LEASES

Charters-in

As of December 31, 2017, the Company had commitments to charter in 10 vessels. All of the charters-in are accounted for as operating leases and all are bareboat charters. Lease expense relating to charters-in is included in charter hire expenses in the consolidated statements of operations. The base term for 9 vessels expire in December 2019. The Company holds options for the charters-in that can be exercised for 1, 3 or 5 years with the 1 year option only usable once, while the 3 and 5 year options are available forever. The lease payments for the charters-in are fixed throughout the option periods and the options are on a vessel by vessel basis that can be exercised individually. The option on one of the Company's vessel has been extended until December 2025. For the remaining 9 vessels, the Company is required to declare its intention under the options by December 11, 2018.

The future minimum commitments and related number of operating days under these operating leases are as follows:



At December 31,	Amount		Operating Days
2018	$	91,457	3,650
2019	111,819		3,470
2020	9,168		366
2021	9,143		365
2022	9,143		365
Thereafter	22,846		912
Net minimum lease payments	$	253,576	9,128

The bareboat charters-in provide for the payment of profit share to the owners of the vessels calculated in accordance with the respective charter agreements. Because such amounts and the periods impacted are not reasonably estimable, they are not currently reflected in the table above. Due to reserve funding requirements and current rate forecasts, no profits are currently expected to be paid to the owners in respect of the charter term through December 31, 2019. The charters in the above tables also provide the Company with renewal and purchase options.

Charters-out

The future minimum revenues, before reduction for brokerage commissions and which include rent escalations, expected to be received on noncancelable time charters and certain COAs for which minimum annual revenues can be reasonably estimated and the related revenue days (revenue days represent calendar days, less days that vessels are not available for employment due to repairs, drydock or lay-up) are as follows:



At December 31,	Amount		Revenue Days
2018	$	177,283	3,002
2019	94,961		1,449
2020	43,570		530
2021	26,219		319
2022	30,675		365
Thereafter	77,464		886
Net minimum lease receipts	$	450,172	6,551

Future minimum revenues do not include COAs for which minimum annual revenues cannot be reasonably estimated. Revenues from those COAs that are included in the table above, $22,698 (2018), $23,031 (2019) and $6,356 (2020), are based on minimum annual volumes of cargo to be loaded during the contract periods at a fixed price, and do not contemplate early termination of the COAs as provided in certain of the agreements. Amounts that would be due to the Company in the event of the cancellation of the COA contracts have not been reflected in the above table. 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.

Office space

The Company has lease obligations for office space that generally require fixed annul rental payments and may also include escalation clauses and renewal options.

The future minimum commitments under lease obligations for office space as of December 31, 2017 and for each of the next five years ended December 31 and thereafter, are as follows:



At December 31,	Amount
2018	$	627
2019	658
2020	635
2021	631
2022	649
Thereafter	573
Net minimum lease payments	$	3,773

The rental expense for office space, which is included in general and administrative expenses in the consolidated statements of operations, amounted to $647 in 2017, $1,324 in 2016 and $1,808 in 2015.