REPORTABLE SEGMENTS

6 Months Ended

Jun. 30, 2016

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

9.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.

Reportable segment results for the three and six months ended June 30, 2016 and 2015 were as follows (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Operating Revenue:
Ocean Transportation	$	370.9	$	346.7	$	737.0	$	652.2
Logistics		96.8		100.9		184.9		193.6
Total Operating Revenue	$	467.7	$	447.6	$	921.9	$	845.8
Operating Income:
Ocean Transportation	$	33.9	$	31.4	$	66.9	$	75.3
Logistics		2.2		2.3		3.8		3.3
Total Operating Income		36.1		33.7		70.7		78.6
Interest expense, net		(6.5)		(4.6)		(11.4)		(8.9)
Income before Income Taxes		29.6		29.1		59.3		69.7
Income taxes		(11.6)		(19.2)		(23.2)		(34.8)
Net Income	$	18.0	$	9.9	$	36.1	$	34.9