Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

P2384DP1057DP1924DP3Y3MP3Y2M27D0001679049--12-31falseQ22020000292744522797437800.500001679049insw:TwoThousandAndSeventeenTermLoanAndAbnTermLoanFacilityAndTenPointSevenFivePercentSubordinatedNotesMember2020-01-012020-06-300001679049insw:LongRangeOneVesselMember2019-12-3100016790492019-03-050001679049us-gaap:RetainedEarningsMember2020-06-300001679049us-gaap:CommonStockMember2020-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300001679049us-gaap:RetainedEarningsMember2020-03-310001679049us-gaap:CommonStockMember2020-03-310001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-03-310001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-03-3100016790492020-03-310001679049us-gaap:RetainedEarningsMember2019-12-310001679049us-gaap:CommonStockMember2019-12-310001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-12-310001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310001679049us-gaap:RetainedEarningsMember2019-06-300001679049us-gaap:CommonStockMember2019-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-06-300001679049us-gaap:RetainedEarningsMember2019-03-310001679049us-gaap:CommonStockMember2019-03-310001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-03-310001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-03-3100016790492019-03-310001679049us-gaap:RetainedEarningsMember2018-12-310001679049us-gaap:CommonStockMember2018-12-310001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-310001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-310001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RetainedEarningsMember2020-01-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonStockMember2020-01-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2020-01-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2020-01-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RetainedEarningsMember2019-01-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonStockMember2019-01-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001679049insw:VesselExpenseMemberus-gaap:BuildingMember2020-04-012020-06-300001679049insw:LighteringServicesComponentMemberus-gaap:MaritimeEquipmentMember2020-04-012020-06-300001679049insw:VesselExpenseMemberus-gaap:BuildingMember2020-01-012020-06-300001679049insw:LighteringServicesComponentMemberus-gaap:MaritimeEquipmentMember2020-01-012020-06-300001679049insw:VesselExpenseMemberus-gaap:BuildingMember2019-04-012019-06-300001679049insw:LighteringServicesComponentMemberus-gaap:MaritimeEquipmentMember2019-04-012019-06-300001679049insw:VesselExpenseMemberus-gaap:BuildingMember2019-01-012019-06-300001679049insw:LighteringServicesComponentMemberus-gaap:MaritimeEquipmentMember2019-01-012019-06-300001679049insw:NonemployeeDirectorIncentiveCompensationPlanMember2020-06-220001679049insw:ManagementIncentiveCompensationPlanMember2020-06-220001679049us-gaap:RestrictedStockMemberus-gaap:SubsequentEventMember2020-07-082020-07-080001679049srt:DirectorMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMember2020-01-012020-06-300001679049insw:SeniorOfficersMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesMember2020-04-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMember2020-04-012020-06-300001679049insw:PoolRevenueLeasesMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesMember2019-04-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMember2019-04-012019-06-300001679049insw:PoolRevenueLeasesMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesMember2019-01-012019-06-300001679049insw:TimeCharterEquivalentServicesMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:LighteringServicesComponentMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:TimeCharterEquivalentServicesMember2020-04-012020-06-300001679049insw:LighteringServicesComponentMember2020-04-012020-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:LighteringServicesComponentMemberus-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:TimeCharterEquivalentServicesMember2020-01-012020-06-300001679049insw:LighteringServicesComponentMember2020-01-012020-06-300001679049insw:TimeCharterEquivalentServicesMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:LighteringServicesComponentMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:TimeCharterEquivalentServicesMember2019-04-012019-06-300001679049insw:LighteringServicesComponentMember2019-04-012019-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:TimeCharterEquivalentServicesMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:LighteringServicesComponentMemberus-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:LighteringServicesComponentMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:TimeCharterEquivalentServicesMember2019-01-012019-06-300001679049insw:LighteringServicesComponentMember2019-01-012019-06-300001679049insw:TransitionFacilityMemberinsw:TermLoanMemberus-gaap:SubsequentEventMember2020-08-042020-08-040001679049insw:CoreRevolvingFacilityMember2020-03-042020-03-040001679049insw:JefferiesFinanceLlcMember2020-01-282020-01-280001679049insw:AbnTermLoanFacilityMember2020-01-282020-01-280001679049us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-04-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2020-04-012020-06-300001679049us-gaap:InterestRateCapMember2020-04-012020-06-300001679049us-gaap:InterestExpenseMember2020-04-012020-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMember2020-01-012020-06-300001679049us-gaap:InterestExpenseMember2020-01-012020-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2019-04-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2019-04-012019-06-300001679049us-gaap:InterestRateCapMember2019-04-012019-06-300001679049us-gaap:InterestExpenseMember2019-04-012019-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2019-01-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMember2019-01-012019-06-300001679049us-gaap:InterestRateCapMember2019-01-012019-06-300001679049us-gaap:InterestExpenseMember2019-01-012019-06-3000016790492019-01-012019-12-3100016790492018-01-012018-12-310001679049us-gaap:FairValueInputsLevel2Memberinsw:OneOfTwoVeryLargeCrudeCarrierVesselsMember2020-06-300001679049insw:OneOfTwoVeryLargeCrudeCarrierVesselsMember2020-06-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:FsoTermLoanMemberus-gaap:FinancialGuaranteeMember2018-04-012018-04-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberus-gaap:SecuredDebtMember2018-03-292018-03-290001679049insw:CoreTermLoanFacilityAndTransitionTermLoanFacilityMember2020-01-012020-06-3000016790492020-06-222020-06-2200016790492020-03-302020-03-300001679049insw:DebtFacilitiesTwoThousandAndSeventeenMember2020-01-012020-06-300001679049us-gaap:RetainedEarningsMember2019-04-012019-06-300001679049us-gaap:CommonStockMember2019-04-012019-06-300001679049us-gaap:RetainedEarningsMember2019-01-012019-06-300001679049us-gaap:CommonStockMember2019-01-012019-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-04-012020-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMember2020-04-012020-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-01-012020-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-04-012019-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-04-012019-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMember2019-04-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-01-012019-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-04-012020-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-04-012020-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-04-012019-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-04-012019-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001679049us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-06-300001679049us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMember2020-04-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMember2020-04-012020-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:PoolRevenueLeasesMemberinsw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:PoolRevenueLeasesMemberinsw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMember2020-01-012020-06-300001679049insw:TimeAndBareboatCharterLeasesMember2020-01-012020-06-300001679049insw:PoolRevenueLeasesMember2020-01-012020-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:FixedPriceContractMember2019-04-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:FixedPriceContractMember2019-04-012019-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:FixedPriceContractMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberus-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberus-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:PoolRevenueLeasesMemberus-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:PoolRevenueLeasesMemberinsw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:PoolRevenueLeasesMemberinsw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesVariablePaymentsMember2019-01-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMember2019-01-012019-06-300001679049insw:TimeAndBareboatCharterLeasesMember2019-01-012019-06-300001679049insw:PoolRevenueLeasesMember2019-01-012019-06-300001679049us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:BuildingMember2020-04-012020-06-300001679049insw:VoyageExpenseMemberus-gaap:BuildingMember2020-04-012020-06-300001679049insw:CharterHireExpenseMemberus-gaap:MaritimeEquipmentMember2020-04-012020-06-300001679049us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:BuildingMember2020-01-012020-06-300001679049insw:VoyageExpenseMemberus-gaap:BuildingMember2020-01-012020-06-300001679049insw:CharterHireExpenseMemberus-gaap:MaritimeEquipmentMember2020-01-012020-06-300001679049us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:BuildingMember2019-04-012019-06-300001679049insw:VoyageExpenseMemberus-gaap:BuildingMember2019-04-012019-06-300001679049insw:CharterHireExpenseMemberus-gaap:MaritimeEquipmentMember2019-04-012019-06-300001679049us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:BuildingMember2019-01-012019-06-300001679049insw:VoyageExpenseMemberus-gaap:BuildingMember2019-01-012019-06-300001679049insw:CharterHireExpenseMemberus-gaap:MaritimeEquipmentMember2019-01-012019-06-300001679049insw:EightPointFiveSeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMember2020-06-300001679049insw:EightPointFiveSeniorNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2020-06-300001679049insw:TenPointSevenFiveSubordinatedNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SubordinatedDebtMember2019-12-310001679049insw:TenPointSevenFiveSubordinatedNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SubordinatedDebtMember2019-12-310001679049insw:EightPointFiveSeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMember2019-12-310001679049insw:EightPointFiveSeniorNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2019-12-310001679049insw:GalvestonAccidentMember2020-01-012020-06-300001679049insw:DebtFacilitiesTwoThousandAndSeventeenMemberinsw:TermLoanMember2020-06-300001679049insw:AbnTermLoanFacilityMemberinsw:TermLoanMember2020-06-300001679049insw:TransitionFacilityMemberinsw:TermLoanMember2019-12-310001679049insw:CoreTermLoanFacilityMemberinsw:TermLoanMember2019-12-310001679049insw:TransitionFacilityMemberus-gaap:FairValueInputsLevel2Memberinsw:TermLoanMember2020-06-300001679049insw:TransitionFacilityMemberus-gaap:FairValueInputsLevel1Memberinsw:TermLoanMember2020-06-300001679049insw:CoreTermLoanFacilityMemberus-gaap:FairValueInputsLevel2Memberinsw:TermLoanMember2020-06-300001679049insw:CoreTermLoanFacilityMemberus-gaap:FairValueInputsLevel1Memberinsw:TermLoanMember2020-06-300001679049insw:SinosureCreditFacilityMemberus-gaap:FairValueInputsLevel2Member2020-06-300001679049insw:SinosureCreditFacilityMemberus-gaap:FairValueInputsLevel1Member2020-06-300001679049insw:InternationalSeawaysExitFacilitiesMemberus-gaap:FairValueInputsLevel2Memberinsw:TermLoanMember2019-12-310001679049insw:InternationalSeawaysExitFacilitiesMemberus-gaap:FairValueInputsLevel1Memberinsw:TermLoanMember2019-12-310001679049insw:AbnTermLoanFacilityMemberus-gaap:FairValueInputsLevel2Memberinsw:TermLoanMember2019-12-310001679049insw:AbnTermLoanFacilityMemberus-gaap:FairValueInputsLevel1Memberinsw:TermLoanMember2019-12-310001679049insw:SinosureCreditFacilityMemberus-gaap:FairValueInputsLevel2Member2019-12-310001679049insw:SinosureCreditFacilityMemberus-gaap:FairValueInputsLevel1Member2019-12-310001679049insw:InternationalSeawaysExitFacilitiesMemberinsw:TermLoanMember2019-12-310001679049us-gaap:RevolvingCreditFacilityMemberinsw:CoreRevolvingFacilityMember2020-01-230001679049insw:TransitionFacilityMemberinsw:TermLoanMember2020-01-230001679049insw:DebtFacilitiesTwoThousandAndTwentyMemberus-gaap:SecuredDebtMember2020-01-230001679049insw:CoreTermLoanFacilityMemberinsw:TermLoanMember2020-01-230001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberus-gaap:SecuredDebtMember2018-03-290001679049insw:CoreTermLoanFacilityMemberinsw:TermLoanMember2020-01-012020-06-300001679049insw:CoreRevolvingFacilityMember2020-01-012020-06-300001679049insw:CoreRevolvingFacilityMember2020-01-280001679049insw:ChartersOutMember2020-06-300001679049insw:TimeChartersInMember2020-06-300001679049insw:OfficeSpaceAndLighteringWorkboatDockSpaceMember2020-06-300001679049insw:BareboatChartersInMember2020-06-300001679049insw:OfficeSpaceAndLighteringWorkboatDockSpaceMember2020-01-012020-06-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:FloatingStorageOffloadingUnitAsiaAndUnitAfricaMember2020-06-300001679049insw:OtherEquityMethodInvestmentsMember2020-06-300001679049insw:AmortizationOfIssuanceAndDeferredFinancingCostsAndCommitmentsAndAdministrativeAndOtherFeesForDebtFacilitiesMember2020-04-012020-06-300001679049insw:AmortizationOfIssuanceAndDeferredFinancingCostsAndCommitmentsAndAdministrativeAndOtherFeesForDebtFacilitiesMember2020-01-012020-06-300001679049insw:AmortizationOfIssuanceAndDeferredFinancingCostsAndCommitmentsAndAdministrativeAndOtherFeesForDebtFacilitiesMember2019-04-012019-06-300001679049insw:AmortizationOfIssuanceAndDeferredFinancingCostsAndCommitmentsAndAdministrativeAndOtherFeesForDebtFacilitiesMember2019-01-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-04-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-04-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-06-300001679049us-gaap:InterestRateCapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001679049us-gaap:InterestRateCapMember2020-01-012020-01-270001679049us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-04-012020-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-04-012019-06-300001679049us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-06-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:FsoTermLoanMember2020-06-300001679049insw:Aframax2002SoldMember2020-01-012020-01-310001679049insw:LngJointVentureAndTiAfricaAndTiAsiaLimitedMember2020-06-300001679049us-gaap:SubsequentEventMember2020-08-042020-08-0400016790492020-05-202020-05-2000016790492020-02-262020-02-260001679049us-gaap:SubsequentEventMember2020-08-0400016790492020-05-2000016790492020-02-260001679049us-gaap:InterestRateCapMember2020-01-270001679049insw:NonCurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001679049insw:CurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001679049us-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001679049insw:NonCurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001679049insw:NonCurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateCapMemberus-gaap:NondesignatedMember2019-12-310001679049insw:CurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001679049insw:CurrentPortionOfDerivativeLiabilityMemberus-gaap:InterestRateCapMemberus-gaap:NondesignatedMember2019-12-310001679049us-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001679049insw:SinosureCreditFacilityMemberus-gaap:InterestRateSwapMember2020-06-210001679049insw:SinosureCreditFacilityMemberus-gaap:InterestRateSwapMember2020-06-2000016790492020-04-300001679049us-gaap:InterestRateSwapMember2020-01-280001679049us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2020-06-300001679049us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2020-06-300001679049us-gaap:InterestRateSwapMember2020-06-300001679049us-gaap:FairValueInputsLevel2Memberinsw:InterestRateSwapsAndCollarMember2019-12-310001679049us-gaap:FairValueInputsLevel1Memberinsw:InterestRateSwapsAndCollarMember2019-12-310001679049insw:InterestRateSwapsAndCollarMember2019-12-310001679049us-gaap:RevolvingCreditFacilityMemberinsw:CoreRevolvingFacilityMember2020-06-300001679049insw:CoreTermLoanFacilityAndCoreTransitionFacilityAndSinosureCreditFacilityAnd8.5SeniorNotesMemberinsw:TermLoanMember2020-06-300001679049insw:CoreRevolvingFacilityMemberinsw:TermLoanMember2020-06-300001679049insw:DebtFacilitiesTwoThousandAndTwentyMember2020-06-300001679049insw:CoreTermLoanFacilityAndTransitionTermLoanFacilityMember2020-06-300001679049insw:CoreTermLoanFacilityAndTransitionTermLoanFacilityDeemedExpensedMember2020-03-310001679049us-gaap:RevolvingCreditFacilityMemberinsw:InternationalSeawaysExitFacilitiesMember2019-12-310001679049insw:CoreTermLoanFacilityAndCoreTransitionFacilityAndSinosureCreditFacilityAnd8.5SeniorNotesMemberinsw:TermLoanMember2019-12-310001679049us-gaap:SubsequentEventMember2020-07-080001679049insw:TransitionFacilityMemberinsw:TermLoanMember2020-06-300001679049insw:CoreTermLoanFacilityMemberinsw:TermLoanMember2020-06-300001679049insw:DebtFacilitiesTwoThousandAndSeventeenMemberinsw:TermLoanMember2019-12-310001679049insw:AbnTermLoanFacilityMemberinsw:TermLoanMember2019-12-310001679049insw:SinosureCreditFacilityMember2019-12-310001679049insw:TenPointSevenFiveSubordinatedNotesMember2020-01-280001679049insw:EightPointFiveSeniorNotesMemberus-gaap:SubordinatedDebtMember2020-06-300001679049insw:EightPointFiveSeniorNotesMemberus-gaap:SeniorNotesMember2020-06-300001679049insw:TenPointSevenFiveSubordinatedNotesMember2020-06-300001679049insw:TenPointSevenFiveSubordinatedNotesMemberus-gaap:SubordinatedDebtMember2019-12-310001679049insw:EightPointFiveSeniorNotesMemberus-gaap:SeniorNotesMember2019-12-310001679049us-gaap:AccountsReceivableMember2020-01-012020-06-300001679049us-gaap:AccountsReceivableMember2019-01-012019-12-310001679049us-gaap:FairValueInputsLevel2Member2020-06-300001679049us-gaap:FairValueInputsLevel1Member2020-06-300001679049us-gaap:FairValueInputsLevel2Member2019-12-310001679049us-gaap:FairValueInputsLevel1Member2019-12-310001679049insw:OneOfTwoVeryLargeCrudeCarrierVesselsMember2020-04-012020-06-300001679049insw:OneOfTwoVeryLargeCrudeCarrierVesselsMember2020-01-012020-06-300001679049us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001679049us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001679049us-gaap:EmployeeStockOptionMember2019-04-012019-06-300001679049us-gaap:EmployeeStockOptionMember2019-01-012019-06-3000016790492018-12-3100016790492017-12-310001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RetainedEarningsMember2020-04-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonStockMember2020-04-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2020-04-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2020-04-012020-06-300001679049us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RetainedEarningsMember2019-04-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonStockMember2019-04-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2019-04-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2019-04-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001679049us-gaap:RestrictedStockMember2019-04-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2019-01-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2019-01-012019-06-300001679049us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001679049us-gaap:RestrictedStockMember2019-01-012019-06-300001679049us-gaap:RetainedEarningsMember2020-04-012020-06-300001679049us-gaap:CommonStockMember2020-04-012020-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001679049us-gaap:RetainedEarningsMember2020-01-012020-06-300001679049us-gaap:CommonStockMember2020-01-012020-06-300001679049us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001679049insw:SeniorOfficersMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-01-012020-06-300001679049insw:SeniorOfficersMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-01-012020-06-300001679049insw:PeriodThereafterJune302020Memberinsw:DebtFacilitiesTwoThousandAndTwentyMember2020-01-232020-01-230001679049insw:PeriodFromJanuary282020Memberinsw:DebtFacilitiesTwoThousandAndTwentyMember2020-01-232020-01-230001679049us-gaap:SubsequentEventMember2020-07-012020-07-310001679049us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMember2019-04-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-06-300001679049insw:SeniorOfficersMember2020-01-012020-06-300001679049insw:SeniorOfficersMemberus-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-01-012020-06-300001679049us-gaap:RestrictedStockMember2020-04-012020-06-300001679049us-gaap:RestrictedStockMember2020-01-012020-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RestrictedStockMember2019-04-012019-06-300001679049us-gaap:RestrictedStockUnitsRSUMemberus-gaap:RestrictedStockMember2019-01-012019-06-300001679049insw:TimeChartersInMember2020-01-012020-06-300001679049insw:BareboatChartersInMember2020-01-012020-06-300001679049us-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:VesselOperationsMember2020-04-012020-06-300001679049insw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049us-gaap:AllOtherSegmentsMember2020-01-012020-06-300001679049insw:VesselOperationsMember2020-01-012020-06-300001679049insw:InternationalProductCarriersSegmentMember2020-01-012020-06-300001679049insw:InternationalCrudeTankersSegmentMember2020-01-012020-06-300001679049us-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:VesselOperationsMember2019-04-012019-06-300001679049insw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049us-gaap:AllOtherSegmentsMember2019-01-012019-06-300001679049insw:VesselOperationsMember2019-01-012019-06-300001679049insw:InternationalProductCarriersSegmentMember2019-01-012019-06-300001679049insw:InternationalCrudeTankersSegmentMember2019-01-012019-06-300001679049insw:TwoVeryLargeCrudeCarriersVesselsMember2020-06-3000016790492020-03-012020-03-310001679049insw:VeryLargeCrudeCarrierMember2020-01-012020-06-300001679049insw:PanamaxesMember2020-01-012020-06-300001679049insw:TwoFloatingStorageAndOffloadingVesselsMemberinsw:InternationalCrudeTankersSegmentMember2020-06-300001679049insw:FourLngCarriersMemberus-gaap:AllOtherSegmentsMember2020-06-300001679049insw:LngJointVentureMember2020-06-300001679049insw:OneVeryLargeCrudeCarrierVesselsWithUnrecoverableCarryingValueMember2020-01-012020-06-300001679049insw:TransitionFacilityMember2020-06-300001679049insw:CoreTermLoanFacilityAndCoreRevolvingFacilityMember2020-06-300001679049us-gaap:MaritimeEquipmentMember2020-06-300001679049insw:VesselsWithInterestInMember2020-06-300001679049insw:CharterInVesselsMember2020-06-300001679049insw:TimeChartersInMemberinsw:VeryLargeCrudeCarrierMember2020-01-012020-06-300001679049insw:TimeChartersInMemberinsw:PanamaxesMember2020-01-012020-06-300001679049insw:BareboatChartersInMemberinsw:AframaxesMember2020-01-012020-06-300001679049insw:WorkboatVesselMember2020-01-012020-06-300001679049insw:MediumRangeVesselMember2020-01-012020-06-300001679049insw:LongRangeOneVesselMember2020-01-012020-06-300001679049insw:AframaxesMember2020-01-012020-06-300001679049insw:ChartersOutMember2020-01-012020-06-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:TwoFloatingStorageAndOffloadingVesselsMember2020-01-012020-06-300001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-06-300001679049us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMember2020-04-012020-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberus-gaap:AllOtherSegmentsMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalProductCarriersSegmentMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMemberinsw:InternationalCrudeTankersSegmentMember2019-04-012019-06-300001679049insw:VoyageCharterLeasesNonVariablePaymentsMemberus-gaap:FixedPriceContractMember2019-04-012019-06-300001679049insw:MerchantNavyRatingsPensionFundMember2020-06-300001679049insw:MerchantNavyOfficersPensionFundMember2020-06-300001679049insw:MerchantNavyRatingsPensionFundMember2020-01-012020-06-300001679049insw:CoreTermLoanFacilityMember2020-01-2300016790492020-04-012020-06-300001679049insw:TwoVeryLargeCrudeCarriersVesselsMember2020-01-012020-06-3000016790492019-12-310001679049srt:MaximumMemberinsw:DebtFacilitiesTwoThousandAndTwentyMember2020-01-232020-01-230001679049insw:TenPointSevenFiveSubordinatedNotesMemberus-gaap:SubordinatedDebtMember2020-06-300001679049us-gaap:ScenarioPlanMember2020-07-310001679049insw:SeawaysHoldingCompanyMember2020-06-300001679049insw:DebtFacilitiesTwoThousandAndTwentyMember2020-01-232020-01-230001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:FsoTermLoanMember2018-04-012018-04-300001679049insw:DebtFacilitiesTwoThousandAndTwentyMemberinsw:SideLetterAgreementMemberinsw:VesselSeawaysMulanMember2020-05-152020-05-150001679049insw:DebtFacilitiesTwoThousandAndTwentyMemberinsw:SideLetterAgreementMemberinsw:VesselSeawaysMulanMember2020-03-122020-03-120001679049insw:DebtFacilitiesTwoThousandAndTwentyMemberinsw:VesselSeawaysMulanMember2020-03-112020-03-110001679049insw:SinosureCreditFacilityMember2020-06-300001679049insw:DebtFacilitiesTwoThousandAndSeventeenMember2020-01-230001679049insw:FloatingStorageAndOffloadingServiceJointVentureMemberinsw:FsoTermLoanMember2018-04-300001679049insw:TransitionFacilityMember2020-01-232020-01-230001679049insw:CoreTermLoanFacilityMember2020-01-232020-01-2300016790492019-04-012019-06-3000016790492019-01-012019-06-300001679049us-gaap:AllOtherSegmentsMember2020-06-300001679049insw:InternationalProductCarriersSegmentMember2020-06-300001679049insw:InternationalCrudeTankersSegmentMember2020-06-3000016790492020-06-300001679049us-gaap:AllOtherSegmentsMember2019-06-300001679049insw:InternationalProductCarriersSegmentMember2019-06-300001679049insw:InternationalCrudeTankersSegmentMember2019-06-3000016790492019-06-300001679049us-gaap:CommonStockMember2020-01-012020-06-300001679049insw:EightPointFiveSeniorNotesMember2020-01-012020-06-3000016790492020-07-3100016790492020-01-012020-06-30xbrli:sharesiso4217:USDxbrli:pureinsw:iteminsw:contractinsw:leaseinsw:propertyiso4217:USDxbrli:sharesinsw:segment

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to         

Commission File Number        1-37836-1       

INTERNATIONAL SEAWAYS, INC.

(Exact name of registrant as specified in its charter)

Marshall Islands

    

98-0467117

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification Number)

600 Third Avenue, 39th Floor, New York, New York

10016

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 212-578-1600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer

Smaller reporting company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock (no par value)

INSW

New York Stock Exchange

8.5% Senior Notes due 2023

INSW - PA

New York Stock Exchange

Former name, former address and former fiscal year, if changed since last report

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date. The number of shares outstanding of the issuer’s common stock as of July 31, 2020: common stock, no par value 27,983,771 shares.

1

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
DOLLARS IN THOUSANDS
(UNAUDITED)

June 30,

December 31,

2020

2019

ASSETS

Current Assets:

Cash and cash equivalents

$

128,063

$

89,671

Voyage receivables, net of allowance for credit losses of $62 and $1,245

including unbilled of $96,324 and $74,355

100,876

83,845

Other receivables

5,003

3,938

Inventories

1,878

3,896

Prepaid expenses and other current assets

6,412

5,994

Total Current Assets

242,232

187,344

Restricted cash

16,398

60,572

Vessels and other property, less accumulated depreciation of $347,172 and $364,868

1,287,478

1,292,516

Deferred drydock expenditures, net

28,115

23,125

Operating lease right-of-use assets

26,386

33,718

Investments in and advances to affiliated companies

155,191

153,292

Other assets

3,156

2,934

Total Assets

$

1,758,956

$

1,753,501

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable, accrued expenses and other current liabilities

$

29,424

$

27,554

Current portion of operating lease liabilities

10,411

12,958

Current installments of long-term debt

81,483

70,350

Current portion of derivative liability

9,227

3,614

Total Current Liabilities

130,545

114,476

Long-term operating lease liabilities

13,504

17,953

Long-term debt

523,414

590,745

Long-term derivative liability

18,191

6,545

Other liabilities

1,249

1,489

Total Liabilities

686,903

731,208

Commitments and contingencies

Equity:

Capital - 100,000,000 no par value shares authorized; 27,974,378 and 29,274,452

shares issued and outstanding

1,281,072

1,313,178

Accumulated deficit

(172,938)

(270,315)

1,108,134

1,042,863

Accumulated other comprehensive loss

(36,081)

(20,570)

Total Equity

1,072,053

1,022,293

Total Liabilities and Equity

$

1,758,956

$

1,753,501

See notes to condensed consolidated financial statements

2

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
(UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Shipping Revenues:

Pool revenues, including $71,282, $26,731, $141,957 and $67,891

from companies accounted for by the equity method

$

100,059

$

44,713

$

201,268

$

112,350

Time and bareboat charter revenues

26,655

6,541

35,259

12,061

Voyage charter revenues

13,011

17,756

28,535

46,473

139,725

69,010

265,062

170,884

Operating Expenses:

Voyage expenses

4,436

6,523

10,042

14,368

Vessel expenses

30,278

30,746

63,238

61,284

Charter hire expenses

7,540

13,033

17,771

30,218

Depreciation and amortization

18,880

18,818

37,147

37,747

General and administrative

6,694

6,297

14,128

13,070

Provision for credit losses, net

(129)

(21)

(67)

1,277

Third-party debt modification fees

232

30

Loss on disposal of vessels and other property, including impairments

4,134

1,548

1,330

1,500

Total operating expenses

71,833

76,944

143,821

159,494

Income/(loss) from vessel operations

67,892

(7,934)

121,241

11,390

Equity in income of affiliated companies

5,205

8,015

10,316

16,085

Operating income

73,097

81

131,557

27,475

Other income/(expense)

143

839

(13,289)

1,875

Income before interest expense and income taxes

73,240

920

118,268

29,350

Interest expense

(8,881)

(17,443)

(20,890)

(34,976)

Income/(loss) before income taxes

64,359

(16,523)

97,378

(5,626)

Income tax provision

(1)

(1)

Net income/(loss)

$

64,358

$

(16,523)

$

97,377

$

(5,626)

Weighted Average Number of Common Shares Outstanding:

Basic

28,469,969

29,220,345

28,812,299

29,200,897

Diluted

28,639,780

29,220,345

28,989,146

29,200,897

Per Share Amounts:

Basic net income/(loss) per share

$

2.26

$

(0.57)

$

3.37

$

(0.19)

Diluted net income/(loss) per share

$

2.24

$

(0.57)

$

3.35

$

(0.19)

See notes to condensed consolidated financial statements

3

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
DOLLARS IN THOUSANDS
(UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Net income/(loss)

$

64,358

$

(16,523)

$

97,377

$

(5,626)

Other comprehensive (loss)/income, net of tax:

Net change in unrealized losses on cash flow hedges

(1,183)

(7,203)

(16,168)

(10,381)

Defined benefit pension and other postretirement benefit plans:

Net change in unrecognized prior service costs

8

30

80

4

Net change in unrecognized actuarial losses

56

197

577

24

Other comprehensive loss, net of tax

(1,119)

(6,976)

(15,511)

(10,353)

Comprehensive income/(loss)

$

63,239

$

(23,499)

$

81,866

$

(15,979)

See notes to condensed consolidated financial statements

4

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
DOLLARS IN THOUSANDS
(UNAUDITED)

Six Months Ended June 30,

2020

2019

Cash Flows from Operating Activities:

Net income/(loss)

$

97,377

$

(5,626)

Items included in net income/(loss) not affecting cash flows:

Depreciation and amortization

37,147

37,747

Loss on write-down of vessels and other assets

5,469

Amortization of debt discount and other deferred financing costs

1,708

3,560

Deferred financing costs write-off

12,501

Stock compensation, non-cash

2,503

1,821

Earnings of affiliated companies

(10,209)

(16,367)

Change in fair value of interest rate collar recorded through earnings

1,271

Other – net

512

227

Items included in net income/(loss) related to investing and financing activities:

(Gain)/loss on disposal of vessels and other property, net

(4,139)

1,500

Loss on extinguishment of debt

1,014

Cash distributions from affiliated companies

5,250

6,528

Payments for drydocking

(12,513)

(10,878)

Insurance claims proceeds related to vessel operations

570

640

Changes in operating assets and liabilities:

(Increase)/decrease in receivables

(17,031)

20,163

Increase/(decrease) in deferred revenue

2,970

(15)

Net change in inventories, prepaid expenses and other current assets, accounts

payable, accrued expenses and other current and long-term liabilities

3,290

4,478

Net cash provided by operating activities

127,690

43,778

Cash Flows from Investing Activities:

Expenditures for vessels and vessel improvements

(40,949)

(5,356)

Proceeds from disposal of vessels and other property

13,578

9,090

Expenditures for other property

(348)

(301)

Investments in and advances to affiliated companies, net

(46)

434

Repayments of advances from affiliated companies

5,272

Net cash (used in)/provided by investing activities

(27,765)

9,139

Cash Flows from Financing Activities:

Issuance of debt, net of issuance and deferred financing costs

362,989

Extinguishment of debt

(382,699)

Payments on debt

(51,266)

(19,652)

Cash dividends paid

(3,412)

Repurchases of common stock

(29,997)

Cash paid to tax authority upon vesting of stock-based compensation

(1,200)

(359)

Other – net

(122)

(258)

Net cash used in financing activities

(105,707)

(20,269)

Net (decrease)/increase in cash, cash equivalents and restricted cash

(5,782)

32,648

Cash, cash equivalents and restricted cash at beginning of year

150,243

117,644

Cash, cash equivalents and restricted cash at end of period

$

144,461

$

150,292

See notes to condensed consolidated financial statements

5

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
DOLLARS IN THOUSANDS
(UNAUDITED)

Accumulated

Other

Accumulated

Comprehensive

Capital

Deficit

Loss

Total

For the six months ended

Balance at January 1, 2020

$

1,313,178

$

(270,315)

$

(20,570)

$

1,022,293

Net income

97,377

97,377

Other comprehensive loss

(15,511)

(15,511)

Dividends declared and paid

(3,412)

(3,412)

Forfeitures of vested restricted stock awards

(1,200)

(1,200)

Compensation relating to restricted stock awards

406

406

Compensation relating to restricted stock units awards

1,589

1,589

Compensation relating to stock option awards

508

508

Repurchase of common stock

(29,997)

(29,997)

Balance at June 30, 2020

$

1,281,072

$

(172,938)

$

(36,081)

$

1,072,053

Balance at January 1, 2019

$

1,309,269

$

(269,485)

$

(29,929)

$

1,009,855

Net loss

(5,626)

(5,626)

Other comprehensive loss

(10,353)

(10,353)

Forfeitures of vested restricted stock awards

(359)

(359)

Compensation relating to restricted stock awards

434

434

Compensation relating to restricted stock units awards

883

883

Compensation relating to stock option awards

504

504

Balance at June 30, 2019

$

1,310,731

$

(275,111)

$

(40,282)

$

995,338

For the three months ended

Balance at April 1, 2020

$

1,301,938

$

(237,296)

$

(34,962)

$

1,029,680

Net income

64,358

64,358

Other comprehensive loss

(1,119)

(1,119)

Dividends declared and paid

(1,683)

(1,683)

Forfeitures of vested restricted stock awards

(495)

(495)

Compensation relating to restricted stock awards

177

177

Compensation relating to restricted stock units awards

834

834

Compensation relating to stock option awards

286

286

Repurchase of common stock

(19,985)

(19,985)

Balance at June 30, 2020

$

1,281,072

$

(172,938)

$

(36,081)

$

1,072,053

Balance at April 1, 2019

$

1,309,881

$

(258,588)

$

(33,306)

$

1,017,987

Net loss

(16,523)

(16,523)

Other comprehensive loss

(6,976)

(6,976)

Forfeitures of vested restricted stock awards

(210)

(210)

Compensation relating to restricted stock awards

202

202

Compensation relating to restricted stock units awards

587

587

Compensation relating to stock option awards

271

271

Balance at June 30, 2019

$

1,310,731

$

(275,111)

$

(40,282)

$

995,338

See notes to condensed consolidated financial statements

6

INTERNATIONAL SEAWAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 1 — Basis of Presentation:

The accompanying unaudited condensed consolidated financial statements include the accounts of International Seaways, Inc. (“INSW”), a Marshall Islands corporation, and its wholly owned subsidiaries. The Company owns and operates a fleet of 40 oceangoing vessels, including four vessels that have been chartered-in under operating leases for durations exceeding one year at inception and two vessels in which the Company has interests through its joint ventures, engaged primarily in the transportation of crude oil and refined petroleum products in the International Flag trade through its wholly owned subsidiaries. In July 2020, we redelivered a chartered-in MR to its owner upon expiry of the time charter. Unless the context indicates otherwise, references to “INSW”, the “Company”, “we”, “us” or “our”, refer to International Seaways, Inc. and its subsidiaries.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles in the United States. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.

The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

All intercompany balances and transactions within INSW have been eliminated. Investments in 50% or less owned affiliated companies, in which INSW exercises significant influence, are accounted for by the equity method.

Note 2 — Significant Accounting Policies:

For a description of all of the Company’s material accounting policies, see Note 2, “Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K. The following is a summary of any changes or updates to the Company’s critical accounting policies for the current period:

Cash, cash equivalents and Restricted cash Interest-bearing deposits that are highly liquid investments and have a maturity of three months or less when purchased are included in cash and cash equivalents. Restricted cash of $16.4 million as of June 30, 2020 represents legally restricted cash relating to the Company's Sinosure Credit Facility (See Note 9, “Debt”). Restricted cash of $60.6 million as of December 31, 2019 represents legally restricted cash relating to the Company’s 2017 Term Loan Facility, Sinosure Credit Facility, ABN Term Loan Facility, and 10.75% Unsecured Subordinated Notes. Such restricted cash reserves are included in the non-current assets section of the condensed consolidated balance sheets.

Concentration of Credit Risk We are subject to concentrations of credit risk principally from cash and cash equivalents and voyage receivables due from charterers and pools in which the Company participates. We manage our credit risk exposure through assessment of our counterparty creditworthiness. Cash equivalents consist primarily of time deposits, and money market funds. We place our cash and cash equivalents in what we believe to be credit-worthy financial institutions. Our money market funds are carried at fair market value. Voyage receivables consist of (i) operating lease receivables associated with revenues from leases accounted for under ASC 842, Leases (ASC 842), which are primarily unbilled amounts due from pools; and (ii) billed and unbilled non-operating lease receivables associated with revenues from services accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606), which are due within one year. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We maintain allowances for estimated credit losses and these losses have generally been within our expectations.

7

INTERNATIONAL SEAWAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

With respect to non-operating lease receivables, the Company recognizes as an allowance its estimate of expected credit losses in accordance with ASC 326, Financial Instruments – Credit losses (ASC 326), based on troubled accounts, historical experience, other currently available evidence, and reasonable and supportable forecasts about the future. The Company makes significant judgements and assumptions to estimate its expected losses. We make judgments about the creditworthiness of customers based on ongoing credit evaluations including analysis of the counterparty’s established credit rating or assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available, country and political risk of the counterparty, and their business strategy. We manage our non-operating lease receivable portfolios using delinquency as a key credit quality indicator. The Company performs the following steps in estimating expected losses: (i) gather historical losses over 5 years; (ii) assume outstanding billed amounts over 180 days as additional expected losses; and (iii) make forward-looking adjustments to the expected losses to reflect future economic conditions by comparing credit default swap rates of significant customers over time. In addition, the Company performs individual assessments for customers that do not share risk characteristics with other customers (for example a customer under bankruptcy or a customer with known disputes or collectability issues).

The allowance for credit losses is recognized as an allowance or contra-asset and reflects our best estimate of probable losses inherent in the voyage receivables balance. Provisions for credit losses associated with voyage receivables are included in provision for credit losses on the condensed consolidated statements of operations. Activity for allowance for credit losses is summarized as follows:

(Dollars in thousands)

Allowance for Credit Losses - Voyage Receivables

Balance at January 1, 2018

$

Provision for expected credit losses

Balance at December 31, 2018

Provision for expected credit losses

1,245

Balance at December 31, 2019

1,245

Provision for expected credit losses

62

Write-offs charged against the allowance

(1,116)

Recoveries of amounts previously written off

(129)

Balance at June 30, 2020

$

62

We are also exposed to credit losses from off-balance sheet exposures related to guarantees of joint venture debt. See Note 6, “Equity Method Investments,” for more information on these off-balance sheet exposures.

During the three and six months ended June 30, 2020 and 2019, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 95% and 88% of consolidated voyage receivables at June 30, 2020 and December 31, 2019, respectively.

Deferred finance charges Finance charges, excluding original issue discount, incurred in the arrangement and/or amendments resulting in the modification of debt are deferred and amortized to interest expense on either an effective interest method or straight-line basis over the term of the related debt. Unamortized deferred finance charges of $0.9 million relating to the Core Revolving Facility (See Note 9, “Debt”) as of June 30, 2020 and $0.3 million relating to the 2017 Revolver Facility as of December 31, 2019, respectively, are included in other assets in the condensed consolidated balance sheets. Unamortized deferred financing charges of $8.5 million and $16.3 million relating to the Company’s outstanding debt facilities as of June 30, 2020 and December 31, 2019, respectively, are included in long-term debt in the condensed consolidated balance sheets. Interest expense relating to the amortization of deferred financing charges amounted to $0.7 million and $1.6 million for the three and six months ended June 30, 2020, respectively, and $1.3 million and $2.5 million for the three and six months ended June 30, 2019, respectively.

Recently Adopted Accounting Standards — In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit losses (ASC 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model known as the current expected credit loss (“CECL”) model that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to recognize as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. Credit impairment will be recognized as an allowance or contra-asset rather than as a direct write-

8

INTERNATIONAL SEAWAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

down of the amortized cost basis of a financial asset. However, the carrying amount of a financial asset that is deemed uncollectible will be written off in a manner consistent with existing standards. In addition, for guarantees in the scope of ASC 326, entities must measure the expected credit losses arising from the contingent aspect under the CECL model in addition to recognizing the liability for the noncontingent aspect of the guarantee under ASC 460, Guarantees. A standalone liability representing the amount that an entity expects to pay on the guarantee related to expected credit losses is required for the contingent aspect. Financial assets measured at fair value through net income are scoped out of CECL. In November 2018, the FASB issued ASU 2018-19, Financial Instruments – Credit losses (ASC 326), which clarifies that operating lease receivables are not within the scope of ASC 326 and should instead be accounted for under the leasing standard, ASC 842. The ASU requires a cumulative-effect adjustment to the retained earnings as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not to be adjusted. The adoption of ASC 326 on January 1, 2020 did not have a material impact on our consolidated financial statements since most of our voyage receivables are operating lease receivables, which are not in the scope of ASC 326. The Company determined that the cumulative-effect adjustment as of January 1, 2020 to accumulated deficit attributable to (i) an increase in our allowance for doubtful accounts associated with revenues from services and (ii) the recognition of guarantee liabilities associated with the contingent aspect of our current financial guarantee obligations, was immaterial.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASC 820), which changes the fair value measurement disclosure requirements. The new disclosure requirements are: (1) changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The eliminated disclosure requirements are: (1) transfers between Level 1 and Level 2 of the fair value hierarchy; and (2) policies related to valuation processes and the timing of transfers between levels of the fair value hierarchy. Under ASU 2018-13, entities are no longer required to estimate and disclose the timing of liquidity events for investments measured at fair value. Instead, the requirement to disclose such events applies only when they have been communicated to the reporting entities by the investees or announced publicly. The standard is effective for the first interim reporting period within annual periods beginning after December 15, 2019. The adoption of this accounting policy had no impact on the Company’s consolidated financial statements because we did not have Level 3 fair value measurements during the six months ended June 30, 2020.

Recently Issued Accounting StandardsOn May 20, 2020, the SEC issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. Among other changes, the final rule modifies the significance tests and disclosure requirements for (i) acquired or to be acquired businesses, (ii) real estate operations, (iii) pro forma financial information and (iv) equity method investees. Key amendments in the final rule will (i) change the investment test to use the aggregate worldwide market value of common equity of the registrant when a registrant is evaluating businesses for significance; and (ii) change the income test to use the lower measure of significance based on (1) income from continuing operations before taxes or (2) revenue. The new rule requires the use of absolute values of five years income instead of zeros for loss years. However, the amendments also limit the use of income averaging to situations in which the revenue test is not applicable (i.e., either the registrant or the acquiree did not have material revenue in each of the two most recently completed fiscal years). Because we do have material revenue in the past two years, we can’t use five year averaging. The final rule is applicable for a registrant’s fiscal year beginning after December 31, 2020 and early application is permitted. Adoption of this final rule may have an impact on disclosure requirements of our joint ventures accounted for using the equity method. The Company is in the process of evaluating the impact of changes to the income significance test.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848), which provides relief for companies preparing for discontinuation of interest rates such as LIBOR. A contract modification is eligible to apply the optional relief to account for the modifications as a continuation of the existing contracts without additional analysis and consider embedded features to be clearly and closely related to the host contract without reassessment, if all of the following criteria are met: (i) contract references a rate that will be discontinued; (ii) modified terms directly replace (or have potential to replace) this reference rate; and (iii) changes to any other terms that change (or have potential to change) amount and timing of cash flows must be related to replacement of reference rate. In addition, this guidance provides relief from certain hedge accounting requirements. Hedge accounting may continue uninterrupted when critical terms change due to reference rate reform. For cash flow hedges, entities can (i) disregard potential discontinuation of a referenced interest rate when assessing whether a hedged forecasted interest payment is probable; (ii) continue hedge accounting upon a change in the hedged risk as long as the hedge is still highly effective; (iii) assess effectiveness of the hedge relationship in ways that essentially disregards a potential mismatch in the variable rate indexes between the hedging instrument and the hedged item; and (iv) disregard the requirement that individual hedged transactions must share the same risk exposure for hedges of portfolios of forecasted

9

INTERNATIONAL SEAWAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

transactions that reference a rate affected by reference rate reform. Relief provided by this ASU is optional and expires December 31, 2022. The Company has determined that its primary exposure to LIBOR is in relation to its floating rate debt facilities and the interest rate derivatives to which it is a party. Through a review of the Company’s debt agreements and interest rate derivative contracts the Company believes there are adequate provisions within such agreements that provide guidance on how the Company and its counterparties under such agreements will address what happens when LIBOR is no longer available.

In August 2018, the FASB issued ASU 2018-14, Defined Benefit Plans (ASC 715), which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 adds requirements for an entity to disclose the following: (1) the weighted average interest crediting rates used in the entity’s cash balance pension plans and other similar plans; (2) a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period; and (3) an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the ASU removes guidance that requires the following disclosures: (1) the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year; (2) information about plan assets to be returned to the entity, including amounts and expected timing; (3) information about benefits covered by related-party insurance and annuity contracts and significant transactions between the plan and related parties; and (4) effects of a one-percentage-point change in the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. The standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2020 and early adoption is permitted. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements.

Note 3 — Earnings per Common Share:

Basic earnings per common share is computed by dividing earnings, after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period.

The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities. Participating securities are defined by ASC 260, Earnings Per Share, as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents and are included in the computation of earnings per share pursuant to the two-class method.

Weighted average shares of unvested restricted common stock considered to be participating securities totaled 39,093 and 45,100 for the three and six months ended June 30, 2020, respectively, and 42,267 and 44,870 for the three and six months ended June 30, 2019, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. As of June 30, 2020, there were 332,782 shares of restricted stock units and 670,624 stock options outstanding and considered to be potentially dilutive securities.

The components of the calculation of basic earnings per share and diluted earnings per share are as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

2020

2019

2020

2019

Net income/(loss)

$

64,358

$

(16,523)

$

97,377

$

(5,626)

Weighted average common shares outstanding:

Basic

28,469,969

29,220,345

28,812,299

29,200,897

Diluted