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Impairment Loss
3 Months Ended
Mar. 31, 2016
Impairment Loss [Abstract]  
Impairment Loss

NOTE 3 – IMPAIRMENT LOSS

We test long-lived assets for impairment when events or circumstances indicate that the carrying value of a particular asset may not be recoverable. Subsequent to the filing of our Annual Report on Form 10-K for the year ended December 31, 2015, we received offers to purchase certain of our Jones Act vessels for prices below their book values. These vessels were the inactive tug identified under the Strategic Plan, as well as an inactive barge and an inactive harbor tug. Using these offer prices to approximate fair value, we recorded the following non-cash impairment charges: (i) $0.4 million related to the inactive tug identified under the Strategic Plan, (ii) $0.9 million related to the inactive barge, and (iii) $0.1 million to fully write off the value of the inactive harbor tug. The inactive barge was not classified as held for sale at March 31, 2016 as its sale required lender approval.  As noted in Note 22 – Subsequent Events, during April 2016 we received this lender approval and sold the vessel.

Additionally, during the first quarter of 2016, we pursued several contracting opportunities for our belt self-unloading bulk carrier, which is included in the Jones Act segment. Based on the input we received from prospective customers, we determined at the end of the first quarter of 2016 that it was unlikely that we will deploy this vessel into service within our Gulf of Mexico operations; as a result, we wrote off approximately $0.4 million related to capital costs specific to Gulf of Mexico contracts.

Based on the final closing costs of our New Orleans office building, we recorded additional non-cash impairment charges of approximately $0.1 million to further reduce this asset to fair market value less costs to sell. We finalized the sale of this asset subsequent to March 31, 2016 - see Note 22 – Subsequent Events for further discussion.