Annual report pursuant to Section 13 and 15(d)

Note 17 - Commitments and Contingencies

v3.19.1
Note 17 - Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
17.
COMMITMENTS AND CONTINGENCIES
 
As of
December 
31,
2018,
the Company had capital commitments of
$78.2
million that included
four
FSVs,
three
supply vessels,
two
crew transfer vessels, and
three
platform supply vessels. The Company's capital commitments by year of expected payment are as follows (in thousands):
 
2019
  $
51,132
 
2020
   
27,046
 
    $
78,178
 
 
The Company had indefinitely deferred an additional
$20.2
million of orders with respect to tow FSVs for which the Company had previously reported unfunded capital commitments.
 
In the normal 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 could have a material adverse effect on the Company's business, financial position, results of operations, cash flows and growth prospects.
 
As of
December 31, 2018,
the Company leases
five
unimpaired offshore support vessels and certain facilities and other equipment. These leasing agreements have been classified as operating leases for financial reporting purposes and related rental fees are charged to expense over the lease terms. The leases generally contain purchase and lease renewal options or rights of
first
refusal with respect to the sale or lease of the equipment. The lease terms generally range in duration from
one
to
three
years (see Note
6
). 
 
The Company has
$2.5
million available under its Windcat Workboats credit facilities.