VALUE OF CHARTER PARTY CONTRACTS

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The value of favorable charter-out contracts is summarized as follows:



(in thousands of $)	2016		2015
Opening balance	103,376		—
Acquired as a result of the Merger	—		127,090
Amortization charge	(27,277	)	(23,714	)
Total	76,099		103,376
Less: current portion	(22,413	)	(28,829	)
Non current portion	53,686		74,547

Time charter revenues in 2016, 2015 and 2014 have been reduced by $27.3 million, $23.7 million and nil, respectively, as a result of the amortization of favorable charter-out contracts.

The value of favorable charter-out contracts will be amortized as follows:



(in thousands of $)
2017		22,413
2018		18,732
2019		18,732
2020		12,148
2021		4,074
Thereafter		—
		76,099

The value of unfavorable charter-in contracts is summarized as follows:



(in thousands of $)	2016		2015
Opening balance	6,144		—
Acquired as a result of the Merger	—		7,543
Amortization charge	(674	)	(1,399	)
Total	5,470		6,144
Less: current portion	(672	)	(674	)
Non current portion	4,798		5,470

The current and non current portion of the value of unfavorable charter-in contracts is recorded in other current liabilities and long term liabilities, respectively.

Charter hire expenses in 2016, 2015, and 2014, have been reduced by $0.7 million, $1.4 million and nil, respectively, as a result of the amortization of unfavorable charter-in contracts.

The value of unfavorable charter-in contracts will be amortized as follows:



(in thousands of $)
2017		672
2018		672
2019		672
2020		674
2021		672
Thereafter		2,108
		5,470

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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