INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2015

INVESTMENT IN TERMINAL JOINT VENTURE

INVESTMENT IN TERMINAL JOINT VENTURE

4.INVESTMENT IN TERMINAL JOINT VENTURE

The Company accounts for its 35 percent ownership interest in the related party Terminal Joint Venture using the equity method of accounting.  The Company records its share of income or 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 Ocean Transportation business.  The Company’s investment in the Terminal Joint Venture was $66.4 million and $64.4 million at December 31, 2015 and 2014, respectively.

The Company’s share of income or loss recorded in the Consolidated Statements of Income and Comprehensive Income, and dividends received by the Company during the years ended December 31, 2015, 2014 and 2013 is as follows (in millions):

	Years Ended December 31,
Terminal Joint Venture	2015		2014		2013
Company Share of Net Income (Loss)	$	16.5	$	6.6	$	(2.0	)
Distributions Received	14.0		—		—

The Company’s Ocean Transportation segment operating costs include $174.1 million, $164.8 million and $164.3 million, for 2015, 2014 and 2013, respectively, for terminal services provided by SSAT.  Accounts payable and accrued liabilities in the consolidated balance sheets include $19.5 million and $17.5 million for terminal services payable to the Terminal Joint Venture at December 31, 2015 and 2014, respectively.

A summary of unaudited financial information for the Terminal Joint Venture at December 31, 2015 and 2014 is as follows (in millions):

	As of December 31,
Balance Sheet (Unaudited)	2015		2014
Current assets	$	107.0	$	80.7
Noncurrent assets	121.2		140.9
Total Assets	$	228.2	$	221.6
Current liabilities	$	42.0	$	40.9
Noncurrent liabilities	9.4		7.1
Equity	176.8		173.6
Total Liabilities and Equity	$	228.2	$	221.6

	Years Ended December 31,
Statement of Operations (Unaudited)	2015		2014			2013
Operating revenue	$	621.0	$	586.2		$	498.4
Operating costs and expenses	610.2		589.7			517.4
Operating income (loss)	10.8		(3.5		)	(19.0		)
Net Income (Loss) (1)	$	44.9	$	21.2		$	(5.7	)

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