Equipment Acquisitions and Dispositions
|6 Months Ended|
Jun. 30, 2020
|Property, Plant and Equipment [Abstract]|
|Equipment Acquisitions and Dispositions||
3. EQUIPMENT ACQUISITIONS AND DISPOSITIONS
During the six months ended June 30, 2020, capital expenditures were $12.4 million and primarily related to the construction of harbor tugs and the purchase of machinery and equipment.
During the six months ended June 30, 2020, the Company sold 39 inland river dry-cargo barges and other equipment for net proceeds of $9.2 million and gains of $7.9 million. In addition, the Company recognized previously deferred gains of $0.7 million.
During the six months ended June 30, 2020, the Company also sold and leased back three U.S.-flag harbor tugs for $33.7 million with leaseback terms ranging from 72-84 months. The Company determined that these transactions resulted in "failed" sale-leasebacks in accordance with Topic 842 and Topic 606 and as a result, did not qualify for sale or lease accounting (see Note 7).
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef