REVENUE

6 Months Ended

Jun. 30, 2020

REVENUE [Abstract]

REVENUE

Note 13 — Revenue:

Revenue Recognition

The majority of the Company's contracts for pool revenues, time and bareboat charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Company's contracts with pools are cancellable with up to 90 days' notice. As of June 30, 2020, the Company is a party to time charter out contracts with customers on six Panamaxes and four VLCCs with expiry dates ranging from July 2020 to March 2023. The Company is also a party to a one-year profit share agreement expiring March 2021 to participate in 25% of the profits and losses generated from a chartered-in MR commercially managed by a pool in which the Company participates. The Company’s share of earnings and charter hire expenses from this profit share agreement are included in voyage charter revenues and charter hire expenses, respectively, in the accompanying condensed consolidated statements of operations. The Company's contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments are recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) are recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur.

Lightering services provided by the Company's Crude Tanker Lightering Business, and voyage charter contracts that do not meet the definition of a lease are accounted for as service revenues under ASC 606. In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services.

The following table presents the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three and six months ended June 30, 2020 and 2019:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Three months ended June 30, 2020:
Revenues from leases
Pool revenues	$	72,446	$	27,613	$	—	$	100,059
Time and bareboat charter revenues		26,655		—		—		26,655
Voyage charter revenues from non-variable lease payments		2,690		1,705		—		4,395
Voyage charter revenues from variable lease payments		50		—		—		50
Revenues from services
Voyage charter revenues
Lightering services		8,566		—		—		8,566
Total shipping revenues	$	110,407	$	29,318	$	—	$	139,725
Three months ended June 30, 2019:
Revenues from leases
Pool revenues	$	28,247	$	16,466	$	—	$	44,713
Time and bareboat charter revenues		6,451		90		—		6,541
Voyage charter revenues from non-variable lease payments		5,239		324		—		5,563
Voyage charter revenues from variable lease payments		842		—		—		842
Revenues from services
Voyage charter revenues
Lightering services		11,351		—		—		11,351
Total shipping revenues	$	52,130	$	16,880	$	—	$	69,010

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Six months ended June 30, 2020:
Revenues from leases
Pool revenues	$	142,696	$	58,572	$	—	$	201,268
Time and bareboat charter revenues		35,259		—		—		35,259
Voyage charter revenues from non-variable lease payments		10,043		2,406		—		12,449
Voyage charter revenues from variable lease payments		1,170		—		—		1,170
Revenues from services
Voyage charter revenues
Lightering services		14,916		—		—		14,916
Total shipping revenues	$	204,084	$	60,978	$	—	$	265,062
Six months ended June 30, 2019:
Revenues from leases
Pool revenues	$	74,419	$	37,931	$	—	$	112,350
Time and bareboat charter revenues		11,971		90		—		12,061
Voyage charter revenues from non-variable lease payments		12,511		348		—		12,859
Voyage charter revenues from variable lease payments		1,190		—		—		1,190
Revenues from services
Voyage charter revenues
Lightering services		32,424		—		—		32,424
Total shipping revenues	$	132,515	$	38,369	$	—	$	170,884

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant changes in contract assets and liabilities balances, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below.
​

(Dollars in thousands)	Voyage receivables - Billed receivables		Contract assets (Unbilled voyage receivables)		Contract liabilities (Deferred revenues and off hires)
Opening balance as of January 1, 2020	$	2,727	$	—	$	—
Closing balance as of June 30, 2020		2,941		571		—

We receive payments from customers based on the distribution schedule established in our contracts. Contract assets relate to our conditional right to consideration for our completed performance under contracts and decrease when the right to consideration becomes unconditional or payments are received. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed.

Performance Obligations

All of the Company's performance obligations, and associated revenue, are generally transferred to customers over time. The expected duration of services is less than one year. Positive adjustments in revenues from performance obligations satisfied in previous periods recognized during the three and six months ended June 30, 2020 were nil and $15 thousand, respectively, compared with negative adjustments of $53 thousand and $481 thousand, respectively, during the three and six months ended June 30, 2019. These adjustments to revenue were related to changes in estimates of performance obligations related to voyage charters.

Costs to Obtain or Fulfill a Contract

As of June 30, 2020, there were no unamortized deferred costs of obtaining or fulfilling a contract.