Business and Segment Reporting |
Note 4 — Business and Segment Reporting:
The Company has two reportable segments: Crude Tankers and Product Carriers. The joint ventures with two floating storage and offloading service vessels are included in the Crude Tankers Segment. The joint venture with four LNG Carriers is included in Other. Adjusted (loss)/income from vessel operations for segment purposes is defined as (loss)/income from vessel operations before general and administrative expenses, third-party debt modification fees, separation and transition costs and gain on disposal of vessels and other property, net of impairments. 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 and six months ended June 30, 2018 and 2017 follows:
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Crude
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Product
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Tankers
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Carriers
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Other
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Totals
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Three months ended June 30, 2018:
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Shipping revenues
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$
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41,154
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$
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15,755
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$
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-
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$
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56,909
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Time charter equivalent revenues
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34,385
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15,627
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-
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50,012
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Depreciation and amortization
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12,240
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4,530
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34
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16,804
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Gain on disposal of vessels and other property,
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net of impairments
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(4,055)
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(2,685)
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-
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(6,740)
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Adjusted (loss)/income from vessel operations
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(5,198)
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(4,149)
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304
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(9,043)
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Equity in income of affiliated companies
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4,709
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-
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4,113
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8,822
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Investments in and advances to affiliated companies
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at June 30, 2018
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152,604
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13,583
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108,847
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275,034
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Adjusted total assets at June 30, 2018
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1,338,120
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351,615
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108,847
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1,798,582
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Three months ended June 30, 2017:
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Shipping revenues
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$
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47,914
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$
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24,043
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$
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-
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$
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71,957
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Time charter equivalent revenues
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45,745
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23,535
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-
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69,280
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Depreciation and amortization
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13,304
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5,762
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33
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19,099
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Adjusted income/(loss) from vessel operations
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7,136
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(3,171)
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(193)
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3,772
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Equity in income of affiliated companies
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10,258
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-
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3,608
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13,866
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Investments in and advances to affiliated companies
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at June 30, 2017
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268,863
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15,342
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87,904
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372,109
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Adjusted total assets at June 30, 2017
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1,079,142
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410,024
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87,531
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1,576,697
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Crude
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Product
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Tankers
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Carriers
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Other
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Totals
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Six months ended June 30, 2018:
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Shipping revenues
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$
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73,519
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$
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35,368
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$
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-
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$
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108,887
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Time charter equivalent revenues
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63,605
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35,208
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-
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98,813
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Depreciation and amortization
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25,113
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9,248
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67
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34,428
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Loss/(gain) on disposal of vessels and other property,
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including impairments
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5,933
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(6,100)
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-
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(167)
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Adjusted (loss)/income from vessel operations
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(17,222)
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(6,560)
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635
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(23,147)
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Equity in income of affiliated companies
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10,284
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-
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6,878
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17,162
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Expenditures for vessels and vessel improvements
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127,510
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1,415
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-
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128,925
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Payments for drydockings
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2,683
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18
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-
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2,701
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Six months ended June 30, 2017:
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Shipping revenues
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$
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107,806
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$
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52,901
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$
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-
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$
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160,707
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Time charter equivalent revenues
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101,790
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51,622
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-
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153,412
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Depreciation and amortization
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26,351
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11,298
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66
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37,715
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Adjusted income/(loss) from vessel operations
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25,495
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(1,138)
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(148)
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24,209
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Equity in income of affiliated companies
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20,173
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-
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7,299
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27,472
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Expenditures for vessels and vessel improvements
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17,807
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776
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-
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18,583
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Payments for drydockings
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12,160
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3,700
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-
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15,860
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Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow:
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2018
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2017
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2018
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2017
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Time charter equivalent revenues
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$
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50,012
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$
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69,280
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$
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98,813
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$
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153,412
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Add: Voyage expenses
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6,897
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2,677
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10,074
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7,295
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Shipping revenues
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$
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56,909
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$
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71,957
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$
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108,887
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$
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160,707
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Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance.
Reconciliations of adjusted (loss)/income from vessel operations of the segments to (loss)/income before income taxes, as reported in the condensed consolidated statements of operations follow:
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2018
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2017
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2018
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2017
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Total adjusted (loss)/income from vessel operations
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of all segments
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$
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(9,043)
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$
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3,772
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$
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(23,147)
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$
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24,209
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General and administrative expenses
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(6,064)
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(5,096)
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(12,093)
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(11,370)
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Third-party debt modification fees
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(1,302)
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(7,939)
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(1,302)
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(7,939)
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Separation and transition costs
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-
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(296)
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-
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(1,031)
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Gain on disposal of vessels and other property, net of impairments
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6,740
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-
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167
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-
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Consolidated (loss)/income from vessel operations
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(9,669)
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(9,559)
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(36,375)
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3,869
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Equity in income of affiliated companies
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8,822
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13,866
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17,162
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27,472
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Other expense
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(4,863)
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(6,644)
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(4,184)
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(6,440)
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Interest expense
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(13,086)
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(9,278)
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(24,707)
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(18,445)
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(Loss)/income before income taxes
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$
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(18,796)
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$
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(11,615)
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$
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(48,104)
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$
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6,456
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Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow:
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As of June 30,
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2018
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2017
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Total assets of all segments
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$
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1,798,582
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$
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1,576,697
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Corporate unrestricted cash and cash equivalents
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115,843
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121,230
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Restricted cash
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27,010
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-
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Other unallocated amounts
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5,045
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3,163
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Consolidated total assets
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$
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1,946,480
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$
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1,701,090
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