ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3542736 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
2200 Eller Drive, P.O. Box 13038, | ||
Fort Lauderdale, Florida | 33316 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ | Emerging growth company ¨ |
Part I. | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. |
ITEM 1. | FINANCIAL STATEMENTS |
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data, unaudited) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 324,564 | $ | 239,246 | |||
Restricted cash and restricted cash equivalents | 2,990 | 2,982 | |||||
Marketable securities | 41,445 | 42,761 | |||||
Receivables: | |||||||
Trade, net of allowance for doubtful accounts of $3,465 and $2,390 in 2018 and 2017, respectively | 151,217 | 110,465 | |||||
Other | 45,197 | 33,870 | |||||
Inventories | 5,139 | 4,377 | |||||
Prepaid expenses and other | 6,087 | 6,594 | |||||
Total current assets | 576,639 | 440,295 | |||||
Property and Equipment: | |||||||
Historical cost | 1,403,886 | 1,380,469 | |||||
Accumulated depreciation | (545,179 | ) | (502,544 | ) | |||
Net property and equipment | 858,707 | 877,925 | |||||
Investments, at Equity, and Advances to 50% or Less Owned Companies | 149,184 | 173,441 | |||||
Construction Reserve Funds | 5,908 | 51,339 | |||||
Goodwill | 32,767 | 32,761 | |||||
Intangible Assets, Net | 25,724 | 28,106 | |||||
Other Assets | 8,938 | 9,469 | |||||
$ | 1,657,867 | $ | 1,613,336 | ||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 155,737 | $ | 77,842 | |||
Accounts payable and accrued expenses | 56,533 | 44,013 | |||||
Other current liabilities | 66,179 | 57,330 | |||||
Total current liabilities | 278,449 | 179,185 | |||||
Long-Term Debt | 372,657 | 501,505 | |||||
Deferred Income Taxes | 99,565 | 101,422 | |||||
Deferred Gains and Other Liabilities | 60,502 | 77,863 | |||||
Total liabilities | 811,173 | 859,975 | |||||
Equity: | |||||||
SEACOR Holdings Inc. stockholders’ equity: | |||||||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued nor outstanding | — | — | |||||
Common stock, $.01 par value, 60,000,000 shares authorized; 38,914,817 and 38,656,505 shares issued in 2018 and 2017, respectively | 389 | 387 | |||||
Additional paid-in capital | 1,593,430 | 1,573,013 | |||||
Retained earnings | 479,495 | 419,128 | |||||
Shares held in treasury of 20,671,627 and 20,716,878 in 2018 and 2017, respectively, at cost | (1,366,773 | ) | (1,368,300 | ) | |||
Accumulated other comprehensive loss, net of tax | (444 | ) | (545 | ) | |||
706,097 | 623,683 | ||||||
Noncontrolling interests in subsidiaries | 140,597 | 129,678 | |||||
Total equity | 846,694 | 753,361 | |||||
$ | 1,657,867 | $ | 1,613,336 |
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except share data, unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
As Adjusted | As Adjusted | ||||||||||||||
Operating Revenues | $ | 220,257 | $ | 176,605 | $ | 621,912 | $ | 441,495 | |||||||
Costs and Expenses: | |||||||||||||||
Operating | 147,529 | 125,692 | 441,474 | 301,275 | |||||||||||
Administrative and general | 26,083 | 20,531 | 76,189 | 68,949 | |||||||||||
Depreciation and amortization | 18,616 | 20,501 | 57,069 | 54,689 | |||||||||||
192,228 | 166,724 | 574,732 | 424,913 | ||||||||||||
Gains on Asset Dispositions and Impairments, Net | 6,018 | 5,209 | 13,569 | 10,918 | |||||||||||
Operating Income | 34,047 | 15,090 | 60,749 | 27,500 | |||||||||||
Other Income (Expense): | |||||||||||||||
Interest income | 2,450 | 2,367 | 6,485 | 6,651 | |||||||||||
Interest expense | (8,335 | ) | (9,121 | ) | (25,502 | ) | (31,101 | ) | |||||||
Debt extinguishment gains (losses), net | (160 | ) | 3 | (5,609 | ) | (94 | ) | ||||||||
Marketable security gains (losses), net | 1,713 | (12,478 | ) | (1,303 | ) | (13,316 | ) | ||||||||
Derivative gains, net | — | — | — | 19,727 | |||||||||||
Foreign currency gains (losses), net | (328 | ) | 969 | 16 | 898 | ||||||||||
Other, net | 357 | 64 | 54,951 | 68 | |||||||||||
(4,303 | ) | (18,196 | ) | 29,038 | (17,167 | ) | |||||||||
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings of 50% or Less Owned Companies | 29,744 | (3,106 | ) | 89,787 | 10,333 | ||||||||||
Income Tax Expense (Benefit) | 3,362 | (12,795 | ) | 12,934 | (12,563 | ) | |||||||||
Income from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies | 26,382 | 9,689 | 76,853 | 22,896 | |||||||||||
Equity in Earnings of 50% or Less Owned Companies, Net of Tax | 821 | 488 | 1,915 | 2,929 | |||||||||||
Income from Continuing Operations | 27,203 | 10,177 | 78,768 | 25,825 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax | — | 10,927 | — | (23,150 | ) | ||||||||||
Net Income | 27,203 | 21,104 | 78,768 | 2,675 | |||||||||||
Net Income attributable to Noncontrolling Interests in Subsidiaries | 10,136 | 3,543 | 15,934 | 13,839 | |||||||||||
Net Income (Loss) attributable to SEACOR Holdings Inc. | $ | 17,067 | $ | 17,561 | $ | 62,834 | $ | (11,164 | ) | ||||||
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||
Continuing operations | $ | 0.94 | $ | 0.38 | $ | 3.48 | $ | 0.55 | |||||||
Discontinued operations | — | 0.62 | — | (1.20 | ) | ||||||||||
$ | 0.94 | $ | 1.00 | $ | 3.48 | $ | (0.65 | ) | |||||||
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||
Continuing operations | $ | 0.88 | $ | 0.38 | $ | 3.21 | $ | 0.55 | |||||||
Discontinued operations | — | 0.62 | — | (1.19 | ) | ||||||||||
$ | 0.88 | $ | 1.00 | $ | 3.21 | $ | (0.64 | ) | |||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic | 18,108,388 | 17,508,770 | 18,052,274 | 17,265,140 | |||||||||||
Diluted | 21,192,554 | 17,637,824 | 22,508,622 | 17,510,560 |
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Income | $ | 27,203 | $ | 21,104 | $ | 78,768 | $ | 2,675 | |||||||
Other Comprehensive Income: | |||||||||||||||
Foreign currency translation gains (losses) | (76 | ) | 425 | 59 | 2,147 | ||||||||||
Reclassification of foreign currency translation losses to foreign currency gains (losses), net | 15 | — | 15 | — | |||||||||||
Derivative losses on cash flow hedges | — | — | — | (389 | ) | ||||||||||
Reclassification of derivative losses on cash flow hedges to interest expense | — | — | — | 33 | |||||||||||
Reclassification of derivative losses on cash flow hedges to equity in earnings of 50% or less owned companies | — | — | — | 109 | |||||||||||
Other | — | 5 | — | (11 | ) | ||||||||||
(61 | ) | 430 | 74 | 1,889 | |||||||||||
Income tax benefit (expense) | 2 | (151 | ) | 27 | (605 | ) | |||||||||
(59 | ) | 279 | 101 | 1,284 | |||||||||||
Comprehensive Income | 27,144 | 21,383 | 78,869 | 3,959 | |||||||||||
Comprehensive Income attributable to Noncontrolling Interests in Subsidiaries | 10,136 | 3,543 | 15,934 | 14,000 | |||||||||||
Comprehensive Income (Loss) attributable to SEACOR Holdings Inc. | $ | 17,008 | $ | 17,840 | $ | 62,935 | $ | (10,041 | ) |
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in thousands, unaudited) | |||||||||||||||||||||||||||
SEACOR Holdings Inc. Stockholders’ Equity | Non- Controlling Interests In Subsidiaries | Total Equity | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Shares Held In Treasury | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
December 31, 2017 | $ | 387 | $ | 1,573,013 | $ | 419,128 | $ | (1,368,300 | ) | $ | (545 | ) | $ | 129,678 | $ | 753,361 | |||||||||||
Impact of adoption of accounting principle | — | — | (2,467 | ) | — | — | — | (2,467 | ) | ||||||||||||||||||
December 31, 2017, As Adjusted | 387 | 1,573,013 | 416,661 | (1,368,300 | ) | (545 | ) | 129,678 | 750,894 | ||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||
Employee Stock Purchase Plan | — | — | — | 1,527 | — | — | 1,527 | ||||||||||||||||||||
Exercise of stock options | 1 | 4,752 | — | — | — | — | 4,753 | ||||||||||||||||||||
Director stock awards | — | 106 | — | — | — | — | 106 | ||||||||||||||||||||
Restricted stock | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||
Net issuance of conversion option on exchange of convertible debt, net of tax | — | 12,735 | — | — | — | — | 12,735 | ||||||||||||||||||||
Purchase of conversion option in convertible debt, net of tax | — | (5 | ) | — | — | — | — | (5 | ) | ||||||||||||||||||
Amortization of share awards | — | 2,830 | — | — | — | — | 2,830 | ||||||||||||||||||||
Acquisition of a subsidiary with noncontrolling interests | — | — | — | — | — | 96 | 96 | ||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (5,111 | ) | (5,111 | ) | ||||||||||||||||||
Net income | — | — | 62,834 | — | — | 15,934 | 78,768 | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | 101 | — | 101 | ||||||||||||||||||||
September 30, 2018 | $ | 389 | $ | 1,593,430 | $ | 479,495 | $ | (1,366,773 | ) | $ | (444 | ) | $ | 140,597 | $ | 846,694 |
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Net Cash Provided by Operating Activities of Continuing Operations | $ | 35,799 | $ | 85,088 | |||
Cash Flows from Investing Activities of Continuing Operations: | |||||||
Purchases of property and equipment | (43,736 | ) | (99,306 | ) | |||
Proceeds from disposition of property and equipment | 15,952 | 27,614 | |||||
Investments in and advances to 50% or less owned companies | (9,836 | ) | (7,636 | ) | |||
Return of investments and advances from 50% or less owned companies | 8,176 | 9,676 | |||||
Proceeds from the sale of 50% or less owned companies | 78,015 | 5,000 | |||||
Payments received on third-party leases and notes receivable, net | 452 | 24,349 | |||||
Withdrawals from construction reserve funds | 45,431 | 37,714 | |||||
Deposits into construction reserve funds | — | (13,807 | ) | ||||
Business acquisitions, net of cash acquired | 310 | 5,250 | |||||
Net cash provided by (used in) investing activities of continuing operations | 94,764 | (11,146 | ) | ||||
Cash Flows from Financing Activities of Continuing Operations: | |||||||
Payments on long-term debt and capital lease obligations | (43,967 | ) | (133,151 | ) | |||
Proceeds from issuance of long-term debt, net of issue costs | (2,495 | ) | 38,900 | ||||
Purchase of conversion option in convertible debt | (5 | ) | (1,354 | ) | |||
Common stock acquired for treasury | — | (7,569 | ) | ||||
Proceeds from share award plans | 6,280 | 16,427 | |||||
Distributions to noncontrolling interests | (5,111 | ) | — | ||||
Net cash used in financing activities of continuing operations | (45,298 | ) | (86,747 | ) | |||
Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 61 | 856 | |||||
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents from Continuing Operations | 85,326 | (11,949 | ) | ||||
Cash Flows from Discontinued Operations: | |||||||
Operating Activities | — | 26,875 | |||||
Investing Activities | — | 2,720 | |||||
Financing Activities | — | (7,149 | ) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | — | 208 | |||||
Net Increase in Cash and Cash Equivalents from Discontinued Operations | — | 22,654 | |||||
Net Increase in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 85,326 | 10,705 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period | 242,228 | 258,887 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period | 327,554 | 269,592 | |||||
Restricted Cash and Restricted Cash Equivalents, End of Period | 2,990 | 2,436 | |||||
Cash and Cash Equivalents, End of Period | $ | 324,564 | $ | 267,156 |
2018 | |||
Balance at beginning of period | $ | 983 | |
Contract liabilities arising during the period | 4,374 | ||
Revenue recognized upon completion of performance obligations during the period | (2,291 | ) | |
Balance at end of period | $ | 3,066 |
Petroleum and chemical carriers - U.S.-flag | 25 |
Harbor and offshore tugs | 25 |
Ocean liquid tank barges | 25 |
Short-sea container/RORO(1) vessels | 20 |
Dry bulk carriers - U.S.-flag | 25 |
Inland river dry-cargo and specialty barges | 20 |
Inland river liquid tank barges | 25 |
Inland river towboats and harbor boats | 25 |
Terminal and fleeting facilities | 20 |
(1) | Roll On/Roll Off. |
2018 | 2017 | ||||||
Balance at beginning of period | $ | 72,453 | $ | 82,423 | |||
Deferred gains arising from asset sales | — | 7,720 | |||||
Amortization of deferred gains included in operating expenses as a reduction to rental expense | (8,991 | ) | (11,126 | ) | |||
Amortization of deferred gains included in gains on asset dispositions and impairments, net(1) | (6,988 | ) | (1,764 | ) | |||
Reclassification of deferred gains into historical cost on reacquired property and equipment | (3,052 | ) | — | ||||
Balance at end of period | $ | 53,422 | $ | 77,253 |
(1) | For the nine months ended September 30, 2018, the Company recognized previously deferred gains of $5.5 million due to a change in the lease duration for one U.S.-flag petroleum and chemical carrier. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
Net Income attributable to SEACOR | Average O/S Shares | Per Share | Net Income (Loss) Attributable to SEACOR | Average O/S Shares | Per Share | ||||||||||||||||
2018 | |||||||||||||||||||||
Basic Weighted Average Common Shares Outstanding | $ | 17,067 | 18,108,388 | $ | 0.94 | $ | 62,834 | 18,052,274 | $ | 3.48 | |||||||||||
Effect of Dilutive Share Awards: | |||||||||||||||||||||
Options and Restricted Stock(1) | — | 303,285 | — | 299,405 | |||||||||||||||||
Convertible Notes(2) | 1,625 | 2,780,881 | 9,495 | 4,156,943 | |||||||||||||||||
Diluted Weighted Average Common Shares Outstanding | $ | 18,692 | 21,192,554 | $ | 0.88 | $ | 72,329 | 22,508,622 | $ | 3.21 | |||||||||||
2017 | |||||||||||||||||||||
Basic Weighted Average Common Shares Outstanding | $ | 17,561 | 17,508,770 | $ | 1.00 | $ | (11,164 | ) | 17,265,140 | $ | (0.65 | ) | |||||||||
Effect of Dilutive Share Awards: | |||||||||||||||||||||
Options and Restricted Stock(3) | — | 129,054 | — | 245,420 | |||||||||||||||||
Convertible Notes(4) | — | — | — | — | |||||||||||||||||
Diluted Weighted Average Common Shares Outstanding | $ | 17,561 | 17,637,824 | $ | 1.00 | $ | (11,164 | ) | 17,510,560 | $ | (0.64 | ) |
(1) | For the three and nine months ended September 30, 2018, diluted earnings per common share of SEACOR excluded 295,074 and 292,169, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive. |
(2) | For the three months ended September 30, 2018, diluted earnings per common share of SEACOR excluded 1,408,719 of common shares issuable pursuant to the Company’s 3.0% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive. |
(3) | For the three and nine months ended September 30, 2017, diluted earnings per common share of SEACOR excluded 1,727,132 and 2,638,753, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive. Diluted weighted average shares outstanding are calculated based on continuing operations. |
(4) | For the three and nine months ended September 30, 2017, diluted earnings per common share of SEACOR excluded 1,889,027 and 2,488,460, respectively, of common shares issuable pursuant to the Company’s 2.5% Convertible Senior Notes and 2,801,147 and 2,801,147, respectively, of common shares issuable pursuant to the Company’s 3.0% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive. Diluted weighted average shares outstanding are calculated based on continuing operations. |
Trade and other receivables | $ | 1,264 | |
Other current assets | 170 | ||
Investments, at Equity, and Advances to 50% or Less Owned Companies | (3,219 | ) | |
Property and Equipment | 4,382 | ||
Intangible Assets | 950 | ||
Notes receivable contributed as equity | (1,904 | ) | |
Other Assets | 7 | ||
Accounts payable and other accrued liabilities(1) | (1,609 | ) | |
Other current liabilities | (269 | ) | |
Noncontrolling interests in subsidiaries | (82 | ) | |
Purchase price(2) | $ | (310 | ) |
(1) | Includes $1.3 million of consideration to be paid in two installments. |
(2) | Purchase price is net of cash acquired totaling $3.6 million. |
Statutory rate | 21.0 | % |
Income subject to tonnage tax | (2.4 | )% |
Noncontrolling interests | (3.7 | )% |
Foreign earnings not subject to U.S. income tax | (17.7 | )% |
Foreign taxes not creditable against U.S. income tax | 4.1 | % |
Subpart F income | 12.3 | % |
State taxes | 0.7 | % |
Other | 0.1 | % |
14.4 | % |
2018 | 2017 | ||||||
Exchange option liability on subsidiary convertible senior notes | $ | — | $ | 19,436 | |||
Forward currency exchange, option and future contracts | — | 291 | |||||
$ | — | $ | 19,727 |
Level 1 | Level 2 | Level 3 | |||||||||
ASSETS | |||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 327,554 | $ | — | $ | — | |||||
Marketable securities(1) | 41,445 | — | — | ||||||||
Construction reserve funds | 5,908 | — | — |
(1) | Marketable security gains (losses), net include unrealized gains of $1.7 million and unrealized losses of $7.1 million for the three months ended September 30, 2018 and 2017, respectively, related to marketable security positions held by the Company as of September 30, 2018. Marketable security gains (losses), net include unrealized losses of $1.3 million and $7.2 million for the nine months ended September 30, 2018 and 2017, respectively, related to marketable security positions held by the Company as of September 30, 2018. |
Estimated Fair Value | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
ASSETS | |||||||||||||||
Notes receivable from third parties (included in other receivables and other assets) | $ | 2,226 | $ | — | $ | 2,203 | $ | — | |||||||
Investments, at cost, in 50% or less owned companies (included in other assets) | 4,300 | see below | |||||||||||||
LIABILITIES | |||||||||||||||
Long-term debt, including current portion(1) | $ | 528,394 | $ | — | $ | 561,044 | $ | — |
(1) | The estimated fair value includes the embedded conversion options on the Company’s 3.0% Convertible Senior Notes and 3.25% Convertible Senior Notes. |
Level 1 | Level 2 | Level 3 | ||||||||||
ASSETS | ||||||||||||
Investments, at equity, and advances in 50% or less owned companies | $ | — | $ | 3,219 | $ | — |
Noncontrolling Interests | September 30, 2018 | December 31, 2017 | ||||||||||
Ocean Services: | ||||||||||||
SEA-Vista | 49% | $ | 139,566 | $ | 128,550 | |||||||
Inland Services: | ||||||||||||
Other | 3.0 | % | – | 51.8% | 841 | 977 | ||||||
Other | 5.0 | % | – | 11.8% | 190 | 151 | ||||||
$ | 140,597 | $ | 129,678 |
Director stock awards granted | 2,250 | |
Employee Stock Purchase Plan (“ESPP”) shares issued | 45,251 | |
Restricted stock awards granted | 121,850 | |
Stock Option Activities: | ||
Outstanding as of December 31, 2017 | 1,546,014 | |
Granted | 110,660 | |
Exercised | (134,212 | ) |
Outstanding as of September 30, 2018 | 1,522,462 | |
Shares available for future grants and ESPP purchases as of September 30, 2018 | 916,254 |
Remainder of 2018 | 2019 | Total | |||||||||
Ocean Services | $ | 106 | $ | — | $ | 106 | |||||
Inland Services | 2,478 | 2,690 | 5,168 | ||||||||
$ | 2,584 | $ | 2,690 | $ | 5,274 |
• | On April 8, 2013, the Company, ORM, and NRC were named as defendants in William and Dianna Fitzgerald v. BP Exploration et al., No. 2:13-CV-00650 (E.D. La.) (the “Fitzgerald Action”), which is a suit by a husband and wife whose son allegedly participated in the clean-up effort and became ill as a result of his exposure to oil and dispersants. While the decedent in the Fitzgerald Action’s claims against ORM and NRC were dismissed by virtue of the Remaining Eleven Plaintiffs’ Dismissal Order, the claim as against the Company remains stayed. |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
For the three months ended September 30, 2018 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
External customers | 109,939 | 78,845 | 30,259 | 1,214 | — | 220,257 | |||||||||||
Intersegment | — | — | 8 | — | (8 | ) | — | ||||||||||
109,939 | 78,845 | 30,267 | 1,214 | (8 | ) | 220,257 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Operating | 64,683 | 65,667 | 16,240 | 957 | (18 | ) | 147,529 | ||||||||||
Administrative and general | 9,170 | 3,230 | 7,389 | 606 | 5,688 | 26,083 | |||||||||||
Depreciation and amortization | 11,298 | 6,197 | 492 | 202 | 427 | 18,616 | |||||||||||
85,151 | 75,094 | 24,121 | 1,765 | 6,097 | 192,228 | ||||||||||||
Gains on Asset Dispositions, Net | 5,505 | 513 | — | — | — | 6,018 | |||||||||||
Operating Income (Loss) | 30,293 | 4,264 | 6,146 | (551 | ) | (6,105 | ) | 34,047 | |||||||||
Other Income (Expense): | |||||||||||||||||
Foreign currency losses, net | (24 | ) | (282 | ) | (12 | ) | — | (10 | ) | (328 | ) | ||||||
Other, net | (96 | ) | — | — | 452 | 1 | 357 | ||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 2,073 | (1,245 | ) | (13 | ) | 6 | — | 821 | |||||||||
Segment Profit (Loss) | 32,246 | 2,737 | 6,121 | (93 | ) | ||||||||||||
Other Income (Expense) not included in Segment Profit (Loss) | (4,332 | ) | |||||||||||||||
Less Equity Earnings included in Segment Profit (Loss) | (821 | ) | |||||||||||||||
Income Before Taxes and Equity Earnings | 29,744 |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
For the nine months ended September 30, 2018 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
External customers | 317,478 | 208,175 | 93,960 | 2,299 | — | 621,912 | |||||||||||
Intersegment | — | — | 47 | — | (47 | ) | — | ||||||||||
317,478 | 208,175 | 94,007 | 2,299 | (47 | ) | 621,912 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Operating | 205,060 | 176,209 | 58,945 | 1,349 | (89 | ) | 441,474 | ||||||||||
Administrative and general | 30,047 | 9,758 | 17,896 | 1,290 | 17,198 | 76,189 | |||||||||||
Depreciation and amortization | 35,563 | 18,674 | 1,284 | 264 | 1,284 | 57,069 | |||||||||||
270,670 | 204,641 | 78,125 | 2,903 | 18,393 | 574,732 | ||||||||||||
Gains on Asset Dispositions, Net | 7,391 | 6,178 | — | — | — | 13,569 | |||||||||||
Operating Income (Loss) | 54,199 | 9,712 | 15,882 | (604 | ) | (18,440 | ) | 60,749 | |||||||||
Other Income (Expense): | |||||||||||||||||
Foreign currency gains (losses), net | (151 | ) | 238 | (27 | ) | 1 | (45 | ) | 16 | ||||||||
Other, net | 585 | 14 | — | 54,354 | (2 | ) | 54,951 | ||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 3,655 | (3,115 | ) | 90 | 1,285 | — | 1,915 | ||||||||||
Segment Profit | 58,288 | 6,849 | 15,945 | 55,036 | |||||||||||||
Other Income (Expense) not included in Segment Profit | (25,929 | ) | |||||||||||||||
Less Equity Earnings included in Segment Profit | (1,915 | ) | |||||||||||||||
Income Before Taxes and Equity Earnings | 89,787 | ||||||||||||||||
Capital Expenditures | 38,786 | 4,075 | — | 747 | 128 | 43,736 | |||||||||||
As of September 30, 2018 | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Historical cost | 929,825 | 437,510 | 1,227 | 5,192 | 30,132 | 1,403,886 | |||||||||||
Accumulated depreciation | (331,625 | ) | (190,493 | ) | (1,007 | ) | (265 | ) | (21,789 | ) | (545,179 | ) | |||||
Net property and equipment | 598,200 | 247,017 | 220 | 4,927 | 8,343 | 858,707 | |||||||||||
Investments, at Equity, and Advances to 50% or Less Owned Companies | 62,999 | 61,304 | 345 | 24,536 | — | 149,184 | |||||||||||
Inventories | 2,509 | 2,258 | 214 | 158 | — | 5,139 | |||||||||||
Goodwill | 1,852 | 2,409 | 28,506 | — | — | 32,767 | |||||||||||
Intangible Assets | 9,297 | 9,365 | 7,062 | — | — | 25,724 | |||||||||||
Other current and long-term assets, excluding cash and near cash assets(1) | 54,416 | 78,461 | 63,578 | 2,177 | 12,807 | 211,439 | |||||||||||
Segment Assets | 729,273 | 400,814 | 99,925 | 31,798 | |||||||||||||
Cash and near cash assets(1) | 374,907 | ||||||||||||||||
Total Assets | 1,657,867 |
(1) | Cash and near cash assets includes cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds. |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
For the nine months ended September 30, 2018 | |||||||||||||||||
Revenues from Contracts with Customers: | |||||||||||||||||
Voyage charters | 66,496 | — | — | — | — | 66,496 | |||||||||||
Contracts of affreightment | 9,101 | 159,406 | — | — | — | 168,507 | |||||||||||
Harbor & ocean towing | 53,777 | — | — | — | — | 53,777 | |||||||||||
Unit freight | 43,384 | — | — | — | — | 43,384 | |||||||||||
Terminal operations | — | 27,291 | — | — | — | 27,291 | |||||||||||
Fleeting operations | — | 13,325 | — | — | — | 13,325 | |||||||||||
Time and material contracts | — | — | 84,896 | — | — | 84,896 | |||||||||||
Retainer contracts | — | — | 7,456 | — | — | 7,456 | |||||||||||
Product sales(1) | — | — | — | 1,618 | — | 1,618 | |||||||||||
Other | 2,414 | 2,618 | 1,655 | 425 | (47 | ) | 7,065 | ||||||||||
Lease Revenues: | |||||||||||||||||
Time charter, bareboat charter and rental income | 142,306 | 5,535 | — | 256 | — | 148,097 | |||||||||||
317,478 | 208,175 | 94,007 | 2,299 | (47 | ) | 621,912 |
(1) | Costs of goods sold related to product sales was $1.2 million. |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||
For the three months ended September 30, 2017 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
External customers | 103,780 | 63,042 | 9,667 | 116 | — | 176,605 | |||||||||||
Intersegment | — | — | 14 | — | (14 | ) | — | ||||||||||
103,780 | 63,042 | 9,681 | 116 | (14 | ) | 176,605 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Operating | 65,866 | 53,822 | 6,068 | — | (64 | ) | 125,692 | ||||||||||
Administrative and general | 9,612 | 3,141 | 2,960 | 180 | 4,638 | 20,531 | |||||||||||
Depreciation and amortization | 13,516 | 6,329 | 206 | — | 450 | 20,501 | |||||||||||
88,994 | 63,292 | 9,234 | 180 | 5,024 | 166,724 | ||||||||||||
Gains on Asset Dispositions, Net | 73 | 5,136 | — | — | — | 5,209 | |||||||||||
Operating Income (Loss) | 14,859 | 4,886 | 447 | (64 | ) | (5,038 | ) | 15,090 | |||||||||
Other Income (Expense): | |||||||||||||||||
Foreign currency gains (losses), net | 5 | 992 | 29 | (12 | ) | (45 | ) | 969 | |||||||||
Other, net | 59 | — | — | — | 5 | 64 | |||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 1,493 | (1,235 | ) | 100 | 130 | — | 488 | ||||||||||
Segment Profit | 16,416 | 4,643 | 576 | 54 | |||||||||||||
Other Income (Expense) not included in Segment Profit | (19,229 | ) | |||||||||||||||
Less Equity Earnings included in Segment Profit | (488 | ) | |||||||||||||||
Loss Before Taxes, Equity Earnings and Discontinued Operations | (3,106 | ) |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||
For the nine months ended September 30, 2017 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
External customers | 243,442 | 174,040 | 23,665 | 348 | — | 441,495 | |||||||||||
Intersegment | — | — | 85 | — | (85 | ) | — | ||||||||||
243,442 | 174,040 | 23,750 | 348 | (85 | ) | 441,495 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Operating | 137,070 | 148,978 | 15,483 | — | (256 | ) | 301,275 | ||||||||||
Administrative and general | 24,728 | 11,658 | 8,641 | 559 | 23,363 | 68,949 | |||||||||||
Depreciation and amortization | 32,792 | 19,404 | 613 | — | 1,880 | 54,689 | |||||||||||
194,590 | 180,040 | 24,737 | 559 | 24,987 | 424,913 | ||||||||||||
Gains (Losses) on Asset Dispositions and Impairments, Net | (342 | ) | 11,260 | — | — | — | 10,918 | ||||||||||
Operating Income (Loss) | 48,510 | 5,260 | (987 | ) | (211 | ) | (25,072 | ) | 27,500 | ||||||||
Other Income (Expense): | |||||||||||||||||
Derivative gains, net | — | — | — | — | 19,727 | 19,727 | |||||||||||
Foreign currency gains (losses), net | 8 | 730 | 62 | (12 | ) | 110 | 898 | ||||||||||
Other, net | 118 | — | — | (300 | ) | 250 | 68 | ||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 8,150 | (4,877 | ) | 237 | (581 | ) | — | 2,929 | |||||||||
Segment Profit (Loss) | 56,786 | 1,113 | (688 | ) | (1,104 | ) | |||||||||||
Other Income (Expense) not included in Segment Profit (Loss) | (37,860 | ) | |||||||||||||||
Less Equity Earnings included in Segment Profit (Loss) | (2,929 | ) | |||||||||||||||
Income Before Taxes, Equity Earnings and Discontinued Operations | 10,333 | ||||||||||||||||
Capital Expenditures | 66,137 | 32,901 | 60 | — | 208 | 99,306 | |||||||||||
As of September 30, 2017 | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Historical cost | 1,028,685 | 446,759 | 1,227 | — | 29,532 | 1,506,203 | |||||||||||
Accumulated depreciation | (290,400 | ) | (175,669 | ) | (915 | ) | — | (20,065 | ) | (487,049 | ) | ||||||
Net property and equipment | 738,285 | 271,090 | 312 | — | 9,467 | 1,019,154 | |||||||||||
Investments, at Equity, and Advances to 50% or Less Owned Companies | 53,388 | 65,738 | 782 | 55,479 | — | 175,387 | |||||||||||
Inventories | 2,032 | 1,866 | 54 | — | — | 3,952 | |||||||||||
Goodwill | 1,852 | 2,415 | 28,506 | — | — | 32,773 | |||||||||||
Intangible Assets | 12,285 | 10,860 | 7,510 | — | — | 30,655 | |||||||||||
Other current and long-term assets, excluding cash and near cash assets(1) | 44,845 | 54,295 | 13,802 | 1,807 | 22,251 | 137,000 | |||||||||||
Segment Assets | 852,687 | 406,264 | 50,966 | 57,286 | |||||||||||||
Cash and near cash assets(1) | 384,044 | ||||||||||||||||
Total Assets | 1,782,965 |
(1) | Cash and near cash assets includes cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds. |
Ocean Services $’000 | Inland Services $’000 | Witt O’Brien’s $’000 | Other $’000 | Corporate and Eliminations $’000 | Total $’000 | ||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||
For the nine months ended September 30, 2017 | |||||||||||||||||
Revenues from Contracts with Customers: | |||||||||||||||||
Voyage charters | 15,311 | — | — | — | — | 15,311 | |||||||||||
Contracts of affreightment | 9,315 | 130,770 | — | — | — | 140,085 | |||||||||||
Harbor & ocean towing | 49,184 | — | — | — | — | 49,184 | |||||||||||
Unit freight | 36,763 | — | — | — | — | 36,763 | |||||||||||
Terminal operations | — | 23,195 | — | — | — | 23,195 | |||||||||||
Fleeting operations | — | 11,654 | — | — | — | 11,654 | |||||||||||
Time and material contracts | — | — | 11,887 | — | — | 11,887 | |||||||||||
Retainer contracts | — | — | 7,581 | — | — | 7,581 | |||||||||||
Other | 1,099 | 2,522 | 4,282 | 348 | (85 | ) | 8,166 | ||||||||||
Lease Revenues: | |||||||||||||||||
Time charter, bareboat charter and rental income | 131,770 | 5,899 | — | — | — | 137,669 | |||||||||||
243,442 | 174,040 | 23,750 | 348 | (85 | ) | 441,495 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||
SEACOR Marine | |||||||
Operating Revenues | $ | — | $ | 62,291 | |||
Costs and Expenses: | |||||||
Operating | — | 65,888 | |||||
Administrative and general | — | 29,682 | |||||
Depreciation and amortization | — | 22,181 | |||||
— | 117,751 | ||||||
Gains on Asset Dispositions, Net | — | 4,219 | |||||
Operating Loss | — | (51,241 | ) | ||||
Other Income, Net | — | 1,780 | |||||
Income Tax Benefit | — | (12,931 | ) | ||||
Equity in Earnings of 50% or Less Owned Companies, Net of Tax | — | 1,663 | |||||
Net Loss | $ | — | $ | (34,867 | ) | ||
Net Loss Attributable to Noncontrolling Interests | $ | — | $ | (1,892 | ) | ||
ICP | |||||||
Operating Revenues | $ | — | $ | 78,061 | |||
Costs and Expenses: | |||||||
Operating | — | 76,306 | |||||
Administrative and general | — | 2,109 | |||||
Depreciation and amortization | — | 2,354 | |||||
— | 80,769 | ||||||
Operating Loss | — | (2,708 | ) | ||||
Other Income, Net (including gain on sale of business) | 18,223 | 20,558 | |||||
Income Tax Expense | 7,296 | 7,363 | |||||
Net Income | $ | 10,927 | $ | 10,487 | |||
Net Loss Attributable to Noncontrolling Interests | $ | — | $ | (539 | ) | ||
Eliminations | |||||||
Operating Revenues | $ | — | $ | (1,176 | ) | ||
Costs and Expenses: | |||||||
Operating | — | (1,289 | ) | ||||
Administrative and general | — | (42 | ) | ||||
— | (1,331 | ) | |||||
Operating Income | — | 155 | |||||
Other Income, Net | — | 1,738 | |||||
Income Tax Expense | — | 663 | |||||
Net Income | $ | — | $ | 1,230 | |||
Income (Loss) from Discontinued Operations, Net of Tax | $ | 10,927 | $ | (23,150 | ) |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Ocean Transportation & Logistics Services | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | |||||||||||||||
Operating Revenues: | ||||||||||||||||||||||
United States | 88,365 | 80 | 91,794 | 88 | 257,938 | 81 | 204,738 | 84 | ||||||||||||||
Foreign | 21,574 | 20 | 11,986 | 12 | 59,540 | 19 | 38,704 | 16 | ||||||||||||||
109,939 | 100 | 103,780 | 100 | 317,478 | 100 | 243,442 | 100 | |||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||
Operating: | ||||||||||||||||||||||
Personnel | 23,124 | 21 | 23,730 | 23 | 69,007 | 22 | 53,380 | 22 | ||||||||||||||
Repairs and maintenance | 5,584 | 5 | 4,026 | 4 | 17,185 | 5 | 10,100 | 4 | ||||||||||||||
Dry-docking | 1,888 | 2 | 6,883 | 7 | 11,484 | 4 | 10,273 | 4 | ||||||||||||||
Insurance and loss reserves | 1,691 | 2 | 1,578 | 2 | 5,225 | 2 | 4,960 | 2 | ||||||||||||||
Fuel, lubes and supplies | 9,067 | 8 | 5,492 | 5 | 27,690 | 9 | 12,790 | 5 | ||||||||||||||
Leased-in equipment | 8,452 | 8 | 6,146 | 6 | 30,965 | 10 | 18,573 | 8 | ||||||||||||||
Other | 14,877 | 13 | 18,011 | 17 | 43,504 | 13 | 26,994 | 11 | ||||||||||||||
64,683 | 59 | 65,866 | 64 | 205,060 | 65 | 137,070 | 56 | |||||||||||||||
Administrative and general | 9,170 | 8 | 9,612 | 9 | 30,047 | 9 | 24,728 | 10 | ||||||||||||||
Depreciation and amortization | 11,298 | 10 | 13,516 | 13 | 35,563 | 11 | 32,792 | 14 | ||||||||||||||
85,151 | 77 | 88,994 | 86 | 270,670 | 85 | 194,590 | 80 | |||||||||||||||
Gains (Losses) on Asset Dispositions and Impairments, Net | 5,505 | 5 | 73 | — | 7,391 | 2 | (342 | ) | — | |||||||||||||
Operating Income | 30,293 | 28 | 14,859 | 14 | 54,199 | 17 | 48,510 | 20 | ||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||
Foreign currency gains (losses), net | (24 | ) | — | 5 | — | (151 | ) | — | 8 | — | ||||||||||||
Other, net | (96 | ) | — | 59 | — | 585 | — | 118 | — | |||||||||||||
Equity in Earnings of 50% or Less Owned Companies, Net of Tax | 2,073 | 1 | 1,493 | 2 | 3,655 | 1 | 8,150 | 3 | ||||||||||||||
Segment Profit(1) | 32,246 | 29 | 16,416 | 16 | 58,288 | 18 | 56,786 | 23 |
(1) | Includes amounts attributable to both SEACOR and noncontrolling interests. See “Item 1. Financial Statements—Note 9. Noncontrolling Interests in Subsidiaries” included in Part I of this Quarterly Report on Form 10-Q. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | ||||||||||||
Operating Revenues: | |||||||||||||||||||
Petroleum Transportation: | |||||||||||||||||||
Time charter | 27,293 | 25 | 31,803 | 31 | 76,510 | 24 | 89,736 | 37 | |||||||||||
Bareboat charter | 9,252 | 8 | 7,886 | 7 | 27,453 | 8 | 25,088 | 10 | |||||||||||
Voyage charter | 4,443 | 4 | 1,269 | 1 | 11,833 | 4 | 3,863 | 2 | |||||||||||
Harbor, ocean towing and bunkering | 20,347 | 18 | 18,867 | 18 | 63,087 | 20 | 56,040 | 23 | |||||||||||
PCTC, liner and short-sea transportation: | |||||||||||||||||||
Time charter(1) | 10,692 | 10 | 10,090 | 10 | 29,033 | 9 | 10,090 | 4 | |||||||||||
Voyage charter | 11,253 | 10 | 9,411 | 9 | 35,912 | 11 | 9,411 | 4 | |||||||||||
Unit freight | 14,964 | 14 | 12,433 | 12 | 43,384 | 14 | 36,763 | 15 | |||||||||||
Dry bulk transportation: | |||||||||||||||||||
Contracts of affreightment | 1,236 | 1 | 9,315 | 9 | 9,101 | 3 | 9,315 | 4 | |||||||||||
Voyage charter | 9,542 | 9 | 2,037 | 2 | 18,751 | 6 | 2,037 | 1 | |||||||||||
Technical management services | 917 | 1 | 669 | 1 | 2,414 | 1 | 1,099 | — | |||||||||||
109,939 | 100 | 103,780 | 100 | 317,478 | 100 | 243,442 | 100 |
(1) | Includes MSP revenues of $4.8 million and $14.8 million for the three and nine months ended September 30, 2018, respectively, and $4.7 million for the three and nine months ended September 30, 2017. |
Owned | Leased-in | Joint Ventured | Total | ||||||||
2018 | |||||||||||
Petroleum Transportation: | |||||||||||
Petroleum and chemical carriers - U.S.-flag | 7 | 3 | — | 10 | |||||||
Harbor, Ocean Towing and Bunkering: | |||||||||||
Harbor tugs - U.S.-flag | 19 | 5 | — | 24 | |||||||
Harbor tugs - Foreign-flag | 6 | — | 2 | 8 | |||||||
Offshore tug - U.S.-flag | 1 | — | — | 1 | |||||||
Ocean liquid tank barges - U.S.-flag | 5 | — | — | 5 | |||||||
Ocean liquid tank barge - Foreign-flag | — | — | 1 | 1 | |||||||
PCTC, Liner and Short-Sea Transportation: | |||||||||||
PCTC(1) - U.S.-flag | — | 4 | — | 4 | |||||||
Short-sea container/RORO(2) - Foreign-flag | 9 | — | — | 9 | |||||||
RORO(2)/Deck barges - U.S.-flag | — | — | 7 | 7 | |||||||
Rail ferries - Foreign-flag | — | — | 2 | 2 | |||||||
Dry bulk Transportation: | |||||||||||
Bulk carriers - U.S.-flag | 2 | — | — | 2 | |||||||
49 | 12 | 12 | 73 | ||||||||
2017 | |||||||||||
Petroleum Transportation: | |||||||||||
Petroleum and chemical carriers - U.S.-flag | 8 | 3 | — | 11 | |||||||
Harbor, Ocean Towing and Bunkering: | |||||||||||
Harbor tugs - U.S.-flag | 15 | 8 | — | 23 | |||||||
Harbor tugs - Foreign-flag | 6 | — | 2 | 8 | |||||||
Offshore tug - U.S.-flag | 1 | — | — | 1 | |||||||
Ocean liquid tank barges - U.S.-flag | 5 | — | — | 5 | |||||||
Ocean liquid tank barge - Foreign-flag | — | — | 1 | 1 | |||||||
PCTC, Liner and Short-Sea Transportation: | |||||||||||
PCTC(1) - U.S.-flag | — | 4 | — | 4 | |||||||
Short-sea container/RORO(2) - Foreign-flag | 7 | — | — | 7 | |||||||
RORO(2)/Deck barges - U.S.-flag | — | — | 7 | 7 | |||||||
Rail ferries - Foreign-flag | — | — | 2 | 2 | |||||||
Dry Bulk Transportation: | |||||||||||
Bulk carrier - U.S.-flag | 2 | — | — | 2 | |||||||
44 | 15 | 12 | 71 |
(1) | Pure Car/Truck Carrier. |
(2) | Roll On/Roll Off. |
Inland Transportation & Logistics Services | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | ||||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
United States | 76,367 | 97 | 61,133 | 97 | 200,247 | 96 | 166,894 | 96 | |||||||||||||||
Foreign | 2,478 | 3 | 1,909 | 3 | 7,928 | 4 | 7,146 | 4 | |||||||||||||||
78,845 | 100 | 63,042 | 100 | 208,175 | 100 | 174,040 | 100 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating: | |||||||||||||||||||||||
Barge logistics | 45,549 | 58 | 39,953 | 63 | 127,135 | 61 | 107,243 | 62 | |||||||||||||||
Personnel | 4,220 | 5 | 4,249 | 7 | 13,271 | 7 | 12,831 | 7 | |||||||||||||||
Repairs and maintenance | 1,554 | 2 | 897 | 2 | 4,310 | 2 | 3,057 | 2 | |||||||||||||||
Insurance and loss reserves | 712 | 1 | 879 | 1 | 1,954 | 1 | 2,051 | 1 | |||||||||||||||
Fuel, lubes and supplies | 1,950 | 2 | 1,367 | 2 | 5,783 | 3 | 4,793 | 3 | |||||||||||||||
Leased-in equipment | 2,980 | 4 | 1,408 | 2 | 7,000 | 3 | 5,576 | 3 | |||||||||||||||
Other | 4,614 | 6 | 3,926 | 6 | 12,473 | 6 | 10,600 | 6 | |||||||||||||||
Net barge pool earnings attributable to third parties | 4,088 | 5 | 1,143 | 2 | 4,283 | 2 | 2,827 | 2 | |||||||||||||||
65,667 | 83 | 53,822 | 85 | 176,209 | 85 | 148,978 | 86 | ||||||||||||||||
Administrative and general | 3,230 | 4 | 3,141 | 5 | 9,758 | 4 | 11,658 | 6 | |||||||||||||||
Depreciation and amortization | 6,197 | 8 | 6,329 | 10 | 18,674 | 9 | 19,404 | 11 | |||||||||||||||
75,094 | 95 | 63,292 | 100 | 204,641 | 98 | 180,040 | 103 | ||||||||||||||||
Gains on Asset Dispositions, Net | 513 | — | 5,136 | 8 | 6,178 | 3 | 11,260 | 6 | |||||||||||||||
Operating Income | 4,264 | 5 | 4,886 | 8 | 9,712 | 5 | 5,260 | 3 | |||||||||||||||
Other Income: | |||||||||||||||||||||||
Foreign currency gains (losses), net | (282 | ) | — | 992 | 1 | 238 | — | 730 | — | ||||||||||||||
Other, net | — | — | — | — | 14 | — | — | — | |||||||||||||||
Equity in Losses of 50% or Less Owned Companies, Net of Tax | (1,245 | ) | (2 | ) | (1,235 | ) | (2 | ) | (3,115 | ) | (2 | ) | (4,877 | ) | (2 | ) | |||||||
Segment Profit(1) | 2,737 | 3 | 4,643 | 7 | 6,849 | 3 | 1,113 | 1 |
(1) | Includes amounts attributable to both SEACOR and noncontrolling interests. See “Item 1. Financial Statements—Note 9. Noncontrolling Interests in Subsidiaries” included in Part I of this Quarterly Report on Form 10-Q. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | ||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||||
Operating Revenues: | |||||||||||||||||||
Dry-cargo barge pools(1) | 59,782 | 76 | 45,911 | 73 | 151,478 | 73 | 123,624 | 71 | |||||||||||
Charter-out of dry-cargo barges | — | — | 560 | 1 | 5 | — | 1,663 | 1 | |||||||||||
International liquid tank barge operations | 2,477 | 3 | 1,909 | 3 | 7,928 | 4 | 7,146 | 4 | |||||||||||
Terminal operations | 9,590 | 12 | 8,505 | 13 | 28,453 | 14 | 24,449 | 14 | |||||||||||
Fleeting operations | 5,162 | 7 | 4,472 | 7 | 15,190 | 7 | 13,380 | 8 | |||||||||||
Inland river towboat operations and other activities | 1,834 | 2 | 1,685 | 3 | 5,121 | 2 | 3,778 | 2 | |||||||||||
78,845 | 100 | 63,042 | 100 | 208,175 | 100 | 174,040 | 100 |
(1) | Operating revenues for the three and nine months ended September 30, 2018 includes $25.4 million and $63.2 million, respectively, attributable to third-party barge owners participating in dry-cargo barge pools managed by the Company. Operating revenues for the three and nine months ended September 30, 2017 includes $18.4 million and $49.1 million, respectively, attributable to third-party barge owners participating in dry-cargo barge pools managed by the Company. |
Owned | Leased-in | Joint Ventured | Pooled or Managed | Total | ||||||||||
2018 | ||||||||||||||
Dry-cargo barges | 611 | 50 | 258 | 488 | 1,407 | |||||||||
Liquid tank barges | 20 | — | — | — | 20 | |||||||||
Specialty barges | 5 | — | — | — | 5 | |||||||||
Towboats: | ||||||||||||||
4,000 hp - 6,600 hp | 3 | 4 | 11 | — | 18 | |||||||||
3,300 hp - 3,900 hp | 1 | — | 2 | — | 3 | |||||||||
Less than 3,200 hp | 2 | — | — | — | 2 | |||||||||
Harbor boats: | ||||||||||||||
1,100 hp - 2,000 hp | 9 | 6 | — | — | 15 | |||||||||
Less than 1,100 hp | 9 | — | — | — | 9 | |||||||||
660 | 60 | 271 | 488 | 1,479 | ||||||||||
2017 | ||||||||||||||
Dry-cargo barges | 641 | 50 | 258 | 494 | 1,443 | |||||||||
Liquid tank barges | 20 | — | — | — | 20 | |||||||||
Specialty barges | 10 | — | — | — | 10 | |||||||||
Towboats: | ||||||||||||||
4,000 hp - 6,600 hp | 3 | 4 | 11 | — | 18 | |||||||||
3,300 hp - 3,900 hp | 1 | — | 2 | — | 3 | |||||||||
Less than 3,200 hp | 2 | — | — | — | 2 | |||||||||
Harbor boats: | ||||||||||||||
1,100 hp - 2,000 hp | 9 | 6 | — | — | 15 | |||||||||
Less than 1,100 hp | 9 | — | — | — | 9 | |||||||||
695 | 60 | 271 | 494 | 1,520 |
Witt O'Brien's | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | |||||||||||||||
Operating Revenues: | ||||||||||||||||||||||
United States | 29,388 | 97 | 8,642 | 89 | 92,132 | 98 | 21,396 | 90 | ||||||||||||||
Foreign | 879 | 3 | 1,039 | 11 | 1,875 | 2 | 2,354 | 10 | ||||||||||||||
30,267 | 100 | 9,681 | 100 | 94,007 | 100 | 23,750 | 100 | |||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||
Operating | 16,240 | 54 | 6,068 | 63 | 58,945 | 63 | 15,483 | 65 | ||||||||||||||
Administrative and general | 7,389 | 24 | 2,960 | 30 | 17,896 | 19 | 8,641 | 36 | ||||||||||||||
Depreciation and amortization | 492 | 2 | 206 | 2 | 1,284 | 1 | 613 | 3 | ||||||||||||||
24,121 | 80 | 9,234 | 95 | 78,125 | 83 | 24,737 | 104 | |||||||||||||||
Operating Income (Loss) | 6,146 | 20 | 447 | 5 | 15,882 | 17 | (987 | ) | (4 | ) | ||||||||||||
Other Income: | ||||||||||||||||||||||
Foreign currency gains (losses), net | (12 | ) | — | 29 | — | (27 | ) | — | 62 | — | ||||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (13 | ) | — | 100 | 1 | 90 | — | 237 | 1 | |||||||||||||
Segment Profit (Loss) | 6,121 | 20 | 576 | 6 | 15,945 | 17 | (688 | ) | (3 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | ||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
United States | 1,214 | 100 | — | — | 2,156 | 94 | — | — | |||||||||||||||
Foreign | — | — | 116 | 100 | 143 | 6 | 348 | 100 | |||||||||||||||
1,214 | 100 | 116 | 100 | 2,299 | 100 | 348 | 100 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating | 957 | 79 | — | — | 1,349 | 59 | — | — | |||||||||||||||
Administrative and general | 606 | 50 | 180 | 155 | 1,290 | 56 | 559 | 161 | |||||||||||||||
Depreciation and amortization | 202 | 16 | — | — | 264 | 11 | — | — | |||||||||||||||
1,765 | 145 | 180 | 155 | 2,903 | 126 | 559 | 161 | ||||||||||||||||
Operating Loss | (551 | ) | (45 | ) | (64 | ) | (55 | ) | (604 | ) | (26 | ) | (211 | ) | (61 | ) | |||||||
Other Income: | |||||||||||||||||||||||
Foreign currency losses, net | — | — | (12 | ) | (10 | ) | 1 | — | (12 | ) | (3 | ) | |||||||||||
Other, net(2) | 452 | 37 | — | — | 54,354 | n/m | (300 | ) | (86 | ) | |||||||||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax(2) | 6 | — | 130 | 112 | 1,285 | 56 | (581 | ) | (167 | ) | |||||||||||||
Segment Profit (Loss)(1)(2) | (93 | ) | (8 | ) | 54 | 47 | 55,036 | n/m | (1,104 | ) | (317 | ) |
(1) | Includes amounts attributable to both SEACOR and noncontrolling interests. See “Item 1. Financial Statements—Note 9. Noncontrolling Interests in Subsidiaries” included in Part I of this Quarterly Report on Form 10-Q. |
(2) | The balance as a percentage of operating revenues is not meaningful (“n/m”). |
Corporate and Eliminations | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||
Corporate Expenses | (6,136 | ) | (5,059 | ) | (18,534 | ) | (25,129 | ) | |||
Eliminations | 31 | 21 | 94 | 57 | |||||||
Operating Loss | (6,105 | ) | (5,038 | ) | (18,440 | ) | (25,072 | ) | |||
Other Income (Expense): | |||||||||||
Derivative gains, net | — | — | — | 19,727 | |||||||
Foreign currency gains (losses), net | (10 | ) | (45 | ) | (45 | ) | 110 | ||||
Other, net | 1 | 5 | (2 | ) | 250 |
Other Income (Expense) not included in Segment Profit (Loss) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||
Interest income | 2,450 | 2,367 | 6,485 | 6,651 | |||||||
Interest expense | (8,335 | ) | (9,121 | ) | (25,502 | ) | (31,101 | ) | |||
Debt extinguishment gains (losses), net | (160 | ) | 3 | (5,609 | ) | (94 | ) | ||||
Marketable security gains (losses), net | 1,713 | (12,478 | ) | (1,303 | ) | (13,316 | ) | ||||
(4,332 | ) | (19,229 | ) | (25,929 | ) | (37,860 | ) |
Remainder of 2018 | 2019 | Total | |||||||||
Ocean Services | $ | 106 | $ | — | $ | 106 | |||||
Inland Services | 2,478 | 2,690 | 5,168 | ||||||||
$ | 2,584 | $ | 2,690 | $ | 5,274 |
Remainder of 2018 | $ | 149,609 | |
2019 | 8,511 | ||
2020 | 214,581 | ||
2021 | 500 | ||
2022 | 64,958 | ||
Years subsequent to 2022 | 124,148 | ||
$ | 562,307 |
Summary of Cash Flows | |||||
Nine Months Ended September 30, | |||||
2018 | 2017 | ||||
$’000 | $’000 | ||||
Cash flows provided by or (used in): | |||||
Operating Activities-Continuing Operations | 35,799 | 85,088 | |||
Operating Activities-Discontinued Operations | — | 26,875 | |||
Investing Activities-Continuing Operations | 94,764 | (11,146 | ) | ||
Investing Activities-Discontinued Operations | — | 2,720 | |||
Financing Activities-Continuing Operations | (45,298 | ) | (86,747 | ) | |
Financing Activities-Discontinued Operations | — | (7,149 | ) | ||
Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents-Continuing Operations | 61 | 856 | |||
Effects of Exchange Rate Changes on Cash and Cash Equivalents-Discontinued Operations | — | 208 | |||
Increase in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 85,326 | 10,705 |
Nine Months Ended September 30, | |||||
2018 | 2017 | ||||
$’000 | $’000 | ||||
Operating income from continuing operations before depreciation, amortization and gains on asset dispositions and impairments, net | 104,249 | 71,271 | |||
Operating loss from discontinued operations before depreciation, amortization and gains on asset dispositions and impairments, net | — | (33,478 | ) | ||
Changes in operating assets and liabilities before interest and income taxes | (37,713 | ) | (13,152 | ) | |
Purchases of marketable securities | — | (1,720 | ) | ||
Proceeds from sale of marketable securities | 13 | 52,551 | |||
Cash settlements on derivative transactions, net | — | 1,267 | |||
Dividends received from 50% or less owned companies | 4,197 | 14,163 | |||
Interest paid, excluding capitalized interest(1) | (14,708 | ) | (19,048 | ) | |
Income taxes (paid) refunded, net | (23,477 | ) | 4,019 | ||
Other | 3,238 | 36,090 | |||
Total cash flows provided by continuing and discontinued operating activities | 35,799 | 111,963 |
(1) | During the Current Nine Months and Prior Nine Months, capitalized interest paid and included in purchases of property and equipment for continuing and discontinued operations was $0.2 million and $4.4 million, respectively. |
• | Capital expenditures were $43.7 million. Equipment deliveries included five U.S.-flag harbor tugs and two foreign-flag short-sea container/RORO vessels. |
• | The Company sold one U.S.-flag petroleum and chemical carrier, one U.S.-flag harbor tug, 32 dry-cargo barges, two inland river specialty barges and other equipment for net proceeds of $16.0 million. |
• | Construction reserve fund account transactions included withdrawals of $45.4 million. |
• | The Company made investments in and advances to 50% or less owned companies of $9.8 million, including $5.4 million to VA&E, $2.1 million to Golfo de Mexico, $1.0 million to KSM and $0.9 million to RF Vessel Holdings. |
• | The Company received $8.2 million from its 50% or less owned companies, including $5.4 million from VA&E and $2.4 million from SCFCo. |
• | On April 30, 2018, the Company sold its interest in Hawker Pacific for $78.0 million. |
• | Capital expenditures were $99.3 million. Equipment deliveries included two U.S.-flag petroleum and chemical carriers, one U.S.-flag harbor tug, two foreign-flag harbor tugs, two inland river liquid tank barges and three inland river towboats. |
• | The Company sold two inland river towboats, 50 dry-cargo barges and other equipment for net proceeds of $27.6 million. Equipment dispositions included the sale-leaseback of 50 dry-cargo barges for $12.5 million with leaseback terms of 84 months. |
• | Construction reserve fund account transactions included deposits of $13.8 million and withdrawals of $37.7 million. |
• | The Company made investments in and advances to 50% or less owned companies of $7.6 million, including $3.5 million to VA&E, $2.0 million to Trailer Bridge, $1.0 million to Avion, $0.9 million to SCFCo and $0.3 million to KSM. |
• | The Company received $9.7 million from its 50% or less owned companies, including $3.5 million from SeaJon, $2.1 million from Trailer Bridge, $2.0 million from Avion and $1.7 million from SCFCo. |
• | The Company received $5.0 million from the sale of a controlling interest in a subsidiary. |
• | The Company received $24.3 million from third-party leases and notes receivables. |
• | On July 3, 2017, the Company acquired all of the equity of ISH for a net purchase price of ($5.3) million net of cash acquired of $15.7 million. |
• | Offshore Marine Services used net cash of $17.3 million related to the purchase and sale of equipment. |
• | Illinois Corn Processing used net cash of $1.2 million for the purchase of equipment. |
• | Offshore Marine Services received net cash of $4.1 million from construction reserve funds and restricted cash. |
• | Offshore Marine Services received net distributions of $5.0 million from its 50% or less owned companies. |
• | Offshore Marine Services used $7.8 million for business consolidations and acquisitions. |
• | purchased $5.7 million in principal amount of its 7.375% Senior Notes for $5.9 million; |
• | purchased $0.3 million in principal amount of its 3.0% Convertible Senior Notes for $0.3 million; |
• | repaid $23.6 million under the SEA-Vista Credit Facility; |
• | repaid the outstanding balance of $12.2 million on the ISH Term Loan; |
• | repaid the outstanding balance of $1.4 million assumed in the ISH acquisition; |
• | made other scheduled payments on long-term debt of $0.5 million; |
• | incurred costs of $2.5 million related to the exchange of $117.8 million aggregate principal amount of the Company’s outstanding 3.0% Convertible Senior Notes due 2028 for a like principal amount of new 3.25% Convertible Senior Notes due 2030; |
• | paid dividends to noncontrolling interests of $5.1 million; and |
• | received $6.3 million from share award plans. |
• | purchased $7.6 million in principal amount of its 7.375% Senior Notes for $7.7 million; |
• | purchased $61.7 million in principal amount of its 2.5% Convertible Senior Notes for total consideration of $61.9 million. Consideration of $60.5 million was allocated to the settlement of the long-term debt and $1.4 million was allocated to the purchase of the conversion option embedded in the 2.5% Convertible Senior Notes; |
• | borrowed $38.9 million and repaid $52.5 million under the SEA-Vista Credit Facility; |
• | repaid $12.2 million under the ISH Credit Facility; |
• | made other scheduled payments on long-term debt of $0.3 million; |
• | acquired 110,298 shares of Common Stock for treasury for an aggregate purchase price of $7.6 million from its employees to cover their tax withholding obligations related to share award transactions. These shares were purchased in accordance with the terms of the Company’s Share Incentive Plans and not pursuant to the repurchase authorization granted by SEACOR’s Board of Directors; and |
• | received $16.4 million from share award plans. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
(c) | This table provides information with respect to purchases by the Company of shares of its Common Stock during the Current Year Quarter: |
Period | Total Number Of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Value of Securities that may Yet be Purchased under the Plans or Programs(1) | |||||||||
July 1 – 31, 2018 | — | $ | — | — | $ | 71,775,851 | |||||||
August 1 – 31, 2018 | — | $ | — | — | $ | 71,775,851 | |||||||
September 1 – 30, 2018 | — | $ | — | — | $ | 71,141,315 |
(1) | SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire its Common Stock, 7.375% Senior Notes, 3.0% Convertible Senior Notes, 3.25% Convertible Senior Notes and 2.5% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. During the Current Year Quarter, the Company repurchased $4.0 million in principal amount of its 7.375% Senior Notes thereby reducing repurchase authority under the plan. |
ITEM 3. | DEFAULT UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS** | XBRL Instance Document | |
101.SCH** | XBRL Taxonomy Extension Schema | |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB** | XBRL Taxonomy Extension Label Linkbase | |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase |
** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
SEACOR Holdings Inc. (Registrant) | ||||
DATE: | October 23, 2018 | By: | /S/ CHARLES FABRIKANT | |
Charles Fabrikant, Executive Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | ||||
DATE: | October 23, 2018 | By: | /S/ BRUCE WEINS | |
Bruce Weins, Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of SEACOR Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 23, 2018 | |
/s/ CHARLES FABRIKANT | ||
Name: | Charles Fabrikant | |
Title: | Executive Chairman and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of SEACOR Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 23, 2018 | |
/s/ BRUCE WEINS | ||
Name: | Bruce Weins | |
Title: | Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
/S/ CHARLES FABRIKANT |
Charles Fabrikant |
Executive Chairman and Chief Executive Officer (Principal Executive Officer) |
/s/ BRUCE WEINS |
Bruce Weins |
Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 22, 2018 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SEACOR HOLDINGS INC /NEW/ | |
Entity Central Index Key | 0000859598 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 18,246,825 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 3,465 | $ 2,390 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 38,914,817 | 38,656,505 |
Treasury stock, shares held in treasury (in shares) | 20,671,627 | 20,716,878 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Basis of Presentation and Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Accounting Policies | 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES The condensed consolidated financial information for the three and nine months ended September 30, 2018 and 2017 has been prepared by the Company and has not been audited by its independent registered certified public accounting firm. The condensed consolidated financial statements include the accounts of SEACOR Holdings Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of September 30, 2018, its results of operations for the three and nine months ended September 30, 2018 and 2017, its comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017, its changes in equity for the nine months ended September 30, 2018, and its cash flows for the nine months ended September 30, 2018 and 2017. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR” refers to SEACOR Holdings Inc. without its consolidated subsidiaries. Capitalized terms used and not specifically defined herein have the same meaning given those terms in the Company's Annual report on Form 10-K for the year ended December 31, 2017. Adoption of New Accounting Standards. On January 1, 2018, the Company adopted Financial Accounting Standard Board (“FASB”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). As a consequence of adopting Topic 606, the Company now recognizes all of the operating revenues and expenses associated with the dry-cargo barge pools it manages along with additional operating expenses reflective of barge pool earnings attributable to third-party barge owners and not the Company in its capacity as manager. Under Topic 606, the Company determined it was a principal with respect to the third-party barge owners. Previously, the Company recognized operating revenues and expenses only for its proportionate share of the barge pools in which it participated, as it acted as an agent. All prior period results have been adjusted to reflect the retrospective adoption of Topic 606. The adoption of Topic 606 had no impact on previously reported operating income, net income or earnings per share. On January 1, 2018, the Company adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which eliminates the deferral of the tax effects of intercompany asset sales other than inventory until the transferred assets are sold to a third party or recovered through use. As a result of the adoption of the standard, the deferred tax charges previously recognized from those sales resulted in a decrease in deferred tax assets and a cumulative adjustment to retained earnings of $2.5 million in the condensed consolidated balance sheet and statement of changes in equity as of January 1, 2018. Discontinued Operations. On June 1, 2017, the Company completed the spin-off of SEACOR Marine Holdings Inc. (“SEACOR Marine”), the company that operated SEACOR’s Offshore Marine Services business segment, by means of a dividend of all the issued and outstanding common stock of SEACOR Marine to SEACOR’s shareholders (the “Spin-off”). SEACOR Marine is now an independent company whose common stock is listed on the New York Stock Exchange under the symbol “SMHI.” For all periods presented herein, the Company has reported the historical financial position, results of operations and cash flows of SEACOR Marine as discontinued operations (see Note 14). On July 3, 2017, the Company completed the sale of its 70% interest in Illinois Corn Processing LLC (“ICP”), the company that operated SEACOR’s Illinois Corn Processing business segment. For all periods presented herein, the Company has reported the historical financial position, results of operations and cash flows of ICP as discontinued operations (see Note 14). Revenue Recognition. Revenue is recognized when (or as) the Company transfers promised goods or services to its customers in amounts that reflect the consideration to which the Company expects to be entitled to in exchange for those goods or services, which occurs when (or as) the Company satisfies its contractual obligations and transfers control of the promised goods or services to its customers. Costs to obtain or fulfill a contract are expensed as incurred. Revenue from Contracts with Customers. Ocean Services primarily earns revenues from voyage charters, contracts of affreightment, harbor and ocean towing services, unit freight transportation services and technical ship management agreements with vessel owners (see Note 13). Ocean Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Voyage charters are contracts to carry cargoes on a single voyage basis for a predetermined price, regardless of time to complete. Contracts of affreightment are contracts for cargoes that are committed on a multi-voyage basis for various periods of time, with minimum and maximum cargo tonnages specified over the period at a fixed or escalating rate per ton. Harbor and ocean towing services typically include operating harbor tugs alongside oceangoing vessels to escort them to their berth, assisting with the docking and undocking of these oceangoing vessels and escorting them back out to sea. They are contracted using prevailing port tariff terms on a per-use basis. In the unit freight trade, transportation services typically include transporting shipping containers, rail cars, project cargoes, automobiles and U.S. military vehicles and are generally contracted on a per unit basis for the specified cargo and destination, typically in accordance with a publicly available tariff rate or based on a negotiated rate when moving larger volumes over an extended period. Other operations primarily include technical ship management agreements whereby Ocean Services provides technical ship management services to third-party customers for a predetermined price over a specified period of time, typically a year or more. Inland Services primarily earns revenues from contracts of affreightment, terminal operations, fleeting operations and repair and maintenance services (see Note 13). Inland Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Contracts of affreightment are contracts whereby customers are charged an established rate per ton to transport cargo from point-to-point. Terminal operations includes tank farms and dry bulk and container handling facilities that are marketed under contractual rates and terms driven by throughput volume. Fleeting operations includes fleeting services whereby barges are held in fleeting areas for an agreed-upon day rate and shifting services whereby harbor boats are used to pick up and drop off barges to assist in assembling tows and to move barges to and from the dock for loading and unloading at predetermined per-shift fees. Other operations primarily include a machine shop specializing in towboat and barge cleaning, repair and maintenance services that are charged on an hourly or a fixed fee basis depending on the scope and nature of the work. Witt O’Brien’s primarily earns revenues from time and material and retainer contracts (see Note 13). Witt O’Brien’s transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Time and material contracts primarily relate to emergency response, debris management or consulting services that Witt O’Brien’s performs for a predetermined fee. Retainer contracts, which are nearly all with vessel services operators and oil companies, are contracted based on agreed-upon rates. The Company’s Other business segment includes CLEANCOR Energy Solutions LLC (“Cleancor”) (see Note 2). Cleancor primarily earns revenues from the sale of liquefied natural gas (see Note 13). Under these arrangements, control of the goods are transfered to the customer and performance obligations are satisfied at a point in time, and therefore revenue is recognized upon delivery while any related costs are expensed as incurred. Contract liabilities from contracts with customers arise when the Company has received consideration prior to performance and are included in other current liabilities in the accompanying condensed consolidated balance sheets. The Company’s contract liability activity for the nine months ended September 30 was as follows (in thousands):
Lease Revenues. The Company’s lease revenues are primarily from time charters, bareboat charters and non-vessel rental agreements that are recognized ratably over the lease term as services are provided, typically on a per day basis. Under a time charter, the Company provides a vessel to a customer for a set term and is responsible for all operating expenses, typically excluding fuel. Under a bareboat charter, the Company provides a vessel to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation. Under a non-vessel rental agreement, the Company provides non-vessel property or equipment to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation. Property and Equipment. Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the time period beyond which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded their useful life as set forth in the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date. As of September 30, 2018, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
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Equipment maintenance and repair costs including the costs of routine overhauls, dry-dockings and inspections performed on vessels and equipment are charged to operating expense as incurred. Expenditures that extend the useful life or improve the marketing and commercial characteristics of equipment as well as major renewals and improvements to other properties are capitalized. As of September 30, 2018, the Company’s construction in progress totaling $4.6 million primarily consisted of upgrades to inland river towboats and the construction of other Inland Services equipment, and is included in historical cost in the accompanying condensed consolidated balance sheets. Certain interest costs incurred during the construction of equipment are capitalized as part of the assets’ carrying values and are amortized over such assets’ estimated useful lives. During the nine months ended September 30, 2018, capitalized interest totaled $0.2 million. Impairment of Long-Lived Assets. The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. These indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If the carrying values of the assets are not recoverable, as determined by the estimated undiscounted cash flows, the estimated fair value of the assets or asset groups are compared to their current carrying value and impairment charges are recorded if the carrying value exceeds fair value. The Company performs its testing on an asset or asset group basis. The Company’s estimates of undiscounted cash flows are highly subjective and actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the nine months ended September 30, 2018, the Company did not recognize any impairment charges related to long-lived assets held for use. During the nine months ended September 30, 2017, the Company recognized impairment charges of $0.4 million related to long-lived assets held for use. Impairment of 50% or Less Owned Companies. Investments in 50% or less owned companies are reviewed periodically to assess whether there is an other-than-temporary decline in the carrying value of the investment. In its evaluation, the Company considers, among other items, recent and expected financial performance and returns, impairments recorded by the investee and the capital structure of the investee. When the Company determines the estimated fair value of an investment is below carrying value and the decline is other-than-temporary, the investment is written down to its estimated fair value. Actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance, the severity and expected duration of declines in value and the available liquidity in the capital markets to support the continuing operations of the investee, among other factors. Although the Company believes its assumptions and estimates are reasonable, the investee’s actual performance compared with the estimates could produce different results and lead to additional impairment charges in future periods. During the nine months ended September 30, 2018 and 2017, the Company recognized impairment charges of $0.1 million and $0.9 million, respectively, related to its 50% or less owned companies, which are included in equity in earnings of 50% or less owned companies, net of tax in the accompanying consolidated statements of income (loss). Income Taxes. During the nine months ended September 30, 2018, the Company’s effective income tax rate of 14.4% was primarily due to foreign sourced income not subject to U.S. tax partially offset by income taxes on Subpart F income (see Note 6). Deferred Gains. The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies, and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. Deferred gain activity related to these transactions for the nine months ended September 30 was as follows (in thousands):
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Accumulated Other Comprehensive Loss. The only component of accumulated other comprehensive loss for the nine months ended September 30, 2018 was foreign currency translation adjustments. Earnings Per Share. Basic earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested, common shares have been issued pursuant to the exercise of outstanding stock options and common shares have been issued pursuant to the conversion of all outstanding convertible notes. Computations of basic and diluted earnings per common share of SEACOR were as follows (in thousands, except share data):
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New Accounting Pronouncements. On February 25, 2016, the FASB issued a comprehensive new leasing standard that is meant to improve transparency and comparability among companies by requiring lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts and also requires additional disclosures about leasing arrangements. The new standard is effective for interim and annual periods beginning after December 15, 2018. The Company will adopt this standard using a modified prospective approach to adoption with recognition of a cumulative-effect adjustment to the opening balance of retained earnings at the adoption date. The Company is in the process of preparing for implementation and currently believes that the adoption will have a material impact on its financial statements. Specifically, the Company will be recording material right-of-use assets and lease liabilities of approximately $150 - $175 million for certain of its equipment, office and land leases. The Company’s estimates are preliminary and are based on its current inventory of leases. If the Company enters into or exits material lease arrangements prior to adoption or makes material changes to certain of its assumptions, including lease discount rates, the Company’s estimates may change and those changes may be material. On January 26, 2017, the FASB issued an amendment to the accounting standards, which simplified wording and removed step two of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step two of the goodwill test. The new standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2020, with early adoption permitted for interim or annual goodwill impairment tests on testing dates after January 1, 2017. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. |
Business Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | 2. BUSINESS ACQUISITIONS Cleancor. On June 1, 2018, the Company acquired a controlling interest in Cleancor, a full service solution provider that delivers clean fuel to end users, through the acquisition of its partners’ 50% equity interest for $3.2 million in cash. In addition, immediately prior to consolidation, the Company contributed as capital $1.9 million of notes receivable due from Cleancor. The Company performed a fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair value resulting in no goodwill being recorded. SCA. On March 1, 2018, the Company acquired Strategic Crisis Advisors LLC (“SCA”) for $1.3 million to be paid in two installments. The purchase price includes $0.8 million in contingent consideration that is dependent upon SCA meeting predetermined revenue targets for the twelve months following the acquisition date. The Company performed a fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair value resulting in no goodwill being recorded. Purchase Price Allocation. The allocation of the purchase price for the Company’s acquisitions for the nine months ended September 30, 2018 was as follows (in thousands):
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Equipment Acquisitions and Dispositions |
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Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Equipment Acquisitions and Dispositions | 3. EQUIPMENT ACQUISITIONS AND DISPOSITIONS During the nine months ended September 30, 2018, capital expenditures were $43.7 million. Equipment deliveries during the nine months ended September 30, 2018 included five U.S.-flag harbor tugs and two foreign-flag short-sea container/RORO vessels. During the nine months ended September 30, 2018, the Company sold one U.S.-flag petroleum and chemical carrier, one U.S.-flag harbor tug, 32 dry-cargo barges, two inland river specialty barges and other equipment for net proceeds of $16.0 million and gains of $6.6 million, all of which were recognized currently. In addition, the Company recognized previously deferred gains of $7.0 million. |
Investments, At Equity, And Advances To 50% Or Less Owned Companies |
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Equity Method Investments and Joint Ventures [Abstract] | |
Investments, At Equity, And Advances To 50% Or Less Owned Companies | 4. INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES RF Vessel Holdings. RF Vessel Holdings owns two foreign-flag rail ferries. During the nine months ended September 30, 2018, the Company and its partner each contributed capital of $0.9 million to RF Vessel Holdings. Golfo de Mexico. Golfo de Mexico operates the two foreign-flag rail ferries owned by RF Vessel Holdings. During the nine months ended September 30, 2018, the Company and its partner each contributed capital of $2.1 million to Golfo de Mexico. KSM. KSM operates four foreign-flag harbor tugs and one foreign-flag ocean liquid tank barge in Freeport, Grand Bahama. During the nine months ended September 30, 2018, the Company and its partner each contributed capital of $1.0 million to KSM. SCFCo. SCFCo operates dry-cargo barges and towboats on the Parana-Paraguay Rivers and a terminal facility at Port Ibicuy, Argentina. The Company has provided SCFCo with working capital advances, loans and financings. During the nine months ended September 30, 2018, the Company received repayments on these working capital advances, loans and financings of $2.4 million from SCFCo. As of September 30, 2018, $30.0 million of working capital advances, loans and financings remained outstanding. SCF Bunge Marine. SCF Bunge Marine provides towing services on the U.S. Inland Waterways, primarily the Mississippi River, Illinois River, Tennessee River and Ohio River. During the nine months ended September 30, 2018, the Company contributed capital of $0.5 million to SCF Bunge Marine and received dividends of $2.9 million from SCF Bunge Marine. O’Brien’s do Brazil. O’Brien’s do Brazil is an emergency consulting organization providing preparedness, response and recovery services in Brazil. During the nine months ended September 30, 2018, the Company received dividends of $0.2 million from O’Brien’s do Brazil. Hawker Pacific. Hawker Pacific is an aviation sales and support organization and distributor of aviation components from leading manufacturers. On April 30, 2018, the Company sold its 34.2% interest in Hawker Pacific for $78.0 million in cash and recognized a gain of $53.9 million, which is included in other, net in the accompanying condensed consolidated statements of income (loss). VA&E. VA&E primarily focuses on the global origination, trading and merchandising of sugar, pairing producers and buyers and arranging for the transportation and logistics of the product. During the nine months ended September 30, 2018, the Company received dividends of $0.4 million from VA&E. The Company provides an uncommitted revolving credit facility of up to $3.5 million and a subordinated loan of $3.5 million to VA&E. During the nine months ended September 30, 2018, the Company received repayments of $5.4 million and advanced $5.4 million on the revolving credit facility. As of September 30, 2018, the outstanding balance on the revolving credit facility and subordinated loan was $7.3 million, inclusive of accrued and unpaid interest. Other. The Company’s other 50% or less owned companies are primarily industrial aviation businesses in Asia. During the nine months ended September 30, 2018, the Company received dividends of $0.8 million and repayments on advances of $0.4 million from these 50% or less owned companies. As of September 30, 2018, total advances outstanding were $2.0 million. |
Long-Term Debt |
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Sep. 30, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-Term Debt | 5. LONG-TERM DEBT SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire SEACOR common stock, par value $0.01 per share (“Common Stock”), 7.375% Senior Notes, 3.0% Convertible Senior Notes, 3.25% Convertible Senior Notes and 2.5% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. As of September 30, 2018, the Company’s remaining repurchase authority for the Securities was $71.1 million. 3.0% Convertible Senior Notes. On May 15, 2018, SEACOR exchanged $117.8 million aggregate principal amount of the Company’s outstanding 3.0% Convertible Senior Notes due 2028 for a like principal amount of new 3.25% Convertible Senior Notes due 2030 (see discussion below). In addition, during the nine months ended September 30, 2018, the Company repurchased $0.3 million in principal amount of its 3.0% Convertible Senior Notes for $0.3 million. These transactions resulted in debt extinguishment losses of $5.3 million included in the accompanying condensed consolidated statements of income (loss). The outstanding principal amount of these notes was $111.9 million as of September 30, 2018. 3.25% Convertible Senior Notes. On May 15, 2018, SEACOR issued $117.8 million aggregate principal amount of its 3.25% Convertible Senior Notes due May 15, 2030 (the “3.25% Convertible Senior Notes”). Interest on the 3.25% Convertible Senior Notes is payable semi-annually on May 15 and November 15 of each year. Beginning May 15, 2025, contingent interest is payable during any subsequent semi-annual interest period if the average trading price of the 3.25% Convertible Senior Notes for a defined period is greater than or equal to $1,200 per bond ($1,000 face value). The amount of contingent interest payable for any such period will be equal to 0.45% per annum of such average trading price of the 3.25% Convertible Senior Notes. Prior to February 15, 2030, the 3.25% Convertible Senior Notes are convertible into shares of Common Stock, at a conversion rate (“Conversion Rate”) of 13.1920 shares per bond ($1,000 face value) only if certain conditions are met, as more fully described in the indenture. After February 15, 2030, holders may elect to convert at any time. The Company has reserved the maximum number of shares of Common Stock needed upon conversion, or 1,553,780 shares as of September 30, 2018. On or after May 15, 2022, the 3.25% Convertible Senior Notes may be redeemed, in whole or in part, at a price equal to 100% of the principal amount, plus accrued and unpaid interest to the date of redemption. On May 15, 2025, or if the Company undergoes a fundamental change, as more fully described in the indenture, the holders of the 3.25% Convertible Senior Notes may require SEACOR to purchase for cash all or part of the notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest to the date of purchase. The Company accounts separately for the liability and equity components of the 3.25% Convertible Senior Notes and the associated underwriting fees in a manner that reflects the Company’s non-convertible borrowing rate. Of the total issued amount of $117.8 million and offering costs of $2.5 million, the Company allocated $95.1 million and $2.0 million, respectively, to the liability component and $22.7 million and $0.5 million, respectively, to the equity component. The resulting debt discount and offering costs associated with the liability component are amortized as additional non-cash interest expense over the seven year period for which the debt is expected to be outstanding (May 15, 2025) for an overall effective annual interest rate of 7.2%. 7.375% Senior Notes. During the nine months ended September 30, 2018, the Company repurchased $5.7 million in principal amount of its 7.375% Senior Notes for $5.9 million resulting in debt extinguishment losses of $0.2 million included in the accompanying condensed consolidated statements of income (loss). The outstanding principal amount of these notes was $147.4 million as of September 30, 2018. On October 1, 2018, the Company announced it would redeem all of its 7.375% Senior Notes on October 31, 2018 at a redemption price equal to 100% of the principal amount of the notes outstanding plus a make-whole premium to be calculated in accordance with the terms of the indenture governing the 7.375% Senior Notes, plus accrued and unpaid interest, if any, to the redemption date. As a consequence, the Company has included the principal amount of these notes in current portion of long-term debt in the accompanying condensed consolidated balance sheet. SEA-Vista Credit Facility. During the nine months ended September 30, 2018, SEA-Vista repaid $17.0 million on the Revolving Loan and made scheduled payments of $2.5 million on the Term A-1 Loan and $4.2 million on the Term A-2 Loan. As of September 30, 2018, SEA-Vista had $72.0 million of remaining borrowing capacity under the Revolving Loan. ISH Credit Facility. During the nine months ended September 30, 2018, ISH repaid the outstanding balance of $12.2 million on the ISH Term Loan and terminated the credit facility resulting in debt extinguishment losses of $0.1 million included in the accompanying condensed consolidated statements of income (loss). Other. During the nine months ended September 30, 2018, the Company made scheduled payments on other long-term debt of $0.5 million and repaid the remaining outstanding balance of $1.4 million assumed in the ISH acquisition. Letters of Credit. As of September 30, 2018, the Company had outstanding letters of credit totaling $10.1 million with various expiration dates through 2019, including $0.7 million that have been issued on behalf of SEACOR Marine. Guarantees. The Company has guaranteed the payments of amounts owed under certain sale-leaseback transactions, equipment financing and multi-employer pension obligations on behalf of SEACOR Marine. As of September 30, 2018, these guarantees on behalf of SEACOR Marine totaled $47.0 million and decline as payments are made on the outstanding obligations. The Company earns a fee of 50 basis points per annum on these guarantees and outstanding letters of credit. For the three and nine months ended September 30, 2018, the Company earned fees of $0.1 million and $0.2 million, respectively. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Income Taxes | 6. INCOME TAXES The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate on continuing operations for the nine months ended September 30, 2018:
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Derivative Instruments And Hedging Strategies |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Strategies | 7. DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES The Company recognized gains on derivative instruments not designated as hedging instruments for the nine months ended September 30 as follows (in thousands):
The exchange option liability on subsidiary convertible senior notes terminated as a consequence of the Spin-off as the notes became the sole obligation of SEACOR Marine and convertible only into the common stock of SEACOR Marine. The Company enters and settles forward currency exchange, option and future contracts with respect to various foreign currencies. These contracts enable the Company to buy currencies in the future at fixed exchange rates, which could offset possible consequences of changes in currency exchange rates with respect to the Company’s business conducted outside of the United States. As of September 30, 2018, there were no outstanding forward currency exchange contracts. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 8. FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The Company’s financial assets and liabilities as of September 30, 2018 that are measured at fair value on a recurring basis were as follows (in thousands):
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The estimated fair values of the Company’s other financial assets and liabilities as of September 30, 2018 were as follows (in thousands):
The fair value of the Company’s long-term debt and notes receivable from third parties was estimated based upon quoted market prices or by using discounted cash flow analyses based on estimated current rates for similar types of arrangements. It was not practicable to estimate the fair value of certain of the Company’s investments, at cost, in 50% or less owned companies because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. Considerable judgment was required in developing certain of the estimates of fair value and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The Company’s other assets and liabilities that were measured at fair value during the nine months ended September 30, 2018 were as follows (in thousands):
Investments, at equity, and advances in 50% or less owned companies. During the nine months ended September 30, 2018, the Company marked its investment in Cleancor to fair value as a consequence of the Company acquiring its partners’ 50% interest, resulting in a gain of $0.1 million, net of tax, based on the fair value of the acquired interest (see Note 2). In addition, during the nine months ended September 30, 2018, the Company identified indicators of impairment in one of its 50% or less owned companies and, as a consequence, recognized an impairment charge of $0.1 million for an other-than-temporary decline in fair value. The investment was determined to have an immaterial value. |
Noncontrolling Interests in Subsidiaries |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests in Subsidiaries | 9. NONCONTROLLING INTERESTS IN SUBSIDIARIES Noncontrolling interests in the Company’s consolidated subsidiaries were as follows (in thousands):
SEA-Vista. SEA-Vista owns and operates the Company’s fleet of U.S.-flag petroleum and chemical carriers used in the U.S. coastwise trade of crude oil, petroleum and specialty chemical products. As of September 30, 2018, the net assets of SEA-Vista were $284.8 million. During the nine months ended September 30, 2018, the net income of SEA-Vista was $32.6 million, of which $16.0 million was attributable to noncontrolling interests. During the nine months ended September 30, 2017, the net income of SEA-Vista was $33.2 million, of which $16.3 million was attributable to noncontrolling interests. |
Multi-Employer and Defined Benefit Pension Plans |
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Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Multi-Employer and Defined Benefit Pension Plans | 10. MULTI-EMPLOYER AND DEFINED BENEFIT PENSION PLANS AMOPP. During the nine months ended September 30, 2018, the Company received notification from the AMOPP that the Company’s withdrawal liability as of September 30, 2017 would have been $34.4 million based on an actuarial valuation performed as of that date. That liability may change in future years based on various factors, primarily employee census. As of September 30, 2018, the Company has no intention to withdraw from the AMOPP and no deficit amounts have been invoiced. Depending upon the results of the future actuarial valuations and the ten-year rehabilitation plan, it is possible that the AMOPP will experience further funding deficits, requiring the Company to recognize additional payroll related operating expenses in the periods invoices are received or contribution levels are increased. |
Share Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||
Share Based Compensation | 11. SHARE BASED COMPENSATION Transactions in connection with the Company’s share based compensation plans during the nine months ended September 30, 2018 were as follows:
Employee Stock Purchase Plans. On June 5, 2018, SEACOR’s stockholders approved an amendment to the 2009 Employee Stock Purchase Plan, whereby the number of shares available under the plan was increased by 300,000. |
Commitments And Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies | 12. COMMITMENTS AND CONTINGENCIES The Company's capital commitments as of September 30, 2018 by year of expected payment were as follows (in thousands):
Ocean Services’ and Inland Services’ capital commitments included one inland river towboat and various other equipment and vessel improvements. Subsequent to September 30, 2018, the Company committed to purchase additional property and equipment for $14.7 million. During 2012, the Company sold National Response Corporation (“NRC”), NRC Environmental Services Inc., SEACOR Response Ltd., and certain other subsidiaries to J.F. Lehman & Company, a private equity firm (the “SES Business Transaction”). On December 15, 2010, O’Brien’s Response Management L.L.C. (“ORM”) and NRC were named as defendants in one of the several “master complaints” filed in the overall multi-district litigation relating to the Deepwater Horizon oil spill response and clean-up in the Gulf of Mexico, which is currently pending in the U.S. District Court for the Eastern District of Louisiana (the “MDL”). The “B3” master complaint naming ORM and NRC asserted various claims on behalf of a putative class against multiple defendants concerning the clean-up activities generally and the use of dispersants specifically. Both prior to and following the filing of the aforementioned “B3” master complaint, individual civil actions naming the Company, ORM, and/or NRC alleging B3 exposure-based injuries and/or damages were consolidated with the MDL and stayed pursuant to court order. On February 16, 2016, all but eleven B3 claims against ORM and NRC were dismissed with prejudice (the “B3 Dismissal Order”). On August 2, 2016, the Court granted an omnibus motion for summary judgment as it concerns ORM and NRC in its entirety, dismissing the remaining eleven plaintiffs’ claims against ORM and NRC with prejudice (the “Remaining Eleven Plaintiffs’ Dismissal Order”). The deadline to appeal both of these orders has expired. At present, the only remaining claim is the following:
Following a status conference with the Court on February 17, 2017, the Court issued several new pretrial orders in connection with the remaining claims in the MDL. Various submissions followed, and on July 18, 2017, the Court issued an order dismissing all remaining “B3” claims in the MDL with prejudice, with the exception of certain claims specifically listed on an exhibit annexed to the order (the “Master MDL B3 Dismissal Order”). Nathan Fitzgerald, the decedent in the Fitzgerald Action, was listed on the exhibit annexed to the Master MDL B3 Dismissal Order. The Court has since issued a list of those plaintiffs compliant with its previous orders and thus whose “B3” claims remain pending; the last version of this compliance list was issued on April 6, 2018 and the claim for the decedent in the Fitzgerald Action remains listed as a pending claim. On April 9, 2018, the Court issued an order requiring remaining “B3” plaintiffs to submit particularized statements of claim, and such a statement was submitted on behalf of the decedent in the Fitzgerald Action on July 9, 2018. On September 20, 2018, the Court issued an order indicating which statements of claim were sufficient and which were not, requiring the latter plaintiffs to show cause; the statement submitted on behalf of the decedent in the Fitzgerald Action was deemed sufficient, requiring nothing further at the time of the order. The Company is unable to estimate the potential exposure, if any, resulting from this matter, to the extent it remains viable, but believes it is without merit and does not expect that it will have a material effect on its consolidated financial position, results of operations or cash flows. On February 18, 2011, Triton Asset Leasing GmbH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., and Transocean Deepwater Inc. (collectively “Transocean”) named ORM and NRC as third-party defendants in a Rule 14(c) Third-Party Complaint in Transocean’s own Limitation of Liability Act action, which is part of the overall MDL, tendering to ORM and NRC the claims in the “B3” master complaint that have already been asserted against ORM and NRC. Various contribution and indemnity cross-claims and counterclaims involving ORM and NRC were subsequently filed. The Company believes that the potential exposure, if any, resulting therefrom has been reduced as a result of the various developments in the MDL, including the B3 Dismissal Order and Remaining Eleven Plaintiffs’ Dismissal Order, and does not expect that these matters will have a material effect on its consolidated financial position, results of operations or cash flows. On November 16, 2012, 668 individuals who served as beach clean-up workers in Escambia County, Florida during the Deepwater Horizon oil spill response commenced a civil action in the Circuit Court for the First Judicial Circuit of Florida, in and for Escambia County, Abney et al. v. Plant Performance Services, LLC et al., No. 2012-CA-002947 (the “Abney Action”), in which they allege, among other things, that ORM and other defendants engaged in the contamination of Florida waters and beaches in violation of Florida Statutes Chapter 376 and injured the Plaintiffs by exposing them to dispersants during the course and scope of their employment. The Abney Action was removed to federal court and ultimately consolidated with the MDL on April 2, 2013. On April 22, 2013, a companion case to this matter was filed in the U.S. District Court for the Northern District of Florida, Abood et al. v. Plant Performance Services, LLC et al., No. 3:13-CV-00284 (N.D. Fla.) (the “Abood Action”), which alleges identical allegations against the same parties but names an additional 174 Plaintiffs, all of whom served as clean-up workers in various Florida counties during the Deepwater Horizon oil spill response. The Abood Action was consolidated with the MDL on May 10, 2013. By court order, both of these matters were then stayed since they were consolidated with the MDL. The names of only a very small percentage of the claimants in these two matters appear to be listed on the exhibit to the Master MDL B3 Dismissal Order and the Court has denied the other plaintiffs’ request for reconsideration, which has since been appealed. In their appellate brief, filed in the U.S. Court of Appeals for the Fifth Circuit on June 15, 2018, these individual claimants noted that ORM “has been effectively dismissed through other actions by the lower court and that dismissal is not the subject of this appeal.” Accordingly, claimants concede that the original B3 Dismissal Order bars their claims against ORM. Finally, both the Abney Action and the Abood Action were directed closed by Court order dated September 9, 2018 (the “Close Out Order”). The Close Out Order similarly listed various individual actions that had been dismissed as against ORM and NRC by virtue of the B3 Dismissal Order and/or the Remaining Eleven Plaintiffs’ Dismissal Order. Separately, on March 2, 2012, the Court announced that BP Exploration and BP America Production Company (“BP America”) and (collectively “BP”) and the Plaintiffs had reached an agreement on the terms of two proposed class action settlements that will resolve, among other things, Plaintiffs’ economic loss claims and clean-up related claims against BP. The BP settlement pertaining to personal injury claims (the “Medical Settlement”) also established a right for class members to bring a lawsuit against BP (but not ORM or NRC) for later-manifested physical condition(s). These actions, referred to as back-end litigation-option (“BELO”) cases, have specifically-delineated procedures and limitations, as set forth in the Medical Settlement. For example, there are limitations on the claims and defenses that can be asserted, as well as on the issues, elements, and proofs that may be litigated at any trial and the potential recovery for any BELO plaintiff. Notwithstanding that the Company, ORM, and NRC are listed on the Medical Settlement’s release as to claims asserted by Plaintiffs, the Medical Settlement still permits BP to seek indemnity from any party, to the extent BP has a valid indemnity right. BP has purported to tender a number of individual BELO cases to ORM and/or NRC for indemnity pursuant to their service contracts with BP; as of close of business on September 30 2018, 101 BELO claims have been formally filed against BP that have been tendered to ORM and 14 BELO claims have been formally filed against BP that have been tendered to NRC. ORM and NRC have rejected BP’s contention that it is entitled to full defense and indemnity coverage from ORM and/or NRC for all of the BELO claims referenced in BP’s indemnity demands. Moreover, it is the Company’s position that (1) ORM has contractual indemnity coverage for the above-referenced BELO claims through its separate agreements with sub-contractors that worked for ORM during the Deepwater Horizon oil spill response and (2) NRC’s services contract with BP does not provide for broad contractual indemnity as BP contends. Discussions relating to these indemnity demands remain ongoing. Overall, however, the Company believes that both settlements, including the Medical Settlement, have reduced the potential exposure in connection with the various cases relating to the Deepwater Horizon oil spill response and clean-up. The Company is unable to estimate the potential exposure, if any, resulting from these claims but does not expect that they will have a material effect on its consolidated financial position, results of operations or cash flows. In the ordinary course of the Company’s business, it may agree to indemnify its counterparty to an agreement. If the indemnified party makes a successful claim for indemnification, the Company would be required to reimburse that party in accordance with the terms of the indemnification agreement. Indemnification agreements generally, but not always, are subject to threshold amounts, specified claim periods and other restrictions and limitations. In connection with the SES Business Transaction, the Company remains contingently liable for work performed in connection with the Deepwater Horizon oil spill response. Pursuant to the agreement governing the sale, the Company’s potential liability to the purchaser may not exceed the consideration received by the Company for the SES Business Transaction. The Company is currently indemnified under contractual agreements with BP for the potential B3 liabilities relating to cleanup work performed in connection with the Deepwater Horizon oil spill response; this indemnification is unrelated to, and thus not impacted by, the indemnification BP has demanded for the BELO cases referenced above. In the ordinary course of its business, the Company becomes involved in various other litigation matters including, among other things, claims by third parties for alleged property damages and personal injuries. Management has used estimates in determining the Company’s potential exposure to these matters and has recorded reserves in its financial statements related thereto where appropriate. It is possible that a change in the Company’s estimates of that exposure could occur, but the Company does not expect such changes in estimated costs would have a material effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 13. SEGMENT INFORMATION Accounting standards require public business enterprises to report information about each of their operating business segments that exceed certain quantitative thresholds or meet certain other reporting requirements. Operating business segments have been defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Certain reclassifications and adjustments of prior period information have been made to conform the current period’s reportable segment presentation as a result of the Company’s presentation of discontinued operations and the adoption of Topic 606 (see Notes 1 and 14). The Company’s basis of measurement of segment profit or loss is as previously defined in the Company’s Annual report on Form 10-K for the year ended December 31, 2017. Accounting standards also require companies to disaggregate revenues from contracts with customers into categories to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables summarize the operating results, capital expenditures assets and disaggregated revenues of the Company’s reportable segments.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | 14. DISCONTINUED OPERATIONS The Company’s discontinued operations consist of SEACOR Marine and ICP as following the Spin-off and sale, respectively, the Company has no continuing involvement in either of these businesses (see Note 1). Summarized selected operating results of the Company’s discontinued operations were as follows (in thousands):
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Basis of Presentation and Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||
Basis Of Consolidation | The condensed consolidated financial information for the three and nine months ended September 30, 2018 and 2017 has been prepared by the Company and has not been audited by its independent registered certified public accounting firm. The condensed consolidated financial statements include the accounts of SEACOR Holdings Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of September 30, 2018, its results of operations for the three and nine months ended September 30, 2018 and 2017, its comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017, its changes in equity for the nine months ended September 30, 2018, and its cash flows for the nine months ended September 30, 2018 and 2017. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR” refers to SEACOR Holdings Inc. without its consolidated subsidiaries. Capitalized terms used and not specifically defined herein have the same meaning given those terms in the Company's Annual report on Form 10-K for the year ended December 31, 2017. |
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New Accounting Pronouncements | New Accounting Pronouncements. On February 25, 2016, the FASB issued a comprehensive new leasing standard that is meant to improve transparency and comparability among companies by requiring lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts and also requires additional disclosures about leasing arrangements. The new standard is effective for interim and annual periods beginning after December 15, 2018. The Company will adopt this standard using a modified prospective approach to adoption with recognition of a cumulative-effect adjustment to the opening balance of retained earnings at the adoption date. The Company is in the process of preparing for implementation and currently believes that the adoption will have a material impact on its financial statements. Specifically, the Company will be recording material right-of-use assets and lease liabilities of approximately $150 - $175 million for certain of its equipment, office and land leases. The Company’s estimates are preliminary and are based on its current inventory of leases. If the Company enters into or exits material lease arrangements prior to adoption or makes material changes to certain of its assumptions, including lease discount rates, the Company’s estimates may change and those changes may be material. On January 26, 2017, the FASB issued an amendment to the accounting standards, which simplified wording and removed step two of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step two of the goodwill test. The new standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2020, with early adoption permitted for interim or annual goodwill impairment tests on testing dates after January 1, 2017. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. Adoption of New Accounting Standards. On January 1, 2018, the Company adopted Financial Accounting Standard Board (“FASB”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). As a consequence of adopting Topic 606, the Company now recognizes all of the operating revenues and expenses associated with the dry-cargo barge pools it manages along with additional operating expenses reflective of barge pool earnings attributable to third-party barge owners and not the Company in its capacity as manager. Under Topic 606, the Company determined it was a principal with respect to the third-party barge owners. Previously, the Company recognized operating revenues and expenses only for its proportionate share of the barge pools in which it participated, as it acted as an agent. All prior period results have been adjusted to reflect the retrospective adoption of Topic 606. The adoption of Topic 606 had no impact on previously reported operating income, net income or earnings per share. On January 1, 2018, the Company adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which eliminates the deferral of the tax effects of intercompany asset sales other than inventory until the transferred assets are sold to a third party or recovered through use. As a result of the adoption of the standard, the deferred tax charges previously recognized from those sales resulted in a decrease in deferred tax assets and a cumulative adjustment to retained earnings of $2.5 million in the condensed consolidated balance sheet and statement of changes in equity as of January 1, 2018. |
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Discontinued Operations | Discontinued Operations. On June 1, 2017, the Company completed the spin-off of SEACOR Marine Holdings Inc. (“SEACOR Marine”), the company that operated SEACOR’s Offshore Marine Services business segment, by means of a dividend of all the issued and outstanding common stock of SEACOR Marine to SEACOR’s shareholders (the “Spin-off”). SEACOR Marine is now an independent company whose common stock is listed on the New York Stock Exchange under the symbol “SMHI.” For all periods presented herein, the Company has reported the historical financial position, results of operations and cash flows of SEACOR Marine as discontinued operations (see Note 14). On July 3, 2017, the Company completed the sale of its 70% interest in Illinois Corn Processing LLC (“ICP”), the company that operated SEACOR’s Illinois Corn Processing business segment. For all periods presented herein, the Company has reported the historical financial position, results of operations and cash flows of ICP as discontinued operations (see Note 14). |
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Revenue Recognition | Revenue Recognition. Revenue is recognized when (or as) the Company transfers promised goods or services to its customers in amounts that reflect the consideration to which the Company expects to be entitled to in exchange for those goods or services, which occurs when (or as) the Company satisfies its contractual obligations and transfers control of the promised goods or services to its customers. Costs to obtain or fulfill a contract are expensed as incurred. Revenue from Contracts with Customers. Ocean Services primarily earns revenues from voyage charters, contracts of affreightment, harbor and ocean towing services, unit freight transportation services and technical ship management agreements with vessel owners (see Note 13). Ocean Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Voyage charters are contracts to carry cargoes on a single voyage basis for a predetermined price, regardless of time to complete. Contracts of affreightment are contracts for cargoes that are committed on a multi-voyage basis for various periods of time, with minimum and maximum cargo tonnages specified over the period at a fixed or escalating rate per ton. Harbor and ocean towing services typically include operating harbor tugs alongside oceangoing vessels to escort them to their berth, assisting with the docking and undocking of these oceangoing vessels and escorting them back out to sea. They are contracted using prevailing port tariff terms on a per-use basis. In the unit freight trade, transportation services typically include transporting shipping containers, rail cars, project cargoes, automobiles and U.S. military vehicles and are generally contracted on a per unit basis for the specified cargo and destination, typically in accordance with a publicly available tariff rate or based on a negotiated rate when moving larger volumes over an extended period. Other operations primarily include technical ship management agreements whereby Ocean Services provides technical ship management services to third-party customers for a predetermined price over a specified period of time, typically a year or more. Inland Services primarily earns revenues from contracts of affreightment, terminal operations, fleeting operations and repair and maintenance services (see Note 13). Inland Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Contracts of affreightment are contracts whereby customers are charged an established rate per ton to transport cargo from point-to-point. Terminal operations includes tank farms and dry bulk and container handling facilities that are marketed under contractual rates and terms driven by throughput volume. Fleeting operations includes fleeting services whereby barges are held in fleeting areas for an agreed-upon day rate and shifting services whereby harbor boats are used to pick up and drop off barges to assist in assembling tows and to move barges to and from the dock for loading and unloading at predetermined per-shift fees. Other operations primarily include a machine shop specializing in towboat and barge cleaning, repair and maintenance services that are charged on an hourly or a fixed fee basis depending on the scope and nature of the work. Witt O’Brien’s primarily earns revenues from time and material and retainer contracts (see Note 13). Witt O’Brien’s transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Time and material contracts primarily relate to emergency response, debris management or consulting services that Witt O’Brien’s performs for a predetermined fee. Retainer contracts, which are nearly all with vessel services operators and oil companies, are contracted based on agreed-upon rates. The Company’s Other business segment includes CLEANCOR Energy Solutions LLC (“Cleancor”) (see Note 2). Cleancor primarily earns revenues from the sale of liquefied natural gas (see Note 13). Under these arrangements, control of the goods are transfered to the customer and performance obligations are satisfied at a point in time, and therefore revenue is recognized upon delivery while any related costs are expensed as incurred. Contract liabilities from contracts with customers arise when the Company has received consideration prior to performance and are included in other current liabilities in the accompanying condensed consolidated balance sheets. |
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Lease Revenues | Lease Revenues. The Company’s lease revenues are primarily from time charters, bareboat charters and non-vessel rental agreements that are recognized ratably over the lease term as services are provided, typically on a per day basis. Under a time charter, the Company provides a vessel to a customer for a set term and is responsible for all operating expenses, typically excluding fuel. Under a bareboat charter, the Company provides a vessel to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation. Under a non-vessel rental agreement, the Company provides non-vessel property or equipment to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation. |
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Property and Equipment | Property and Equipment. Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the time period beyond which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded their useful life as set forth in the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date. As of September 30, 2018, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
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Equipment maintenance and repair costs including the costs of routine overhauls, dry-dockings and inspections performed on vessels and equipment are charged to operating expense as incurred. Expenditures that extend the useful life or improve the marketing and commercial characteristics of equipment as well as major renewals and improvements to other properties are capitalized. As of September 30, 2018, the Company’s construction in progress totaling $4.6 million primarily consisted of upgrades to inland river towboats and the construction of other Inland Services equipment, and is included in historical cost in the accompanying condensed consolidated balance sheets. Certain interest costs incurred during the construction of equipment are capitalized as part of the assets’ carrying values and are amortized over such assets’ estimated useful lives. During the nine months ended September 30, 2018, capitalized interest totaled $0.2 million. |
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. These indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If the carrying values of the assets are not recoverable, as determined by the estimated undiscounted cash flows, the estimated fair value of the assets or asset groups are compared to their current carrying value and impairment charges are recorded if the carrying value exceeds fair value. The Company performs its testing on an asset or asset group basis. The Company’s estimates of undiscounted cash flows are highly subjective and actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the nine months ended September 30, 2018, the Company did not recognize any impairment charges related to long-lived assets held for use. |
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Impairment of 50% or Less Owned Companies | Impairment of 50% or Less Owned Companies. Investments in 50% or less owned companies are reviewed periodically to assess whether there is an other-than-temporary decline in the carrying value of the investment. In its evaluation, the Company considers, among other items, recent and expected financial performance and returns, impairments recorded by the investee and the capital structure of the investee. When the Company determines the estimated fair value of an investment is below carrying value and the decline is other-than-temporary, the investment is written down to its estimated fair value. Actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance, the severity and expected duration of declines in value and the available liquidity in the capital markets to support the continuing operations of the investee, among other factors. Although the Company believes its assumptions and estimates are reasonable, the investee’s actual performance compared with the estimates could produce different results and lead to additional impairment charges in future periods. |
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Income Taxes | Income Taxes. During the nine months ended September 30, 2018, the Company’s effective income tax rate of 14.4% was primarily due to foreign sourced income not subject to U.S. tax partially offset by income taxes on Subpart F income (see Note 6). |
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Deferred Gains | Deferred Gains. The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies, and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. |
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Earnings Per Share | Earnings Per Share. Basic earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested, common shares have been issued pursuant to the exercise of outstanding stock options and common shares have been issued pursuant to the conversion of all outstanding convertible notes. |
Basis of Presentation and Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | The Company’s contract liability activity for the nine months ended September 30 was as follows (in thousands):
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Property, Plant and Equipment | As of September 30, 2018, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
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Schedule Of Deferred Gain Activity | Deferred gain activity related to these transactions for the nine months ended September 30 was as follows (in thousands):
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Schedule of Earnings Per Share, Basic and Diluted | Computations of basic and diluted earnings per common share of SEACOR were as follows (in thousands, except share data):
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Business Acquisitions (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price for the Company’s acquisitions for the nine months ended September 30, 2018 was as follows (in thousands):
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate on continuing operations for the nine months ended September 30, 2018:
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Derivative Instruments and Hedging Strategies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | The Company recognized gains on derivative instruments not designated as hedging instruments for the nine months ended September 30 as follows (in thousands):
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities as of September 30, 2018 that are measured at fair value on a recurring basis were as follows (in thousands):
______________________
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Estimated Fair Value Of Other Financial Assets And Liabilities | The estimated fair values of the Company’s other financial assets and liabilities as of September 30, 2018 were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring | The Company’s other assets and liabilities that were measured at fair value during the nine months ended September 30, 2018 were as follows (in thousands):
Investments, at equity, and advances in 50% or less owned companies. During the nine months ended September 30, 2018, the Company marked its investment in Cleancor to fair value as a consequence of the Company acquiring its partners’ 50% interest, resulting in a gain of $0.1 million, net of tax, based on the fair value of the acquired interest (see Note 2). In addition, during the nine months ended September 30, 2018, the Company identified indicators of impairment in one of its 50% or less owned companies and, as a consequence, recognized an impairment charge of $0.1 million for an other-than-temporary decline in fair value. The investment was determined to have an immaterial value. |
Noncontrolling Interests in Subsidiaries (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests in Subsidiaries | Noncontrolling interests in the Company’s consolidated subsidiaries were as follows (in thousands):
|
Share Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||
Share Based Compensation Plans | Transactions in connection with the Company’s share based compensation plans during the nine months ended September 30, 2018 were as follows:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure | The Company's capital commitments as of September 30, 2018 by year of expected payment were as follows (in thousands):
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Results, Capital Expenditures And Assets By Reporting Segment |
______________________
The following tables summarize the operating results, capital expenditures assets and disaggregated revenues of the Company’s reportable segments.
______________________
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Disaggregation of Revenue |
|
Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | Summarized selected operating results of the Company’s discontinued operations were as follows (in thousands):
|
Basis of Presentation and Accounting Policies - Discontinued Operations (Details) |
Jul. 03, 2017 |
---|---|
Illinois Corn Processing LLC | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 70.00% |
Basis of Presentation and Accounting Policies - Revenue Recognition (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | $ 983 |
Contract liabilities arising during the period | 4,374 |
Revenue recognized upon completion of performance obligations during the period | (2,291) |
Balance at end of period | $ 3,066 |
Basis of Presentation and Accounting Policies - Impairments of Long-Lived Assets (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||
Asset impairment charges | $ 0.4 | |
Other Corporate Equity Method Investments | ||
Schedule Of Equity Method Investments [Line Items] | ||
Impairment charge for an other-than-temporary decline in fair value | $ 0.1 | $ 0.9 |
Basis of Presentation and Accounting Policies - Income Taxes (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Effective income tax rate reconciliation, percent | 14.40% |
Basis of Presentation and Accounting Policies - Deferred Gains (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Deferred Gains [Roll Forward] | ||
Balance at beginning of period | $ 72,453 | $ 82,423 |
Deferred gains arising from asset sales | 0 | 7,720 |
Reclassification of deferred gains into historical cost on reacquired property and equipment | (3,052) | 0 |
Balance at end of period | 53,422 | 77,253 |
Operating Expense | ||
Deferred Gains [Roll Forward] | ||
Amortization of deferred gains | (8,991) | (11,126) |
Gain on Asset Dispositions and Impairments, Net | ||
Deferred Gains [Roll Forward] | ||
Amortization of deferred gains | (6,988) | $ (1,764) |
U.S.-flag Petroleum and Chemical Carrier | Gain on Asset Dispositions and Impairments, Net | ||
Deferred Gains [Roll Forward] | ||
Amortization of deferred gains | $ (5,500) |
Business Acquisitions (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jun. 01, 2018
USD ($)
|
Mar. 01, 2018
USD ($)
installment
|
Sep. 30, 2018
USD ($)
|
|
Business Acquisition [Line Items] | |||
Trade and other receivables | $ 1,264 | ||
Other current assets | 170 | ||
Investments, at Equity, and Advances to 50% or Less Owned Companies | (3,219) | ||
Property and Equipment | 4,382 | ||
Intangible Assets | 950 | ||
Notes receivable contributed as equity | (1,904) | ||
Other Assets | 7 | ||
Accounts payable and other accrued liabilities | (1,609) | ||
Other current liabilities | (269) | ||
Noncontrolling interests in subsidiaries | (82) | ||
Purchase price | (310) | ||
Cash acquired from acquisition | $ 3,600 | ||
Cleancor | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 50.00% | 50.00% | |
Payments to acquire businesses | $ 3,200 | ||
Capital contributed | $ 1,900 | ||
SCA | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses | $ 1,300 | ||
Number of installments | installment | 2 | ||
Contingent consideration | $ 800 |
Income Taxes (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Statutory rate | 21.00% |
Income subject to tonnage tax | (2.40%) |
Noncontrolling interests | (3.70%) |
Foreign earnings not subject to U.S. income tax | (17.70%) |
Foreign taxes not creditable against U.S. income tax | 4.10% |
Subpart F income | 12.30% |
State taxes | 0.70% |
Other | 0.10% |
Effective income tax rate reconciliation, percent | 14.40% |
Derivative Instruments And Hedging Strategies - Recognized Gains (Losses) On Derivative Instruments Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative [Line Items] | ||
Derivative gains (losses), net | $ 0 | $ 19,727 |
Exchange Option Liability | ||
Derivative [Line Items] | ||
Derivative gains (losses), net | 0 | 19,436 |
Forward Currency Exchange, Option And Future Contracts | ||
Derivative [Line Items] | ||
Derivative gains (losses), net | $ 0 | $ 291 |
Multi-Employer and Defined Benefit Pension Plans (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Withdrawal from Multiemployer Defined Benefit Plan | American Maritime Officers Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension and other postretirement benefit plans, withdrawal liability | $ 34.4 |
Share Based Compensation (Details) - shares |
9 Months Ended | |
---|---|---|
Jun. 05, 2018 |
Sep. 30, 2018 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Director stock awards granted (in shares) | 2,250,000 | |
Employee Stock Purchase Plan shares issued (in shares) | 45,251,000 | |
Restricted stock awards granted (in shares) | 121,850,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock options, outstanding as of December 31, 2017 (in shares) | 1,546,014,000 | |
Stock options, granted (in shares) | 110,660,000 | |
Stock options, exercised (in shares) | (134,212,000) | |
Stock options, outstanding as of September 30, 2018 (in shares) | 1,522,462,000 | |
Shares available for future grants and ESPP purchases as of September 30, 2018 (in shares) | 916,254,000 | |
Increase in number of shares available under employee stock purchase plan (in shares) | 300,000 |
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