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INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES | 6 Months Ended
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Jun. 30, 2014
Net Investment in Direct Financing and Sales Type Leases [Abstract] |
INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES | INVESTMENTS IN DIRECT FINANCING AND SALES-TYPE LEASES As at June 30, 2014, 20 of the Company's double-hull VLCCs and Suezmax tankers were chartered to Frontline Shipping Limited (“Frontline Shipping”) and Frontline Shipping II Limited (“Frontline Shipping II”) on long-term, fixed rate time charters which extend for various periods depending on the age of the vessels, ranging from approximately four to 13 years. Frontline Shipping and Frontline Shipping II are subsidiaries of Frontline Ltd. (“Frontline”), a related party, and the terms of the charters do not provide them with an option to terminate the charters before the end of their terms. One of the Company’s offshore supply vessels is chartered on a long-term bareboat charter to DESS Cyprus Limited, a wholly-owned subsidiary of Deep Sea Supply Plc., a related party. Another of the Company's offshore supply vessels is chartered on a long term bareboat charter to Deep Sea Supply Shipowning II B.V., a wholly owned subsidiary of Deep Sea Supply BTG B.V., which is a joint venture owned 50% by Deep Sea Supply Plc. and 50% by BTG Pactual Oil & Gas Empreendimentos e Particapacoes S.A., or BTG Pactual. We refer to Deep Sea Supply Plc. and Deep Sea Supply BTG B.V. together as “Deep Sea”. The terms of the charters provide the charterer with various call options to acquire the vessels at certain dates throughout the charters, which expire in 2020. The above assets (22 vessels) of the Company were accounted for as direct financing leases, all of which are leased to related parties. The following lists the components of the investments in direct financing leases as at June 30, 2014.
(in thousands of $) | June 30, 2014 |  |  | December 31, 2013 |
Total minimum lease payments to be received | 1,420,226 |  |  | 1,490,111 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (408,932 | ) |  | (432,463 | )
Net minimum lease payments receivable | 1,011,294 |  |  | 1,057,648 |
Estimated residual values of leased property (un-guaranteed) | 278,152 |  |  | 278,152 |
Less: unearned income | (295,057 | ) |  | (318,910 | )
| 994,389 |  |  | 1,016,890 |
Less: deferred deemed equity contribution | (104,057 | ) |  | (106,377 | )
Less: unamortized gains | (6,923 | ) |  | (7,105 | )
Total investment in direct financing and sales-type leases | 883,409 |  |  | 903,408 |
Current portion | 44,978 |  |  | 45,148 |
Long-term portion | 838,431 |  |  | 858,260 |
| 883,409 |  |  | 903,408 |

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- Definition The entire disclosure for lessor's leasing arrangements, which includes direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496975&loc=d3e45377-112738 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6452767&loc=d3e37045-112695 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 47 -URI http://asc.fasb.org/extlink&oid=6584217&loc=d3e38847-112698 + Details
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