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VARIABLE INTEREST ENTITIES | 12 Months Ended
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Dec. 31, 2018
Variable Interest Entity, Measure of Activity [Abstract] |
Variable Interest Entities | VARIABLE INTEREST ENTITIES The Company has evaluated all of its wholly and partially-owned entities, as well as entities with common ownership or other relationships, pursuant to ASC 810. A summary of the Company’s consolidation policy is provided in Note 3. The Company has concluded that Bulk Pangaea, Bulk Patriot, Bulk Juliana, Bulk Atlantic, Bulk Trident, Bulk Phoenix, Bulk Barents, Bulk Bothnia, Bulk Freedom, Bulk Pride, Bulk PODS, Bulk Spirit, NBH, Long Wharf, NBHC, BVH, FVL and VBC should be consolidated as VIEs at December 31, 2018 and 2017. Bulk Pangaea, Bulk Patriot, Bulk Juliana, Bulk Atlantic, Bulk Trident, Bulk Phoenix, Bulk Barents, Bulk Bothnia, BVH, Bulk Freedom, Bulk Pride, Bulk PODS and Bulk Spirit are wholly-owned subsidiaries that were established for the purpose of acquiring bulk carriers. The Company has concluded that these entities are VIEs due to the existence of corporate guarantees and to the cross-collateralization on outstanding debt, which is indicative of an inability to finance the entities’ activities without additional subordinated financial support. Accordingly, the Company has consolidated these subsidiaries for the years ended December 31, 2018 and 2017. The consolidation of all of these entities increased total assets by approximately $59.4 million and increased total liabilities by approximately $65.4 million at December 31, 2018. Total shareholders’ equity decreased by approximately $6.0 million. The consolidation of all of these entities increased total assets by approximately $50.4 million and increased total liabilities by approximately $47.7 million at December 31, 2017. Total shareholders’ equity increased by approximately $2.7 million. NBH is a wholly-owned subsidiary of the Company. The Company determined that NBH is a VIE due to the fact that NBH’s total equity investment at risk is not sufficient to permit it to finance its activities without additional subordinated financial support. Furthermore, the Company determined that it is NBH’s primary beneficiary, as it has the power to direct the activities of the entity. Accordingly, the Company has consolidated NBH for the years ended December 31, 2018 and 2017. The consolidation of NBH increased total assets by approximately $27.2 million and $22.6 million and increased total liabilities by approximately $22.1 million and $21.3 million at December 31, 2018 and 2017, respectively. Total shareholders’ equity increased by approximately $5.1 million and $1.3 million at December 31, 2018 and 2017, respectively. Long Wharf was established in 2009 for the purpose of buying a new office building. Ownership of Long Wharf was transferred to the Company on October 1, 2014. The Company determined that Long Wharf is a VIE as Long Wharf’s total equity investment at risk is not sufficient to permit it to finance its activities without additional subordinated financial support. The Company determined that the entities/individuals that had a variable interest in Long Wharf prior to the transfer were also related parties, and that none of those entities individually met the criteria to be the primary beneficiary, as none had the obligation to absorb the entity’s losses; therefore, since the Company represented the party within the related party group that was most closely associated with the VIE, the Company concluded it was the primary beneficiary. Accordingly, the Company has consolidated Long Wharf for the years ended December 31, 2018 and 2017. The consolidation of Long Wharf increased total assets by approximately $2.1 million and $2.2 million and increased total liabilities by approximately $2.3 million and $2.4 million at December 31, 2018 and 2017, respectively. Total shareholders’ equity decreased by approximately $0.2 million and $0.2 million at December 31, 2018 and 2017, respectively. NBHC was established in March 2012, for the purpose of acquiring the m/v Nordic Odyssey, the m/v Nordic Orion and to invest in additional vessels, all through wholly-owned subsidiaries. Each of the ship owning companies owned by NBHC is chartered to NBC under fixed price, time charter arrangements. The Company determined that NBHC is a VIE and that it is the primary beneficiary of NBHC, as it has the power to direct its activities as a result of these time charter arrangements. Accordingly, the Company has consolidated NBHC for the years ended December 31, 2018 and 2017. The consolidation of NBHC increased total assets by approximately $154.6 million and $154.6 million and increased total liabilities by approximately $76.8 million and $86.2 million at December 31, 2018 and 2017, respectively. Total shareholders’ equity increased by approximately $7.6 million and $4.5 million at December 31, 2018 and 2017. Amounts pertaining to the non-controlling ownership interest held by third parties in the financial position and operating results of NBHC are reported as non-controlling interest in the accompanying consolidated balance sheets. The non-controlling ownership interest attributable to NBHC amounts to approximately $70.2 million and $63.9 million at December 31, 2018 and 2017. BVH was established in August 2013, together with a third-party, for the purpose of owning Five and Six. Five and Six were established for the purpose of owning new ultramax newbuildings that were delivered in January 2017 at which time the Company acquired its joint venture partner's 50% interest in BVH. The Company determined that BVH is a VIE and is the primary beneficiary of BVH, as it has the power to direct its activities. Accordingly, the Company has consolidated BVH and its wholly-owned subsidiaries for the years ended December 31, 2018 and 2017. The consolidation of BVH increased total assets by approximately $40.7 million and $42.6 million and increased total liabilities by approximately $35.6 million and $38.0 million at December 31, 2018 and 2017, respectively. Total shareholders’ equity increased by approximately $5.1 million at December 31, 2018 and $4.6 million at December 31, 2017. FVL and VBC are VIEs due to the fact that the Company has the power to direct the activities of these entities, neither of which had any revenue in 2018 or 2017. The consolidation of these entities increased assets by approximately $1.6 million, increased liabilities by approximately $0.2 million, decreased shareholders' equity by $23,000 and increased non-controlling interest by approximately $1.5 million at December 31, 2018. The consolidation of these entities increased assets by approximately $1.4 million, and increased non-controlling interest by approximately $1.4 million at December 31, 2017.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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