REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2014

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

10.REPORTABLE SEGMENTS

The Company consists of two segments, ocean transportation and logistics, which are further described in Note 1.  Reportable segments are measured based on operating income, exclusive of interest expense and income taxes.  In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service.

Segment results for the three and nine-month periods ended September 30, 2014 and 2013 were as follows (in millions):

	Three-Months Ended September 30						Nine-Months Ended September 30
	2014			2013			2014			2013
Revenue:
Ocean transportation	$	329.5		$	310.1		$	945.2		$	920.0
Logistics	112.3			104.9			325.5			306.3
Total revenue	$	441.8		$	415.0		$	1,270.7		$	1,226.3
Operating Income:
Ocean transportation	$	42.6		$	25.5		$	84.8		$	78.3
Logistics	2.4			1.7			5.8			4.1
Total operating income	45.0			27.2			90.6			82.4
Interest expense, net	(4.4		)	(3.6		)	(13.0		)	(10.9		)
Income before income taxes	40.6			23.6			77.6			71.5
Income taxes	(19.1		)	(6.4		)	(34.6		)	(25.1		)
Net income	$	21.5		$	17.2		$	43.0		$	46.4