INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2014

INVESTMENT IN TERMINAL JOINT VENTURE

INVESTMENT IN TERMINAL JOINT VENTURE

3.INVESTMENT IN TERMINAL JOINT VENTURE

The Company accounts for its 35 percent ownership interest in the Terminal Joint Venture under the equity method of accounting.  The Company records its share of income (loss) in the Terminal Joint Venture in operating expenses within the Ocean Transportation segment, due to operations of the Terminal Joint Venture being an integral part of the Company’s business.  The Company’s investment in the Terminal Joint Venture was $64.4 million and $57.6 million at December 31, 2014 and 2013, respectively.

No dividends and distributions were received from the Terminal Joint Venture in 2014, 2013 or 2012.  The Company’s operating costs include $164.8 million, $164.3 million and $163.8 million, for 2014, 2013 and 2012, respectively, for terminal services provided by SSAT.  Accounts payable and accrued liabilities in the consolidated balance sheets include $17.5 million and $15.3 million for terminal services payable to the Terminal Joint Venture at December 31, 2014 and 2013, respectively.

A summary of financial information for the Terminal Joint Venture at December 31, 2014 and 2013 is as follows (in millions):

	As of December 31,
Balance Sheet	2014		2013
Current assets	$	80.7	$	73.5
Noncurrent assets	140.9		137.1
Total Assets	$	221.6	$	210.6
Current liabilities	$	40.9	$	43.2
Noncurrent liabilities	7.1		15.7
Equity	173.6		151.7
Total Liabilities and Equity	$	221.6	$	210.6

	Years Ended December 31,
Statement of Operations	2014			2013			2012
Operating revenue	$	586.2		$	498.4		$	503.9
Operating costs and expenses	589.7			517.4			506.4
Operating loss	(3.5		)	(19.0		)	(2.5		)
Net Income (Loss) (1)	$	21.2		$	(5.7	)	$	9.5
Company Share of Net Income (Loss)	$	6.6		$	(2.0	)	$	3.2

(1) Includes earnings from equity method investments held by the Terminal Joint Venture.