COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

14.COMMITMENTS AND CONTINGENCIES

Commitments and Contingencies: Commitments and financial arrangements, excluding lease commitments (see Note 9), and pension and post-retirement plan commitments (see Note 11), include the following as of December 31, 2015 (in millions):

Commitments and financial arrangements	Total
Standby letters of credit (1)	$	11.0
Bonds (2)	$	32.8
Benefit plan withdrawal obligations (3)	$	216.8
Capital expenditure obligations (4)	$	408.9

(1)

Letters of credit are required for the Company’s uninsured workers’ compensation and other insurance programs, and other needs.

(2)

Bonds are required for the U.S. Customs and other related matters.

(3)

Represents the withdrawal liabilities as of the most recent valuation dates for multiemployer pension plans, in which the Company is a participant. Management has no present intention of withdrawing from, and does not anticipate the termination of, any of the aforementioned plans.

(4)

Capital expenditure obligations includes contractual progress payments related to the construction of two new vessels based upon the shipbuilding agreements with Philly Shipyard, and other capital expenditure obligations.

These amounts are not recorded on the Company’s consolidated balance sheets and it is not expected that the Company or its subsidiaries will be called upon to advance funds under these commitments.

Litigation: The Company’s Ocean Transportation business has certain other risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations.

The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.