Impairment of Long-lived Assets

12 Months Ended

Dec. 31, 2017

Impairment of Long-lived Assets [Abstract]

Impairment of Long-lived Assets

(3) Impairment of Long-lived Assets

During the fourth quarter of 2017, the Company recorded a $105,712,000 non-cash pre-tax impairment charge.  The after-tax effect of the charge was $66,975,000 or $1.20 per share.   The impairment charge was to reduce certain vessels to a fair value of $12,550,000 as the Company decided to put certain older out-of-service vessels up for sale in its marine transportation segment in response to lower equipment utilization, pricing pressure and expensive ballast water treatment system installations required in the next few years on some of the coastal tank barges.    Retiring some of the older coastal marine vessels reduces the fleet’s age profile and improves the efficiency of the fleet.

The vessels that the Company has committed to dispose of include 12 out-of-service coastal tank barges 21 inactive coastal tugboats and six inactive inland towboats. The tank barges will be scrapped or sold into international non-competing markets in 2018 and the tugboats and towboats will be sold or scrapped in domestic markets during 2018.   The fair market value of the vessels of $12,550,000 is presented in prepaid expenses and other current assets at December 31, 2017.