of December 31, 2018. The FSO Joint Venture had no outstanding debt as of December 31, 2017. Interest payable on the FSO Term Loan and on the FSO Revolver is based on three month, six month or twelve month LIBOR , as selected by the FSO Joint Venture, plus a 2.00% margin. The FSO Joint Venture has entered into swap transactions which fix the interest rate on the FSO Loan Agreement at a blended rate of approximately 4.858% per annum, effective as of June 29, 2018. The FSO Joint Venture has 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. The interest rate swap covers a notional amount of $186,066 as of December 31, 2018. As of December 31, 2018, the FSO Joint Venture had a liability of $1,008 for the fair value of the swaps associated with the FSO Joint Venture. The Company’s share of the effective portion of such amounts, aggregating a loss of $504 at December 31, 2018 is included in accumulated other comprehensive loss in the accompanying balance sheet. As of December 31, 2018, the maximum aggregate potential amount of future principal payments (undiscounted) relating to equity method investees secured bank debt and interest rate swap obligations that INSW could be required to make was $93,548 and the carrying value of the Company’s guaranty of these obligations in the accompanying consolidated balance sheets was $673. The FSO Joint Venture is party to a number of contracts to which INSW serves as guarantor. See Note 12, “Related Parties,” for additional information relating to guarantees. LNG Joint Venture In November 2004, the Company formed a joint venture with Qatar Gas Transport Company Limited (Nakilat) (“QGTC”) whereby companies in which OSG holds a 49.9% interest ordered four 216,200 cbm LNG Carriers. Upon delivery in late 2007 and early 2008, these vessels commenced 25 -year time charters to Qatar Liquefied Gas Company Limited (2) (‘‘LNG Charterer’’). QGTC subsequently contributed its ownership interests in the joint venture to its wholly owned subsidiary, Nakilat Marine Services Ltd. The aggregate construction cost for such newbuildings was financed by the joint venture through long-term bank financing that is nonrecourse to the partners and partner contributions. Approximately $553,005 and $597,129 was outstanding under this secured facility as of December 31, 2018 and 2017, respectively. The joint venture has entered into floating-to-fixed interest rate swaps with a group of major financial institutions pursuant to which it pays fixed rates of approximately 4.9% and receives a floating rate based on LIBOR. The interest rate swap agreements have maturity dates ranging from July to November 2022 and cover notional amounts aggregating $532,746 and $576,429 at December 31, 2018 and 2017, respectively. These swaps are being accounted for as cash flow hedges. As of December 31, 2018 and 2017, the joint venture recorded a liability of $37,687 and $58,243 , respectively, for the fair value of these swaps. The Company’s share of the effective portion of the fair value of these swaps, $18,713 and $28,980 at December 31, 2018 and 2017, respectively, is included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. Impairment of Equity Method Investments Management gave consideration as to whether events or changes in circumstances had occurred since December 31, 2016 and 2017, respectively, that could indicate that the carrying amounts of its investments in the FSO Joint Venture and LNG Joint Venture were not recoverable as of December 31, 2017 and 2018, respectively. Management concluded that no such events or changes in circumstances had occurred to warrant an impairment testing at either date. In December 2016, evidence of an other-than-temporary decline in the fair value of the Company’s investments in its FSO Joint Venture below its carrying value was identified by the Company. Specifically, management concluded that the lower charter rate expected over the duration of the then recently awarded five-year service contracts commencing in the third quarter of 2017 was negative evidence indicating that the excess of the carrying value of the Company’s investment in these joint ventures over their fair value was other-than-temporary as of December 31, 2016. As the Company determined that other-than-temporary impairments existed in relation to its investments in the FSO Joint Venture, impairment charges aggregating $30,475 were recorded to write down the investments to their estimated fair values as of December 31, 2016. In estimating the fair value of the Company’s investments in the FSO Joint Ventures as of December 31, 2016, the Company utilized an income approach by preparing discounted cash flow models since there is a lack of comparable market transactions for the specially built assets held by the FSO Joint Venture. In preparing the discounted cash flow models, the Company used a methodology largely consistent with the methodology and assumptions detailed in Note 5, “Vessels, Deferred Drydock and Other Property” above with the exception being that as the assets owned by the joint ventures serve under specific service contracts, the estimated charter rates for periods after the expiry of the existing contracts were based upon management’s internally forecasted rates. The cash flows were discounted using the current estimated weighted average cost of capital for each joint venture, which approximated 9.5% and took into consideration country risk, entity size and uncertainty with respect to the cash flows for periods beyond the current charter expiries. Financial Information of Significant Equity Method Investments Investments in and advances to affiliated companies as reflected in the accompanying consolidated balance sheet as of December 31, 2018 consisted of: FSO Joint Venture of $136,988 , LNG Joint Venture of $112,212 and Other of $19,122 (which primarily relates to working capital deposits that the Company maintains for commercial pools in which it participates). Financial information for the equity method investees that were significant for the three years ended December 31, 2018, adjusted for basis and accounting policy differences, is as follows: For the year ended December 31, 2018 2017 2016 Shipping revenues $ 209,571 $ 234,916 $ 247,451 Ship operating expenses (112,541) (106,228) (114,487) Income from vessel operations 97,030 128,688 132,964 Other income 1,494 3,497 830 Interest expense (40,676) (36,831) (43,038) Income tax provision (3,433) (1,886) - Net income $ 54,415 $ 93,468 $ 90,756 Percentage of ownership in equity investees 49.9% - 50.0% 49.9% - 50.0% 49.9% - 50.0% Equity in income of affiliated companies, before consolidating and reconciling adjustments $ 27,187 $ 46,704 $ 45,355 Impairment of equity method investments in FSO Joint Venture - - (30,475) Amortization on deferred gain on 2009 sale of TI Africa to FSO Joint Venture 2,395 2,301 2,409 Amortization of interest capitalized during construction of LNG vessels (419) (419) (419) Other 269 380 (21) Equity in income of affiliated companies $ 29,432 $ 48,966 $ 16,849 The tables below present the financial position for the equity method investees that were significant and a reconciliation of the Company’s share of the joint ventures’ total equity to the investments in and advances to affiliates line on the consolidated balance sheets as of December 31, 2018 and 2017: As of December 31, 2018 2017 Current assets $ 55,768 $ 77,545 Vessels, net 1,280,853 1,344,613 Other assets 60,498 65,551 Total assets $ 1,397,119 $ 1,487,709 Current liabilities $ 118,323 $ 78,273 Long-term debt and other non-current liabilities 733,575 917,564 Equity 545,221 491,872 Total liabilities and equity $ 1,397,119 $ 1,487,709 Percentage of ownership in equity investees 49.9% - 50.0% 49.9% - 50.0% INSW Share of affiliate's equity, before consolidating and reconciling adjustments $ 272,405 $ 245,751 Impairment of equity method investments in FSO Joint Venture (30,475) (30,475) Advances from shareholders of FSO Joint Venture (2) 28,666 162,762 Unamortized deferred gain on 2009 sale of TI Africa to FSO Joint Venture, net (31,889) (34,284) Unamortized interest capitalized during construction of LNG vessels 9,856 10,275 INSW guarantee for FSO Term Loan 673 - Other (1) 19,086 24,865 Investments in and advances to affiliated companies $ 268,322 $ 378,894 (1) Primarily relates to working capital deposits that the Company maintains with the commercial pools in which it participates. (2) Such advances are unsecured, interest free and not repayable within one year. See Note 9, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” and Note 14, “Accumulated Other Comprehensive Loss,” for additional disclosures relating to the FSO and LNG joint venture interest rate swap agreements. |
VARIABLE INTEREST ENTITIES ("VI
VARIABLE INTEREST ENTITIES ("VIEs") | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities ("VIEs") [Abstract] | |
Variable Interest Entities ("VIEs") | NOTE 7 —VARIABLE INTEREST ENTITIES (“VIEs”): At December 31, 2018, the Company participates in s ix commercial pools and three joint ventures. Commercial pools operate a large number of vessels as an integrated transportation system, which offers customers greater flexibility and a higher level of service while achieving scheduling efficiencies. Participants in the commercial pools contribute one or more vessels and generally provide an initial contribution towards the working capital of the pool at the time they enter their vessels. The pools finance their operations primarily through the earnings that they generate. INSW enters into joint ventures to take advantage of commercial opportunities. INSW entities have entered into joint ventures with different partners (see Note 6, “Equity Method Investments”). In each joint venture, the INSW entities have the same relative rights and obligations and financial risks and rewards as its partners. INSW evaluated all nine arrangements to determine if they were variable interest entities (“VIEs”). INSW determined that one of the pools and two of the joint ventures met the criteria of a VIE and, therefore, INSW reviewed its participation in these VIEs to determine if it was the primary beneficiary of any of them. INSW reviewed the legal documents that govern the creation and management of the VIEs described above and also analyzed its involvement to determine if INSW was a primary beneficiary in any of these VIEs. A VIE for which INSW is determined to be the primary beneficiary is required to be consolidated in its financial statements. The formation agreements for the commercial pool state that the board of the pool has decision making power over their significant decisions. In addition, all such decisions must be approved unanimously by the board. Since INSW shares power to make all significant economic decisions that affect the pool and does not control a majority of the board, INSW is not considered a primary beneficiary of the pool. The FSO joint ventures described in Note 6, “Equity Method Investments,” were determined to be VIEs. The formation agreements of the joint ventures state that all significant decisions must be approved by the majority of the board. As a result, INSW shares power to make all significant economic decisions that affect this joint venture and does not control a majority of the board and is not considered a primary beneficiary. Accordingly, INSW accounts for these investments under the equity method of accounting. The joint ventures’ formation agreements require INSW and its joint venture partner to provide financial support as needed. INSW has provided and will continue to provide such support as described in Note 6, “Equity Method Investments.” The following table presents the carrying amounts of assets and liabilities in the consolidated balance sheets related to the VIEs described above as of December 31, 2018 and 2017: Consolidated Balance Sheet as of December 31, 2018 2017 Investments in Affiliated Companies $ 139,359 $ 255,456 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 and the Company’s potential obligations under its guarantee of the FSO Term Loan and associated interest rate swap . The table below compares the Company’s liability in the consolidated balance sheet to the maximum exposure to loss at December 31, 2018: Consolidated Balance Sheet Maximum Exposure to Loss Other Liabilities $ 673 $ 232,908 In addition, as of December 31, 2018, the Company had approximately $14,229 of trade receivables from pools that were determined to be VIEs. These trade receivables, which are included in voyage receivables in the accompanying 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 December 31, 2018. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt | NOTE 8 —DEBT: Debt consists of the following: December 31, December 31, 2018 2017 2017 Term Loan Facility, due 2022, net of unamortized discount and deferred finance costs of $20,032 and $23,074 $ 444,344 $ 523,489 2017 Revolver Facility, net of unamortized deferred finance costs of $552 - 29,448 ABN Term Loan Facility, due 2023, net of unamortized deferred finance costs of $845 25,879 - Sinosure Credit Facility, due 2027 - 2028, net of unamortized deferred finance costs of $2,664 290,620 - 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,402 23,598 - 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,705 26,226 - 810,667 552,937 Less current portion (51,555) (24,063) Long-term portion $ 759,112 $ 528,874 Capitalized terms used hereafter have the meaning given in these consolidated financial statements or in the respective transaction documents referred to below, including subsequent amendments thereto. 2017 Debt Facilities On June 22, 2017, INSW, its wholly owned subsidiary, International Seaways Operating Corporation (the “Administrative Borrower” or “ISOC”) and certain of its subsidiaries entered into secured debt facilities with Jefferies Finance LLC and JP Morgan Chase Bank, N.A., as joint lead arrangers, UBS Securities LLC, as joint bookrunner, DNB Markets Inc., Fearnley Securities AS, Pareto Securities Inc. and Skandinaviska Enskilda Banken AB (Publ) as co-managers, and the other lenders party thereto, consisting of (i) a revolving credit facility of $50,000 (the “2017 Revolver Facility”) and (ii) a term loan of $500,000 (the “2017 Term Loan Facility” and together with the 2017 Revolver Facility, the “2017 Debt Facilities”) containing an accordion feature whereby the 2017 Term Loan Facility could be increased up to an additional $50,000 subject to certain conditions. 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). 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. On June 22, 2017, the proceeds received from the 2017 Term Loan Facility were used to repay the $458,416 outstanding balance under the INSW Facilities (defined below) and to pay certain expenses related to the refinancing. The remaining proceeds will be used for general corporate purposes, including fleet renewal and growth. On July 19, 2017, the Company drew down $50,000 under the 2017 Revolver Facility, and on July 24, 2017, the Company entered into an amendment of the 2017 Debt Facilities (the “First Amendment”) to effect the increase of the 2017 Term Loan Facility by $50,000 , pursuant to the accordion feature described above. Except as related to such increase, no other terms of the 2017 Debt Facilities were amended. The net proceeds from these two borrowings were used for general corporate purposes, including funding the acquisition of two 2017-built Suezmax tankers as described above in Note 5, “Vessels.” On August 18, 2017, the outstanding balance under the 2017 Revolver Facility was repaid in full using cash on hand and proceeds of the sale of the 2001-built MR described in Note 5, “Vessels,” above. On November 6, 2017, the Company drew down $30,000 under the 2017 Revolver Facility in order to partially fund the acquisition of a 2010-built VLCC tanker as described above in Note 5, “Vessels.” 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. On June 14, 2018, the Company entered into an amendment of the 2017 Debt Facilities (the “2017 Debt Facilities Second Amendment”). The amendment (i) increased the interest rate margin from 4.50% per annum to 5.00% per annum for loans determined by the Alternate Base Rate (as defined in the 2017 Debt Facilities) and from 5.50% per annum to 6.00% per annum for any loan determined by reference to the Adjusted LIBOR Rate (as defined in the 2017 Debt Facilities) and (ii) allowed a dividend of $110,000 to be made from the Company's FSO Joint Venture to the Company without incorporating such funds into the cash sweep provisions of the 2017 Debt Facilities, (iii) permitted the acquisition of Gener8 Maritime Subsidiary VII, Inc. and its subsidiaries as Unrestricted Subsidiaries (as defined in the 2017 Debt Facilities) and permitted those entities and their assets to be subject to the Sinosure Credit Facility (as defined below) and be subject to its liens and permitted the funding of the certain liquidity and other accounts in connection with that acquisition and (iv) made certain other amendments to covenants under the 2017 Debt Facilities. As a condition to the effectiveness of the 2017 Debt Facilities, the Company prepaid $60,000 of the amount outstanding under the 2017 Term Loan Facility together with a premium equal to 1% of the $60,000 prepayment and paid a fee to the lenders of 1% of the 2017 Debt Facilities outstanding after that repayment. Interest on the 2017 Debt Facilities is calculated, at the Administrative Borrower’s option, based upon (i) an alternate base rate (“ABR”) plus the applicable margin or (ii) Adjusted LIBOR plus the applicable margin. ABR is defined as the highest of (i) the Base Rate ( i.e. , the prime rate published in The Wall Street Journal ), (ii) the Federal Funds Effective Rate plus 0.50% , (iii) the one-month Adjusted LIBOR Rate plus 1.00% and (iv) 2.00% per annum. The applicable margins and floor interest rates for each facility are as follows: Facility 2017 Term Loan Facility 2017 Revolver Facility Rate ABR LIBOR ABR LIBOR Floor 2.00% 1.00% 2.00% 1.00% Applicable Margin 5.00% 6.00% 2.50% 3.50% The 2017 Term Loan Facility amortizes in quarterly installments equal to 1.25% of the original principal amount of the loan, reduced by the $60,000 prepayment described above. The 2017 Term Loan Facility is subject to additional mandatory annual prepayments in an aggregate principal amount of 75% 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 year ended December 31, 2018. Accordingly, there is currently no mandatory prepayment expected during the first quarter of 2019. 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 December 31, 2018, permitted cash dividends that can be distributed to INSW by ISOC under the 2017 Term Loan Facility was $12,500 . 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 (as defined in the 2017 Debt Facilities) plus the aggregate Fair Market Value of certain joint venture equity interests and Gener8 Maritime Subsidiary VII, Inc. The Company had substantial headroom under this covenant as of December 31, 2018, with an estimated ratio of 39% . Sinosure Credit Facility As part of the Transaction, the Company financed the acquisition price of $434,000 with the assumption of debt secured by the six vessels under a China Export & Credit Insurance Corporation ("Sinosure") credit facility funded by The Export-Import Bank of China, Bank of China (New York Branch) and Citibank, N.A. The Company acceded as a guarantor to the Sinosure Credit Facility agreement originally dated November 30, 2015; as supplemented by a supplemental agreement dated December 28, 2015; as amended and restated by an amending and restating deed dated June 29, 2016; as supplemented by a supplemental agreement dated November 8, 2017; as supplemented by a consent, supplemental and amendment letter, dated April 2, 2018 (the facility agreement as of such date, the "Original Sinosure Facility"); and as amended and restated by an amending and restating agreement dated June 13, 2018 (the "2018 Amending and Restating Agreement"), by and among Gener8 Maritime Subsidiary VII, Inc., Seaways Holding Corporation, a wholly owned subsidiary of the Company, the Company, Citibank, N.A. (London Branch), the Export-Import Bank of China and Bank of China (New York Branch) (and its successors and assigns) and certain other parties thereto (the "Sinosure Credit Facility"). The Sinosure Credit Facility is a term loan facility comprised of six loans, each secured by one of the six VLCCs. As of the Closing Date, it had a principal amount outstanding of $310,968 and bears interest at a rate of 3-month LIBOR plus a margin of 2% . Each loan under the Sinosure Facility requires quarterly amortization payments of 1 2 / 3 % (based on the original outstanding amount of each Vessel loan) together with a balloon repayment payable on the termination date of each loan. Each of the loans under the Sinosure Credit Facility will mature 144 months after its initial utilization date. The 2018 Amending and Restating Agreement effects certain amendments to the Original Sinosure Facility as agreed between the parties thereto and necessitated by the Transaction. The Sinosure Credit Facility is guaranteed by the Company and Seaways Holding Corporation. On the Closing Date, the Company paid to Euronav cash consideration of approximately $120,025 , with the difference reflecting assumed debt and accrued interest thereon through the Closing Date. Supplemental cash flow information for the year ended December 31, 2018 associated with the aforementioned non-cash assumption of debt in relation to the acquisition of six VLCCs aggregating $310,968 were non-cash investing activities and financing activities. Under the Sinosure Credit Facility, the Obligors (as defined in the Sinosure Credit Facility) are required to comply with various collateral maintenance and financial covenants, including with respect to: (i) minimum security coverage, which shall not be less than 135% of the aggregate loan principal outstanding under the Sinosure Credit Facility. Any non-compliance with the minimum security coverage shall not constitute an event of default so long as within thirty days of such non-compliance, Gener8 Maritime Subsidiary VII, Inc. has either provided additional collateral or prepaid a portion of the outstanding loan balance to cure such non-compliance; (ii) maximum consolidated leverage ratio, which shall not be greater than 0.60 to 1.00 on any testing date occurring on or after June 30, 2018; (iii) minimum consolidated liquidity, under which unrestricted consolidated cash and cash equivalents shall be no less than $25,000 at any time and total consolidated cash and cash equivalents (including cash restricted under the Sinosure Credit Facility) shall not be less than the greater of $50,000 or 5.0% of Total Indebtedness (as defined in the Sinosure Credit Facility) or $9,000 (i.e., $1,500 per each VLCC securing the Sinosure Credit Facility); and (iv) interest expense coverage ratio, which for Seaways Holding Corporation, shall not be less than 2.00 to 1.00 during the period commencing on July 1, 2018 through June 30, 2019 and will be calculated on a trailing six, nine and twelve-month basis from December 31, 2018, March 31, 2019 and June 30, 2019, respectively. For the Company, the interest expense coverage ratio shall not be less than 2.25 to 1.00 for the period commencing on July 1, 2019 through June 30, 2020 and no less than 2.50 to 1.00 for the period commencing on July 1, 2020 and thereafter and shall be calculated on a trailing twelve-month basis. No event of default under this covenant will occur if the failure to comply is capable of remedy and is remedied within thirty days of the Facility Agent giving notice to the Company or (if earlier) any Obligor becoming aware of the failure to comply, and (i) if such action is being taken with respect to a Test Date falling on or prior to December 31, 2019, then such remedy shall be in the form of cash and cash equivalents being (or having been) deposited by Seaways Holding Corporation to a restricted Minimum Liquidity Account within the thirty day period mentioned above in the manner and in the amounts required to remedy such breach as tested at the Seaways Holding Corporation level and (ii) if such action is being taken with respect to a Test Date falling on or after January 1, 2020, then any such remedy and the form of the same shall be considered and determined by the l enders under the Sinosure Credit Facility in their absolute discretion. On March 1, 2019, the Sinosure Credit Facility lenders consented to extending the interest expense coverage ratio cure remedy discussed above based on the Consolidated EBITDA of Seaways Holding Corporation for an additional period of one year to Test Dates falling on or prior to December 31, 2020. The Sinosure Credit Facility also requires the Company to comply with a number of covenants, including the delivery of quarterly and annual financial statements, budgets and annual projections; maintaining required insurances; compliance with laws (including environmental); compliance with the Employee Retirement Income Security Act of 1974 (“ERISA”) ; maintenance of flag and class of the collateral vessels; restrictions on consolidations, mergers or sales of assets; limitations on liens; limitations on issuance of certain equity interests; limitations on transactions with affiliates; and other customary covenants and related provisions. As of December 31, 2018, the Company was in compliance with all such covenants that were in effect on such date. ABN Term Loan Facility On June 7, 2018, the Company entered into a credit agreement, secured by the Seaways Raffles, a VLCC tanker, by and among, inter alia, Seaways Shipping Corporation, a Marshall Islands corporation and wholly-owned indirect subsidiary of the Company, the Company (as a guarantor), another guarantor which is an indirect subsidiary of the Company, the lenders named therein and ABN AMRO Capital USA LLC as mandated lead arranger and facility agent (the "ABN Term Loan Facility"), for an aggregate principal amount of up to the lesser of (i) $29,150 , and (ii) 55% of the fair market value of the Seaways Raffles. On June 12, 2018, the Company drew down approximately $28,463 . The ABN Term Loan Facility bears interest at a rate of 3-month LIBOR plus a margin of 3.25% and is repayable in 19 quarterly installments of approximately $869 with a final balloon payment due on the maturity date in the second quarter of 2023. Additionally, the ABN Term Loan Facility includes certain financial covenants and is guaranteed by the Company. The Company's guarantee is unsecured. The Company used the proceeds from the ABN Term Loan Facility to fund a portion of the Transaction. The ABN Term Loan Facility requires Seaways Shipping Corporation to maintain a minimum unrestricted cash balance of $825 per vessel and a balance of $2,500 and up to $2,100 in a debt service reserve accounts and a dry dock reserve account, respectively, and provides for a restriction on dividends unless minimum unrestricted cash levels are maintained and Seaways Shipping Corporation is in compliance with its covenants. The ABN Term Loan Facility also has a vessel value maintenance clause that requires the Company to ensure that the fair market value of the Seaways Raffles is at all times not less than 150% of the outstanding principal amount of the loan. The Company was in compliance with these covenants as of December 31, 2018. The ABN Term Loan Facility also requires that the loan agreement be amended as soon as reasonably practical following the effective date of the loan to incorporate financial covenants (other than the vessel value maintenance covenant) included in other loan facilities or agreements evidencing indebtedness (with principal balances in excess of $50,000 ) to which the Company becomes a party, that are deemed to be materially more advantageous to the lenders under such agreements than those currently required by the ABN Term Loan Facility. The Company expects to execute such an amendment during the first quarter of 2019. The ABN Term Loan Facility also requires the Company to comply with a number of covenants, including the delivery of quarterly and annual financial statements, budgets and annual projections; maintaining required insurances; compliance with laws (including environmental); compliance with ERISA; maintenance of flag and class of the Seaways Raffles; restrictions on consolidations, mergers or sales of assets; limitations on liens; limitations on issuance of certain equity interests; limitations on the payment of dividends or other distributions; limitations on transactions with affiliates; and other customary covenants and related provisions. 8.5% Senior Notes On May 31, 2018, the Company completed a registered public offering of $25,000 aggregate principal amount of its 8.5% senior unsecured notes due 2023 (the “8.5% Senior Notes”), which resulted in aggregate net proceeds to the Company of approximately $23,458 , after deducting commissions and estimated expenses. The Company used the net proceeds to fund the Transaction, to repay a portion of its outstanding 2017 Debt Facility and for general corporate purposes. The Company issued the Notes under an indenture dated as of May 31, 2018 (the “Base Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”), as supplemented by a supplemental indenture dated as of May 31, 2018 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and the Trustee. The Notes will mature on June 30, 2023 and bear interest at a rate of 8.50% per annum. Interest on the Notes will be payable in arrears on March 30, June 30, September 30 and December 30 of each year, commencing on September 30, 2018. The terms of the Indenture, among other things, limit the Company’s ability to merge, consolidate or sell assets. The Company may redeem the Notes at its option, in whole or in part, at any time on or after June 30, 2020 at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. In addition, if the Company undergoes a Change of Control (as defined in the Indenture) the Company may be required to repurchase all of the Notes at a purchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest (including additional interest, if any), to, but excluding, the repurchase date. The Indenture contains certain restrictive covenants, including covenants that, subject to certain exceptions and qualifications, restrict our ability to make certain payments if a default under the Indenture has occurred and is continuing or will result therefrom and require us to limit the amount of debt we incur, maintain a certain minimum net worth and provide certain reports. The Indenture also provides for certain customary events of default (subject, in certain cases, to receipt of notice of default and/or customary grace or cure periods). Pursuant to the limitation on borrowings covenant, the Company shall not permit Total Borrowings (as defined in the Indenture) to equal or exceed 70% of Total Assets (as defined in the Indenture). The Company shall also ensure that Net Worth (defined as Total Assets, less Intangible assets and Total Borrowings, as defined in the Indenture) exceeds $600,000 pursuant to the Minimum Net Worth covenant. The Company was in compliance with financial covenants under the 8.5% Senior Notes as of December 31, 2018. 10.75% Subordinated Notes On June 13, 2018, the Company completed the sale of $30,000 of its 10.75% subordinated step-up notes due 2023 (the "10.75% Subordinated Notes") in a private placement to certain funds and accounts managed by BlackRock, Inc. ("BlackRock") (the "Private Placement"). The 10.75% Subordinated Notes are unsecured and rank junior to the 8.5% Senior Notes, the Company's guarantees of the 2017 Debt Facilities, the ABN Term Loan Facility and Sinosure Credit Facility and other unsubordinated indebtedness of the Company. The Private Placement resulted in aggregate proceeds to the Company of approximately $28,000 , after deducting fees paid to the purchasers of those notes and estimated expenses. The Company used the net proceeds from the Private Placement to fund a portion of the Transactions and the offer to prepay $60,000 of the 2017 Debt Facilities pursuant to the Second Amendment. On September 17, 2018, the Company repurchased $2,069 of the 10.75% Subordinated Notes at a price equal to 100% of the principal amount. The 10.75% Subordinated Notes were issued under an indenture dated as of June 13, 2018 (the "Subordinated Notes Indenture"), between the Company and GLAS Trust Company LLC, as trustee (the "Subordinated Notes Trustee"). On December 28, 2018, the Company entered into a supplemental indenture (the “First Supplemental Indenture”) with the Subordinated Notes Trustee to amend the terms of the 10.75% Subordinated Notes to, among other matters, more closely reflect the asset sale provisions of the 2017 Term Loan Facility. As a condition to the effectiveness of the First Supplemental Amendment, the Company paid a fee to the holders of the Notes of 0.50% of the outstanding amounts of the Notes. The 10.75% Subordinated Notes bear interest from June 13, 2018 at an annual rate of 10.75%; provided that the 10.75% Subordinated Notes shall bear interest at the rate of 13.00% per annum beginning on the earlier of (i) December 15, 2020 and (ii) if the Refinance Date (as defined below) has occurred, the later of the Refinance Date and June 15, 2020. Interest on the 10.75% Subordinated Notes is payable quarterly in arrears on the 15th day of March, June, September and December of each year, commencing on September 15, 2018. The stated maturity date of the 10.75% Subordinated Notes is June 15, 2023 ; provided that in certain circumstances after the indebtedness outstanding under the 2017 Debt Facilities (as amended by the Second Amendment) ceases to be outstanding (such date, the "Refinance Date"), the stated maturity of the 10.75% Subordinated Notes will become June 15, 2022. The 10.75% Subordinated Notes may be redeemed, in whole or in part, at any time prior to June 15, 2020, at a redemption price equal to 100% of the aggregate principal amount of the 10.75% Subordinated Notes being redeemed, plus accrued and unpaid interest to, but not including, the date of redemption, plus a "make-whole" premium. On or after June 15, 2020, the 10.75% Unsecured Subordinated Notes may be redeemed at par, plus accrued and unpaid interest. The 10.75% Subordinated Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Subordinated Notes Indenture contains covenants requiring the Company to maintain a minimum net worth similar to that required by the 8.5% Senior Notes. The Subordinated Notes Indenture also contains covenants restricting the ability of the Company and its subsidiaries to incur additional indebtedness, sell assets, incur liens, amend the 2017 Debt Facilities, enter into sale and leaseback transactions and enter into certain extraordinary transactions. In addition, the Subordinated Notes Indenture prohibits the Company from paying any dividends unless certain financial and other conditions are satisfied. The Subordinated Notes Indenture also contains events of default consistent with those under the 2017 Debt Facilities. The Company was in compliance with the covenants under the Subordinated Notes Indenture as of December 31, 2018. INSW Facilities On June 22, 2017, the agreements governing the INSW Facilities — a secured term loan facility in the aggregate amount of $628,375 (the “INSW Term Loan”) and a secured revolving loan facility of up to $50,000 (the “INSW Revolver Facility”), dated as of August 5, 2014, as amended by that certain First Amendment, dated as of June 3, 2015, that certain Second Amendment, dated as of July 18, 2016, that certain Third Amendment, dated as of September 20, 2016 and that certain Fourth Amendment, dated as of November 30, 2016, among INSW, OIN Delaware LLC (the sole member of which is INSW), certain INSW subsidiaries, Jefferies Finance LLC, as administrative agent, and other lenders party thereto, were terminated in accordance with their terms. Interest Expense The following table summarizes 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, recognized during the years ended December 31, 2018, 2017 and 2016 with respect to the Company’s debt facilities: Debt facility 2018 2017 2016 2017 Term Loan Facility, due 2022 $ 45,601 $ 22,546 $ - 2017 Revolver Facility 475 495 - ABN Term Loan Facility, due 2023 1,024 - - Sinosure Credit Facility, due 2027 - 2028 8,350 - - 8.5% Senior Notes, due 2023 1,396 - - 10.75% Subordinated Notes, due 2023 2,032 - - INSW Facilities, due 2019 - 16,743 38,442 Total debt related interest expense $ 58,878 $ 39,784 $ 38,442 The following table summarizes interest paid, excluding deferred financing fees paid, and capitalized interest, during the years ended December 31, 2018, 2017 and 2016 with respect to the Company’s debt facilities: Debt facility 2018 2017 2016 2017 Term Loan Facility, due 2022 $ 42,825 $ 16,319 $ - 2017 Revolver Facility 442 316 - ABN Term Loan Facility, due 2023 795 - - Sinosure Credit Facility, due 2027 - 2028 7,225 - - 8.5% Senior Notes, due 2023 1,250 - - 10.75% Subordinated Notes, due 2023 1,591 - - INSW Facilities, due 2019 - 16,732 33,039 Total debt related interest expense paid $ 54,128 $ 33,367 $ 33,039 Debt Modifications, Repurchases and Extinguishments During the year ended December 31, 2018, the Company incurred debt issuance and amendment costs aggregating $14,648 in connection with the ABN Term Loan Facility, Sinosure Credit Facility, 8.5% Senior Notes, 10.75% Subordinated Notes (and the subsequent amendment thereto), and the 2017 Debt Facilities Second Amendment. Debt issuance and amendment fees paid to all lenders and third-party fees associated with the ABN Term Loan Facility, Sinosure Credit Facility, 8.5% Senior Notes, and 10.75% Subordinated Notes totaled $7,677 , of which $7,568 were capitalized as deferred finance charges and $109 was expensed and is included in third-party debt modification fees in the consolidated statement of operations. Debt amendment fees paid to lenders and third-party fees associated with the 2017 Debt Facilities Second Amendment totaled $6,971 , of which $4,479 were capitalized as deferred finance charges. The remaining $2,492 was expensed, of which $1,197 is included in third-party debt modification fees in the consolidated statement of operations and $1,295 of debt extinguishment costs are included in other expense in the consolidated statement of operations. In addition, aggregate net losses of $2,400 for the year ended December 31, 2018 recognized on the repurchases of the Company’s debt facilities, is included in other expense in the consolidated statement of operations. The net loss reflects a write-off of unamortized original issue discount and deferred financing costs associated with the principal prepayment of $60,000 made in connection with the 2017 Debt Facilities Second Amendment and the repurchase of $2,069 of the 10.75% Subordinated Notes, which were treated as partial extinguishments. Debt issuance and amendment costs incurred and capitalized as deferred finance charges have been treated as a reduction of debt on the consolidated balance sheets. During the year ended December 31, 2017, the Company incurred issuance costs aggregating $24,307 in connection with the 2017 Debt Facilities. Issuance costs paid to all lenders and third-party fees associated with lenders of the 2017 Debt Facilities who had not participated in the INSW Facilities aggregating $15,067 were capitalized as deferred finance charges. (See Note 2, “Significant Accounting Policies,” for additional information relating to deferred financing charges). Third party fees associated with the First Amendment and with lenders of the 2017 Debt Facilities who had participated in the INSW Facilities aggregating $9,240 , for the year ended December 31, 2017 were expensed and included in third-party debt modification fees in the consolidated statement of operations. In addition, an aggregate net loss of $7,020 for the year ended December 31, 2017 realized on the modification of the Company’s debt facilities, is included in other expense in the consolidated statement of operations. The net loss reflects a write-off of unamortized original issue discount and deferred financing costs associated with the INSW Facilities, which were treated as partial extinguishments. Issuance costs incurred with respect to the 2017 Debt Facilities have been treated as a reduction of debt proceeds. During the year ended December 31, 2016, the Company paid deferred financing fees of $8,273 in connection with amendments to the INSW Facilities. Such fees were capitalized as deferred finance charges. During the year ended December 31, 2016, INSW made repurchases of the INSW Term Loan in the open market of $68,922 and mandatory principal prepayments of $83,832 . The aggregate net losses of $1,342 realized on these transactions for the year ended December 31, 2016, is included in other expense in the consolidated statement of operations. The net loss reflects a $5,097 write-off of unamortized original issue discount and deferred financing costs associated with the principal reductions which were treated as partial extinguishments and a $3,755 discount on repurchase of debt for the year ended December 31, 2016. Third party legal and consulting fees (aggregating $225 ) incurred by INSW in relation to the open market repurchases are included in general and administrative expenses in consolidated statement of operations for the year ended December 31, 2016. As of December 31, 2018, the aggregate annual principal payments required to be made on the Company’s debt facilities are as follows: Year Amount 2019 $ 51,555 2020 51,555 2021 51,555 2022 417,930 2023 89,330 Thereafter 175,390 Aggregate principal payments required $ 837,315 |
Parent Company [Member] | |
Debt | NOTE B— DEB T: Debt consists of the following: As of December 31, 2018 2017 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,402 $ 23,598 $ - 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,705 26,226 - 49,824 - Less current portion - - Long-term debt $ 49,824 $ - T he Parent completed the s ale of $25,000 of its 8.50% notes (the "8.50% Senior Notes") in an SEC-registered offering in May 2018 and the s ale of $30,000 of its 10.75% subordinated step-up notes due 2023 (the "10.75% Subordinated Notes") in a private placement to certain funds and accounts managed by BlackRock, Inc. ("BlackRock") on June 13, 201 8. The Parent made capital contributions totaling $56,899 to ISOC during 2018 to finance the acquisition of the Six VLCCs and to fund general working capital needs, out of which $56,942 was paid and reflected in the condensed statement of cash flows as cash flows used in investing activities and $43 is included in intercompany receivables in the condensed consolidated balance sheet as of December 31, 2018. As of December 31, 2018, the aggregate annual principal payments required to be made on the 8.5% Senior Notes and 10.75% Unsecured Subordinated Notes and are as follows: Year Amount 2019 $ - 2020 - 2021 - 2022 - 2023 52,931 Aggregate principal payments required $ 52,931 During the year ended December 31, 2018, the Parent paid issuance costs in connection with 8.5% Senior Notes and 10.75% Subordinated Notes aggregating $3, 727 , of which $3,683 were capitalized as deferred finance charges and $44 is included in third-party debt modification fees in the condensed statement of operations and comprehensive loss. The net loss of $128 included in other expense for the year ended December 31, 2018 reflects a write-off of unamortized original issue discount and deferred financing costs associated with the redemption of $2,069 of the 10.75% Subordinated Notes, which were treated as partial extinguishments. Issuance costs incurred and capitalized as deferred finance charges have been treated as a reduction of debt proceeds. An aggregate net loss of $7,020 for the year ended December 31, 2017 realized on the modification of the Parent ’s debt facilities, is included in other expense in the condensed statement of operations and comprehensive loss. The net loss reflects a write-off of unamortized original issue discount and deferred financing costs associated with the INSW Facilities, which were treated as partial extinguishments. The remaining balance of unamortized deferred financing costs were concurrently transferred to ISOC. During the year ended December 31, 2016, the Parent paid deferred financing fees of $8,273 in connection with amendments to the INSW Facilities. Such fees were capitalized as deferred finance charges. During the year ended December 31, 2016, the Parent made repurchases of the INSW Term Loan in the open market of $68,922 and mandatory principal prepayments of $83,832 . The aggregate net losses of $1,342 realized on these transactions for the year ended December 31, 2016, is included in other expense in the condensed statement of operations and comprehensive loss . The net loss for the year ended December 31, 2016 reflects a $5,097 write-off of unamortized original issue discount and deferred financing costs associated with the principal reductions which were treated as partial extinguishments and a $3,755 discount on repurchase of debt. Third party legal and consulting fees (aggregating $225 ) incurred by the Parent in relation to the open market repurchases are included in general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2016. See Note 8, “Debt,” to the Company’s consolidated financial statements set forth in Item 8, “Financial Statements and Supplementary Data,” for information with respect to the Parent’s debt. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures | NOTE 9 — 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 and restricted cash— The carrying amounts reported in the consolidated balance sheets for interest-bearing deposits approximate their fair value. Debt— The fair value of borrowings under the 2017 Term Loan Facility and the 8.50% Senior Notes is estimated based on quoted market prices. The carrying amount of the borrowings under Sinosure Credit Facility and the ABN Term Loan Facility approximates the fair value. The fair value of borrowing under the 10.75% Subordinated Notes is estimated using contractual cash flows discounted at the market yield as of December 31, 2018 for a debt instrument with a credit rating similar to that of the Company. 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. For interest rate caps and swaps, 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. 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, at December 31, 2018 and 2017, are as follows: Fair Value Level 1 Level 2 December 31, 2018: Cash and cash equivalents (1) $ 117,644 $ 117,644 $ - 2017 Term Loan Facility (459,731) - (459,731) ABN Term Loan Facility (26,724) - (26,724) Sinosure Credit Facility (293,284) - (293,284) 8.5% Senior Notes (22,960) (22,960) - 10.75% Subordinated Notes (29,094) - (29,094) 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 $59,331 and $10,579 at December 31, 2018 and 2017, respectively. Derivatives The Company manages its exposure to interest rate volatility risks by using derivative instruments. Interest Rate Risk The Company uses interest rate caps and swaps for the management of interest rate risk exposure associated with changes in LIBOR interest rate payments due on its credit facilities. INSW is party to an interest rate cap agreement (“Interest Rate Cap”) with a major financial institution covering a notional amount of $350,000 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 contains no leverage features. The Interest Rate Cap has a cap rate of 2.605% through the termination date of December 31, 2020 . The Company is also party to a floating-to-fixed interest rate swap agreement (“Interest Rate Swap”) with a major financial institution covering a notional amount of $293,284 at December 31, 2018 that effectively converts the Company’s interest rate exposure under the Sinosure Credit Facility from a floating rate based on 3-month LIBOR to a fixed LIBOR rate of 2.99% through the termination date of March 21, 2022 . The Interest Rate Swap agreement is designated and qualified as a cash flow hedge and contains no leverage features. The Company has elected to apply hedge accounting and designated its interest rate cap and interest rate swap as cash flow hedges. Tabular disclosure of derivatives location Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of offset exists. The following tables present information with respect to the fair values of derivatives reflected in the December 31, 2018 and 2017 balance sheets on a gross basis by transaction: Fair Values of Derivative Instruments: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount December 31, 2018: Derivatives designated as hedging instruments: Interest rate cap: Current portion Current portion of derivative asset $ 460 Current portion of derivative liability $ - Long-term portion Long-term derivative asset 704 Long-term derivative liability - Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (707) Long-term portion Long-term derivative asset - Long-term derivative liability (1,922) Total derivatives designated as hedging instruments $ 1,164 $ (2,629) December 31, 2017: Derivatives designated as hedging instruments: Interest rate cap: Current portion Current portion of derivative asset $ 16 Current portion of derivative liability $ - Long-term portion Long-term derivative asset 886 Long-term derivative liability - Total derivatives designated as hedging instruments $ 902 $ - The following tables present information with respect to gains and losses on derivative positions reflected in the consolidated statements of operations or in the consolidated statements of other comprehensive loss. The effect of cash flow hedging relationships recognized in other comprehensive loss excluding amounts reclassified from accumulated other comprehensive loss (effective portion), including hedges of equity method investees, for the years ended December 31, 2018, 2017 and 2016 follows: For the year ended December 31, 2018 2017 2016 Interest rate swaps $ (1,948) $ (1,132) $ (3,050) Interest rate cap 261 (8) (2) Total $ (1,687) $ (1,140) $ (3,052) The effect of cash flow hedging relationships on the consolidated statements of operations is presented excluding hedges of equity method investees. The effect of the Company’s cash flow hedging relationships on the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016 is shown below: Statement of Operations Effective Portion of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss Ineffective Portion Amount of Amount of Location Gain/(Loss) Location Gain/(Loss) For the year ended December 31, 2018: Interest rate cap Interest expense $ (21) Interest expense $ - Interest rate swaps Interest expense (471) Interest expense - Total $ (492) $ - For the year ended December 31, 2017: Interest rate cap Interest expense $ (131) Interest expense $ - Total $ (131) $ - For the year ended December 31, 2016: Interest rate cap Interest expense $ (517) Interest expense $ - Total $ (517) $ - See Note 6, “Equity Method Investments,” for additional information relating to derivatives held by the Company’s equity method investees and Note 14, “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 2 Assets/(Liabilities) at December 31, 2018 Derivative Assets (interest rate cap) $ 1,164 $ 1,164 (1) Derivative Liabilities (interest rate swaps) (2,629) (2,629) (1) Assets/(Liabilities) at December 31, 2017 Derivative Assets (interest rate cap) $ 902 $ 902 (1) (1) For the interest rate caps and swaps, 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. The following table summarizes the fair values of assets for which an impairment charge was recognized for the year ended December 31, 2018: Impairment Description Fair Value Level 2 Charges Crude Tankers - Vessels held and used (1)(2) $ 7,025 $ 7,025 $ (948) Crude Tankers - Vessels held for sale (1)(2) $ 17,665 $ 17,665 $ (16,419) Product Tankers - Vessels held and used (1)(2) $ 9,000 $ 9,000 $ (1,670) (1) Pre-tax impairment charges of $948 related to one Panamax vessel in the Crude Tanker segment, $16,419 related to one VLCC vessel in the Crude Tanker segment and $1,670 related to one MR vessel in the Product Tankers segment were recorded during the three-month periods ended June 30, 2018, September 30, 2018 and December 31, 2018, respectively. The held-for-sale impairment charges aggregating $16,419 as of September 30, 2018 included a charge of $14,226 to write the value of the vessel down to its estimated fair value, estimated costs to sell the vessel of $361 , and write-off of assets on the vessel of $1,832 which were incurred as a result of held-for-sale impairment. (2) Fair value measurement of $7,025 at June 30, 2018 used to determine the impairment for one Panamax vessel and fair value measurement of $17,665 at September 30, 2018 used to determine impairment for one VLCC vessel were based upon a market approach, which considered the expected sale prices of the vessels based on executed memorandums of agreement for the sale of each of the vessels as discussed in Note 5, "Vessels, Deferred Drydock and Other Property." Fair value measurement of $9,000 at December 31, 2018 used to determine impairment for one MR vessel was based upon a market approach, which considered a combination of third-party appraisals and the Company’s recently executed sale transaction for a sister ship. Because sales of vessels occur somewhat infrequently the expected sales prices are considered to be Level 2. |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 10 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES: At December 31, 2018 2017 Accounts payable $ 1,164 $ 330 Payroll and benefits 4,510 5,897 Interest 770 3,437 Due to owners on chartered in vessels 870 867 Accrued drydock, repairs and vessel betterment costs 1,974 981 Bunkers and lubricants 1,833 1,893 Charter revenues received in advance 450 1,775 Insurance 573 575 Accrued vessel expenses 6,816 3,369 Accrued general and administrative expenses 1,364 1,599 Other 2,650 2,082 Total accounts payable, accrued expense and other current liabilities $ 22,974 $ 22,805 |
TAXES
TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Taxes [Abstract] | |
Taxes | NOTE 11 —TAXES: Income taxes are provided using the asset and liability method, such that income taxes are recorded based on amounts refundable or payable in the current year and include the results of any differences in the basis of assets and liabilities between U.S. GAAP and tax reporting. 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 does not impose income tax on shipping operations. The Company also has or had subsidiaries in various jurisdictions that performed administrative, commercial or technical management functions. These subsidiaries are subject to income taxes based on the services performed in countries in which those particular offices are located and, accordingly, current and deferred income taxes are recorded. INSW, including its subsidiaries, which are disregarded entities for U.S. Federal income tax purposes, is exempt from taxation on its U.S. source shipping income under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations. INSW qualified for this exemption because its common shares were treated as primarily and regularly traded on an established securities market in the United States or another qualified country and for more than half of the days in the taxable year ended December 31, 2018, less than 50 percent of the total vote and value of the Company’s stock was held by one or more shareholders who each owned 5% or more of the vote and value of the Company’s stock. Beginning in 2019, to the extent INSW is unable to qualify for exemption from tax under Section 883, INSW will be subject to U.S. federal taxation of 4% of its U.S. source shipping income on a gross basis without the benefit of deductions. Shipping income that is attributable to transportation that begins or ends, but that does not both begin and end, in the U.S. will be considered to be 50% derived from sources within the U.S. Shipping income attributable to transportation that both begins and ends in the U.S. will be considered to be 100% derived from sources within the U.S. INSW does not engage in transportation that gives rise to 100% U.S. source income. Shipping income attributable to transportation exclusively between non-U.S. ports will be considered to be 100% derived from sources outside the U.S. Shipping income derived from sources outside the U.S. will not be subject to any U.S. federal income tax. INSW’s vessels operate in various parts of the world, including to or from U.S. ports. There can be no assurance that INSW will continue to qualify for the Section 883 exemption. A substantial portion of income earned by INSW is not subject to income tax, and no deferred taxes are provided on the temporary differences between the tax and financial statement basis of the underlying assets and liabilities for those subsidiaries not subject to income tax in their respective countries of incorporation. 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 consolidated statements of operations. The components of the income tax benefits/(provisions) follow: For the year ended December 31, 2018 2017 2016 Current $ 105 $ (44) $ (440) Deferred - - - Income tax benefit/(provision) $ 105 $ (44) $ (440) The differences between income taxes expected at the Marshall Islands statutory income tax rate of zero percent and the reported income tax benefits/(provisions) are summarized as follows: For the year ended December 31, 2018 2017 2016 Marshall Islands statutory income tax rate - % - % - % Change in valuation allowance (0.66) % (0.78) % (25.29) % Liquidation of subsidiaries - % 0.88 % 29.53 % Income subject to tax in other jurisdictions 0.54 % (0.06) % (1.76) % Effective income tax rate (0.12) % 0.04 % 2.48 % The significant components of the Company’s deferred tax liabilities and assets follow: As of December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 1,435 $ 1,178 Excess of tax over book basis of depreciable assets 548 548 Pensions 2,007 2,852 Total deferred tax assets 3,990 4,578 Less: Valuation allowance (3,990) (4,578) Deferred tax assets, net - - Net noncurrent deferred tax assets/(liabilities) $ - $ - As of December 31, 2018 and 2017, the Company had net operating loss carryforwards of $8,441 and $6,931 , respectively. The net operating loss carryforward of $8,441 as of December 31, 2018 has an indefinite life. The Company believes that it is more likely than not that the benefit from its net operating loss carryforwards and certain other deferred tax assets will not be realized and has maintained a valuation allowance of $3,990 and $4,578 , respectively, as of December 31, 2018 and 2017. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction of income tax expense in the period such reversal occurs. During 2018, the Company decreased its valuation allowance by $588 primarily as a result of a change in unfunded benefit obligation related to defined benefit pension plan in the United Kingdom. The following is tabular rollforward of the Company’s unrecognized tax benefits (excluding interest and penalties) which are included in other current liabilities in the consolidated balance sheets: 2018 2017 Balance of unrecognized tax benefits as of January 1, $ 153 $ 153 Decreases for positions taken in prior years (70) - Increases for positions taken in current year 1 - Settlement (77) - Balance of unrecognized tax benefits as of December 31, $ 7 $ 153 The Company records interest on unrecognized tax benefits in its provision for income taxes. Accrued interest is included in other current liabilities in the consolidated balance sheets. As of December 31, 2018 and 2017, the Company has recognized a total liability for interest of $4 and $51 , respectively. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTIES [Abstract] | |
RELATED PARTIES | NOTE 12 —RELATED PARTIES: The following tables show certain related party transactions between INSW and OSG: For the year ended December 31, 2018 2017 2016 Corporate overhead allocations from OSG General and administrative $ - $ - $ 21,486 Depreciation - - 517 Separation and transition costs - - 6,569 Reorganization items, net - - 131 Total corporate overhead allocations from OSG $ - $ - $ 28,703 Payable to OSG aggregating $34 as of December 31, 2018 was related to a guarantee provided by OSG as described below. Payables to OSG aggregating $367 as of December 31, 2017 were primarily in relation to the spin-related agreements described below. A full and final payment of all amounts due to OSG under the spin-related agreements was made during the first quarter of 2018. Transition Services Agreement and Other Spin-off Related Activity On November 30, 2016, INSW entered into a separation and distribution agreement (the “Separation and Distribution Agreement”) with OSG, which among other things, (i) governed the transfer of assets and liabilities between both entities, (ii) terminated all intercompany arrangements between INSW and OSG except for specified agreements and arrangements, (iii) contained terms and conditions that generally require INSW and OSG to use commercially reasonable efforts to consummate the transactions contemplated by the Separation and Distribution Agreement and the ancillary agreements, (iv) released certain claims between the parties and their affiliates, successors and assigns, (v) contained mutual indemnification provisions and (vi) allocated expenses of the spin-off between the parties. Following the true up of final separation costs between INSW and OSG, income of $64 was recognized during the year ended December 31, 2017, in conjunction with the Separation and Distribution Agreement. During the year ended December 31, 2016, spin-off related expenses incurred by INSW pursuant to the Separation and Distribution Agreement aggregated $9,043 . Approximately $3,337 of these costs represented INSW’s allocated share of severance costs for certain individuals that departed OSG in conjunction with the spin-off of INSW. INSW and OSG also entered into a transition services agreement (the “TSA” or “Transition Services Agreement”) pursuant to which both parties agreed to provide each other with specified services for a limited time to help ensure an orderly transition following the Distribution. The Transition Services Agreement specifies the calculation of the costs for these services. Pursuant to the terms of the agreement, OSG provided certain administrative services, including administrative support services related to benefit plans, human resources and legal services, for a transitional period after the spin-off. Similarly, INSW agreed to provide certain limited transition services to OSG, including services relating to accounting activities and information and data provision services. The Transition Services Agreement terminated on June 30, 2017. During the years ended December 31, 2017 and 2016, INSW earned fees totaling $63 and $27 , respectively for services provided to OSG pursuant to the terms of the Transition Services Agreement. During the years ended December 31, 2017 and 2016, INSW also incurred fees totaling $731 and $31 , respectively, 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. INSW and OSG also entered into an employee matters agreement (the “Employee Matters Agreement”), which addressed the allocation and treatment of assets and liabilities relating to employees and compensation and benefit plans and programs in which INSW employees participated, including equity incentive plans. The Employee Matters Agreement also governs the transfer of employees between OSG and INSW in connection with the Distribution, and set forth certain obligations for reimbursements and indemnities between OSG and INSW. Corporate Overhead Allocations from OSG During 2016, the Company benefited from certain corporate functions provided by OSG. In addition, certain entities within INSW incurred similar costs in respect of corporate functions that provided services to non-INSW subsidiaries of OSG. An allocation of these corporate expenses, including legal costs related to certain litigation undertaken by OSG, has been reflected in the consolidated financial statements in general and administrative expenses, depreciation and amortization and reorganization items, net. Income earned directly by OSG is not subject to allocation because it is not directly related to the INSW business. Reorganization items, net for the year ended December 31, 2016, includes a credit for the recovery of costs allocated to INSW in prior years related to certain litigation undertaken by OSG that was settled by OSG in February 2016. 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. The MOQ Guarantee expired following the receipt of the notification letter from Qatari tax authorities in January 2019 that the FSO Joint Venture has paid all Qatari taxes owed by the FSO Joint Venture. 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 Term Loan 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 guarantee of the FSO Term Loan has financial covenants that provide (i) INSW’s Liquid Assets shall not be less than the higher of $50,000 and 5% of Total Indebtedness of INSW, (ii) INSW shall have Cash of at least $30,000 and (iii) INSW is in compliance with the Loan to Value Test (as such capitalized terms are defined in the Company guarantee 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 8, “Debt”). As of December 31, 2018, the maximum aggregate potential amount of future principal payments (undiscounted) relating to equity method investees secured bank debt and interest rate swap obligations that INSW could be required to make was $93,548 and the carrying value of the Company’s guaranty of these obligations in the accompanying consolidated balance sheet was $673 . 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 paid a $135 fee to OSG for 2018, which will increase to $145 per year in 2019 and will be terminated if OSG ceases to provide the OSG LNG Performance Guarantee. Capital Contributions from OSG and Dividends Paid to OSG For the year ended December 31, 2016, the Company recorded capital contributions from OSG of $3,797 comprised of allocated reorganization items, net of $131 , non-cash expense relating to stock compensation benefits of $2,520 and certain allocated general and administrative costs of $1,146 . For additional information relating to stock compensation benefits see Note 13, “Capital Stock and Stock Compensation.” During the year ended December 31, 2016, INSW made dividend distributions to OSG totaling $202,000 (or $6.93 per share). |
CAPITAL STOCK AND STOCK COMPENS
CAPITAL STOCK AND STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock and Stock Compensation [Abstract] | |
Capital Stock and Stock Compensation | NOTE 13 — CAPITAL STOCK AND STOCK COMPENSATION: The Company accounts for stock compensation expense in accordance with the fair value based method required by ASC 718, Compensation – Stock Compensation . Such fair value based method requires share based payment transactions to be measured based on the fair value of the equity instruments issued. In connection with the spin-off, effective November 18, 2016 INSW adopted, and OSG as its sole stockholder approved, incentive compensation plans (the “Incentive Plans” as further described below) in order to facilitate the grant of equity and cash incentives to directors, employees, including executive officers and consultants of the Company and certain of its affiliates and to enable the Company and certain of its affiliates to obtain and retain the services of these individuals, which is essential to our long-term success. INSW reserved 2,000,000 shares for issuance under its management incentive plan and 400,000 shares for issuance under its non-employee director incentive compensation plan. OSG maintains or maintained various stock-based compensation arrangements (the “OSG Incentive Plans” and the “OSG 2004 Stock Incentive Plan” ), under which it provided awards to certain employees of INSW of restricted common stock, restricted stock units, performance restricted stock units and stock options to purchase shares of OSG. Because INSW provided employee services in consideration for the participation of INSW’s employees in these plans, a share-based compensation expense for the awards granted to INSW’s employees has been reflected in the consolidated statement of operations. Furthermore, the restricted stock, restricted stock unit and stock option grants also relate to individuals that are considered to be employees of OSG or directors of OSG. Compensation expense relating to such grants is a component of general and administrative expense on OSG’s consolidated statement of operations and as a result for periods prior to our spin-off from OSG was subject to the cost allocation procedures described in Note 12, “Related Parties.” Each OSG restricted stock unit and performance restricted stock unit that was unvested and outstanding immediately prior to the effective time of our spin off from OSG (the “Effective Time”) and held by an INSW Group Employee (as defined by the Employee Matters Agreement) was converted as of the Effective Time into an INSW restricted stock unit or INSW performance restricted stock unit, respectively. Each OSG stock option to purchase shares of OSG that was outstanding immediately prior to the Effective Time and held by an INSW Group Employee was converted as of the Effective Time into an INSW stock option. The OSG Incentive Plans contained anti-dilution provisions whereby in the event of any change in the capitalization of OSG, the number and type of securities underlying outstanding share based payment awards were to be adjusted, as appropriate, in order to prevent dilution or enlargement of rights. The impact of these provisions resulted in a modification of all outstanding share based payment awards held by INSW Group Employees upon the spinoff transaction. As the fair value of the INSW restricted stock unit or INSW performance restricted stock unit awards and the INSW stock option awards immediately after the spinoff transaction increased when compared to the fair value of the equivalent OSG awards held by INSW Group Employees immediately prior to the spinoff transactions, incremental compensation costs of approximately $427 will be recognized by INSW over the remaining vesting period of such awards as a result of the spinoff modifications. As of December 31, 2018, approximately $17 of such costs remain unamortized. Information regarding share-based compensation awards granted by INSW follows: Director Compensation — Restricted Common Stock INSW awarded a total of 47,501 , 38,938 and 32,067 restricted common stock shares during the years ended December 31, 2018, 2017 and 2016 to its non-employee directors. The weighted average fair value of INSW’s stock on the measurement date of such awards was $18.82 (2018), $20.03 (2017 ) and $13.72 (2016) per share. Such restricted shares awards vest in full on the earlier of the next annual meeting of the stockholders or anniversary date, subject to each director continuing to provide services to INSW through such date. The restricted share awards granted may not be transferred, pledged, assigned or otherwise encumbered prior to vesting. Prior to the vesting date, a holder of restricted share awards has all the rights of a shareholder of INSW, including the right to vote such shares and the right to receive dividends paid with respect to such shares at the same time as common shareholders generally. Management Compensation Capitalized terms that follow are defined herein or in the Employee Matters Agreement. (i) Restricted Stock Units During the years ended December 31, 2018, 2017 and 2016, the Company awarded 55,536 , 66,503 and 76,585 time-based restricted stock units (“RSUs”) to certain of its employees, including senior officers, respectively. The average grant date fair value of these awards was $17.46 (2018), $18.91 (2017) and $15.00 (2016) per RSU. Each RSU represents a contingent right to receive one share of INSW common stock upon vesting. Each award of RSUs will vest in equal installments on each of the first three anniversaries of the grant date. RSUs may not be transferred, pledged, assigned or otherwise encumbered until they are settled. Settlement of vested RSUs may be in either shares of common stock or cash, as determined at the discretion of the Human Resources and Compensation Committee, and shall occur as soon as practicable after the vesting date. If the RSUs are settled in shares of common stock, following the settlement of such shares, the grantee will be the record owner of the shares of common stock and will have all the rights of a shareholder of the Company, including the right to vote such shares and the right to receive dividends paid with respect to such shares of common stock. RSUs which have not become vested as of the date of a grantee’s termination from the Company will be forfeited without the payment of any consideration, unless otherwise provided for. During the year ended December 31, 2018, the Company awarded 55,534 performance-based RSUs to its senior officers. Each performance stock unit represents a contingent right to receive RSUs based upon the covered employees being continuously employed through the end of the period over which the performance goals are measured and shall vest as follows: (i) one-half of the target RSUs shall vest on December 31, 2020, subject to INSW’s return on invested capital (“ROIC”) performance in the three-year ROIC performance period relative to a target rate (the “ROIC Target”) set forth in the award agreements; and (ii) one-half of the target RSUs shall vest on December 31, 2020, subject to INSW’s three-year total shareholder return (“TSR”) performance relative to that of a performance peer group over a three-year performance period (“TSR Target”). Vesting is subject in each case to the Human Resources and Compensation Committee of the Company’s Board of Directors’ certification of achievement of the performance measures and targets no later than March 15, 2021. As of December 31, 2018, INSW management believes the ROIC Target performance condition is not yet probable of being achieved. Accordingly, no compensation costs have been recognized for these awards. The weighted average grant date fair value of the awards with performance conditions was determined to be $17.46 per RSU. The weighted average grant date fair value of the TSR based performance awards, which have a market condition, was estimated using a Monte Carlo probability model and determined to be $18.87 per RSU. In addition, in April 2018, the Company awarded an executive officer, 11,882 performance-based restricted stock units, representing the 2018 tranche of the award originally made on February 14, 2017. The grant date fair value of the performance award was determined to be $17.46 per RSU. Each performance stock unit represents a contingent right to receive RSUs based upon certain performance related goals being met and the covered employee being continuously employed through the end of the period over which the performance goal s are measured. Th is performance award which would have vested on December 31, 2018, is subject to INSW’s ROIC performance for the year ended December 31, 2018 relative to a target rate (the “2018 ROIC Target”) set forth in the award agreement. Vesting is subject to INSW’s Human Resources and Compensation Committee’s certification of achievement of the performance measure and target no later than March 31, 2019. The performance condition in this award was achieved and resulted in a payout of approximately 72% of target during the first quarter of 201 9 . During the year ended December 31, 2017 the Company awarded 30,856 performance-based RSUs to its senior officers. Each performance stock unit represents a contingent right to receive RSUs based upon the covered employees being continuously employed through the end of the period over which the performance goals are measured and shall vest as follows: (i) one-third of the target RSUs shall vest on December 31, 2019, subject to INSW’s three-year earnings per share (“EPS”) performance in the three-year EPS performance period relative to a target (the “EPS Target”) set forth in the award agreements; (ii) one-third of the target RSUs shall vest on December 31, 2019, subject to INSW’s return on invested capital (“ROIC”) performance in the three-year ROIC performance period relative to a target rate (the “ROIC Target”) set forth in the award agreements; and (iii) one-third of the target RSUs will be subject to INSW’s three-year total shareholder return (“TSR”) performance relative to that of a performance peer group over a three-year performance period (“TSR Target”). Vesting is subject in each case to the Human Resources and Compensation Committee’s certification of achievement of the performance measures and targets no later than March 15, 2020. The EPS Target and ROIC Target are performance conditions which, as of December 31, 2018, INSW management believes, are not yet probable of being achieved. Accordingly, for financial reporting purposes, no compensation costs will be recognized for these awards until it becomes probable that the performance conditions will be achieved. The weighted average grant date fair value of the awards with performance conditions was determined to be $19.73 per RSU. The weighted average grant date fair value of the TSR based performance awards, which have a market condition, was estimated using a Monte Carlo probability model and determined to be $24.35 per RSU. In addition, during the year ended December 31, 2017, INSW granted 29,206 performance-based RSUs ( 11,383 of which represented the 2017 tranche of the awards originally made on October 12, 2015) to certain members of its senior management. The grant date fair value of the performance awards was determined to be $19.13 per RSU. Each performance stock unit represents a contingent right to receive RSUs based upon certain performance related goals being met and the covered employees being continuously employed through the end of the period over which the performance goals are measured. These performance awards which vested on December 31, 2017, were subject to INSW’s ROIC performance for the year ended December 31, 2017 relative to a target rate set forth in the award agreements. The performance condition in this award was achieved and resulted in payouts ranging from 130% to 150% of target during the first quarter of 2018. During the year ended December 31, 2016 the Company awarded 33,709 performance-based RSUs to its senior officers to replace nonvested OSG performance-based RSUs awarded by OSG. Of this amount, 24,953 performance-based RSUs represent a contingent right to receive INSW RSUs based upon the covered employees being continuously employed through December 31, 2018. The grant date fair value of the TSR based performance awards, which have a market condition, was determined to be $15.00 per INSW RSU. On March 29, 2017, pursuant to the terms of the INSW Management Incentive Compensation Plan and the Employee Matters Agreement with OSG, the Human Resources and Compensation Committee adjusted the applicable performance metrics for the OSG performance based units held by certain members of senior management that had been converted into INSW performance based units as of the November 30, 2016 spin-off date. The performance metrics were modified as follows: (i) one-third of the target RSUs shall vest on December 31, 2018, subject to INSW’s three-year EPS performance in the three-year EPS performance period relative to the same compounded annual growth rate (the “Modified EPS Target”) set forth in the original OSG award agreements; (ii) one-third of the target RSUs shall vest on December 31, 2018, subject to a proportionate average of OSG’s ROIC performance for the first eleven months and INSW’s ROIC performance for the last twenty-five months of the three-year ROIC performance period relative to the same target rate used under the original OSG award agreements (the “Modified ROIC Target”); and (iii) one-third of the target RSUs will be subject to a three-year TSR performance relative to that of the same performance peer group used under the original OSG award, over a three-year TSR performance period (“Modified TSR Target”). The TSR performance shall be measured using a proportionate average of the TSR performance of OSG for the first eleven months and INSW’s TSR performance for the last twenty-five months in the three-year TSR performance period. The modifications to the awards with performance conditions (EPS and ROIC Target awards) did not result in incremental compensation cost as these performance targets are not yet considered probable of being achieved. The modification of the TSR Target award resulted in incremental compensation expense of $124 , which was recognized over the remaining performance period of the awards. The Modified EPS Target and Modified ROIC Target are performance conditions which were not achieved as of the performance period end date of December 31, 2018. Accordingly, for financial reporting purposes, no compensation cost was recognized for the portion of these awards relating to performance conditions. Settlement of the vested INSW performance-based RSUs may be in either shares of common stock or cash, as determined by the Human Resources and Compensation Committee in its discretion, and shall occur as soon as practicable after the vesting date. (ii) Stock Options During the years ended December 31, 2018, 2017 and 2016, the Company awarded to certain senior officers an aggregate of 124,955 , 148,271 and 127,559 stock options, respectively. Each stock option represents an option to purchase one share of INSW common stock for an exercise price of $17.46 per share for options granted in 2018, and an exercise price that ranged between $18.21 and $22.42 per share for options granted in 2017 and between $19.04 and $30.93 per share for options granted in 2016. The weighted average grant date fair value of the options granted in 2018 and 2017 was $7.76 and $8.48 per option, respectively. The weighted average grant date fair value of the options granted in 2016 as a result of the conversion of corresponding OSG stock options originally granted in 2016, 2015 and 2014 were $4.55 , $2.26 and $1.86 , respectively. Stock options may not be transferred, pledged, assigned or otherwise encumbered prior to vesting. Each stock option will vest in equal installments on each of the first three anniversaries of the award date. The stock options expire on the business day immediately preceding the tenth anniversary of the award date. If a stock option grantee’s employment is terminated for cause (as defined in the applicable Form of Grant Agreement), stock options (whether then vested or exercisable or not) will lapse and will not be exercisable. If a stock option grantee’s employment is terminated for reasons other than cause, the option recipient may exercise the vested portion of the stock option but only within such period of time ending on the earlier to occur of (i) the 90th day ending after the option recipient’s employment terminated and (ii) the expiration of the options, provided that if the Optionee’s employment terminates for death or disability the vested portion of the option may be exercised until the earlier of (i) the first anniversary of employment termination and (ii) the expiration date of the options. The fair values of the options granted in 2018 and 2017 were estimated using the Black-Scholes option pricing model with inputs that include the INSW stock price, the INSW exercise price and the following weighted average assumptions: risk free interest rates of 2.67% (2018) and rates that ranged between 1.95% and 2.11% (2017), dividend yields of 0.0% , expected stock price volatility factors of . 42 (2018) and . 44 (2017), and expected lives at inception of six years, respectively. The fair value of the options granted in 2016 were estimated using the Black-Scholes option pricing model with inputs including the INSW stock value based on weighted average per share price of INSW common stock for the 20 Trading Days following the Distribution Date, the INSW exercise price and the following weighted average assumptions for the converted OSG Option originally granted in 2016, 2015 and 2014: risk free interest rates of 2.18% , 1.79% and 1.79% , respectively, dividend yields of 0.0% , expected stock price volatility factor of .40 , and expected lives at inception of five years, four years and four years, respectively. Share Repurchases In connection with the settlement of vested restricted stock units, the Company repurchased 28,002 and 13,961 shares of common stock during the years ended December 31, 2018 and 2017 at an average cost of $17.81 and $18.66 per share, respectively (based on the market prices on the dates of vesting), from certain members of management to cover withholding taxes. During the first quarter of 2019, an additional 8,746 shares of common stock were repurchased from certain employees and members of management at an average cost of $17.13 per share in relation to restricted stock units that vested on December 31, 2018. 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. During the year ended December 31, 2017, the Company repurchased and retired 160,000 shares of its common stock in open-market purchases at an average price of $19.86 per share, for a total cost of $3,177 . No shares were repurchased under such program during the year ended December 31, 2018. On March 5, 2019, the Company’s Board of Directors approved a resolution reauthorizing the Company’s $30,000 stock repurchase program for a nother 24 -month period ending March 5 , 202 1 . Activity with respect to restricted common stock and restricted stock units under INSW compensation plans is summarized as follows: Activity for the three years ended December 31, 2018 Common Stock Nonvested Shares Outstanding at December 31, 2015 - RSUs issued to replace OSG RSUs 110,294 Granted 32,067 Vested ( $19.04 per share) (1) (25,103) Nonvested Shares Outstanding at December 31, 2016 117,258 Granted 165,503 Vested ( $18.21 - $19.13 per share) (1) (108,584) Nonvested Shares Outstanding at December 31, 2017 174,177 Granted (2) 173,573 Forfeitures (3) (19,995) Vested ( $18.62 - $24.05 per share) (1) (97,554) Nonvested Shares Outstanding at December 31, 2018 230,201 (1) Includes 6,508 (2016) , 18,144 (2017) and 21,752 (2018) shares of common stock sold back (in the year of vesting or during the first quarter of the subsequent year) to the Company by employees to cover withholding taxes. (2) Includes 3,120 incremental performance restricted stock units earned as a result of above target achievement of market condition at December 31, 2018. (3) Represents restricted stock units forfeited because performance targets were not achieved as of the December 31, 2018 measurement date. Activity with respect to stock options under INSW compensation plans is summarized as follows: Activity for the three years ended December 31, 2018 Common Stock Options Outstanding at December 31, 2015 - Options issued to replace OSG options 127,559 Exercised - Options Outstanding at December 31, 2016 127,559 Granted 148,271 Exercised - Options Outstanding at December 31, 2017 275,830 Granted 124,955 Exercised - Options Outstanding at December 31, 2018 400,785 Options Exercisable at December 31, 2018 181,336 The weighted average remaining contractual life of the outstanding and exercisable stock options at December 31, 2018 was 8.07 years and 7.29 years, respectively. The range of exercise prices of the stock options outstanding and exercisable at December 31, 2018 was between $17.46 and $30.93 per share, and between $18.21 and $30.93 per share, respectively. The weighted average exercise price of the stock options outstanding and exercisable at December 31, 2018 was $19.96 and $22.10 , respectively . The aggregate intrinsic value of the INSW stock options outstanding and exercisable at December 31, 2018 was zero. Compensation expense is recognized over the vesting period applicable to each grant, using the straight-line method. Direct and allocated compensation expense with respect to restricted common stock and restricted stock units outstanding for the years ended December 31, 2018, 2017 and 2016 was $2,272 , $2,982 and $2,157 , respectively. The allocated compensation expense in 2016 was recorded as a capital contribution from OSG as such amount was not settled in cash. Direct and allocated compensation expense relating to stock options recorded by INSW for the years ended December 31, 2018, 2017 and 2016 was $890 , $826 and $684 , respectively. The 2016 allocated compensation expense was recorded as a capital contribution from OSG as such amount was not settled in cash. As of December 31, 2018, there was $3,854 of unrecogn ized compensation cost related to INSW nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.65 years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 14 —ACCUMULATED OTHER COMPREHENSIVE LOSS: The components of accumulated other comprehensive loss, net of related taxes, in the consolidated balance sheets follow: At December 31, 2018 2017 Unrealized losses on derivative instruments $ (21,520) $ (28,989) Items not yet recognized as a component of net periodic benefit cost (pension plans) (8,409) (11,418) $ (29,929) $ (40,407) The following tables present the changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, for the three years ended December 31, 2018. Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Foreign currency translation adjustment Total Balance at December 31, 2017 $ (28,989) $ (11,418) $ - $ (40,407) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (1,687) 1,107 - (580) Amounts reclassified from accumulated other comprehensive loss 9,156 1,902 - 11,058 Total change in accumulated other comprehensive loss 7,469 3,009 - 10,478 Balance at December 31, 2018 $ (21,520) $ (8,409) $ - $ (29,929) Balance at December 31, 2016 $ (40,317) $ (11,950) $ - $ (52,267) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (1,140) 17 - (1,123) Amounts reclassified from accumulated other comprehensive loss 12,468 515 - 12,983 Total change in accumulated other comprehensive loss 11,328 532 - 11,860 Balance at December 31, 2017 $ (28,989) $ (11,418) $ - $ (40,407) Balance at December 31, 2015 $ (53,446) $ (10,636) $ (42) $ (64,124) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (3,052) (2,364) 42 (5,374) Amounts reclassified from accumulated other comprehensive loss 16,181 1,050 - 17,231 Total change in accumulated other comprehensive loss 13,129 (1,314) 42 11,857 Balance at December 31, 2016 $ (40,317) $ (11,950) $ - $ (52,267) The following table presents information with respect to amounts reclassified out of accumulated other comprehensive loss for the three years ended December 31, 2017. Years Ended December 31, Accumulated Other Comprehensive Loss Component 2018 2017 2016 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 $ (8,664) $ (12,337) $ (15,664) affiliated companies Interest rate swaps entered into by the Company's subsidiaries (471) - - Interest expense Interest rate caps entered into by the Company's subsidiaries (21) (131) (517) Interest expense Items not yet recognized as a component of net periodic benefit cost (pension plans): Net periodic benefit costs associated with pension and postretirement benefit plans for shore-based employees (1,902) (515) (1,050) Other expense $ (11,058) $ (12,983) $ (17,231) Total before and net of tax The following amounts are included in accumulated other comprehensive loss at December 31, 2018, which have not yet been recognized in net periodic cost: unrecognized prior service costs of $1,459 ( $1,113 net of tax) and unrecognized actuarial losses of $8,633 ($ 7,296 net of tax). The prior service costs and actuarial losses included in accumulated other comprehensive loss and expected to be recognized in net periodic cost during 2019 are losses of $0 (gross and net of tax) and $168 (gross and net of tax), respectively. At December 31, 2018, the Company expects that it will reclassify $6,323 (gross and net of tax) of net losses on derivative instruments from accumulated other comprehensive loss to earnings during the next twelve months due to the payment of variable rate interest associated with floating rate debt of INSW’s equity method investees and the interest rate caps and swaps held by the Company. See Note 6, “Equity Method Investments,” for additional information relating to derivatives held by the Company’s equity method investees and Note 9, “Fair Value of Financial Instruments, Derivatives and Fair Value,” for additional disclosures relating to derivative instruments. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Revenue | NOTE 15 — REVENUE: On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were in progress as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 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 significantly from previous practice. Depending on whether or not the underlying voyage charter has been determined to be a service only contract or a lease contract with a service component, there 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. As 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 material impact on revenues recognized for the year ended December 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 policies regarding revenue recognition and costs to obtain or fulfill a contract. Disaggregation of Revenue 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 residual approach 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 year ended December 31, 2018. Crude Product Tankers Carriers Other Totals For the year ended December 31, 2018: Pool revenues Asset lease component $ 52,791 $ 16,593 $ - $ 69,384 Technical management services component 58,423 49,399 - 107,822 Time and bareboat charter revenues Asset lease component 7,199 1,873 - 9,072 Technical management services component 16,889 - - 16,889 Voyage charter revenues Asset lease component 16,936 100 - 17,036 Technical management services component 5,092 - - 5,092 Lightering services component 45,066 - - 45,066 Total shipping revenues $ 202,396 $ 67,965 $ - $ 270,361 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant 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 December 31, 2018 6,898 87,725 (450) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ - $ - $ 918 We receive payments from customers based on a distribution schedule, as established in our contracts. Contract assets relate to our conditional right to consideration for our completed performance under contracts and decrease when the right to consideration becomes unconditional or payments are received . Contract liabilities include payments received in advance of performance under contracts 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. Performance Obligations 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 $2,923 was recognized during the year ended December 31, 2018, respectively, and related to: (i) pool adjustments; (ii) change in estimate of performance obligations related to voyage charters; (iii) off hire adjustments related to time and bareboat charters; and (iv) recoveries in excess of insurance claims receivables accrued for in prior periods, which accounted for $1,796 of the activity during the year ended December 31, 2018. These are all normal course adjustments that are common in the shipping industry when pool voyages are closed out and disputes or claims are settled. Costs to Obtain or Fulfill a Contract As of December 31, 2018, there were no unamortized deferred costs of obtaining or fulfilling a contract. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | NOTE 16 — LEASES: 1. Charters-in: As of December 31, 2018, the Company had commitments to charter-in four MR and two Aframax vessels. All of the charters-in, of which the two Aframaxes are bareboat charters with expiry dates ranging from December 2023 to March 2024 and the four MRs are time charters with expiry dates ranging from June 2019 to July 2019, are accounted for as operating leases. Lease expense relating to charters-in is included in charter hire expenses in the consolidated statements of operations. The future minimum commitments and related number of operating days under these non-cancelable operating leases are as follows: Bareboat Charters-in: At December 31, 2018 Amount Operating Days 2019 $ 6,278 730 2020 6,295 732 2021 6,278 730 2022 6,278 730 2023 4,782 556 Net minimum lease payments $ 29,911 3,478 Time Charters-in: At December 31, 2018 Amount Operating Days 2019 $ 12,934 1,421 Net minimum lease payments $ 12,934 1,421 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 future minimum commitment amounts and days totaling $3,745 and 716 days 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, which as of December 31, 2018, the Company has determined are not yet reasonably certain of being exercised. 2. Charters-out: The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for four panamaxes 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: At December 31, 2018 Amount Revenue Days 2019 $ 2,587 221 Future minimum revenues $ 2,587 221 Future minimum revenues do not include (i) the Company’s share of time charters entered into by the pools in which it participates, and (ii) 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. The above table excludes six-month extensions of time charters on three Panamaxes that were executed shortly after December 31, 2018 at an average daily rate of $13,250 . 3. Office space: The future minimum commitments under all lease obligations for office and lightering workboat dock space are as follows: At December 31, 2018 Amount 2019 $ 1,219 2020 1,152 2021 665 Net minimum lease payments $ 3,036 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Other Postretirement Benefit Plans [Abstract] | |
Pension and Other Postretirement Benefit Plans | NOTE 17 —PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS: Pension plans The Company has obligations outstanding under a defined benefit pension plan in the UK. The plan provides defined benefits based on years of service and final average salary. The plan was closed to new entrants and accrual from December 2007. The Company has provided a guarantee to the trustees of the OSG Ship Management (UK) Ltd. Retirement Benefits Plan (the “Scheme”) in the amount of the unfunded deficiency calculated on a solvency basis, if the principal employer fails to make the required periodic contributions to the Scheme. Information with respect to the Scheme for which INSW uses a December 31 measurement date, is as follows: Pension Benefits At December 31, 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 31,527 $ 29,240 Prior service cost 152 - Interest cost on benefit obligation 707 797 Actuarial gains (2,848) (519) Benefits paid (696) (770) Settlements (3,706) - Foreign exchange (gains)/losses (1,322) 2,779 Benefit obligation at year end 23,814 31,527 Change in plan assets: Fair value of plan assets at beginning of year 29,527 25,466 Actual return on plan assets (1,009) 1,714 Employer contributions - 787 Benefits paid (696) (770) Settlements (3,761) - Plan Administrative Expense - (64) Foreign exchange (losses)/gains (1,276) 2,394 Fair value of plan assets at year end 22,785 29,527 Unfunded status at December 31 $ (1,029) $ (2,000) The unfunded benefit obligation for the pension plan is included in other liabilities in the consolidated balance sheets. Information for the defined benefit pension plan with accumulated benefit obligations in excess of plan assets follows: At December 31, 2018 2017 Projected benefit obligation $ 23,814 $ 31,527 Accumulated benefit obligation 23,814 31,527 Fair value of plan assets 22,785 29,527 Pension benefits For the year ended December 31, 2018 2017 2016 Components of expense: Plan administration costs $ - $ 64 $ - Interest cost on benefit obligation 707 797 886 Expected return on plan assets (1,029) (1,041) (951) Amortization of prior-service costs 71 68 67 Recognized net actuarial loss 388 447 343 Recognized settlement loss 1,442 - 640 Net periodic benefit cost $ 1,579 $ 335 $ 985 Unrecognized actuarial losses are amortized over a period of twenty-one years, which at the time selected, represented the term to retirement of the youngest member of the Scheme. The weighted-average assumptions used to determine benefit obligations follow: Pension benefits At December 31, 2018 2017 Discount rate 2.80% 2.40% The selection of a single discount rate for the defined benefit plan was derived from bond yield curves, which the Company believed as of such dates to be appropriate for the plan, reflecting the length of the liabilities and the yields obtainable on investment grade bonds. The assumption for a long-term rate of return on assets was based on a weighted average of rates of return on the investment sectors in which the assets are invested. The weighted-average assumptions used to determine net periodic benefit costs follow: Pension benefits For the year ended December 31, 2018 2017 2016 Discount rate 2.40% 2.60% 3.80% Expected (long-term) return on plan assets 3.85% 3.85% 5.62% Rate of future compensation increases - - - Expected benefit payments are as follows: Pension benefits 2019 $ 698 2020 734 2021 771 2022 809 2023 850 Years 2024-2028 4,928 $ 8,790 The fair values of the Company’s pension plan assets at December 31, 2018, by asset category are as follows: Description Fair Value Level 1 Level 2 (1) Cash and cash equivalents $ 103 $ 103 $ - Managed funds 22,682 - 22,682 Total $ 22,785 $ 103 $ 22,682 (1) Quoted prices for the managed funds are not available from an active market source since such investments are pooled investment funds. The unitized pooled investment vehicles have been valued at the latest available bid price or single price provided by the pooled investment manager. Shares in other pooled arrangements have been valued at the latest available net asset value, determined in accordance with fair value principles, provided by the pooled investment manager. A target allocation of 60% is maintained with return seeking assets, with the balance of 40% invested in liability driven investments to target a 100% match to interest rate risks by asset value (mainly government bonds). The Company contributed $0 , $787 and $7,605 to the UK Scheme in 2018, 2017 and 2016, respectively. The Company expects that its contribution to the UK Scheme in 2019 will be approximately $637 . Defined Contribution Plans The Company has defined contribution plans covering all eligible shore-based employees in the U.K. and U.S. Contributions are limited to amounts allowable for income tax purposes and include employer matching contributions to the plans. All contributions to the plans are at the discretion of the Company or as mandated by statutory laws. The contributions to the plans during the three years ended December 31, 2018 were not material. The expenses directly attributable to INSW’s employees for these defined contribution plans for each of the years ended December 31, 2018, 2017 and 2016 were not material. |
OTHER EXPENSE
OTHER EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
OTHER EXPENSE [Abstract] | |
OTHER EXPENSE | NOTE 18 — OTHER EXPENSE: For the year ended December 31, 2018 2017 2016 Investment income: Interest $ 1,300 $ 676 $ 376 1,300 676 376 Net actuarial (loss)/gain on pension (902) 526 (380) Write-off of deferred financing costs (2,400) (7,020) (5,097) (Loss)/gain on extinguishment of debt (1,295) - 3,755 Other (418) - - $ (3,715) $ (5,818) $ (1,346) Refer to Note 8, “Debt,” for additional information relating to write-off of deferred financing costs and discount on repurchase of debt. |
2017 AND 2016 QUARTERLY RESULTS
2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS [Abstract] | |
2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS | NOTE 19 — 2018 AND 2017 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): Selected Financial Data for the Quarter Ended March 31, June 30, Sept. 30, Dec. 31, 2018 Shipping revenues $ 51,978 $ 56,909 $ 60,926 $ 100,548 (Loss)/gain on disposal of vessels and other property, including impairments (6,573) 6,740 (17,360) (2,487) (Loss)/income from vessel operations (26,706) (9,669) (36,021) 17,865 Interest expense (11,621) (13,086) (17,320) (18,204) Income tax (provision)/benefit (8) - (3) 116 Net (loss)/income (29,316) (18,796) (47,786) 6,958 Basic and Diluted net (loss)/income per share $ (1.01) $ (0.65) $ (1.64) $ 0.24 Selected Financial Data for the Quarter Ended March 31, June 30, Sept. 30, Dec. 31, 2017 Shipping revenues $ 88,750 $ 71,957 $ 59,968 $ 69,426 Loss on disposal of vessels and other property, including impairments - - (5,406) (81,449) Income/(loss) from vessel operations 13,428 (9,559) (23,662) (88,152) Interest expense (9,167) (9,278) (11,232) (11,570) Income tax provision (4) (4) (23) (13) Net income/(loss) 18,067 (11,619) (21,816) (90,720) Basic and Diluted net income/(loss) per share $ 0.62 $ (0.40) $ (0.75) $ (3.12) |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies [Abstract] | |
Contingencies | NOTE 20 — 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 consolidated financial statements as of December 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. The last deficit valuation was March 31, 2017. INSW’s share of the scheme deficit was recognized in August 2018 when the final valuation was reported. INSW’s share of the deficit amounted to £172 ( $224 ) of which £115 ( $151 ) was paid in October 2018. INSW recorded a reserve for the balance of £57 ( $73 ) as of December 31, 2018, which is due for payment in October 2019. The next deficit valuation is due March 31, 2020. Galveston In late September 2017, an industrial accident at a dock facility in Galveston, Texas resulted in fatalities to two temporary employees (the “decedents”) of a subsidiary of the Company. In accordance with law, an investigation of the accident was conducted by the Occupational Safety and Health Administration and local law enforcement. The subsidiary cooperated in providing requested information to investigators, and to date, no citations or other adverse enforcement actions have been issued to and/or taken against the subsidiary. Additionally, two wrongful death lawsuits (the “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 the subsidiary 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 Houston, Texas (Southern District) in January 2018. The subsidiary has filed its answer to those complaints, generally denying the allegations and stating certain affirmative defenses. The subsidiary has filed a motion for summary judgment seeking dismissal of all claims being asserted against it in the lawsuits based on its position that it was the decedents’ borrowing employer, and therefore has tort immunity under the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 900-950. The motion for summary judgment is currently pending and awaiting the federal court’s decision, but it cannot be predicted when a decision will be issued. There is currently no trial setting in the case. The Company and the subsidiary intend to continue vigorously defending the lawsuits. 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, the lawsuits. Further, certain of the other original defendants in the wrongful death/personal injury actions (the “T&T Defendants”) made demands to the subsidiary and its insurers for contractual defense, indemnity and additional insured coverage for all claims being asserted against the T&T Defendants arising out of the incident, including all amounts paid by the T&T Defendants in settlement of those claims, as well as its costs of defense. The subsidiary and its excess insurers filed an action for declaratory judgment in federal court in Texas (Southern District) seeking judgment that they did not owe contractual indemnification obligations to the T&T Defendants. In July 2018 the federal court overseeing the declaratory judgment action issued an order dismissing the case on the basis that it lacked subject-matter jurisdiction to hear the dispute. This was not a decision on the merits of the underlying contractual dispute. The subsidiary and its excess insurers filed an appeal of that decision in the U.S. Fifth Circuit Court of Appeals. In the meantime, the T&T Defendants filed a new lawsuit in a Texas state court to assert their contractual claims against the subsidiary and its insurers, which the defendants then removed to federal court in Houston, Texas. In early 2019, a settlement of the T&T Defendants’ claims against the subsidiary and its insurers was reached, and funding of same has been issued by the subsidiary’s insurers. Pursuant to the terms of the settlement, all litigation concerning these claims has been dismissed with prejudice. Finally, in February 2018, the subsidiary and its insurers settled three “bystander” claims made by crewmembers aboard a vessel under charter to the subsidiary for alleged emotional and other personal injuries. The subsidiary has initiated arbitration in Houston, Texas against the employer of the bystanders to seek full recovery of this payment pursuant to indemnity provisions in the charter between the subsidiary and the employer. The arbitration is currently underway, and any eventual recovery will be for the benefit of the subsidiary’s insurers. 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. |
REORGANIZATION ITEMS, NET
REORGANIZATION ITEMS, NET | 12 Months Ended |
Dec. 31, 2018 | |
REORGANIZATION ITEMS, NET [Abstract] | |
REORGANIZATION ITEMS, NET | NOTE 21 — REORGANIZATION ITEMS, NET: On November 14, 2012 (the “Petition Date”), OSG and 180 of its subsidiaries including INSW Debtor entities, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Debtors filed with the Bankruptcy Court a plan of reorganization which was subsequently confirmed by the Bankruptcy Court’s order entered on July 18, 2014. On August 5, 2014 (the “Effective Date”), the plan of reorganization became effective and OSG and its affiliated debtors, including INSW Debtor entities, emerged from bankruptcy. On February 10, 2017, pursuant to a final decree and order of the Bankruptcy Court, OSG’s one remaining case, as the parent company, was closed. Reorganization items, net represent amounts incurred subsequent to the bankruptcy date as a direct result of the filing of the Chapter 11 cases. For the year ended December 31, 2018 2017 2016 Allocated trustee fees $ - $ - $ 74 Allocated professional fees - - (3,220) Other claim adjustments - - 3,277 $ - $ - $ 131 The table above reflects the recovery of previously allocated professional fees associated with a litigation matter that OSG subsequently settled for an amount in excess of its related out-of-pocket expenses during 2016. No cash was paid for reorganization items for the year ended December 31, 2018, 2017 and 2016. For the year ended December 31, 2016, the allocation of non-cash reorganization expenses of $131 w as recorded as a capital contribution from OSG. |
Schedule I Condensed Financial
Schedule I Condensed Financial Information Parent | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company [Member] | |
Condensed Financial Information of Parent Company Only Disclosure | INTERNATIONAL SEAWAYS, INC. AND SUBSIDIARIES SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT INTERNATIONAL SEAWAYS, INC. CONDENSED BALANCE SHEETS AT DECEMBER 31 DOLLARS IN THOUSANDS 2018 2017 ASSETS Current Assets: Cash and cash equivalents $ 159 $ 1,624 Other receivables 5 6 Prepaid expenses and other current assets 556 575 Total Current Assets 720 2,205 Restricted cash 4,000 - Investment in subsidiaries 941,872 978,737 Investments in and advances to affiliated companies 112,212 102,398 Intercompany receivables 1,611 3,126 Other assets 282 - Total Assets $ 1,060,697 $ 1,086,466 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other current liabilities $ 841 $ 621 Payable to OSG 34 47 Total Current Liabilities 875 668 Long-term debt 49,824 - Intercompany payables 143 143 Total Liabilities 50,842 811 Equity: Capital - 100,000,000 no par value shares authorized; 29,184,501 and 29,089,865 shares issued and outstanding 1,309,269 1,306,606 Accumulated deficit (269,485) (180,544) 1,039,784 1,126,062 Accumulated other comprehensive loss (29,929) (40,407) Total Equity 1,009,855 1,085,655 Total Liabilities and Equity $ 1,060,697 $ 1,086,466 See notes to condensed financial statements INTERNATIONAL SEAWAYS, INC. AND SUBSIDIARIES SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT INTERNATIONAL SEAWAYS, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31 DOLLARS IN THOUSANDS 2018 2017 2016 Shipping Revenues $ - $ 2 $ 2 Operating Expenses Voyage expenses - - (1,318) Vessel expenses - (4) (778) Charter hire expenses - - (457) Depreciation and amortization - - 783 General and administrative 4,664 5,880 25,467 Third-party debt modification fees 44 - - Separation and transition costs - 381 6,077 Gain on disposal of vessels and other property - - 30 Total operating expenses 4,708 6,257 29,804 Loss from vessel operations (4,708) (6,255) (29,802) Equity in (loss)/ income of affiliated companies (80,269) (75,790) 53,586 Operating (loss)/income (84,977) (82,045) 23,784 Other expense (92) (6,888) (2,583) (Loss)/income before interest expense, reorganization items and income taxes (85,069) (88,933) 21,201 Interest expense (3,864) (17,129) (39,278) Loss before reorganization items and income taxes (88,933) (106,062) (18,077) Reorganization items, net - - (131) Loss before income taxes (88,933) (106,062) (18,208) Income tax provision (7) (26) (15) Net loss (88,940) (106,088) (18,223) Other comprehensive income, net of tax: Net change in unrealized losses on cash flow hedges 7,469 11,328 13,129 Foreign currency translation adjustment - - 42 Defined benefit pension and other postretirement benefit plans: Net change in unrecognized prior service cost (13) (31) 294 Net change in unrecognized actuarial losses 3,022 563 (1,608) Other comprehensive income, net of tax 10,478 11,860 11,857 Comprehensive Loss $ (78,462) $ (94,228) $ (6,366) See notes to condensed financial statements INTERNATIONAL SEAWAYS, INC. AND SUBSIDIARIES SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT INTERNATIONAL SEAWAYS, INC. CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 DOLLARS IN THOUSANDS 2018 2017 2016 Cash Flows from Operating Activities: Net cash provided by operating activities $ 3,500 $ 297,931 $ 41,883 Cash Flows from Investing Activities: Capital contributions to subsidiaries (56,942) - - Distributions from subsidiaries and affiliated companies 7,360 165,168 - Net cash (used in)/provided by investing activities (49,582) 165,168 - Cash Flows from Financing Activities: Issuance of debt, net of issuance and deferred financing costs 51,318 - - Payments on debt - (1,546) (90,065) Extinguishment of debt (2,069) (458,416) (65,167) Dividend payments to OSG - - (202,000) Repurchases of common stock - (3,177) - Cash paid to tax authority upon vesting of stock-based compensation (410) (349) (26) Other - net (222) - - Net cash provided by/(used in) financing activities 48,617 (463,488) (357,258) Net increase/(decrease) in cash, cash equivalents and restricted cash 2,535 (389) (315,375) Cash, cash equivalents and restricted cash at beginning of year 1,624 2,013 317,388 Cash, cash equivalents and restricted cash at end of year $ 4,159 $ 1,624 $ 2,013 See notes to condensed financial statements INTERNATIONAL SEAWAYS, INC. AND SUBSIDIARIES SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT INTERNATIONAL SEAWAYS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS DOLLARS IN THOUSANDS NOTE A — BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS International Seaways, Inc. (the “Parent”) is the Parent company that conducts substantially all of its business operations through its subsidiaries. The condensed financial information and related notes have been prepared in accordance with Rule 12.04, Schedule I of Regulation S-X. This financial information should be read in conjunction with the consolidated financial statements and notes thereto of International Seaways, Inc., and subsidiaries (collectively, the “Company”). The Parent owns 100% of International Seaways Operating Corporation (“ISOC”), which is incorporated in the Marshall Islands, and OIN Delaware LLC, which is incorporated in the state of Delaware . The Parent has 49.90% interest in a joint venture , OSG Nakilat Corporation (“LNG Joint Venture”), which is incorporated in the Marshall Islands. The following subsidiaries of the Parent are in the process of being dissolved: ERN Holdings Inc. and Oleron Tankers S.A., which are incorporated in Panama, OSG-NNA Ship Management Services Inc, which is incorporated in the Philippines , and Ship Paying Corporation No. 3, which is incorporated in Liberia. ISOC and its subsidiaries own and operate a fleet of oceangoing vessels engaged in the transportation of crude oil and refined petroleum products in the international markets. NOTE B— DEB T: Debt consists of the following: As of December 31, 2018 2017 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,402 $ 23,598 $ - 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,705 26,226 - 49,824 - Less current portion - - Long-term debt $ 49,824 $ - T he Parent completed the s ale of $25,000 of its 8.50% notes (the "8.50% Senior Notes") in an SEC-registered offering in May 2018 and the s ale of $30,000 of its 10.75% subordinated step-up notes due 2023 (the "10.75% Subordinated Notes") in a private placement to certain funds and accounts managed by BlackRock, Inc. ("BlackRock") on June 13, 201 8. The Parent made capital contributions totaling $56,899 to ISOC during 2018 to finance the acquisition of the Six VLCCs and to fund general working capital needs, out of which $56,942 was paid and reflected in the condensed statement of cash flows as cash flows used in investing activities and $43 is included in intercompany receivables in the condensed consolidated balance sheet as of December 31, 2018. As of December 31, 2018, the aggregate annual principal payments required to be made on the 8.5% Senior Notes and 10.75% Unsecured Subordinated Notes and are as follows: Year Amount 2019 $ - 2020 - 2021 - 2022 - 2023 52,931 Aggregate principal payments required $ 52,931 During the year ended December 31, 2018, the Parent paid issuance costs in connection with 8.5% Senior Notes and 10.75% Subordinated Notes aggregating $3, 727 , of which $3,683 were capitalized as deferred finance charges and $44 is included in third-party debt modification fees in the condensed statement of operations and comprehensive loss. The net loss of $128 included in other expense for the year ended December 31, 2018 reflects a write-off of unamortized original issue discount and deferred financing costs associated with the redemption of $2,069 of the 10.75% Subordinated Notes, which were treated as partial extinguishments. Issuance costs incurred and capitalized as deferred finance charges have been treated as a reduction of debt proceeds. An aggregate net loss of $7,020 for the year ended December 31, 2017 realized on the modification of the Parent ’s debt facilities, is included in other expense in the condensed statement of operations and comprehensive loss. The net loss reflects a write-off of unamortized original issue discount and deferred financing costs associated with the INSW Facilities, which were treated as partial extinguishments. The remaining balance of unamortized deferred financing costs were concurrently transferred to ISOC. During the year ended December 31, 2016, the Parent paid deferred financing fees of $8,273 in connection with amendments to the INSW Facilities. Such fees were capitalized as deferred finance charges. During the year ended December 31, 2016, the Parent made repurchases of the INSW Term Loan in the open market of $68,922 and mandatory principal prepayments of $83,832 . The aggregate net losses of $1,342 realized on these transactions for the year ended December 31, 2016, is included in other expense in the condensed statement of operations and comprehensive loss . The net loss for the year ended December 31, 2016 reflects a $5,097 write-off of unamortized original issue discount and deferred financing costs associated with the principal reductions which were treated as partial extinguishments and a $3,755 discount on repurchase of debt. Third party legal and consulting fees (aggregating $225 ) incurred by the Parent in relation to the open market repurchases are included in general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2016. See Note 8, “Debt,” to the Company’s consolidated financial statements set forth in Item 8, “Financial Statements and Supplementary Data,” for information with respect to the Parent’s debt. NOTE C—RELATED PARTY TRANSACTIONS: The financial statements of the Parent included related party transactions as presented in the tables below: For the year ended December 31, 2018 2017 2016 Equity in (loss)/income of affiliated companies ISOC (1) $ (90,020) $ (89,851) $ 43,325 Other Subsidiaries (99) (327) (977) LNG Joint Venture 9,850 14,388 11,265 TI LLC Joint Venture (2) - - (27) $ (80,269) $ (75,790) $ 53,586 (1) ISOC was formed on August 19, 2016. On November 30, 2016, pursuant to the Contribution Agreement entered into between the Parent and ISOC, the Parent contributed its ownership interests in all of its vessel owning subsidiaries and certain of its non-vessel owning subsidiaries to ISOC. The above presentation includes the entities that were contributed to ISOC. (2) In November 2016, pursuant to the Contribution Agreement, the ownership interest in Tankers International L.L.C. ("TI LLC Joint Venture"), a joint venture in which the Parent owned a less than 50% interest, was transferred from The Parent to ISOC. For the year ended December 31, 2018 2017 2016 General and administrative expenses reimbursed to INSW Ship Management UK Ltd. $ - $ - $ (1,691) Interest income on intercompany loan with INSW Manila Inc. 35 131 74 Total included in other expense $ 35 $ 131 $ (1,617) The Parent reimbursed its wholly owned subsidiary, INSW Ship Management UK Ltd., for general and administrative costs incurred. In November 2016, pursuant to the Contribution Agreement , the ownership interest in INSW Ship Management UK Ltd. was transferred from the Parent to ISOC. The Parent had a loan receivable from INSW Manila Inc., which was entered into to finance the purchase of an office building in Manila. This loan bore interest at 4% per annum and was repayable on demand. Such loan was paid in full in 2018. Included in intercompany receivables of the condensed balance sheets were the outstanding principal balance of $1,764 and accrued interest balances of $91 as of December 31, 2017. As of December 31, 2018 2017 Amounts due from related companies: ISOC $ 43 $ - INSW Manila Inc. 1,568 1,271 Intercompany loans receivable and accrued interest: INSW Manila Inc. - 1,855 Intercompany receivables $ 1,611 $ 3,126 As of December 31, 2018 2017 Amounts due to related companies: OIN Delaware LLC $ 100 $ 100 OSG-NNA Ship Management Services Inc. 43 43 Intercompany payables $ 143 $ 143 In accordance with the terms of the 2017 Debt Facilities, ISOC is permitted to pay cash dividends to the Parent at the times and in the amounts necessary for the Parent to pay its operating expenses and other similar corporate overhead costs and expenses incurred in the ordinary course of its business. ISOC made cash distributions totaling $7,360 as return of capital to the parent for the year ended December 31, 201 8 to cover such costs. ISOC made cash distributions totaling $487,260 to the parent including earnings distributions of $322,092 and $165,168 return of capital, for the year ended December 31, 2017 to cover such costs and to fund the repayment of the INSW facilities . The earnings distributions and return of capital distributions received by the Parent are reflected in the condensed statement of cash flows as cash flows from operating activities and investing activities, respectively. During 2 016 , the Company paid earnings distributions to OSG of $202,000 . The earnings distributions are reflected in the condensed statement of cash flows as cash flows used in financing activities . NOTE D —GUARANTEES: See Note 6, “Equity Method Investments,” and Note 12, “Related Parties” to the Company’s consolidated financial statements set forth in Item 8, “Financial Statements and Supplementary Data,” for information relating to the Parent guarantees. The Parent has also issued performance guarantees under lease agreements for certain vessels chartered in by subsidiaries of ISOC. NOTE E —CONTINGENCIES: See Note 20, “Contingencies,” to the Company’s consolidated financial statements set forth in Item 8, “Financial Statements and Supplementary Data,” for information with respect to the Parent’s contingencies. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Cash and cash equivalents | 1. Cash and cash equivalents — 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 $59,331 and $10,579 as of December 31, 2018 and December 31, 2017, respectively, represents legally restricted cash relating to the Company’s 2017 Term Loan Facility, Sinosure Credit Facility, ABN Term Loan Facility, and 10.75% Unsecured Subordinated Notes (as defined in Note 8, “Debt”). Such restricted cash reserves are included in the non-current assets section of the consolidated balance sheets. |
Concentration of Credit Risk | 2. 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. With respect to voyage receivables, the Company limits its credit risk by performing ongoing credit evaluations. Voyage receivables reflected in the consolidated balance sheets as of December 31, 2018 and 2017 are net of an allowance for doubtful accounts of $27 and $108 , respectively. The provisions for doubtful accounts for the years ended December 31, 2018, 2017 and 2016 were not material. During the three years ended December 31, 2018, 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 for 88% and 89% of consolidated voyage receivables at December 31, 2018 and 2017. |
Inventories | Inventories —Inventories, which consists principally of fuel, are stated at cost determined on a first-in, first-out basis. |
Vessels, vessel lives, deferred drydocking expenditures and other property | 4. Vessels, vessel lives, deferred drydocking expenditures and other property —Vessels are recorded at cost and are depreciated to their estimated salvage value on the straight-line basis over the lives of the vessels, which are generally 25 years. Each vessel’s salvage value is equal to the product of its lightweight tonnage and an estimated scrap rate of $300 per ton. The carrying value of each of the Company’s vessels represents its original cost at the time it was delivered or purchased less depreciation calculated using estimated useful lives from the date such vessel was originally delivered from the shipyard. A vessel’s carrying value is reduced to its new cost basis (i.e., its current fair value) if a vessel impairment charge is recorded. Interest costs are capitalized to vessels during the period that vessels are under construction, however, no interest was capitalized during 2018, 2017 or 2016. Other property, including leasehold improvements, are recorded at cost and amortized on a straight-line basis over the shorter of the terms of the leases or the estimated useful lives of the assets, which range from three to seven years. Expenditures incurred during a drydocking are deferred and amortized on the straight-line basis over the period until the next scheduled drydocking, generally two and a half to five years. The Company only includes in deferred drydocking costs those direct costs that are incurred as part of the drydocking to meet regulatory requirements or are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs include shipyard costs as well as the costs of placing the vessel in the shipyard. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. |
Impairment of long-lived assets | Impairment of long-lived assets —The carrying amounts of long-lived assets held and used by the Company are reviewed for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be fully recoverable. In such instances, an impairment charge would be recognized if the estimate of the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than the asset’s carrying amount. This assessment is made at the individual vessel level since separately identifiable cash flow information for each vessel is available. The impairment charge, if any, would be measured as the amount by which the carrying amount of a vessel exceeded its fair value. If using an income approach in determining the fair value of a vessel, the Company will consider the discounted cash flows resulting from highest and best use of the vessel asset from a market-participant’s perspective. Alternatively, if using a market approach, the Company will obtain third party appraisals of the estimated fair value of the vessel. A long lived asset impairment charge results in a new cost basis being established for the relevant long lived asset. See Note 5, “Vessels, Deferred Drydock and Other Property,” for further discussion on the impairment tests performed on certain of our vessels during the three years ended December 31, 2018. |
Deferred finance charges | 6. 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 $413 relating to the 2017 Revolver Facility are included in other assets in the consolidated balance sheet as of December 31, 2018. Unamortized deferred financing charges of $26,647 relating to the 2017 Term Loan Facility, Sinosure Credit Facility, ABN Term Loan Facility, 8.5% Senior Notes and 10.75% Subordinated Notes and (as defined in Note 8, “Debt”) and $23,626 relating to the 2017 Term Loan Facility and the 2017 Revolver Facility are included in long-term debt in the consolidated balance sheets as of December 31, 2018 and December 31, 2017, respectively. Interest expense relating to the amortization of deferred financing costs amounted to $3,933 in 2018 , $ 5,115 in 201 7 and $6,449 in 201 6. |
Revenue and expense recognition | 7. 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 including 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. Bareboat charters are accounted for as operating leases and the associated revenue is recognized ratably over the rental periods of such charters. Voyage charters 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 latter of discharge of the previous cargo or voyage charter contract signing. For voyage charters 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. Demurrage earned during a voyage charter represents variable consideration. The 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 15, “Revenue,” for additional disclosures on revenue recognition and the impact of adopting ASC 606 on January 1, 2018. |
Derivatives | 8. Derivatives —ASC 815, Derivatives and Hedging , requires the Company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not effective hedges must be adjusted to fair value through earnings. If the derivative is an effective hedge, depending on the nature of the hedge, a change in the fair value of the derivative is either recorded to current earnings (fair value hedge), or recognized in other comprehensive income/(loss) and reclassified into earnings in the same period or periods during which the hedge transaction affects earnings (cash flow hedge). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. The Company also formally assesses (both at the hedge's inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item such as forecasted transactions; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income/(loss) and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in other comprehensive gain/(loss) will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the balance sheet, recognizing changes in the fair value in current-period earnings, unless it is designated in a new hedging relationship. During the three years ended December 31, 2018, no ineffectiveness gains or losses were recorded in earnings relative to interest rate caps or swaps entered into by the Company or its subsidiaries that qualified for hedge accounting. Any gain or loss realized upon the early termination of an interest rate cap or swaps is recognized as an adjustment of interest expense over the shorter of the remaining term of the derivative instruments or the hedged debt. See Note 9, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” for additional disclosures on the Company’s interest rate caps and swaps and other financial instruments. |
Income taxes | 9. Income taxes — Substantially all of the companies included in the Company’s consolidated financial statements were excluded from the OSG consolidated group for U.S. income tax purposes for the eleven-month period ended November 30, 2016 . T he Company’s financial statements have been prepared on the basis that OSG was responsible for all U.S. taxes for periods prior to December 1, 2016. Prior to December 1, 2016, the Company had not operated as an independent stand-alone entity. However, for the purposes of these consolidated financial statements the Company has calculated income taxes as if it had filed relevant income tax returns on a stand-alone basis. T he Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Net deferred tax assets are recorded to the extent the Company believes these assets will more likely than not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company were to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes in the period such determination is made. Uncertain tax positions are recorded in accordance with ASC 740, Income Taxes, on the basis of a two-step process whereby (1) the Company first determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. |
Valuation of equity method investments | Valuation of equity method investments — When events and circumstances warrant, investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in fair value of an investment below its carrying amount is determined to be other-than-temporary. Impairment charges related to equity method investments are recorded in equity in income of affiliated companies in the accompanying consolidated statements of operations. See Note 6, “Equity Method Investments,” for further discussion of the Company’s evaluation of impairment of its equity method investments during the three years ended December 31, 2018. |
Use of estimates | Use of estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts of assets, liabilities, equity, revenues and expenses reported in the financial statements and accompanying notes. The most significant estimates relate to the depreciation of vessels and other property, amortization of drydocking costs, judgements involved in identifying performance obligations in revenue contracts, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation, estimates used in assessing the recoverability of equity method investments and other long-lived assets, liabilities incurred relating to pension benefits, and income taxes. Actual results could differ from those estimates. |
Recently adopted / issued accounting standards | 12. 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 acquisition of six VLCC tankers (see Note 5, “Vessels, Deferred Drydock and Other Property”) should be accounted for as an acquisition of a group of assets as substantially all of the fair value of the gross assets acquired was 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 modifications during the year ended December 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. Such practical expedient was not utilized by the Company. The adoption of this accounting standard resulted in the presentation of $526 and ( $380 ) of net actuarial gains/(losses) and $809 and $886 of benefit obligation interest costs, which were previously presented in the general and administrative expense line for the years ended December 31, 2017 and 2016, respectively, in the other expense and interest expense lines on the consolidated statements of operations, respectively. In November 2016, the FASB issued ASU 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 year ended December 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, $19,530 and $6,334 of the total distributions of $40,750 and $18,500 received from certain affiliated companies accounted for by the equity method during the years ended December 31, 2017 and 2016, respectively, are presented as cash inflows from investing activities while the balance of $21,220 and $12,166 are presented as cash inflows from operating activities. In addition, the adoption of this accounting standard resulted in the separate line presentation of $1,964 and $1,942 of insurance proceeds received for various claims arising from the normal operations of our vessel fleet, in the operating activities section of the consolidated statement of cash flows for the years ended December 31, 2017 and 2016, respectively. In May 2014, the FASB issued ASU 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 15, “Revenue,” for further information. 13. Recently issued accounting standards — In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit losses (ASC 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model known as the current expected credit loss (“CECL”) model that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to recognize as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. Unlike the incurred loss models under existing standards, the CECL model does not specify a threshold for the recognition of an impairment allowance. Rather, an entity will recognize its estimate of expected credit losses for financial assets as of the end of the reporting period. Credit impairment will be recognized as an allowance or contra-asset rather than as a direct write-down of the amortized cost basis of a financial asset. However, the carrying amount of a financial asset that is deemed uncollectible will be written off in a manner consistent with existing standards. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2019 and early adoption is permitted . We are in the process of evaluating financial assets on our balance sheet for potential credit losses under CECL model. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements. In November 2018, the FASB issued ASU 2018-19, Financial Instruments – Credit losses (ASC 326), which clarifies that operating lease receivables are not within the scope of ASC 326 and should instead be accounted for under the new leasing standard, ASC 842. In August 2018, the SEC issued a final rule that amends certain of its disclosure requirements. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly changing the information provided to investors. The amendments require registrants to include a reconciliation of changes in stockholders’ equity in their interim financial statements. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods as well as comparable periods in Form 10-Q, but only for the year-to-date periods in registration statements. While the amendments adopted in August 2018 are effective on November 5, 2018, the SEC staff issued a Compliance and Disclosure Interpretation (C&DI) that provides an extended transition period for companies to comply with the requirement to provide a reconciliation of changes in stockholders’ equity in their interim financial statements, allowing a registrant to not comply with that requirement until the Form 10-Q for the quarter that begins after November 5, 2018. Accordingly, the Company intends to begin providing the new interim reconciliations of shareholders’ equity required by the rule in the Form 10-Q for the three months ending March 31, 2019. In August 2018, the FASB issued ASU 2018-14, Defined Benefit Plans (ASC 715), which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 adds requirements for an entity to disclose the following: (1) the weighted average interest crediting rates used in the entity’s cash balance pension plans and other similar plans; (2) a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period; and (3) an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the ASU removes guidance that requires the following disclosures: (1) the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year; (2) information about plan assets to be returned to the entity, including amounts and expected timing; (3) information about benefits covered by related-party insurance and annuity contracts and significant transactions between the plan and related parties; and (4) effects of a one-percentage-point change in the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2020 and early adoption is permitted. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASC 820), which changes the fair value measurement disclosure requirements. The new disclosure requirements are: (1) changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The eliminated disclosure requirements are: (1) transfers between Level 1 and Level 2 of the fair value hierarchy; and (2) policies related to valuation processes and the timing of transfers between levels of the fair value hierarchy. Under ASU 2018-13, entities are no longer required to estimate and disclose the timing of liquidity events for investments measured at fair value. Instead, the requirement to disclose such events applies only when they have been communicated to the reporting entities by the investees or announced publicly. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2019 and early adoption is permitted. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements. 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). 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, reflect the adoption of ASC 606 on January 1, 2018. In February 2016, the FASB issued ASU 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. In July 2018, the FASB issued ASU 2018-10, Leases (ASC 842), which provides clarifying guidance on ASU 2016-02. Also, in July 2018, the FASB issued ASU 2018-11, Leases (ASC 842), which updates requirements related to transition relief on comparative reporting at adoption and separating components of a contract for lessors. This update provides another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date (January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, this update provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (ASC 606); and both of the following are met: (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. If lease and nonlease components are aggregated under this practical expedient, a lessor would account for the combined component as follows: if the nonlease components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with the new revenue guidance; otherwise, the entity must account for the combined component as an operating lease in accordance with the new leases guidance. If elected, the practical expedient will need to be applied consistently as an accounting policy by class of underlying asset. Additional disclosures are also required. For entities that have not adopted ASC 842 before the issuance of this update, the effective date and transition requirements for the amendments in this update related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. We will adopt ASC 842 effective January 1, 2019 using the modified retrospective transition approach, which allows the Company to recognize a cumulative effect adjustment to the opening balance of accumulated deficit in the period of adoption rather than restate our comparative prior year periods. Based on our analysis, the cumulative effect adjustment to the opening balance of accumulated deficit will be zero because (i) we do not have any unamortized initial direct costs as of January 1, 2019 that need to be written off; (ii) we do not have any deferred gain or loss from our previous sale and operating leaseback transactions that need to be recognized; and (iii) the timing and pattern of revenue recognition under our revenue contracts that have lease and non-lease components is the same and even if accounted for separately, the lease component of such contracts would be considered operating leases. In determining the appropriate discount rate to use in calculating the present value of the Company’s contractual lease payments, the Company will make significant judgements and assumptions to estimate the its incremental borrowing rate as the rate implicit in the Company’s leases cannot be readily determined. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a 100% collateralized basis over a term similar to the lease term and amount equal to the lease payments in a similar economic environment. The Company will perform the following steps in estimating its incremental borrowing rate: (i) gather observable debt yields of the Company’s recently issued debt facilities; (ii) make adjustments to the yields of the actual debt facilities to reflect changes in collateral level, terms, the risk-free interest rate, and credit ratings. In addition, the Company will perform sensitivity analyses to evaluate the impact of selected discount rates on the estimated lease liability. The Company currently has two major categories of leases – chartered-in vessels and leased office and other space. Upon adoption of ASC 842, management expects that based on our current portfolio of leases, assets and liabilities on the consolidated balance sheet will increase by approximately $31,500 due to the recognition of right-of-use assets and corresponding lease liabilities. For chartered-in vessels, the Company does not plan to elect the lessee practical expedient, which allows lessees, as an accounting policy election made by class of underlying asset, to choose not to separate nonlease components from lease components and instead combine the separate lease and nonlease components and account for them as a single lease component. For leased office and other space, the Company plans to elect this practical expedient as it is not practical to separate the insignificant nonlease components from the associated lease components for these types of leases. As discussed above under revenue and expense recognition, the Company currently has three revenue streams: revenue from time/bareboat charters, revenue from voyage charters, and pool revenues. The lease component for all three revenue streams (when multiple loading or discharging port options are included in a voyage charter such charter is determined to contain a lease) relates to the cost to a lessee to control the use of the vessel and the nonlease component relates to the cost to the lessee for the lessor to operate the vessel. The Company concluded that the criteria for not separating lease and non-lease components for each of its revenue streams are met as (1) the timing and pattern of recognizing revenues for operating the vessel is the same as the timing and pattern of recognizing vessel leasing revenue; and (2) the lease component of all three revenue streams, if accounted for separately, would be classified as an operating lease. In addition, when a voyage charter contract does not provide for multiple loading or multiple discharge options, the Company concluded that this kind of contract does not contain a lease component due to the charterer not having substantive decision-making rights to direct how and for what purpose the vessel is used and thus is out of the scope of ASC 842. The Company will elect the lessor practical expedient, which allows entities to choose to aggregate nonlease components with the associated lease components and to account for the combined components as required by the practical expedient. ASC 842 also allows lessees to elect as an accounting policy not to apply the provisions of ASC 842 to short term leases (i.e., leases with an original term of 12-months or less). Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The accounting policy election for short-term leases shall be made by class of underlying asset to which the right of use relates. The Company will elect not to apply ASC 842 to its portfolio of short-term leases existing on January 1, 2019. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per Common Share [Abstract] | |
Components of Calculation of Earnings Per Share | The components of the calculation of basic and diluted earnings per share are as follows: For the year ended December 31, 2018 2017 2016 Net loss $ (88,940) $ (106,088) $ (18,223) Weighted average common shares outstanding: Basic 29,136,634 29,159,440 29,157,992 Diluted 29,136,634 29,159,440 29,157,992 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: For the year ended December 31, 2018 2017 2016 Net loss allocated to: Common Stockholders $ (88,940) $ (106,088) $ (18,223) Participating securities - - - $ (88,940) $ (106,088) $ (18,223) |
BUSINESS AND SEGMENT REPORTING
BUSINESS AND SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 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 each of the years in the three-year period ended December 31, 2018 follows: Crude Product Tankers Carriers Other Totals 2018 Shipping revenues $ 202,396 $ 67,965 $ - $ 270,361 Time charter equivalent revenues 175,524 67,576 - 243,100 Depreciation and amortization 54,431 17,862 135 72,428 Loss/(gain) on disposal of vessels and other property, including impairments 22,992 (3,312) - 19,680 Adjusted income/(loss) from vessel operations 2,194 (12,002) 567 (9,241) Equity in income of affiliated companies 19,582 - 9,850 29,432 Investments in and advances to affiliated companies at December 31, 2018 143,789 12,321 112,212 268,322 Adjusted total assets at December 31, 2018 1,285,433 328,792 112,212 1,726,437 Expenditures for vessels and vessel improvements 146,322 2,624 - 148,946 Payments for drydockings 4,121 399 - 4,520 2017 Shipping revenues $ 192,426 $ 97,675 $ - $ 290,101 Time charter equivalent revenues 178,812 96,183 - 274,995 Depreciation and amortization 56,302 22,418 133 78,853 Loss on disposal of vessels and other property, including impairments 85,625 1,230 - 86,855 Adjusted income/(loss) from vessel operations 21,623 (8,385) (31) 13,207 Equity in income of affiliated companies 34,577 - 14,389 48,966 Investments in and advances to affiliated companies at December 31, 2017 260,884 15,612 102,398 378,894 Adjusted total assets at December 31, 2017 1,104,714 382,905 102,025 1,589,644 Expenditures for vessels and vessel improvements 172,164 1,371 - 173,535 Payments for drydockings 17,606 3,790 - 21,396 2016 Shipping revenues $ 271,764 $ 126,555 $ - $ 398,319 Time charter equivalent revenues 258,171 126,314 560 385,045 Depreciation and amortization 52,395 26,696 794 79,885 Loss on disposal of vessels and other property, including impairments 7,585 71,456 162 79,203 Adjusted income from vessel operations 111,768 13,327 710 125,805 Equity in income of affiliated companies 5,584 - 11,265 16,849 Investments in and advances to affiliated companies at December 31, 2016 266,470 15,296 76,915 358,681 Adjusted total assets at December 31, 2016 1,066,184 422,579 76,915 1,565,678 Expenditures for vessels and vessel improvements 691 1,297 - 1,988 Payments for drydockings 7,636 1,622 - 9,258 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliations of time charter equivalent revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow: For the year ended December 31, 2018 2017 2016 Time charter equivalent revenues $ 243,100 $ 274,995 $ 385,045 Add: Voyage expenses 27,261 15,106 13,274 Shipping revenues $ 270,361 $ 290,101 $ 398,319 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliations of adjusted (loss)/income from vessel operations of the segments to loss before income taxes, as reported in the consolidated statements of operations follow: For the year ended December 31, 2018 2017 2016 Total adjusted (loss)/income from vessel operations of all segments $ (9,241) $ 13,207 $ 125,805 General and administrative expenses (24,304) (24,453) (30,352) Third-party debt modification fees (1,306) (9,240) - Separation and transition costs - (604) (9,043) Loss on disposal of vessels and other property, including impairments (19,680) (86,855) (79,203) Consolidated (loss)/income from vessel operations (54,531) (107,945) 7,207 Equity in income of affiliated companies 29,432 48,966 16,849 Other expense (3,715) (5,818) (1,346) Interest expense (60,231) (41,247) (40,362) Reorganization items, net - - (131) Loss before income taxes $ (89,045) $ (106,044) $ (17,783) |
Reconciliation of Assets from Segment to Consolidated | Reconciliations of total assets of the segments to amounts included in the consolidated balance sheets follow: At December 31, 2018 2017 Total assets of all segments $ 1,726,437 $ 1,589,644 Corporate unrestricted cash and cash equivalents 58,313 60,027 Restricted cash 59,331 10,579 Other unallocated amounts 4,520 4,234 Consolidated total assets $ 1,848,601 $ 1,664,484 |
Long Lived Assets Deployment by Segment | Certain additional information about the Company’s operations for each of the years in the three year period ended December 31, 2018 follows: Crude Product Tankers Carriers Other Consolidated 2018 Total vessels, deferred drydock and other property at December 31, 2018 $ 1,057,994 $ 289,317 $ 257 $ 1,347,568 2017 Total vessels, deferred drydock and other property at December 31, 2017 $ 800,362 $ 339,627 $ 374 $ 1,140,363 2016 Total vessels, deferred drydock and other property at December 31, 2016 $ 753,028 $ 377,095 $ 484 $ 1,130,607 |
VESSELS, DEFERRED DRYDOCK AND_2
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property | Vessels and other property, excluding vessel held for sale, consist of the following: At December 31, 2018 2017 Vessels, at cost $ 1,629,647 $ 1,404,360 Accumulated depreciation (301,885) (302,087) Vessels, net 1,327,762 1,102,273 Other property, at cost 8,199 7,377 Accumulated depreciation and amortization (5,166) (4,923) Other property, net 3,033 2,454 Total Vessels and other property $ 1,330,795 $ 1,104,727 |
Schedule of Property Plant and Equipment by Segment | All of the Company’s vessels are pledged as collateral under either the 2017 Term Loan Facility, Sinosure Credit Facility, or ABN Term Loan Facility (see Note 8, “Debt”). The aggregate carrying value of the 29 vessels pledged as collateral under the 2017 Term Loan Facility, the six vessels pledged as collateral under Sinosure Credit Facility, and the vessel pledged as collateral under ABN Term Loan Facility at December 31, 2018 was $836,310 , $436,812 , and $51,762 , respectively. A breakdown of the carrying value of the Company’s owned vessels by reportable segment and fleet as of December 31, 2018 and 2017 follows: As of December 31, 2018 Net Average Number of Accumulated Carrying Vessel Age Owned Cost Depreciation Value (by dwt) Vessels Crude Tankers VLCC $ 998,038 $ (200,706) $ 797,332 7.6 13 Suezmax 117,339 (5,914) 111,425 1.4 2 Aframax (1) 95,116 (15,445) 79,671 13.1 3 Panamax 56,357 (2,447) 53,910 16.2 7 Total Crude Tankers 1,266,850 (224,512) 1,042,338 (2) 8.4 25 Product Carriers LR2 73,681 (12,009) 61,672 4.4 1 LR1 106,376 (17,772) 88,604 10.0 4 MR 182,740 (47,592) 135,148 10.0 6 Total Product Carriers 362,797 (77,373) 285,424 (3) 9.1 11 Fleet Total $ 1,629,647 $ (301,885) $ 1,327,762 8.5 36 (1) Net carrying value includes assets capitalized on two bareboat chartered-in Aframaxes. (2) Includes seven VLCCs, one Aframax, and one Panamax with an aggregate carrying value of $429,045 , which the Company believes exceeds their aggregate market values (estimated by taking an average of two third party vessel appraisals) of approximately $341,625 by $87,420 . (3) Includes one LR2, four LR1s and four MRs with an aggregate carrying value of $269,645 , which the Company believes exceeds their aggregate market values (estimated by taking an average of two third party vessel appraisals) of approximately $202,300 by $67,345 . As of December 31, 2017 Net Average Number of Accumulated Carrying Vessel Age Owned Cost Depreciation Value (by dwt) Vessels Crude Tankers VLCC (includes ULCC) $ 663,880 $ (209,966) $ 453,914 12.5 10 Suezmax 117,259 (1,821) 115,438 0.4 2 Aframax 167,146 (21,064) 146,082 12.6 7 Panamax 61,120 (538) 60,582 15.3 8 Total Crude Tankers 1,009,405 (233,389) 776,016 12.1 27 Product Carriers LR2 73,681 (9,305) 64,376 3.4 1 LR1 106,176 (13,122) 93,054 9.0 4 MR 215,098 (46,271) 168,827 11.5 10 Total Product Carriers 394,955 (68,698) 326,257 9.6 15 Fleet Total $ 1,404,360 $ (302,087) $ 1,102,273 11.7 42 |
Vessel/Fleet [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property Plant and Equipment by Segment | Vessel activity for the three years ended December 31, 2018 is summarized as follows: Accumulated Net Book Vessel Cost Depreciation Value Balance at January 1, 2016 $ 1,642,891 $ (404,957) $ 1,237,934 Purchases and vessel additions 2,127 - Depreciation - (63,328) Impairment (166,078) 86,836 Balance at December 31, 2016 1,478,940 (381,449) 1,097,491 Purchases and vessel additions 174,108 - Disposals and transfer to held for sale (23,266) 2,232 Depreciation - (59,883) Impairment (225,422) 137,013 Balance at December 31, 2017 1,404,360 (302,087) 1,102,273 Purchases and vessel additions 459,608 - Disposals (176,300) 16,097 Depreciation - (56,711) Impairment (58,021) 40,816 Balance at December 31, 2018 $ 1,629,647 $ (301,885) $ 1,327,762 |
Drydock [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property | Drydocking activity for the three years ended December 31, 2018 is summarized as follows: 2018 2017 2016 Balance at January 1 $ 30,528 $ 30,557 $ 37,075 Additions 5,616 19,205 8,822 Sub-total 36,144 49,762 45,897 Drydock amortization (15,084) (18,367) (15,340) Amount charged to loss on disposal of vessels (4,287) (867) - Balance at December 31 $ 16,773 $ 30,528 $ 30,557 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments [Abstract] | |
Schedule of Equity Method Investments | Financial information for the equity method investees that were significant for the three years ended December 31, 2018, adjusted for basis and accounting policy differences, is as follows: For the year ended December 31, 2018 2017 2016 Shipping revenues $ 209,571 $ 234,916 $ 247,451 Ship operating expenses (112,541) (106,228) (114,487) Income from vessel operations 97,030 128,688 132,964 Other income 1,494 3,497 830 Interest expense (40,676) (36,831) (43,038) Income tax provision (3,433) (1,886) - Net income $ 54,415 $ 93,468 $ 90,756 Percentage of ownership in equity investees 49.9% - 50.0% 49.9% - 50.0% 49.9% - 50.0% Equity in income of affiliated companies, before consolidating and reconciling adjustments $ 27,187 $ 46,704 $ 45,355 Impairment of equity method investments in FSO Joint Venture - - (30,475) Amortization on deferred gain on 2009 sale of TI Africa to FSO Joint Venture 2,395 2,301 2,409 Amortization of interest capitalized during construction of LNG vessels (419) (419) (419) Other 269 380 (21) Equity in income of affiliated companies $ 29,432 $ 48,966 $ 16,849 |
Equity Method Investments Summarized Balance Sheet Information | As of December 31, 2018 2017 Current assets $ 55,768 $ 77,545 Vessels, net 1,280,853 1,344,613 Other assets 60,498 65,551 Total assets $ 1,397,119 $ 1,487,709 Current liabilities $ 118,323 $ 78,273 Long-term debt and other non-current liabilities 733,575 917,564 Equity 545,221 491,872 Total liabilities and equity $ 1,397,119 $ 1,487,709 Percentage of ownership in equity investees 49.9% - 50.0% 49.9% - 50.0% INSW Share of affiliate's equity, before consolidating and reconciling adjustments $ 272,405 $ 245,751 Impairment of equity method investments in FSO Joint Venture (30,475) (30,475) Advances from shareholders of FSO Joint Venture (2) 28,666 162,762 Unamortized deferred gain on 2009 sale of TI Africa to FSO Joint Venture, net (31,889) (34,284) Unamortized interest capitalized during construction of LNG vessels 9,856 10,275 INSW guarantee for FSO Term Loan 673 - Other (1) 19,086 24,865 Investments in and advances to affiliated companies $ 268,322 $ 378,894 (1) Primarily relates to working capital deposits that the Company maintains with the commercial pools in which it participates. (2) Such advances are unsecured, interest free and not repayable within one year. See Note |
VARIABLE INTEREST ENTITIES ("_2
VARIABLE INTEREST ENTITIES ("VIEs") (Tables) | 12 Months Ended |
Dec. 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 consolidated balance sheets related to the VIEs described above as of December 31, 2018 and 2017: Consolidated Balance Sheet as of December 31, 2018 2017 Investments in Affiliated Companies $ 139,359 $ 255,456 |
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 consolidated balance sheet to the maximum exposure to loss at December 31, 2018: Consolidated Balance Sheet Maximum Exposure to Loss Other Liabilities $ 673 $ 232,908 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Long-term Debt Instruments | Debt consists of the following: December 31, December 31, 2018 2017 2017 Term Loan Facility, due 2022, net of unamortized discount and deferred finance costs of $20,032 and $23,074 $ 444,344 $ 523,489 2017 Revolver Facility, net of unamortized deferred finance costs of $552 - 29,448 ABN Term Loan Facility, due 2023, net of unamortized deferred finance costs of $845 25,879 - Sinosure Credit Facility, due 2027 - 2028, net of unamortized deferred finance costs of $2,664 290,620 - 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,402 23,598 - 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,705 26,226 - 810,667 552,937 Less current portion (51,555) (24,063) Long-term portion $ 759,112 $ 528,874 Capitalized terms used hereafter have the meaning given in these consolidated financial statements or in the respective transaction documents referred to below, including subsequent amendments thereto. |
Schedule of Applicable Margins and Floor Interest Rates Exit Financing Facility | The applicable margins and floor interest rates for each facility are as follows: Facility 2017 Term Loan Facility 2017 Revolver Facility Rate ABR LIBOR ABR LIBOR Floor 2.00% 1.00% 2.00% 1.00% Applicable Margin 5.00% 6.00% 2.50% 3.50% |
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2018, the aggregate annual principal payments required to be made on the Company’s debt facilities are as follows: Year Amount 2019 $ 51,555 2020 51,555 2021 51,555 2022 417,930 2023 89,330 Thereafter 175,390 Aggregate principal payments required $ 837,315 |
Schedule of Interest Paid | The following table summarizes 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, recognized during the years ended December 31, 2018, 2017 and 2016 with respect to the Company’s debt facilities: Debt facility 2018 2017 2016 2017 Term Loan Facility, due 2022 $ 45,601 $ 22,546 $ - 2017 Revolver Facility 475 495 - ABN Term Loan Facility, due 2023 1,024 - - Sinosure Credit Facility, due 2027 - 2028 8,350 - - 8.5% Senior Notes, due 2023 1,396 - - 10.75% Subordinated Notes, due 2023 2,032 - - INSW Facilities, due 2019 - 16,743 38,442 Total debt related interest expense $ 58,878 $ 39,784 $ 38,442 The following table summarizes interest paid, excluding deferred financing fees paid, and capitalized interest, during the years ended December 31, 2018, 2017 and 2016 with respect to the Company’s debt facilities: Debt facility 2018 2017 2016 2017 Term Loan Facility, due 2022 $ 42,825 $ 16,319 $ - 2017 Revolver Facility 442 316 - ABN Term Loan Facility, due 2023 795 - - Sinosure Credit Facility, due 2027 - 2028 7,225 - - 8.5% Senior Notes, due 2023 1,250 - - 10.75% Subordinated Notes, due 2023 1,591 - - INSW Facilities, due 2019 - 16,732 33,039 Total debt related interest expense paid $ 54,128 $ 33,367 $ 33,039 |
Parent Company [Member] | |
Schedule of Long-term Debt Instruments | Debt consists of the following: As of December 31, 2018 2017 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,402 $ 23,598 $ - 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,705 26,226 - 49,824 - Less current portion - - Long-term debt $ 49,824 $ - |
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2018, the aggregate annual principal payments required to be made on the 8.5% Senior Notes and 10.75% Unsecured Subordinated Notes and are as follows: Year Amount 2019 $ - 2020 - 2021 - 2022 - 2023 52,931 Aggregate principal payments required $ 52,931 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 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, at December 31, 2018 and 2017, are as follows: Fair Value Level 1 Level 2 December 31, 2018: Cash and cash equivalents (1) $ 117,644 $ 117,644 $ - 2017 Term Loan Facility (459,731) - (459,731) ABN Term Loan Facility (26,724) - (26,724) Sinosure Credit Facility (293,284) - (293,284) 8.5% Senior Notes (22,960) (22,960) - 10.75% Subordinated Notes (29,094) - (29,094) 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 $59,331 and $10,579 at December 31, 2018 and 2017, respectively. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information with respect to the fair values of derivatives reflected in the December 31, 2018 and 2017 balance sheets on a gross basis by transaction: Fair Values of Derivative Instruments: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount December 31, 2018: Derivatives designated as hedging instruments: Interest rate cap: Current portion Current portion of derivative asset $ 460 Current portion of derivative liability $ - Long-term portion Long-term derivative asset 704 Long-term derivative liability - Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (707) Long-term portion Long-term derivative asset - Long-term derivative liability (1,922) Total derivatives designated as hedging instruments $ 1,164 $ (2,629) December 31, 2017: Derivatives designated as hedging instruments: Interest rate cap: Current portion Current portion of derivative asset $ 16 Current portion of derivative liability $ - Long-term portion Long-term derivative asset 886 Long-term derivative liability - 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 loss excluding amounts reclassified from accumulated other comprehensive loss (effective portion), including hedges of equity method investees, for the years ended December 31, 2018, 2017 and 2016 follows: For the year ended December 31, 2018 2017 2016 Interest rate swaps $ (1,948) $ (1,132) $ (3,050) Interest rate cap 261 (8) (2) Total $ (1,687) $ (1,140) $ (3,052) The effect of cash flow hedging relationships on the consolidated statements of operations is presented excluding hedges of equity method investees. The effect of the Company’s cash flow hedging relationships on the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016 is shown below: Statement of Operations Effective Portion of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss Ineffective Portion Amount of Amount of Location Gain/(Loss) Location Gain/(Loss) For the year ended December 31, 2018: Interest rate cap Interest expense $ (21) Interest expense $ - Interest rate swaps Interest expense (471) Interest expense - Total $ (492) $ - For the year ended December 31, 2017: Interest rate cap Interest expense $ (131) Interest expense $ - Total $ (131) $ - For the year ended December 31, 2016: Interest rate cap Interest expense $ (517) Interest expense $ - Total $ (517) $ - |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 2 Assets/(Liabilities) at December 31, 2018 Derivative Assets (interest rate cap) $ 1,164 $ 1,164 (1) Derivative Liabilities (interest rate swaps) (2,629) (2,629) (1) Assets/(Liabilities) at December 31, 2017 Derivative Assets (interest rate cap) $ 902 $ 902 (1) (1) For the interest rate caps and swaps, 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. |
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table summarizes the fair values of assets for which an impairment charge was recognized for the year ended December 31, 2018: Impairment Description Fair Value Level 2 Charges Crude Tankers - Vessels held and used (1)(2) $ 7,025 $ 7,025 $ (948) Crude Tankers - Vessels held for sale (1)(2) $ 17,665 $ 17,665 $ (16,419) Product Tankers - Vessels held and used (1)(2) $ 9,000 $ 9,000 $ (1,670) (1) Pre-tax impairment charges of $948 related to one Panamax vessel in the Crude Tanker segment, $16,419 related to one VLCC vessel in the Crude Tanker segment and $1,670 related to one MR vessel in the Product Tankers segment were recorded during the three-month periods ended June 30, 2018, September 30, 2018 and December 31, 2018, respectively. The held-for-sale impairment charges aggregating $16,419 as of September 30, 2018 included a charge of $14,226 to write the value of the vessel down to its estimated fair value, estimated costs to sell the vessel of $361 , and write-off of assets on the vessel of $1,832 which were incurred as a result of held-for-sale impairment. (2) Fair value measurement of $7,025 at June 30, 2018 used to determine the impairment for one Panamax vessel and fair value measurement of $17,665 at September 30, 2018 used to determine impairment for one VLCC vessel were based upon a market approach, which considered the expected sale prices of the vessels based on executed memorandums of agreement for the sale of each of the vessels as discussed in Note 5, "Vessels, Deferred Drydock and Other Property." Fair value measurement of $9,000 at December 31, 2018 used to determine impairment for one MR vessel was based upon a market approach, which considered a combination of third-party appraisals and the Company’s recently executed sale transaction for a sister ship. Because sales of vessels occur somewhat infrequently the expected sales prices are considered to be Level 2. |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities | At December 31, 2018 2017 Accounts payable $ 1,164 $ 330 Payroll and benefits 4,510 5,897 Interest 770 3,437 Due to owners on chartered in vessels 870 867 Accrued drydock, repairs and vessel betterment costs 1,974 981 Bunkers and lubricants 1,833 1,893 Charter revenues received in advance 450 1,775 Insurance 573 575 Accrued vessel expenses 6,816 3,369 Accrued general and administrative expenses 1,364 1,599 Other 2,650 2,082 Total accounts payable, accrued expense and other current liabilities $ 22,974 $ 22,805 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes [Abstract] | |
Components of Income Tax (Provisions) and Benefits | The components of the income tax benefits/(provisions) follow: For the year ended December 31, 2018 2017 2016 Current $ 105 $ (44) $ (440) Deferred - - - Income tax benefit/(provision) $ 105 $ (44) $ (440) |
Reconcilation of Effective to Statutory Tax Rate | The differences between income taxes expected at the Marshall Islands statutory income tax rate of zero percent and the reported income tax benefits/(provisions) are summarized as follows: For the year ended December 31, 2018 2017 2016 Marshall Islands statutory income tax rate - % - % - % Change in valuation allowance (0.66) % (0.78) % (25.29) % Liquidation of subsidiaries - % 0.88 % 29.53 % Income subject to tax in other jurisdictions 0.54 % (0.06) % (1.76) % Effective income tax rate (0.12) % 0.04 % 2.48 % |
Components of Deferred Tax Liabilities and Assets | The significant components of the Company’s deferred tax liabilities and assets follow: As of December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 1,435 $ 1,178 Excess of tax over book basis of depreciable assets 548 548 Pensions 2,007 2,852 Total deferred tax assets 3,990 4,578 Less: Valuation allowance (3,990) (4,578) Deferred tax assets, net - - Net noncurrent deferred tax assets/(liabilities) $ - $ - |
Reconcilation of Amounts of Unrecognized Tax Benefits | The following is tabular rollforward of the Company’s unrecognized tax benefits (excluding interest and penalties) which are included in other current liabilities in the consolidated balance sheets: 2018 2017 Balance of unrecognized tax benefits as of January 1, $ 153 $ 153 Decreases for positions taken in prior years (70) - Increases for positions taken in current year 1 - Settlement (77) - Balance of unrecognized tax benefits as of December 31, $ 7 $ 153 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTIES [Abstract] | |
Schedule of Related Party Transactions | The following tables show certain related party transactions between INSW and OSG: For the year ended December 31, 2018 2017 2016 Corporate overhead allocations from OSG General and administrative $ - $ - $ 21,486 Depreciation - - 517 Separation and transition costs - - 6,569 Reorganization items, net - - 131 Total corporate overhead allocations from OSG $ - $ - $ 28,703 |
CAPITAL STOCK AND STOCK COMPE_2
CAPITAL STOCK AND STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock and Stock Compensation [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Activity with respect to restricted common stock and restricted stock units under INSW compensation plans is summarized as follows: Activity for the three years ended December 31, 2018 Common Stock Nonvested Shares Outstanding at December 31, 2015 - RSUs issued to replace OSG RSUs 110,294 Granted 32,067 Vested ( $19.04 per share) (1) (25,103) Nonvested Shares Outstanding at December 31, 2016 117,258 Granted 165,503 Vested ( $18.21 - $19.13 per share) (1) (108,584) Nonvested Shares Outstanding at December 31, 2017 174,177 Granted (2) 173,573 Forfeitures (3) (19,995) Vested ( $18.62 - $24.05 per share) (1) (97,554) Nonvested Shares Outstanding at December 31, 2018 230,201 (1) Includes 6,508 (2016) , 18,144 (2017) and 21,752 (2018) shares of common stock sold back (in the year of vesting or during the first quarter of the subsequent year) to the Company by employees to cover withholding taxes. (2) Includes 3,120 incremental performance restricted stock units earned as a result of above target achievement of market condition at December 31, 2018. (3) Represents restricted stock units forfeited because performance targets were not achieved as of the December 31, 2018 measurement date. |
Schedule of Share-based Compensation, Stock Options, Activity | Activity with respect to stock options under INSW compensation plans is summarized as follows: Activity for the three years ended December 31, 2018 Common Stock Options Outstanding at December 31, 2015 - Options issued to replace OSG options 127,559 Exercised - Options Outstanding at December 31, 2016 127,559 Granted 148,271 Exercised - Options Outstanding at December 31, 2017 275,830 Granted 124,955 Exercised - Options Outstanding at December 31, 2018 400,785 Options Exercisable at December 31, 2018 181,336 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of related taxes, in the consolidated balance sheets follow: At December 31, 2018 2017 Unrealized losses on derivative instruments $ (21,520) $ (28,989) Items not yet recognized as a component of net periodic benefit cost (pension plans) (8,409) (11,418) $ (29,929) $ (40,407) The following tables present the changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, for the three years ended December 31, 2018. Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Foreign currency translation adjustment Total Balance at December 31, 2017 $ (28,989) $ (11,418) $ - $ (40,407) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (1,687) 1,107 - (580) Amounts reclassified from accumulated other comprehensive loss 9,156 1,902 - 11,058 Total change in accumulated other comprehensive loss 7,469 3,009 - 10,478 Balance at December 31, 2018 $ (21,520) $ (8,409) $ - $ (29,929) Balance at December 31, 2016 $ (40,317) $ (11,950) $ - $ (52,267) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (1,140) 17 - (1,123) Amounts reclassified from accumulated other comprehensive loss 12,468 515 - 12,983 Total change in accumulated other comprehensive loss 11,328 532 - 11,860 Balance at December 31, 2017 $ (28,989) $ (11,418) $ - $ (40,407) Balance at December 31, 2015 $ (53,446) $ (10,636) $ (42) $ (64,124) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (3,052) (2,364) 42 (5,374) Amounts reclassified from accumulated other comprehensive loss 16,181 1,050 - 17,231 Total change in accumulated other comprehensive loss 13,129 (1,314) 42 11,857 Balance at December 31, 2016 $ (40,317) $ (11,950) $ - $ (52,267) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table presents information with respect to amounts reclassified out of accumulated other comprehensive loss for the three years ended December 31, 2017. Years Ended December 31, Accumulated Other Comprehensive Loss Component 2018 2017 2016 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 $ (8,664) $ (12,337) $ (15,664) affiliated companies Interest rate swaps entered into by the Company's subsidiaries (471) - - Interest expense Interest rate caps entered into by the Company's subsidiaries (21) (131) (517) Interest expense Items not yet recognized as a component of net periodic benefit cost (pension plans): Net periodic benefit costs associated with pension and postretirement benefit plans for shore-based employees (1,902) (515) (1,050) Other expense $ (11,058) $ (12,983) $ (17,231) Total before and net of tax |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Schedule of Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by revenue source for the year ended December 31, 2018. Crude Product Tankers Carriers Other Totals For the year ended December 31, 2018: Pool revenues Asset lease component $ 52,791 $ 16,593 $ - $ 69,384 Technical management services component 58,423 49,399 - 107,822 Time and bareboat charter revenues Asset lease component 7,199 1,873 - 9,072 Technical management services component 16,889 - - 16,889 Voyage charter revenues Asset lease component 16,936 100 - 17,036 Technical management services component 5,092 - - 5,092 Lightering services component 45,066 - - 45,066 Total shipping revenues $ 202,396 $ 67,965 $ - $ 270,361 |
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 significant 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 December 31, 2018 6,898 87,725 (450) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ - $ - $ 918 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bareboat Charters-In [Member] | |
Lease [Abstract] | |
Operating Leases of Lessee Disclosure | The future minimum commitments and related number of operating days under these non-cancelable operating leases are as follows: Bareboat Charters-in: At December 31, 2018 Amount Operating Days 2019 $ 6,278 730 2020 6,295 732 2021 6,278 730 2022 6,278 730 2023 4,782 556 Net minimum lease payments $ 29,911 3,478 |
Charters-Out [Member] | |
Lease [Abstract] | |
Operating Leases of Lessee Disclosure | The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for four panamaxes 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: At December 31, 2018 Amount Revenue Days 2019 $ 2,587 221 Future minimum revenues $ 2,587 221 |
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 December 31, 2018 Amount Operating Days 2019 $ 12,934 1,421 Net minimum lease payments $ 12,934 1,421 |
Property Subject to Operating Lease [Member] | Office Space [Member] | |
Lease [Abstract] | |
Schedule of Property Subject to or Available for Operating Lease | The future minimum commitments under all lease obligations for office and lightering workboat dock space are as follows: At December 31, 2018 Amount 2019 $ 1,219 2020 1,152 2021 665 Net minimum lease payments $ 3,036 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Other Postretirement Benefit Plans [Abstract] | |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | Information with respect to the Scheme for which INSW uses a December 31 measurement date, is as follows: Pension Benefits At December 31, 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 31,527 $ 29,240 Prior service cost 152 - Interest cost on benefit obligation 707 797 Actuarial gains (2,848) (519) Benefits paid (696) (770) Settlements (3,706) - Foreign exchange (gains)/losses (1,322) 2,779 Benefit obligation at year end 23,814 31,527 Change in plan assets: Fair value of plan assets at beginning of year 29,527 25,466 Actual return on plan assets (1,009) 1,714 Employer contributions - 787 Benefits paid (696) (770) Settlements (3,761) - Plan Administrative Expense - (64) Foreign exchange (losses)/gains (1,276) 2,394 Fair value of plan assets at year end 22,785 29,527 Unfunded status at December 31 $ (1,029) $ (2,000) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information for the defined benefit pension plan with accumulated benefit obligations in excess of plan assets follows: At December 31, 2018 2017 Projected benefit obligation $ 23,814 $ 31,527 Accumulated benefit obligation 23,814 31,527 Fair value of plan assets 22,785 29,527 |
Schedule of Net Benefit Costs | Pension benefits For the year ended December 31, 2018 2017 2016 Components of expense: Plan administration costs $ - $ 64 $ - Interest cost on benefit obligation 707 797 886 Expected return on plan assets (1,029) (1,041) (951) Amortization of prior-service costs 71 68 67 Recognized net actuarial loss 388 447 343 Recognized settlement loss 1,442 - 640 Net periodic benefit cost $ 1,579 $ 335 $ 985 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The weighted-average assumptions used to determine benefit obligations follow: Pension benefits At December 31, 2018 2017 Discount rate 2.80% 2.40% |
Schedule of Assumptions Used | The weighted-average assumptions used to determine net periodic benefit costs follow: Pension benefits For the year ended December 31, 2018 2017 2016 Discount rate 2.40% 2.60% 3.80% Expected (long-term) return on plan assets 3.85% 3.85% 5.62% Rate of future compensation increases - - - |
Schedule of Expected Benefit Payments | Expected benefit payments are as follows: Pension benefits 2019 $ 698 2020 734 2021 771 2022 809 2023 850 Years 2024-2028 4,928 $ 8,790 |
Schedule of Changes in Fair Value of Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2018, by asset category are as follows: Description Fair Value Level 1 Level 2 (1) Cash and cash equivalents $ 103 $ 103 $ - Managed funds 22,682 - 22,682 Total $ 22,785 $ 103 $ 22,682 (1) Quoted prices for the managed funds are not available from an active market source since such investments are pooled investment funds. The unitized pooled investment vehicles have been valued at the latest available bid price or single price provided by the pooled investment manager. Shares in other pooled arrangements have been valued at the latest available net asset value, determined in accordance with fair value principles, provided by the pooled investment manager. |
OTHER EXPENSE (Tables)
OTHER EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER EXPENSE [Abstract] | |
Schedule of Other Nonoperating Expense | For the year ended December 31, 2018 2017 2016 Investment income: Interest $ 1,300 $ 676 $ 376 1,300 676 376 Net actuarial (loss)/gain on pension (902) 526 (380) Write-off of deferred financing costs (2,400) (7,020) (5,097) (Loss)/gain on extinguishment of debt (1,295) - 3,755 Other (418) - - $ (3,715) $ (5,818) $ (1,346) |
2017 AND 2016 QUARTERLY RESUL_2
2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS (Table) | 12 Months Ended |
Dec. 31, 2018 | |
2017 AND 2016 QUARTERLY RESULTS OF OPERATIONS [Abstract] | |
Schedule of Quarterly Financial Information | Selected Financial Data for the Quarter Ended March 31, June 30, Sept. 30, Dec. 31, 2018 Shipping revenues $ 51,978 $ 56,909 $ 60,926 $ 100,548 (Loss)/gain on disposal of vessels and other property, including impairments (6,573) 6,740 (17,360) (2,487) (Loss)/income from vessel operations (26,706) (9,669) (36,021) 17,865 Interest expense (11,621) (13,086) (17,320) (18,204) Income tax (provision)/benefit (8) - (3) 116 Net (loss)/income (29,316) (18,796) (47,786) 6,958 Basic and Diluted net (loss)/income per share $ (1.01) $ (0.65) $ (1.64) $ 0.24 Selected Financial Data for the Quarter Ended March 31, June 30, Sept. 30, Dec. 31, 2017 Shipping revenues $ 88,750 $ 71,957 $ 59,968 $ 69,426 Loss on disposal of vessels and other property, including impairments - - (5,406) (81,449) Income/(loss) from vessel operations 13,428 (9,559) (23,662) (88,152) Interest expense (9,167) (9,278) (11,232) (11,570) Income tax provision (4) (4) (23) (13) Net income/(loss) 18,067 (11,619) (21,816) (90,720) Basic and Diluted net income/(loss) per share $ 0.62 $ (0.40) $ (0.75) $ (3.12) |
REORGANIZATION ITEMS, NET (Tabl
REORGANIZATION ITEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Chapter 11 Filing Going Concern and Other Related Matters [Abstract] | |
Schedule of Reorganization Items Net | Reorganization items, net represent amounts incurred subsequent to the bankruptcy date as a direct result of the filing of the Chapter 11 cases. For the year ended December 31, 2018 2017 2016 Allocated trustee fees $ - $ - $ 74 Allocated professional fees - - (3,220) Other claim adjustments - - 3,277 $ - $ - $ 131 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Narrative) (Details) | Dec. 31, 2018propertyshares | Dec. 31, 2017shares |
Schedule of Equity Method Investments [Line Items] | ||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 |
Number of vessels in fleet | property | 48 | |
Number of vessels owned (including joint ventures) | property | 42 | |
Parent Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts receivable | $ 27,000 | $ 108,000 | |
Amortization of financing costs | 3,933,000 | 5,115,000 | $ 6,449,000 |
Defined benefit plan, interest cost | 707,000 | 797,000 | 886,000 |
Restricted cash and cash equivalents, noncurrent | 59,331,000 | 10,579,000 | |
Right of use assets and lease liabilities | 31,500,000 | ||
Aggregate distributions from affiliates, equity method investment | 40,750,000 | 18,500,000 | |
Repayments of advances from joint venture investees | 100,780,000 | 19,530,000 | 6,334,000 |
Equity method distribution, operating activities | 21,220,000 | 12,166,000 | |
Proceeds from Insurance Settlement, Operating Activities | $ 5,436,000 | 1,964,000 | 1,942,000 |
Accounting Standards Update 2017-07 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Defined benefit plan, actuarial gain (loss), immediate recognition as component in net periodic benefit (cost) credit | 526,000 | (380,000) | |
Defined benefit plan, interest cost | $ 809,000 | 886,000 | |
Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 88.00% | 89.00% | |
Vessel/Fleet [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Property, plant and equipment salvage, value per ton | $ / item | 300 | ||
Interest costs capitalized | $ 0 | $ 0 | $ 0 |
Other Property [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Other Property [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Drydock [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period for deferred costs | 2 years 6 months | ||
Drydock [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period for deferred costs | 5 years |
EARNINGS PER COMMON SHARE (Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 523,544 | 397,833 | 11,153 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 139,506 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 400,785 | ||
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Participaing securities allocated a portion of income | 42,449 | 1,489 | |
Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Participaing securities allocated a portion of income | 35,876 |
EARNINGS PER COMMON SHARE (Calc
EARNINGS PER COMMON SHARE (Calculation of EPS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per Common Share [Abstract] | |||||||||||
Common Stockholders | $ (88,940) | $ (106,088) | $ (18,223) | ||||||||
Net (Loss)/Income | $ 6,958 | $ (47,786) | $ (18,796) | $ (29,316) | $ (90,720) | $ (21,816) | $ (11,619) | $ 18,067 | $ (88,940) | $ (106,088) | $ (18,223) |
Weighted average common shares outstanding: | |||||||||||
Basic | 29,136,634 | 29,159,440 | 29,157,992 | ||||||||
Diluted | 29,136,634 | 29,159,440 | 29,157,992 |
BUSINESS AND SEGMENT REPORTIN_2
BUSINESS AND SEGMENT REPORTING (Reportable Segments Information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Shipping revenues | $ 100,548 | $ 60,926 | $ 56,909 | $ 51,978 | $ 69,426 | $ 59,968 | $ 71,957 | $ 88,750 | $ 270,361 | $ 290,101 | $ 398,319 |
Time charter equivalent revenues | 243,100 | 274,995 | 385,045 | ||||||||
Depreciation and amortization | 72,428 | 78,853 | 79,885 | ||||||||
Loss on disposal of vessels and other property, including impairments | 2,487 | $ 17,360 | $ (6,740) | $ 6,573 | 81,449 | $ 5,406 | 19,680 | 86,855 | 79,203 | ||
Adjusted income/(loss) from vessel operations | (9,241) | 13,207 | 125,805 | ||||||||
Equity in (loss)/income of affiliated companies | 29,432 | 48,966 | 16,849 | ||||||||
Investments in and advances to affiliated companies | 268,322 | 378,894 | 268,322 | 378,894 | 358,681 | ||||||
Adjusted total assets | 1,726,437 | 1,589,644 | 1,726,437 | 1,589,644 | 1,565,678 | ||||||
Total assets | 1,848,601 | 1,664,484 | 1,848,601 | 1,664,484 | |||||||
Expenditures for vessels and vessel improvements | 148,946 | 173,535 | 1,988 | ||||||||
Payments for drydockings | 4,520 | 21,396 | 9,258 | ||||||||
International Crude Tankers Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Shipping revenues | 202,396 | 192,426 | 271,764 | ||||||||
Time charter equivalent revenues | 175,524 | 178,812 | 258,171 | ||||||||
Depreciation and amortization | 54,431 | 56,302 | 52,395 | ||||||||
Loss on disposal of vessels and other property, including impairments | 22,992 | 85,625 | 7,585 | ||||||||
Adjusted income/(loss) from vessel operations | 2,194 | 21,623 | 111,768 | ||||||||
Equity in (loss)/income of affiliated companies | 19,582 | 34,577 | 5,584 | ||||||||
Investments in and advances to affiliated companies | 143,789 | 260,884 | 143,789 | 260,884 | 266,470 | ||||||
Adjusted total assets | 1,285,433 | 1,104,714 | 1,285,433 | 1,104,714 | 1,066,184 | ||||||
Expenditures for vessels and vessel improvements | 146,322 | 172,164 | 691 | ||||||||
Payments for drydockings | 4,121 | 17,606 | 7,636 | ||||||||
International Product Carriers Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Shipping revenues | 67,965 | 97,675 | 126,555 | ||||||||
Time charter equivalent revenues | 67,576 | 96,183 | 126,314 | ||||||||
Depreciation and amortization | 17,862 | 22,418 | 26,696 | ||||||||
Loss on disposal of vessels and other property, including impairments | (3,312) | 1,230 | 71,456 | ||||||||
Adjusted income/(loss) from vessel operations | (12,002) | (8,385) | 13,327 | ||||||||
Investments in and advances to affiliated companies | 12,321 | 15,612 | 12,321 | 15,612 | 15,296 | ||||||
Adjusted total assets | 328,792 | 382,905 | 328,792 | 382,905 | 422,579 | ||||||
Expenditures for vessels and vessel improvements | 2,624 | 1,371 | 1,297 | ||||||||
Payments for drydockings | 399 | 3,790 | 1,622 | ||||||||
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Time charter equivalent revenues | 560 | ||||||||||
Depreciation and amortization | 135 | 133 | 794 | ||||||||
Loss on disposal of vessels and other property, including impairments | 162 | ||||||||||
Adjusted income/(loss) from vessel operations | 567 | (31) | 710 | ||||||||
Equity in (loss)/income of affiliated companies | 9,850 | 14,389 | 11,265 | ||||||||
Investments in and advances to affiliated companies | 112,212 | 102,398 | 112,212 | 102,398 | 76,915 | ||||||
Adjusted total assets | $ 112,212 | $ 102,025 | $ 112,212 | $ 102,025 | $ 76,915 |
BUSINESS AND SEGMENT REPORTIN_3
BUSINESS AND SEGMENT REPORTING (Reconciliation of Time Charter Revenue to Shipping Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business and Segment Reporting [Abstract] | |||||||||||
Time charter equivalent revenues | $ 243,100 | $ 274,995 | $ 385,045 | ||||||||
Add: Voyage expenses | 27,261 | 15,106 | 13,274 | ||||||||
Shipping revenues | $ 100,548 | $ 60,926 | $ 56,909 | $ 51,978 | $ 69,426 | $ 59,968 | $ 71,957 | $ 88,750 | $ 270,361 | $ 290,101 | $ 398,319 |
BUSINESS AND SEGMENT REPORTIN_4
BUSINESS AND SEGMENT REPORTING (Reconciliation of Income from Vessel Operations to Loss Before Reorganization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total adjusted income (loss) from vessel operations of all segments | $ (9,241) | $ 13,207 | $ 125,805 | ||||||||
General and administrative expenses | (24,304) | (24,453) | (30,352) | ||||||||
Third-party debt modification costs | 1,306 | 9,240 | |||||||||
Separation and transition costs | (604) | (9,043) | |||||||||
(Loss)/gain on disposal of vessels and other property, including impairments | $ (2,487) | $ (17,360) | $ 6,740 | $ (6,573) | $ (81,449) | $ (5,406) | (19,680) | (86,855) | (79,203) | ||
Consolidated (loss)/income from vessel operations | 17,865 | (36,021) | (9,669) | (26,706) | (88,152) | (23,662) | $ (9,559) | $ 13,428 | (54,531) | (107,945) | 7,207 |
Equity in (loss)/income of affiliated companies | 29,432 | 48,966 | 16,849 | ||||||||
Other expense | (3,715) | (5,818) | (1,346) | ||||||||
Interest expense | $ (18,204) | $ (17,320) | $ (13,086) | $ (11,621) | $ (11,570) | $ (11,232) | $ (9,278) | $ (9,167) | (60,231) | (41,247) | (40,362) |
Reorganization items, net | (131) | ||||||||||
Loss before income taxes | (89,045) | (106,044) | (17,783) | ||||||||
Vessel Operations [Member] | |||||||||||
Total adjusted income (loss) from vessel operations of all segments | (9,241) | 13,207 | 125,805 | ||||||||
General and administrative expenses | (24,304) | (24,453) | (30,352) | ||||||||
Third-party debt modification costs | 1,306 | 9,240 | |||||||||
Separation and transition costs | (604) | (9,043) | |||||||||
(Loss)/gain on disposal of vessels and other property, including impairments | (19,680) | (86,855) | (79,203) | ||||||||
Consolidated (loss)/income from vessel operations | (54,531) | (107,945) | 7,207 | ||||||||
Equity in (loss)/income of affiliated companies | 29,432 | 48,966 | 16,849 | ||||||||
Other expense | (3,715) | (5,818) | (1,346) | ||||||||
Interest expense | (60,231) | (41,247) | (40,362) | ||||||||
Reorganization items, net | (131) | ||||||||||
Loss before income taxes | $ (89,045) | $ (106,044) | $ (17,783) |
BUSINESS AND SEGMENT REPORTIN_5
BUSINESS AND SEGMENT REPORTING (Reconcilation of Assets of Segments to Consolidated Amounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 1,726,437 | $ 1,589,644 | $ 1,565,678 |
Cash and cash equivalents | 58,313 | 60,027 | |
Restricted cash | 59,331 | 10,579 | |
Total assets | 1,848,601 | 1,664,484 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Restricted cash | 59,331 | 10,579 | |
Unrestricted cash | 58,313 | 60,027 | |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted total assets | 112,212 | 102,025 | $ 76,915 |
Other unallocated amounts | 4,520 | 4,234 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 1,726,437 | $ 1,589,644 |
BUSINESS AND SEGMENT REPORTIN_6
BUSINESS AND SEGMENT REPORTING (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Vessels Deferred Dry Dock and Other Property | $ 1,347,568 | $ 1,140,363 | $ 1,130,607 |
International Crude Tankers Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Vessels Deferred Dry Dock and Other Property | 1,057,994 | 800,362 | 753,028 |
International Product Carriers Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Vessels Deferred Dry Dock and Other Property | 289,317 | 339,627 | 377,095 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Vessels Deferred Dry Dock and Other Property | $ 257 | $ 374 | $ 484 |
VESSELS, DEFERRED DRYDOCK AND_3
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Narrative) (Details) - USD ($) | Jun. 14, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | $ 16,419,000 | |||||||
Impairment of long-lived assets held-for-use | $ 19,037,000 | $ 88,408,000 | $ 79,242,000 | |||||
Payments to acquire equipment | 148,946,000 | 173,535,000 | 1,988,000 | |||||
Gain (loss) on disposition of property | (643,000) | 1,553,000 | 39,000 | |||||
Payable associated with acquisition of assets | 20,935,000 | $ 0 | ||||||
Vessel/Fleet [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | 58,021,000 | 225,422,000 | 166,078,000 | |||||
Very Large Crude Carrier [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | 14,226,000 | |||||||
Very Large Crude Carrier Cost To Sell [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | 361,000 | |||||||
Very Large Crude Carrier Operational Costs [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | $ 1,832,000 | |||||||
2-LRs, 1 Aframax and 1 Panamax [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | $ 49,640,000 | |||||||
1-MR Vessel [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets to be disposed of | 1,670,000 | |||||||
1 Panamax and 7 MRs Vessels [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | 29,602,000 | |||||||
12-vessels (1-ULCC, 1-VLCC, 4-Aframaxes and 6-Panamaxes) [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | 81,062,000 | |||||||
3-vessels (1-Panamax and 2-MRs) [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment of long-lived assets held-for-use | $ 7,346,000 | |||||||
6-VLCCs [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Payments to acquire equipment | $ 120,025,000 | |||||||
Purchase agreement, purchase amount | $ 434,000,000 | |||||||
2-Suezmax 2017 Built Vessels [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Payments to acquire equipment | 116,000,000 | |||||||
1-VLCC 2010 Built Vessel [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Payments to acquire equipment | 53,000,000 | |||||||
Certain Vessels Sold [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Gain (loss) on disposition of property | 643,000 | 1,594,000 | ||||||
Facilities | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Debt instrument, collateral amount | $ 836,310,000 | $ 436,812,000 | $ 51,762,000 |
VESSELS, DEFERRED DRYDOCK AND_4
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Vessels and Other Property) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||||
Net Carrying Value | $ 1,330,795 | $ 1,104,727 | ||
Vessel/Fleet and Other Property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Net Carrying Value | 1,330,795 | 1,104,727 | ||
Vessel/Fleet [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,629,647 | 1,404,360 | $ 1,478,940 | $ 1,642,891 |
Accumulated Depreciation | (301,885) | (302,087) | (381,449) | (404,957) |
Net Carrying Value | 1,327,762 | 1,102,273 | $ 1,097,491 | $ 1,237,934 |
Other Property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 8,199 | 7,377 | ||
Accumulated Depreciation | (5,166) | (4,923) | ||
Net Carrying Value | $ 3,033 | $ 2,454 |
VESSELS, DEFERRED DRYDOCK AND_5
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Breakdown of Vessel Carrying Value) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Net Carrying Value | $ 1,330,795 | $ 1,104,727 | ||
Vessel/Fleet [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,629,647 | 1,404,360 | $ 1,478,940 | $ 1,642,891 |
Accumulated Depreciation | (301,885) | (302,087) | (381,449) | (404,957) |
Net Carrying Value | $ 1,327,762 | $ 1,102,273 | $ 1,097,491 | $ 1,237,934 |
Average Vessel Age | 8 years 6 months | 11 years 8 months 12 days | ||
Number of owned vessels | item | 36 | 42 | ||
International Crude Tankers Segment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 1,266,850 | $ 1,009,405 | ||
Accumulated Depreciation | (224,512) | (233,389) | ||
Net Carrying Value | $ 1,042,338 | $ 776,016 | ||
Average Vessel Age | 8 years 4 months 24 days | 12 years 1 month 6 days | ||
Number of owned vessels | item | 25 | 27 | ||
Property, plant and equipment, fair value | $ 7,025 | |||
International Crude Tankers Segment [Member] | VLCCs (included ULCC) [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 998,038 | 663,880 | ||
Accumulated Depreciation | (200,706) | (209,966) | ||
Net Carrying Value | $ 797,332 | $ 453,914 | ||
Average Vessel Age | 7 years 7 months 6 days | 12 years 6 months | ||
Number of owned vessels | item | 13 | 10 | ||
International Crude Tankers Segment [Member] | Aframaxes (LR2) [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 95,116 | $ 167,146 | ||
Accumulated Depreciation | (15,445) | (21,064) | ||
Net Carrying Value | $ 79,671 | $ 146,082 | ||
Average Vessel Age | 13 years 1 month 6 days | 12 years 7 months 6 days | ||
Number of owned vessels | item | 3 | 7 | ||
International Crude Tankers Segment [Member] | Suzemax [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 117,339 | $ 117,259 | ||
Accumulated Depreciation | (5,914) | (1,821) | ||
Net Carrying Value | $ 111,425 | $ 115,438 | ||
Average Vessel Age | 1 year 4 months 24 days | 4 months 24 days | ||
Number of owned vessels | item | 2 | 2 | ||
International Crude Tankers Segment [Member] | Panamaxes (LR1) [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 56,357 | $ 61,120 | ||
Accumulated Depreciation | (2,447) | (538) | ||
Net Carrying Value | $ 53,910 | $ 60,582 | ||
Average Vessel Age | 16 years 2 months 12 days | 15 years 3 months 18 days | ||
Number of owned vessels | item | 7 | 8 | ||
International Crude Tankers Segment [Member] | 1 Ultra Large Crude Carriers (ULCC), 8 Very Large Crude Carriers (VLCC), 7 Aframaxes and 7 Panamaxes [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Net Carrying Value | $ 429,045 | |||
Property, plant and equipment, fair value | 341,625 | |||
Pledged collateral market value over carrying value difference | 87,420 | |||
International Product Carriers Segment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 362,797 | $ 394,955 | ||
Accumulated Depreciation | (77,373) | (68,698) | ||
Net Carrying Value | $ 285,424 | $ 326,257 | ||
Average Vessel Age | 9 years 1 month 6 days | 9 years 7 months 6 days | ||
Number of owned vessels | item | 11 | 15 | ||
Property, plant and equipment, fair value | $ 9,000 | |||
International Product Carriers Segment [Member] | Aframaxes (LR2) [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 73,681 | 73,681 | ||
Accumulated Depreciation | (12,009) | (9,305) | ||
Net Carrying Value | $ 61,672 | $ 64,376 | ||
Average Vessel Age | 4 years 4 months 24 days | 3 years 4 months 24 days | ||
Number of owned vessels | item | 1 | 1 | ||
International Product Carriers Segment [Member] | Panamaxes (LR1) [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 106,376 | $ 106,176 | ||
Accumulated Depreciation | (17,772) | (13,122) | ||
Net Carrying Value | $ 88,604 | $ 93,054 | ||
Average Vessel Age | 10 years | 9 years | ||
Number of owned vessels | item | 4 | 4 | ||
International Product Carriers Segment [Member] | MR Vessel [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 182,740 | $ 215,098 | ||
Accumulated Depreciation | (47,592) | (46,271) | ||
Net Carrying Value | $ 135,148 | $ 168,827 | ||
Average Vessel Age | 10 years | 11 years 6 months | ||
Number of owned vessels | item | 6 | 10 | ||
International Product Carriers Segment [Member] | 1-LR2, 4 -LRs and 4-MRs vessels [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Net Carrying Value | $ 269,645 | |||
Property, plant and equipment, fair value | 202,300 | |||
Pledged collateral market value over carrying value difference | $ 67,345 |
VESSELS, DEFERRED DRYDOCK AND_6
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Vessel Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Vessel Cost | ||||
Impairment | $ (16,419) | |||
Net Book Value | ||||
Beginning Balance | $ 1,104,727 | |||
Ending Balance | 1,330,795 | $ 1,104,727 | ||
Vessel/Fleet [Member] | ||||
Vessel Cost | ||||
Beginning Balance | 1,404,360 | 1,478,940 | $ 1,642,891 | |
Purchases and vessel additions | 459,608 | 174,108 | 2,127 | |
Disposals | (176,300) | (23,266) | ||
Impairment | (58,021) | (225,422) | (166,078) | |
Ending Balance | 1,629,647 | 1,404,360 | 1,478,940 | |
Accumulated Depreciation | ||||
Beginning Balance | (302,087) | (381,449) | (404,957) | |
Disposals | 16,097 | 2,232 | ||
Depreciation | (56,711) | (59,883) | (63,328) | |
Impairment | 40,816 | 137,013 | (86,836) | |
Ending Balance | (301,885) | (302,087) | (381,449) | |
Net Book Value | ||||
Beginning Balance | 1,102,273 | 1,097,491 | 1,237,934 | |
Ending Balance | $ 1,327,762 | $ 1,102,273 | $ 1,097,491 |
VESSELS, DEFERRED DRYDOCK AND_7
VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY (Drydocking Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Vessels, Deferred Drydock and Other Property [Abstract] | |||
Beginning Balance | $ 30,528 | $ 30,557 | $ 37,075 |
Additions | 5,616 | 19,205 | 8,822 |
Sub-total | 36,144 | 49,762 | 45,897 |
Drydock amortization | (15,084) | (18,367) | (15,340) |
Amount charged to loss/gain on sale of vessels | (4,287) | (867) | |
Ending Balance | $ 16,773 | $ 30,528 | $ 30,557 |
EQUITY METHOD INVESTMENTS (Narr
EQUITY METHOD INVESTMENTS (Narrative) (Details) $ in Thousands | Apr. 26, 2018USD ($) | Mar. 29, 2018USD ($) | Nov. 30, 2004m³ | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Number of joint ventures | item | 3 | |||||
Accumulated other comprehensive gain (loss) | $ 29,929 | $ 40,407 | ||||
Income (loss) from equity method investments | 29,432 | 48,966 | $ 16,849 | |||
Other than temporary impairment - Equity method investment, Impairment Charges | 30,475 | 30,475 | ||||
Investments in and advances to affiliated companies | 268,322 | $ 378,894 | ||||
Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Accumulated other comprehensive gain (loss) | 504 | |||||
FSO Asia and FSO Africa [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other than temporary impairment - Equity method investment, Impairment Charges | $ 30,475 | |||||
Liquid Natural Gas Carrier Vessel [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, amount outstanding | 553,005 | |||||
FSO Term Loan [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | 93,033 | |||||
FSO Revolver [Member] | Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, notional amount | $ 186,066 | |||||
Minimum [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 49.90% | 49.90% | 49.90% | |||
Maximum [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
LNG Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | |||||
LNG Joint Venture | Liquid Natural Gas Carrier Vessel [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 49.90% | |||||
Line of credit facility, amount outstanding | $ 597,129 | |||||
Storage volume, per carrier | m³ | 216,200 | |||||
Initial term of contract | 25 years | |||||
Investments in and advances to affiliated companies | $ 112,212 | |||||
LNG Joint Venture | Liquid Natural Gas Carrier Vessel [Member] | Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, fixed interest rate | 4.90% | 4.90% | ||||
Derivative, notional amount | $ 532,746 | $ 576,429 | ||||
Interest rate cash flow hedge liability at fair value | 37,687 | 58,243 | ||||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | 28,980 | |||||
FSO Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Long term debt carrying amount | $ 0 | |||||
FSO Joint Venture [Member] | Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, fair value, asset (liability) | 1,008 | |||||
FSO Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | 136,988 | |||||
Euronav Nv Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other than temporary impairment - Equity method investment, Impairment Charges | $ 30,475 | |||||
Fair Value Inputs, Discount Rate | 9.50% | |||||
Euronav Nv Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | |||||
Euronav Nv Joint Venture [Member] | Liquid Natural Gas Carrier Vessel [Member] | Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | 18,713 | |||||
Other Equity Method Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to affiliated companies | $ 19,122 | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | Revolver Facility [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | FSO Loan Agreement [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 220,000 | |||||
Debt instrument covenant debt service cover ratio | 1.10 | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | Interest Rate Swap [Member] | Medium-term Notes [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, fixed interest rate | 4.858% | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | FSO Term Loan [Member] | Medium-term Notes [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 110,000 | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | FSO Revolver [Member] | Revolving Credit Agreement [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 110,000 | |||||
Proceeds from long-term lines of credit | $ 110,000 | |||||
Debt instrument, description of variable rate basis | based on three month, six month or twelve month LIBOR | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.70% | |||||
Line of credit facility, commitment fee percentage paid to affiliate | 0.30% | |||||
Secured Debt [Member] | FSO Joint Venture [Member] | Financial Guarantee [Member] | FSO Term Loan [Member] | Medium-term Notes [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from long-term lines of credit | $ 110,000 |
EQUITY METHOD INVESTMENTS (Equi
EQUITY METHOD INVESTMENTS (Equity Method Investments Income Schedule) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2004 | |
Shipping revenues | $ 209,571 | $ 234,916 | $ 247,451 | |
Ship operating expenses | (112,541) | (106,228) | (114,487) | |
Income from vessel operations | 97,030 | 128,688 | 132,964 | |
Other income | 1,494 | 3,497 | 830 | |
Interest expense | (40,676) | (36,831) | (43,038) | |
Income tax provision | (3,433) | (1,886) | ||
Net income | 54,415 | 93,468 | 90,756 | |
Equity in net income of affiliated companies, before consolidating and reconciling adjustments | 27,187 | 46,704 | 45,355 | |
Impairment of equity method investments | (30,475) | (30,475) | ||
Other income/(expense) | 269 | 380 | (21) | |
Equity in income/(loss) of affiliated companies | $ 29,432 | $ 48,966 | $ 16,849 | |
Minimum [Member] | ||||
Equity method investment, ownership percentage | 49.90% | 49.90% | 49.90% | |
Maximum [Member] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |
FSO Asia and FSO Africa [Member] | ||||
Impairment of equity method investments | $ (30,475) | |||
FSO Africa [Member] | ||||
Amortization on deferred gain on 2009 sale of TI Africa to FSO Joint Venture | $ 2,395 | $ 2,301 | 2,409 | |
Euronav Nv Joint Venture [Member] | ||||
Impairment of equity method investments | (30,475) | |||
Euronav Nv Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||
Equity method investment, ownership percentage | 50.00% | |||
LNG Joint Venture | ||||
Equity method investment, ownership percentage | 50.00% | |||
Amortization of interest capitalized during vessel construction | $ (419) | $ (419) | $ (419) | |
LNG Joint Venture | Liquid Natural Gas Carrier Vessel [Member] | ||||
Equity method investment, ownership percentage | 49.90% |
EQUITY METHOD INVESTMENTS (Eq_2
EQUITY METHOD INVESTMENTS (Equity Method Investments Balance Sheet Schedule) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2004 | |
Equity Method Investment, Summarized Financial Information, Current Assets | $ 55,768 | $ 77,545 | ||
Vessels less accumulated depreciation | 1,280,853 | 1,344,613 | ||
Other assets | 60,498 | 65,551 | ||
Total assets | 1,397,119 | 1,487,709 | ||
Current liabilities | 118,323 | 78,273 | ||
Long-term debt and other non-current liabilities | 733,575 | 917,564 | ||
Equity | 545,221 | 491,872 | ||
Total liabilities and equity | 1,397,119 | 1,487,709 | ||
INSW Share of affiliate's equity, before consolidating and reconciling adjustments | 272,405 | 245,751 | ||
Impairment of equity method investments | (30,475) | (30,475) | ||
Advances from shareholders | 28,666 | 162,762 | ||
Unamortized deferred gain on 2009 sale of TI Africa to FSO Africa, net | (31,889) | (34,284) | ||
Unamortized interest capitalized during vessel construction | 9,856 | 10,275 | ||
INSW guarantee for FSO Term Loan | 673 | |||
Other | 19,086 | 24,865 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 268,322 | $ 378,894 | ||
FSO Asia and FSO Africa [Member] | ||||
Impairment of equity method investments | $ (30,475) | |||
Euronav Nv Joint Venture [Member] | ||||
Impairment of equity method investments | $ (30,475) | |||
Euronav Nv Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||
Equity method investment, ownership percentage | 50.00% | |||
LNG Joint Venture | ||||
Equity method investment, ownership percentage | 50.00% | |||
LNG Joint Venture | Liquid Natural Gas Carrier Vessel [Member] | ||||
Equity method investment, ownership percentage | 49.90% | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 112,212 | |||
Other Equity Method Investments [Member] | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 19,122 |
VARIABLE INTEREST ENTITIES ("_3
VARIABLE INTEREST ENTITIES ("VIEs") (Narrative) (Details) $ in Thousands | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Number of joint ventures | item | 3 | |
Accounts receivable, net, current | $ 94,623 | $ 58,187 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts receivable, net, current | $ 14,229 |
VARIABLE INTEREST ENTITIES ("_4
VARIABLE INTEREST ENTITIES ("VIEs") (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | |||
Investments in Affiliated Companies | $ 268,322 | $ 378,894 | $ 358,681 |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in Affiliated Companies | $ 139,359 | $ 255,456 |
VARIABLE INTEREST ENTITIES ("_5
VARIABLE INTEREST ENTITIES ("VIEs") (Schedule of Variable Interest Entities Liability in Condensed Consolidated Balance Sheet to Maximum Exposure to Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Other Liabilities | $ 2,442 | $ 2,721 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Other Liabilities | 673 | |
Maximum Exposure to Loss | $ 232,908 |
DEBT (2017 Debt Facilities) (Na
DEBT (2017 Debt Facilities) (Narrative) (Details) - USD ($) | Jun. 22, 2018 | Nov. 30, 2017 | Jul. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 13, 2018 | Jun. 22, 2017 |
Debt Instrument [Line Items] | |||||||||
Payments on debt | $ (71,610,000) | $ (54,983,000) | $ (90,065,000) | ||||||
FSO Joint Venture [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument amount of dividend allowed | $ 110,000,000 | ||||||||
Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | ||||||||
Debt instrument, face amount | $ 628,375,000 | ||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||
Facilities | Federal Funds Effective Swap Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||
Facilities | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||
2017 Debt Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from lines of credit | $ 30,000,000 | $ 50,000,000 | |||||||
Debt instrument covenant on collateral fair market value | $ 300,000,000 | ||||||||
Debt instrument covenant percentage benchmark against certain fair market values | 65.00% | ||||||||
Debt instrument convenant percentage against certain fair market values | 39.00% | ||||||||
Debt instrument premium percentage of prepaid amount | 1.00% | ||||||||
Debt instrument percentage fee to debt facilities holders | 1.00% | ||||||||
2017 Debt Facilities | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 6.00% | 5.50% | |||||||
2017 Debt Facilities | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 5.00% | 4.50% | |||||||
2017 Debt Facilities | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||||
Term Loan [Member] | 2017 Debt Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||||||||
Line of credit accordian amount | $ 50,000,000 | ||||||||
Debt instrument, covenant related to base Available Amount | $ 12,500,000 | ||||||||
Repayments of unsecured debt | $ 60,000,000 | ||||||||
Debt instrument, Accordion Feature | $ 50,000,000 | ||||||||
Debt instrument, additional mandatory prepayments, percentage | 75.00% | ||||||||
Term Loan [Member] | 2017 Debt Facilities | Scenario, Plan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, additional mandatory prepayments, percentage | 1.25% |
DEBT (Sinosure Credit Facility)
DEBT (Sinosure Credit Facility) (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 14, 2018USD ($) | |
Payments to acquire equipment | $ 148,946 | $ 173,535 | $ 1,988 | |||
6 Very Large Crude Carriers [Member] | ||||||
Unrecorded Unconditional Purchase Obligation | $ 434,000 | |||||
Sinosure Credit Facility [Member] | ||||||
Long-term debt | $ 310,968 | |||||
Debt instrument, basis spread on variable rate | 2.00% | |||||
Debt instrument, maturity date, description | Each of the loans under the Sinosure Credit Facility will mature 144 months after its initial utilization date. | |||||
Debt instrument covenant minimum security coverage percentage of aggregate loan principal | 135.00% | |||||
Debt instrument maximum consolidated leverage ratio | 0.60% | |||||
Debt instrument minimum consolidated liquidity unrestricted consolidated cash and cash equivalents | $ 25,000 | |||||
Debt instrument minimum consolidated liquidity total consolidated cash and cash equivalents | $ 50,000 | |||||
Debt instrument covenant percentage of total indebtedness | 5.00% | |||||
Debt instrument property aggregate covenant | $ 9,000 | |||||
Debt instrument per piece of property covenant | $ 1,500 | |||||
Debt instrument, covenant compliance | As of December 31, 2018, the Company was in compliance with all such covenants that were in effect on such date. | |||||
Debt instrument quarterly amortization payment percentage | 1.66% | |||||
Sinosure Credit Facility [Member] | Scenario, Plan [Member] | ||||||
Debt instrument interest expense coverage ratio | 2.50 | 2.25 | ||||
Sinosure Credit Facility [Member] | Seaways Holding Company [Member] | ||||||
Debt instrument interest expense coverage ratio | 2 |
DEBT (ABN Term Loan Facility) (
DEBT (ABN Term Loan Facility) (Narrative) (Details) - USD ($) | Jun. 13, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 07, 2018 |
Proceeds from Issuance of Long-term Debt | $ 70,120,000 | $ 614,933,000 | ||
Term Loan [Member] | ABN Term Loan Facility [Member] | ||||
Debt instrument covenant percentage of fair market price of secured property | 55.00% | |||
Proceeds from Issuance of Long-term Debt | $ 28,463,000 | |||
Debt instrument, frequency of periodic payment | 19 quarterly installments | |||
Debt instrument, periodic payment | $ 869,000 | |||
Debt instrument covenant percentage of fair market value of secured property minimum to outstanding principal | 150.00% | |||
Debt instrument threshold for loan agreement to be amended | $ 50,000,000 | |||
Term Loan [Member] | ABN Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt instrument, basis spread on variable rate | 3.25% | |||
Term Loan [Member] | ABN Term Loan Facility [Member] | Seaways Shipping Corporation [Member] | ||||
Debt instrument covenant debt service reserve account minimum | $ 2,500,000 | |||
Debt instrument covenant dry dock reserve account maximum | 2,100,000 | |||
Debt instrument per piece of property covenant | $ 825,000 | |||
Maximum [Member] | Term Loan [Member] | ABN Term Loan Facility [Member] | ||||
Debt instrument, face amount | $ 29,150,000 |
DEBT (Senior and Subordinated N
DEBT (Senior and Subordinated Notes) (Narrative) (Details) - USD ($) | Sep. 17, 2018 | Jun. 13, 2018 | May 31, 2018 | Dec. 31, 2018 |
Senior Notes | 8.5% Senior Notes | ||||
Debt instrument, face amount | $ 25,000,000 | |||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | ||
Debt instrument, maturity date, description | notes due 2023 | |||
Proceeds from issuance of senior long-term debt | $ 23,458,000 | |||
Debt instrument, redemption price, percentage | 100.00% | |||
Debt instrument covenant limitation on total borrowings percentage of total assets | 70.00% | |||
Debt instrument covenant net worth | $ 600,000,000 | |||
Debt instrument, covenant compliance | The Company was in compliance with financial covenants under the 8.5% Senior Notes as of December 31, 2018. | |||
Debt instrument, maturity date | Jun. 30, 2023 | |||
Subordinated Debt | 10.75% Subordinated Notes | ||||
Debt instrument, face amount | $ 30,000,000 | |||
Debt instrument, interest rate, stated percentage | 10.75% | |||
Debt instrument, maturity date, description | notes due 2023 | |||
Proceeds from issuance of subordinated long-term debt | $ 28,000,000 | |||
Debt instrument, maturity date | Jun. 15, 2023 | |||
Repayments of Subordinated Debt | $ 2,069,000 | |||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||
Debt Instrument Percentage Fee to Debt Facilities Holders | 0.50% | |||
Scenario, Plan [Member] | Senior Notes | 8.5% Senior Notes | ||||
Debt instrument, redemption price, percentage | 101.00% | |||
Scenario, Plan [Member] | Subordinated Debt | 10.75% Subordinated Notes | ||||
Debt instrument, interest rate, effective percentage | 13.00% |
DEBT (Debt Modification, Repurc
DEBT (Debt Modification, Repurchases and Extinguishment) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017 | Jul. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 22, 2017 | |
Debt Instrument [Line Items] | ||||||
Payments on debt | $ (71,610,000) | $ (54,983,000) | $ (90,065,000) | |||
Proceeds from Issuance of Long-term Debt | 70,120,000 | 614,933,000 | ||||
Write off of deferred debt issuance cost | 2,400,000 | 7,020,000 | 5,097,000 | |||
Gain (loss) on repurchase of debt instrument | (1,295,000) | 3,755,000 | ||||
Third-party debt modification costs | 1,306,000 | 9,240,000 | ||||
Repayments of secured debt | 62,069,000 | 458,416,000 | 65,167,000 | |||
ABN Term Loan Facility and Sinosure Credit Facility and 8.50% Senior Notes and 10.75% Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Related Commitment Fees and Debt Issuance Costs | 7,677,000 | |||||
Deferred finance costs, gross | 7,568,000 | |||||
Payments of debt issuance costs | 109,000 | |||||
ABN Term Loan Facility and Sinosure Credit Facility and 8.50% Senior Notes and 10.75% and 2017 Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Related Commitment Fees and Debt Issuance Costs | 14,648,000 | |||||
2017 Debt Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | 15,067,000 | |||||
Payments of debt issuance costs | 24,307,000 | |||||
Gains (losses) on restructuring of debt | 2,400,000 | |||||
Proceeds from lines of credit | $ 30,000,000 | $ 50,000,000 | ||||
Write off of deferred debt issuance cost | 9,240,000 | |||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | 7,020,000 | |||||
2017 Second Amendment Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | 4,479,000 | |||||
Payments of debt issuance costs | 6,971,000 | |||||
2017 Second Amendment Debt Facilities Deemed Extinguishment Of Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | 1,295,000 | |||||
2017 Second Amendment Debt Facilities Remaining [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | 2,492,000 | |||||
2017 Second Amendment Debt Facilities Third Party Fees [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | $ 1,197,000 | |||||
Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 628,375,000 | |||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | |||||
Write off of deferred debt issuance cost | 5,097,000 | |||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | 3,755,000 | |||||
Gain (Loss) on Extinguishment of Debt | (1,342,000) | |||||
Payments of financing costs | $ 8,273,000 | |||||
Debt Issuance Costs, Legal and Consulting Fees | 225,000 | |||||
INSW Facilities, due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of secured debt | 83,832,000 | |||||
Debt instrument, repurchased face amount | $ 68,922,000 | |||||
Revolving Credit Facility [Member] | 2017 Debt Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Term Loan [Member] | 2017 Debt Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Debt instrument, additional mandatory prepayments, percentage | 75.00% | |||||
Debt instrument, covenant related to base Available Amount | $ 12,500,000 |
DEBT (Schedule of Long-term Deb
DEBT (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Jun. 14, 2018 | Jun. 13, 2018 | May 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Less current portion | $ (51,555) | $ (24,063) | |||
Long-term portion | 759,112 | 528,874 | |||
2017 Debt Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 810,667 | 552,937 | |||
Less current portion | (51,555) | (24,063) | |||
Long-term portion | 759,112 | 528,874 | |||
Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 837,315 | ||||
Sinosure Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 310,968 | ||||
Parent Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 52,931 | ||||
Long-term portion | 49,824 | ||||
Parent Company [Member] | 2017 Debt Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 49,824 | ||||
Long-term portion | 49,824 | ||||
Parent Company [Member] | 8.5% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount and deferred finance costs | 1,402 | ||||
Parent Company [Member] | 10.75% Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount and deferred finance costs | 1,705 | ||||
Term Loan [Member] | 2017 Debt Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 444,344 | 523,489 | |||
Unamortized discount and deferred finance costs | 20,032 | 23,074 | |||
Term Loan [Member] | ABN Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 25,879 | ||||
Unamortized discount and deferred finance costs | 845 | ||||
Term Loan [Member] | 8.5% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount and deferred finance costs | 1,402 | ||||
Revolver Facility [Member] | 2017 Debt Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 29,448 | ||||
Unamortized discount and deferred finance costs | $ 552 | ||||
Senior Notes | 8.5% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 23,598 | ||||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | |||
Debt instrument, maturity date | Jun. 30, 2023 | ||||
Senior Notes | Parent Company [Member] | 8.5% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 23,598 | ||||
Debt instrument, interest rate, stated percentage | 8.50% | ||||
Subordinated Debt | 10.75% Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 26,226 | ||||
Unamortized discount and deferred finance costs | $ 1,705 | ||||
Debt instrument, interest rate, stated percentage | 10.75% | ||||
Debt instrument, maturity date | Jun. 15, 2023 | ||||
Subordinated Debt | Parent Company [Member] | 10.75% Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 26,226 | ||||
Debt instrument, interest rate, stated percentage | 10.75% | ||||
Revolving Credit Facility [Member] | Sinosure Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 290,620 | ||||
Unamortized discount and deferred finance costs | $ 2,664 |
DEBT (Schedule of Applicable Ma
DEBT (Schedule of Applicable Margins and Floor Interest Rates Exit Financing Facility) (Details) - Debt Facilities 2017 [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Term Loan [Member] | Base Rate [Member] | Floor [Member] | |
Debt instrument, basis spread on variable rate | 2.00% |
Term Loan [Member] | Base Rate [Member] | Applicable Margin [Member] | |
Debt instrument, basis spread on variable rate | 5.00% |
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Floor [Member] | |
Debt instrument, basis spread on variable rate | 1.00% |
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Applicable Margin [Member] | |
Debt instrument, basis spread on variable rate | 6.00% |
Revolver Facility [Member] | Base Rate [Member] | Floor [Member] | |
Debt instrument, basis spread on variable rate | 2.00% |
Revolver Facility [Member] | Base Rate [Member] | Applicable Margin [Member] | |
Debt instrument, basis spread on variable rate | 2.50% |
Revolver Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Floor [Member] | |
Debt instrument, basis spread on variable rate | 1.00% |
Revolver Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Applicable Margin [Member] | |
Debt instrument, basis spread on variable rate | 3.50% |
DEBT (Contractual Obligation, F
DEBT (Contractual Obligation, Fiscal Year Maturity Schedule Table 2) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Facilities | |||
Contractual interest (including default interest) | $ 58,878 | $ 39,784 | $ 38,442 |
INSW Facilities, due 2019 [Member] | |||
Contractual interest (including default interest) | 16,743 | $ 38,442 | |
Revolving Credit Facility [Member] | Sinosure Credit Facility [Member] | |||
Contractual interest (including default interest) | 8,350 | ||
Term Loan [Member] | Debt Facilities 2017 [Member] | |||
Contractual interest (including default interest) | 45,601 | 22,546 | |
Term Loan [Member] | ABN Term Loan Facility [Member] | |||
Contractual interest (including default interest) | 1,024 | ||
Revolver Facility [Member] | Debt Facilities 2017 [Member] | |||
Contractual interest (including default interest) | 475 | $ 495 | |
Senior Notes | 8.5% Senior Notes | |||
Contractual interest (including default interest) | 1,396 | ||
Subordinated Debt | 10.75% Subordinated Notes | |||
Contractual interest (including default interest) | $ 2,032 |
DEBT (Schedule of Interest Paid
DEBT (Schedule of Interest Paid Excluding Deferred Financing Fees and Capitalized Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Facilities | |||
Interest paid, net | $ 54,128 | $ 33,367 | $ 33,039 |
INSW Facilities, due 2019 [Member] | |||
Interest paid, net | 16,732 | $ 33,039 | |
Term Loan [Member] | 2017 Debt Facilities | |||
Interest paid, net | 42,825 | 16,319 | |
Term Loan [Member] | ABN Term Loan Facility [Member] | |||
Interest paid, net | 795 | ||
Revolver Facility [Member] | 2017 Debt Facilities | |||
Interest paid, net | 442 | $ 316 | |
Senior Notes | 8.5% Senior Notes | |||
Interest paid, net | 1,250 | ||
Subordinated Debt | 10.75% Subordinated Notes | |||
Interest paid, net | 1,591 | ||
Revolving Credit Facility [Member] | Sinosure Credit Facility [Member] | |||
Interest paid, net | $ 7,225 |
DEBT (Contractual Obligation,_2
DEBT (Contractual Obligation, Fiscal Year Maturity Schedule Table 1) (Details) - Facilities $ in Thousands | Dec. 31, 2018USD ($) |
Shedule Of Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2019 | $ 51,555 |
2020 | 51,555 |
2021 | 51,555 |
2022 | 417,930 |
2023 | 89,330 |
Thereafter | 175,390 |
Long-term Debt | $ 837,315 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Narrative) (Details) - Interest Rate Cap [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Of Financial Instruments Derivatives And Fair Value Disclousres [Line Items] | |
Derivative, notional amount | $ 350,000 |
Derivative, cap interest rate | 2.605% |
Derivative, maturity date | Dec. 31, 2020 |
Sinosure Credit Facility [Member] | |
Fair Value Of Financial Instruments Derivatives And Fair Value Disclousres [Line Items] | |
Derivative, notional amount | $ 293,284 |
Derivative, cap interest rate | 2.99% |
Derivative, maturity date | Mar. 21, 2022 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES Other Than Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Jun. 13, 2018 | May 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Restricted cash | $ 59,331 | $ 10,579 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 117,644 | 70,606 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 117,644 | 70,606 | ||
Sinosure Credit Facility [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (293,284) | |||
Sinosure Credit Facility [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (293,284) | |||
Term Loan [Member] | Facilities | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (459,731) | (550,689) | ||
Term Loan [Member] | Facilities | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (459,731) | (550,689) | ||
Term Loan [Member] | ABN Term Loan Facility [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (26,724) | |||
Term Loan [Member] | ABN Term Loan Facility [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | $ (26,724) | |||
Revolver Facility [Member] | Facilities | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | (30,227) | |||
Revolver Facility [Member] | Facilities | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans Payable, Fair Value Disclosure | $ (30,227) | |||
Senior Notes | 8.5% Senior Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | ||
Debt instrument, maturity date | Jun. 30, 2023 | |||
Senior Notes | 8.5% Senior Notes | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $ (22,960) | |||
Senior Notes | 8.5% Senior Notes | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $ (22,960) | |||
Subordinated Debt | 10.75% Subordinated Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 10.75% | |||
Debt instrument, maturity date | Jun. 15, 2023 | |||
Subordinated Debt | 10.75% Subordinated Notes | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $ (29,094) | |||
Subordinated Debt | 10.75% Subordinated Notes | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $ (29,094) |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Asset | $ 1,164 | $ 902 |
Derivative Liability | (2,629) | |
Interest Rate Cap [Member] | Other Noncurrent Assets [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 704 | 886 |
Interest Rate Cap [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | ||
Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 460 | 16 |
Interest Rate Cap [Member] | Other Liabilities [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | ||
Interest Rate Swap [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | (707) | |
Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ (1,922) |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Effect of Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized losses on derivative instruments | $ (1,687) | $ (1,140) | $ (3,052) |
Interest Rate Cap [Member] | |||
Unrealized losses on derivative instruments | 261 | (8) | (2) |
Interest Rate Swap [Member] | |||
Unrealized losses on derivative instruments | $ (1,948) | $ (1,132) | $ (3,050) |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Effect of Cash Flow Hedging Relationships on Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ineffective Portion | |||
Interest Expense [Member] | |||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ (492) | ||
Ineffective Portion | |||
Interest Rate Cap [Member] | Interest Expense [Member] | |||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | (21) | (131) | $ (517) |
Ineffective Portion | |||
Interest Rate Swap [Member] | Interest Expense [Member] | |||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | (471) | ||
Ineffective Portion |
FAIR VALUE OF FINANCIAL INSTR_8
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Values of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Asset | $ 1,164 | $ 902 |
Derivative Liability | (2,629) | |
Interest Rate Cap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative Asset | 1,164 | 902 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative Asset | 1,164 | $ 902 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative Liability | (2,629) | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative Liability | $ (2,629) |
FAIR VALUE OF FINANCIAL INSTR_9
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Value of Items Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets to be disposed of | $ 16,419 | |||
Impairment of equity method investments | $ (30,475) | $ (30,475) | ||
International Crude Tankers Segment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property, plant and equipment, fair value | 7,025 | |||
Assets held for sale, fair value disclosure | 17,665 | |||
Vessels held for use, Impairment Charges | (948) | |||
Impairment of long-lived assets to be disposed of | (16,419) | |||
International Crude Tankers Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property, plant and equipment, fair value | 7,025 | |||
Assets held for sale, fair value disclosure | 17,665 | |||
International Product Carriers Segment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property, plant and equipment, fair value | 9,000 | |||
Vessels held for use, Impairment Charges | (1,670) | |||
International Product Carriers Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property, plant and equipment, fair value | 9,000 | |||
Vessel/Fleet [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets to be disposed of | $ 58,021 | $ 225,422 | $ 166,078 | |
Very Large Crude Carrier [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets to be disposed of | 14,226 | |||
Very Large Crude Carrier Cost To Sell [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets to be disposed of | 361 | |||
Very Large Crude Carrier Operational Costs [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets to be disposed of | $ 1,832 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Accounts payable | $ 1,164 | $ 330 |
Payroll and benefits | 4,510 | 5,897 |
Interest | 770 | 3,437 |
Due to owners on chartered in vessels | 870 | 867 |
Accrued drydock and repair costs | 1,974 | 981 |
Bunkers and lubricants | 1,833 | 1,893 |
Charter revenues received in advance | 450 | 1,775 |
Insurance | 573 | 575 |
Accrued vessel expenses | 6,816 | 3,369 |
Accrued general and administrative expenses | 1,364 | 1,599 |
Other | 2,650 | 2,082 |
Total accounts payable, accrued expense and other current liabilities | $ 22,974 | $ 22,805 |
TAXES (Narrative) (Details)
TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes [Abstract] | ||
Percent of shipping income subject to U.S. federal taxation | 4.00% | |
Operating loss carryforwards | $ 8,441 | $ 6,931 |
Indefinite-lived net operating loss carryforwards | 8,441 | |
Operating loss carryforwards, valuation allowance | 3,990 | 4,578 |
Increase (decrease) in valuation allowance | (588) | |
Unrecognized tax benefits, interest on income taxes accrued | $ 4 | $ 51 |
TAXES (Components of Income Tax
TAXES (Components of Income Tax (Provisions) and Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes [Abstract] | ||||||||||
Current | $ 105 | $ (44) | $ (440) | |||||||
Income Tax Expense (Benefit) | $ 116 | $ (3) | $ (8) | $ (13) | $ (23) | $ (4) | $ (4) | $ 105 | $ (44) | $ (440) |
TAXES (Reconcilation of Effecti
TAXES (Reconcilation of Effective to Statutory Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments due to: | |||
Liquidation of subsidiaries | 0.88% | 29.53% | |
MARSHALL ISLANDS [Member] | |||
Adjustments due to: | |||
Change in valuation allowance | (0.66%) | (0.78%) | (25.29%) |
Income subject to tax in other jurisdictions | 0.54% | (0.06%) | (1.76%) |
Effective tax rate | (0.12%) | 0.04% | 2.48% |
TAXES (Components of Deferred T
TAXES (Components of Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,435 | $ 1,178 |
Excess of tax over book basis of depreciable assets | 548 | 548 |
Pensions | 2,007 | 2,852 |
Total deferred tax assets | 3,990 | 4,578 |
Less: Valuation allowance | (3,990) | (4,578) |
Net deferred tax assets | ||
Net noncurrent deferred tax assets |
TAXES (Reconcilation of Amounts
TAXES (Reconcilation of Amounts of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes [Abstract] | ||
Balance of unrecognized tax benefits as of January 1, | $ 153 | $ 153 |
Increases for positions taken in prior years | 1 | |
Decreases for positions taken in prior years | (70) | |
Settlement | (77) | |
Balance of unrecognized tax benefits as of December 31, | $ 7 | $ 153 |
RELATED PARTIES (Narrative) (De
RELATED PARTIES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 29, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2015 |
Reorganization Items, net | $ 131 | ||||||
Non-cash expense relating to stock compensation benefits | $ 3,162 | $ 3,808 | 2,841 | ||||
Net Carrying Value | 1,330,795 | 1,104,727 | |||||
Impairment of long-lived assets held-for-use | 19,037 | 88,408 | 79,242 | ||||
Separation and transition costs | 604 | 9,043 | |||||
Severance costs related to separation and transition costs | 3,337 | ||||||
Cash dividends paid to parent company by unconsolidated subsidiaries | $ 202,000 | ||||||
Dividends paid, per share | $ 6.93 | ||||||
Income Recognized | 64 | ||||||
Equity Method Investee [Member] | |||||||
Guarantor obligations, maximum exposure, undiscounted | 93,548 | ||||||
Guarantor obligations, current carrying value | 673 | ||||||
Transition Services And Separation And Distribution And Employee Matters Agreements [Member] | |||||||
Accounts payable, related parties, current | 34 | 367 | |||||
Transition Services Agreement [Member] | |||||||
Accounts receivable, related parties, current | 63 | $ 27 | |||||
Accounts payable, related parties, current | 731 | 31 | |||||
Vessel/Fleet [Member] | |||||||
Net Carrying Value | 1,327,762 | 1,102,273 | 1,097,491 | $ 1,237,934 | |||
OSG Inc. [Member] | |||||||
Capital contribution from former parent | 3,797 | ||||||
Reorganization Items, net | $ 131 | 131 | |||||
Non-cash expense relating to stock compensation benefits | 2,520 | ||||||
Allocated general and administrative expenses recorded as capital contributions | $ 1,146 | ||||||
Qatar Gas Transport Company Limited Nakilat Joint Venture [Member] | Corporate Joint Venture [Member] | |||||||
Guarantor obligation fee | 100 | ||||||
Facilities | |||||||
Repayments of debt | $ 458,416 | ||||||
FSO Term Loan [Member] | |||||||
Guarantor obligations, maximum exposure, undiscounted | 93,033 | ||||||
LNG Joint Venture | |||||||
Annual fee to related party | $ 135 | ||||||
LNG Joint Venture | Scenario, Forecast [Member] | |||||||
Annual fee to related party | $ 145 | ||||||
FSO Joint Venture [Member] | FSO Term Loan [Member] | Medium-term Notes [Member] | Secured Debt [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 |
RELATED PARTIES (Schedule of Re
RELATED PARTIES (Schedule of Related Party Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reorganization Items, net | $ 131 | |
OSG Inc. [Member] | ||
General and administrative | $ 21,486 | |
Depreciation | 517 | |
Severance and relocation costs | 6,569 | |
Reorganization Items, net | 131 | $ 131 |
Total corporate overhead allocations from the Former Parent | $ 28,703 |
CAPITAL STOCK AND STOCK COMPE_3
CAPITAL STOCK AND STOCK COMPENSATION (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019$ / sharesshares | Apr. 30, 2018$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reorganization Items, net | $ | $ 131,000 | ||||
Restricted stock or unit expense | $ | $ 2,272,000 | $ 2,982,000 | 2,157,000 | ||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 8 years 9 months 4 days | ||||
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 7 years 3 months 15 days | ||||
Stock options, compensation expense (income) | $ | $ 890,000 | $ 826,000 | $ 684,000 | ||
Share based compensation expense, unrecognized | $ | $ 3,854,000 | ||||
Share based compensation expense, unrecognized, period | 1 year 7 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | shares | 28,002 | 13,961 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 17.81 | $ 18.66 | |||
Stock Repurchased and Retired During Period, Shares | shares | 160,000 | ||||
Stock Repurchased and Retired During Period, Value | $ | $ 3,177,000 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 19.86 | ||||
Stock Repurchase Program, Authorized Amount | $ | $ 30,000,000 | ||||
Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | shares | 8,746 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 17.13 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Payout Percentage | 130.00% | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Payout Percentage | 150.00% | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 55,534 | 33,709 | |||
Granted, per share | $ 19.73 | $ 15 | |||
Share-based compensation arrangement by share-based payment award, plan modification, incremental compensation cost | $ | $ 124,000 | ||||
Performance Shares [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | February 14, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 11,882 | ||||
Granted, per share | $ 17.46 | ||||
Share based award payout percentage of target achieved | 72.00% | ||||
Performance Shares [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, per share | $ 18.87 | ||||
Convertible into Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 29,206 | ||||
Granted, per share | $ 24.35 | ||||
Convertible into Restricted Stock Units [Member] | 2015 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 11,383 | ||||
Granted, per share | $ 19.13 | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, options | shares | 124,955 | 148,271 | |||
Employee Stock Option [Member] | Certain Employees and Senior Officers [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date, value, per share | $ 17.46 | ||||
Granted, options | shares | 124,955 | 148,271 | 127,559 | ||
Grants, options, per share | $ 7.76 | $ 8.48 | |||
Lower range, price | 18.21 | $ 19.04 | |||
Upper range, price | $ 22.42 | 30.93 | |||
Employee Stock Option [Member] | Certain Employees and Senior Officers [Member] | 2016 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants, options, per share | 4.55 | ||||
Employee Stock Option [Member] | Certain Employees and Senior Officers [Member] | 2015 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants, options, per share | 2.26 | ||||
Employee Stock Option [Member] | Certain Employees and Senior Officers [Member] | 2014 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants, options, per share | $ 1.86 | ||||
Spin Off Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 2.67% | ||||
Spin Off Options Outstanding [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, shares authorized under stock option plans, exercise price range, outstanding options, weighted average exercise price | $ 19.96 | ||||
Spin Off Options Exercisable [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, shares authorized under stock option plans, exercise price range, outstanding options, weighted average exercise price | $ 22.10 | ||||
Incentive Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive Plan stock option compensation costs to be recognized over remaining vesting period | $ | $ 17,000 | $ 427,000 | |||
Management Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized, share plans | shares | 2,000,000 | ||||
Management Incentive Compensation Plan [Member] | Time Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 55,536 | 66,503 | 76,585 | ||
Granted, per share | $ 17.46 | $ 18.91 | $ 15 | ||
Management Incentive Compensation Plan [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 30,856 | ||||
Management Incentive Compensation Plan [Member] | Convertible into Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 24,953 | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, expected dividend rate | 0.00% | 0.00% | 0.00% | ||
Fair value assumptions, expected volatility factor | $ | 42 | 44 | 0.40 | ||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | 2016 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 2.18% | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | 2015 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 1.79% | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | 2014 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 1.79% | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 1.95% | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value assumptions, risk free interest rate | 2.11% | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options Outstanding [Member] | Exercise Prices Ranging from $17.46 to $30.93 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Lower range, price | $ 17.46 | ||||
Upper range, price | 30.93 | ||||
Management Incentive Compensation Plan [Member] | Spin Off Options Exercisable [Member] | Exercise Prices Ranging from $18.21 to $30.93 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Lower range, price | 18.21 | ||||
Upper range, price | $ 30.93 | ||||
Non-Employee Director Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized, share plans | shares | 400,000 | ||||
Non-Employee Director Incentive Compensation Plan [Member] | Restricted Stock [Member] | Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | shares | 47,501 | 38,938 | 32,067 | ||
Granted, per share | $ 18.82 | $ 20.03 | $ 13.72 | ||
OSG Inc. [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reorganization Items, net | $ | $ 131,000 | $ 131,000 |
CAPITAL STOCK AND STOCK COMPE_4
CAPITAL STOCK AND STOCK COMPENSATION (Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Common Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested Shares Outstanding Beginning Balance | 230,201 | 174,177 | 117,258 | |
INSW RSUs issued to replace OSG RSUs | 110,294 | |||
Granted | 173,573 | 165,503 | 32,067 | |
Vested | (97,554) | (108,584) | (25,103) | |
Forfeited | (19,995) | |||
Nonvested Shares Outstanding Ending Balance | 230,201 | 174,177 | 117,258 | |
Lower range, price | $ 18.62 | $ 18.21 | $ 19.04 | |
Upper range, price | $ 24.05 | $ 19.13 | ||
Shares paid for tax withholding for share based compensation | 6,508 | 18,144 | 21,752 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 55,534 | 33,709 | ||
Performance Shares Achieved [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 3,120 |
CAPITAL STOCK AND STOCK COMPE_5
CAPITAL STOCK AND STOCK COMPENSATION (Stock Option Activity) (Details) - Employee Stock Option [Member] - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding Beginning Balance | 275,830 | 127,559 | ||
Granted | 124,955 | 148,271 | ||
Options issued to replace OSG options | 127,559 | |||
Exercised | ||||
Canelled | (275,830) | (127,559) | (400,785) | |
Options Outstanding Ending Balance | 400,785 | 275,830 | 127,559 | |
Options Exercisable | 181,336 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accumulated Other Comprehensive Loss [Abstract] | |
Unrecognized prior service credits | $ 1,459 |
Unrecognized prior service credits, net of tax | 1,113 |
Unrecognized actuarial losses | 8,633 |
Unrecognized actuarial losses, net of tax | 7,296 |
Prior service credit expected to be recognized, next fiscal year | 0 |
Actuarial losses expected to be recognized, next fiscal year | 168 |
Derivative instruments, gain (loss) reclassification from accumulated oci to income, estimated net amount to be transferred | $ 6,323 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Unrealized losses on derivative instruments | $ (21,520) | $ (28,989) |
Items not yet recognized as a component of net periodic benefit cost (pension plans) | (8,409) | (11,418) |
Accumulated other comprehensive loss | $ (29,929) | $ (40,407) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE LOSS (Changes in Components of AOCI, Net of Related Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance | $ 1,085,654 | $ 1,179,512 | $ 1,383,786 |
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 |
Balance | 1,009,855 | 1,085,654 | 1,179,512 |
Accumulated Other Comprehensive Loss [Member] | |||
Balance | (40,407) | (52,267) | (64,124) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | (580) | (1,123) | (5,374) |
Amounts reclassified from accumulated other comprehensive loss | 11,058 | 12,983 | 17,231 |
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 |
Balance | (29,929) | (40,407) | (52,267) |
Unrealized losses on cash flow hedges [Member] | |||
Balance | (28,989) | (40,317) | (53,446) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | (1,687) | (1,140) | (3,052) |
Amounts reclassified from accumulated other comprehensive loss | 9,156 | 12,468 | 16,181 |
Other Comprehensive Income, net of tax | 7,469 | 11,328 | 13,129 |
Balance | (21,520) | (28,989) | (40,317) |
Items not yet recognized as a component of net periodic benefit cost (pension plans) [Member] | |||
Balance | (11,418) | (11,950) | (10,636) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | 1,107 | 17 | (2,364) |
Amounts reclassified from accumulated other comprehensive loss | 1,902 | 515 | 1,050 |
Other Comprehensive Income, net of tax | 3,009 | 532 | (1,314) |
Balance | $ (8,409) | $ (11,418) | (11,950) |
Foreign currency translation adjustment [Member] | |||
Balance | (42) | ||
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | 42 | ||
Other Comprehensive Income, net of tax | $ 42 |
ACCUMULATED OTHER COMPREHENSI_6
ACCUMULATED OTHER COMPREHENSIVE LOSS (Amounts Reclassified out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items not yet recognized as a component of net periodic benefit cost (pension and other postretirement plans): | |||
Total reclassification from AOCI | $ (11,058) | $ (12,983) | $ (17,231) |
Equity in Income of Affiliated Companies [Member] | Interest Rate Swap [Member] | |||
Unrealized losses on cash flow hedges: | |||
Unrealized gain (loss) on cash flow hedge instruments | (8,664) | (12,337) | (15,664) |
Interest Expense [Member] | Interest Rate Swap [Member] | |||
Unrealized losses on cash flow hedges: | |||
Unrealized gain (loss) on cash flow hedge instruments | (471) | ||
Interest Expense [Member] | Interest Rate Cap [Member] | |||
Unrealized losses on cash flow hedges: | |||
Unrealized gain (loss) on cash flow hedge instruments | (21) | (131) | (517) |
General and Administrative Expense [Member] | |||
Items not yet recognized as a component of net periodic benefit cost (pension and other postretirement plans): | |||
Net periodic benefit costs associated with pension and postretirement benefit plans for shore-based employees | $ (1,902) | $ (515) | $ (1,050) |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues, Total | $ 100,548 | $ 60,926 | $ 56,909 | $ 51,978 | $ 69,426 | $ 59,968 | $ 71,957 | $ 88,750 | $ 270,361 | $ 290,101 | $ 398,319 |
Insured event, gain (loss) | 1,796 | ||||||||||
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 | $ 2,923 |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregated Revenue) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | $ 270,361 |
Asset Lease Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 69,384 |
Asset Lease Component [Member] | Time and Bareboat Charter Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 9,072 |
Asset Lease Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 17,036 |
Technical Management Services Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 107,822 |
Technical Management Services Component [Member] | Time and Bareboat Charter Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 16,889 |
Technical Management Services Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,092 |
Lightering Services Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 45,066 |
International Crude Tankers Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 202,396 |
International Crude Tankers Segment [Member] | Asset Lease Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 52,791 |
International Crude Tankers Segment [Member] | Asset Lease Component [Member] | Time and Bareboat Charter Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 7,199 |
International Crude Tankers Segment [Member] | Asset Lease Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 16,936 |
International Crude Tankers Segment [Member] | Technical Management Services Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 58,423 |
International Crude Tankers Segment [Member] | Technical Management Services Component [Member] | Time and Bareboat Charter Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 16,889 |
International Crude Tankers Segment [Member] | Technical Management Services Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 5,092 |
International Crude Tankers Segment [Member] | Lightering Services Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 45,066 |
International Product Carriers Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 67,965 |
International Product Carriers Segment [Member] | Asset Lease Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 16,593 |
International Product Carriers Segment [Member] | Asset Lease Component [Member] | Time and Bareboat Charter Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 1,873 |
International Product Carriers Segment [Member] | Asset Lease Component [Member] | Voyage Charter [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | 100 |
International Product Carriers Segment [Member] | Technical Management Services Component [Member] | Pooled Services [Member] | |
Disaggregation of Revenue [Line Items] | |
Total shipping revenues | $ 49,399 |
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, 2018 | Dec. 31, 2017 | |
Revenue [Abstract] | ||
Voyage receivables - receivables | $ 6,898 | $ 3,486 |
Contract asset (voyage receivables unbilled receivables) | 87,725 | 54,701 |
Contract liability (deferred revenues) | (450) | $ (1,775) |
Amounts included in contract liability at the beginning of the period | $ 918 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Charter In Vessels One Year or Less Duration [Member] | |
Leases [Line Items] | |
Net minimum lease payments | $ 3,745 |
Operating days, total | 716 days |
Bareboat Charters-In [Member] | |
Leases [Line Items] | |
Net minimum lease payments | $ 29,911 |
Operating days, total | 3478 days |
Time Charters-In [Member] | |
Leases [Line Items] | |
Net minimum lease payments | $ 12,934 |
Operating days, total | 1421 days |
Daily average revenue on vessel extensions | $ 13,250 |
LEASES (Bareboat and Time Chart
LEASES (Bareboat and Time Charters-In) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Bareboat Charters-In [Member] | |
Leases [Line Items] | |
2019 | $ 6,278 |
2020 | 6,295 |
2021 | 6,278 |
2022 | 6,278 |
2023 | 4,782 |
Net minimum lease payments | $ 29,911 |
2019, operating days | 730 days |
2020, operating days | 732 days |
2021, operating days | 730 days |
2022, operating days | 730 days |
2023, operating days | 556 days |
Operating days, total | 3478 days |
Time Charters-In [Member] | |
Leases [Line Items] | |
2019 | $ 12,934 |
Net minimum lease payments | $ 12,934 |
2019, operating days | 1421 days |
Operating days, total | 1421 days |
LEASES (Future Minimum Revenues
LEASES (Future Minimum Revenues on Charters-Out) (Details) - Charters-Out [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2019 | $ 2,587 |
Future minumum revenues | $ 2,587 |
2019, revenue days | 221 days |
Revenue Days | 221 days |
LEASES (Future Minimum Lease Ob
LEASES (Future Minimum Lease Obligations for Office Space) (Details) - Office Space and Lightering Workboat Dock [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Line Items] | |
2019 | $ 1,219 |
2020 | 1,152 |
2021 | 665 |
Net minimum lease payments | $ 3,036 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 100.00% | |||
Scheme Plan [Member] | Foreign Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, contributions by employer | $ 0 | $ 787 | $ 7,605 | |
Scheme Plan [Member] | Scenario, Forecast [Member] | Foreign Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, contributions by employer | $ 637 | |||
Equity Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 60.00% | |||
Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, target plan asset allocations | 40.00% |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligation: | |||
Cost of benefits earned (service cost) | $ 64 | ||
Interest cost on benefit obligation | $ 707 | 797 | $ 886 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | |||
Fair value of plan assets at year end | 22,785 | ||
Foreign Plan [Member] | Scheme Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 31,527 | 29,240 | |
Cost of benefits earned (service cost) | 152 | ||
Interest cost on benefit obligation | 707 | 797 | |
Actuarial (gains)/losses | (2,848) | (519) | |
Benefits paid | (696) | (770) | |
Settlements | (3,706) | ||
Foreign exchange losses/(gains) | (1,322) | 2,779 | |
Benefit obligation at year end | 23,814 | 31,527 | 29,240 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 29,527 | 25,466 | |
Actual return on plan assets | (1,009) | 1,714 | |
Employer contributions | 0 | 787 | 7,605 |
Benefits paid | (696) | (770) | |
Settlements | (3,761) | ||
Plan administration costs | (64) | ||
Foreign exchange losses | (1,276) | 2,394 | |
Fair value of plan assets at year end | 22,785 | 29,527 | $ 25,466 |
Unfunded status at December 31 | $ (1,029) | $ (2,000) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Domestic Plans with Accumulated Benefit Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretirement Benefit Plans [Abstract] | ||
Projected benefit obligation | $ 23,814 | $ 31,527 |
Accumulated benefit obligation | 23,814 | 31,527 |
Fair value of plan assets | $ 22,785 | $ 29,527 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Components of Expense, Domestic Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of expense: | |||
Defined benefit plan, service cost | $ 64 | ||
Defined benefit plan, interest cost | $ 707 | 797 | $ 886 |
Expected return on plan assets | (1,029) | (1,041) | (951) |
Amortization of prior-service costs | 71 | 68 | 67 |
Recognized net actuarial loss | 388 | 447 | 343 |
Recognized settlement loss | 1,442 | 640 | |
Net periodic (benefit)/cost | $ 1,579 | $ 335 | $ 985 |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretirement Benefit Plans [Abstract] | ||
Discount rate | 2.80% | 2.40% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Assumptions Used to Determine Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and Other Postretirement Benefit Plans [Abstract] | |||
Discount rate | 2.40% | 2.60% | 3.80% |
Expected (long-term) return on plan assets | 3.85% | 3.85% | 5.62% |
Rate of future compensation increases |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension and Other Postretirement Benefit Plans [Abstract] | |
2019 | $ 698 |
2020 | 734 |
2021 | 771 |
2022 | 809 |
2023 | 850 |
Years 2024-2028 | 4,928 |
Defined Benefit Plan Expected Future Benefit Payments | $ 8,790 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Fair Values of Pension Plan Assets) (Details) $ in Thousands | Dec. 31, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | $ 22,785 | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 103 | |
Government Debt Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 22,682 | |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 103 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 103 | |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 22,682 | [1] |
Fair Value, Inputs, Level 2 [Member] | Government Debt Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | $ 22,682 | [1] |
[1] | Quoted prices for the managed funds are not available from an active market source since such investments are pooled investment funds. The unitized pooled investment vehicles have been valued at the latest available bid price or single price provided by the pooled investment manager. Shares in other pooled arrangements have been valued at the latest available net asset value, determined in accordance with fair value principles, provided by the pooled investment manager. |
OTHER EXPENSE (Schedule of Othe
OTHER EXPENSE (Schedule of Other Nonoperating Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment income: | |||
Interest | $ 1,300 | $ 676 | $ 376 |
Investment income interest and dividend and gain loss on investments | 1,300 | 676 | 376 |
Net actuarial (loss)/gain on pension | (902) | 526 | (380) |
Write off of deferred debt issuance cost | (2,400) | (7,020) | (5,097) |
Gain (loss) on repurchase of debt instrument | (1,295) | 3,755 | |
Other | (418) | ||
Other Income | $ (3,715) | $ (5,818) | $ (1,346) |
2018 AND 2017 QUARTERLY RESULTS
2018 AND 2017 QUARTERLY RESULTS OF OPERATIONS (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||
Shipping revenues | $ 100,548 | $ 60,926 | $ 56,909 | $ 51,978 | $ 69,426 | $ 59,968 | $ 71,957 | $ 88,750 | $ 270,361 | $ 290,101 | $ 398,319 |
Gain/(loss) on disposal of vessels, including impairments | (2,487) | (17,360) | 6,740 | (6,573) | (81,449) | (5,406) | (19,680) | (86,855) | (79,203) | ||
Income/(loss) from vessel operations | 17,865 | (36,021) | (9,669) | (26,706) | (88,152) | (23,662) | (9,559) | 13,428 | (54,531) | (107,945) | 7,207 |
Interest expense | (18,204) | (17,320) | (13,086) | (11,621) | (11,570) | (11,232) | (9,278) | (9,167) | (60,231) | (41,247) | (40,362) |
Income tax benefit/(provision) | 116 | (3) | (8) | (13) | (23) | (4) | (4) | 105 | (44) | (440) | |
Net (Loss)/Income | $ 6,958 | $ (47,786) | $ (18,796) | $ (29,316) | $ (90,720) | $ (21,816) | $ (11,619) | $ 18,067 | $ (88,940) | $ (106,088) | $ (18,223) |
Basic and Diluted net income (in dollars per share) | $ 0.24 | $ (1.64) | $ (0.65) | $ (1.01) | $ (3.12) | $ (0.75) | $ (0.40) | $ 0.62 | $ (3.05) | $ (3.64) | $ (0.62) |
Other than temporary impairment - Equity method investment, Impairment Charges | $ 30,475 | $ 30,475 | |||||||||
Euronav Nv Joint Venture [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Other than temporary impairment - Equity method investment, Impairment Charges | $ 30,475 |
CONTINGENCIES (Narrative) (Deta
CONTINGENCIES (Narrative) (Details) £ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Oct. 31, 2018GBP (£) | Oct. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||
Other liabilities, current | $ 2,650 | $ 2,082 | ||||
Galveston Accident [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ 25,000 | |||||
Merchant Navy Ratings Pension Fund [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Multiemployer plans deficit amount for entity | £ 172 | 224 | ||||
Defined benefit plan, contributions by employer | £ 115 | $ 151 | ||||
Other liabilities, current | £ 57 | $ 73 |
REORGANIZATION ITEMS, NET (Narr
REORGANIZATION ITEMS, NET (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Chapter 11 Filing Going Concern and Other Related Matters [Line Items] | |||
Reorganization items settled with cash | $ 0 | $ 0 | $ 0 |
Reorganization items, total | 131,000 | ||
Allocated reorganization items, non-cash | 131,000 | ||
Facilities | |||
Chapter 11 Filing Going Concern and Other Related Matters [Line Items] | |||
Debt instrument, face amount | 628,375,000 | ||
Line of credit facility, maximum borrowing capacity | 50,000,000 | ||
OSG Inc. [Member] | |||
Chapter 11 Filing Going Concern and Other Related Matters [Line Items] | |||
Reorganization items, total | $ 131,000 | $ 131,000 |
REORGANIZATION ITEMS, NET (Sche
REORGANIZATION ITEMS, NET (Schedule of Reorganization Items, Net) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Chapter 11 Filing Going Concern and Other Related Matters [Abstract] | |
Allocated trustee fees | $ 74 |
Allocated professional fees | (3,220) |
Other claims adjustments | 3,277 |
Reorganization Items, net | $ 131 |
Schedule I Condensed Financia_2
Schedule I Condensed Financial Information Parent - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||||
Cash and cash equivalents | $ 58,313 | $ 60,027 | ||
Other receivables | 5,246 | 4,411 | ||
Prepaid expenses and other current assets | 5,912 | 5,881 | ||
Total Current Assets | 167,620 | 131,792 | ||
Restricted cash | 59,331 | 10,579 | ||
Investments in and advances to affiliated companies | 268,322 | 378,894 | ||
Other assets | 5,056 | 1,970 | ||
Total Assets | 1,848,601 | 1,664,484 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other current liabilities | 22,974 | 22,805 | ||
Payable to OSG | 34 | 367 | ||
Total Current Liabilities | 75,270 | 47,235 | ||
Long-term portion | 759,112 | 528,874 | ||
Total Liabilities | 838,746 | 578,830 | ||
Equity: | ||||
Capital - 100,000,000 no par value shares authorized; 29,184,501 and 29,089,865 shares issued and outstanding | 1,309,269 | 1,306,606 | ||
Accumulated deficit | (269,485) | (180,545) | ||
Stockholders Equity Subtotal | 1,039,784 | 1,126,061 | ||
Accumulated other comprehensive loss | (29,929) | (40,407) | ||
Total Equity | 1,009,855 | 1,085,654 | $ 1,179,512 | $ 1,383,786 |
Total Liabilities and Equity | 1,848,601 | 1,664,484 | ||
Parent Company [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 159 | 1,624 | ||
Other receivables | 5 | 6 | ||
Prepaid expenses and other current assets | 556 | 575 | ||
Total Current Assets | 720 | 2,205 | ||
Investment in subsidiaries | 941,872 | 978,737 | ||
Investments in and advances to affiliated companies | 112,212 | 102,398 | ||
Intercompany receivables | 1,611 | 3,126 | ||
Other assets | 282 | |||
Total Assets | 1,060,697 | 1,086,466 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other current liabilities | 841 | 621 | ||
Payable to OSG | 34 | 47 | ||
Total Current Liabilities | 875 | 668 | ||
Long-term portion | 49,824 | |||
Intercompany payables | 143 | 143 | ||
Total Liabilities | 50,842 | 811 | ||
Equity: | ||||
Capital - 100,000,000 no par value shares authorized; 29,184,501 and 29,089,865 shares issued and outstanding | 1,309,269 | 1,306,606 | ||
Accumulated deficit | (269,485) | (180,544) | ||
Stockholders Equity Subtotal | 1,039,784 | 1,126,062 | ||
Accumulated other comprehensive loss | (29,929) | (40,407) | ||
Total Equity | 1,009,855 | 1,085,655 | ||
Total Liabilities and Equity | $ 1,060,697 | $ 1,086,466 |
Schedule I Condensed Financia_3
Schedule I Condensed Financial Information Parent - CONSOLIDATED BALANCE SHEETS (Balance Sheet Extra) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Unbilled contracts receivable (in dollars) | $ 87,725 | $ 54,701 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 29,184,501 | 29,089,865 |
Common stock, shares, outstanding | 29,184,501 | 29,089,865 |
Parent Company [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 29,184,501 | 29,089,865 |
Common stock, shares, outstanding | 29,184,501 | 29,089,865 |
Schedule I Condensed Financia_4
Schedule I Condensed Financial Information Parent - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shipping revenues | $ 100,548 | $ 60,926 | $ 56,909 | $ 51,978 | $ 69,426 | $ 59,968 | $ 71,957 | $ 88,750 | $ 270,361 | $ 290,101 | $ 398,319 |
Operating Expenses: | |||||||||||
Voyage expenses | 27,261 | 15,106 | 13,274 | ||||||||
Vessel expenses | 135,003 | 141,235 | 141,944 | ||||||||
Charter hire expenses | 44,910 | 41,700 | 37,411 | ||||||||
Depreciation and amortization | 72,428 | 78,853 | 79,885 | ||||||||
General and administrative | 24,304 | 24,453 | 30,352 | ||||||||
Third-party debt modification costs | 1,306 | 9,240 | |||||||||
Separation and transition costs | 604 | 9,043 | |||||||||
Loss on disposal of vessels and other property, including impairments | 2,487 | 17,360 | (6,740) | 6,573 | 81,449 | 5,406 | 19,680 | 86,855 | 79,203 | ||
Total operating expenses | 324,892 | 398,046 | 391,112 | ||||||||
(Loss)/income from vessel operations | 17,865 | (36,021) | (9,669) | (26,706) | (88,152) | (23,662) | (9,559) | 13,428 | (54,531) | (107,945) | 7,207 |
Equity in income of affiliated companies | 29,432 | 48,966 | 16,849 | ||||||||
Operating (loss)/income | (25,099) | (58,979) | 24,056 | ||||||||
Other expense | (3,715) | (5,818) | (1,346) | ||||||||
(Loss)/income before interest expense, reorganization items and income taxes | (28,814) | (64,797) | 22,710 | ||||||||
Interest expense | (18,204) | (17,320) | (13,086) | (11,621) | (11,570) | (11,232) | (9,278) | (9,167) | (60,231) | (41,247) | (40,362) |
Loss before reorganization items and income taxes | (89,045) | (106,044) | (17,652) | ||||||||
Reorganization items, net | (131) | ||||||||||
Loss before income taxes | (89,045) | (106,044) | (17,783) | ||||||||
Income tax benefit/(provision) | 116 | (3) | (8) | (13) | (23) | (4) | (4) | 105 | (44) | (440) | |
Net loss | $ 6,958 | $ (47,786) | $ (18,796) | $ (29,316) | $ (90,720) | $ (21,816) | $ (11,619) | $ 18,067 | (88,940) | (106,088) | (18,223) |
Other Comprehensive Income/(Loss), net of tax: | |||||||||||
Net change in unrealized losses on cash flow hedges | 7,469 | 11,328 | 13,129 | ||||||||
Foreign currency translation adjustment | 42 | ||||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net change in unrecognized prior service costs | (13) | (31) | 294 | ||||||||
Net change in unrecognized actuarial losses | 3,022 | 563 | (1,608) | ||||||||
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 | ||||||||
Comprehensive Loss | (78,462) | (94,228) | (6,366) | ||||||||
Parent Company [Member] | |||||||||||
Shipping revenues | 2 | 2 | |||||||||
Operating Expenses: | |||||||||||
Voyage expenses | (1,318) | ||||||||||
Vessel expenses | (4) | (778) | |||||||||
Charter hire expenses | (457) | ||||||||||
Depreciation and amortization | 783 | ||||||||||
General and administrative | 4,664 | 5,880 | 25,467 | ||||||||
Third-party debt modification costs | 44 | ||||||||||
Separation and transition costs | 381 | 6,077 | |||||||||
Loss on disposal of vessels and other property, including impairments | 30 | ||||||||||
Total operating expenses | 4,708 | 6,257 | 29,804 | ||||||||
(Loss)/income from vessel operations | (4,708) | (6,255) | (29,802) | ||||||||
Equity in income of affiliated companies | (80,269) | (75,790) | 53,586 | ||||||||
Operating (loss)/income | (84,977) | (82,045) | 23,784 | ||||||||
Other expense | (92) | (6,888) | (2,583) | ||||||||
(Loss)/income before interest expense, reorganization items and income taxes | (85,069) | (88,933) | 21,201 | ||||||||
Interest expense | (3,864) | (17,129) | (39,278) | ||||||||
Loss before reorganization items and income taxes | (88,933) | (106,062) | (18,077) | ||||||||
Reorganization items, net | (131) | ||||||||||
Loss before income taxes | (88,933) | (106,062) | (18,208) | ||||||||
Income tax benefit/(provision) | (7) | (26) | (15) | ||||||||
Net loss | (88,940) | (106,088) | (18,223) | ||||||||
Other Comprehensive Income/(Loss), net of tax: | |||||||||||
Net change in unrealized losses on cash flow hedges | 7,469 | 11,328 | 13,129 | ||||||||
Foreign currency translation adjustment | 42 | ||||||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net change in unrecognized prior service costs | (13) | (31) | 294 | ||||||||
Net change in unrecognized actuarial losses | 3,022 | 563 | (1,608) | ||||||||
Other Comprehensive Income, net of tax | 10,478 | 11,860 | 11,857 | ||||||||
Comprehensive Loss | $ (78,462) | $ (94,228) | $ (6,366) |
Schedule I Condensed Financia_5
Schedule I Condensed Financial Information Parent - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net cash (used in)/provided by operating activities | $ (12,480) | $ 17,395 | $ 128,960 |
Cash Flows from Investing Activities: | |||
Capital contributions to subsidiaries | 56,942 | ||
Distributions from subsidiaries and affiliated companies | 100,780 | 19,530 | 6,334 |
Net cash provided by/(used in) investing activities | 123,709 | (136,798) | 2,452 |
Cash Flows from Financing Activities: | |||
Issuance of debt, net of issuance and deferred financing costs | 70,120 | 614,933 | |
Payments on debt | (71,610) | (54,983) | (90,065) |
Extinguishment of debt | (62,069) | (458,416) | (65,167) |
Dividend payments to OSG | (202,000) | ||
Repurchases of common stock | (3,177) | ||
Cash paid to tax authority upon vesting of stock-based compensation | (410) | (349) | (26) |
Other - net | (222) | ||
Net cash (used in)/provided by financing activities | (64,191) | 98,008 | (357,258) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 47,038 | (21,395) | (225,846) |
Cash, cash equivalents and restricted cash at beginning of year | 70,606 | 92,001 | 317,847 |
Cash, cash equivalents and restricted cash at end of year | 117,644 | 70,606 | 92,001 |
Parent Company [Member] | |||
Cash Flows from Operating Activities: | |||
Net cash (used in)/provided by operating activities | 3,500 | 297,931 | 41,883 |
Cash Flows from Investing Activities: | |||
Capital contributions to subsidiaries | 56,942 | ||
Distributions from subsidiaries and affiliated companies | 7,360 | 165,168 | |
Net cash provided by/(used in) investing activities | (49,582) | 165,168 | |
Cash Flows from Financing Activities: | |||
Issuance of debt, net of issuance and deferred financing costs | 51,318 | ||
Payments on debt | (1,546) | (90,065) | |
Extinguishment of debt | (2,069) | (458,416) | (65,167) |
Dividend payments to OSG | (202,000) | ||
Repurchases of common stock | (3,177) | ||
Cash paid to tax authority upon vesting of stock-based compensation | (410) | (349) | (26) |
Other - net | 222 | ||
Net cash (used in)/provided by financing activities | 48,617 | (463,488) | (357,258) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 2,535 | (389) | (315,375) |
Cash, cash equivalents and restricted cash at beginning of year | 1,624 | 2,013 | 317,388 |
Cash, cash equivalents and restricted cash at end of year | $ 4,159 | $ 1,624 | $ 2,013 |
Schedule I Condensed Financia_6
Schedule I Condensed Financial Information Parent - BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS (Details) - Parent Company [Member] | Dec. 31, 2018 |
Consolidated subsidiary ownership percentage | 100.00% |
LNG Joint Venture | |
Equity method investment, ownership percentage | 49.90% |
Schedule I Condensed Financia_7
Schedule I Condensed Financial Information Parent - DEBT (Details) - USD ($) | Sep. 17, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 13, 2018 | May 31, 2018 |
Less current portion | $ (51,555,000) | $ (24,063,000) | ||||
Long-term portion | 759,112,000 | 528,874,000 | ||||
Capital contributions to subsidiaries | 56,942,000 | |||||
Recapitalization costs | 1,306,000 | 9,240,000 | ||||
Third-party debt modification costs | 1,306,000 | 9,240,000 | ||||
Net loss from write-off of unamortized original issue discount and deferred financing costs | 2,400,000 | 7,020,000 | $ 5,097,000 | |||
Repayments of secured debt | 62,069,000 | 458,416,000 | 65,167,000 | |||
Gain on repurchase of debt | (1,295,000) | 3,755,000 | ||||
Facilities | ||||||
Long-term debt | 837,315,000 | |||||
Debt instrument, face amount | 628,375,000 | |||||
Net loss from write-off of unamortized original issue discount and deferred financing costs | 5,097,000 | |||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | 3,755,000 | |||||
Debt Issuance Costs, Legal and Consulting Fees | 225,000 | |||||
Long term debt, Maturities | ||||||
2019 | 51,555,000 | |||||
2020 | 51,555,000 | |||||
2021 | 51,555,000 | |||||
2022 | 417,930,000 | |||||
2023 | 89,330,000 | |||||
Aggregate principal payments required | 837,315,000 | |||||
Senior Notes | 8.5% Senior Notes | ||||||
Long-term debt | $ 23,598,000 | |||||
Debt instrument, face amount | $ 25,000,000 | |||||
Interest rate | 8.50% | 8.50% | ||||
Long term debt, Maturities | ||||||
Aggregate principal payments required | $ 23,598,000 | |||||
Subordinated Debt | 10.75% Subordinated Notes | ||||||
Long-term debt | 26,226,000 | |||||
Unamortized discount and deferred finance costs | 1,705,000 | |||||
Debt instrument, face amount | $ 30,000,000 | |||||
Interest rate | 10.75% | |||||
Repayments of subordinated debt | $ 2,069,000 | |||||
Long term debt, Maturities | ||||||
Aggregate principal payments required | 26,226,000 | |||||
Parent Company [Member] | ||||||
Long-term debt | 52,931,000 | |||||
Long-term portion | 49,824,000 | |||||
Capital contributions to subsidiaries | 56,942,000 | |||||
Capitalized deferred finance charges | 3,683,000 | |||||
Recapitalization costs | 44,000 | |||||
Third-party debt modification costs | 44,000 | |||||
Net loss from write-off of unamortized original issue discount and deferred financing costs | 128,000 | 5,097,000 | ||||
Repayments of secured debt | 2,069,000 | 458,416,000 | 65,167,000 | |||
Long term debt, Maturities | ||||||
2023 | 52,931,000 | |||||
Aggregate principal payments required | 52,931,000 | |||||
Parent Company [Member] | 8.5% Senior Notes | ||||||
Unamortized discount and deferred finance costs | 1,402,000 | |||||
Parent Company [Member] | 10.75% Subordinated Notes | ||||||
Unamortized discount and deferred finance costs | 1,705,000 | |||||
Parent Company [Member] | Eight Point Five Senior Notes And Ten Point Seven Five Subordinated Notes | ||||||
Issuance costs | 3,727,000 | |||||
Parent Company [Member] | Facilities | ||||||
Capitalized deferred finance charges | 8,273,000 | |||||
Recapitalization costs | 44,000 | |||||
Third-party debt modification costs | 44,000 | |||||
Net loss from modification of the Parent's debt facilities | $ 7,020,000 | |||||
Repurchase of term loan | 68,922,000 | |||||
Repayments of secured debt | 83,832,000 | |||||
Gain on repurchase of debt | 1,342,000 | |||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | 3,755,000 | |||||
Debt Issuance Costs, Legal and Consulting Fees | $ 225,000 | |||||
Parent Company [Member] | Senior Notes | 8.5% Senior Notes | ||||||
Long-term debt | 23,598,000 | |||||
Debt instrument, face amount | $ 25,000,000 | |||||
Interest rate | 8.50% | |||||
Long term debt, Maturities | ||||||
Aggregate principal payments required | $ 23,598,000 | |||||
Parent Company [Member] | Subordinated Debt | 10.75% Subordinated Notes | ||||||
Long-term debt | 26,226,000 | |||||
Debt instrument, face amount | $ 30,000,000 | |||||
Interest rate | 10.75% | |||||
Repayments of subordinated debt | 2,069,000 | |||||
Long term debt, Maturities | ||||||
Aggregate principal payments required | 26,226,000 | |||||
Subsidiaries [Member] | ||||||
Capital contributions to subsidiaries | $ 56,899,000 |
Schedule I Condensed Financia_8
Schedule I Condensed Financial Information Parent - RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity in (loss)/income of affiliated companies | $ 29,432 | $ 48,966 | $ 16,849 |
Parent Company [Member] | |||
Equity in (loss)/income of affiliated companies | $ (80,269) | (75,790) | 53,586 |
Interest rate | 4.00% | ||
Outstanding principal balance | 1,764 | ||
Accrued interest balance | 91 | ||
Intercompany receivables | $ 1,611 | 3,126 | |
Amounts due to related companies | 143 | 143 | |
Cash distributions | 7,360 | 487,260 | |
Earnings distributions | 322,092 | 202,000 | |
Return of capital | 165,168 | ||
Parent Company [Member] | Other expense | |||
Expense from related party | 35 | 131 | (1,617) |
Parent Company [Member] | INSW Ship Management UK Ltd | |||
General and administrative expenses reimbursed | (1,691) | ||
Parent Company [Member] | INSW Manila Inc | |||
Interest income on intercompany loan | 35 | 131 | 74 |
Amounts due from related companies | 1,568 | 1,271 | |
Intercompany loans receivable and accrued interest | 1,855 | ||
Parent Company [Member] | ISOC | |||
Amounts due from related companies | 43 | ||
Parent Company [Member] | OIN Delaware LLC | |||
Amounts due to related companies | 100 | 100 | |
Parent Company [Member] | OSG-NNA Ship Management Services Inc | |||
Amounts due to related companies | 43 | 43 | |
Parent Company [Member] | ISOC | |||
Equity in (loss)/income of affiliated companies | (90,020) | (89,851) | 43,325 |
Parent Company [Member] | Other Subsidiaries | |||
Equity in (loss)/income of affiliated companies | (99) | (327) | (977) |
Parent Company [Member] | LNG Joint Venture | |||
Equity in (loss)/income of affiliated companies | $ 9,850 | $ 14,388 | 11,265 |
Parent Company [Member] | TI LLC Joint Venture | |||
Equity in (loss)/income of affiliated companies | $ (27) |