DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2013

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

3.            DISCONTINUED OPERATIONS

There were no discontinued operations during the year ended December 31, 2013. Loss from discontinued operations for the years ended December 31, 2012 and 2011, consisted of the following (in millions):

	Years Ended December 31,
	2012			2011
Discontinued operations, net of income taxes:
Income from A&B	$	116.4		$	274.7
Expenses from A&B	(118.1		)	(243.5		)
Tax expense from A&B	(1.6		)	(7.2		)
(Loss) income from A&B	(3.3		)	24.0
Income from CLX2	—			92.7
Expenses from CLX2	(4.4		)	(149.4		)
Tax benefit from CLX2	1.6			21.1
Loss from discontinued operations, net of tax	$	(6.1	)	$	(11.6	)

The Separation from A&B was completed on June 29, 2012 and is further discussed in Note 1.  In the third quarter of 2011, the Company terminated its second China Long Beach Express Service (“CLX2”), due to the longer-term outlook for sustained high fuel prices and increasingly volatile Transpacific rates.  As of the termination date, the Company had established and approved plans to (i) return to the lessors or sub-charter the five vessels used in the service (ii) off-hire or dispose of certain excess container equipment and (iii) terminate office contracts and employees.  These plans were substantially completed as of September 30, 2011; however, the off-hiring of excess leased containers continued through 2012 and two of the five ships were offered for sub-charter until they were returned to the lessors in July 2012.  The remaining three ships were returned to the lessors as of September 30, 2011 pursuant to the terms of the one-year charter contracts.  As of December 31, 2012, the Company had no future liabilities related to CLX2 and the Company did not incur any additional losses from the discontinued operations during 2013.

The following table provides information regarding liabilities associated with the termination of CLX2 (in millions):

	Containers and Charter Liabilities			Other Contractual Liabilities			Total
Balance at December 31, 2011	$	4.8		$	0.1		$	4.9
Expenses incurred	4.5			0.0			4.5
Amounts paid	(9.3		)	(0.1		)	(9.4		)
Balance at December 31, 2012	$	—		$	—		$	—