As permitted under ASC 842, the Company has elected not to apply the provisions of ASC 842 to short term leases, which include: (i) tanker vessels chartered-in where the duration of the charter was one year or less at inception; (ii) workboats employed in the Crude Tankers Lightering business which are cancellable upon 180 days' notice; and (iii) short term leases of office and other space.

The Company currently has two major categories of leases - chartered-in vessels and leased office and other space. The expenses recognized during the three and six months ended June 30, 2020 and 2019 for the lease component of these leases are as follows:

(1)

Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $0.1 million and $0.2 million for the three and six months ended June 30, 2020, respectively, compared with $1.8 million and $8.4 million for the three and six months ended June 30, 2019, respectively, including both lease and non-lease components.

Supplemental cash flow information related to leases was as follows:

Supplemental balance sheet information related to leases was as follows:


(Dollars in thousands)	June 30, 2020		December 31, 2019
Operating lease right-of-use assets	$	26,386	$	33,718

Current portion of operating lease liabilities	$	(10,411)	$	(12,958)
Long-term operating lease liabilities		(13,504)		(17,953)
Total operating lease liabilities	$	(23,915)	$	(30,911)

Weighted average remaining lease term - operating leases		3.10 years		3.24 years
Weighted average discount rate - operating leases		7.19%		7.16%

1. Charters-in of vessel assets:

During March 2020, two 2007-built MRs time chartered-in by the Company were arrested by a third party due to a legal dispute between said party and the ultimate owners of the vessels. As a result of the arrests, the entity that chartered these vessels to INSW was no longer able to perform its obligations under the time charter agreements and effectively terminated the time charter agreements. Accordingly, the Company derecognized lease liabilities and right of use assets associated with these agreements.

As of June 30, 2020, INSW had commitments to charter in one MR, two Aframaxes, one LR1 and one workboat employed in the Crude Tankers Lightering business. All of the charters-in, of which the two Aframaxes are bareboat charters with expiry dates ranging from December 2023 to March 2024 and the others are time charters with expiry dates ranging from July 2020 to August 2021, are accounted for as operating leases. Upon its expiry in July 2020, the Company redelivered the MR to its owner. The Company’s bareboat charters contain purchase options commencing in the first quarter of 2021. As of June 30, 2020, the Company has determined that the purchase options are not yet reasonably certain of being exercised. Lease liabilities related to time charters-in vessels exclude estimated days that the vessels will not be available for employment due to drydock because the Company does not pay charter hire when time chartered-in vessels are not available for its use.

Payments of lease liabilities and related number of operating days under these operating leases as of June 30, 2020 are as follows:

Bareboat Charters-in:


(Dollars in thousands)	Amount		Operating Days
2020	$	3,165	368
2021		6,278	730
2022		6,278	730
2023		4,532	556
Total lease payments		20,253	2,384
less imputed interest		(2,229)
Total operating lease liabilities	$	18,024

Time Charters-in:


(Dollars in thousands)	Amount		Operating Days
2020	$	1,783	368
2021		2,170	408
Total lease payments (lease component only)		3,953	776
less imputed interest		(142)
Total operating lease liabilities	$	3,811

2. Office and other space:

The Company has operating leases for offices and lightering workboat dock space. These leases have expiry dates ranging from August 2021 to December 2024. The lease for the workboat dock space contains renewal options executable by the Company for periods through December 2027. We have determined that the options through December 2024 are reasonably certain to be executed by the Company, and accordingly are included in the lease liability and right of use asset calculations for such lease.

Payments of lease liabilities for office and other space as of June 30, 2020 are as follows:


(Dollars in thousands)		Amount
2020	$	623
2021		936
2022		273
2023		229
2024		178
Total lease payments		2,239
less imputed interest		(159)
Total operating lease liabilities	$	2,080

Contracts under which the Company is a Lessor

See Note 13, “Revenue,” for discussion on the Company’s revenues from operating leases accounted for under ASC 842.

The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for six Panamaxes and four VLCCs and the related revenue days as of June 30, 2020 are as follows:


(Dollars in thousands)	Amount		Revenue Days
2020	$	51,815	1,057
2021		20,139	431
2022		16,425	365
2023		3,195	71
Future minimum revenues	$	91,574	1,924

Future minimum revenues do not include (i) the Company’s share of time charters entered into by the pools in which it participates, and (ii) the Company’s share of time charters entered into by the joint ventures, which the Company accounts for under the equity method. Revenues from a time charter are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the minimum future charter revenues, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future.

Six Months Ended June 30,

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows used for operating leases