Basis of Presentation and Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Contract with Customer, Asset and Liability

The Company’s contract liability activity for the six months ended June 30 was as follows (in thousands):



	2019
Balance at beginning of period	$	968
Contract liabilities arising during the period	5,443
Revenue recognized upon completion of performance obligations during the period	(700		)
Balance at end of period	$	5,711

Property, Plant and Equipment

As of June 30, 2019, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:



Petroleum and chemical carriers - U.S.-flag	25
Bulk carriers - U.S.-flag	25
Harbor and offshore tugs	25
Ocean liquid tank barges	25
Short-sea container/RORO⁽¹⁾vessels	20
Inland river dry-cargo and specialty barges	20
Inland river liquid tank barges	25
Inland river towboats and harbor boats	25
Terminal and fleeting facilities	20

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(1)

Roll On/Roll Off.

Schedule Of Deferred Gains

Deferred gain activity related to these transactions for the six months ended June 30 was as follows (in thousands):



	2019			2018
Balance at beginning of period	$	43,664		$	72,453
Impact of adoption of accounting principle⁽¹⁾	(29,207		)	—
Amortization of deferred gains included in operating expenses as a reduction to rental expense	—			(5,039		)
Amortization of deferred gains included in gains on asset dispositions	(1,001		)	(1,012		)
Other	—			(1,687		)
Balance at end of period	$	13,456		$	64,715

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(1)	On January 1, 2019, the Company adopted Topic 842 and reduced deferred gains associated with sale-leaseback transactions through a beginning period retained earnings adjustment.

Schedule of Earnings Per Share

Computations of basic and diluted earnings per common share of SEACOR were as follows (in thousands, except share data):



	Three Months Ended June 30,					Six Months Ended June 30,
	Net Income attributable to SEACOR		Average O/S Shares	Per Share		Net Income Attributable to SEACOR		Average O/S Shares	Per Share
2019
Basic Weighted Average Common Shares Outstanding	$	14,553	18,288,879	$	0.80	$	22,286	18,260,876	$	1.22
Effect of Dilutive Securities:
Options and Restricted Stock⁽¹⁾	—		117,543			—		112,013
Convertible Notes⁽²⁾	318		1,227,101			637		1,227,101
Diluted Weighted Average Common Shares Outstanding	$	14,871	19,633,523	$	0.76	$	22,923	19,599,990	$	1.17
2018
Basic Weighted Average Common Shares Outstanding	$	45,126	18,076,944	$	2.50	$	45,767	18,023,752	$	2.54
Effect of Dilutive Securities:
Options and Restricted Stock⁽³⁾	—		352,724			—		298,205
Convertible Notes	3,166		4,157,875			6,416		4,140,343
Diluted Weighted Average Common Shares Outstanding	$	48,292	22,587,543	$	2.14	$	52,183	22,462,300	$	2.32

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(1)	For the three and six months ended June 30, 2019, diluted earnings per common share of SEACOR excluded 893,722 and 919,121, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive.

(2)

For the three and six months ended June 30, 2019, diluted earnings per common share of SEACOR excluded 958,418 and 1,129,370, respectively, of common shares issuable pursuant to the Company’s 3.0% Convertible Senior Notes and 1,553,780 and 1,553,780, respectively, of common shares pursuant to the Company’s 3.25% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive.

(3)

For the three and six months ended June 30, 2018, diluted earnings per common share of SEACOR excluded 202,838 and 272,694, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive.