Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31,September 30, 2020              or  
☐          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OF 1934 
For the transition period from              to             
Commission file number 1-12289
SEACOR Holdings Inc.
(Exact Name of Registrant as Specified in Its Charter)

Delaware       13-3542736
Delaware13-3542736
(State or Other Jurisdiction of        (IRS Employer
Incorporation or Organization)       Identification No.)
Incorporation or Organization)    
(IRS Employer
Identification No.)
2200 Eller Drive, P.O. Box 13038,
Fort Lauderdale, Florida    
33316
(Address of Principal Executive Offices)      (Zip Code)
(Address of Principal Executive Offices)(Zip Code)

954-523-2200
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareCKH New York Stock Exchange
Trading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareCKHNew York Stock Exchange
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 and 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 and post such files). Yes  ☒     No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting Emerging growth
(Do not check if a smaller  company ☐  company ☐
reporting company)
☒Accelerated filer☐Non-accelerated filer☐ Smaller reporting company☐Emerging growth 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  ☒
The total number of shares of common stock, par value $.01 per share, outstanding as of April 24,October 27, 2020 was 20,333,024.20,372,174. The Registrant has no other class of common stock outstanding.

Table of Contents
SEACOR HOLDINGS INC.
Table of Contents

Part I.
1
Item 1.
1
1
2
3
4
56
67
Item 2.
2126
Item 3.
3442
Item 4.
3442
Part II.
3544
Item 1.
3544
Item 1A.
3544
Item 2.
3544
Item 3.
3544
Item 4.
3544
Item 5.
3545
Item 6.
3645

i
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data, unaudited)
March 31,
2020		December 31,
2019
ASSETS
Current Assets:
Cash and cash equivalents$76,106  $77,222  
Restricted cash and restricted cash equivalents1,224  1,222  
Marketable securities7,832  7,936  
Receivables:
Trade, net of allowance for doubtful accounts of $2,898 and $2,871 in 2020 and 2019, respectively192,350  194,022  
Other67,938  38,881  
Inventories4,050  5,255  
Prepaid expenses and other5,387  6,971  
Total current assets354,887  331,509  
Property and Equipment:
Historical cost1,441,509  1,442,382  
Accumulated depreciation(639,424) (624,024) 
Net property and equipment802,085  818,358  
Operating Lease Right-of-Use Assets136,180  144,539  
Investments, at Equity, and Advances to 50% or Less Owned Companies151,568  157,108  
Goodwill32,586  32,701  
Intangible Assets, Net22,952  20,996  
Other Assets8,615  7,761  
$1,508,873  $1,512,972  
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt$44,495  $58,854  
Current portion of long-term operating lease liabilities35,258  36,011  
Accounts payable and accrued expenses43,663  57,595  
Other current liabilities75,225  57,501  
Total current liabilities198,641  209,961  
Long-Term Debt254,272  255,612  
Long-Term Operating Lease Liabilities100,789  108,295  
Deferred Income Taxes123,054  105,661  
Deferred Gains and Other Liabilities19,103  20,929  
Total liabilities695,859  700,458  
Equity:
SEACOR Holdings Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; none issued nor outstanding—  —  
Common stock, $0.01 par value, 60,000,000 shares authorized; 41,005,575 and 40,819,892 shares issued in 2020 and 2019, respectively410  408  
Additional paid-in capital1,662,938  1,661,002  
Retained earnings518,573  517,106  
Shares held in treasury of 20,672,551 and 20,643,724 in 2020 and 2019, respectively, at cost(1,366,787) (1,365,792) 
Accumulated other comprehensive loss, net of tax(2,909) (998) 
812,225  811,726  
Noncontrolling interests in subsidiaries789  788  
Total equity813,014  812,514  
$1,508,873  $1,512,972  


September 30,
2020		December 31,
2019
ASSETS
Current Assets:
Cash and cash equivalents$98,015 $77,222 
Restricted cash and restricted cash equivalents1,119 1,222 
Marketable securities7,597 7,936 
Receivables:
Trade, net of allowance for doubtful accounts of $1,380 and $2,871 in 2020 and 2019, respectively196,076 194,022 
Other67,862 38,881 
Inventories3,871 5,255 
Prepaid expenses and other6,364 6,971 
Total current assets380,904 331,509 
Property and Equipment:
Historical cost1,442,442 1,442,382 
Accumulated depreciation(663,277)(624,024)
Net property and equipment779,165 818,358 
Operating Lease Right-of-Use Assets124,855 144,539 
Investments, at Equity, and Advances to 50% or Less Owned Companies152,744 157,108 
Goodwill32,616 32,701 
Intangible Assets, Net21,041 20,996 
Other Assets8,404 7,761 
$1,499,729 $1,512,972 
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt$10,845 $58,854 
Current portion of long-term operating lease liabilities37,124 36,011 
Current portion of other long-term financial liabilities1,479 0 
Accounts payable and accrued expenses58,640 57,595 
Other current liabilities77,429 57,501 
Total current liabilities185,517 209,961 
Long-Term Debt238,005 255,612 
Long-Term Operating Lease Liabilities87,579 108,295 
Other Long-Term Financial Liabilities31,701 0 
Deferred Income Taxes109,664 105,661 
Deferred Gains and Other Liabilities18,910 20,929 
Total liabilities671,376 700,458 
Equity:
SEACOR Holdings Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; none issued nor outstanding0 0 
Common stock, $0.01 par value, 60,000,000 shares authorized; 41,012,817 and 40,819,892 shares issued in 2020 and 2019, respectively410 408 
Additional paid-in capital1,666,218 1,661,002 
Retained earnings529,647 517,106 
Shares held in treasury of 20,640,307 and 20,643,724 in 2020 and 2019, respectively, at cost(1,365,921)(1,365,792)
Accumulated other comprehensive loss, net of tax(2,779)(998)
827,575 811,726 
Noncontrolling interests in subsidiaries778 788 
Total equity828,353 812,514 
$1,499,729 $1,512,972 

The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
1
Table of Contents
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data, unaudited)
Three Months Ended March 31,
20202019
Operating Revenues$192,296  $209,524  
Costs and Expenses:
Operating146,028  147,111  
Administrative and general29,021  26,746  
Depreciation and amortization17,729  17,136  
192,778  190,993  
Gains on Asset Dispositions, Net384  437  
Operating Income (Loss)(98) 18,968  
Other Income (Expense):
Interest income1,601  1,900  
Interest expense(4,470) (5,113) 
Debt extinguishment losses(319) (793) 
Marketable security gains (losses), net(104) 3,068  
Foreign currency gains (losses), net(4,582) 405  
Other, net92  (644) 
(7,782) (1,177) 
Income (Loss) Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies(7,880) 17,791  
Income Tax Expense (Benefit)(14,142) 2,205  
Income Before Equity in Losses of 50% or Less Owned Companies6,262  15,586  
Equity in Losses of 50% or Less Owned Companies, Net of Tax(4,793) (2,518) 
Net Income1,469  13,068  
Net Income Attributable to Noncontrolling Interests in Subsidiaries2  5,335  
Net Income Attributable to SEACOR Holdings Inc.$1,467  $7,733  
Basic Earnings Per Common Share of SEACOR Holdings Inc.$0.07  $0.42  
Diluted Earnings Per Common Share of SEACOR Holdings Inc.$0.07  $0.41  
Weighted Average Common Shares Outstanding:
Basic19,950,444  18,232,562  
Diluted19,994,025  19,571,339  



Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Operating Revenues$175,414 $200,658 $540,295 $607,205 
Costs and Expenses:
Operating128,546 147,386 400,752 437,368 
Administrative and general24,560 24,923 76,785 78,383 
Depreciation and amortization17,306 16,975 52,620 51,120 
170,412 189,284 530,157 566,871 
Gains on Asset Dispositions, Net618 1,145 9,200 2,259 
Operating Income5,620 12,519 19,338 42,593 
Other Income (Expense):
Interest income1,425 2,198 4,544 5,983 
Interest expense(3,938)(4,816)(12,587)(14,832)
Debt extinguishment gains (losses), net(254)(777)1,348 (2,073)
Marketable security gains (losses), net951 144 (567)16,496 
Foreign currency losses, net(203)(1,877)(3,042)(1,663)
Other, net2,242 505 2,992 (114)
223 (4,623)(7,312)3,797 
Income Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies5,843 7,896 12,026 46,390 
Income Tax Expense (Benefit)1,552 1,417 (9,384)7,012 
Income Before Equity in Losses of 50% or Less Owned Companies4,291 6,479 21,410 39,378 
Equity in Losses of 50% or Less Owned Companies, Net of Tax(1,102)(618)(8,877)(3,448)
Net Income3,189 5,861 12,533 35,930 
Net Income (Loss) Attributable to Noncontrolling Interests in Subsidiaries(1)(544)(8)7,239 
Net Income Attributable to SEACOR Holdings Inc.$3,190 $6,405 $12,541 $28,691 
Basic Earnings Per Common Share of SEACOR Holdings Inc.$0.16 $0.33 $0.63 $1.54 
Diluted Earnings Per Common Share of SEACOR Holdings Inc.$0.16 $0.32 $0.63 $1.48 
Weighted Average Common Shares Outstanding:
Basic19,995,413 19,322,423 19,975,635 18,618,613 
Diluted20,017,551 20,738,919 19,993,982 19,984,302 










The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
2
Table of Contents
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, unaudited)
Three Months Ended March 31,
20202019
Net Income$1,469  $13,068  
Other Comprehensive Income (Loss):
Foreign currency translation gains (losses), net(996) 79  
Derivative losses on cash flow hedges(918) —  
(1,914) 79  
Income tax benefit (expense)3  (68) 
(1,911) 11  
Comprehensive Income(442) 13,079  
Comprehensive Income Attributable to Noncontrolling Interests in Subsidiaries2  5,335  
Comprehensive Income Attributable to SEACOR Holdings Inc.$(444) $7,744  

Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Net Income$3,189 $5,861 $12,533 $35,930 
Other Comprehensive Income (Loss):
Foreign currency translation gains (losses), net198 (405)(753)(418)
Derivative gains (losses) on cash flow hedges24 0 (1,031)0 
222 (405)(1,784)(418)
Income tax benefit (expense)(3)— 3 (68)
219 (405)(1,781)(486)
Comprehensive Income3,408 5,456 10,752 35,444 
Comprehensive Income (Loss) Attributable to Noncontrolling Interests in Subsidiaries(1)(544)(8)7,239 
Comprehensive Income Attributable to SEACOR Holdings Inc.$3,409 $6,000 $10,760 $28,205 






































The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
3
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SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands, unaudited)
SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity		SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity
Common
Stock		Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Loss		Non-
Controlling
Interests In
Subsidiaries		Total
Equity
For the nine months ended September 30, 2020Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Loss		Non-
Controlling
Interests In
Subsidiaries		Total
Equity
December 31, 2019December 31, 2019$408  $1,661,002  $517,106  $(1,365,792) $(998) $788  $812,514  December 31, 2019$408 $1,661,002 $517,106 $(1,365,792)$(998)
Issuance of common stock:Issuance of common stock:Issuance of common stock:
Employee Stock Purchase PlanEmployee Stock Purchase Plan—  —  —  949  —  —  949  Employee Stock Purchase Plan— — — 1,815 — — 1,815 
Exercise of stock optionsExercise of stock options—  421  —  —  —  —  421  Exercise of stock options— 563 — — — — 563 
Director stock awardsDirector stock awards—  21  —  —  —  —  21  Director stock awards— 55 — — — — 55 
Restricted stockRestricted stock2  (2) —  —  —  —  —  Restricted stock2 (2)— — — — 0 
Purchase of treasury sharesPurchase of treasury shares—  —  —  (1,944) —  —  (1,944) Purchase of treasury shares— — — (1,944)— — (1,944)
Amortization of share awardsAmortization of share awards—  1,496  —  —  —  —  1,496  Amortization of share awards— 4,600 — — — — 4,600 
Distributions to noncontrolling interestsDistributions to noncontrolling interests—  —  —  —  —  (1) (1) Distributions to noncontrolling interests— — — — — (2)(2)
Net income—  —  1,467  —  —  2  1,469  
Net income (loss)Net income (loss)— — 12,541 — — (8)12,533 
Other comprehensive lossOther comprehensive loss—  —  —  —  (1,911) —  (1,911) Other comprehensive loss— — — — (1,781)— (1,781)
March 31, 2020$410  $1,662,938  $518,573  $(1,366,787) $(2,909) $789  $813,014  
September 30, 2020September 30, 2020$410 $1,666,218 $529,647 $(1,365,921)$(2,779)$778 $828,353 

SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity
For the three months ended September 30, 2020Common
Stock		Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
June 30, 2020$410 $1,664,617 $526,457 $(1,366,787)$(2,998)$780 $822,479 
Issuance of common stock:
Employee Stock Purchase Plan— — — 866 — — 866 
Director stock awards— 17 — — — — 17 
Amortization of share awards— 1,584 — — — — 1,584 
Distributions to noncontrolling interests— — — — — (1)(1)
Net income (loss)— — 3,190 — — (1)3,189 
Other comprehensive income— — — — 219 — 219 
September 30, 2020$410 $1,666,218 $529,647 $(1,365,921)$(2,779)$778 $828,353 

SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity
Common
Stock		Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
December 31, 2018$390  $1,596,642  $474,809  $(1,366,773) $(914) $149,688  $853,842  
Impact of adoption of accounting principle, net of tax—  —  15,523  —  —  9,836  25,359  
December 31, 2018, As Adjusted390  1,596,642  490,332  (1,366,773) (914) 159,524  879,201  
Issuance of common stock:
Employee Stock Purchase Plan—  —  —  857  —  —  857  
Exercise of stock options—  873  —  —  —  —  873  
Director stock awards—  33  —  —  —  —  33  
Restricted stock2  (2) —  —  —  —  —  
Purchase of treasury shares—  —  —  (351) —  —  (351) 
Amortization of share awards—  1,258  —  —  —  —  1,258  
Distributions to noncontrolling interests—  —  —  —  —  (156) (156) 
Net income—  —  7,733  —  —  5,335  13,068  
Other comprehensive income—  —  —  —  11  —  11  
March 31, 2019$392  $1,598,804  $498,065  $(1,366,267) $(903) $164,703  $894,794  
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SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity
For the nine months ended September 30, 2019Common
Stock		Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Loss
December 31, 2018$390 $1,596,642 $474,809 $(1,366,773)$(914)$149,688 $853,842 
Impact of adoption of accounting principle, net of tax— — 15,523 — — 9,836 25,359 
December 31, 2018, As Adjusted390 1,596,642 490,332 (1,366,773)(914)159,524 879,201 
Issuance of common stock:
Employee Stock Purchase Plan— — — 1,695 — — 1,695 
Exercise of stock options1 5,219 — — — — 5,220 
Director stock awards— 76 — — — — 76 
Restricted stock2 (2)— — — — 0 
Purchase of conversion option in convertible debt, net of tax— (115)— — — — (115)
Purchase of treasury shares— — — (516)— — (516)
Amortization of share awards— 3,794 — — — — 3,794 
Purchase of subsidiary shares from noncontrolling interests15 53,814 — — — (160,818)(106,989)
Distributions to noncontrolling interests— — — — — (5,162)(5,162)
Net income— — 28,691 — — 7,239 35,930 
Other comprehensive loss— — — — (486)— (486)
September 30, 2019$408 $1,659,428 $519,023 $(1,365,594)$(1,400)$783 $812,648 

SEACOR Holdings Inc. Stockholders’ EquityNon-
Controlling
Interests In
Subsidiaries		Total
Equity
For the three months ended September 30, 2019Common
Stock		Additional
Paid-In
Capital		Retained
Earnings		Treasury StockAccumulated
Other
Comprehensive
Loss
June 30, 2019$392 $1,600,838 $512,618 $(1,366,432)$(995)$162,236 $908,657 
Issuance of common stock:
Employee Stock Purchase Plan— — — 838 — — 838 
Exercise of stock options1 3,485 — — — — 3,486 
Director stock awards— 21 — — — — 21 
Purchase of conversion option in convertible debt, net of tax— (12)— — — — (12)
Amortization of share awards— 1,282 — — — — 1,282 
Purchase of subsidiary shares from noncontrolling interests15 53,814 — — — (160,818)(106,989)
Distributions to noncontrolling interests— — — — — (91)(91)
Net income (loss)— — 6,405 — — (544)5,861 
Other comprehensive loss— — — — (405)— (405)
September 30, 2019$408 $1,659,428 $519,023 $(1,365,594)$(1,400)$783 $812,648 











The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
45
Table of Contents
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended March 31,
20202019
Net Cash Provided by Operating Activities$25,002  $34,660  
Cash Flows from Investing Activities:
Purchases of property and equipment(6,377) (5,649) 
Proceeds from disposition of property and equipment114  120  
Payments received on third-party leases and notes receivable, net15  165  
Business acquisitions, net of cash acquired(970) —  
Net cash used in investing activities(7,218) (5,364) 
Cash Flows from Financing Activities:
Payments on long-term debt(18,144) (31,396) 
Payments for long-term debt issue costs—  (2,197) 
Common stock acquired for treasury(1,944) (351) 
Proceeds from share award plans1,370  1,730  
Distributions to noncontrolling interests(1) (156) 
Net cash used in financing activities(18,719) (32,370) 
Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(179) 6  
Net Decrease in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(1,114) (3,068) 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period78,444  147,212  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period77,330  144,144  
Restricted Cash and Restricted Cash Equivalents, End of Period1,224  2,992  
Cash and Cash Equivalents, End of Period$76,106  $141,152  








Nine Months Ended September 30,
20202019
Net Cash Provided by Operating Activities$68,690 $95,255 
Cash Flows from Investing Activities:
Purchases of property and equipment(16,326)(17,351)
Proceeds from disposition of property and equipment9,615 1,874 
Investments in and advances to 50% or less owned companies(6,088)(3,215)
Return of investments and advances from 50% or less owned companies936 3,677 
Payments received on third-party leases and notes receivable, net389 1,125 
Business acquisitions, net of cash acquired(970)0 
Net cash used in investing activities(12,444)(13,890)
Cash Flows from Financing Activities:
Payments on long-term debt(69,048)(66,685)
Proceeds from long-term debt, net of issue costs0 22,803 
Proceeds from other long-term financial liabilities33,662 0 
Payments of other long-term financial liabilities(482)0 
Purchase of conversion option in convertible debt0 (146)
Common stock acquired for treasury(1,944)(516)
Proceeds from share award plans2,378 6,915 
Purchase of subsidiary shares from noncontrolling interests0 (107,692)
Distributions to noncontrolling interests(2)(5,162)
Net cash used in financing activities(35,436)(150,483)
Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(120)(58)
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents20,690 (69,176)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period78,444 147,212 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period99,134 78,036 
Restricted Cash and Restricted Cash Equivalents, End of Period1,119 1,221 
Cash and Cash Equivalents, End of Period$98,015 $76,815 

















The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
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SEACOR HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES
Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR” refers to SEACOR Holdings Inc. without its consolidated subsidiaries. Capitalized terms used and not specifically defined herein have the same meaning given to those terms in the Company's Annual report on Form 10-K for the year ended December 31, 2019.
The condensed consolidated financial information for the three and nine months ended March 31,September 30, 2020 and 2019 has been prepared by the Company and has not been audited by its independent registered certified public accounting firm. The condensed consolidated financial statements include the accounts of SEACOR Holdings Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of March 31,September 30, 2020, its results of operations for the three and nine months ended March 31,September 30, 2020 and 2019, its comprehensive income for the three and nine months ended March 31,September 30, 2020 and 2019, its changes in equity for the three and nine months ended March 31,September 30, 2020 and 2019, and its cash flows for the threenine months ended March 31,September 30, 2020 and 2019. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Recent Developments. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus ("COVID-19") a pandemic, which continues to spread throughout the United States and the world. The spread of COVID-19 has caused significant volatility in U.S. and international markets and there is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies.
The Company's overall business, results of operations and financial condition have been adversely affected by the COVID-19 outbreak. The COVID-19 pandemic is a dynamic and continuously evolving phenomenon and the ultimate severity of the outbreak, and its effect on the Company's business in the future, is uncertain. If the pandemic worsens, additional restrictions are implemented or current restrictions are imposed for a longer period of time to contain the outbreak or re-imposed after a period of relaxation, the Company may experience a material adverse effect on its businesses, results of operations and financial condition, which could result in impairments in future periods.
Adoption of New Accounting Standards. On January 1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Topic 326, Financial Instruments - Credit Losses (“Topic 326”), which replaces the current incurred loss impairment methodology for financial assets and other assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. As part of ourthe Company's assessment of the adequacy of ourits allowances for credit losses, weit considered a number of factors including, but not limited to, customer credit ratings and payment history, bankruptcy filings, published or estimated credit default rates, age of receivables, expected loss rates and collateral exposures. The adoption of Topic 326 using a modified retrospective approach did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.
On January 1, 2019, the Company adopted FASB Topic 842, Leases (“Topic 842”) using a modified prospective approach and implemented internal controls and systems to enable the preparation of financial information upon adoption. The Company elected the available practical expedients permitted under the guidance including the option to not separate lease and nonlease components in calculating the right-of-use assets and corresponding lease liabilities and to not apply the recognition requirements of Topic 842 to short-term leases (leases that have a duration of twelve months or less at lease inception). Generally, it was not possible for the Company to determine the interest rate implicit in each of its operating leases and therefore used its incremental borrowing rate in calculating operating lease right-of-use assets and lease liabilities. The Company assigned its leases to portfolios based on the remaining term at the time of adoption and applied a single rate to each portfolio of leases as the result was not materially different than using a specific discount rate for each individual lease. The Company included renewal options that were reasonably certain of being exercised in determining the lease term. Upon adoption, the Company recognized a cumulative-effect adjustment of $25.4 million, net of tax, to the opening balance of retained earnings primarily for previously deferred gains related to sale-leaseback transactions.
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Revenue Recognition. The Company earns revenues from contracts with customers and from lease contracts.
Revenue from Contracts with Customers. Revenue is recognized when (or as) the Company transfers promised goods or services to its customers in amounts that reflect the consideration to which the Company expects to be entitled to in exchange for those goods or services, which occurs when (or as) the Company satisfies its contractual obligations and transfers control of the promised goods or services to its customers. Costs to obtain or fulfill a contract are expensed as incurred.

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Ocean Services' revenues from contracts with customers primarily arise from voyage charters, contracts of affreightment, tariff based port and infrastructure services, unit freight logistics services, and technical ship management agreements with vessel owners (see Note 15)16). Ocean Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Voyage charters are contracts to carry cargoes on a single voyage basis for a predetermined price, regardless of time to complete. Contracts of affreightment are contracts for cargoes that are committed on a multi-voyage basis for various periods of time, with minimum and maximum cargo tonnages specified over the period at a fixed or escalating rate per ton. Tariff based port and infrastructure services typically include operating harbor tugs alongside oceangoing vessels to escort them to their berth, assisting with the docking and undocking of these oceangoing vessels and escorting them back out to sea. They are contracted using prevailing port tariff terms on a per-use basis. In the unit freight logistics trade, transportation services typically include transporting shipping containers, rail cars, project cargoes, automobiles and U.S. military vehicles and are generally contracted on a per unit basis for the specified cargo and destination, typically in accordance with a publicly available tariff rate or based on a negotiated rate when moving larger volumes over an extended period. Managed services include technical ship and crew management agreements whereby Ocean Services provides technical ship and crew management services to third-party customers for a predetermined price over a specified period of time, typically a year or more.
Inland Services' revenues from contracts with customers primarily arise from contracts of affreightment, terminal operations, fleeting operations and repair and maintenance services (see Note 15)16). Inland Services transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Contracts of affreightment are contracts whereby customers are charged an established rate per ton to transport cargo from point-to-point. Terminal operations includes tank farms and dry bulk and container handling facilities that are marketed under contractual rates and terms driven by throughput volume. Fleeting operations includes fleeting services whereby barges are held in fleeting areas for an agreed-upon day rate and shifting services whereby harbor boats are used to pick up and drop off barges to assist in assembling tows and to move barges to and from the dock for loading and unloading at predetermined per-shift fees. Other operations primarily include a machine shop specializing in towboat and barge cleaning, repair and maintenance services that are charged on an hourly or a fixed fee basis depending on the scope and nature of the work.
Witt O’Brien’s revenues from contracts with customers primarily arise from time and material contracts and retainer contracts (see Note 15)16). Witt O’Brien’s transfers control of the service to the customer and satisfies its performance obligation over the term of the contract, and therefore recognizes revenue over the term of the contract while related costs are expensed as incurred. Time and material contracts primarily relate to emergency response, debris management or consulting services that Witt O’Brien’s performs for a predetermined fee. Retainer contracts, which are nearly all with vessel services operators and oil companies, are contracted based on agreed-upon rates.
The Company’s Other business segment includes Cleancor, which primarily earns revenues from the sale of liquefied natural gas (see Note 15)16). Under these arrangements, control of the goods areis transferred to the customer and performance obligations are satisfied at a point in time, and therefore revenue is recognized upon delivery while any related costs are expensed as incurred.
Contract liabilities from contracts with customers arise when the Company has received consideration prior to performance and are included in other current liabilities in the accompanying consolidated balance sheets. The Company’s contract liability activity for the threenine months ended March 31September 30 was as follows (in thousands):
2020201920202019
Balance at beginning of periodBalance at beginning of period$794  $968  Balance at beginning of period$794 $968 
Previously deferred revenues recognized upon completion of performance obligations during the periodPreviously deferred revenues recognized upon completion of performance obligations during the period(394) (408) Previously deferred revenues recognized upon completion of performance obligations during the period(786)(950)
Net contract liabilities arising during the periodNet contract liabilities arising during the period7,504  7,351  Net contract liabilities arising during the period2,985 2,723 
Balance at end of periodBalance at end of period$7,904  $7,911  Balance at end of period$2,993 $2,741 

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Lease Revenues. The Company’s lease revenues are primarily from time charters, bareboat charters and non-vessel rental agreements that are recognized ratably over the lease term as services are provided, typically on a per day basis. Under a time charter, the Company provides a vessel to a customer for a set term and is responsible for all operating expenses, typically excluding fuel. Under a bareboat charter, the Company provides a vessel to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation. Under a non-vessel rental agreement, the Company provides non-vessel property or equipment to a customer for a set term and the customer assumes responsibility for all operating expenses and risks of operation.
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Property and Equipment. Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the time period beyond which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded their useful life as set forth in the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date.
As of March 31,September 30, 2020, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
Petroleum and chemical carriers - U.S.-flag25
Bulk carriers - U.S.-flag25
Harbor and offshore tugs25
Ocean liquid tank barges25
Short-sea container/RORO(1)vessels
20
Inland river dry-cargo and specialty barges20
Inland river liquid tank barges25
Inland river towboats and harbor boats25
Terminal and fleeting facilities20
______________________
(1)Roll On/Roll Off.
Equipment maintenance and repair costs including the costs of routine overhauls, dry-dockings and inspections performed on vessels and equipment are charged to operating expense as incurred. Expenditures that extend the useful life or improve the marketing and commercial characteristics of equipment as well as major renewals and improvements to other properties are capitalized.
As of March 31,September 30, 2020, the Company had construction in progress of $15.0$16.4 million that primarily consisted of the construction of 4 U.S.-flag harbor tugs, andan inland river towboats,towboat and other machinery and equipment and is included in historical cost in the accompanying condensed consolidated balance sheets. Certain interest costs incurred during the construction of equipment are capitalized as part of the assets’ carrying values and are amortized over such assets’ estimated useful lives. During the threenine months ended March 31,September 30, 2020, capitalized interest was not material.
Impairment. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus ("COVID-19") as a pandemic, which continues to spread throughout the United States and the world. The spread of COVID-19 has caused significant volatility in U.S. and international markets and there is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies.
The Company's overall business, results of operations and financial condition have not been materially affected by the COVID-19 outbreak. The COVID-19 pandemic is, however, a dynamic and continuously evolving phenomenon and the ultimate severity of the outbreak is uncertain at this time. If the pandemic worsens, additional restrictions are implemented or current restrictions are imposed for a longer period of time to contain the outbreak, the Company may experience a material adverse effect on its businesses, results of operations and financial condition, which could result in impairments in future periods.totaled $0.2 million.
Impairment of Long-Lived Assets. The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. These indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If the carrying values of the assets are not recoverable, as determined by the estimated undiscounted cash flows, the estimated fair value of the assets or asset groups are compared to their current carrying value and impairment charges are recorded if the carrying value exceeds fair value. The Company performs its testing on an asset or asset group basis. The Company’s estimates of undiscounted cash flows are highly subjective and actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the threenine months ended March 31,September 30, 2020 and 2019, the Company did not recognize any impairment charges related to long-lived assets held for use.

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Impairment of 50% or Less Owned Companies. Investments in 50% or less owned companies are reviewed periodically to assess whether there is an other-than-temporary decline in the carrying value of the investment. In its evaluation, the Company considers, among other items, recent and expected financial performance and returns, impairments recorded by the investee and the capital structure of the investee. When the Company determines the estimated fair value of an investment is below carrying value and the decline is other-than-temporary, the investment is written down to its estimated fair value. Actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance, the severity and expected duration of declines in value and the available liquidity in the capital markets to support the continuing operations of the investee, among other factors. Although the Company believes its assumptions and estimates are reasonable, the investee’s actual performance compared with the estimates could produce different results and lead to additional impairment charges in future periods. During the threenine months ended March 31,September 30, 2020 and 2019, the Company did not recognize any impairment charges related to its 50% or less owned companies.
Income Taxes. During the threenine months ended March 31,September 30, 2020, the Company’s effective income tax rate of 179.5%(78.0)% was higherlower than the statutory rate primarily due to a pre-tax loss,benefit from a statutory change to the U.S. federal income tax code and lossesincome subject to tonnage tax, partially offset by subpart F income, non-deductible expenses, state taxes and foreign sourcedtaxes not creditable against U.S. income not subject to U.S. taxtaxes (see Note 7)8). During the threenine months ended March 31,September 30, 2019, the Company's effective income tax rate of 12.4%15.1% was lower than the statutory rate primarily due to foreign sourced income not subject to U.S. tax, tax not provided on income attributable to noncontrolling interests, foreign sourced income not subject to U.S. tax and income subject to tonnage tax, partially offset by foreign taxes not creditable against U.S. income tax.
Deferred Gains. The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. Deferred gain activity related to these transactions for the threenine months ended March 31September 30 was as follows (in thousands):
2020201920202019
Balance at beginning of periodBalance at beginning of period$12,008  $43,664  Balance at beginning of period$12,008 $43,664 
Impact of adoption of accounting principle(1)
Impact of adoption of accounting principle(1)
—  (29,207) 
Impact of adoption of accounting principle(1)
0 (29,207)
Amortization of deferred gains included in gains on asset dispositions, netAmortization of deferred gains included in gains on asset dispositions, net(331) (331) Amortization of deferred gains included in gains on asset dispositions, net(992)(2,119)
Balance at end of periodBalance at end of period$11,677  $14,126  Balance at end of period$11,016 $12,338 
______________________
(1)On January 1, 2019, the Company adopted Topic 842 and reduced deferred gains associated with sale-leaseback transactions through a beginning period retained earnings adjustment.
Earnings Per Share. Basic earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings per common share of SEACOR is computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested, common shares have been issued pursuant to the exercise of outstanding stock options and common shares have been issued pursuant to the conversion of all outstanding convertible notes.
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Computations of basic and diluted earnings per common share of SEACOR were as follows (in thousands, except share data):
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
Net Income Attributable to SEACORAverage O/S SharesPer ShareNet Income attributable to SEACORAverage O/S SharesPer ShareNet Income Attributable to SEACORAverage O/S SharesPer Share
202020202020
Basic Weighted Average Common Shares OutstandingBasic Weighted Average Common Shares Outstanding$1,467  19,950,444  $0.07  Basic Weighted Average Common Shares Outstanding$3,190 19,995,413 $0.16 $12,541 19,975,635 $0.63 
Effect of Dilutive Securities:Effect of Dilutive Securities:Effect of Dilutive Securities:
Options and Restricted Stock(1)
Options and Restricted Stock(1)
—  43,581  
Options and Restricted Stock(1)
0 22,138 0 18,347 
Convertible Notes(2)
Convertible Notes(2)
—  —  
Convertible Notes(2)
0 0 0 0 
Diluted Weighted Average Common Shares OutstandingDiluted Weighted Average Common Shares Outstanding$1,467  19,994,025  $0.07  Diluted Weighted Average Common Shares Outstanding$3,190 20,017,551 $0.16 $12,541 19,993,982 $0.63 
201920192019
Basic Weighted Average Common Shares OutstandingBasic Weighted Average Common Shares Outstanding$7,733  18,232,562  $0.42  Basic Weighted Average Common Shares Outstanding$6,405 19,322,423 $0.33 $28,691 18,618,613 $1.54 
Effect of Dilutive Securities:Effect of Dilutive Securities:Effect of Dilutive Securities:
Options and Restricted Stock(3)
Options and Restricted Stock(3)
—  111,676  
Options and Restricted Stock(3)
0 189,395 0 138,588 
Convertible Notes(4)
Convertible Notes(4)
318  1,227,101  
Convertible Notes(4)
318 1,227,101 955 1,227,101 
Diluted Weighted Average Common Shares OutstandingDiluted Weighted Average Common Shares Outstanding$8,051  19,571,339  $0.41  Diluted Weighted Average Common Shares Outstanding$6,723 20,738,919 $0.32 $29,646 19,984,302 $1.48 
______________________
(1)For the three and nine months ended March 31,September 30, 2020, diluted earnings per common share of SEACOR excluded 1,576,7971,801,698 and 1,777,615, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive.
(2)For the three and nine months ended March 31,September 30, 2020, diluted earnings per common share of SEACOR excluded 573,604982,080 and 1,107,979, respectively, of common shares issuable pursuant to the Company’s 2.5% Convertible Senior Notes, 353,887 and 453,499, respectively, of common shares issuable pursuant to the Company’s 3.0% Convertible Senior Notes, 1,227,101 of common shares issuable pursuant to the Company’s 2.5% Convertible Senior Notes and 1,553,780 and 1,553,780, respectively, of common shares issuable pursuant to the Company’s 3.25% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive.
(3)For the three and nine months ended March 31,September 30, 2019, diluted earnings per common share of SEACOR excluded 1,012,711557,321 and 723,370, respectively, of certain share awards as the effect of their inclusion in the computation would be anti-dilutive.
(4)For the three and nine months ended March 31,September 30, 2019, diluted earnings per common share of SEACOR excluded 1,302,221827,566 and 1,027,663, respectively, of common shares issuable pursuant to the Company’s 3.0% Convertible Senior Notes and 1,553,780 and 1,553,780, respectively, of common shares issuable pursuant to the Company’s 3.25% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive.
New Accounting Pronouncements. On January 26, 2017, the FASB issued an amendment to the accounting standards that simplified wording and removed step two of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test,assessment, to perform step two of the goodwill test. The new standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2020, with early adoption permitted for interim or annual goodwill impairment tests on testing dates after January 1, 2017. The Company hasdoes not yet determined what impact, if any,expect the adoption of the new standard will have a material impact on its consolidated financial position, results of operations or cash flows.
On December 18, 2019, the FASB issued an amendment to the accounting standards that enhances and simplifies various aspects of the income tax accounting guidance including the elimination of certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company hasdoes not yet determined what impact, if any,expect the adoption of the new standard will have a material impact on its consolidated financial position, results of operations or cash flowsflows.
.
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2. BUSINESS ACQUISITIONS
Navigate. On February 21, 2020, the Company acquired Helix Media Pte. Ltd., Navigate Response (Asia) Pte. Ltd., Navigate PR Ltd., and Navigate Response Limited (collectively "Navigate"), a global crisis communications network specializing in the international shipping, port and offshore industries, for $3.6 million. The purchase price consisted of $1.0 million in cash, net of cash acquired of $0.8 million, paid at the closing of the acquisition and $1.8 million of contingent consideration that is payable upon Navigate meeting certain specified cash collection and client retention targets for the 24 months following the acquisition date. The Company performed a preliminary fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair value resulting in no goodwill being recorded.
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Table During the nine months ended September 30, 2020, the Company paid $0.1 million of Contentsthe contingent consideration.
Purchase Price Allocation. The allocation of the purchase price for the Company’s acquisition for the threenine months ended March 31September 30 was as follows (in thousands):
2020
Trade and other receivables$295 
Other current assets103 
Property and Equipment5 
Intangible Assets3,0203,078 
Accounts payable and other accrued liabilities(31)
Other current liabilities(1)
(2,055)(2,113)
Other Liabilities(1)
(367)
Purchase price(2)
$970 
______________________
(1)Includes contingent consideration.
(2)Purchase price is net of cash acquired totaling $0.8 million.
Subsequent to September 30, 2020, the Company's Inland Services segment finalized the terms to acquire a strategic fleeting location in the center Gulf Coast for $21.9 million that is expected to close on November 1, 2020.
3. EQUIPMENT ACQUISITIONS AND DISPOSITIONS
During the threenine months ended March 31,September 30, 2020, capital expenditures were $6.4$16.3 million and primarily related to progress payments for the construction of 4 U.S.-flag harbor tugs and the purchase of machinery and equipment.
During the threenine months ended March 31,September 30, 2020, the Company sold 39 inland river dry-cargo barges and other equipment for net proceeds of $0.1$9.6 million and gains of $0.1$8.2 million. In addition, the Company recognized previously deferred gains of $0.3$1.0 million. Subsequent to September 30, 2020, the Company sold 1 U.S.-flag dry bulk carrier for net proceeds of $1.8 million and gains of $0.2 million.
During the nine months ended September 30, 2020, the Company also sold and leased back 3 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).
4. INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES
Trailer Bridge. Trailer Bridge is an operator of U.S.-flag deck and RORO barges and provides marine transportation services between Jacksonville, Florida, San Juan, Puerto Rico and Puerto Plata, Dominican Republic. During the threenine months ended March 31,September 30, 2020, the Company earned revenues of $1.0$3.1 million from the time charter of 1 U.S.-flag offshore tug to Trailer Bridge.
RF Vessel Holdings. During the nine months ended September 30, 2020, the Company and its partner each contributed capital of $4.4 million to RF Vessel Holdings.
Golfo de Mexico. During the nine months ended September 30, 2020, the Company and its partner each contributed capital of $0.5 million to Golfo de Mexico.
KSM. KSM operates 4 foreign-flag harbor tugs, 1 foreign-flag ocean liquid tank barge and 2 foreign-flag specialty vessels in Freeport, Grand Bahama. During the threenine months ended March 31,September 30, 2020, the Company earned revenues of $0.4$1.2 million from the bareboat charter of 2 foreign-flag harbor tugs to KSM.
Bunge-SCF Grain. Bunge-SCF Grain operates terminal grain elevators in Illinois. During the threenine months ended March 31,September 30, 2020, the Company earned revenues of $0.2$0.5 million from the lease of a terminal facility to Bunge-SCF Grain.
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SCF Bunge Marine. SCF Bunge Marine provides towing services on the U.S. Inland Waterways, primarily the Mississippi River, Illinois River, Tennessee River and Ohio River. During the threenine months ended March 31,September 30, 2020, the Company earned revenues of $2.0$6.0 million from the time charter of 8 inland river towboats to SCF Bunge Marine.
Other Inland Services. The Company’s other Inland Services 50% or less owned company operates a fabrication facility. During the threenine months ended March 31,September 30, 2020, the Company and its partner each received a cash dividend of $0.1$1.3 million from SCF Bunge Marine.
Other Inland Services. During the nine months ended September 30, 2020, the Company and its partner each received a cash dividend of $0.2 million from this 50% or less owned company.
O’Brien’s do Brazil. During the nine months ended September 30, 2020, the Company and its partner each received a cash dividend of $0.5 million from O'Brien's do Brazil.
VA&E. During the nine months ended September 30, 2020, the Company provided a working capital advance of $1.2 million to VA&E and received repayments of $0.9 million on the working capital advance and on subordinated loans from VA&E.
5. LONG-TERM DEBT
SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire SEACOR common stock, par value $0.01 per share (“Common Stock”), 3.0% Convertible Senior Notes (which have been fully-extinguished), 2.5% Convertible Senior Notes and 3.25% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. As of March 31,September 30, 2020, the Company’s remaining repurchase authority for the Securities was $113.1$102.2 million.
3.0% Convertible Senior Notes. During the threenine months ended March 31,September 30, 2020, the Company purchased $15.6 million in principal amount of its 3.0% Convertible Senior Notes for total consideration of $15.4 million. On September 14, 2020, the Company redeemed the remaining $34.5 million aggregate outstanding principal amount of its 3.0% Convertible Senior Notes at a price equal to 100% of the principal amount plus accrued and unpaid interest through the date of redemption. During the nine months ended September 30, 2020, these transactions resulted in debt extinguishment losses of $0.6 million included in the accompanying condensed consolidated statements of income.
2.5% Convertible Senior Notes. During the nine months ended September 30, 2020, the Company purchased $12.9 million in principal amount of its 2.5% Convertible Senior Notes for total consideration of $10.9 million resulting in debt extinguishment lossesgains of $0.3$1.9 million included in the accompanying condensed consolidated statements of income. The outstanding principal amount of these notes was $34.5$51.6 million as of March 31,September 30, 2020.
SEACOR Revolving Credit Facility. On March 19, 2019, the Company entered into a $125.0 million credit agreement with a syndicate of lenders (the “SEACOR Revolving Credit Facility”) that matures March 19, 2024 and is secured by a pledge over all of SEACOR’s assets and certain of its subsidiaries’ assets, subject to certain exceptions. As of March 31,September 30, 2020, the Company had $125.0 million of remaining borrowing capacity under this facility.
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SEA-Vista 2019 Credit Facility. During the threenine months ended March 31,September 30, 2020, SEA-Vista made scheduled repayments of $2.5$7.5 million on its Term Loan. As of March 31,September 30, 2020, SEA-Vista had $100.0 million of remaining borrowing capacity under this facility.the SEA-Vista Revolving Loan.
Other. During the threenine months ended March 31,September 30, 2020, the Company made scheduled paymentsrepayments on other long-term debt of $0.2$0.7 million.
Letters of Credit. As of March 31,September 30, 2020, the Company had outstanding letters of credit totaling $1.2$1.1 million with various expiration dates through 2027.
Guarantees. The Company has guaranteed the payments of amounts owed under certain sale-leaseback transactions equipment financing and multi-employer pension obligations on behalf of SEACOR Marine. As of March 31,September 30, 2020, these guarantees on behalf of SEACOR Marine totaled $18.5$10.4 million and decline as payments are made on the outstanding obligations. The Company earns a fee of 0.5% per annum on these guarantees. During the threenine months ended March 31,September 30, 2020, the fees earned by the Company for these guarantees were not material.
6. OPERATING LEASES
As of March 31,September 30, 2020, the Company leased-in 2 U.S.-flag petroleum and chemical carriers, 4 U.S.-flag harbor tugs, 1 U.S.-flag offshore tug, 4 U.S.-flag PCTCs, 50 inland river dry-cargo barges, 4 inland river towboats, 6 inland river harbor boats and certain facilities and other equipment. The leases generally contain purchase and renewal options or rights of first refusal with respect to the sale or lease of the equipment. As of March 31,September 30, 2020, the lease terms of the U.S.-flag petroleum and chemical carriers, which are subject to subleases, have remaining durations of 3024 and 7771 months. The lease terms of the other vessels, facilities and equipment range in duration from 1 to 192186 months.
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For the threenine months ended March 31,September 30, the components of lease expense were as follows (in thousands):
2020201920202019
Operating lease expenseOperating lease expense$10,872  $10,554  Operating lease expense$33,596 $32,009 
Short-term lease expense (lease duration of twelve months or less at lease commencement)Short-term lease expense (lease duration of twelve months or less at lease commencement)5,596  6,720  Short-term lease expense (lease duration of twelve months or less at lease commencement)14,105 17,136 
Sublease incomeSublease income(8,641) (8,225) Sublease income(26,216)(24,129)
$7,827  $9,049  $21,485 $25,016 
For the threenine months ended March 31,September 30, 2020, other information related to operating leases was as follows (in thousands except weighted average data):
Operating cash outflows from operating leases$10,77233,515 
Right-of-use assets obtained in exchange for operating lease liabilities$8729,183 
Weighted average remaining lease term, in years5.14.8
Weighted average discount rate4.9 %

7. OTHER LONG-TERM FINANCIAL LIABILITIES

During the nine months ended September 30, 2020, the Company sold and leased back 3 U.S.-flag harbor tugs for $33.7 million with leaseback terms ranging from 72-84 months (see Note 3). Each of the sale-leaseback agreements provides the Company an option to purchase the applicable U.S.-flag harbor tug for a fixed price one year prior to the expiration of the original lease term.
As a result of the fixed price purchase options, in accordance with Topic 842 and Topic 606, the transactions resulted in "failed" sale-leasebacks as the purchasers do not obtain control of the assets. As a consequence, the Company has not derecognized the assets from its property and equipment and accumulated depreciation balances and will continue to depreciate the assets in accordance with its useful life and depreciation policies. The proceeds received from the sales are included in the accompanying condensed balance sheets as other long-term financial liabilities. As the Company makes rental payments, a portion of each payment will reduce the balance of the other long-term financial liabilities and a portion will be recorded as interest expense.
During the nine months ended September 30, the amounts recognized in the accompanying condensed consolidated statements of income related to these "failed" sale-leasebacks were as follows (in thousands):
2020
Depreciation and amortization$438 
Interest expense374 
As of September 30, 2020, the future minimum lease payments under these agreements for the years ended December 31, were as follows (in thousands):
Remainder of 2020$642 
20212,568 
20222,568 
20232,568 
20242,568 
Years subsequent to 20245,371 
$16,285 
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As of September 30, 2020, depreciation expense to be recognized on these U.S.-flag harbor tugs through the end of the lease term for the years ended December 31, was as follows (in thousands):
Remainder of 2020$329 
20211,313 
20221,313 
20231,313 
20241,313 
Years subsequent to 20242,735 
$8,316 

8. INCOME TAXES
The following table reconciles the difference between the statutory federal income tax rate and the Company's effective income tax rate for the threenine months ended March 31,September 30, 2020:
Statutory rate21.0 %
Income subject to tonnage tax12.1 (9.7)%
U.S. federal income tax statutory changes161.7 (106.0)%
Non-deductible expenses(1.9)3.3 %
Noncontrolling interests0.1 %
Foreign earnings not subject to U.S. income tax(13.7)0.3 %
Foreign taxes not creditable against U.S. income tax5.82.9 %
Subpart F income(2.7)4.8 %
State taxes(0.7)3.5 %
Share award plans(2.1)1.8 %
179.5 (78.0)%

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On March 27, 2020, the U.S. Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") into law to address the economic fallout of the 2020 coronavirus pandemic. One provision of the CARES Act increases the tax deduction for net operating losses from 80% to 100% for 2018 through 2020, allows net operating losses generated in 2018 through 2020 to be carried back up to five years and increases the deductible interest expense limit from 30% to 50% of taxable EBITDA. As a result of these statutory changes, during the threenine months ended March 31,September 30, 2020, the Company determined it will be able to carry its 2019 net operating losses back to tax years when the statutory tax rate was 35% resulting in an income tax benefit of $12.7 million, which is included in income tax expense (benefit) in the accompanying condensed consolidated statements of income.
As of March 31,September 30, 2020, $37.4$34.2 million of income tax receivables isare included in other receivables in the accompanying condensed consolidated balance sheets.
8.9. DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES
One of the Company’s 50% or less owned companies has subsidiaries with interest rate swap agreements designated as cash flow hedges, with an aggregate amortizing notional value of $48.0 million that mature in March 2028. These interest rate swaps call for the subsidiaries to pay a fixed rate of 1.74% on the aggregate amortizing notional value and receive a variable interest rate based on LIBOR. By entering into these interest rate swap agreements, the Company's 50% or less owned companies converted the variable LIBOR component of certain of its outstanding borrowings to a fixed interest rate. During the threenine months ended March 31,September 30, 2020, the Company recognized losses on the fair value of these contracts of $0.9$1.0 million, which isare included as a component of other comprehensive income (loss).
9.10. FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
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indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
As of March 31,September 30, 2020, the Company’s financial assets and liabilities that are measured at fair value on a recurring basis were as follows (in thousands):
Level 1Level 2Level 3
ASSETS
Cash, cash equivalents, restricted cash and restricted cash equivalents$77,330 $— $— 
Marketable securities(1)
7,832 — — 
Level 1Level 2Level 3
ASSETS
Cash, cash equivalents, restricted cash and restricted cash equivalents$99,134 $0 $0 
Marketable securities(1)
7,597 0 0 
______________________
(1)Marketable security gains (losses), net include unrealized gains of $1.0 million and unrealized losses of $0.1 million for the three months ended March 31,September 30, 2020 and 2019, respectively, related to marketable security positions held by the Company as of March 31,September 30, 2020. Marketable security gains (losses), net include unrealized losses of $0.6 million and unrealized gains of $0.3 million for the nine months ended September 30, 2020 and 2019, respectively, related to marketable security positions held by the Company as of September 30, 2020.
As of March 31,September 30, 2020, the estimated fair values of the Company’s other financial assets and liabilities were as follows (in thousands):
Estimated Fair ValueEstimated Fair Value
Carrying
Amount		Level 1Level 2Level 3Carrying
Amount		Level 1Level 2Level 3
ASSETSASSETSASSETS
Notes receivable from third parties (included in other receivables and other assets)Notes receivable from third parties (included in other receivables and other assets)$1,127  $—  $1,127  $—  Notes receivable from third parties (included in other receivables and other assets)$2,334 $0 $2,334 $0 
Investments, at cost, in 50% or less owned companies (included in other assets)Investments, at cost, in 50% or less owned companies (included in other assets)4,201  see belowInvestments, at cost, in 50% or less owned companies (included in other assets)4,201 see below
LIABILITIESLIABILITIESLIABILITIES
Long-term debt, including current portion(1)
Long-term debt, including current portion(1)
$298,767  $—  $279,349  $—  
Long-term debt, including current portion(1)
$248,850 $0 $236,065 $0 
______________________
(1)The estimated fair value includes the embedded conversion options on the Company’s 3.0% Convertible Senior Notes, 2.5% Convertible Senior Notes and 3.25% Convertible Senior Notes.
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The fair value of the Company’s long-term debt and notes receivable from third parties was estimated based upon quoted market prices or by using discounted cash flow analyses based on estimated current rates for similar types of arrangements. It was not practicable to estimate the fair value of certain of the Company’s investments, at cost, in 50% or less owned companies because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. Considerable judgment was required in developing certain of the estimates of fair value including the consideration of the recent COVID-19 pandemic that has caused significant volatility in U.S. and international markets, and accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

10.11. EQUITY TRANSACTIONS
SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire its Securities through open market purchases, privately negotiated transactions or otherwise, depending on market conditions (see Note 5).
During the threenine months ended March 31,September 30, 2020, the Company acquired 41,600 shares of Common Stock for treasury for an aggregate purchase price of $1.4 million. As of March 31,September 30, 2020, the Company’s repurchase authority for the Securities was $113.1$102.2 million.
During the threenine months ended March 31,September 30, 2020, the Company acquired 17,144 shares of Common Stock for treasury for an aggregate purchase price of $0.5 million from its employees to cover their tax withholding obligations related to the vesting of equity awards. These shares were purchased in accordance with the terms of the Company’s Share Incentive Plans and not pursuant to the repurchase authorizations for its Securities granted by SEACOR’s Board of Directors.
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12. NONCONTROLLING INTERESTS IN SUBSIDIARIES
SEA-Vista owns and operates the Company’s fleet of U.S.-flag petroleum and chemical carriers used in the U.S. coastwise trade of crude oil, petroleum and specialty chemical products. On August 2, 2019, the Company acquired the Remaining SEA-Vista Interest. During the threeseven months ended MarchJuly 31, 2019, the net income of SEA-Vista was $10.9$14.8 million, of which $5.3$7.2 million was attributable to noncontrolling interests.
12.13. MULTI-EMPLOYER AND DEFINED BENEFIT PENSION PLANS
During the threenine months ended March 31,September 30, 2020, the Company received notification from the AMOPP that the Company’s withdrawal liability as of September 30, 2019, the latest period for which an actuarial valuation is available, would have been $25.5 million. That liability may change in future years based on various factors, primarily employee census. As of March 31,September 30, 2020, the Company has no intention to withdraw from the AMOPP and no deficit amounts have been invoiced. Depending upon the results of the future actuarial valuations, it is possible that the AMOPP willmay experience furtherfuture funding deficits, requiring the Company to recognize additional payroll related operating expenses in the periods invoices are received or contribution levels are increased.
13.14. SHARE BASED COMPENSATION
During the threenine months ended March 31,September 30, 2020, transactions in connection with the Company’s share based compensation plans were as follows:
Director stock awards granted5001,750 
Employee Stock Purchase Plan (“ESPP”) shares issued29,91762,161 
Restricted stock awards granted167,650 
Stock Option Activities:
Outstanding as of December 31, 20191,454,074 
Granted40,258135,783 
Exercised(17,533)(23,525)
Expired(3,025)(5,986)
Outstanding as of March 31,September 30, 20201,473,7741,560,346 
Shares available for future grants and ESPP purchases as of March 31,September 30, 2020304,1141,078,056 
Share Incentive Plans. On June 2, 2020, SEACOR’s stockholders approved an amendment to the 2014 Share Incentive Plan, whereby the number of shares available under the plan was increased by 900,000.

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14.15. COMMITMENTS AND CONTINGENCIES
As of March 31,September 30, 2020, the Company's capital commitments by year of expected payment were as follows (in thousands):
Remainder of 202020212022TotalRemainder of 202020212022Total
Ocean ServicesOcean Services$20,864  $30,993  $2,636  $54,493  Ocean Services$8,424 $36,657 $2,636 $47,717 
Inland ServicesInland Services6,318  —  —  6,318  Inland Services6,585 849 0 7,434 
OtherOther226  —  —  226  Other128 0 0 128 
$27,408  $30,993  $2,636  $61,037  $15,137 $37,506 $2,636 $55,279 
Ocean Services' capital commitments included 4 U.S.-flag harbor tugs, and an interest in 2 foreign-flag rail ferries.ferries and other equipment and improvements. Inland Services’Services' capital commitments included 6 inland river dry-cargo barges, 21 inland river towboats,towboat, other equipment, and vessel and terminal improvements. Subsequent to March 31, 2020, the Company committed to purchase other property and equipment for $1.1 million.
During 2012, the Company sold National Response Corporation (“NRC”), NRC Environmental Services Inc., SEACOR Response Ltd., and certain other subsidiaries to J.F. Lehman & Company, a private equity firm (the “SES Business Transaction”).
On December 15, 2010, O’Brien’s Response Management L.L.C. (“ORM”) and NRC were named as defendants in several “master complaints” filed in the overall multi-district litigation relating to the Deepwater Horizon oil spill response and clean-up in the Gulf of Mexico (the the “DWH Response”), which is currently pending in the U.S. District Court for the Eastern District of Louisiana (the “MDL”). The “B3” master complaint naming ORM and NRC asserted various claims on behalf of a
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putative class against multiple defendants concerning the clean-up activities generally and the use of dispersants specifically. Both prior to and following the filing of the aforementioned “B3” master complaint, individual civil actions naming the Company, ORM, and/or NRC alleging “B3” exposure-based injuries and/or damages were consolidated with the MDL and stayed pursuant to court order. On February 16, 2016, all but 11 “B3” claims against ORM and NRC were dismissed with prejudice (the “B3 Dismissal Order”). On August 2, 2016, the Court granted an omnibus motion for summary judgment as it concerns ORM and NRC in its entirety, dismissing the remaining 11 plaintiffs’ claims against ORM and NRC with prejudice (the “Remaining Eleven Plaintiffs’ Dismissal Order”). The deadline to appeal both of these orders has expired. The last remaining claim against the Company in connection with the “B3” master complaint was dismissed with prejudice, by an order of the Court granted on July 25, 2019.
On February 18, 2011, Triton Asset Leasing GmbH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., and Transocean Deepwater Inc. (collectively “Transocean”) named ORM and NRC as third-party defendants in a Rule 14(c) Third-Party Complaint in Transocean’s own Limitation of Liability Act action, which is part of the overall MDL, tendering to ORM and NRC the claims in the “B3” master complaint that have already been asserted against ORM and NRC. Various contribution and indemnity cross-claims and counterclaims involving ORM and NRC were subsequently filed. The Company believes that the potential exposure, if any, resulting therefrom has been reduced as a result of the various developments in the MDL, including the B3 Dismissal Order and Remaining Eleven Plaintiffs’ Dismissal Order, and does not expect that these matters will have a material effect on its consolidated financial position, results of operations or cash flows.
Separately, on March 2, 2012, the Court announced that BP Exploration and Production Inc. (“BPXP”) and BP America Production Company (“BP America,” and with BPXP, “BP”) and the Plaintiffs had reached an agreement on the terms of two proposed class action settlements that would resolve, among other things, Plaintiffs’ economic loss and property damage claims and clean-up related claims against BP. The Company, ORM, and NRC had no involvement in negotiating or agreeing to the terms of either settlement, nor are they parties or signatories thereto. The BP settlement pertaining to personal injury claims (the “Medical Settlement”) purported to resolve the “B3” claims asserted against BP and also established a right for class members to pursue individual claims against BP (but not ORM or NRC) for “later-manifested physical conditions,” defined in the Medical Settlement to be physical conditions that were “first diagnosed” after April 16, 2012 and which are claimed to have resulted from exposure during the DWH Response. This back-end litigation-option (“BELO”) provision of the Medical Settlement has specifically-delineated procedures and limitations, should any “B3” class member seek to invoke their BELO right. For example, there are limitations on the claims and defenses that can be asserted, as well as on the issues, elements, and proofs that may be litigated at any trial and the potential recovery for any Plaintiff. Notwithstanding that the Company, ORM, and NRC are listed on the Medical Settlement’s release as to claims asserted by Plaintiffs, the Medical Settlement still permits BP to seek indemnity from any party, to the extent BP has a valid indemnity right. The Medical Settlement was approved by the Court on January 11, 2013 and made effective on February 12, 2014.
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As of mid-Aprilmid-October 2020, BP has tendered approximately 2,3852,400 claims pursuant to the Medical Settlement’s BELO provision for indemnity to ORM and approximately 230 of such claims to NRC. Recently, approximately 750785 of the claims that were tendered by BP to ORM and approximately 6580 of the claims tendered to NRC have been dismissed with prejudice. ORM and NRC have rejected all of BP’s indemnity demands relating to the Medical Settlement’s BELO provision and on February 14, 2019 commenced a legal action against BPXP and BP America with respect to same. That action, captioned O’Brien’s Response Management, L.L.C. et al. v. BP Exploration & Production Inc. et al., Case No. 2:19-CV-01418-CJB-JCW (E.D. La.) (the “Declaratory Judgment Action”), seeks declaratory relief that neither ORM nor NRC have any indemnity obligation to BP with respect to the exposure-based claims expressly contemplated by the Medical Settlement’s BELO provision, nor any contribution, in light of BP’s own actions and conduct over the past ten years (including its complete failure to even seek indemnity) and the resultant prejudice to ORM and NRC; that any indemnity or contribution rights BP may have once had with respect to these personal injury and exposure claims were extinguished once the Medical Settlement was approved by the MDL Court in 2013; and that ORM’s and NRC’s contractual and common law rights operate to bar any indemnity or contribution claims against them by BP. BP subsequently proceeded to begin tendering personal injury claims to ORM and NRC that are being pursued by plaintiffs who opted out of the Medical Settlement and who are thus proceeding with their “B3” claims in their ordinary course (as opposed to pursuant to the Medical Settlement’s BELO provision). ORM and NRC also rejected these demands, and amended itsthe Declaratory Judgment Action on December 11, 2019 to cover BP’s indemnity demands for these opt outthe opt-out claims as well.
On October 16, 2019, BP asserted 4 amended counterclaims against ORM and NRC, as well as 2 claims against ORM’s insurer (Navigators). Those amended counterclaims are breach of contract against ORM for allegedly failing to indemnify BP or name BP as an additional insured on the Navigators policy, declaratory judgment that NRC must allegedly indemnify BP under certain circumstances, and unjust enrichment against ORM and NRC. ORM and NRC successfully moved to dismiss the unjust enrichment counterclaim. The parties also filed simultaneous motions for judgment on the pleadingspleadings. On May 4, 2020, the Court ruled in favor of ORM, NRC, and Navigators, and against BP, on February 14,all claims. BP appealed that ruling on the U.S. Court
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of Appeals for the Fifth Circuit. Briefings are expected to be complete by mid-November 2020, and oppositions toafter which the motionsCourt may hold an oral argument or rule on March 16, 2020.the briefs alone. The Court has not yet ordered whethertiming of a hearing on those motions will occur or whetherruling is within the motions can be decided without a hearing.Court’s discretion.
Generally, the Company, ORM, and NRC believe that BP’s indemnity demands with respect to any “B3” claims, including those involving Medical Settlement class members invoking BELO rights and those involving Medical Settlement opt-out Plaintiffs, are untimely and improper, and intend to vigorously defend their interests. Moreover, ORM has contractual indemnity coverage for the above-referenced claims through its separate agreements with sub-contractors that worked for ORM during the DWH Response and has attempted to preserve its rights in that regard while the Declaratory Judgment Action is pending. Overall, however, the Company believes that both of BP’s settlements have reduced the potential exposure in connection with the various cases relating to the DWH Response. The Company is unable to estimate the potential exposure, if any, resulting from these claims, but does not expect that they will have a material effect on its consolidated financial position, results of operations or cash flows.
In the ordinary course of the Company’s business, it may agree to indemnify its counterparty to an agreement. If the indemnified party makes a successful claim for indemnification, the Company would be required to reimburse that party in accordance with the terms of the indemnification agreement. Indemnification agreements generally, but not always, are subject to threshold amounts, specified claim periods and other restrictions and limitations.
In connection with the SES Business Transaction, the Company remains contingently liable for work performed in connection with the DWH Response. Pursuant to the agreement governing the sale, the Company’s potential liability to the purchaser may not exceed the consideration received by the Company for the SES Business Transaction. The Company is currently indemnified under contractual agreements with BP for the potential “B3” liabilities relating to the DWH Response; this indemnification is unrelated to, and thus not impacted by, the indemnification BP has demanded and discussed above.
In the ordinary 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 would have a material effect on the Company’s consolidated financial position, results of operations or cash flows.
15.16. SEGMENT INFORMATION
Accounting standards require public business enterprises to report information about each of their operating business segments that exceed certain quantitative thresholds or meet certain other reporting requirements. Operating business segments have been defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s basis of measurement of segment profit or loss is as previously defined in the Company’s Annual report on Form
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10-K for the year ended December 31, 2019. Accounting standards also require companies to disaggregate revenues from contracts with customers into categories to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables summarize the operating results, capital expenditures, assets and disaggregated revenues of the Company’s reportable segments.
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Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended September 30, 2020
Operating Revenues:
External customers88,771 64,069 20,505 2,069 — 175,414 
Intersegment0 0 13 0 (13)— 
88,771 64,069 20,518 2,069 (13)175,414 
Costs and Expenses:
Operating59,985 54,338 12,793 1,442 (12)128,546 
Administrative and general10,436 3,321 4,913 706 5,184 24,560 
Depreciation and amortization10,124 6,036 359 459 328 17,306 
80,545 63,695 18,065 2,607 5,500 170,412 
Gains on Asset Dispositions, Net191 427 0 0 0 618 
Operating Income (Loss)8,417 801 2,453 (538)(5,513)5,620 
Other Income (Expense):
Foreign currency gains (losses), net213 (439)(18)0 41 (203)
Other, net5 1,939 0 1 297 2,242 
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax505 (1,141)130 (596)0 (1,102)
Segment Profit (Loss)9,140 1,160 2,565 (1,133)
Other Income (Expense) not included in Segment Profit (Loss)(1,816)
Less Equity Losses included in Segment Profit (Loss)1,102 
Income Before Taxes and Equity Losses5,843 

Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended March 31, 2020
Operating Revenues:
External customers106,115  61,311  22,471  2,399  —  192,296  
Intersegment—  —  35  —  (35) —  
106,115  61,311  22,506  2,399  (35) 192,296  
Costs and Expenses:
Operating77,604  50,919  15,691  1,847  (33) 146,028  
Administrative and general10,744  3,488  7,679  1,124  5,986  29,021  
Depreciation and amortization10,282  6,212  259  619  357  17,729  
98,630  60,619  23,629  3,590  6,310  192,778  
Gains on Asset Dispositions, Net9  315  —  60  —  384  
Operating Income (Loss)7,494  1,007  (1,123) (1,131) (6,345) (98) 
Other Income (Expense):
Foreign currency gains (losses), net(78) (4,478) 12  —  (38) (4,582) 
Other, net22  —  70  —  —  92  
Equity in Losses of 50% or Less Owned Companies, Net of Tax(1,357) (3,376) (8) (52) —  (4,793) 
Segment Profit (Loss)6,081  (6,847) (1,049) (1,183) 
Other Income (Expense) not included in Segment Loss(3,292) 
Less Equity Losses included in Segment Loss4,793  
Loss Before Taxes and Equity Losses(7,880) 
Capital Expenditures3,177  2,196  —  839  165  6,377  
As of March 31, 2020
Property and Equipment:
Historical cost935,400  463,291  1,142  10,547  31,129  1,441,509  
Accumulated depreciation(390,481) (220,798) (1,024) (3,032) (24,089) (639,424) 
Net property and equipment544,919  242,493  118  7,515  7,040  802,085  
Operating Lease Right-of-Use Assets103,725  29,564  2,626  —  265  136,180  
Investments, at Equity, and Advances to 50% or Less Owned Companies75,357  52,443  987  22,781  —  151,568  
Inventories1,605  1,988  211  246  —  4,050  
Goodwill1,852  2,228  28,506  —  —  32,586  
Intangible Assets7,305  7,123  8,524  —  —  22,952  
Other current and long-term assets, excluding cash and near cash assets(1)
62,775  55,794  110,415  5,043  40,263  274,290  
Segment Assets797,538  391,633  151,387  35,585  
Cash and near cash assets(1)
85,162  
Total Assets1,508,873  
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Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the nine months ended September 30, 2020
Operating Revenues:
External customers280,997 188,893 64,139 6,266 — 540,295 
Intersegment0 0 58 0 (58)— 
280,997 188,893 64,197 6,266 (58)540,295 
Costs and Expenses:
Operating195,416 159,172 41,588 4,631 (55)400,752 
Administrative and general29,960 10,101 17,553 2,707 16,464 76,785 
Depreciation and amortization30,676 18,264 974 1,693 1,013 52,620 
256,052 187,537 60,115 9,031 17,422 530,157 
Gains on Asset Dispositions, Net313 8,827 0 60 0 9,200 
Operating Income (Loss)25,258 10,183 4,082 (2,705)(17,480)19,338 
Other Income (Expense):
Foreign currency gains (losses), net218 (3,264)(15)0 19 (3,042)
Other, net9 1,936 70 1 976 2,992 
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax(2,278)(5,218)378 (1,759)0 (8,877)
Segment Profit (Loss)23,207 3,637 4,515 (4,463)
Other Income (Expense) not included in Segment Profit (Loss)(7,262)
Less Equity Losses included in Segment Profit (Loss)8,877 
Income Before Taxes and Equity Losses12,026 
Capital Expenditures6,659 5,940 0 2,201 1,526 16,326 
As of September 30, 2020
Property and Equipment:
Historical cost939,141 457,745 1,145 11,922 32,489 1,442,442 
Accumulated depreciation(410,195)(223,205)(1,072)(4,061)(24,744)(663,277)
Net property and equipment528,946 234,540 73 7,861 7,745 779,165 
Operating Lease Right-of-Use Assets94,057 26,003 1,805 0 2,990 124,855 
Investments, at Equity, and Advances to 50% or Less Owned Companies78,749 51,577 827 21,591 0 152,744 
Inventories1,334 2,108 271 158 0 3,871 
Goodwill1,852 2,258 28,506 0 0 32,616 
Intangible Assets6,641 6,376 8,024 0 0 21,041 
Other current and long-term assets, excluding cash and near cash assets(1)
44,628 71,343 122,364 3,348 37,023 278,706 
Segment Assets756,207 394,205 161,870 32,958 
Cash and near cash assets(1)
106,731 
Total Assets1,499,729 
______________________
(1)Cash and near cash assets includes cash, cash equivalents, restricted cash, restricted cash equivalents and marketable securities.
1721
Table of Contents
Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000		Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended March 31, 2020
For the nine months ended September 30, 2020For the nine months ended September 30, 2020
Revenues from Contracts with Customers:Revenues from Contracts with Customers:Revenues from Contracts with Customers:
Voyage chartersVoyage charters16,037  —  —  —  —  16,037  Voyage charters43,294 0 0 0 0 43,294 
Contracts of affreightmentContracts of affreightment4,496  43,703  —  —  —  48,199  Contracts of affreightment9,713 134,026 0 0 0 143,739 
TariffTariff22,571  —  —  —  —  22,571  Tariff52,312 0 0 0 0 52,312 
Unit freightUnit freight16,448  —  —  —  —  16,448  Unit freight36,967 0 0 0 0 36,967 
Terminal operationsTerminal operations—  5,724  —  —  —  5,724  Terminal operations0 16,515 0 0 0 16,515 
Fleeting operationsFleeting operations—  4,354  —  —  —  4,354  Fleeting operations0 12,606 0 0 0 12,606 
Logistics ServicesLogistics Services—  3,287  —  —  —  3,287  Logistics Services0 12,062 0 0 0 12,062 
Time and material contractsTime and material contracts—  —  19,206  —  —  19,206  Time and material contracts0 0 53,714 0 0 53,714 
Retainer contractsRetainer contracts—  —  2,554  —  —  2,554  Retainer contracts0 0 8,631 0 0 8,631 
Product sales(1)
Product sales(1)
—  —  —  1,657  —  1,657  
Product sales(1)
0 0 0 4,774 0 4,774 
OtherOther950  1,257  746  640  (35) 3,558  Other2,863 4,748 1,852 1,195 (58)10,600 
Lease Revenues:Lease Revenues:Lease Revenues:
Time charter, bareboat charter and rental incomeTime charter, bareboat charter and rental income45,613  2,986  —  102  —  48,701  Time charter, bareboat charter and rental income135,848 8,936 0 297 0 145,081 
106,115  61,311  22,506  2,399  (35) 192,296  280,997 188,893 64,197 6,266 (58)540,295 
______________________
(1)Cost of goods sold related to product sales was $1.4$3.4 million.

1822
Table of Contents
Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended March 31, 2019
Operating Revenues:
External customers109,272  65,602  32,845  1,805  —  209,524  
Intersegment—  —  98  —  (98) —  
109,272  65,602  32,943  1,805  (98) 209,524  
Costs and Expenses:
Operating69,932  54,245  21,772  1,253  (91) 147,111  
Administrative and general10,198  3,356  6,402  839  5,951  26,746  
Depreciation and amortization10,337  5,725  206  489  379  17,136  
90,467  63,326  28,380  2,581  6,239  190,993  
Gains on Asset Dispositions17  420  —  —  —  437  
Operating Income (Loss)18,822  2,696  4,563  (776) (6,337) 18,968  
Other Income (Expense):
Foreign currency gains (losses), net(47) 459  —  —  (7) 405  
Other, net(651) —  (3) —  10  (644) 
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax111  (2,472) (67) (90) —  (2,518) 
Segment Profit (Loss)18,235  683  4,493  (866) 
Other Income (Expense) not included in Segment Profit(938) 
Less Equity Losses included in Segment Profit2,518  
Income Before Taxes and Equity Losses17,791  
Capital Expenditures247  5,237  20  145  —  5,649  
As of March 31, 2019
Property and Equipment:
Historical cost930,464  444,609  1,246  7,037  30,132  1,413,488  
Accumulated depreciation(352,005) (200,516) (1,053) (979) (22,583) (577,136) 
Net property and equipment578,459  244,093  193  6,058  7,549  836,352  
Operating Lease Right-of-Use Assets125,640  36,534  987  —  4,164  167,325  
Investments, at Equity, and Advances to 50% or Less Owned Companies74,127  56,238  419  24,506  —  155,290  
Inventories2,042  2,183  366  323  —  4,914  
Goodwill1,852  2,362  28,506  —  —  32,720  
Intangible Assets8,633  8,618  6,411  —  —  23,662  
Other current and long-term assets, excluding cash and near cash assets(1)
53,070  62,832  91,591  2,383  10,231  220,107  
Segment Assets843,823  412,860  128,473  33,270  
Cash and near cash assets(1)
181,436  
Total Assets1,621,806  

Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended September 30, 2019
Operating Revenues:
External customers102,661 72,020 24,342 1,635 — 200,658 
Intersegment0 0 3 0 (3)— 
102,661 72,020 24,345 1,635 (3)200,658 
Costs and Expenses:
Operating66,888 62,775 16,323 1,404 (4)147,386 
Administrative and general9,404 3,327 5,718 846 5,628 24,923 
Depreciation and amortization10,191 5,694 210 501 379 16,975 
86,483 71,796 22,251 2,751 6,003 189,284 
Gains (Losses) on Asset Dispositions, Net804 330 10 34 (33)1,145 
Operating Income (Loss)16,982 554 2,104 (1,082)(6,039)12,519 
Other Income (Expense):
Foreign currency losses, net(104)(1,729)0 0 (44)(1,877)
Other, net505 0 (1)0 1 505 
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax(242)(1,084)764 (56)0 (618)
Segment Profit (Loss)17,141 (2,259)2,867 (1,138)
Other Income (Expense) not included in Segment Profit (Loss)(3,251)
Less Equity Losses included in Segment Profit (Loss)618 
Income Before Taxes and Equity Losses7,896 

23
Table of Contents
Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the nine months ended September 30, 2019
Operating Revenues:
External customers321,614 199,077 80,932 5,582 — 607,205 
Intersegment0 0 109 0 (109)— 
321,614 199,077 81,041 5,582 (109)607,205 
Costs and Expenses:
Operating208,050 171,506 53,786 4,129 (103)437,368 
Administrative and general29,025 9,816 18,951 2,522 18,069 78,383 
Depreciation and amortization30,758 17,118 625 1,483 1,136 51,120 
267,833 198,440 73,362 8,134 19,102 566,871 
Gains (Losses) on Asset Dispositions, Net1,170 1,080 10 32 (33)2,259 
Operating Income (Loss)54,951 1,717 7,689 (2,520)(19,244)42,593 
Other Income (Expense):
Foreign currency losses, net(150)(1,461)0 0 (52)(1,663)
Other, net(118)0 (6)0 10 (114)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax569 (4,174)569 (412)0 (3,448)
Segment Profit (Loss)55,252 (3,918)8,252 (2,932)
Other Income (Expense) not included in Segment Profit (Loss)5,574 
Less Equity Losses included in Segment Profit (Loss)3,448 
Income Before Taxes and Equity Losses46,390 
Capital Expenditures866 15,408 47 1,030 0 17,351 
As of September 30, 2019
Property and Equipment:
Historical cost928,321 457,263 1,274 7,928 30,121 1,424,907 
Accumulated depreciation(370,679)(210,629)(1,106)(1,951)(23,362)(607,727)
Net property and equipment557,642 246,634 168 5,977 6,759 817,180 
Operating Lease Right-of-Use Assets115,840 33,059 3,442 0 1,123 153,464 
Investments, at Equity, and Advances to 50% or Less Owned Companies77,203 55,777 904 21,084 0 154,968 
Inventories2,056 2,729 193 246 0 5,224 
Goodwill1,852 2,310 28,506 0 0 32,668 
Intangible Assets7,969 7,870 6,045 0 0 21,884 
Other current and long-term assets, excluding cash and near cash assets(1)
65,069 73,818 104,206 3,377 10,406 256,876 
Segment Assets827,631 422,197 143,464 30,684 
Cash and near cash assets(1)
87,982 
Total Assets1,530,246 
______________________
(1)Cash and near cash assets includes cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds.
1924
Table of Contents
Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000		Ocean
Services
$’000		Inland
Services
$’000		Witt
O’Brien’s
$’000		Other
$’000		Corporate
and
Eliminations
$’000		Total
$’000
For the three months ended March 31, 2019
For the nine months ended September 30, 2019For the nine months ended September 30, 2019
Revenues from Contracts with Customers:Revenues from Contracts with Customers:Revenues from Contracts with Customers:
Voyage chartersVoyage charters9,314  —  —  —  —  9,314  Voyage charters37,722 0 0 0 0 37,722 
Contracts of affreightmentContracts of affreightment3,730  48,984  —  —  —  52,714  Contracts of affreightment17,835 149,841 0 0 0 167,676 
TariffTariff20,996  —  —  —  —  20,996  Tariff60,877 0 0 0 0 60,877 
Unit freightUnit freight16,012  —  —  —  —  16,012  Unit freight46,230 0 0 0 0 46,230 
Terminal operationsTerminal operations—  5,480  —  —  —  5,480  Terminal operations0 12,998 0 0 0 12,998 
Fleeting operationsFleeting operations—  4,070  —  —  —  4,070  Fleeting operations0 13,146 0 0 0 13,146 
Logistics ServicesLogistics Services—  3,538  —  —  —  3,538  Logistics Services0 11,574 0 0 0 11,574 
Time and material contractsTime and material contracts—  —  29,946  —  —  29,946  Time and material contracts0 0 69,977 0 0 69,977 
Retainer contractsRetainer contracts—  —  2,405  —  —  2,405  Retainer contracts0 0 7,392 0 0 7,392 
Product sales(1)
Product sales(1)
—  —  —  1,310  —  1,310  
Product sales(1)
0 0 0 4,104 0 4,104 
OtherOther934  902  592  255  (98) 2,585  Other2,888 3,539 3,672 794 (109)10,784 
Lease Revenues:Lease Revenues:Lease Revenues:
Time charter, bareboat charter and rental incomeTime charter, bareboat charter and rental income58,286  2,628  —  240  —  61,154  Time charter, bareboat charter and rental income156,062 7,979 0 684 0 164,725 
109,272  65,602  32,943  1,805  (98) 209,524  321,614 199,077 81,041 5,582 (109)607,205 
______________________
(1)Cost of goods sold related to product sales was $1.1$3.5 million.
2025
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements discussed in this Form 10-Q as well as in other reports, materials and oral statements that the Company releases from time to time constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including risks relating to the COVID-19 pandemic, volatility the pandemic has caused in the capital markets and the effects it has had and could continue to have on the global economy, the potential impact of governmental responses to the pandemic on the Company's business, operations and personnel, financial condition, results of operations, cash flows and liquidity, risks relating to weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels, increased government legislation and regulation of the Company’s businesses that could increase the cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, decreased demand for the Company’s services as a result of declines in the global economy of the COVID-19 pandemic, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, changechanges in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Ocean Services, decreased demand for Ocean Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Ocean Services and Inland Services on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company’s Common Stock, operational risks of Ocean Services and Inland Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland Services’ operations, the ability to realize anticipated benefits from acquisitions and other strategic transactions, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, changes in U.S. and international trade policies and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A (Risk Factors) of the Company’s Annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission (“SEC”). It should be understood that it is not possible to predict or identify all such factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties. Given these factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Overview
The Company’s operations are divided into three main business segments – Ocean Transportation & Logistics Services (“Ocean Services”), Inland Transportation & Logistics Services (“Inland Services”) and Witt O’Brien’s. The Company also has activities that are referred to and described under Other that primarily includes CLEANCOR Energy Solutions LLC and its subsidiaries (collectively “Cleancor”), and noncontrolling investments in various other businesses.

26
Table of Contents
Recent Developments
In March 2020, the World Health Organization declared the outbreak of a novel coronavirus ("COVID-19") as a pandemic, which continues to spread throughout the United States and the world. The spread of COVID-19 has initially caused significant volatility in U.S. and international markets and therehas resulted in large scale business disruption. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and internationalglobal economies.
21
Table of Contents
The outbreak of COVID-19 has caused many governments to implement stay-at-home orders and quarantines and place significant restrictions on travel. Many of these governments have also implemented work restrictions that prohibit or limit non-essential businesses from conducting normal operations, which has required employees to work remotely if possible or be terminated or furloughed. Some restrictions were relaxed during the summer months but have begun to be re-implemented as a result of increasing infection rates throughout the world. The health and safety of the Company's employees and customers is and will continue to be its highest priority throughout the pandemic. The Company has implemented protective measures relating to its workforce including, but not limited to, health monitoring, personal protective equipment, and enhanced cleaning and sanitizing procedures among other measures recommended by various federal, state and local governments.
Through the first quarter, the Company's overall business, results of operations and financial condition have not been materially affected by the COVID-19 outbreak. In early April, two of the Company's subsidiaries began to be adversely affected as a result of reduced demand but there is too much uncertainty to know if the reduction in demand will be short lived or become more prolonged. The Company has implementedis considering implementing various temporary cost containment measures in addition to those it has already implemented, including returning leased-in equipment to their owners, idling certain owned equipment, eliminating overtime and deferring certain planned repair and maintenance projects. The remainder of the Company's businesses have not been materially adversely affected. Witt O'Brien's, the Company's crisis and emergency management consulting business has experienced increased demand as a result of the COVID-19 pandemic, winning new customers and projects to assist both public and private sector clients in their recovery and resiliency efforts.
The Company continues to maintain a strong balance sheet and expects to meet all of its near-term maturities, capital commitments and capital commitments.other liquidity needs. As of March 31,September 30, 2020, the Company's cash, cash equivalents, restricted cash, restricted cash equivalents and marketable securities totaled $85.2$106.7 million, and the Company hashad as if such date and continues to have the ability to borrow up to $225.0 million under undrawn credit facilities. The Company also expects to benefit from certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), most notably from being able to carryback net operating losses for up to five years resulting in income tax refunds of approximately $32 million once the refund requests are processed. The Company is continuing to monitor the impacts of the pandemic on its businesses, operations and financial condition, and in the future may consider implementing mitigation strategies to protect its long-term sustainability.
The COVID-19 pandemic is however, a dynamic and continuously evolving phenomenon and the ultimate severity ofeffect on the outbreakCompany's business in the future, is uncertain at this time.uncertain. If the pandemic worsens, additional restrictions are implemented, or current restrictions are imposed for a longer period of time to contain the outbreak or restrictions that have been relaxed are re-implemented, the Company may experience a material adverse effect on its businesses, results of operations and financial condition. For additional information Seesee Part II Item 1A “Risk Factors.”
Consolidated Results of Operations
The sections below provide an analysis of the Company’s operations by business segment for the three months (“Current Year Quarter”) and nine months ("Current Nine Months") ended March 31,September 30, 2020 compared with the three months (“Prior Year Quarter”) and nine months ("Prior Nine Months") ended March 31,September 30, 2019. See “Item 1. Financial Statements—Note 15.16. Segment Information” included in Part I of this Quarterly Report on Form 10-Q for consolidating segment tables for each period presented. Capitalized terms used and not specifically defined herein have the meaning given to those terms used in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
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Table of Contents
Ocean Transportation & Logistics Services
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
United StatesUnited States86,886  82  90,315  83  United States74,571 84 81,995 80 231,319 82 262,655 82 
ForeignForeign19,229  18  18,957  17  Foreign14,200 16 20,666 20 49,678 18 58,959 18 
106,115  100  109,272  100  88,771 100 102,661 100 280,997 100 321,614 100 
Costs and Expenses:Costs and Expenses:Costs and Expenses:
Operating:Operating:Operating:
PersonnelPersonnel23,296  22  23,182  21  Personnel22,580 25 23,857 23 67,317 24 70,768 22 
Repairs and maintenanceRepairs and maintenance6,702  6  6,267  6  Repairs and maintenance4,766 6 4,717 5 17,464 6 16,937 5 
Dry-dockingDry-docking9,520  9  2,831  3  Dry-docking1,575 2 6,093 6 12,295 4 12,296 4 
Insurance and loss reservesInsurance and loss reserves1,650  2  2,228  2  Insurance and loss reserves2,236 3 2,383 2 5,910 2 6,226 2 
Fuel, lubes and suppliesFuel, lubes and supplies9,571  9  7,789  7  Fuel, lubes and supplies5,466 6 7,633 7 21,426 8 25,403 8 
Leased-in equipmentLeased-in equipment11,585  11  12,086  11  Leased-in equipment11,729 13 10,693 11 34,042 12 33,819 11 
OtherOther15,280  14  15,549  14  Other11,633 13 11,512 11 36,962 13 42,601 13 
77,604  73  69,932  64  59,985 68 66,888 65 195,416 69 208,050 65 
Administrative and generalAdministrative and general10,744  10  10,198  9  Administrative and general10,436 12 9,404 9 29,960 11 29,025 9 
Depreciation and amortizationDepreciation and amortization10,282  10  10,337  10  Depreciation and amortization10,124 11 10,191 10 30,676 11 30,758 9 
98,630  93  90,467  83  80,545 91 86,483 84 256,052 91 267,833 83 
Gains on Asset Dispositions9  —  17  —  
Gains on Asset Dispositions, NetGains on Asset Dispositions, Net191 — 804 1 313 — 1,170 — 
Operating IncomeOperating Income7,494  7  18,822  17  Operating Income8,417 9 16,982 17 25,258 9 54,951 17 
Other Income (Expense):Other Income (Expense):Other Income (Expense):
Foreign currency losses, net(78) —  (47) —  
Foreign currency gains (losses), netForeign currency gains (losses), net213 — (104)— 218 — (150)— 
Other, netOther, net22  —  (651) —  Other, net5 — 505 — 9 — (118)— 
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of TaxEquity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax(1,357) (1) 111  —  Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax505 1 (242)— (2,278)(1)569 — 
Segment Profit(1)
Segment Profit(1)
6,081  6  18,235  17  
Segment Profit(1)
9,140 10 17,141 17 23,207 8 55,252 17 
______________________
(1)Includes amounts attributable to both SEACOR and noncontrolling interests. See “Item 1. Financial Statements—Note 11.12. Noncontrolling Interests in Subsidiaries” included in Part I of this Quarterly Report on Form 10-Q.
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Operating Revenues by Service Line. The table below sets forth, for the periods indicated, operating revenues by service line.
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Petroleum and chemical:Petroleum and chemical:Petroleum and chemical:
Time charterTime charter15,926  15  30,256  28  Time charter20,856 23 24,549 24 56,966 20 80,705 25 
Bareboat charterBareboat charter10,150  9  7,411  7  Bareboat charter10,261 12 7,075 7 30,562 11 21,475 6 
Voyage charterVoyage charter2,590  2  —  —  Voyage charter974 1 2,803 3 5,638 2 4,135 1 
Dry bulk:Dry bulk:Dry bulk:
Contracts of affreightmentContracts of affreightment4,496  4  3,730  3  Contracts of affreightment1,402 2 7,211 7 9,713 3 17,836 5 
Voyage charterVoyage charter4,032  4  2,113  2  Voyage charter7,982 9 2,173 2 16,247 6 6,115 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
TariffTariff22,571  21  20,996  19  Tariff13,837 16 18,915 18 52,312 19 60,877 19 
Time charterTime charter1,785  2  1,299  1  Time charter1,868 2 1,857 2 5,593 2 5,032 2 
Bareboat charterBareboat charter1,633  2  1,782  2  Bareboat charter1,670 2 1,664 2 4,955 2 5,034 2 
Logistics Services:Logistics Services:Logistics Services:
Time charter(1)
Time charter(1)
16,119  15  17,538  16  
Time charter(1)
11,663 13 14,534 14 37,773 13 43,815 14 
Voyage charterVoyage charter9,415  9  7,201  7  Voyage charter7,139 8 6,994 7 21,408 8 27,472 9 
Unit freightUnit freight16,448  16  16,012  15  Unit freight10,158 11 13,919 13 36,967 13 46,230 14 
Managed ServicesManaged Services950  1  934  —  Managed Services961 1 967 1 2,863 1 2,888 1 
106,115  100  109,272  100  88,771 100 102,661 100 280,997 100 321,614 100 
_______________________
(1)Includes MSP revenues of $3.9$4.1 million and $3.1$4.3 million for the three months ended March 31,September 30, 2020 and 2019, respectively, and $13.0 million and $12.0 million for the nine months ended September 30, 2020 and 2019, respectively.
Current Year Quarter compared with Prior Year Quarter
Operating Revenues. Operating revenues were $3.2$13.9 million lower.
Operating revenues from bulk transportation services were $6.3$2.3 million lower. Operating revenues from petroleum and chemical transportation services were $9.0$2.3 million lower primarily due to out-of-service time for a regulatory dry-docking, a change in contract status from time charter to bareboat charter in December 2019 for one U.S.-flag petroleum and chemical carrier and the commencementlower spot market activity for Ocean Services' U.S.-flag articulated tug-barge. These reductions were partially offset by less out-of-service time for dry-docking and extension of twoa higher time charters at rates lower than the previous charter rate for two otherone U.S.-flag petroleum and chemical carriers. These decreases were partially offset by one additional operating day in the Current Year Quarter. Operating revenues from dry-bulk transportation were $2.7 million higher primarily due to out-of-service time for mobilization following the regulatory dry-docking of one U.S.-flag bulk carrier in the Prior Year Quarter.carrier.
Operating revenues from port and infrastructure services were $1.9$5.1 million higherlower primarily due to an increaselower activity levels in harbor towing tariff activities.its port network due to both the COVID-19 pandemic and the impact of port closures as a consequence of hurricane and major storm activity along the U.S. Gulf Coast.
Operating revenues from logistics services were $1.2$6.5 million higherlower primarily due to higher militaryout-of-service time for the regulatory dry-docking of one PCTC, and a decrease in unit freight shipping demand for containers and project cargoes in the Bahamas and Turks and Caicos as a consequence of mandated COVID-19 quarantines and the shutdown of non-essential commercial cargo activity for PCTCs.activity.
Operating Expenses. Operating expenses were $7.7$6.9 million higherlower primarily due to regulatory dry-docking costs for one U.S.-flag petroleumlower personnel and chemical carrier and five U.S.-flag harbor tugs, partially offset by lower dry-docking costs for PCTCs and lower overall operating costs for another U.S.-flag petroleum and chemical carrier following athe change in contract status from time charter to bareboat charter duringin December 2019.2019 for one U.S.-flag petroleum and chemical carrier, lower regulatory dry-docking costs for U.S.-flag petroleum and chemical carriers and short-sea container/RORO vessels, and lower voyage costs for logistics services as a consequence of the decreased revenues discussed above. These decreases were partially offset by higher leased-in equipment expenses for the time charter-in of one U.S.-flag dry bulk carrier to complete a contractual obligation.
Administrative and General. Administrative and general expenses were $0.5$1.0 million higher primarily due to higher facilitylegal costs.
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Gains on Asset Dispositions, Net. During the Current Year Quarter, Ocean Services sold other equipment for net proceeds of $0.2 million and information technology costs, partially offset by lower compensation costs.gains of $0.2 million. During the Prior Year Quarter, Ocean Services recognized $0.8 million of previously deferred gains following the repayment of a note receivable related to the sale of one harbor tug.
Operating Income. OperatingExcluding gains on asset dispositions, net, operating income as a percentage of operating revenues was 7%9% in the Current Year Quarter compared with 17%16% in the Prior Year Quarter. The decrease was primarily due to lower operating revenues and higher leased-in equipment expenses, partially offset by lower dry-docking and voyage costs across the fleet, and lower operating expenses from a change in contract status lower operating revenues from the commencement and extension of two time charters at lower rates, and higher dry-docking costs for certainone U.S.-flag petroleum and chemical carriers and U.S.-flag harbor tugs.carrier.
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Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax. Ocean Services recognized equity in earnings of 50% or less owned companies, net of tax, of $0.5 million in the Current Year Quarter compared with equity in losses of 50% or less owned companies, net of tax, of $0.2 million in the Prior Year Quarter primarily due to higher earnings from Trailer Bridge associated with increased demand in the Puerto Rico liner trade and lower losses from the Ocean Services' rail ferry joint ventures.
Current Nine Months compared with Prior Nine Months
Operating Revenues. Operating revenues were $40.6 million lower.
Operating revenues from bulk transportation were $11.1 million lower. Operating revenues from petroleum and chemical transportation were $13.1 million lower primarily due to a change in contract status from time charter to bareboat charter in December 2019 for one U.S.-flag petroleum and chemical carrier and a lower time charter rate for another U.S.-flag petroleum and chemical carrier. These decreases were partially offset by a higher time charter rate for one U.S.-flag petroleum and chemical carrier and less out-of-service time for dry-docking and repairs and maintenance for the U.S.-flag petroleum and chemical carrier fleet. Operating revenues from dry bulk transportation were $2.0 million higher primarily due to higher voyage charter activity.
Operating revenues from port and infrastructure services were $8.1 million lower primarily due to lower activity levels in its port network due to both the COVID-19 pandemic and the impact of port closures as a consequence of hurricane and major storm activity along the U.S. Gulf Coast.
Operating revenues from logistics services were $21.4 million lower primarily due to lower military and commercial cargo activity for PCTCs associated with the ongoing COVID-19 pandemic, out-of-service time for the regulatory dry-docking of one PCTC, and a decrease in unit freight shipping demand for containers and project cargoes in the Bahamas and Turks and Caicos as a consequence of COVID-19 quarantines and the shutdown of non-essential commercial activity.
Operating Expenses. Operating expenses were $12.6 million lower primarily due to lower personnel and operating costs following the change in contract status from time charter to bareboat charter in December 2019 for one U.S.-flag petroleum and chemical carrier and lower voyage costs for logistics services as a consequence of the decreased activities discussed above. These decreases were partially offset by higher leased-in equipment expenses for the time charter-in of one U.S.-flag dry bulk carrier to complete a contractual obligation.
Administrative and General. Administrative and general expenses were $0.9 million higher primarily due to higher legal costs.
Gains on Asset Dispositions, Net. During the Current Nine Months, Ocean Services sold other equipment for net proceeds of $0.4 million and gains of $0.3 million. During the Prior Nine Months, Ocean Services recognized $1.2 million of previously deferred gains following the repayment of notes receivable related to the sales of one harbor tug and real property.
Operating Income. Excluding gains on asset dispositions, net, operating income as a percentage of operating revenues was 9% in the Current Nine Months compared with 17% in the Prior Nine Months. The Companydecrease was primarily due to lower operating revenues and higher leased-in equipment expenses, partially offset by lower overall voyage costs and lower operating expenses from a change in contract status for one U.S.-flag petroleum and chemical carrier.
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax. Ocean Services recognized equity in losses of 50% or less owned companies, net of tax, of $1.4$2.3 million in the Current Year QuarterNine Months compared with equity in earnings of 50% or less owned companies, net of tax, of $0.1$0.6 million in the Prior Year QuarterNine Months primarily due to lower earningslosses from Trailer Bridge associated with decreased demand in the Puerto Rico liner trade and losses fromdue to the Company’s rail ferry joint ventures,ongoing COVID-19 pandemic, partially offset by an increase in earnings from KSM.KSM and lower losses from Ocean Services' rail ferry joint ventures.
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Fleet Count
The composition of Ocean Services’ fleet as of March 31September 30 was as follows:
OwnedLeased-inJoint VenturedTotalOwnedLeased-inJoint VenturedTotal
202020202020
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Petroleum and chemical carriers - U.S.-flagPetroleum and chemical carriers - U.S.-flag7  2  —  9  Petroleum and chemical carriers - U.S.-flag7 2 — 9 
Bulk carriers - U.S.-flagBulk carriers - U.S.-flag2  —  —  2  Bulk carriers - U.S.-flag2 — — 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
Harbor tugs - U.S.-flag(1)Harbor tugs - U.S.-flag(1)20  5  —  25  Harbor tugs - U.S.-flag(1)17 7 — 24 
Harbor tugs - Foreign-flagHarbor tugs - Foreign-flag6  —  2  8  Harbor tugs - Foreign-flag6 — 2 8 
Offshore tugs - U.S.-flagOffshore tugs - U.S.-flag1  —  —  1  Offshore tugs - U.S.-flag1 — — 1 
Ocean liquid tank barges - U.S.-flagOcean liquid tank barges - U.S.-flag5  —  —  5  Ocean liquid tank barges - U.S.-flag5 — — 5 
Ocean liquid tank barges - Foreign-flagOcean liquid tank barges - Foreign-flag—  —  1  1  Ocean liquid tank barges - Foreign-flag— — 1 1 
Specialty vessels - Foreign-flag(1)(2)
Specialty vessels - Foreign-flag(1)(2)
—  —  2  2  
Specialty vessels - Foreign-flag(1)(2)
— — 2 2 
Logistics Services:Logistics Services:Logistics Services:
PCTC(2) - U.S.-flag
—  4  —  4  
Short-sea container/RORO(3) vessels - Foreign-flag
8  —  —  8  
RORO(3) & deck barges - U.S.-flag
—  —  7  7  
PCTC(3) - U.S.-flag
PCTC(3) - U.S.-flag
— 4 — 4 
Short-sea container/RORO(4) vessels - Foreign-flag
Short-sea container/RORO(4) vessels - Foreign-flag
8 — — 8 
RORO(4) & deck barges - U.S.-flag
RORO(4) & deck barges - U.S.-flag
— — 7 7 
Rail ferries - Foreign-flagRail ferries - Foreign-flag—  —  2  2  Rail ferries - Foreign-flag— — 2 2 
49  11  14  74  46 13 14 73 
201920192019
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Petroleum and chemical carriers - U.S.-flagPetroleum and chemical carriers - U.S.-flag7  2  —  9  Petroleum and chemical carriers - U.S.-flag7 2 — 9 
Bulk carriers - U.S.-flagBulk carriers - U.S.-flag2  —  —  2  Bulk carriers - U.S.-flag2 — — 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
Harbor tugs - U.S.-flagHarbor tugs - U.S.-flag19  5  —  24  Harbor tugs - U.S.-flag19 5 — 24 
Harbor tugs - Foreign-flagHarbor tugs - Foreign-flag6  —  2  8  Harbor tugs - Foreign-flag6 — 2 8 
Offshore tugs - U.S.-flagOffshore tugs - U.S.-flag1  —  —  1  Offshore tugs - U.S.-flag1 — — 1 
Ocean liquid tank barges - U.S.-flagOcean liquid tank barges - U.S.-flag5  —  —  5  Ocean liquid tank barges - U.S.-flag5 — — 5 
Ocean liquid tank barges - Foreign-flagOcean liquid tank barges - Foreign-flag—  —  1  1  Ocean liquid tank barges - Foreign-flag— — 1 1 
Specialty vessels - Foreign-flag(4)(2)
Specialty vessels - Foreign-flag(4)(2)
—  —  1  1  
Specialty vessels - Foreign-flag(4)(2)
— — 2 2 
Logistics Services:Logistics Services:Logistics Services:
PCTC(2) - U.S.-flag
—  4  —  4  
Short-sea container/RORO(3) vessels - Foreign-flag
9  —  —  9  
RORO(3) & deck barges - U.S.-flag
—  —  7  7  
PCTC(3) - U.S.-flag
PCTC(3) - U.S.-flag
— 4 — 4 
Short-sea container/RORO(4) vessels - Foreign-flag
Short-sea container/RORO(4) vessels - Foreign-flag
8 — — 8 
RORO(4) & deck barges - U.S.-flag
RORO(4) & deck barges - U.S.-flag
— — 7 7 
Rail ferries - Foreign-flagRail ferries - Foreign-flag—  —  2  2  Rail ferries - Foreign-flag— — 2 2 
49  11  13  73  48 11 14 73 
______________________
(1)Leased-in includes three U.S.-flag harbor tugs accounted for as "failed" sale-leasebacks. See "Item 1. Financial Statements — Note 7. Other Long-Term Financial Liabilities".
(2)One line handling and one crew transport vessel.
(2)(3)Pure Car/Truck Carrier.
(3)(4)Roll On/Roll Off.
(4)One line handling vessel.
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Inland Transportation & Logistics Services
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
United StatesUnited States59,797  98  63,612  97  United States62,084 97 69,736 97 183,820 97 191,941 96 
ForeignForeign1,514  2  1,990  3  Foreign1,985 3 2,284 3 5,073 3 7,136 4 
61,311  100  65,602  100  64,069 100 72,020 100 188,893 100 199,077 100 
Costs and Expenses:Costs and Expenses:Costs and Expenses:
Operating:Operating:Operating:
Barge logisticsBarge logistics32,799  53  33,585  51  Barge logistics36,070 56 41,985 58 108,927 58 112,151 56 
PersonnelPersonnel5,405  9  4,571  7  Personnel5,559 9 4,990 7 15,515 8 13,767 7 
Repairs and maintenanceRepairs and maintenance1,711  3  1,214  2  Repairs and maintenance1,313 2 1,921 3 4,200 2 4,759 2 
Insurance and loss reservesInsurance and loss reserves722  1  1,016  2  Insurance and loss reserves1,088 2 822 1 2,544 1 2,897 1 
Fuel, lubes and suppliesFuel, lubes and supplies1,535  2  1,811  3  Fuel, lubes and supplies1,582 2 1,724 2 4,509 2 5,408 3 
Leased-in equipmentLeased-in equipment3,081  5  3,611  6  Leased-in equipment2,662 5 3,472 5 8,474 4 10,590 5 
OtherOther3,493  6  4,218  6  Other3,429 5 4,530 6 10,120 6 12,838 7 
Net barge pool earnings attributable to third partiesNet barge pool earnings attributable to third parties2,173  4  4,219  6  Net barge pool earnings attributable to third parties2,635 4 3,331 5 4,883 3 9,096 5 
50,919  83  54,245  83  54,338 85 62,775 87 159,172 84 171,506 86 
Administrative and generalAdministrative and general3,488  6  3,356  5  Administrative and general3,321 5 3,327 5 10,101 5 9,816 5 
Depreciation and amortizationDepreciation and amortization6,212  10  5,725  9  Depreciation and amortization6,036 10 5,694 8 18,264 10 17,118 9 
60,619  99  63,326  97  63,695 100 71,796 100 187,537 99 198,440 100 
Gains on Asset Dispositions, NetGains on Asset Dispositions, Net315  1  420  1  Gains on Asset Dispositions, Net427 1 330 1 8,827 4 1,080 1 
Operating IncomeOperating Income1,007  2  2,696  4  Operating Income801 1 554 1 10,183 5 1,717 1 
Other Income:Other Income:Other Income:
Foreign currency gains (losses), net(4,478) (7) 459  1  
Foreign currency losses, netForeign currency losses, net(439)— (1,729)(2)(3,264)(1)(1,461)(1)
Other, netOther, net1,939 3 — — 1,936 1 — — 
Equity in Losses of 50% or Less Owned Companies, Net of TaxEquity in Losses of 50% or Less Owned Companies, Net of Tax(3,376) (6) (2,472) (4) Equity in Losses of 50% or Less Owned Companies, Net of Tax(1,141)(2)(1,084)(2)(5,218)(3)(4,174)(2)
Segment Profit (Loss)(1)
Segment Profit (Loss)(1)
(6,847) (11) 683  1  
Segment Profit (Loss)(1)
1,160 2 (2,259)(3)3,637 2 (3,918)(2)
______________________
(1)Includes amounts attributable to both SEACOR and noncontrolling interests.
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Operating Revenues by Service Line. The table below sets forth, for the periods indicated, operating revenues by service line.
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Dry-cargo barge pools(1)
Dry-cargo barge pools(1)
42,189  69  46,993  72  
Dry-cargo barge pools(1)
44,350 69 52,762 73 128,952 68 142,705 72 
International liquid tank barge operationsInternational liquid tank barge operations1,514  3  1,991  3  International liquid tank barge operations1,985 3 2,285 3 5,073 3 7,136 3 
Boat, specialty barge and other operationsBoat, specialty barge and other operations2,074  3  1,636  2  Boat, specialty barge and other operations2,026 3 1,745 2 6,196 3 5,084 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
Terminal operationsTerminal operations6,058  10  5,807  9  Terminal operations5,709 9 4,722 7 17,519 9 13,980 7 
Fleeting operationsFleeting operations5,041  8  4,736  7  Fleeting operations4,443 7 5,895 8 14,648 8 15,235 8 
Machine shop and shipyardMachine shop and shipyard673  1  427  1  Machine shop and shipyard938 1 670 1 2,968 2 1,924 1 
Logistics ServicesLogistics Services3,287  5  3,538  5  Logistics Services4,125 7 3,461 5 12,062 6 11,574 6 
Managed ServicesManaged Services475  1  474  1  Managed Services493 1 480 1 1,475 1 1,439 1 
61,311  100  65,602  100  64,069 100 72,020 100 188,893 100 199,077 100 
______________________
(1)Operating revenues for the three months ended March 31,September 30, 2020 and 2019, includes $17.0$19.1 million and $20.2$22.8 million, respectively, attributable to third-party barge owners participating in dry-cargo barge pools managed by Inland Services. Operating revenues for the Company.nine months ended September 30, 2020 and 2019, includes $54.3 million and $61.6 million, respectively, attributable to third-party barge owners participating in dry-cargo barge pools managed by Inland Services.
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Current Year Quarter compared with Prior Year Quarter
Operating Revenues.Operating revenues were $4.3$8.0 million lower.
Operating revenues from bulk transportation services were $4.8$8.4 million lower. Operating revenues from the dry-cargo barge pools were $4.8$8.4 million lower primarily due to lower freight rates resulting from an oversupply of barges and a 4% declinedelayed start to the harvest in U.S. grain exports from the Center Gulf reducing demand for barge freight and driving down rates. The primary causes for the decline in demand were the continuing trade war with China, U.S. farm subsidy programs which were a disincentive to exports and competition from South America as a result of a stronger U.S. dollar.lower Mississippi River region. Operating revenues from international liquid tank barge operations were $0.4$0.3 million lower primarily due to two towboats being outa reduction in volumes moved as a consequence of service for scheduled maintenancelower fuel production in Colombia following a countrywide lockdown in response to the COVID-19 pandemic and lower volumes transported. Operatinglow water conditions. These decreases were partially offset by a $0.3 million increase in operating revenues from boat, specialty barge and other operations were $0.4 million higher primarily due to placing an additionala new inland river towboat into service during the fourth quarter of 2019.2019.
Operating revenues from port and infrastructure services were $0.8$0.2 million higher.lower. Operating revenues from fleeting operations were $1.5 million lower primarily due to the closure of the Illinois River and lower demand for fleeting services from liquid tank barge owners as a result of decreased demand for crude oil. These decreases were partially offset by a $1.0 million increase in operating revenues from terminal operations and fleeting operations were $0.3 million and $0.3 million higher, respectively, primarily due to improved operating conditions compared with the prior year, which were impacted by high water and flooding. higher throughput volumes at Inland Services' liquid terminal.
Operating revenues from machine and shipyardlogistics services were $0.2$0.7 million higher primarily due to an increase in repairs for third parties.
Operating revenues from logistics services were $0.3 million lower primarily due to a decrease in container movements.
Operating Expenses. Operating expenses were $3.3$8.4 million lower.
Barge logistics expenses were $5.9 million lower primarily due to a decrease in towing and switching costs that were impacted by restricted tow sizes and high water rates in the Prior Year Quarter. Personnel expenses were $0.6 million higher primarily due to placing two towboats into service in logistics services. Repairs and maintenance expenses were $0.6 million lower primarily due to fewer unscheduled repairs for harbor boats. Leased-in equipment expenses were $0.8 million lower primarily due to lower switching costs as a resultreduction in bought-in freight and the return of high water and floodinga chartered-in towboat in the Prior Year Quarter partially offset by higher towing costs in the Current Year Quarter. Personnel costslogistics services. Other expenses were $0.8 million higher primarily due to crewing costs associated with the additional towboat placed in service for logistics services during the fourth quarter of 2019 and higher terminal throughput. Repair and maintenance costs were $0.5 million higher primarily due to equipment repairs at the terminal operations. Insurance and loss reserves were $0.3 million lower primarily due to fewer insurance claims. Fuel, lubes and supplies were $0.3 million lower primarily due to reduced materials consumed for third party repair work and lower fuel expense. Leased-in equipment expense was $0.5$1.1 million lower primarily due to a decrease in outside barge freight and the return of a time chartered-in towboatthird-party stevedoring expenses in the fourth quarter of 2019. Other operating expenses were $0.7 million lower primarily due to decreased container movements.logistics services.
Depreciation and Amortization. Depreciation and amortization expenses were $0.5$0.3 million higher primarily due to placing a newly built towboatthree towboats and other equipment into service insubsequent to the fourth quarter of 2019.Prior Year Quarter.
Gains on Asset Dispositions.Dispositions, Net. During the Current Year Quarter, Inland Services sold other equipment for net proceeds $0.2 million and duringgains of $0.1 million. In addition, Inland Services recognized previously deferred gains of $0.3 million. During the Prior Year Quarter, the CompanyInland Services recognized previously deferred gains of $0.3 million.
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Operating Income. Excluding the impact of gains on asset dispositions, net, operating income as a percentage of operating revenues was 1%marginally higher in the Current Year Quarter compared with 3% inthan the Prior Year Quarter. The decline was primarily due to lower earnings from the dry-cargo barge pools.
Foreign currency gains (losses), net.Currency Losses, Net. Foreign currency gains (losses), net in all periods were primarily due to movements in the exchange rate of the Colombian peso in relation to the U.S. dollar underlying certain of the Company’sInland Services' intercompany lease obligations.
Other, net. Other, net in the Current Year Quarter relates to the receipt of insurance proceeds from business interruption claims following the prolonged flooding during the second quarter of 2019.
Equity in Losses of 50% or Less Owned Companies, Net of Tax. Equity in losses of 50% or less owned companies, net of tax, were $0.9$0.1 million lower.higher. Equity in losses forearnings from SCF Bunge Marine were $0.6$0.3 million higher primarily due to unscheduledplacing an additional inland river towboat repair costs and placing a newly built towboat ininto service during the fourth quarter of 2019. Equity losses from SCFCo were $0.3 million higher primarily due to low water levels resulting in losses for Bunge-SCF Graina reduced barge intake and increased transit times.
Current Nine Months compared with Prior Nine Months
Operating Revenues. Operating revenues were $0.4$10.2 million lower.
Operating revenues from bulk transportation services were $14.7 million lower. Operating revenues from the dry-cargo barge pools were $13.8 million lower primarily due to lower freight rates resulting from an oversupply of barges and a delayed start to the harvest in the lower Mississippi River region. Operating revenues from international liquid tank barge operations were $2.1 million lower primarily due to a reduction in volumes moved as a consequence of lower fuel production in Colombia following a countrywide lockdown in response to the COVID-19 pandemic and low water conditions. These decreases were partially offset by a $1.1 million increase in operating revenues from boat, specialty barge and other operations primarily due to placing a new inland river towboat into service during the fourth quarter of 2019.
Operating revenues from port and infrastructure services were $4.0 million higher. Operating revenues from terminal operations were $3.5 million higher grain volumes handled at its facilities. Equityprimarily due to the impact of prolonged flooding and the closure of the St. Louis harbor for 45 days that restricted activity during the second quarter of 2019. Operating revenues from machine shop and shipyard services were $1.0 million higher primarily due to an increase in lossesthird-party projects. These increases were partially offset by a $0.6 million reduction in operating revenues from fleeting operations primarily due to the closure of the Illinois River and lower demand for SCFCo Holdings LLCfleeting services from liquid tank barge owners as a result of decreased demand for crude oil.
Operating revenues from logistics services were $0.5 million higher primarily due to an increase in container movements.
Operating Expenses. Operating expenses were $12.3 million lower.
Barge logistics expenses were $3.2 million lower primarily due to a decrease in towing and switching costs that were impacted by restricted tow sizes and high water rates in the Prior Nine Months. Personnel expenses were $1.7 million higher primarily due to placing two towboats into service in logistics services subsequent to the Prior Nine Months and the impact of reduced activity levels in the Prior Nine Months as a consequence of the prolonged flooding during the second quarter of 2019. Repairs and maintenance expenses were $0.6 million lower primarily due to fewer unscheduled repairs for harbor boats. Fuel, lube and supplies expenses were $0.9 million lower primarily due to higher fuel usage in fleeting operations in the Prior Nine Months as a result of the prolonged flooding. Leased-in equipment expenses were $2.1 million lower primarily due to a reduction in volumesbought-in freight and the return of a chartered-in towboat in logistics services. Other expenses were $2.7 million lower primarily due to lower water levelsa decrease in third-party stevedoring expenses in logistics services.
Administrative and less market demand.General. Administrative and general expenses were $0.3 million higher primarily due to higher headcount.
Depreciation and Amortization. Depreciation and amortization expenses were $1.1 million higher primarily due to placing three towboats and other equipment into service subsequent to the Prior Nine Months.
Gains on Asset Dispositions, Net. During the Current Nine Months, Inland Services sold 39 dry-cargo barges and other equipment for net proceeds of $9.2 million and gains of $7.8 million. In addition, Inland Services recognized previously deferred gains of $1.0 million. During the Prior Nine Months, Inland Services sold other equipment for net proceeds of $0.1 million and gains of $0.1 million. In addition, Inland Services recognized previously deferred gains of $1.0 million.
Operating Income. Excluding gains on asset dispositions, net, operating income as a percentage of operating revenues was 1% in the Current Nine Months compared with 0% in the Prior Nine Months.
Foreign Currency Losses, Net. Foreign currency gains (losses), net in all periods were primarily due to movements in the exchange rate of the Colombian peso in relation to the U.S. dollar underlying certain of Inland Services' intercompany lease obligations.
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Other, net. Other, net in the Current Nine Months relates to the receipt of insurance proceeds from business interruption claims following the prolonged flooding during the second quarter of 2019.
Equity in Losses of 50% or Less Owned Companies, Net of Tax. Equity in losses of 50% or less owned companies, net of tax, were $1.0 million higher. Equity earnings from SCF Bunge Marine were $0.5 million higher primarily due to higher activity levels as a consequence of improved operating conditions and placing an additional inland river towboat into service during the fourth quarter of 2019. During the Prior Nine Months, prolonged flooding resulted in poor operating conditions, tow size restrictions and periodic river and harbor closures. Equity losses from Bunge-SCF Grain were $0.3 million lower primarily due to lower depreciation and interest expenses. Equity losses from SCFCo were $1.6 million higher primarily due to low water levels resulting in a reduced barge intake and increased transit times.
Fleet Count
The composition of Inland Services’ fleet as of March 31September 30 was as follows:
OwnedLeased-inJoint
Ventured		PooledTotalOwnedLeased-inJoint
Ventured		PooledTotal
202020202020
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Dry-cargo bargesDry-cargo barges591  50  258  473  1,372  Dry-cargo barges562 50 258 452 1,322 
Liquid tank bargesLiquid tank barges20  —  —  —  20  Liquid tank barges20 — — — 20 
Specialty bargesSpecialty barges5  —  —  —  5  Specialty barges5 — — — 5 
Towboats:Towboats:Towboats:
4,000 hp - 6,600 hp4,000 hp - 6,600 hp4  4  11  —  19  4,000 hp - 6,600 hp4 4 11 — 19 
3,300 hp - 3,900 hp3,300 hp - 3,900 hp1  —  2  —  3  3,300 hp - 3,900 hp1 — 2 — 3 
Less than 3,300 hpLess than 3,300 hp2  —  —  —  2  Less than 3,300 hp2 — — — 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
Harbor boats:Harbor boats:Harbor boats:
1,100 hp - 2,000 hp1,100 hp - 2,000 hp12  6  —  —  18  1,100 hp - 2,000 hp12 6 — — 18 
Less than 1,100 hpLess than 1,100 hp6  —  —  —  6  Less than 1,100 hp6 — — — 6 
Logistics Services:Logistics Services:Logistics Services:
Dry-cargo bargesDry-cargo barges20  —  —  15  35  Dry-cargo barges10 — — 25 35 
Towboats:Towboats:Towboats:
Less than 3,300 hpLess than 3,300 hp1  —  —  —  1  Less than 3,300 hp2 — — — 2 
662  60  271  488  1,481  624 60 271 477 1,432 
201920192019
Bulk Transportation Services:Bulk Transportation Services:Bulk Transportation Services:
Dry-cargo bargesDry-cargo barges586  48  258  482  1,374  Dry-cargo barges586 48 258 482 1,374 
Liquid tank bargesLiquid tank barges20  —  —  —  20  Liquid tank barges20 — — — 20 
Specialty bargesSpecialty barges5  —  —  —  5  Specialty barges5 — — — 5 
Towboats:Towboats:Towboats:
4,000 hp - 6,600 hp4,000 hp - 6,600 hp3  4  11  —  18  4,000 hp - 6,600 hp3 4 11 — 18 
3,300 hp - 3,900 hp3,300 hp - 3,900 hp1  —  2  —  3  3,300 hp - 3,900 hp1 — 2 — 3 
Less than 3,300 hpLess than 3,300 hp2  —  —  —  2  Less than 3,300 hp2 — — — 2 
Port & Infrastructure Services:Port & Infrastructure Services:Port & Infrastructure Services:
Harbor boats:Harbor boats:Harbor boats:
1,100 hp - 2,000 hp1,100 hp - 2,000 hp12  6  —  —  18  1,100 hp - 2,000 hp12 6 — — 18 
Less than 1,100 hpLess than 1,100 hp6  —  —  —  6  Less than 1,100 hp6 — — — 6 
Logistics Services:Logistics Services:Logistics Services:
Dry-cargo bargesDry-cargo barges25  2  —  6  33  Dry-cargo barges25 2 — 6 33 
660  60  271  488  1,479  660 60 271 488 1,479 

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Witt O'Brien's
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
United StatesUnited States21,074  94  32,640  99  United States18,899 92 22,640 93 60,904 95 78,458 97 
ForeignForeign1,432  6  303  1  Foreign1,619 8 1,705 7 3,293 5 2,583 3 
22,506  100  32,943  100  20,518 100 24,345 100 64,197 100 81,041 100 
Costs and Expenses:Costs and Expenses:Costs and Expenses:
OperatingOperating15,691  70  21,772  66  Operating12,793 62 16,323 67 41,588 65 53,786 67 
Administrative and generalAdministrative and general7,679  34  6,402  19  Administrative and general4,913 24 5,718 23 17,553 27 18,951 23 
Depreciation and amortizationDepreciation and amortization259  1  206  1  Depreciation and amortization359 2 210 1 974 2 625 1 
23,629  105  28,380  86  18,065 88 22,251 91 60,115 94 73,362 91 
Operating Income (Loss)(1,123) (5) 4,563  14  
Gains on Asset DispositionsGains on Asset Dispositions— — 10 — — — 10 — 
Operating IncomeOperating Income2,453 12 2,104 9 4,082 6 7,689 9 
Other Income:Other Income:Other Income:
Foreign currency gains, net12  —  —  —  
Foreign currency losses, netForeign currency losses, net(18)— — — (15)— — — 
Other, netOther, net70  —  (3) —  Other, net— — (1)— 70 — (6)— 
Equity in Losses of 50% or Less Owned Companies, Net of Tax(8) —  (67) —  
Segment Profit (Loss)(1,049) (5) 4,493  14  
Equity in Earnings of 50% or Less Owned Companies, Net of TaxEquity in Earnings of 50% or Less Owned Companies, Net of Tax130 1 764 3 378 1 569 1 
Segment ProfitSegment Profit2,565 13 2,867 12 4,515 7 8,252 10 
Current Year Quarter compared with Prior Year Quarter
Operating Revenues.Operating revenues were $10.4$3.8 million lower primarily due to the successful completion of major task orders related to long-term recovery programs in the U.S. Virgin Islands and the conclusion of disaster response work for multiple city and county governments.governments, partially offset by new contracts in support of clients' COVID-19 pandemic responses.
Operating Expenses. Operating expenses were $6.1$3.5 million lower primarily due to the completion of major recovery program task orders.
Administrative and General.Administrative and general expenses were $1.3$0.8 million lower primarily due to lower accruals for gross receipts taxes in the U.S. Virgin Islands as a large portion of work was being performed off-island and lower travel and entertainment expenses as a consequence of the COVID-19 pandemic, partially offset by higher project labor costs.
Depreciation and Amortization. Depreciation and amortization expenses were $0.1 million higher primarily due to the amortization of intangible assets arising from a business acquisition during the first quarter of 2020.
Operating Income. Operating income as a percentage of operating revenues was 12% in the Current Year Quarter compared with 9% in the Prior Year Quarter primarily due to reduced administrative and general expenses partially offset by higher depreciation and amortization charges.
Equity in Earnings of 50% or Less Owned Companies, Net of Tax. Equity in earnings of 50% or less owned companies, net of tax, were lower due to a decline in operating results in Witt O'Brien's Brazilian joint venture.
Current Nine Months compared with Prior Nine Months
Operating Revenues. Operating revenues were $16.8 million lower primarily due to the successful completion of major task orders related to long-term recovery programs in the U.S. Virgin Islands and the conclusion of disaster response work for multiple city and county governments, partially offset by new contracts in support of clients' COVID-19 pandemic responses.
Operating Expenses. Operating expenses were $12.2 million lower primarily due to the completion of major recovery program task orders.
Administrative and General. Administrative and general expenses were $1.4 million lower primarily due to lower reserves for bad debts, lower travel and entertainment expenses as a consequence of the COVID-19 pandemic and lower compensation costs and reduced headcount, partially offset by an accrual of $1.4 million in the first quarter following a change in the application of the gross receipts tax in the U.S. Virgin Islands primarily relatingrelated to work completed in 2019 and 2018.
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Depreciation and Amortization. Depreciation and amortization expenses were $0.3 million higher primarily due to the amortization of intangible assets arising from a business acquisition during the first quarter of 2020.
Operating Income (Loss). Income.Operating lossincome as a percentage of operating revenues was 5%6% in the Current Year QuarterNine Months compared with operating income as a percentage of operating revenues of 14%9% in the Prior Year QuarterNine Months primarily due to reduced operating revenues, andan accrual of $1.4 million in the first quarter following a change in the application of the gross receipts tax accrual discussed above.in the U.S. Virgin Islands and higher depreciation and amortization charges.
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax. Equity in lossesearnings of 50% or less owned companies, net of tax, were lower due to improveda decline in operating results in the Company'sWitt O'Brien's Brazilian joint venture.
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Other
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000%$’000%$’000%$’000%$’000%$’000%
Operating Revenues:Operating Revenues:Operating Revenues:
United StatesUnited States2,399  100  1,801  100  United States2,069 100 1,635 100 6,266 100 5,582 100 
ForeignForeign—  —  4  —  Foreign— — — — — — — — 
2,399  100  1,805  100  2,069 100 1,635 100 6,266 100 5,582 100 
Costs and Expenses:Costs and Expenses:Costs and Expenses:
OperatingOperating1,847  77  1,253  69  Operating1,442 70 1,404 86 4,631 74 4,129 74 
Administrative and generalAdministrative and general1,124  47  839  47  Administrative and general706 34 846 52 2,707 43 2,522 45 
Depreciation and amortizationDepreciation and amortization619  26  489  27  Depreciation and amortization459 22 501 30 1,693 27 1,483 27 
3,590  150  2,581  143  2,607 126 2,751 168 9,031 144 8,134 146 
Gains on Asset DispositionsGains on Asset Dispositions60  3  —  —  Gains on Asset Dispositions— — 34 2 60 1 32 1 
Operating LossOperating Loss(1,131) (47) (776) (43) Operating Loss(538)(26)(1,082)(66)(2,705)(43)(2,520)(45)
Other Income:Other Income:
Other, net(1)
Other, net(1)
1 — — — 1 — — —
Equity in Losses of 50% or Less Owned Companies, Net of TaxEquity in Losses of 50% or Less Owned Companies, Net of Tax(52) (2) (90) (5) Equity in Losses of 50% or Less Owned Companies, Net of Tax(596)(29)(56)(4)(1,759)(28)(412)(8)
Segment Loss(1)
Segment Loss(1)
(1,183) (49) (866) (48) 
Segment Loss(1)
(1,133)(55)(1,138)(70)(4,463)(71)(2,932)(53)
_____________________
(1)Includes amounts attributable to both SEACOR and noncontrolling interests.
Operating Activities. The operating activities of Other primarily consists of the business activities of Cleancor.
Current Year Quarter compared with Prior Year Quarter
Operating Revenues. Operating revenues were $0.6$0.4 million higher primarily due to an increase inthe sale of equipment from inventory and higher fuel sales asrelated to a consequence of a pipeline interruption project and supplying fuel for an onshore oil and gas exploration project.
Operating Expenses. Operating expenses were $0.6 million higher primarily due to an increase in the cost of sales associated with the increase in fuel sales, and an increase in technical management and equipment rentals associated with the projects discussed above.
Administrative and General. Administrative and general expenses were $0.3 million higher primarily due to higher compensation costs associated with the expansion of the Company's sales force and higher business development expenses.
Depreciation and Amortization. Depreciation and amortization expenses were $0.1 million higher as a result of placing additional equipment into service.customer's fleet expansion.
Equity in Losses of 50% or Less Owned Companies, Net of Tax. The Company’s 50% or less owned companies included in Other primarily consist of general aviation services businesses in Asia and an agricultural commodity trading and logistics business. The increase in equity losses was primarily due to losses from VA&E.
Current Nine Months compared with Prior Nine Months
Operating Revenues. Operating revenues were $0.7 million higher primarily due to an increase in fuel sales to supply a pipeline interruption project, an onshore oil and gas exploration project and a customer's fleet expansion, and the sale of equipment from inventory.
Operating Expenses. Operating expenses were $0.5 million higher primarily due to an increase in the cost of sales associated with the increase in fuel sales volumes, and an increase in technical management and equipment rentals associated with the projects discussed above, partially offset by lower re-certification costs for certain equipment.
Depreciation and Amortization. Depreciation and amortization expenses were $0.2 million higher as a result of placing additional equipment into service partially offset by asset sales during the Current Nine Months.
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Equity in Losses of 50% or Less Owned Companies, Net of Tax. The Company’s 50% or less owned companies included in Other primarily consist of general aviation services businesses in Asia and an agricultural commodity trading and logistics business. The increase in equity losses was primarily due to losses from VA&E.
Corporate and Eliminations
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000$’000$’000$’000$’000$’000
Corporate ExpensesCorporate Expenses(6,368) (6,351) Corporate Expenses(5,535)(6,021)(17,547)(19,254)
EliminationsEliminations23  14  Eliminations22 (18)67 10 
Operating LossOperating Loss(6,345) (6,337) Operating Loss(5,513)(6,039)(17,480)(19,244)
Other Income (Expense):Other Income (Expense):Other Income (Expense):
Foreign currency losses, net(38) (7) 
Foreign currency gains (losses), netForeign currency gains (losses), net41 (44)19 (52)
Other, netOther, net—  10  Other, net297 1 976 10 

Corporate Expenses. Corporate expenses were $0.5 million lower in the Current Year Quarter compared with the Prior Year Quarter and were $1.7 million lower in the Current Nine Months compared with the Prior Nine Months. The reduction was primarily due to lower management bonus accruals.
Other, Net. During the second quarter, the Company reached an agreement with SEACOR Marine Holdings Inc. ("SEACOR Marine"), a consolidated subsidiary prior to its spin-off in 2017, to allow SEACOR Marine to carryback certain of its tax net operating losses ("NOLs") to tax years in which SEACOR Marine was part of the Company's consolidated tax group. The carrybacks are allowed as a result of the CARES Act. In exchange for allowing SEACOR Marine to carryback its NOLs, SEACOR Marine agreed to: deposit certain of the tax refunds into a controlled deposit account to cash collateralize certain guarantees the Company made on behalf of SEACOR Marine; prepay its sublease with the Company for office space; provide certain representations and warranties to the Company; and pay the Company a fee of $1.0 million. The Company recognized $0.3 million of the fee during the Current Year Quarter and $1.0 million during the Current Nine Months. As of September 30,
2020, the guarantees on behalf of SEACOR Marine totaled $10.4 million.
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Other Income (Expense) not included in Segment Profit (Loss)
Three Months Ended March 31,Three Months Ended September 30,Nine Months Ended September 30,
202020192020201920202019
$’000$’000$’000$’000$’000$’000
Interest incomeInterest income1,601  1,900  Interest income1,425 2,198 4,544 5,983 
Interest expenseInterest expense(4,470) (5,113) Interest expense(3,938)(4,816)(12,587)(14,832)
Debt extinguishment losses(319) (793) 
Debt extinguishment gains (losses), netDebt extinguishment gains (losses), net(254)(777)1,348 (2,073)
Marketable security gains (losses), netMarketable security gains (losses), net(104) 3,068  Marketable security gains (losses), net951 144 (567)16,496 
(3,292) (938) (1,816)(3,251)(7,262)5,574 
Interest income.Income. Interest income was lower in the Current Year Quarter was lower compared with the Prior Year Quarter primarily due to lower invested cash balances andinterest rates. Interest income was lower in the Current Nine Months compared with the Prior Nine months primarily due to lower interest rates partially offset by higher interest income from loans and advances to 50% or less owned companies.third party notes receivable.
Interest expense.Expense. Interest expense was lower in the Current Year Quarter was lower compared with the Prior Year Quarter and lower in the Current Nine Months compared with the Prior Nine Months primarily due to purchasesthe purchase and redemption of the Company's 3.0% Convertible Senior Notes, partially offset by an increase in interest expense from commitment fees and issue cost amortization on the SEACOR Revolving Credit Facility entered into on March 19, 2019.Notes.
Debt extinguishment losses.Extinguishment Gains (Losses), Net. Debt extinguishment losses of $0.3 million in the Current Year Quarter resultedare the result of the redemption of the remaining $34.5 million in principal amount of the Company’s 3.0% Convertible Senior Notes. Debt extinguishment gains, net in the Current Nine Months includes gains of $1.9 million from the purchase of $12.9 million in principal amount of the Company's 2.5% Convertible Senior Notes for $10.9 million partially offset by losses of $0.6 million from the purchase of $15.6 million in principal amount of the Company’sCompany's 3.0% Convertible Senior Notes for $15.4 million.million and the redemption of the remaining amount of the Company's 3.0% Convertible Senior Notes in the Current Nine Months. Debt extinguishment losses in the Prior Year Quarter resulted fromand Prior Nine Months are the result of the purchase of $24.0$18.2 million and $55.4 million in principal amount, respectively, of the Company’s 3.0% Convertible Senior Notes for $23.2 million.$18.1 million and $54.4 million, respectively.
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Marketable security gains (losses)Security Gains (Losses), net.Net. Marketable security gains (losses), net are related to marking-to-market athe Company's security portfolio primarily consisting of investments in energy, marine, transportation and other related businesses. In the Prior Year Quarter and Prior Nine Months, the most significant position was in Dorian LPG Ltd, which the Company sold during 2019.
Income Taxes
During the threenine months ended March 31,September 30, 2020, the Company’s effective income tax rate of 179.5%(78.0)% was higherlower than the statutory rate primarily due to a pre-tax loss, a benefit from a statutory change to the U.S. federal income tax code and income subject to tonnage tax, partially offset by subpart F income, non-deductible expenses, state taxes and foreign sourcedtaxes not creditable against U.S. income not subject to U.S. tax.taxes.
Liquidity and Capital Resources
General
The Company’s ongoing liquidity requirements arise primarily from working capital needs, capital commitments and its obligations to repay debt. The Company may use its liquidity to fund acquisitions, repurchase shares of SEACOR Common Stock for treasury, repurchase its outstanding notes or make other investments. Sources of liquidity are cash balances, marketable securities, cash flows from operations and availability under the Company's revolving credit facilities. From time to time, the Company may secure additional liquidity through asset sales or the issuance of debt, shares of Common Stock or common stock of its subsidiaries, preferred stock or a combination thereof.
As of March 31,September 30, 2020, the Company's capital commitments by year of expected payment were as follows (in thousands):
Remainder of 202020212022Total
Ocean Services$20,864  $30,993  $2,636  $54,493  
Inland Services6,318  —  —  6,318  
Other226  —  —  226  
$27,408  $30,993  $2,636  $61,037  
Subsequent to March 31, 2020, the Company committed to purchase additional equipment for $1.1 million.
Remainder of 202020212022Total
Ocean Services$8,424 $36,657 $2,636 $47,717 
Inland Services6,585 849 — 7,434 
Other128 — — 128 
$15,137 $37,506 $2,636 $55,279 
As of March 31,September 30, 2020, the Company had outstanding debt of $298.8$248.9 million, net of discounts and issuance costs, and letters of credit totaling $1.2$1.1 million with various expiration dates through 2027. As of September 30, 2020, the Company was in compliance with the various financial covenants associated with its credit facilities. In addition, as of March 31,September 30, 2020, the Company guaranteed payments on behalf of SEACOR Marine totaling $18.5$10.4 million, under certain sale-leaseback transactions, equipment financing and multi-employer pension obligations.transactions. The Company earns a fee from SEACOR Marine of 0.5% per annum on the amount of the obligations under these guarantees. These guarantees continue to be contingent obligations of the
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Company because the beneficiary of the guarantees did not release the Company from its obligations in connection with the spin-off of SEACOR Marine and decline as payments are made by SEACOR Marine on the underlying obligations. The Company earns a fee fromIn exchange for allowing SEACOR Marine of 0.5% per annum onto carryback its NOLs to periods prior to the amountspin-off, as permitted under the CARES Act, SEACOR Marine agreed to deposit certain of the obligations undertax refunds it will receive into a controlled deposit account to cash collateralize these guarantees.guarantee obligations.
As of March 31,September 30, 2020, the holders of the Company’s 3.0% Convertible Senior Notes ($34.5 million outstanding), 2.5% Convertible Senior Notes ($64.551.6 million outstanding) and 3.25% Convertible Senior Notes ($117.8 million outstanding) may require the Company to repurchase the notes on November 19, 2020, December 19, 2022 and May 15, 2025, respectively. The Company’s long-term debt maturities, assuming the holders of the aforementioned convertible senior notes require the Company to repurchase the notes on those dates, are as follows (in thousands):
Remainder of 2020Remainder of 2020$42,659  Remainder of 2020$2,708 
2021202110,857  202110,857 
2022202274,988  202262,118 
2023202310,368  202310,368 
2024202460,244  202460,244 
Years subsequent to 2024Years subsequent to 2024123,536  Years subsequent to 2024123,537 
$322,652  $269,832 

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SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire its Common Stock, 3.0% Convertible Senior Notes (which have been fully-extinguished), 2.5% Convertible Senior Notes and 3.25% Convertible Senior Notes, (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. As of March 31,September 30, 2020, the Company’s remaining repurchase authority for the Securities was $113.1$102.2 million.
As of March 31,September 30, 2020, the Company held balances of cash, cash equivalents, restricted cash, restricted cash equivalents and marketable securities totaling $85.2$106.7 million. Additionally, the Company had $225.0 million available under its revolving credit facilities.
Summary of Cash Flows
Three Months Ended March 31,Nine Months Ended September 30,
2020201920202019
$’000$’000$’000$’000
Cash Flows provided by Operating ActivitiesCash Flows provided by Operating Activities25,002  34,660  Cash Flows provided by Operating Activities68,690 95,255 
Cash Flows used in Investing ActivitiesCash Flows used in Investing Activities(7,218) (5,364) Cash Flows used in Investing Activities(12,444)(13,890)
Cash Flows used in Financing ActivitiesCash Flows used in Financing Activities(18,719) (32,370) Cash Flows used in Financing Activities(35,436)(150,483)
Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash EquivalentsEffects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(179) 6  Effects of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(120)(58)
Net Decrease in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(1,114) (3,068) 
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash EquivalentsNet Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents20,690 (69,176)
Operating Activities
Cash flows provided by operating activities decreased by $9.7$26.6 million in the Current Year QuarterNine Months compared with the Prior Year Quarter.Nine Months. The components of cash flows provided by (used in) operating activities during the Current Year QuarterNine Months and Prior Year QuarterNine Months were as follows:
Three Months Ended March 31,Nine Months Ended September 30,
2020201920202019
$’000$’000$’000$’000
Operating income before depreciation, amortization and gains on asset dispositions, netOperating income before depreciation, amortization and gains on asset dispositions, net17,247  35,667  Operating income before depreciation, amortization and gains on asset dispositions, net62,758 91,454 
Changes in operating assets and liabilities, excluding operating leases, before interest and income taxesChanges in operating assets and liabilities, excluding operating leases, before interest and income taxes5,741  (1,752) Changes in operating assets and liabilities, excluding operating leases, before interest and income taxes8,765 (40,840)
Purchases of marketable securitiesPurchases of marketable securities(228)(5,752)
Proceeds from sale of marketable securitiesProceeds from sale of marketable securities— 46,526 
Dividends received from 50% or less owned companiesDividends received from 50% or less owned companies100  —  Dividends received from 50% or less owned companies1,928 100 
Interest paid, excluding capitalized interest(1)
Interest paid, excluding capitalized interest(1)
(1,459) (1,646) 
Interest paid, excluding capitalized interest(1)
(7,527)(8,407)
Income taxes paid, net(89) (454) 
Income taxes refunded (paid), netIncome taxes refunded (paid), net(9,638)1,460 
OtherOther3,462  2,845  Other12,632 10,714 
Total cash flows provided by operating activitiesTotal cash flows provided by operating activities25,002  34,660  Total cash flows provided by operating activities68,690 95,255 
_____________________
(1)During the Current Year QuarterNine Months and Prior Year Quarter,Nine Months, interest paid and capitalized in property and equipment was immaterial.$0.2 million and $0.1 million, respectively.
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Operating income before depreciation, amortization and gains on asset dispositions, net was $18.4$28.7 million lower in the Current Year QuarterNine Months compared with the Prior Year Quarter.Nine Months. See “Consolidated Results of Operations” included aboveherein for a discussion of the results of each of the Company’s business segments.
Proceeds from the sale of marketable securities in the Prior Nine Months was primarily due to the sale of all of the Company's investment in Dorian LPG Ltd.
Investing Activities
During the Current Year Quarter,Nine Months, net cash used in investing activities was $7.2$12.4 million primarily as follows:
•Capital expenditures were $6.4$16.3 million primarily related primarily to progress payments toward the construction of four U.S.-flag harbor tugs and the purchase of machinery and equipment.
•The Company sold 39 inland river dry-cargo barges and other equipment for net proceeds of $9.6 million.
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•The Company made investments in and advances to 50% or less owned companies of $6.1 million including $4.4 million to RF Vessel Holdings, $1.2 million to VA&E and $0.5 million to Golfo de Mexico.
•The Company received $0.9 million from its 50% or less owned company VA&E.
•The Company acquired Helix Media Pte. Ltd., NaviateNavigate Response (Asia) Pte. Ltd., Navigate PR Ltd. and Navigate Response Limited (collectively "Navigate") for a. The purchase price consisted of $1.0 million in cash, net of cash acquired of $0.8 million, paid at the closing of the acquisition and $1.8 million of contingent consideration that is payable upon Navigate meeting certain specified cash collection and client retention targets for the 24 months following the acquisition date.acquisition.
During the Prior Year Quarter,Nine Months, net cash used in investing activities was $5.4$13.9 million primarily as follows:
•Capital expenditures were $5.6$17.4 million related to the acquisition of real property, upgrades to inland river towboats and the construction of other Inland Services equipment.
•The Company sold one foreign-flag short-sea container/RORO vessel and other equipment for net proceeds of $1.9 million.
•The Company made investments in and advances to 50% or less owned companies of $3.2 million including $2.7 million to RF Vessel Holdings and $0.5 million to VA&E.
•The Company received $3.7 million from its 50% or less owned company VA&E.
•The Company received net payments on third-party leases and notes receivables of $0.2$1.1 million.
Financing Activities
During the Current Year Quarter,Nine Months, net cash used in financing activities was $18.7$35.4 million. The Company:
•purchased $15.6 million in principal amount of its 3.0% Convertible Senior Notes for total consideration of $15.4 million;
•redeemed the remaining $34.5 million in principal amount of its 3.0% Convertible Senior Notes for total consideration of $34.5 million;
•purchased $12.9 million in principal amount of its 2.5% Convertible Senior Notes for total consideration of $10.9 million;
•made scheduled repayments of $2.5$7.5 million under the SEA-Vista 2019 Credit Facility;
•made other scheduled paymentsrepayments on long-term debt of $0.2$0.7 million;
•received proceeds of $33.7 million from the "failed" sale leaseback of three U.S.-flag harbor tugs;
•made payments on other long-term financial liabilities of $0.5 million;
•acquired 41,600 shares of Common Stock for treasury for an aggregate purchase price of $1.4 million;
•acquired 17,144 shares of Common Stock for treasury for an aggregate purchase price of $0.5 million from its employees to cover their tax withholding obligations related to the vesting of equity awards. These shares were purchased in accordance with the terms of the Company’s Share Incentive Plans and not pursuant to the repurchase authorizations for its Securities granted by SEACOR’s Board of Directors; and
•received $1.4$2.4 million from share award plans.
During the Prior Year Quarter,Nine Months, net cash used in financing activities was $32.4$150.5 million. The Company:
•purchased $24.0$55.4 million in principal amount of its 3.0% Convertible Senior Notes for $23.2 million;total consideration of $54.4 million of which $54.2 million was allocated to the debt and $0.1 million was allocated to the purchase of the conversion option embedded in the 3.0% Convertible Senior Notes;
•borrowed $25.0 million under the SEACOR Revolving Credit Facility and incurred issuance costs of $2.2 million related to the SEACOR Revolving Credit Facility;million;
•repaid $8.0$12.0 million under the SEA-Vista 2015 Credit Facility;
•made other scheduled payments on long-term debt of $0.2$0.5 million;
•made distributions to noncontrolling interests of $0.2$5.2 million;
•acquired 3,912 shares of Common Stock for treasury for an aggregate purchase price of $0.1 million;
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•acquired 8,121 shares of Common Stock for treasury for an aggregate purchase price of $0.4 million from its employees to cover their tax withholding obligations related to the vesting of equity awards. These shares were purchased in accordance with the terms of the Company’s Share Incentive Plans and not pursuant to the repurchase authorizations for its Securities granted by SEACOR’s Board of Directors; and
•received $1.7$6.9 million from share award plans.plans; and

•
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Tablebecame the sole owner of Contentsthe SEA-Vista joint venture on August 2, 2019 by acquiring the Remaining SEA-Vista Interest for $107.7 million in cash, inclusive of expenses related to the transaction.
Short and Long-Term Liquidity Requirements
The Company anticipates it will continue to generate positive cash flows from operations and that these cash flows will be adequate to meet the Company’s working capital requirements. In supportsupport of the Company’s capital expenditure program and debt service requirements, the Company believes that a combination of cash balances on hand, cash generated from operating activities, fundingavailability under the Company's revolving credit facilities and access to the credit and capital markets will provide sufficient liquidity to meet its obligations. The Company continually evaluates possible acquisitions and dispositions of certain businesses and assets. The Company’s sources of liquidity may be impacted by the general condition of the markets in which it operates and the broader economy as a whole, which may limit its access to the credit and capital markets on acceptable terms. To date, the COVID-19 pandemic has not had a material impact on the Company's liquidity. Management will continue to closely monitor the Company’s liquidity and the credit and capital markets generally and more specifically as it relates to the COVID-19 pandemic.
Off-Balance Sheet Arrangements
For a discussion of the Company's off-balance sheet arrangements, refer to “Liquidity and Capital Resources” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. There has been no material change in the Company’s off-balance sheet arrangements during the Current Year Quarter.Nine Months. As of March 31,September 30, 2020, the Company guaranteed payments on behalf of SEACOR Marine totaling $18.5$10.4 million, under certain sale-leaseback transactions, equipment financing and multi-employer pension obligations.transactions. These guarantees will decline as payments are made on the underlying obligations.
Contractual Obligations and Commercial Commitments
For a discussion of the Company's contractual obligations and commercial commitments, refer to “Liquidity and Capital Resources” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. There has been no material change in the Company’s contractual obligations and commercial commitments during the Current Year Quarter.Nine Months.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For a discussion of the Company’s exposure to market risk, refer to Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. There has been no material change in the Company’s exposure to market risk during the Current Year Quarter.Nine Months.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
With the participation of the Company’s principal executive officer and principal financial officer, management evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of March 31,September 30, 2020. Based on their evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of March 31,September 30, 2020.
The Company’s disclosure controls and procedures have been designed to ensure that information required to be disclosed by the Company in the reports it files or furnishes under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosures. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those internal control systems determined to be effective can provide only a level of reasonable assurance with respect to financial statement preparation and presentation.
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Changes in Internal Control Over Financial Reporting
There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the three months ended March 31,September 30, 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For a description of developments with respect to pending legal proceedings described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, see Note 14.15. “Commitments and Contingencies” included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.
ITEM 1A. RISK FACTORS
For a discussion of the Company’s risk factors, refer to Item 1A. “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. There have been no material changes in the Company’s risk factors during the Current Year Quarter.Nine Months.
The COVID-19 outbreak has and will likely continue to negatively affect the global economy and could have a material adverse effect on the Company's businesses, results of operations and financial condition.
The Company's operations are susceptible to global events that could have an adverse effect on its businesses, results operations and financial condition, such as the novel COVID-19 virus (“coronavirus”) pandemic. As of the date of this report, the coronavirus has spread throughout most of the world and has caused many governments to implement various types of stay-at-home orders, quarantines and significant restrictions on travel. Many of these governments have also implemented work restrictions that prohibit many employees from going to their customary work locations and which require these employees to work remotely if possible or not at all if working remotely is not possible. These restrictions have affected the Company's customers and may continue to affect its customers in the future, which may affect the demand for the Company's services.
AlthoughWhile the coronavirusCOVID-19 pandemic has not to date had a materialan adverse effect on the Company's businesses, it is a dynamic and continuously evolving phenomenon and the ultimate severity of the outbreak and the resulting effect on the Company's businesses is uncertain at this time. If the pandemic worsens, or additional restrictions are implemented to contain the outbreak or previous restrictions are re-implemented due to increases in infection rates, the Company may experience a material and adverse effect on its business, results of operationsoperation and financial condition.
The Company’s operation and workforce faces risks related to the COVID-19 pandemic, which could significantly disrupt the Company’s operations. The COVID-19 pandemic may affect the health of the Company’s workforce, and international, national and local government interventions enacted to reduce the spread of COVID-19 may render the Company’s employees unable to work or travel. Although the Company’s workforce is largely considered to be “essential” under guidance issued by the U.S. Cybersecurity and Infrastructure Security Agency, work, travel and other restrictions may vary in other regions of the world in which the Company has operations. Similarly, if the COVID-19 pandemic were to impact a location where the Company has a high concentration of business and resources, its workforce could be affected by the outbreak, which could also significantly disrupt operations and the ability to provide services.
The duration and severity of the business disruption and related financial impact from the COVID-19 pandemic cannot be reasonably estimated at this time. If the impact of the COVID-19 pandemic continues for an extended period of time, not only could it materially adversely affect the demand for the Company’s services but also the ability to provide such services, either of which could have a material adverse effect on each company’s business.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(c)    This table provides information with respect to purchases by the Company of shares of its Common Stock during the Current Year Quarter:
Period
Total Number Of
Shares
Purchased(1)
Average Price  Paid
Per Share		Total Number of Shares
Purchased as Part of
Publicly  Announced
Plans or Programs
Maximum Value of
Securities that may Yet be
Purchased under the
Plans or Programs(1)
Jan 1 – 31, 2020—  $—  —  $127,689,657  
February 1 –29, 2020—  $—  —  $127,689,657  
March 1 – 31, 202041,600  $33.21  41,600  $113,107,086  
______________________
Period
Total Number Of
Shares
Purchased(1)
Average Price  Paid
Per Share		Total Number of Shares
Purchased as Part of
Publicly  Announced
Plans or Programs
Maximum Value of
Securities that may Yet be
Purchased under the
Plans or Programs
July 1 – 31, 2020— $— — $102,157,511 
August 1 –31, 2020— $— — $102,157,511 
September 1 – 30, 2020— $— — $102,157,511 
(1)SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire its Common Stock, 3.0% Convertible Senior Notes, 3.25% Convertible Senior Note and 2.5% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. During the Current Year Quarter, the Company purchased $15.6 million in principal amount of its 3.0% Convertible Senior Notes for $15.4 million thereby reducing repurchase authority under the plan.
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
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Not applicable.
ITEM 5. OTHER INFORMATION
None.
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ITEM 6. EXHIBITS
31.1*
31.2*
32.1*
32.2*
101The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31,September 30, 2020, formatted in Inline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Balance Sheets, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31,September 30, 2020, formatted in Inline XBRL (included as Exhibit 101).
______________________
*Filed herewith.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SEACOR Holdings Inc. (Registrant)
DATE:April 28,October 29, 2020By:
/S/ CHARLES FABRIKANT
Charles Fabrikant, Executive Chairman of the Board and Chief Executive Officer
(Principal Executive Officer)
DATE:April 28,October 29, 2020By:
/S/ BRUCE WEINS
Bruce Weins, Senior Vice President
and Chief Financial Officer
(Principal Financial Officer)

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