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 have a lease term of 12-months or less; 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 nine months ended September 30, 2022 and 2021 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 $0.7 million and $1.2 million for the three and nine months ended September 30, 2022, respectively, compared with $0.1 million and $0.3 million for the three and nine months ended September 30, 2021, 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)	September 30, 2022		December 31, 2021
Operating lease right-of-use assets	$	18,069	$	23,168

Current portion of operating lease liabilities	$	(8,323)	$	(8,393)
Long-term operating lease liabilities		(8,087)		(12,522)
Total operating lease liabilities	$	(16,410)	$	(20,915)

Weighted average remaining lease term - operating leases		5.49 years		5.15 years
Weighted average discount rate - operating leases		5.16%		5.42%

1. Charters-in of vessel assets:

As of September 30, 2022, INSW had commitments to charter in two Aframaxes and two LR1s. 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 two LR1s are time charters with expiring dates ranging from March 2023 to April 2023, are accounted for as operating leases. The Company’s bareboat charters contain purchase options. The Company determined on the lease commencement dates that the purchase options were not reasonably certain of being exercised. As of September 30, 2022, events have not occurred that would require a reassessment of such determinations.

Payments of lease liabilities and related number of operating days under these operating leases as of September 30, 2022 are as follows:

Bareboat Charters-in:


(Dollars in thousands)	Amount		Operating Days
2022	$	1,582	184
2023		4,532	556
Total lease payments		6,114	740
less imputed interest		(225)
Total operating lease liabilities	$	5,889

Time Charters-in:


(Dollars in thousands)	Amount		Operating Days
2022	$	1,215	184
2023		1,381	210
Total lease payments (lease component only)		2,596	394
less imputed interest		(13)
Total operating lease liabilities	$	2,583

2. Office and other space:

The Company has operating leases for offices and lightering workboat dock space. These leases have expiry dates ranging from July 2023 to May 2033. 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 the options 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 September 30, 2022 are as follows:


(Dollars in thousands)		Amount
2022	$	68
2023		229
2024		973
2025		998
2026		1,024
Thereafter		6,908
Total lease payments		10,200
less imputed interest		(2,262)
Total operating lease liabilities	$	7,938

Contracts under which the Company is a Lessor

See Note 14, “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 one MR, one LR2, one Suezmax and one VLCC and the related revenue days as of September 30, 2022 are as follows:


(Dollars in thousands)	Amount		Revenue Days
2022	$	9,940	332
2023		22,055	809
2024		7,280	224
Future minimum revenues	$	39,275	1,365

Future minimum revenues do not include the Company’s share of time charters entered into by the pools in which it participates. 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.

Nine Months Ended September 30,

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows used for operating leases