6. Bareboat Lease Receivable, Net On January 30, 2009, National Chemical Carriers Ltd. Co. signed agreements with Odfjell to charter three vessels under a bareboat arrangement for a period of ten years with a purchase option after three years. These ships were delivered to Odfjell on February 1, 2009. The arrangement is considered as a finance lease as it transfers to Odfjell substantially all the benefits and risks and also gives Odfjell a purchase option under the arrangement. The net bareboat lease receivable balance as of December 31 is summarized as follows: Description 2013 2012 Future minimum lease collections 354,105 411,418 Unguaranteed residual value at the end of the lease term 247,875 247,875 601,980 659,293 Unearned income (207,301) (254,471) Net bareboat lease receivable balance 394,679 404,822 The above amount is classified at December 31 as follows Current portion 15,256 10,143 Non-current portion 379,423 394,679 Net bareboat lease receivable balance 394,679 404,822 The National Shipping Company of Saudi Arabia (A Saudi Joint Stock Company) Notes To The Consolidated Financial Statements December 31, 2013 (In Thousands Saudi Riyals)
The future minimum lease collections and unguaranteed residual value at the end of lease term to be received during the next five years and thereafter are as follows:
2013
2012
Due within one year
61,245
57,313
Due within 1-2 years
65,351
61,245
Due within 2-3 years
69,649
65,351
Due within 3-4 years
73,564
69,649
Due within 4-5 years
77,670
73,564
Thereafter
254,501
332,171
601,980
659,293
Income related to the above arrangement for the year ended December 31, 2013 amounted to SR 47.11 million (2012: SR 48.05 million) and is included in operating revenues in the consolidated statement of income.
7. Prepaid Expenses and Other Receivables
2013
2012
Prepaid expenses
57,949
58,997
Advances to suppliers
9,579
7,453
Insurance claims
4,303
15,469
Employee receivables
3,132
5,267
Due from related parties (note 19)
-
50,066
Others
4,653
4,448
79,616
141,700
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