Note 4 - Vessel Acquisitions and Dispositions

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment Disclosure [Text Block]

(4)	VESSEL ACQUISITIONS AND DISPOSITIONS

Interest is capitalized in connection with the construction of vessels. During the

three

months ended

March

31,

2017

and

March

31,

2016,

we capitalized

$0.1

million and

$1.1

million of interest, respectively.

In the

first

quarter of

2016,

we had

two

vessels under construction in the U.S. that were significantly delayed. In

March

2016,

we resolved certain matters under dispute with the shipbuilder and reset the contract schedules so that we would take delivery of the

first

vessel in mid-

2016

and the

second

vessel in mid-

2017,

at which time a final payment of

$26.0

million would be due. We took delivery of the

first

of these vessels during the

second

quarter of

2016.

Under the settlement, we can elect not to take delivery of the

second

vessel and forego the final payment, in which case the shipbuilder will retain the vessel. On

May

2017,

we advised the shipbuilder that we have elected not to take delivery. We have

other vessels under construction as of

March

31,

2017.

During the

first

quarter of

2017

we took delivery of a vessel built in Norway and paid a final installment on delivery of

195.0

million NOK (approximately

$23.1

million).

The following tables illustrate the details of vessels sold and vessels added:

Vessel Additions Since December 31, 2016
			Year	Length			Month
Vessel	Region	T ype (1)	Built	(feet)	BHP (3)	DWT (4)	Delivered

North Barents	N. Sea	LgPSV	2017	304	11,935	4,700	Jan-17

Vessels Disposed of Since December 31, 2016
			Year	Length			Month
Vessel	Region	Type (2)	Built	(feet)	BHP (3)	DWT (4)	Disposed

Mako	Americas	FSV	2008	181	7,200	552	Mar-17
Tiger	Americas	FSV	2009	181	7,200	552	Mar-17

(1)

LgPSV - Large Platform Supply Vessel

(2)

FSV - Fast Supply Vessel

(3)

BHP - Brake Horsepower

(4)

DWT - Deadweight Tons