VARIABLE INTEREST ENTITIES (VIEs)

6 Months Ended

Jun. 30, 2020

VARIABLE INTEREST ENTITIES (VIEs) [Abstract]

VARIABLE INTEREST ENTITIES (VIEs)

Note 7 — Variable Interest Entities (“VIEs”):

As of June 30, 2020, the Company participates in five commercial pools and two joint ventures. Two of the pools and the two FSO joint ventures were determined to be VIEs. The Company is not considered a primary beneficiary of either the pools or the joint ventures.

The following table presents the carrying amounts of assets and liabilities in the condensed consolidated balance sheet related to the VIEs as of June 30, 2020:

(Dollars in thousands)	Condensed Consolidated Balance Sheet
Investments in Affiliated Companies	$	147,250

In accordance with accounting guidance, the Company evaluated its maximum exposure to loss related to these VIEs by assuming a complete loss of the Company’s investment in these VIEs. The table below compares the Company’s liability in the condensed consolidated balance sheet to the maximum exposure to loss at June 30, 2020:

(Dollars in thousands)		Condensed Consolidated Balance Sheet	Maximum Exposure to Loss
Other Liabilities	$	131	$	206,682

In addition, as of June 30, 2020, the Company had approximately $21.1 million of trade receivables from the two pools that were determined to be VIEs. These trade receivables, which are included in voyage receivables in the accompanying condensed consolidated balance sheet, have been excluded from the above tables and the calculation of INSW’s maximum exposure to loss. The Company does not record the maximum exposure to loss as a liability because it does not believe that such a loss is probable of occurring as of June 30, 2020.