REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2015

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

9.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 months ended September 30, 2015 and 2014 were as follows (in millions):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2015			2014			2015			2014
Revenue:
Ocean Transportation	$	444.8		$	329.5		$	1,097.0		$	945.2
Logistics	99.5			112.3			293.1			325.5
Total Revenue	$	544.3		$	441.8		$	1,390.1		$	1,270.7
Operating Income:
Ocean Transportation	$	68.9		$	42.6		$	144.2		$	84.8
Logistics	2.9			2.4			6.2			5.8
Total Operating Income	71.8			45.0			150.4			90.6
Interest expense, net	(4.7		)	(4.4		)	(13.6		)	(13.0		)
Income before Income Taxes	67.1			40.6			136.8			77.6
Income taxes	(25.6		)	(19.1		)	(60.4		)	(34.6		)
Net Income	$	41.5		$	21.5		$	76.4		$	43.0