REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2015

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

15.REPORTABLE SEGMENTS

Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  The Company’s chief operating decision maker is its Chief Executive Officer.

The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1.  Reportable segments are measured based on operating profit, exclusive of interest expense, general corporate expenses, 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.  The Company’s Terminal Joint Venture segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of the Terminal Joint Venture being an integral part of the Company’s Ocean Transportation business and has similar economic characteristics (see Note 4).

Reportable segment information for 2015, 2014, and 2013 is summarized below (in millions):

	Years Ended December 31,
	2015			2014			2013
Revenue:
Ocean Transportation	$	1,498.0		$	1,278.4		$	1,229.4
Logistics	386.9			435.8			407.8
Total Revenue	$	1,884.9		$	1,714.2		$	1,637.2
Operating Income:
Ocean Transportation (1)	$	187.8		$	131.1		$	94.3
Logistics	8.5			8.9			6.0
Total Operating Income	196.3			140.0			100.3
Interest expense, net	(18.5		)	(17.3		)	(14.4		)
Income before Income Taxes	177.8			122.7			85.9
Income taxes	(74.8		)	(51.9		)	(32.2		)
Net Income	$	103.0		$	70.8		$	53.7

(1) The Ocean Transportation segment includes $16.5 million, $6.6 million and $(2.0) million of equity in income (loss) from the Company’s Terminal Joint Venture, SSAT, for 2015, 2014, and 2013, respectively.

	As of December 31,
	2015		2014		2013
As of December 31:
Identifiable Assets:
Ocean Transportation (2)	$	1,601.0	$	1,313.9	$	1,168.6
Logistics	68.8		87.9		79.7
Total Assets	$	1,669.8	$	1,401.8	$	1,248.3
Capital Expenditures:
Ocean Transportation	$	67.5	$	27.8	$	33.8
Logistics	0.3		0.1		1.4
Total Capital Expenditures	$	67.8	$	27.9	$	35.2
Depreciation and Amortization:
Ocean Transportation	$	81.4	$	66.6	$	66.4
Logistics	2.0		3.1		3.3
Total Depreciation and Amortization	$	83.4	$	69.7	$	69.7

(2) The Ocean Transportation segment includes $66.4 million, $64.4 million and $57.6 million related to the Company’s Terminal Joint Venture equity investment in SSAT as of December 31, 2015, 2014, and 2013, respectively.