Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | International Seaways, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,843,761 | |
Entity Central Index Key | 0001679049 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 93,298 | $ 89,671 |
Voyage receivables, net of allowance for credit losses of $1,299 and $1,245, including unbilled of $97,948 and $74,355 | 104,094 | 83,845 |
Other receivables | 6,053 | 3,938 |
Inventories | 3,559 | 3,896 |
Prepaid expenses and other current assets | 8,592 | 5,994 |
Total Current Assets | 215,596 | 187,344 |
Restricted cash | 17,029 | 60,572 |
Vessels and other property, less accumulated depreciation of $378,747 and $364,868 | 1,297,339 | 1,292,516 |
Deferred drydock expenditures, net | 26,888 | 23,125 |
Operating lease right-of-use assets | 28,940 | 33,718 |
Investments in and advances to affiliated companies | 151,400 | 153,292 |
Other assets | 3,536 | 2,934 |
Total Assets | 1,740,728 | 1,753,501 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 32,864 | 27,554 |
Current portion of operating lease liabilities | 10,668 | 12,958 |
Current installments of long-term debt | 81,483 | 70,350 |
Current portion of derivative liability | 7,614 | 3,614 |
Total Current Liabilities | 132,629 | 114,476 |
Long-term operating lease liabilities | 15,718 | 17,953 |
Long-term debt | 543,111 | 590,745 |
Long-term derivative liability | 18,258 | 6,545 |
Other liabilities | 1,332 | 1,489 |
Total Liabilities | 711,048 | 731,208 |
Commitments and contingencies | ||
Equity: | ||
Capital - 100,000,000 no par value shares authorized; 28,823,465 and 29,274,452 shares issued and outstanding | 1,301,938 | 1,313,178 |
Accumulated deficit | (237,296) | (270,315) |
Stockholders Equity Subtotal | 1,064,642 | 1,042,863 |
Accumulated other comprehensive loss | (34,962) | (20,570) |
Total Equity | 1,029,680 | 1,022,293 |
Total Liabilities and Equity | $ 1,740,728 | $ 1,753,501 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Unbilled voyage receivable (in dollars) | $ 97,948 | $ 74,355 |
Voyage receivables, allowance for credit losses | 1,299 | 1,245 |
Vessels and other property, accumulated depreciation | $ 378,747 | $ 364,868 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 28,823,465 | 29,274,452 |
Common stock, shares, outstanding | 28,823,465 | 29,274,452 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shipping Revenues: | ||
Shipping revenues | $ 125,337 | $ 101,874 |
Operating Expenses: | ||
Voyage expenses | 5,606 | 7,845 |
Vessel expenses | 32,960 | 30,538 |
Charter hire expenses | 10,231 | 17,185 |
Depreciation and amortization | 18,267 | 18,929 |
General and administrative | 7,434 | 6,773 |
Provision for credit losses, net | 62 | 1,298 |
Third-party debt modification fees | 232 | 30 |
Gain on disposal of vessels and other property | (2,804) | (48) |
Total operating expenses | 71,988 | 82,550 |
Income from vessel operations | 53,349 | 19,324 |
Equity in income of affiliated companies | 5,111 | 8,070 |
Operating income | 58,460 | 27,394 |
Other (expense)/income | (13,432) | 1,036 |
Income before interest expense and income taxes | 45,028 | 28,430 |
Interest expense | (12,009) | (17,533) |
Income before income taxes | 33,019 | 10,897 |
Net income | $ 33,019 | $ 10,897 |
Weighted Average Number of Common Shares Outstanding: | ||
Basic | 29,154,639 | 29,181,233 |
Diluted | 29,348,393 | 29,223,187 |
Per Share Amounts: | ||
Basic net income per share | $ 1.13 | $ 0.37 |
Diluted net income per share | $ 1.12 | $ 0.37 |
Pool Revenue Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | $ 101,209 | $ 67,637 |
Time and Bareboat Charter Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | 8,604 | 5,520 |
Voyage Charter Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | $ 15,524 | $ 28,717 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Pool revenues, received from companies accounted for by the equity method | $ 70,675 | $ 41,160 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 33,019 | $ 10,897 |
Other comprehensive (loss)/income, net of tax: | ||
Net change in unrealized losses on cash flow hedges | (14,985) | (3,178) |
Defined benefit pension and other postretirement benefit plans: | ||
Net change in unrecognized prior service costs | 72 | (26) |
Net change in unrecognized actuarial losses | 521 | (173) |
Other comprehensive loss, net of tax | (14,392) | (3,377) |
Comprehensive income | $ 18,627 | $ 7,520 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net income | $ 33,019 | $ 10,897 |
Items included in net income not affecting cash flows: | ||
Depreciation and amortization | 18,267 | 18,929 |
Amortization of debt discount and other deferred financing costs | 983 | 1,765 |
Deferred financing costs write-off | 12,501 | |
Stock compensation, non-cash | 1,206 | 761 |
Earnings of affiliated companies | (3,851) | (8,452) |
Change in fair value of interest rate collar recorded through earnings | 1,271 | |
Other - net | 293 | 36 |
Items included in net income related to investing and financing activities: | ||
Gain on disposal of vessels and other property, net | (2,804) | (48) |
Loss on extinguishment of debt | 992 | |
Cash distributions from affiliated companies | 3,250 | 2,050 |
Payments for drydocking | (7,565) | (4,438) |
Insurance claims proceeds related to vessel operations | 239 | 555 |
Changes in operating assets and liabilities: | ||
Increase in receivables | (20,249) | (1,195) |
Net change in inventories, prepaid expenses and other current assets and accounts payable, accrued expense, and other current and long-term liabilities | 766 | 3,131 |
Net cash provided by operating activities | 38,318 | 23,991 |
Cash Flows from Investing Activities: | ||
Expenditures for vessels and vessel improvements | (28,914) | (2,962) |
Proceeds from disposal of vessels and other property | 13,601 | (82) |
Expenditures for other property | (208) | (208) |
Investments in and advances to affiliated companies, net | 364 | 478 |
Repayments of advances from affiliated companies | 5,450 | |
Net cash (used in)/provided by investing activities | (15,157) | 2,676 |
Cash Flows from Financing Activities: | ||
Issuance of debt, net of issuance and deferred financing costs | 362,989 | |
Extinguishment of debt | (382,699) | |
Payments on debt | (30,895) | (6,764) |
Cash dividends paid | (1,729) | |
Repurchases of common stock | (10,012) | |
Cash paid to tax authority upon vesting of stock-based compensation | (705) | (149) |
Other - net | (26) | (243) |
Net cash used in financing activities | (63,077) | (7,156) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (39,916) | 19,511 |
Cash, cash equivalents and restricted cash at beginning of year | 150,243 | 117,644 |
Cash, cash equivalents and restricted cash at end of period | $ 110,327 | $ 137,155 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member]Restricted Stock [Member] | Common Stock [Member]Restricted Stock Units (RSUs) [Member] | Common Stock [Member] | Retained Earnings / (Accumulated deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Total |
Balance, beginning at Dec. 31, 2018 | $ 1,309,269 | $ (269,485) | $ (29,929) | $ 1,009,855 | ||||
Net income | 10,897 | 10,897 | ||||||
Other comprehensive loss | (3,377) | (3,377) | ||||||
Forfeitures of vested restricted stock awards | (149) | (149) | ||||||
Compensation relating to restricted stock units or restricted stock awards | 233 | 233 | ||||||
Compensation relating to stock option awards | $ 232 | $ 296 | $ 232 | $ 296 | ||||
Balance, ending at Mar. 31, 2019 | 1,309,881 | (258,588) | (33,306) | 1,017,987 | ||||
Balance, beginning at Dec. 31, 2019 | 1,313,178 | (270,315) | (20,570) | 1,022,293 | ||||
Net income | 33,019 | 33,019 | ||||||
Other comprehensive loss | (14,392) | (14,392) | ||||||
Dividends declared and paid | (1,729) | (1,729) | ||||||
Forfeitures of vested restricted stock awards | (705) | (705) | ||||||
Compensation relating to restricted stock units or restricted stock awards | 222 | 222 | ||||||
Compensation relating to stock option awards | $ 229 | $ 755 | $ 229 | $ 755 | ||||
Repurchase of common stock | (10,012) | (10,012) | ||||||
Balance, ending at Mar. 31, 2020 | $ 1,301,938 | $ (237,296) | $ (34,962) | $ 1,029,680 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | Note 1 — Basis of Presentation: The accompanying unaudited condensed consolidated financial statements include the accounts of International Seaways, Inc. (“INSW”), a Marshall Islands corporation, and its wholly owned subsidiaries. The Company owns and operates a fleet of 40 oceangoing vessels, including four vessels that have been chartered-in under operating leases for durations exceeding one year at inception and two vessels in which the Company has interests through its joint ventures, engaged primarily in the transportation of crude oil and refined petroleum products in the International Flag trade through its wholly owned subsidiaries. Unless the context indicates otherwise, references to “INSW”, the “Company”, “we”, “us” or “our”, refer to International Seaways, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles in the United States. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019. All intercompany balances and transactions within INSW have been eliminated. Investments in 50% or less owned affiliated companies, in which INSW exercises significant influence, are accounted for by the equity method. Dollar amounts, except per share amounts, are in thousands. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2 — Significant Accounting Policies: For a description of all of the Company’s material accounting policies, see Note 2, “Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10‑K. The following is a summary of any changes or updates to the Company’s critical accounting policies for the current period: Cash, cash equivalents and Restricted cash — Interest-bearing deposits that are highly liquid investments and have a maturity of three months or less when purchased are included in cash and cash equivalents. Restricted cash of $17,029 as of March 31, 2020 represents legally restricted cash relating to the Company's Sinosure Credit Facility (See Note 9, “Debt”). Restricted cash of $60,572 as of December 31, 2019 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 . Such restricted cash reserves are included in the non-current assets section of the condensed consolidated balance sheets. Concentration of Credit Risk — We are subject to concentrations of credit risk principally from cash and cash equivalents and voyage receivables due from charterers and pools in which the Company participates. We manage our credit risk exposure through assessment of our counterparty creditworthiness. Cash equivalents consist primarily of time deposits, and money market funds. We place our cash and cash equivalents in what we believe to be credit-worthy financial institutions. Our money market funds are carried at fair market value. Voyage receivables consist of (i) operating lease receivables associated with revenues from leases accounted for under ASC 842, Leases (ASC 842), which are primarily unbilled amounts due from pools; and (ii) billed and unbilled non-operating lease receivables associated with revenues from services accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606), which are due within one year. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We maintain allowances for estimated credit losses and these losses have generally been within our expectations. With respect to non-operating lease receivables, the Company recognizes as an allowance its estimate of expected credit losses in accordance with ASC 326, Financial Instruments – Credit losses (ASC 326) , based on troubled accounts, historical experience, other currently available evidence, and reasonable and supportable forecasts about the future. The Company makes significant judgements and assumptions to estimate its expected losses. We make judgments about the creditworthiness of customers based on ongoing credit evaluations including analysis of the counterparty’s established credit rating or assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available, country and political risk of the counterparty, and their business strategy. We manage our non-operating lease receivable portfolios using delinquency as a key credit quality indicator. The Company performs the following steps in estimating expected losses: (i) gather historical losses over 5 years; (ii) assume outstand ing billed amounts over 180 days as additional expected losses; and (iii) make adjustments to the expected losses to reflect future economic conditions by comparing credit default swap rates of significant customers over time. In addition, the Company performs individual assessments for customers that do not share risk characteristics with other customers (for example a customer under bankruptcy or a customer with known disputes or collectability issues). The allowance for credit losses is recognized as an allowance or contra-asset and reflects our best estimate of probable losses inherent in the voyage receivables balance. Provisions for credit losses associated with voyage receivables are included in provision for credit losses on the condensed consolidated statements of operations. Activity for allowance for credit losses is summarized as follows: Allowance for Credit Losses - Voyage Receivables Balance at January 1, 2018 $ - Provision for expected credit losses - Balance at December 31, 2018 - Provision for expected credit losses 1,245 Balance at December 31, 2019 1,245 Provision for expected credit losses 62 Write-offs charged against the allowance (8) Balance at March 31, 2020 $ 1,299 We are also exposed to credit losses from off-balance sheet exposures related to guarantees of joint venture debt. See Note 6, “Equity Method Investments,” for more information on these off-balance sheet exposures. During the three months ended March 31, 2020 and 2019, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 94% and 88% of consolidated voyage receivables at March 31, 2020 and December 31, 2019, respectively. Deferred finance charges — Finance charges, excluding original issue discount, incurred in the arrangement and/or amendments resulting in the modification of debt are deferred and amortized to interest expense on either an effective interest method or straight-line basis over the term of the related debt. Unamortized deferred finance charges of $980 relating to the Core Revolving Facility (See Note 9, “Debt”) as of March 31, 2020 and $274 relating to the 2017 Revolver Facility as of December 31, 2019, respectively, are included in other assets in the condensed consolidated balance sheets. Unamortized deferred financing charges of $9,216 and $16,309 relating to the Company’s outstanding debt facilities as of March 31, 2020 and December 31, 2019, respectively, are included in long-term debt in the condensed consolidated balance sheets. Interest expense relating to the amortization of deferred financing charges amounted to $851 and $1,230 for the three months ended March 31, 2020 and 2019, respectively. Recently Adopted 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. 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. In addition, for guarantees in the scope of ASC 326, entities must measure the expected credit losses arising from the contingent aspect under the CECL model in addition to recognizing the liability for the noncontingent aspect of the guarantee under ASC 460, Guarantees . A standalone liability representing the amount that an entity expects to pay on the guarantee related to expected credit losses is required for the contingent aspect. Financial assets measured at fair value through net income are scoped out of CECL. 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 leasing standard, ASC 842. The ASU requires a cumulative-effect adjustment to the retained earnings as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not to be adjusted. The adoption of ASC 326 on January 1, 2020 did not have a material impact on our consolidated financial statements since m ost of our voyage receivables are operating lease receivables, which are not in the scope of ASC 326. The Company determined that the cumulative-effect adjustment as of January 1, 2020 to accumulated deficit attributable to (i) an increase in our allowance for doubtful accounts associated with revenues from services and (ii) the recognition of guarantee liabilities associated with the contingent aspect of our current financial guarantee obligations, was immaterial. 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 is effective for the first interim reporting period within annual periods beginning after December 15, 2019. The adoption of this accounting policy had no impact on the Company’s consolidated financial statements because we did not have Level 3 fair value measurements during the three months ended March 31, 2020. Recently Issued Accounting Standards — In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848), which provides relief for companies preparing for discontinuation of interest rates such as LIBOR. A contract modification is eligible to apply the optional relief to account for the modifications as a continuation of the existing contracts without additional analysis and consider embedded features to be clearly and closely related to the host contract without reassessment, if all of the following criteria are met: (i) contract references a rate that will be discontinued; (ii) modified terms directly replace (or have potential to replace) this reference rate; and (iii) changes to any other terms that change (or have potential to change) amount and timing of cash flows must be related to replacement of reference rate. In addition, this guidance provides relief from certain hedge accounting requirements. Hedge accounting may continue uninterrupted when critical terms change due to reference rate reform. For cash flow hedges, entities can (i) disregard potential discontinuation of a referenced interest rate when assessing whether a hedged forecasted interest payment is probable; (ii) continue hedge accounting upon a change in the hedged risk as long as the hedge is still highly effective; (iii) assess effectiveness of the hedge relationship in ways that essentially disregards a potential mismatch in the variable rate indexes between the hedging instrument and the hedged item; and (iv) disregard the requirement that individual hedged transactions must share the same risk exposure for hedges of portfolios of forecasted transactions that reference a rate affected by reference rate reform. Relief provided by this ASU is optional and expires December 31, 2022. T he Company has determined that its primary exposure to LIBOR is in relation to its floating rate debt facilities and the interest rate derivatives to which it is a party. Through a review of the Company’s debt agreements and interest rate derivative contracts the Company believes there are adequate provisions within such agreements that provide guidance on how the Company and its counterparties under such agreements will address what happens when LIBOR is no longer available. 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. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2020 | |
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. Weighted average shares of unvested restricted common stock considered to be participating securities totaled 51,107 and 47,501 for the three months ended March 31, 2020 and 2019, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. As of March 31, 2020, there were 280,807 shares of restricted stock units and 538,632 stock options outstanding and considered to be potentially dilutive securities. The components of the calculation of basic earnings per share and diluted earnings per share are as follows: Three Months Ended March 31, 2020 2019 Net income $ 33,019 $ 10,897 Weighted average common shares outstanding: Basic 29,154,639 29,181,233 Diluted 29,348,393 29,223,187 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, 2020 2019 Net income allocated to: Common Stockholders $ 32,961 $ 10,879 Participating securities 58 18 $ 33,019 $ 10,897 For the three months ended March 31, 2020 and 2019 earnings per share calculations, there were 193,754 and 41,954 dilutive equity awards outstanding. Awards of 827,583 and 539,825 for the three months ended March 31, 2020 and 2019, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive. |
BUSINESS AND SEGMENT REPORTING
BUSINESS AND SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS AND SEGMENT REPORTING [Abstract] | |
BUSINESS AND SEGMENT REPORTING | Note 4 — Business and Segment Reporting: The Company has two reportable segments: Crude Tankers and Product Carriers. The Company’s investments in and equity in income of the joint ventures with two floating storage and offloading service vessels are included in the Crude Tankers Segment. The Company’s investments in and equity in income of the joint venture with four LNG Carriers, which was sold in October 2019, was included in Other. Adjusted income from vessel operations for segment purposes is defined as income from vessel operations before general and administrative expenses, provision for credit losses, third-party debt modification fees, and gain on disposal of vessels and other property . The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s condensed consolidated financial statements. Information about the Company’s reportable segments as of and for the three months ended March 31, 2020 and 2019 follows: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2020: Shipping revenues $ 93,677 $ 31,660 $ - $ 125,337 Time charter equivalent revenues 88,854 30,877 - 119,731 Depreciation and amortization 14,245 3,998 24 18,267 Gain on disposal of vessels and other property (2,804) - - (2,804) Adjusted income/(loss) from vessel operations 43,949 14,353 (29) 58,273 Equity in income of affiliated companies 5,111 - - 5,111 Investments in and advances to affiliated companies at March 31, 2020 143,403 7,997 - 151,400 Adjusted total assets at March 31, 2020 1,292,689 332,236 - 1,624,925 Expenditures for vessels and vessel improvements 11,301 17,613 - 28,914 Payments for drydockings 7,205 360 - 7,565 Three months ended March 31, 2019: Shipping revenues $ 80,385 $ 21,489 $ - $ 101,874 Time charter equivalent revenues 72,586 21,443 - 94,029 Depreciation and amortization 14,477 4,418 34 18,929 Loss/(gain) on disposal of vessels and other property 17 (65) - (48) Adjusted income/(loss) from vessel operations 23,362 4,058 (43) 27,377 Equity in income of affiliated companies 4,770 - 3,300 8,070 Investments in and advances to affiliated companies at March 31, 2019 139,832 12,703 114,983 267,518 Adjusted total assets at March 31, 2019 1,306,866 326,696 114,983 1,748,545 Expenditures for vessels and vessel improvements 2,955 7 - 2,962 Payments for drydockings 4,231 207 - 4,438 Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, 2020 2019 Time charter equivalent revenues $ 119,731 $ Add: Voyage expenses 5,606 Shipping revenues $ 125,337 $ 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 income from vessel operations of the segments to income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, 2020 2019 Total adjusted income from vessel operations of all segments $ 58,273 $ 27,377 General and administrative expenses (7,434) (6,773) Provision for credit losses, net (62) (1,298) Third-party debt modification fees (232) (30) Gain on disposal of vessels and other property 2,804 48 Consolidated income from vessel operations 53,349 19,324 Equity in income of affiliated companies 5,111 8,070 Other (expense)/income (13,432) 1,036 Interest expense (12,009) (17,533) Income before income taxes $ 33,019 $ 10,897 Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: March 31, 2020 March 31, 2019 Total assets of all segments $ 1,624,925 $ 1,748,545 Corporate unrestricted cash and cash equivalents 93,298 79,537 Restricted cash 17,029 57,618 Other unallocated amounts 5,476 5,370 Consolidated total assets $ 1,740,728 $ 1,891,070 |
VESSELS
VESSELS | 3 Months Ended |
Mar. 31, 2020 | |
VESSELS [Abstract] | |
VESSELS | Note 5 — Vessels: Vessel Impairments The Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2019 that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable as of March 31, 2020 and concluded that no such events or changes in circumstances had occurred to warrant a change in the assumptions utilized in the December 31, 2019 impairment tests of the Company’s fleet. The Company noted that the economic impacts of the novel coronavirus (COVID-19) did not have immediate material negative impacts on the markets for its vessels and that the very strong rate environment for its fleets during the latter portion of the first quarter of 2020 was principally due to increased oil production and a growth in demand for floating storage. As and when the worldwide impacts of COVID-19 begin to subside and oil demand increases and achieves a greater balance with oil supply, the demand for floating storage will likely decline as onshore and offshore oil inventories are drawn down, which could negatively impact the demand for oil tankers. The extent to which this will negatively impact the tanker rate environment will depend on the timing, magnitude and region of the oil demand recoveries. The Company will continue to monitor developments in the markets in which it operates for indications that the carrying values of its vessels are not recoverable. Vessel Acquisitions and Deliveries In December 2019, the Company entered into a memorandum of agreement for the acquisition of a 2009‑built LR1 for a purchase price of $18,750, which was delivered during the first quarter of 2020. Vessel Sales During the fourth quarter of 2019, the Company entered into memorandums of agreements to sell a 2002-built Aframax and a 2001-built Aframax. The 2002-built Aframax was delivered to its buyer in January 2020. The Company recognized a gain of approximately $2,808 on such sale. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 3 Months Ended |
Mar. 31, 2020 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
EQUITY METHOD INVESTMENTS | Note 6 — Equity Method Investments: Investments in affiliated companies include joint ventures accounted for using the equity method. As of March 31, 2020, the Company had a 50% interest in two joint ventures - TI Africa Limited (“TI Africa”) and TI Asia Limited (“TI Asia”), which operate two Floating Storage and Offloading Service vessels that were converted from two ULCCs (collectively the “FSO Joint Venture”). 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. The FSO Joint Venture drew down on a $220,000 credit facility in April 2018. 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). As of March 31, 2020, the maximum aggregate potential amount of future payments (undiscounted) that INSW could be required to make in relation to its equity method investees secured bank debt and interest rate swap obligations was $65,648 and the carrying value of the Company’s guaranty in the accompanying condensed consolidated balance sheets was $192. The FSO Joint Venture has had preliminary discussions with NOC regarding the employment of its FSO vessels subsequent to the expiry of their current contracts in 2022. The Company will monitor such discussions for evidence of an other-than-temporary decline in the fair value of the Company’s investment in the FSO Joint Venture below its carrying value. Investments in and advances to affiliated companies as reflected in the accompanying condensed consolidated balance sheet as of March 31, 2020 consisted of: FSO Joint Venture of $138,036 and Other of $13,364, which primarily relates to working capital deposits that the Company maintains for commercial pools in which it participates. A condensed summary of the results of operations of the joint ventures, which included an approximate 50% interest in a joint venture that operated four LNG carriers in the 2019 period, follows: Three Months Ended March 31, 2020 2019 Shipping revenues $ 26,024 $ 52,315 Ship operating expenses (14,240) (26,369) Income from vessel operations 11,784 25,946 Other income 40 428 Interest expense (1,874) (10,276) Income tax provision (923) (855) Net income $ 9,027 $ 15,243 |
VARIABLE INTEREST ENTITIES (VIE
VARIABLE INTEREST ENTITIES (VIEs) | 3 Months Ended |
Mar. 31, 2020 | |
VARIABLE INTEREST ENTITIES (VIEs) [Abstract] | |
VARIABLE INTEREST ENTITIES (VIEs) | Note 7 — Variable Interest Entities (“VIEs”): As of March 31, 2020, the Company participates in six commercial pools and two joint ventures. Two of the pools and the two FSO joint ventures were determined to be VIEs. The Company is not considered a primary beneficiary of either the pools or the joint ventures. The following table presents the carrying amounts of assets and liabilities in the condensed consolidated balance sheet related to the VIEs as of March 31, 2020: Condensed Investments in Affiliated Companies $ 142,809 In accordance with accounting guidance, the Company evaluated its maximum exposure to loss related to these VIEs by assuming a complete loss of the Company’s investment in these VIEs. The table below compares the Company’s liability in the condensed consolidated balance sheet to the maximum exposure to loss at March 31, 2020: Condensed Maximum Exposure to Other Liabilities $ 192 $ In addition, as of March 31, 2020, the Company had approximately $26,778 of trade receivables from the two pools that were determined to be VIEs. These trade receivables, which are included in voyage receivables in the accompanying condensed consolidated balance sheet, have been excluded from the above tables and the calculation of INSW’s maximum exposure to loss. The Company does not record the maximum exposure to loss as a liability because it does not believe that such a loss is probable of occurring as of March 31, 2020. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES | Note 8 — Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures: The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: Fair Value Level 1 Level 2 March 31, 2020: Cash and cash equivalents (1) $ 110,327 $ 110,327 $ - Core Term Loan Facility (300,000) - (300,000) Transition Term Loan Facility (45,000) - (45,000) Sinosure Credit Facility (263,811) - (263,811) 8.5% Senior Notes (23,970) (23,970) - December 31, 2019: Cash and cash equivalents (1) $ $ 150,243 $ - 2017 Term Loan Facility - (333,177) ABN Term Loan Facility - (23,248) Sinosure Credit Facility - (269,705) 8.5% Senior Notes (26,120) (26,120) - 10.75% Subordinated Notes - (32,649) (1) Includes non-current restricted cash of $17,029 and $60,572 at March 31, 2020 and December 31, 2019, respectively. Derivatives The Company uses interest rate caps, collars and swaps for the management of interest rate risk exposure associated with changes in LIBOR interest rate payments due on its credit facilities. In connection with its entry into the Core Term Loan Facility (see Note 9, “Debt”) on January 28, 2020, the Company, in a cashless transaction, converted the $350,000 notional interest rate collar into an amortizing $250,000 notional pay-fixed, receive-three-month LIBOR interest rate swap subject to a 0% floor. The term of the new hedging arrangement was extended to coincide with the maturity of the Core Term Loan Facility of January 23, 2025 at a fixed rate of 1.97%. The interest rate swap agreement has been re-designated and qualifies as a cash flow hedge and contains no leverage features. Changes in the fair value of the interest rate collar prior to the re-designation on January 28, 2020 recorded through earnings during the first quarter of 2020 totaled a loss of $1,271. During April 2020, the Company entered into an interest rate swap agreement with a major financial institution covering a notional amount of $25,000 of the Core Term Loan Facility that effectively converts the Company’s interest rate exposure from a three-month LIBOR floating rate to a fixed rate of 0.50% through the maturity date of January 23, 2025, effective June 30, 2020. The interest rate swap agreement, which contains no leverage features, qualifies as a cash flow hedge and will be designated as such. The Company is also party to a floating-to-fixed interest rate swap agreement with a major financial institution covering the balance outstanding under the Sinosure Credit Facility that effectively converts the Company’s interest rate exposure under the Sinosure Credit Facility from a floating rate based on three-month LIBOR to a fixed rate of 2.76% through the termination date of March 21, 2025. The interest rate swap agreement is designated and qualifies as a cash flow hedge and contains no leverage features. Derivatives are recorded on a net basis by counterparty when a legal right of offset exists. The following table presents information with respect to the fair values of derivatives reflected in the March 31, 2020 and December 31, 2019 balance sheets on a gross basis by transaction: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount March 31, 2020: Derivatives designated as hedging instruments: Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (7,614) Long-term portion Long-term derivative asset - Long-term derivative liability (18,258) Total derivatives designated as hedging instruments $ - $ (25,872) December 31, 2019: Derivatives not designated as hedging instruments: Interest rate collar: Current portion Current portion of derivative asset $ - Current portion of derivative liability $ (1,230) Long-term portion Long-term derivative asset - Long-term derivative liability (577) Derivatives designated as hedging instruments: Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (2,384) Long-term portion Long-term derivative asset - Long-term derivative liability (5,968) Total derivatives designated as hedging instruments $ - $ (10,159) The following tables present information with respect to gains and losses on derivative positions reflected in the condensed consolidated statements of operations or in the condensed consolidated statements of comprehensive income. The effect of cash flow hedging relationships recognized in other comprehensive loss excluding amounts reclassified from accumulated other comprehensive loss, including hedges of equity method investees, for the three months ended March 31, 2020 and 2019 follows: Three Months Ended March 31, 2020 2019 Derivatives designated as hedging instruments: Interest rate swaps $ (16,121) $ (4,091) Interest rate cap - (908) Total other comprehensive loss $ (16,121) $ (4,999) The effect of cash flow hedging relationships on the condensed consolidated statement of operations is presented excluding hedges of equity method investees. The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three months ended March 31, 2020 and 2019 follows: Three Months Ended March 31, 2020 2019 Derivatives designated as hedging instruments: Interest rate swaps $ 895 $ 140 Interest rate cap - 41 Derivatives not designated as hedging instruments: Interest rate collar 1,352 - Total interest expense $ 2,247 $ 181 See Note 12, “Accumulated Other Comprehensive Loss,” for disclosures relating to the impact of derivative instruments on accumulated other comprehensive loss. The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis (excluding investments in affiliated companies): Fair Value Level 1 Level 2 Assets/(Liabilities) at March 31, 2020: Derivative Assets (interest rate swaps) $ - $ - $ - (1) Derivative Liabilities (interest rate swaps) (25,872) - (25,872) (1) Assets/(Liabilities) at December 31, 2019: Derivative Assets (interest rate swaps and collar) $ - $ - $ - (1) Derivative Liabilities (interest rate swaps and collar) (10,159) - (10,159) (1) (1) For interest rate caps, swaps and collars, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
DEBT [Abstract] | |
DEBT | Note 9 — Debt: Debt consists of the following: March 31, December 31, 2020 2019 Core Term Loan Facility, due 2025, net of unamortized deferred finance costs of $5,191 $ 294,809 $ - Transition Term Loan Facility, due 2022, net of unamortized deferred finance costs of $787 44,213 - Sinosure Credit Facility, due 2027-2028, net of unamortized deferred finance costs of $2,166 and $2,262 261,645 267,443 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,073 and $1,142 23,927 23,858 2017 Term Loan Facility, due 2022, net of unamortized discount and deferred finance costs of $11,211 - 320,309 ABN Term Loan Facility, due 2023, net of unamortized deferred finance costs of $610 - 22,638 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,084 - 26,847 624,594 661,095 Less current portion (81,483) (70,350) Long-term portion $ 543,111 $ 590,745 On January 28, 2020, except for the Sinosure Credit Facility and the 8.5% Senior Notes, the principal outstanding as of December 31, 2019 on all of the Company’s other debt facilities reflected in the above table were paid off or repurchased and the underlying credit agreements or Indentures were terminated or discharged in accordance with their respective terms in conjunction with the Company closing on the 2020 Debt Facilities, described below. Capitalized terms used hereafter have the meaning given in these condensed consolidated financial statements or in the respective transaction documents referred to below, including subsequent amendments thereto. 2020 Debt Facilities On January 23, 2020, International Seaways, Inc., International Seaways Operating Corporation (the “Borrower”) and certain of their subsidiaries entered into a credit agreement (the “Credit Agreement”) comprising $390,000 of secured debt facilities (the “2020 Debt Facilities”) with Nordea Bank Abp, New York Branch (“Nordea”), ABN AMRO Capital USA LLC (“ABN”), Crédit Agricole Corporate & Investment Bank, DNB Capital LLC and Skandinaviska Enskilda Banken AB (PUBL), or their respective affiliates, as mandated lead arrangers and bookrunners, and BNP Paribas and Danish Ship Finance A/S, as lead arrangers. Nordea is acting as administrative agent, collateral agent and security trustee under the Credit Agreement, and ABN is acting as sustainability coordinator. The 2020 Debt Facilities consist of (i) a five-year senior secured term loan facility in an aggregate principal amount of $300,000 (the “Core Term Loan Facility”); (ii) a five-year revolving credit facility in an aggregate principal amount of $40,000 (the “Core Revolving Facility”); and (iii) a senior secured term loan credit facility with a maturity date of June 30, 2022 in an aggregate principal amount of $50,000 (the “Transition Term Loan Facility”). The Core Term Loan Facility contains an uncommitted accordion feature whereby, for a period of up to 18 months following the closing date, the amount of the loan thereunder may be increased up to an additional $100,000 for the acquisition of Additional Vessels, subject to certain conditions. The Core Term Loan Facility and the Core Revolving Facility are secured by a first lien on 14 of the Company’s vessels built in 2009 or later (the “Core Collateral Vessels”), along with their earnings, insurances and certain other assets, while the Transition Term Loan Facility is secured by a first lien on 12 of the Company’s vessels built in 2006 or earlier (the “Transition Collateral Vessels”), along with their earnings, insurances and certain other assets. In addition, both facilities are secured by liens on the collateral relating to the other facilities, as well as certain additional assets of the Borrower. On January 28, 2020, the available amounts under the Core Term Loan Facility and the Transition Term Loan Facility were drawn in full, and $20,000 of the $40,000 available under the Core Revolving Facility was also drawn. Those proceeds, together with available cash, were used to (i) repay the $331,519 outstanding principal balance under the 2017 Debt Facilities, (ii) repay the $23,248 outstanding principal balance under the ABN Term Loan Facility, (iii) repurchase the $27,931 outstanding principal amount of the Company’s 10.75% Subordinated Notes due 2023 On March 4, 2020, the $20,000 outstanding balance under the Core Revolving Facility was repaid in full using available cash on hand. On March 12, 2020, the Company entered into a Side Letter agreement with the 2020 Debt Facilities lenders relating to the mortgage for the Seaways Mulan, a 2002-built VLCC that has been detained by the Indonesian authorities since February 8, 2020 pending the completion of their investigation of a claim that the vessel had illegally anchored in Indonesian territorial waters while awaiting orders for its next voyage. The mortgage requires the vessel owner to secure the release of a vessel that has been arrested or taken into custody under color of legal authority within 30 days of the initial detention of such vessel and grants the vessel owner an additional 30 days thereafter to cure the non-release of the vessel before being considered to be in default under the terms of the Credit Agreement. Although a process to obtain release of the vessel was and remains ongoing, the vessel had been in the custody of the Indonesian authorities for more than 30 days. If the vessel’s detention was not cured or waived by April 8, 2020, the Company would be in default under the terms of the Credit Agreement. Accordingly, pursuant to the terms of the Side Letter agreement, the Lenders granted the Company an additional 60 days from the initial arrest date to secure the release of the Seaways Mulan from arrest by the Indonesian authorities by May 8, 2020 after which the Company would have an additional 30 days (i.e., through June 7, 2020) to cure the non-release of the vessel before being considered to be in default under the terms of the Credit Agreement. If the release of the Seaways Mulan does not occur by June 7, 2020, Debt Covenants The Company was in compliance with the financial covenants under all of its debt facilities as of March 31, 2020. The 2020 Debt Facilities contain customary representations, warranties, restrictions and covenants applicable to the Company, the Borrower and the subsidiary guarantors (and in certain cases, other subsidiaries), including financial covenants that require the Company (i) to maintain a minimum liquidity level of the greater of $50,000 and 5% of the Company’s Consolidated Indebtedness; (ii) to ensure the Company’s and its consolidated subsidiaries’ Maximum Leverage Ratio will not exceed 0.60 to 1.00 at any time; (iii) to ensure that Current Assets exceeds Current Liabilities (which is defined to exclude the current potion of Consolidated Indebtedness); (iv) to ensure the aggregate Fair Market Value of the Core Collateral Vessels will not be less than 135% of the aggregate outstanding principal amount of the Core Term Loans and Revolving Loans and the aggregate Fair Market Value of the Transition Collateral Vessels will not be less than 175% of the aggregate outstanding principal amount of the Transition Term Loans, respectively; and (v) to ensure the ratio of Consolidated EBITDA to Consolidated Cash Interest Expense will not be lower than (A) 2.25:1.00, for the period ending on June 30, 2020 and (B) 2.50:1.00 at all times thereafter. 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, Seaways 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; (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, 2020, 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, 2021, then any such remedy and the form of the same shall be considered and determined by the lenders under the Sinosure Credit Facility in their absolute discretion . The 8.5% Senior Notes 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’s credit facilities also require it 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. Interest Expense Total interest expense, including amortization of issuance and deferred financing costs (for additional information related to deferred financing costs see Note 2, “Significant Accounting Policies”), commitment, administrative and other fees for all of the Company’s debt facilities for the three months ended March 31, 2020 and 2019 was $11,852 and $17,226, respectively. Interest paid for the Company’s debt facilities for the three months ended March 31, 2020 and 2019 was $7,155 and $11,172 respectively. Debt Modifications, Repurchases and Extinguishments During the three months ended March 31, 2020, the Company incurred debt issuance costs aggregating $7,329 in connection with 2020 Debt Facilities. Issuance costs paid to lenders and third-party fees associated with the Core Revolving Facility aggregating $752 were capitalized as deferred finance charges. Issuance costs paid to lenders and third-party fees associated with Core Term Loan Facility and Transition Term Loan Facility totaled $6,577, of which $6,345 were capitalized as deferred finance charges and $232 associated with third-party fees paid that were deemed to be a modification were expensed and are included in third-party debt modification fees in the accompanying condensed consolidated statement of operations. Issuance costs incurred and capitalized as deferred finance charges have been treated as a reduction of debt proceeds. In addition, aggregate net losses on the repurchases and extinguishment of the Company’s debt facilities totaling $13,493 were recognized during the three months ended March 31, 2020 and are included in other income/(expense) in the accompanying condensed consolidated statement of operations. The net loss reflects a prepayment fee of $992 related to 10.75% Subordinated Notes and a write-off of $12,501 of unamortized original issue discount and deferred financing costs associated with the payoff of the 2017 Term Loan, ABN Term Loan Facility, and the 10.75% Subordinated Notes, which were treated as extinguishments. |
TAXES
TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Taxes [Abstract] | |
TAXES | Note 10 — Taxes: The Company derives substantially all of its gross income from the use and operation of vessels in international commerce. The Company’s entities that own and operate vessels are primarily domiciled in the Marshall Islands, which do not impose income tax on shipping operations. The Company also has or had subsidiaries in various jurisdictions that perform administrative, commercial or technical management functions. These subsidiaries are subject to income tax based on the services performed in countries in which their offices are located; current and deferred income taxes are recorded accordingly. A substantial portion of income earned by the Company is not subject to income tax. With respect to subsidiaries not subject to income tax in their respective countries of incorporation, no deferred taxes are provided for the temporary differences in the bases of the underlying assets and liabilities for tax and accounting purposes. As of March 31, 2020, the Company believes it will qualify for an exemption from U.S. federal income taxes under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations for the 2020 calendar year, so long as less than 50 percent of the total value of the Company’s stock is held by one or more shareholders who own 5% or more of the Company’s stock for more than half of the days of 2020. The Marshall Islands impose tonnage taxes, which are assessed on the tonnage of certain of the Company’s vessels. These tonnage taxes are included in vessel expenses in the accompanying condensed consolidated statements of operations. |
CAPITAL STOCK AND STOCK COMPENS
CAPITAL STOCK AND STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
CAPITAL STOCK AND STOCK COMPENSATION [Abstract] | |
CAPITAL STOCK AND STOCK COMPENSATION | Note 11 — Capital Stock and Stock Compensation: The Company accounts for stock-based compensation expense in accordance with the fair value method required by ASC 718, Compensation – Stock Compensation . Such fair value method requires share-based payment transactions to be measured according to the fair value of the equity instruments issued. There were no stock-based compensation awards granted during the three months ended March 31, 2020. Dividends On February 26, 2020, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per share. On March 30, 2020, the Company paid dividends totaling $1,729 to stockholders of record as of March 17, 2020. Share Repurchases In connection with the settlement of vested restricted stock units, the Company repurchased 33,210 and 8,746 shares of common stock during the three months ended March 31, 2020 and 2019, respectively, at an average cost of $21.23 and $17.13, respectively, per share (based on the market prices on the dates of vesting) from certain members of management to cover withholding taxes. During April 2020, an additional 4,198 shares of common stock were repurchased from certain employees and members of management at an average cost of $22.70 per share in relation to restricted stock units that vested in March 2020. On March 5, 2019, the Company’s Board of Directors approved a resolution reauthorizing the Company’s $30,000 stock repurchase program for another 24-month period ending March 5, 2021, 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 three months ended March 31, 2020, the Company repurchased and retired 490,592 shares of its common stock in open-market purchases at an average price of $20.41 per share, for a total cost of $10,012. No shares were acquired under repurchase programs during the three months ended March 31, 2019. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | Note 12 — Accumulated Other Comprehensive Loss: The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: March 31, December 31, 2020 2019 Unrealized losses on derivative instruments $ (26,717) $ (11,732) Items not yet recognized as a component of net periodic benefit cost (pension plans) (8,245) (8,838) $ (34,962) $ (20,570) The changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2020 and 2019 follow: Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Total Balance as of December 31, 2019 $ (11,732) $ (8,838) $ (20,570) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (16,121) 593 (15,528) Amounts reclassified from accumulated other comprehensive loss 1,136 - 1,136 Balance as of March 31, 2020 $ (26,717) $ (8,245) $ (34,962) Balance as of December 31, 2018 $ (21,520) $ (8,409) $ (29,929) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (4,999) (199) (5,198) Amounts reclassified from accumulated other comprehensive loss 1,821 - 1,821 Balance as of March 31, 2019 $ (24,698) $ (8,608) $ (33,306) Amounts reclassified out of each component of accumulated other comprehensive loss follow: Three Months Ended March 31, 2020 2019 Statement of Operations Reclassifications of losses on cash flow hedges: Interest rate swaps entered into by the Company's equity method Equity in income of joint venture investees $ 160 $ 1,640 affiliated companies Interest rate swaps entered into by the Company's subsidiaries 895 140 Interest expense Interest rate cap entered into by the Company's subsidiaries - 41 Interest expense Reclassifications of losses on derivatives subsequent to discontinuation of hedge accounting: Interest rate collar entered into by the Company's subsidiaries 81 - Interest expense $ 1,136 $ 1,821 Total before and after tax At March 31, 2020, the Company expects that it will reclassify $9,816 (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 swaps held by the Company . See Note 8, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” for additional disclosures relating to derivative instruments. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE [Abstract] | |
REVENUE | Note 13 — Revenue: Revenue Recognition The majority of the Company's contracts for pool revenues, time and bareboat charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Company's contracts with pools are cancellable with up to 90 days' notice. As of March 31, 2020, the Company is a party to time charter out contracts with customers on six Panamaxes and two VLCCs with expiry dates ranging from May 2020 to March 2023. Subsequent to March 31, 2020, the Company entered into agreements to charter out two VLCCs each for a period of seven months, commencing in May 2020. The Company's contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments are recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) are recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. Lightering services provided by the Company's Crude Tanker Lightering Business, voyage charter contracts that do not meet the definition of a lease and profit share agreements are accounted for as service revenues under ASC 606. 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. In March 2020, the Company entered into a one-year profit share agreement with a third party entitling the Company to participate in 25% of the profits and losses generated from the commercial operations of a chartered-in 2007-built MR. The vessel will be commercially managed on voyage charters by the Clean Product Tankers Alliance Pool during the duration of the agreement. Earnings from this agreement are included in voyage charter revenues and the Company’s share of charter hire expenses is included in charter hire expenses in the accompanying condensed consolidated statement of operations. The following table presents the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three months ended March 31, 2020 and 2019: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2020: Revenues from leases Pool revenues $ 70,250 $ 30,959 $ - $ 101,209 Time and bareboat charter revenues 8,604 - - 8,604 Voyage charter revenues from non-variable lease payments 7,353 701 - 8,054 Voyage charter revenues from variable lease payments 1,120 - - 1,120 Revenues from services Voyage charter revenues Lightering services 6,350 - - 6,350 Total shipping revenues $ 93,677 $ 31,660 $ - $ 125,337 Three months ended March 31, 2019: Revenues from leases Pool revenues $ 46,172 $ 21,465 $ - $ 67,637 Time and bareboat charter revenues 5,520 - - 5,520 Voyage charter revenues from non-variable lease payments 7,272 24 - 7,296 Voyage charter revenues from variable lease payments 348 - - 348 Revenues from services Voyage charter revenues Lightering services 21,073 - - 21,073 Total shipping revenues $ 80,385 $ 21,489 $ - $ 101,874 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, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below. Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2020 $ 2,727 $ - $ - Closing balance as of March 31, 2020 1,921 547 - We receive payments from customers based on the distribution schedule 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. Positive/(negative) adjustments in revenues from performance obligations satisfied in previous periods recognized during the three months ended March 31, 2020 and 2019 were $ 15 and ($48 3) , respectively. These adjustments to revenue were related to changes in estimates of performance obligations related to voyage charters. Costs to Obtain or Fulfill a Contract As of March 31, 2020, there were no unamortized deferred costs of obtaining or fulfilling a contract. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | Note 14 — Leases: As permitted under ASC 842, the Company has elected not to apply the provisions of ASC 842 to short term leases, which include: (i) tanker vessels chartered-in where the duration of the charter was one year or less at inception; (ii) workboats employed in the Crude Tankers Lightering business which are cancellable upon 180 days' notice; and (iii) short term leases of office and other space. Contracts under which the Company is a Lessee The Company currently has two major categories of leases - chartered-in vessels and leased office and other space. The expenses recognized during the three months ended March 31, 2020 and 2019 for the lease component of these leases are as follows: Three Months Ended March 31, 2020 2019 Operating lease cost Vessel assets Charter hire expenses $ 3,728 $ 3,657 Office and other space General and administrative 249 249 Voyage expenses 42 42 Short-term lease cost Vessel assets (1) Charter hire expenses 1,800 2,227 Office and other space General and administrative 29 29 Voyage expenses - 26 Vessel expenses - 5 Total lease cost $ 5,848 $ 6,235 (1) Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $ 72 and $6,628 for the three months ended March 31, 2020 and 2019, respectively, including both lease and non-lease components. Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 4,019 $ 3,873 Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 28,940 $ 33,718 Current portion of operating lease liabilities $ (10,668) $ (12,958) Long-term operating lease liabilities (15,718) (17,953) Total operating lease liabilities $ (26,386) $ (30,911) Weighted average remaining lease term - operating leases 3.25 years 3.24 years Weighted average discount rate - operating leases 1. Charters-in of vessel assets: During March 2020, two 2007-built MRs time chartered-in by the Company were arrested by a third party due to a legal dispute between said party and the ultimate owners of the vessels. As a result of the arrests, the entity that chartered these vessels to INSW was no longer able to perform its obligations under the time charter agreements and effectively terminated the time charter agreements. Accordingly, the Company derecognized lease liabilities and right of use assets totaling $1,000, respectively, associated with these agreements. As of March 31, 2020, INSW had commitments to charter in one MR, two Aframaxes, and one LR1 and one workboat employed in the Crude Tankers Lightering business. 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 others are time charters with expiry dates ranging from July 2020 to August 2021, are accounted for as operating leases. Some of the Company’s time charters contain renewal options to extend the leases for six to 12 months. The Company’s bareboat charters contain purchase options commencing in the first quarter of 2021. As of March 31, 2020, the Company has determined that the purchase options are not yet reasonably certain of being exercised. Lease liabilities related to time charters-in vessels exclude estimated days that the vessels will not be available for employment due to drydock because the Company does not pay charter hire when time chartered-in vessels are not available for its use. Payments of lease liabilities and related number of operating days under these operating leases as of March 31, 2020 are as follows: Bareboat Charters-in: At March 31, 2020 Amount Operating Days 2020 $ 4,730 550 2021 6,278 730 2022 6,278 730 2023 4,532 556 Total lease payments 21,818 2,566 less imputed interest (2,569) Total operating lease liabilities $ 19,249 Time Charters-in: At March 31, 2020 Amount Operating Days 2020 $ 3,111 643 2021 2,170 408 Total lease payments (lease component only) 5,281 1,051 less imputed interest (215) Total operating lease liabilities $ 5,066 2. Office and other space: The Company has operating leases for office and lightering workboat dock space. These leases have expiry dates ranging from August 2021 to December 2024. The lease for the workboat dock space contains renewal options executable by the Company for periods through December 2027. We have determined that the options through December 2024 are reasonably certain to be executed by the Company, and accordingly are included in the lease liability and right of use asset calculations for such lease. Payments of lease liabilities for office and other space as of March 31, 2020 are as follows: Office and other space: At March 31, 2020 Amount 2020 $ 2021 2022 2023 2024 Total lease payments 2,241 less imputed interest (170) Total operating lease liabilities $ 2,071 Contracts under which the Company is a Lessor See Note 13, “Revenue,” for discussion on the Company’s revenues from operating leases accounted for under the lease guidance (ASC 842). The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for six Panamaxes and two VLCCs and the related revenue days as of March 31, 2020 are as follows: Time Charters-out: At March 31, 2020 Amount Revenue Days 2020 $ 33,718 1,015 2021 21,354 458 2022 16,425 365 2023 3,195 71 Future minimum revenues $ 74,692 1,909 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. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | Note 15 — 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 March 31, 2020. The next deficit valuation is as of March 31, 2021. 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. As the amount of any such assessment cannot be reasonably estimated, no reserves have been recorded in INSW’s consolidated financial statements as of March 31, 2020. The next deficit valuation is as of March 31, 2020. Galveston Accident 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 panel issued its decision in August 2019, providing for the recovery of a portion of the indemnity payment and also for associated costs. Any eventual recovery will be for the benefit of the subsidiary’s insurers. Spin-Off Related Agreements On November 30, 2016, INSW was spun off from OSG as a separate publicly traded company. In connection with the spin-off, INSW and OSG entered into several agreements, including a separation and distribution agreement, an employee matters agreement and a transition services agreement. While most of the obligations under those agreements were subsequently fulfilled, certain provisions (including in particular mutual indemnification provisions under the separation and distribution agreement and the employee matters agreement) continue in force. 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. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cash, cash equivalents and Restricted cash | Cash, cash equivalents and Restricted cash — Interest-bearing deposits that are highly liquid investments and have a maturity of three months or less when purchased are included in cash and cash equivalents. Restricted cash of $17,029 as of March 31, 2020 represents legally restricted cash relating to the Company's Sinosure Credit Facility (See Note 9, “Debt”). Restricted cash of $60,572 as of December 31, 2019 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 . Such restricted cash reserves are included in the non-current assets section of the condensed consolidated balance sheets. |
Concentration of Credit Risk | Concentration of Credit Risk — We are subject to concentrations of credit risk principally from cash and cash equivalents and voyage receivables due from charterers and pools in which the Company participates. We manage our credit risk exposure through assessment of our counterparty creditworthiness. Cash equivalents consist primarily of time deposits, and money market funds. We place our cash and cash equivalents in what we believe to be credit-worthy financial institutions. Our money market funds are carried at fair market value. Voyage receivables consist of (i) operating lease receivables associated with revenues from leases accounted for under ASC 842, Leases (ASC 842), which are primarily unbilled amounts due from pools; and (ii) billed and unbilled non-operating lease receivables associated with revenues from services accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606), which are due within one year. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We maintain allowances for estimated credit losses and these losses have generally been within our expectations. With respect to non-operating lease receivables, the Company recognizes as an allowance its estimate of expected credit losses in accordance with ASC 326, Financial Instruments – Credit losses (ASC 326) , based on troubled accounts, historical experience, other currently available evidence, and reasonable and supportable forecasts about the future. The Company makes significant judgements and assumptions to estimate its expected losses. We make judgments about the creditworthiness of customers based on ongoing credit evaluations including analysis of the counterparty’s established credit rating or assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available, country and political risk of the counterparty, and their business strategy. We manage our non-operating lease receivable portfolios using delinquency as a key credit quality indicator. The Company performs the following steps in estimating expected losses: (i) gather historical losses over 5 years; (ii) assume outstand ing billed amounts over 180 days as additional expected losses; and (iii) make adjustments to the expected losses to reflect future economic conditions by comparing credit default swap rates of significant customers over time. In addition, the Company performs individual assessments for customers that do not share risk characteristics with other customers (for example a customer under bankruptcy or a customer with known disputes or collectability issues). The allowance for credit losses is recognized as an allowance or contra-asset and reflects our best estimate of probable losses inherent in the voyage receivables balance. Provisions for credit losses associated with voyage receivables are included in provision for credit losses on the condensed consolidated statements of operations. Activity for allowance for credit losses is summarized as follows: Allowance for Credit Losses - Voyage Receivables Balance at January 1, 2018 $ - Provision for expected credit losses - Balance at December 31, 2018 - Provision for expected credit losses 1,245 Balance at December 31, 2019 1,245 Provision for expected credit losses 62 Write-offs charged against the allowance (8) Balance at March 31, 2020 $ 1,299 We are also exposed to credit losses from off-balance sheet exposures related to guarantees of joint venture debt. See Note 6, “Equity Method Investments,” for more information on these off-balance sheet exposures. During the three months ended March 31, 2020 and 2019, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 94% and 88% of consolidated voyage receivables at March 31, 2020 and December 31, 2019, respectively. |
Deferred finance charges | Deferred finance charges — Finance charges, excluding original issue discount, incurred in the arrangement and/or amendments resulting in the modification of debt are deferred and amortized to interest expense on either an effective interest method or straight-line basis over the term of the related debt. Unamortized deferred finance charges of $980 relating to the Core Revolving Facility (See Note 9, “Debt”) as of March 31, 2020 and $274 relating to the 2017 Revolver Facility as of December 31, 2019, respectively, are included in other assets in the condensed consolidated balance sheets. Unamortized deferred financing charges of $9,216 and $16,309 relating to the Company’s outstanding debt facilities as of March 31, 2020 and December 31, 2019, respectively, are included in long-term debt in the condensed consolidated balance sheets. Interest expense relating to the amortization of deferred financing charges amounted to $851 and $1,230 for the three months ended March 31, 2020 and 2019, respectively. |
Recently adopted / issued accounting standards | Recently Adopted 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. 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. In addition, for guarantees in the scope of ASC 326, entities must measure the expected credit losses arising from the contingent aspect under the CECL model in addition to recognizing the liability for the noncontingent aspect of the guarantee under ASC 460, Guarantees . A standalone liability representing the amount that an entity expects to pay on the guarantee related to expected credit losses is required for the contingent aspect. Financial assets measured at fair value through net income are scoped out of CECL. 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 leasing standard, ASC 842. The ASU requires a cumulative-effect adjustment to the retained earnings as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not to be adjusted. The adoption of ASC 326 on January 1, 2020 did not have a material impact on our consolidated financial statements since m ost of our voyage receivables are operating lease receivables, which are not in the scope of ASC 326. The Company determined that the cumulative-effect adjustment as of January 1, 2020 to accumulated deficit attributable to (i) an increase in our allowance for doubtful accounts associated with revenues from services and (ii) the recognition of guarantee liabilities associated with the contingent aspect of our current financial guarantee obligations, was immaterial. 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 is effective for the first interim reporting period within annual periods beginning after December 15, 2019. The adoption of this accounting policy had no impact on the Company’s consolidated financial statements because we did not have Level 3 fair value measurements during the three months ended March 31, 2020. Recently Issued Accounting Standards — In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848), which provides relief for companies preparing for discontinuation of interest rates such as LIBOR. A contract modification is eligible to apply the optional relief to account for the modifications as a continuation of the existing contracts without additional analysis and consider embedded features to be clearly and closely related to the host contract without reassessment, if all of the following criteria are met: (i) contract references a rate that will be discontinued; (ii) modified terms directly replace (or have potential to replace) this reference rate; and (iii) changes to any other terms that change (or have potential to change) amount and timing of cash flows must be related to replacement of reference rate. In addition, this guidance provides relief from certain hedge accounting requirements. Hedge accounting may continue uninterrupted when critical terms change due to reference rate reform. For cash flow hedges, entities can (i) disregard potential discontinuation of a referenced interest rate when assessing whether a hedged forecasted interest payment is probable; (ii) continue hedge accounting upon a change in the hedged risk as long as the hedge is still highly effective; (iii) assess effectiveness of the hedge relationship in ways that essentially disregards a potential mismatch in the variable rate indexes between the hedging instrument and the hedged item; and (iv) disregard the requirement that individual hedged transactions must share the same risk exposure for hedges of portfolios of forecasted transactions that reference a rate affected by reference rate reform. Relief provided by this ASU is optional and expires December 31, 2022. T he Company has determined that its primary exposure to LIBOR is in relation to its floating rate debt facilities and the interest rate derivatives to which it is a party. Through a review of the Company’s debt agreements and interest rate derivative contracts the Company believes there are adequate provisions within such agreements that provide guidance on how the Company and its counterparties under such agreements will address what happens when LIBOR is no longer available. 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. |
CONTINGENCIES (Policy)
CONTINGENCIES (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
CONTINGENCIES [Abstract] | |
Legal costs | INSW’s policy for recording legal costs related to contingencies is to expense such legal costs as incurred. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Activity for allowance for credit losses | Allowance for Credit Losses - Voyage Receivables Balance at January 1, 2018 $ - Provision for expected credit losses - Balance at December 31, 2018 - Provision for expected credit losses 1,245 Balance at December 31, 2019 1,245 Provision for expected credit losses 62 Write-offs charged against the allowance (8) Balance at March 31, 2020 $ 1,299 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER COMMON SHARE [Abstract] | |
Components of Calculation of Earnings Per Share | The components of the calculation of basic earnings per share and diluted earnings per share are as follows: Three Months Ended March 31, 2020 2019 Net income $ 33,019 $ 10,897 Weighted average common shares outstanding: Basic 29,154,639 29,181,233 Diluted 29,348,393 29,223,187 Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, 2020 2019 Net income allocated to: Common Stockholders $ 32,961 $ 10,879 Participating securities 58 18 $ 33,019 $ 10,897 |
BUSINESS AND SEGMENT REPORTING
BUSINESS AND SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS AND SEGMENT REPORTING [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company’s reportable segments as of and for the three months ended March 31, 2020 and 2019 follows: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2020: Shipping revenues $ 93,677 $ 31,660 $ - $ 125,337 Time charter equivalent revenues 88,854 30,877 - 119,731 Depreciation and amortization 14,245 3,998 24 18,267 Gain on disposal of vessels and other property (2,804) - - (2,804) Adjusted income/(loss) from vessel operations 43,949 14,353 (29) 58,273 Equity in income of affiliated companies 5,111 - - 5,111 Investments in and advances to affiliated companies at March 31, 2020 143,403 7,997 - 151,400 Adjusted total assets at March 31, 2020 1,292,689 332,236 - 1,624,925 Expenditures for vessels and vessel improvements 11,301 17,613 - 28,914 Payments for drydockings 7,205 360 - 7,565 Three months ended March 31, 2019: Shipping revenues $ 80,385 $ 21,489 $ - $ 101,874 Time charter equivalent revenues 72,586 21,443 - 94,029 Depreciation and amortization 14,477 4,418 34 18,929 Loss/(gain) on disposal of vessels and other property 17 (65) - (48) Adjusted income/(loss) from vessel operations 23,362 4,058 (43) 27,377 Equity in income of affiliated companies 4,770 - 3,300 8,070 Investments in and advances to affiliated companies at March 31, 2019 139,832 12,703 114,983 267,518 Adjusted total assets at March 31, 2019 1,306,866 326,696 114,983 1,748,545 Expenditures for vessels and vessel improvements 2,955 7 - 2,962 Payments for drydockings 4,231 207 - 4,438 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, 2020 2019 Time charter equivalent revenues $ 119,731 $ Add: Voyage expenses 5,606 Shipping revenues $ 125,337 $ |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliations of adjusted income from vessel operations of the segments to income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, 2020 2019 Total adjusted income from vessel operations of all segments $ 58,273 $ 27,377 General and administrative expenses (7,434) (6,773) Provision for credit losses, net (62) (1,298) Third-party debt modification fees (232) (30) Gain on disposal of vessels and other property 2,804 48 Consolidated income from vessel operations 53,349 19,324 Equity in income of affiliated companies 5,111 8,070 Other (expense)/income (13,432) 1,036 Interest expense (12,009) (17,533) Income before income taxes $ 33,019 $ 10,897 |
Reconciliation of Assets from Segment to Consolidated | Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: March 31, 2020 March 31, 2019 Total assets of all segments $ 1,624,925 $ 1,748,545 Corporate unrestricted cash and cash equivalents 93,298 79,537 Restricted cash 17,029 57,618 Other unallocated amounts 5,476 5,370 Consolidated total assets $ 1,740,728 $ 1,891,070 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
Results of Operations of Equity Method Investments | Three Months Ended March 31, 2020 2019 Shipping revenues $ 26,024 $ 52,315 Ship operating expenses (14,240) (26,369) Income from vessel operations 11,784 25,946 Other income 40 428 Interest expense (1,874) (10,276) Income tax provision (923) (855) Net income $ 9,027 $ 15,243 |
VARIABLE INTEREST ENTITIES (V_2
VARIABLE INTEREST ENTITIES (VIEs)) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
VARIABLE INTEREST ENTITIES (VIEs) [Abstract] | |
Schedule of Variable Interest Entities | Condensed Investments in Affiliated Companies $ 142,809 |
Schedule of Variable Interest Entities Liability in Condensed Consolidated Balance Sheet to Maximum Exposure to Loss | Condensed Maximum Exposure to Other Liabilities $ 192 $ |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: Fair Value Level 1 Level 2 March 31, 2020: Cash and cash equivalents (1) $ 110,327 $ 110,327 $ - Core Term Loan Facility (300,000) - (300,000) Transition Term Loan Facility (45,000) - (45,000) Sinosure Credit Facility (263,811) - (263,811) 8.5% Senior Notes (23,970) (23,970) - December 31, 2019: Cash and cash equivalents (1) $ $ 150,243 $ - 2017 Term Loan Facility - (333,177) ABN Term Loan Facility - (23,248) Sinosure Credit Facility - (269,705) 8.5% Senior Notes (26,120) (26,120) - 10.75% Subordinated Notes - (32,649) (1) Includes non-current restricted cash of $17,029 and $60,572 at March 31, 2020 and December 31, 2019, respectively. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents information with respect to the fair values of derivatives reflected in the March 31, 2020 and December 31, 2019 balance sheets on a gross basis by transaction: Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Amount Location Amount March 31, 2020: Derivatives designated as hedging instruments: Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (7,614) Long-term portion Long-term derivative asset - Long-term derivative liability (18,258) Total derivatives designated as hedging instruments $ - $ (25,872) December 31, 2019: Derivatives not designated as hedging instruments: Interest rate collar: Current portion Current portion of derivative asset $ - Current portion of derivative liability $ (1,230) Long-term portion Long-term derivative asset - Long-term derivative liability (577) Derivatives designated as hedging instruments: Interest rate swaps: Current portion Current portion of derivative asset - Current portion of derivative liability (2,384) Long-term portion Long-term derivative asset - Long-term derivative liability (5,968) Total derivatives designated as hedging instruments $ - $ (10,159) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Loss | The effect of cash flow hedging relationships recognized in other comprehensive loss excluding amounts reclassified from accumulated other comprehensive loss, including hedges of equity method investees, for the three months ended March 31, 2020 and 2019 follows: Three Months Ended March 31, 2020 2019 Derivatives designated as hedging instruments: Interest rate swaps $ (16,121) $ (4,091) Interest rate cap - (908) Total other comprehensive loss $ (16,121) $ (4,999) The effect of cash flow hedging relationships on the condensed consolidated statement of operations is presented excluding hedges of equity method investees. The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three months ended March 31, 2020 and 2019 follows: Three Months Ended March 31, 2020 2019 Derivatives designated as hedging instruments: Interest rate swaps $ 895 $ 140 Interest rate cap - 41 Derivatives not designated as hedging instruments: Interest rate collar 1,352 - Total interest expense $ 2,247 $ 181 |
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring 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 1 Level 2 Assets/(Liabilities) at March 31, 2020: Derivative Assets (interest rate swaps) $ - $ - $ - (1) Derivative Liabilities (interest rate swaps) (25,872) - (25,872) (1) Assets/(Liabilities) at December 31, 2019: Derivative Assets (interest rate swaps and collar) $ - $ - $ - (1) Derivative Liabilities (interest rate swaps and collar) (10,159) - (10,159) (1) For interest rate caps, swaps and collars, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DEBT [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consists of the following: March 31, December 31, 2020 2019 Core Term Loan Facility, due 2025, net of unamortized deferred finance costs of $5,191 $ 294,809 $ - Transition Term Loan Facility, due 2022, net of unamortized deferred finance costs of $787 44,213 - Sinosure Credit Facility, due 2027-2028, net of unamortized deferred finance costs of $2,166 and $2,262 261,645 267,443 8.5% Senior Notes, due 2023, net of unamortized deferred finance costs of $1,073 and $1,142 23,927 23,858 2017 Term Loan Facility, due 2022, net of unamortized discount and deferred finance costs of $11,211 - 320,309 ABN Term Loan Facility, due 2023, net of unamortized deferred finance costs of $610 - 22,638 10.75% Subordinated Notes, due 2023, net of unamortized deferred finance costs of $1,084 - 26,847 624,594 661,095 Less current portion (81,483) (70,350) Long-term portion $ 543,111 $ 590,745 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: March 31, December 31, 2020 2019 Unrealized losses on derivative instruments $ (26,717) $ (11,732) Items not yet recognized as a component of net periodic benefit cost (pension plans) (8,245) (8,838) $ (34,962) $ (20,570) The changes in the balances of each component of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2020 and 2019 follow: Unrealized losses on cash flow hedges Items not yet recognized as a component of net periodic benefit cost (pension plans) Total Balance as of December 31, 2019 $ (11,732) $ (8,838) $ (20,570) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (16,121) 593 (15,528) Amounts reclassified from accumulated other comprehensive loss 1,136 - 1,136 Balance as of March 31, 2020 $ (26,717) $ (8,245) $ (34,962) Balance as of December 31, 2018 $ (21,520) $ (8,409) $ (29,929) Current period change, excluding amounts reclassified from accumulated other comprehensive loss (4,999) (199) (5,198) Amounts reclassified from accumulated other comprehensive loss 1,821 - 1,821 Balance as of March 31, 2019 $ (24,698) $ (8,608) $ (33,306) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified out of each component of accumulated other comprehensive loss follow: Three Months Ended March 31, 2020 2019 Statement of Operations Reclassifications of losses on cash flow hedges: Interest rate swaps entered into by the Company's equity method Equity in income of joint venture investees $ 160 $ 1,640 affiliated companies Interest rate swaps entered into by the Company's subsidiaries 895 140 Interest expense Interest rate cap entered into by the Company's subsidiaries - 41 Interest expense Reclassifications of losses on derivatives subsequent to discontinuation of hedge accounting: Interest rate collar entered into by the Company's subsidiaries 81 - Interest expense $ 1,136 $ 1,821 Total before and after tax |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE [Abstract] | |
Schedule of Disaggregated Revenue | The following table presents the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three months ended March 31, 2020 and 2019: Crude Product Tankers Carriers Other Totals Three months ended March 31, 2020: Revenues from leases Pool revenues $ 70,250 $ 30,959 $ - $ 101,209 Time and bareboat charter revenues 8,604 - - 8,604 Voyage charter revenues from non-variable lease payments 7,353 701 - 8,054 Voyage charter revenues from variable lease payments 1,120 - - 1,120 Revenues from services Voyage charter revenues Lightering services 6,350 - - 6,350 Total shipping revenues $ 93,677 $ 31,660 $ - $ 125,337 Three months ended March 31, 2019: Revenues from leases Pool revenues $ 46,172 $ 21,465 $ - $ 67,637 Time and bareboat charter revenues 5,520 - - 5,520 Voyage charter revenues from non-variable lease payments 7,272 24 - 7,296 Voyage charter revenues from variable lease payments 348 - - 348 Revenues from services Voyage charter revenues Lightering services 21,073 - - 21,073 Total shipping revenues $ 80,385 $ 21,489 $ - $ 101,874 |
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, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below. Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2020 $ 2,727 $ - $ - Closing balance as of March 31, 2020 1,921 547 - |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lease [Abstract] | |
Schedule of lease cost | The Company currently has two major categories of leases - chartered-in vessels and leased office and other space. The expenses recognized during the three months ended March 31, 2020 and 2019 for the lease component of these leases are as follows: Three Months Ended March 31, 2020 2019 Operating lease cost Vessel assets Charter hire expenses $ 3,728 $ 3,657 Office and other space General and administrative 249 249 Voyage expenses 42 42 Short-term lease cost Vessel assets (1) Charter hire expenses 1,800 2,227 Office and other space General and administrative 29 29 Voyage expenses - 26 Vessel expenses - 5 Total lease cost $ 5,848 $ 6,235 (1) Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $ 72 and $6,628 for the three months ended March 31, 2020 and 2019, respectively, including both lease and non-lease components. |
Supplemental lease information | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 4,019 $ 3,873 Supplemental balance sheet information related to leases was as follows: March 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 28,940 $ 33,718 Current portion of operating lease liabilities $ (10,668) $ (12,958) Long-term operating lease liabilities (15,718) (17,953) Total operating lease liabilities $ (26,386) $ (30,911) Weighted average remaining lease term - operating leases 3.25 years 3.24 years Weighted average discount rate - operating leases |
Schedule of lease maturity receivables | The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for six Panamaxes and two VLCCs and the related revenue days as of March 31, 2020 are as follows: Time Charters-out: At March 31, 2020 Amount Revenue Days 2020 $ 33,718 1,015 2021 21,354 458 2022 16,425 365 2023 3,195 71 Future minimum revenues $ 74,692 1,909 |
Office Space And Lightering Workboat Dock Space [Member] | |
Lease [Abstract] | |
Schedule of lease maturity payments | Payments of lease liabilities for office and other space as of March 31, 2020 are as follows: Office and other space: At March 31, 2020 Amount 2020 $ 2021 2022 2023 2024 Total lease payments 2,241 less imputed interest (170) Total operating lease liabilities $ 2,071 |
Bareboat Charters-In [Member] | |
Lease [Abstract] | |
Schedule of lease maturity payments | Payments of lease liabilities and related number of operating days under these operating leases as of March 31, 2020 are as follows: Bareboat Charters-in: At March 31, 2020 Amount Operating Days 2020 $ 4,730 550 2021 6,278 730 2022 6,278 730 2023 4,532 556 Total lease payments 21,818 2,566 less imputed interest (2,569) Total operating lease liabilities $ 19,249 |
Time Charters-In [Member] | |
Lease [Abstract] | |
Schedule of lease maturity payments | Time Charters-in: At March 31, 2020 Amount Operating Days 2020 $ 3,111 643 2021 2,170 408 Total lease payments (lease component only) 5,281 1,051 less imputed interest (215) Total operating lease liabilities $ 5,066 |
BASIS OF PRESENTATION (Narrativ
BASIS OF PRESENTATION (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segmentproperty | |
Property, Plant and Equipment [Line Items] | |
Number of reportable segments | segment | 2 |
Vessel/Fleet [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 40 |
Charter In Vessels [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 4 |
Vessels with Interest In [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of vessels in fleet | 2 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash and cash equivalents, noncurrent | $ 17,029 | $ 57,618 | $ 60,572 | |
Amortization of financing costs | $ 851 | $ 1,230 | ||
10.75% Subordinated Notes [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 10.75% | |||
2020 Debt Facilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred finance costs, gross | $ 7,329 | |||
Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 94.00% | 88.00% | ||
Term Loan [Member] | Core Term Loan Facility, Core Transition Facility, Sinosure Credit Facility and 8.5% Senior Notes [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred finance costs, gross | $ 9,216 | $ 16,309,000 | ||
Term Loan [Member] | Core Revolving Facility [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred finance costs, gross | 752 | |||
Revolving Credit Facility [Member] | INSW Facilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred finance costs, gross | $ 274 | |||
Revolving Credit Facility [Member] | Core Revolving Facility [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred finance costs, gross | $ 980 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Activity for allowance for credit losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Balance Beginning | $ 1,245 | ||
Provision for expected credit losses | 62 | 1,245 | |
Write-offs charged against the allowance | (8) | ||
Balance Ending | $ 1,299 | $ 1,245 |
EARNINGS PER COMMON SHARE (Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) - shares | 3 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive awards | 193,754 | 41,954 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Participating securities allocated a portion of income | 51,107 | 47,501 | |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 280,807 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities | 538,632 | ||
Antidilutive securities excluded from computation of earnings per share, amount | 827,583 | 539,825 |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Components of Calculation of Earnings Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
EARNINGS PER COMMON SHARE [Abstract] | ||
Net income | $ 33,019 | $ 10,897 |
Weighted average common shares outstanding: | ||
Basic | 29,154,639 | 29,181,233 |
Diluted | 29,348,393 | 29,223,187 |
EARNINGS PER COMMON SHARE (Reco
EARNINGS PER COMMON SHARE (Reconciliation of Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
EARNINGS PER COMMON SHARE [Abstract] | ||
Common Stockholders | $ 32,961 | $ 10,879 |
Participating securities | 58 | 18 |
Net income | $ 33,019 | $ 10,897 |
BUSINESS AND SEGMENT REPORTIN_2
BUSINESS AND SEGMENT REPORTING (Reportable Segments Information) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenues, services | $ 125,337 | $ 101,874 |
Depreciation and amortization | 18,267 | 18,929 |
Loss/(gain) on disposal of vessels and other property | (2,804) | (48) |
Adjusted income/(loss) from vessel operations | 58,273 | 27,377 |
Equity in income/(loss) of affiliated companies | 5,111 | 8,070 |
Investments in and advances to affiliated companies | 151,400 | 267,518 |
Adjusted total assets | 1,624,925 | 1,748,545 |
Expenditures for vessels and vessel improvements | 28,914 | 2,962 |
Payments for drydockings | 7,565 | 4,438 |
Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 119,731 | 94,029 |
International Crude Tankers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 93,677 | 80,385 |
Depreciation and amortization | 14,245 | 14,477 |
Loss/(gain) on disposal of vessels and other property | (2,804) | 17 |
Adjusted income/(loss) from vessel operations | 43,949 | 23,362 |
Equity in income/(loss) of affiliated companies | 5,111 | 4,770 |
Investments in and advances to affiliated companies | 143,403 | 139,832 |
Adjusted total assets | 1,292,689 | 1,306,866 |
Expenditures for vessels and vessel improvements | 11,301 | 2,955 |
Payments for drydockings | 7,205 | 4,231 |
International Crude Tankers Segment [Member] | Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 88,854 | 72,586 |
International Product Carriers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 31,660 | 21,489 |
Depreciation and amortization | 3,998 | 4,418 |
Loss/(gain) on disposal of vessels and other property | (65) | |
Adjusted income/(loss) from vessel operations | 14,353 | 4,058 |
Investments in and advances to affiliated companies | 7,997 | 12,703 |
Adjusted total assets | 332,236 | 326,696 |
Expenditures for vessels and vessel improvements | 17,613 | 7 |
Payments for drydockings | 360 | 207 |
International Product Carriers Segment [Member] | Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 30,877 | 21,443 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 24 | 34 |
Adjusted income/(loss) from vessel operations | $ (29) | (43) |
Equity in income/(loss) of affiliated companies | 3,300 | |
Investments in and advances to affiliated companies | 114,983 | |
Adjusted total assets | $ 114,983 |
BUSINESS AND SEGMENT REPORTIN_3
BUSINESS AND SEGMENT REPORTING (Reconciliation of Time Charter Revenue to Shipping Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues, services | $ 125,337 | $ 101,874 |
Add: Voyage expenses | 5,606 | 7,845 |
Time Charter Equivalent Services [Member] | ||
Revenues, services | $ 119,731 | $ 94,029 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
BUSINESS AND SEGMENT REPORTING [Abstract] | ||
Total adjusted income from vessel operations of all segments | $ 58,273 | $ 27,377 |
General and administrative expenses | (7,434) | (6,773) |
Provision for credit losses | (62) | (1,298) |
Third-party debt modification fees | (232) | (30) |
(Loss)/gain on disposal of vessels and other property, including impairments | 2,804 | 48 |
Consolidated (loss)/income from vessel operations | 53,349 | 19,324 |
Equity in income/(loss) of affiliated companies | 5,111 | 8,070 |
Other (expense)/income | (13,432) | 1,036 |
Interest expense | (12,009) | (17,533) |
Income before income taxes | $ 33,019 | $ 10,897 |
BUSINESS AND SEGMENT REPORTIN_5
BUSINESS AND SEGMENT REPORTING (Reconciliation of Assets of Segments to Consolidated Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 1,624,925 | $ 1,748,545 | |
Cash and cash equivalents | 93,298 | $ 89,671 | 79,537 |
Restricted cash | 17,029 | 60,572 | 57,618 |
Other unallocated amounts | 5,476 | 5,370 | |
Total assets | $ 1,740,728 | $ 1,753,501 | 1,891,070 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 114,983 |
VESSELS (Narrative) (Details)
VESSELS (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020 | Jan. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Impairment of long-lived assets held-for-use | $ 0 | ||||
Proceeds from disposal of vessels and other property | $ 1,355,000 | $ 13,601,000 | $ (82,000) | ||
LR1 Vessel [Member] | |||||
Purchase agreement, purchase amount | $ 18,750,000 | ||||
Aframax 2002-built Sold [Member] | |||||
Net gain (loss) on disposal of vessel | $ 2,808,000 |
EQUITY METHOD INVESTMENTS (Narr
EQUITY METHOD INVESTMENTS (Narrative) (Details) $ in Thousands | 1 Months Ended | |||
Apr. 30, 2018USD ($) | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Mar. 29, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of joint ventures | item | 2 | |||
Investments in and advances to affiliated companies | $ 151,400 | $ 153,292 | ||
Other Equity Method Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in and advances to affiliated companies | 13,364 | |||
FSO Joint Venture [Member] | FSO Asia and FSO Africa [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in and advances to affiliated companies | $ 138,036 | |||
LNG Joint Venture, TI Africa and TI Asia Limited [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
FSO Term Loan [Member] | FSO Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Minimum liquidity level, threshold amount | $ 50,000 | |||
Minimum liquidity level, threshold percentage of debt | 5.00% | |||
Minimum cash, threshold amount, debt instrument covenant | $ 30,000 | |||
Guarantor obligations, maximum exposure, undiscounted | $ 65,648 | |||
Guarantor obligations, current carrying value | $ 192 | |||
Secured Debt [Member] | FSO Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 220,000 | |||
Proceeds from long-term lines of credit | 220,000 | |||
Financial Guarantee [Member] | FSO Term Loan [Member] | FSO Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from long-term lines of credit | $ 110,000 |
EQUITY METHOD INVESTMENTS (Resu
EQUITY METHOD INVESTMENTS (Results of Operations of Equity Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
EQUITY METHOD INVESTMENTS [Abstract] | ||
Shipping revenues | $ 26,024 | $ 52,315 |
Ship operating expenses | (14,240) | (26,369) |
Income from vessel operations | 11,784 | 25,946 |
Interest expense | (1,874) | (10,276) |
Income tax (provision)/benefit | (923) | (855) |
Net income | 9,027 | 15,243 |
other | $ 40 | $ 428 |
VARIABLE INTEREST ENTITIES (V_3
VARIABLE INTEREST ENTITIES (VIEs) (Narrative) (Details) $ in Thousands | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Variable Interest Entity [Line Items] | ||
Number of commercial pools | 6 | |
Number of joint ventures | 2 | |
Accounts receivable, net, current | $ | $ 104,094 | $ 83,845 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of commercial pools | 2 | |
Number of joint ventures | 2 | |
Accounts receivable, net, current | $ | $ 26,778 |
VARIABLE INTEREST ENTITIES (V_4
VARIABLE INTEREST ENTITIES (VIEs)) (Balance Sheet Carrying Amounts Related to VIEs) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investments in Affiliated Companies | $ 151,400 | $ 267,518 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in Affiliated Companies | $ 142,809 |
VARIABLE INTEREST ENTITIES (V_5
VARIABLE INTEREST ENTITIES (VIEs) (Comparison of Liability to Maximum Exposure to Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Other Liabilities | $ 1,332 | $ 1,489 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Other Liabilities | 192 | |
Maximum Exposure to Loss | $ 208,457 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 27, 2020 | Mar. 31, 2020 | Apr. 30, 2020 | Jan. 28, 2020 | |
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | ||||
Extinguishment of debt | $ 382,699 | |||
Change in fair value of interest rate collar recorded through earnings | $ (1,271) | |||
Interest Rate Cap/Collar [Member] | ||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | ||||
Derivative, notional amount | $ 350,000 | |||
Change in fair value of interest rate collar recorded through earnings | $ 1,271 | |||
Interest Rate Swap [Member] | ||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | ||||
Derivative, notional amount | $ 250,000 | |||
Derivative, fixed interest rate | 1.97% | |||
Average floor rate | 0.00% | |||
Subsequent Event [Member] | ||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | ||||
Derivative, notional amount | $ 25,000 | |||
Derivative, fixed interest rate | 0.50% | |||
Sinosure Credit Facility [Member] | Interest Rate Swap [Member] | ||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | ||||
Derivative, fixed interest rate | 2.76% |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Other Than Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Restricted cash | $ 17,029 | $ 60,572 | $ 57,618 |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 110,327 | 150,243 | |
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 | $ (263,811) | (269,705) | |
10.75% Subordinated Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 10.75% | ||
Term Loan [Member] | INSW Facilities [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Payable, Fair Value Disclosure | (333,177) | ||
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 | $ (23,248) | ||
Term Loan [Member] | Core 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 | $ (300,000) | ||
Term Loan [Member] | Transition Facility [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Payable, Fair Value Disclosure | $ (45,000) | ||
Senior Notes [Member] | 8.5% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | |
Senior Notes [Member] | 8.5% Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | $ (23,970) | $ (26,120) | |
Subordinated Debt [Member] | 8.5% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 8.50% | ||
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 10.75% | 10.75% | |
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | $ (32,649) | ||
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 | $ 110,327 | 150,243 | |
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | 8.5% Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | (23,970) | (26,120) | |
Fair Value, Inputs, Level 2 [Member] | 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 | (263,811) | (269,705) | |
Fair Value, Inputs, Level 2 [Member] | Term Loan [Member] | INSW Facilities [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Payable, Fair Value Disclosure | (333,177) | ||
Fair Value, Inputs, Level 2 [Member] | 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 | (23,248) | ||
Fair Value, Inputs, Level 2 [Member] | Term Loan [Member] | Core 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 | (300,000) | ||
Fair Value, Inputs, Level 2 [Member] | Term Loan [Member] | Transition Facility [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Payable, Fair Value Disclosure | $ (45,000) | ||
Fair Value, Inputs, Level 2 [Member] | Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | $ (32,649) |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Value of Derivative Instruments) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ (25,872) | $ (10,159) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Current Portion of Derivative Liability [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | (7,614) | (2,384) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Non Current Portion of Derivative Liability [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ (18,258) | (5,968) |
Not Designated as Hedging Instrument [Member] | Current Portion of Derivative Liability [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | (1,230) | |
Not Designated as Hedging Instrument [Member] | Non Current Portion of Derivative Liability [Member] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ (577) |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Effect of Cash Flow Hedging Relationships) (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total other comprehensive loss | $ (16,121) | $ (4,999) |
Interest Rate Cap/Collar [Member] | ||
Total other comprehensive loss | (908) | |
Interest Rate Swap [Member] | ||
Total other comprehensive loss | $ (16,121) | $ (4,091) |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ 1,136 | $ 1,821 |
Interest Rate Cap/Collar [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | 1,352 | |
Interest Expense [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | 2,247 | 181 |
Cash Flow Hedging [Member] | Interest Rate Cap/Collar [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | 41 | |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ 895 | $ 140 |
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) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Interest Rate Swaps and Collar [Member] | ||
Derivative liability | $ (10,159) | |
Interest Rate Swaps and Collar [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative liability | $ (10,159) | |
Interest Rate Swap [Member] | ||
Derivative liability | $ (25,872) | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative liability | $ (25,872) |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
10.75% Subordinated Notes [Member] | ||
Debt instrument, interest rate, stated percentage | 10.75% | |
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | ||
Debt instrument, interest rate, stated percentage | 10.75% | 10.75% |
Subordinated Debt [Member] | 8.5% Senior Notes [Member] | ||
Debt instrument, interest rate, stated percentage | 8.50% | |
Senior Notes [Member] | 8.5% Senior Notes [Member] | ||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% |
DEBT (2020 Debt Facilities) (Na
DEBT (2020 Debt Facilities) (Narrative) (Details) $ in Thousands | Mar. 04, 2020USD ($) | Jan. 28, 2020USD ($) | Jan. 23, 2020USD ($) | Mar. 31, 2020property |
2020 Debt Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum liquidity level, threshold percentage of debt | 5.00% | |||
2020 Debt Facilities [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold leverage ratio | 0.60% | |||
2020 Debt Facilities [Member] | Period From January 28, 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold ratio of consolidated EBITDA to consolidated cash interest expense | 2.25 | |||
2020 Debt Facilities [Member] | Period Thereafter June 30, 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold ratio of consolidated EBITDA to consolidated cash interest expense | 2.50 | |||
2020 Debt Facilities [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 390,000 | |||
Core Term Loan Facility and Core Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of vessels in fleet used as collateral | property | 14 | |||
Core Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Covenant, Fair Market Value of the Core Collateral Vessels, Threshold Percentage Of Outstanding Principal Amount | 135.00% | |||
Line Of Credit Accordion Amount | $ 100,000 | |||
Core Term Loan Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 300,000 | |||
Core Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount drawn | $ 20,000 | |||
Repayments of debt | $ 20,000 | |||
Core Revolving Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 40,000 | |||
Transition Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Period after which interest rate can be increased | 18 months | |||
Debt Instrument Covenant, Fair Market Value of the Core Collateral Vessels, Threshold Percentage Of Outstanding Principal Amount | 175.00% | |||
Number of vessels in fleet used as collateral | property | 12 | |||
Transition Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000 | |||
2017 Debt Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum liquidity level, threshold amount | $ 50,000 | |||
ABN Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | 23,248 | |||
Jefferies Finance | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | 331,519 | |||
10.75% Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Repurchase of debt | $ 27,931 |
DEBT (Sinosure Credit Facility)
DEBT (Sinosure Credit Facility) (Narrative) (Details) $ in Thousands | Jul. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Scenario, Plan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest expense coverage ratio | 2.50 | 2.25 | ||
Seaways Holding Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest expense coverage ratio | 2 | |||
Sinosure Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 261,645 | $ 267,443 | ||
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 (Schedule of Long-term Deb
DEBT (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Less current portion | $ (81,483) | $ (70,350) |
Long-term portion | 543,111 | 590,745 |
2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Less current portion | (81,483) | (70,350) |
Sinosure Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 261,645 | 267,443 |
Unamortized discount and deferred finance costs | $ 2,166 | 2,262 |
10.75% Subordinated Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 10.75% | |
Term Loan [Member] | 2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 320,309 | |
Unamortized discount and deferred finance costs | $ 11,211 | |
Term Loan [Member] | ABN Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 22,638 | |
Unamortized discount and deferred finance costs | 610 | |
Term Loan [Member] | Core Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 294,809 | |
Unamortized discount and deferred finance costs | 5,191 | |
Term Loan [Member] | Transition Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 44,213 | |
Unamortized discount and deferred finance costs | 787 | |
Senior Notes [Member] | 8.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 23,927 | 23,858 |
Unamortized discount and deferred finance costs | $ 1,073 | $ 1,142 |
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% |
Senior Notes [Member] | 10.75% Subordinated Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount and deferred finance costs | $ 1,084 | |
Subordinated Debt [Member] | 8.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.50% | |
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 26,847 | |
Debt instrument, interest rate, stated percentage | 10.75% | 10.75% |
Revolving Credit Facility [Member] | 2017 Debt Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 624,594 | $ 661,095 |
DEBT (Senior and Subordinated N
DEBT (Senior and Subordinated Notes) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt instrument covenant limitation on total borrowings percentage of total assets | 70.00% | ||
Debt instrument covenant net worth | $ 600,000 | ||
Recapitalization costs | 232 | $ 30 | |
Extinguishment of debt | $ 382,699 | ||
10.75% Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 10.75% | ||
Senior Notes [Member] | 8.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | |
Subordinated Debt [Member] | 8.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 8.50% | ||
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 10.75% | 10.75% |
DEBT (Debt Modification, Repurc
DEBT (Debt Modification, Repurchases and Extinguishment) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Jan. 28, 2020 | Jan. 23, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Interest Expense | $ 7,155 | $ 11,172 | ||||
Gain (Loss) on extinguishment of debt | $ (992) | |||||
Other (expense)/income | (13,432) | 1,036 | ||||
Amortization of Issuance, Deferred Financing Costs, Commitments, Administrative and Other Fees for Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Expense | 11,852 | 17,226 | ||||
2017 Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Other (expense)/income | (13,493) | |||||
2017 Term Loan, ABN Term Loan Facility and 10.75% Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Write off of deferred debt issuance cost | 12,501 | |||||
2020 Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | 7,329 | |||||
Core Revolving Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 20,000 | |||||
Core Term Loan Facility and Transition Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | 6,345 | |||||
Payments of financing costs | 6,577 | |||||
Core Term Loan Facility and Transition Term Loan Facility Deemed Expensed [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | $ 232 | |||||
10.75% Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchase amount | $ 27,931 | |||||
Revolving Credit Facility [Member] | INSW Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | $ 274 | |||||
Revolving Credit Facility [Member] | Core Revolving Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 40,000 | |||||
Deferred finance costs, gross | 980 | |||||
Secured Debt [Member] | 2020 Debt Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 390,000 | |||||
Term Loan [Member] | Core Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 300,000 | |||||
Term Loan [Member] | Core Revolving Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs, gross | 752 | |||||
Term Loan [Member] | Transition Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50,000 | |||||
Subordinated Debt [Member] | 10.75% Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment fee amount | $ 992 |
CAPITAL STOCK AND STOCK COMPE_2
CAPITAL STOCK AND STOCK COMPENSATION (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Feb. 26, 2020 | Mar. 05, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 30,000,000 | |||||
Purchase of treasury stock | $ 10,012,000 | |||||
Dividends payable, date declared | Feb. 26, 2020 | |||||
Dividends payable, amount per share | $ 0.06 | |||||
Payments of dividends | $ 1,729,000 | |||||
Dividends payable, date of record | Mar. 17, 2020 | |||||
Stock Repurchased and Retired During Period, Value | $ 10,012 | |||||
Stock Repurchased and Retired During Period, Shares | 490,592 | |||||
Stock repurchased per share amount | $ 20.41 | |||||
Stock Repurchased During Period, Shares | 0 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares paid for tax withholding for share based compensation | 33,210 | 8,746,000 | ||||
Shares paid for tax withholding for share based compensation, per share amount | $ 21.23 | $ 17.13 | ||||
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares paid for tax withholding for share based compensation | 4,198 | |||||
Shares paid for tax withholding for share based compensation, per share amount | $ 22.70 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Derivative instruments, gain (loss) reclassification from accumulated oci to income, estimated net amount to be transferred | $ 9,816 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | ||
Unrealized losses on derivative instruments | $ (26,717) | $ (11,732) |
Items not yet recognized as a component of net periodic benefit cost (pension plans) | (8,245) | (8,838) |
Accumulated other comprehensive loss | $ (34,962) | $ (20,570) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE LOSS (Changes in Components of AOCI, Net of Related Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Balance, beginning | $ 1,022,293 | $ 1,009,855 |
Other comprehensive loss, net of tax | (14,392) | (3,377) |
Balance, ending | 1,029,680 | 1,017,987 |
Accumulated Other Comprehensive Loss [Member] | ||
Balance, beginning | (20,570) | (29,929) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | (15,528) | (5,198) |
Amounts reclassified from accumulated other comprehensive loss | 1,136 | 1,821 |
Other comprehensive loss, net of tax | (14,392) | (3,377) |
Balance, ending | (34,962) | (33,306) |
Unrealized losses on cash flow hedges [Member] | ||
Balance, beginning | (11,732) | (21,520) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | (16,121) | (4,999) |
Amounts reclassified from accumulated other comprehensive loss | 1,136 | 1,821 |
Balance, ending | (26,717) | (24,698) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance, beginning | (8,838) | (8,409) |
Current period change, excluding amounts reclassified from accumulated other comprehensive loss | 593 | (199) |
Balance, ending | $ (8,245) | $ (8,608) |
ACCUMULATED OTHER COMPREHENSI_6
ACCUMULATED OTHER COMPREHENSIVE LOSS (Amounts Reclassified out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Unrealized losses on available-for-sale securities: | ||
Equity in income of affiliated companies | $ 33,019 | $ 10,897 |
Income (loss) from equity method investments | 5,111 | 8,070 |
Interest expense | 12,009 | 17,533 |
Other (expense)/income | (13,432) | 1,036 |
Total reclassified out of AOCL, before tax | 1,136 | 1,821 |
Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized losses on cash flow hedges [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Equity in income of affiliated companies | 160 | 1,640 |
Interest expense | 895 | 140 |
Interest Rate Cap/Collar [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Total reclassified out of AOCL, before tax | 1,352 | |
Interest Rate Cap/Collar [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Interest expense | $ 81 | |
Interest Rate Cap/Collar [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized losses on cash flow hedges [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Interest expense | $ 41 |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
REVENUE [Abstract] | |||
Revenues, Total | $ 125,337,000 | $ 101,874,000 | |
Contract with customer, performance obligation satisfied in previous period | 15 | $ (483,000) | |
Capitalized contract cost, gross | $ 0 | $ 0 | |
Term Of Profit Sharing Arrangement | 1 year | ||
Profit Loss To Be Shared, Percentage | 25 |
REVENUE (Schedule of Disaggrega
REVENUE (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, non lease | $ 125,337 | $ 101,874 |
Shipping revenues | 125,337 | 101,874 |
Lightering Services Component [Member] | ||
Revenue, non lease | 6,350 | 21,073 |
International Crude Tankers Segment [Member] | ||
Revenue, non lease | 93,677 | 80,385 |
Shipping revenues | 93,677 | 80,385 |
International Crude Tankers Segment [Member] | Lightering Services Component [Member] | ||
Revenue, non lease | 6,350 | 21,073 |
International Product Carriers Segment [Member] | ||
Revenue, non lease | 31,660 | 21,489 |
Shipping revenues | 31,660 | 21,489 |
Pool Revenue Leases [Member] | ||
Shipping revenues | 101,209 | 67,637 |
Pool Revenue Leases [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 101,209 | 67,637 |
Pool Revenue Leases [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 70,250 | 46,172 |
Pool Revenue Leases [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 30,959 | 21,465 |
Voyage Charter Leases Non Variable Payments [Member] | Fixed-Price Contract [Member] | ||
Revenue, lease non-variable | 8,054 | 7,296 |
Voyage Charter Leases Non Variable Payments [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, lease non-variable | 7,353 | 7,272 |
Voyage Charter Leases Non Variable Payments [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, lease non-variable | 701 | 24 |
Voyage Charter Leases Variable Payments [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 1,120 | 348 |
Voyage Charter Leases Variable Payments [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 1,120 | 348 |
Time and Bareboat Charter Leases [Member] | ||
Shipping revenues | 8,604 | 5,520 |
Time and Bareboat Charter Leases [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 8,604 | 5,520 |
Time and Bareboat Charter Leases [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | ||
Revenue, operating leases | 8,604 | 5,520 |
Voyage Charter Leases [Member] | ||
Shipping revenues | $ 15,524 | $ 28,717 |
REVENUE (Schedule of Contract R
REVENUE (Schedule of Contract Related Receivables, Assets and Liabilities with Customers) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
REVENUE [Abstract] | ||
Voyage receivables - receivables | $ 1,921 | $ 2,727 |
Contract asset (voyage receivables unbilled receivables) | $ 547 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Charter-In [Member] | |
Leases [Line Items] | |
Increase (decrease) in period operating lease asset | $ (1,000) |
Increase (decrease) in period operating lease liability | $ (730) |
Time Charters-In [Member] | |
Leases [Line Items] | |
Lessee, operating lease, option to extend | true |
Lease, operating lease, existence of option to extend | true |
Minimum [Member] | |
Leases [Line Items] | |
Lessee, Operating Lease, Renewal Term | 6 months |
Maximum [Member] | |
Leases [Line Items] | |
Lessee, Operating Lease, Renewal Term | 12 months |
LEASES (Schedule of lease cost)
LEASES (Schedule of lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total lease cost | $ 5,848 | $ 6,235 |
Vessel/Fleet [Member] | Charter Hire Expense [Member] | ||
Operating lease, cost | 3,728 | 3,657 |
Short-term lease, cost | 1,800 | 2,227 |
Office Space [Member] | General and Administrative Expense [Member] | ||
Operating lease, cost | 249 | 249 |
Short-term lease, cost | 29 | 29 |
Office Space [Member] | Voyage Expense [Member] | ||
Operating lease, cost | 42 | 42 |
Short-term lease, cost | 26 | |
Office Space [Member] | Vessel Expense [Member] | ||
Short-term lease, cost | 5 | |
Lightering Services Component [Member] | Vessel/Fleet [Member] | ||
Short-term lease, cost | $ 72 | $ 6,628 |
LEASES (Supplemental lease info
LEASES (Supplemental lease information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows used for operating leases | $ 4,019 | $ 3,873 |
Operating Lease, Liability, Current | 10,668 | 12,958 |
Operating Lease, Liability, Noncurrent | 15,718 | 17,953 |
Total operating lease liabilities | (26,386) | (30,911) |
Operating Lease, Right-of-Use Asset | $ 28,940 | $ 33,718 |
Operating Lease, Weighted Average Discount Rate, Percent | 7.18% | 7.16% |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 3 months | 3 years 2 months 27 days |
LEASES (Bareboat and Time Chart
LEASES (Bareboat and Time Charters-In) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Line Items] | ||
Total operating lease liabilities | $ 26,386 | $ 30,911 |
Bareboat Charters-In [Member] | ||
Leases [Line Items] | ||
2020 | 4,730 | |
2021 | 6,278 | |
2022 | 6,278 | |
2023 | 4,532 | |
Total lease payments | 21,818 | |
less imputed interest | (2,569) | |
Total operating lease liabilities | $ 19,249 | |
2020, operating days | 550 days | |
2021, operating days | 730 days | |
2022, operating days | 730 days | |
2023, operating days | 556 days | |
Operating days, total | 2566 days | |
Time Charters-In [Member] | ||
Leases [Line Items] | ||
2020 | $ 3,111 | |
2021 | 2,170 | |
Total lease payments | 5,281 | |
less imputed interest | (215) | |
Total operating lease liabilities | $ 5,066 | |
2020, operating days | 643 days | |
2021, operating days | 408 days | |
Operating days, total | 1051 days |
LEASES (Future Minimum Lease Ob
LEASES (Future Minimum Lease Obligations for Office Space) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Line Items] | ||
Total operating lease liabilities | $ 26,386 | $ 30,911 |
Office Space And Lightering Workboat Dock Space [Member] | ||
Leases [Line Items] | ||
2020 | 874 | |
2021 | 838 | |
2022 | 173 | |
2023 | 178 | |
2024 | 178 | |
Total lease payments | 2,241 | |
less imputed interest | (170) | |
Total operating lease liabilities | $ 2,071 |
LEASES (Future Minimum Revenues
LEASES (Future Minimum Revenues on Charters-Out) (Details) - Charters-Out [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2020 | $ 33,718 |
2021 | 21,354 |
2022 | 16,425 |
2023 | 3,195 |
Net minimum lease payments | $ 74,692 |
2020, revenue days | 1015 days |
2021, revenue days | 458 days |
2022, revenue days | 365 days |
2023, revenue days | 71 days |
Revenue Days | 1909 days |
CONTINGENCIES (Narrative) (Deta
CONTINGENCIES (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Galveston Accident [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 25,000 |