10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2015

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file no. 1-7615

Kirby Corporation

(Exact name of registrant as specified in its charter)

Nevada	74-1884980
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
55 Waugh Drive, Suite 1000
Houston, Texas	77007
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(713) 435-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock — $.10 Par Value Per Share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of common stock held by nonaffiliates of the registrant as of June 30, 2015, based on the closing sales price of such stock on the New York Stock Exchange on June 30, 2015, was $4,137,884,000. For purposes of this computation, all executive officers, directors and 10% beneficial owners of the registrant are deemed to be affiliates. Such determination should not be deemed an admission that such executive officers, directors and 10% beneficial owners are affiliates.

As of February 19, 2016, 53,806,000 shares of common stock were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

The Company’s definitive proxy statement in connection with the Annual Meeting of Stockholders to be held April 26, 2016, to be filed with the Commission pursuant to Regulation 14A, is incorporated by reference into Part III of this report.

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KIRBY CORPORATION2015 FORM 10-KTABLE OF CONTENTS

		Page
PART I
	Item 1. Business	4
THE COMPANY		4
Documents and Information Available on Web Site		4
BUSINESS AND PROPERTY		5
MARINE TRANSPORTATION		6
Marine Transportation Industry Fundamentals		7
Inland Tank Barge Industry		7
Coastal Tank Barge Industry		8
Competition in the Tank Barge Industry		9
Products Transported		9
Demand Drivers in the Tank Barge Industry		10
Marine Transportation Operations		11
Contracts and Customers		14
Employees		14
Properties		15
Governmental Regulations		15
Environmental Regulations		16
DIESEL ENGINE SERVICES		18
Marine Operations		18
Marine Customers		19
Marine Competitive Conditions		19
Power Generation Operations		19
Power Generation Customers		20
Power Generation Competitive Conditions		20
Land-Based Operations		20
Land-Based Customers		21
Land-Based Competitive Conditions		21
Employees		21
Properties		21
Executive Officers of the Registrant		22
	Item 1A. Risk Factors	24
	Item 1B. Unresolved Staff Comments	30
	Item 2. Properties	30
	Item 3. Legal Proceedings	30
	Item 4. Mine Safety Disclosures	32
PART II
	Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	33
	Item 6. Selected Financial Data	34
	Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
	Item 7A. Quantitative and Qualitative Disclosures about Market Risk	57
	Item 8. Financial Statements and Supplementary Data	57
	Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	57
	Item 9A. Controls and Procedures	57
PART III
	Items 10 Through 14	58
PART IV
	Item 15. Exhibits and Financial Statement Schedules	92

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PART I

Item 1. Business

THE COMPANY

Kirby Corporation (the “Company”) is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts, and in Alaska and Hawaii. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. The Company also operates six offshore dry-bulk barges and seven offshore tugboats transporting dry-bulk commodities in the United States coastal trade. Through its diesel engine services segment, the Company provides after-market services for medium-speed and high-speed diesel engines, reduction gears and ancillary products for marine and power generation applications, distributes and services high-speed diesel engines, transmissions and pumps, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based oilfield service and oil and gas operator and producer markets.

Unless the context otherwise requires, all references herein to the Company include the Company and its subsidiaries.

The Company’s principal executive office is located at 55 Waugh Drive, Suite 1000, Houston, Texas 77007, and its telephone number is (713) 435-1000. The Company’s mailing address is P.O. Box 1745, Houston, Texas 77251-1745.

Documents and Information Available on Web Site

The Internet address of the Company’s web site is http://www.kirbycorp.com. The Company makes available free of charge through its web site, all of its filings with the Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as soon as reasonably practicable after they are electronically filed with or furnished to the SEC.

The following documents are available on the Company’s web site in the Investor Relations section under Corporate Governance:

● Audit Committee Charter

● Compensation Committee Charter

● Governance Committee Charter

● Business Ethics Guidelines

● Corporate Governance Guidelines

The Company is required to make prompt disclosure of any amendment to or waiver of any provision of its Business Ethics Guidelines that applies to any director or executive officer or to its chief executive officer, chief financial officer, chief accounting officer or controller or persons performing similar functions. The Company will make any such disclosure that may be necessary by posting the disclosure on its web site in the Investor Relations section under Corporate Governance.

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BUSINESS AND PROPERTY

The Company, through its subsidiaries, conducts operations in two business segments: marine transportation and diesel engine services.

The Company, through its marine transportation segment, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts, and in Alaska and Hawaii. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. The Company operates offshore dry-bulk barge and tugboat units engaged in the offshore transportation of dry-bulk cargoes in the United States coastal trade. The segment is a provider of transportation services for its customers and, in almost all cases, does not assume ownership of the products that it transports. All of the Company’s vessels operate under the United States flag and are qualified for domestic trade under the Jones Act.

The Company, through its diesel engine services segment, sells genuine replacement parts, provides service mechanics to overhaul and repair medium-speed and high-speed diesel engines, transmissions, reduction gears and pumps, maintains facilities to rebuild component parts or entire medium-speed and high-speed diesel engines, transmissions and reduction gears, and manufactures and remanufactures oilfield service equipment, including pressure pumping units. The Company primarily services the marine, power generation and the land-based oilfield service and oil and gas operator and producer markets.

The Company and its marine transportation and diesel engine services segments have approximately 4,200 employees, substantially all of whom are in the United States.

The following table sets forth by segment the revenues, operating profits and identifiable assets attributable to the principal activities of the Company for the years indicated (in thousands):

	2015			2014			2013
Revenues from unaffiliated customers:
Marine transportation	$	1,663,090		$	1,770,684		$	1,713,167
Diesel engine services		484,442			795,634			529,028
Consolidated revenues	$	2,147,532		$	2,566,318		$	2,242,195
Operating profits:
Marine transportation	$	374,842		$	429,864		$	408,255
Diesel engine services		18,921			60,063			42,767
General corporate expenses		(14,773	)		(14,896	)		(15,728	)
Gain on disposition of assets		1,672			781			888
		380,662			475,812			436,182
Equity in earnings of affiliates		451			384			348
Other income (expense)		(663	)		(345	)		20
Interest expense		(18,738	)		(21,461	)		(27,872	)
Earnings before taxes on income	$	361,712		$	454,390		$	408,678
Identifiable assets:
Marine transportation	$	3,451,553		$	3,317,696		$	3,046,692
Diesel engine services		637,549			736,129			576,472
		4,089,102			4,053,825			3,623,164
Investment in affiliates		2,090			2,539			2,156
General corporate assets		65,074			85,545			57,197
Consolidated assets	$	4,156,266		$	4,141,909		$	3,682,517

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MARINE TRANSPORTATION

The marine transportation segment is primarily a provider of transportation services by tank barge for the inland and coastal markets. As of February 19, 2016, the equipment owned or operated by the marine transportation segment consisted of 898 inland tank barges with 17.9 million barrels of capacity, 243 inland towboats, 70 coastal tank barges with 6.0 million barrels of capacity, 73 coastal tugboats, six offshore dry-bulk cargo barges, seven offshore tugboats and one docking tugboat with the following specifications and capacities:

Class of equipment	Number in class		Average age (in years)		Barrel capacities
Inland tank barges (owned and leased):
Regular double hull:
20,000 barrels and under		388		13.8		4,444,000
Over 20,000 barrels		445		13.1		12,511,000
Specialty double hull		65		38.5		972,000
Total inland tank barges		898		15.2		17,927,000
Inland towboats (owned and chartered):
800 to 1300 horsepower		80		37.6
1400 to 1900 horsepower		79		33.9
2000 to 2400 horsepower		53		15.7
2500 to 3200 horsepower		17		39.9
3300 to 4800 horsepower		11		36.5
Greater than 5000 horsepower		2		43.0
Spot charters (chartered trip to trip)		1	─
Total inland towboats		243		31.9
Coastal tank barges (owned and leased):
Double hull:
30,000 barrels and under		9		21.4		199,000
50,000 to 70,000 barrels		13		15.0		650,000
80,000 to 90,000 barrels		26		14.3		2,141,000
100,000 to 110,000 barrels		6		9.5		630,000
120,000 to 150,000 barrels		9		18.5		1,132,000
Over 150,000 barrels		7		21.6		1,217,000
Total coastal tank barges		70		16.2		5,969,000
Coastal tugboats (owned and chartered):
1000 to 1900 horsepower		7		30.0
2000 to 2900 horsepower		5		41.4
3000 to 3900 horsepower		15		36.6
4000 to 4900 horsepower		24		27.1
5000 to 6900 horsepower		11		35.8
Greater than 7000 horsepower		11		20.6
Total coastal tugboats		73		30.6
					Deadweight Tonnage
Offshore dry-bulk cargo barges (owned)		6		24.0		113,000
Offshore tugboats and docking tugboat (owned and chartered)		8		26.0

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The 243 inland towboats, 73 coastal tugboats, seven offshore tugboats and one docking tugboat provide the power source and the 898 inland tank barges, 70 coastal tank barges and six offshore dry-bulk cargo barges provide the freight capacity for the marine transportation segment. When the power source and freight capacity are combined, the unit is called a tow. The Company’s inland tows generally consist of one towboat and from one to 25 tank barges, depending upon the horsepower of the towboat, the river or canal capacity and conditions, and customer requirements. The Company’s coastal and offshore tows primarily consist of one tugboat and one tank barge or dry-bulk cargo barge.

Marine Transportation Industry Fundamentals

The United States inland waterway system, composed of a network of interconnected rivers and canals that serve the nation as water highways, is one of the world’s most efficient transportation systems. The nation’s inland waterways are vital to the United States distribution system, with over 1.1 billion short tons of cargo moved annually on United States shallow draft waterways. The inland waterway system extends approximately 26,000 miles, 12,000 miles of which are generally considered significant for domestic commerce, through 38 states, with 635 shallow draft ports. These navigable inland waterways link the United States heartland to the world.

The United States coastal system consists of ports along the Atlantic, Gulf and Pacific coasts, as well as ports in Alaska, Hawaii and on the Great Lakes. Like the inland waterways, the coastal trade is vital to the United States distribution system, particularly the regional distribution of refined petroleum products from refineries and storage facilities to a variety of destinations, including other refineries, distribution terminals, power plants and ships. In addition to distribution directly from refineries and storage facilities, coastal tank barges are used frequently to distribute products from pipelines. Many coastal markets receive refined petroleum products principally from coastal tank barges. Smaller volumes of petrochemicals are distributed from Gulf Coast plants to end users and black oil, including crude oil and natural gas condensate, is distributed regionally from refineries and terminals along the United States coast to refineries, power plants and distribution terminals.

Based on cost and safety, barge transportation is often the most efficient and safest means of transporting bulk commodities when compared with railroads and trucks. The cargo capacity of a 27,500 barrel inland tank barge is the equivalent of 46 railroad tank cars or 144 tractor-trailer tank trucks. A typical Company lower Mississippi River linehaul tow of 15 barges has the carrying capacity of approximately 216 railroad tank cars plus six locomotives, or approximately 1,050 tractor-trailer tank trucks. The Company’s inland tank barge fleet capacity of 17.9 million barrels equates to approximately 30,000 railroad tank cars or approximately 93,900 tractor-trailer tank trucks. Furthermore, barging is much more energy efficient. One ton of bulk product can be carried 616 miles by inland barge on one gallon of fuel, compared with 478 miles by railcar or 150 miles by truck. In the coastal trade, the carrying capacity of a 100,000 barrel tank barge is the equivalent of approximately 165 railroad tank cars or approximately 525 tractor-trailer tank trucks. The Company’s coastal tank barge fleet capacity of 6.0 million barrels equates to approximately 9,800 railroad tank cars or approximately 31,300 tractor-trailer tank trucks.

Tank barge transportation is safer than most modes of transportation in the United States. Marine transportation generally involves less urban exposure than railroad or truck transportation and operates on a system with few crossing junctures and in areas relatively remote from population centers. These factors generally reduce both the number and impact of waterway incidents.

Inland Tank Barge Industry

The Company operates within the United States inland tank barge industry, a diverse and independent mixture of large integrated transportation companies and small operators, as well as captive fleets owned by United States refining and petrochemical companies. The inland tank barge industry provides marine transportation of bulk liquid cargoes for customers and, in the case of captives, for their own account, throughout the Mississippi River and its tributaries and on the Gulf Intracoastal Waterway. The most significant markets in this industry include the transportation of petrochemicals, black oil, refined petroleum products and agricultural chemicals. The Company operates in each of these markets. The use of marine transportation by the petroleum and petrochemical industry is a major reason for the location of United States refineries and petrochemical facilities on navigable inland waterways. Texas and Louisiana currently account for approximately 80% of the United States production of petrochemicals. Much of the United States farm belt is likewise situated with access to the inland waterway system, relying on marine transportation of farm products, including agricultural chemicals. The Company’s principal distribution system encompasses the Gulf Intracoastal Waterway from Brownsville, Texas, to Port St. Joe, Florida, the Mississippi River System and the Houston Ship Channel. The Mississippi River System includes the Arkansas, Illinois, Missouri, Ohio, Red, Tennessee, Yazoo, Ouachita and Black Warrior Rivers and the Tennessee-Tombigbee Waterway.

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The number of tank barges that operate on the inland waterways of the United States declined from an estimated 4,200 in 1982 to 2,900 in 1993, remained relatively constant at 2,900 until 2002, decreased to 2,750 from 2002 through 2006, and then increased over the years to approximately 3,850 by the end of 2015. The Company believes the decrease from 4,200 in 1982 to 2,750 in 2006 primarily resulted from: the increasing age of the domestic tank barge fleet, resulting in scrapping; rates inadequate to justify new construction; a reduction in tax incentives, which previously encouraged speculative construction of new equipment; stringent operating standards to adequately cope with safety and environmental risk; the elimination of government regulations and programs supporting the many new small refineries and a proliferation of oil traders which created a strong demand for tank barge services; an increase in the average capacity per barge; and an increase in environmental regulations that mandate expensive equipment modification, which some owners were unwilling or unable to undertake given capital constraints and the age of their fleets. The cost of tank barge hull work for required periodic United States Coast Guard (“USCG”) certifications, as well as general safety and environmental concerns, force operators to periodically reassess their ability to recover maintenance costs. The increase from 2,750 in 2006 to approximately 3,850 by the end of 2015 primarily resulted from increased barge construction and deferred retirements due to strong demand and resulting capacity shortages. The Company’s 898 inland tank barges represent approximately 23% of the industry’s 3,850 inland tank barges.

For 2013, the Company estimated that industry-wide 270 tank barges were placed in service and 70 tank barges were retired. For 2014, the Company estimated that industry-wide 300 tank barges were placed in service and 100 tank barges were retired.  For 2015, the Company estimated that industry-wide 260 tank barges were placed in service and 60 tank barges were retired.  During 2015, the decline in industry-wide demand for the movement of crude oil and natural gas condensate, and the subsequent transfer of inland crude oil barges to other tank barge markets, created some excess industry-wide tank barge capacity. As a result, the Company estimates that approximately 90 tank barges were ordered for delivery throughout 2016 and many older tank barges will be retired, dependent on 2016 market conditions. The risk of an oversupply of tank barges may be mitigated by continued increased petrochemical, black oil and refined petroleum products volumes and the fact that the inland tank barge industry has a mature fleet, with approximately 650 tank barges over 30 years old and approximately 250 of those over 40 years old, which may lead to retirement of older tank barges.

The average age of the nation’s inland tank barge fleet is approximately 15 years. Neither the Company, nor the industry, operates any single hull inland tank barges. Single hull tank barges were required by current federal law to either be retrofitted with double hulls or phased out of domestic service by December 31, 2014.

The Company’s inland marine transportation segment also owns a two-thirds interest in Osprey Line, L.L.C. (“Osprey”), a transporter of project cargoes and cargo containers by barge on the United States inland waterway system, as well as a 51% interest in a shifting operation and fleeting facility for dry cargo barges on the Houston Ship Channel.

Coastal Tank Barge Industry

The Company also operates in the United States coastal tank barge industry, operating tank barges in the 195,000 barrel or less category. This market is composed of approximately 15 large integrated transportation companies and small operators. The 195,000 barrel or less category coastal tank barge industry primarily provides regional marine transportation distribution of bulk liquid cargoes along the United States’ Atlantic, Gulf and Pacific coasts, in Alaska and Hawaii and, to a lesser extent, on the Great Lakes. Products transported are primarily refined petroleum products and black oil from refineries and storage facilities to a variety of destinations, including other refineries, distribution terminals, power plants and ships, the regional movement of crude oil and natural gas condensate to Gulf Coast, Northeast and West Coast refineries, and the movement of petrochemicals primarily from Gulf Coast petrochemical facilities to end users.

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The number of coastal tank barges that operate in the 195,000 barrel or less category is approximately 270, of which the Company operates 70 or approximately 26%. The average age of the nation’s coastal tank barge fleet is approximately 16 years. The coastal tank barge fleet is also mature, with approximately 45 tank barges over 30 years old and approximately 35 of those over 35 years old, which may lead to the retirement of older tank barges.

Competition in the Tank Barge Industry

The tank barge industry remains very competitive. Competition in this business has historically been based primarily on price; however, most of the industry’s customers, through an increased emphasis on safety, the environment, quality and a trend toward a “single source” supply of services, are more frequently requiring that their supplier of tank barge services have the capability to handle a variety of tank barge requirements. These requirements include distribution capability throughout the inland waterway system and coastal markets, with high levels of flexibility, safety, environmental responsibility and financial responsibility, as well as adequate insurance and high quality of service consistent with the customer’s own operational standards.

In the inland markets, the Company’s direct competitors are primarily noncaptive inland tank barge operators. “Captive” fleets are owned by major oil and petrochemical companies which occasionally compete in the inland tank barge market, but primarily transport cargoes for their own account. The Company is the largest inland tank barge carrier, both in terms of number of barges and total fleet barrel capacity. The Company’s inland tank barge fleet has grown from 71 tank barges in 1988 to 898 tank barges as of February 19, 2016, or approximately 23% of the estimated total number of domestic inland tank barges.

In the coastal markets, the Company’s direct competitors are the operators of United States tank barges in the 195,000 barrels or less category. Coastal tank barges in the 195,000 barrels or less category have the ability to enter the large majority of coastal ports. Ocean-going tank barges and United States refined petroleum products tankers, in the 300,000 barrels plus category, including the captive fleets of major oil companies, primarily move large volumes of refined petroleum products and crude oil from the Gulf Coast to the Northeast. There are approximately 40 such vessels and, because of their size, their access to ports is limited by terminal size and draft restrictions.

While the Company competes primarily with other tank barge companies, it also competes with companies who operate refined product and petrochemical pipelines, railroad tank cars and tractor-trailer tank trucks. As noted above, the Company believes that both inland and coastal marine transportation of bulk liquid products enjoy a substantial cost advantage over railroad and truck transportation. The Company believes that refined product and crude oil pipelines, although often a less expensive form of transportation than inland and coastal tank barges, are not as adaptable to diverse products and are generally limited to fixed point-to-point distribution of commodities in high volumes over extended periods of time.

Products Transported

The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. During 2015, the Company’s inland marine transportation operation moved over 45 million tons of liquid cargo on the United States inland waterway system.

Petrochemicals. Bulk liquid petrochemicals transported include such products as benzene, styrene, methanol, acrylonitrile, xylene, naphtha and caustic soda, all consumed in the production of paper, fibers and plastics. Pressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges. The transportation of petrochemical products represented 47% of the segment’s 2015 revenues. Customers shipping these products are petrochemical and refining companies.

Black Oil. Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel). Such products represented 30% of the segment’s 2015 revenues. Black oil customers are refining companies, marketers and end users that require the transportation of black oil between refineries and storage terminals, to refineries and to power plants. Ship bunker customers are oil companies and oil traders in the bunkering business.

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Refined Petroleum Products. Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 20% of the segment’s 2015 revenues. The Company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers.

Agricultural Chemicals. Agricultural chemicals transported represented 3% of the segment’s 2015 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist mainly of domestic and foreign producers of such products.

Demand Drivers in the Tank Barge Industry

Demand for tank barge transportation services is driven by the production volumes of the bulk liquid commodities transported by barge. Marine transportation demand for the segment’s four primary commodity groups, petrochemicals, black oil, refined petroleum products and agricultural chemicals, is based on differing circumstances. While the demand drivers of each commodity are different, the Company has the flexibility in certain cases of re-allocating inland equipment and coastal equipment between the petrochemical, refined petroleum products and crude oil markets as needed.

Bulk petrochemical volumes have historically tracked the general domestic economy and correlate to the United States Gross Domestic Product. However, since late 2010, inland petrochemical tank barge utilization has remained relatively stable, in the 90% to 95% range.  The United States petrochemical industry continued to see strong production levels for both domestic consumption and exports. Low priced domestic natural gas, a basic feedstock for the United States petrochemical industry, has provided the industry with a competitive advantage against foreign petrochemical producers. As a result, United States petrochemical production has remained stable during 2015, 2014 and 2013, thereby producing increased marine transportation volumes of basic petrochemicals to both domestic consumers and terminals for export destinations. Petrochemical products are used primarily in consumer non-durable and durable goods. Coastal tank barge utilization for the transportation of petrochemicals during 2015 was in the 90% to 95% range.

The demand for black oil, including ship bunkers, varies by type of product transported. Demand for transportation of residual oil, a heavy by-product of refining operations, varies with refinery utilization and usage of feedstocks. During the majority of 2015 and all of 2014 and 2013, inland black oil tank barge utilization remained strong, in the 90% to 95% range, due to strong demand driven by steady refinery production levels from major customers, and the export of diesel fuel and heavy fuel oil.  With the decline in the price of crude oil in late 2014 and the low price throughout 2015, movements by tank barge of crude oil and natural gas condensate declined industry-wide.  As 2015 progressed, the Company and the industry were generally successful in moving barges from that trade to other markets. The Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast.  The decline in demand for crude oil and natural gas condensate movements resulted in an occasional decline in utilization in the 2015 fourth quarter to the high-80% level.  Coastal black oil tank barge utilization remained in the 90% to 95% range for the majority of 2015 and all of 2014 and 2013, partly attributable to the movement of black oil, specifically residual fuel oil and asphalt, along the United States East and Gulf Coasts. Inland and coastal asphalt shipments are generally seasonal, with higher volumes shipped during April through November, months when weather allows for efficient road construction.  Due to the seasonally normal cessation of most operations in Alaska in the 2015 fourth quarter, coastal tank barge utilization was in the high-80% to low-90% range for that quarter.  Carbon black feedstock shipments generally track the general economy and are used in the production of automobiles and related parts, and in housing applications.  In August 2013, the Company sold its New York Harbor bunkering barges and tugboats, thereby exiting the New York Harbor ship bunker market.

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Refined petroleum product volumes are driven by United States gasoline and diesel fuel consumption, principally vehicle usage, air travel and weather conditions. Volumes can also relate to gasoline inventory imbalances within the United States. Generally, gasoline and No. 2 oil are exported from the Gulf Coast where refining capacity exceeds demand. The Midwest is a net importer of such products. Volumes were also driven by diesel fuel transported to terminals along the Gulf Coast for export to South America. Ethanol, produced in the Midwest, is moved from the Midwest to Gulf Coast customers; however, during 2013 ethanol volumes declined due to the high price of corn, the major feedstock for United States ethanol production. In the coastal trade, tank barges are frequently used regionally to transport refined petroleum products from a coastal refinery or terminals served by pipelines to the end markets. Many coastal areas have access to refined petroleum products only by using marine transportation as the last link in the distribution chain.

Demand for marine transportation of domestic and imported agricultural fertilizer is directly related to domestic nitrogen-based liquid fertilizer consumption, driven by the production of corn, cotton and wheat. During periods of high natural gas prices, the manufacturing of nitrogen-based liquid fertilizer in the United States is curtailed. During these periods, imported products, which normally involve longer barge trips, replace the domestic products to meet Midwest and south Texas demands. Such products are delivered to the numerous small terminals and distributors throughout the United States farm belt.

Marine Transportation Operations

The marine transportation segment operates a fleet of 898 inland tank barges and 243 inland towboats, as well as 70 coastal tank barges and 73 coastal tugboats. The segment also operates six offshore dry-bulk cargo barges, seven offshore tugboats and one docking tugboat transporting dry-bulk commodities in coastal trade.

Inland Operations. The segment’s inland operations are conducted through a wholly owned subsidiary, Kirby Inland Marine, LP (“Kirby Inland Marine”). Kirby Inland Marine’s operations consist of the Canal, Linehaul and River fleets, as well as barge fleeting services.

The Canal fleet transports petrochemical feedstocks, processed chemicals, pressurized products, black oil, and refined petroleum products along the Gulf Intracoastal Waterway, the Mississippi River below Baton Rouge, Louisiana, and the Houston Ship Channel. Petrochemical feedstocks and certain pressurized products are transported from one plant to another plant for further processing. Processed chemicals and certain pressurized products are moved to waterfront terminals and chemical plants. Black oil is transported to waterfront terminals and products such as No. 6 fuel oil are transported directly to the end users. Refined petroleum products are transported to waterfront terminals along the Gulf Intracoastal Waterway for distribution.

The Linehaul fleet transports petrochemical feedstocks, chemicals, agricultural chemicals and lube oils along the Gulf Intracoastal Waterway, Mississippi River and the Illinois and Ohio Rivers. Loaded tank barges are staged in the Baton Rouge area from Gulf Coast refineries and petrochemical plants, and are transported from Baton Rouge to waterfront terminals and plants on the Mississippi, Illinois and Ohio Rivers, and along the Gulf Intracoastal Waterway, on regularly scheduled linehaul tows. Barges are dropped off and picked up going up and down river.

The River fleet transports petrochemical feedstocks, chemicals, refined petroleum products, agricultural chemicals and black oil along the Mississippi River System above Baton Rouge. The River fleet operates unit tows, where a towboat and generally a dedicated group of barges operate on consecutive voyages between loading and discharge points. Petrochemical feedstocks and processed chemicals are transported to waterfront petrochemical and chemical plants, while black oil, refined petroleum products and agricultural chemicals are transported to waterfront terminals.

The inland transportation of petrochemical feedstocks, chemicals and pressurized products is generally consistent throughout the year. Transportation of refined petroleum products, certain black oil and agricultural chemicals is generally more seasonal. Movements of black oil, such as asphalt, generally increase in the spring through fall months. Movements of refined petroleum products, such as gasoline blends, generally increase during the summer driving season, while heating oil movements generally increase during the winter months. Movements of agricultural chemicals generally increase during the spring and fall planting seasons.

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The marine transportation inland operation moves and handles a broad range of sophisticated cargoes. To meet the specific requirements of the cargoes transported, the inland tank barges may be equipped with self-contained heating systems, high-capacity pumps, pressurized tanks, refrigeration units, stainless steel tanks, aluminum tanks or specialty coated tanks. Of the 898 inland tank barges currently operated, 704 are petrochemical and refined petroleum products barges, 120 are black oil barges, 59 are pressure barges, 10 are refrigerated anhydrous ammonia barges and five are specialty barges. Of the 898 inland tank barges, 867 are owned by the Company and 31 are leased.

The fleet of 243 inland towboats ranges from 800 to 5200 horsepower. Of the 243 inland towboats, 164 are owned by the Company and 79 are chartered. Towboats in the 800 to 2100 horsepower classes provide power for barges used by the Canal and Linehaul fleets on the Gulf Intracoastal Waterway and the Houston Ship Channel. Towboats in the 1400 to 3200 horsepower classes provide power for both the River and Linehaul fleets on the Gulf Intracoastal Waterway and the Mississippi River System. Towboats above 3600 horsepower are typically used on the Mississippi River System to move River fleet unit tows and provide Linehaul fleet towing. Based on the capabilities of the individual towboats used in the Mississippi River System, the tows range in size from 10,000 to 30,000 tons.

Marine transportation services for inland movements are conducted under long-term contracts, typically ranging from one to three years, some of which have renewal options, with customers with whom the Company has traditionally had long-standing relationships, as well as under spot contracts. During 2015 and 2014, approximately 80% of the inland marine transportation revenues were under term contracts and 20% were spot contract revenues, compared with 75% under term contracts and 25% under spot contracts during 2013.

All of the Company’s inland tank barges used in the transportation of bulk liquid products are of double hull construction and, where applicable, are capable of controlling vapor emissions during loading and discharging operations in compliance with occupational health and safety regulations and air quality regulations.

The Company is one of the few inland tank barge operators with the ability to offer to its customers’ distribution capabilities throughout the Mississippi River System and the Gulf Intracoastal Waterway. Such distribution capabilities offer economies of scale resulting from the ability to match tank barges, towboats, products and destinations more efficiently.

Through the Company’s proprietary vessel management computer system, the fleet of barges and towboats is dispatched from a centralized dispatch at the corporate office. The towboats are equipped with satellite positioning and communication systems that automatically transmit the location of the towboat to the Company’s customer service department located in its corporate office. Electronic orders are communicated to the vessel personnel with reports of towing activities communicated electronically back to the customer service department. The electronic interface between the customer service department and the vessel personnel enables more effective matching of customer needs to barge capabilities, thereby maximizing utilization of the tank barge and towboat fleet. The Company’s customers are able to access information concerning the movement of their cargoes, including barge locations, through the Company’s web site.

Kirby Inland Marine operates the largest commercial tank barge fleeting service (temporary barge storage facilities) in numerous ports, including Houston, Corpus Christi and Freeport, Texas, Baton Rouge and New Orleans, Louisiana and other locations on the Mississippi River. Included in the fleeting service is a 51% interest and management control of a shifting operation and fleeting service for dry cargo barges on the Houston Ship Channel. Kirby Inland Marine provides service for its own barges, as well as outside customers, transferring barges within the areas noted, as well as fleeting barges.

Kirby Inland Marine also provides shore-based barge tankerman to the Company and third parties. Services to the Company and third parties cover the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley.

The Company owns a two-thirds interest in Osprey, which transports project cargoes and cargo containers by barge on the United States inland waterway system.

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Coastal Operations. The segment’s coastal operations are conducted through wholly owned subsidiaries, Kirby Offshore Marine, LLC (“Kirby Offshore Marine”) and Kirby Ocean Transport Company (“Kirby Ocean Transport”).

Kirby Offshore Marine provides marine transportation of refined petroleum products, petrochemicals and black oil in coastal regions of the United States. The coastal operations consist of the Atlantic and Pacific Divisions.

The Atlantic Division primarily operates along the eastern seaboard of the United States and along the Gulf Coast. The Atlantic Division vessels call on coastal states from Maine to Texas, servicing refineries, storage terminals and power plants. The Atlantic Division also operates equipment, to a lesser extent, in the Eastern Canadian provinces. The tank barges and tugboats operating in the Atlantic Division are among the largest, with tank barges in the 9,000 to 188,000 barrel capacity range and coastal tugboats in the 1800 to 8000 horsepower range, transporting primarily refined petroleum products, petrochemicals and black oil.

The Pacific Division primarily operates along the Pacific Coast of the United States, servicing refineries and storage terminals from Southern California to Washington State, throughout Alaska, including Dutch Harbor, Cook Inlet and the Alaska River Systems, and from California to Hawaii. The Pacific Division’s fleet consists of tank barges in the 26,000 to 194,000 barrel capacity range and tugboats in the 2000 to 11000 horsepower range, transporting primarily refined petroleum products.

The Pacific Division also services local petroleum retailers and oil companies distributing refined petroleum products and black oil between the Hawaiian Islands and provides other services to the local maritime community. The Hawaii fleet consists of tank barges in the 53,000 to 86,000 barrel capacity range and tugboats in the 1000 to 5000 horsepower range, transporting refined petroleum products for local and regional customers, black oil to power generation customers and delivering bunker fuel to ships. The Hawaii fleet also provides service docking, standby tug assistance and line handling to vessels using the Single Point Mooring installation at Barbers Point, Oahu, a facility for large tankers to safely load and discharge their cargos through an offshore buoy and submerged pipeline without entering the port.

The coastal transportation of refined petroleum products and black oil is impacted by seasonality, partially dependent on the area of operations. Operations along the West Coast and in Alaska have been subject to more seasonal variations in demand than the operations along the East Coast and Gulf Coast regions. Seasonality generally does not impact the Hawaiian market. Movements of refined petroleum products such as various blends of gasoline are strongest during the summer driving season while heating oil generally increases during the winter months.

The coastal fleet consists of 70 tank barges with 6.0 million barrels of capacity, primarily transporting refined petroleum products, black oil and petrochemicals. Of the 70 coastal tank barges currently operating, 46 are refined petroleum products and petrochemical barges and 24 are black oil barges. The Company owns 62 of the coastal tank barges and eight are leased. The Company operates 73 coastal tugboats ranging from 1000 to 11000 horsepower, of which 67 are owned by the Company and six are chartered.

Coastal marine transportation services are conducted under long-term contracts, primarily one year or longer, some of which have renewal options, for customers with which the Company has traditionally had long-standing relationships, as well as under spot contracts. During 2015, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% were spot contract revenues compared with approximately 85% under term contracts and 15% under spot contract during 2014.  During 2013, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were spot contract revenues.

Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and tugboat units involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels primarily operate under contracts of affreightment that are typically one year or less in length.

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Kirby Ocean Transport owns and operates a fleet of four offshore dry-bulk barges, five offshore tugboats and one docking tugboat. Kirby Ocean Transport operates primarily under term contracts of affreightment, including a contract that expires in 2020 with Progress Energy Florida (“PEF”) to transport coal across the Gulf of Mexico to PEF’s power generation facility at Crystal River, Florida.

Kirby Ocean Transport has a contract with Holcim (US) Inc. (“Holcim”) to transport Holcim’s limestone requirements from a facility adjacent to the PEF facility at Crystal River to Holcim’s plant in Theodore, Alabama. Holcim’s contract expires in May 2016. The Holcim contract provides cargo for a portion of the return voyage for the vessels that carry coal to PEF’s Crystal River facility. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer, sugar and other bulk cargoes on a short-term basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.

Contracts and Customers

Marine transportation inland and coastal services are conducted under term contracts, typically ranging from one to three years, some of which have renewal options, for customers with whom the Company has traditionally had long-standing relationships, as well as under spot contracts. The majority of the marine transportation contracts with its customers are for terms of one year. Most have been customers of the Company’s marine transportation segment for many years and management anticipates continued relationships; however, there is no assurance that any individual contract will be renewed.

A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate (affreightment) or at a daily rate (time charter). The rate may or may not escalate during the term of the contract; however, the base rate generally remains constant and contracts often include escalation provisions to recover changes in specific costs such as fuel. Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 55% of the marine transportation’s inland revenues under term contracts during 2015, 56% of revenue under term contracts during 2014 and 58% of the revenue under term contracts during 2013. A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate and are subject to market volatility. The Company typically maintains a higher mix of term contracts to spot contracts to provide the Company with a predictable revenue stream while maintaining spot market exposure to take advantage of new business opportunities and existing customers’ peak demands. During 2015 and 2014, approximately 80% of the inland marine transportation revenues were under term contracts and 20% were spot contract revenues, compared with 75% under term contracts and 25% under spot contracts during 2013. During 2015, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% were spot contract revenues compared with approximately 85% under term contracts and 15% under spot contracts during 2014.  During 2013, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were spot contract revenues.  Coastal time charters represented approximately 90% of the marine transportation coastal revenues under term contracts during 2015, 2014 and 2013.

No single customer of the marine transportation segment accounted for 10% of the Company’s revenues in 2015, 2014 and 2013.

Employees

The Company’s marine transportation segment has approximately 3,250 employees, of which approximately 2,475 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements. The segment’s coastal operation includes approximately 950 vessel employees some of which are subject to collective bargaining agreements in certain geographic areas. Approximately 400 Kirby Offshore Marine vessel crew members employed in the Atlantic Division are subject to a collective bargaining agreement with the Richmond Terrace Bargaining Unit in effect through December 31, 2016. In addition, approximately 175 Kirby Offshore Marine vessel crew members are represented by the Seafarers International Union (“SIU”) under a collective bargaining agreement in effect through April 2016.

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Properties

The principal office of Kirby Inland Marine, Kirby Offshore Marine, Kirby Ocean Transport and Osprey is located in Houston, Texas, in the Company’s facilities under a lease that expires in December 2025. Kirby Inland Marine’s operating locations are on the Mississippi River at Baton Rouge and New Orleans, Louisiana, and Greenville, Mississippi, two locations in Houston, Texas, on and near the Houston Ship Channel, one in Miami, Florida, and one in Corpus Christi, Texas. The New Orleans and Houston facilities are owned by the Company, and the Baton Rouge, Greenville, Miami and Corpus Christi facilities are leased. Kirby Offshore Marine’s operating facilities are located in Staten Island, New York, Seattle, Washington and Honolulu, Hawaii. All of Kirby Offshore Marine’s operating facilities are leased, including pier and wharf facilities and office and warehouse space.

Governmental Regulations

General. The Company’s marine transportation operations are subject to regulation by the USCG, federal laws, state laws and certain international conventions.

Most of the Company’s tank barges are inspected by the USCG and carry certificates of inspection. The Company’s inland and coastal towing vessels and coastal dry-bulk barges are not currently subject to USCG inspection requirements; however, regulations are currently under development that would subject inland and coastal towing vessels to USCG inspection requirements. Most of the Company’s coastal tugboats and coastal tank and dry-bulk barges are built to American Bureau of Shipping (“ABS”) classification standards and are inspected periodically by ABS to maintain the vessels in class. The crews employed by the Company aboard vessels, including captains, pilots, engineers, tankermen and ordinary seamen, are licensed by the USCG.

The Company is required by various governmental agencies to obtain licenses, certificates and permits for its vessels depending upon such factors as the cargo transported, the waters in which the vessels operate and other factors. The Company is of the opinion that the Company’s vessels have obtained and can maintain all required licenses, certificates and permits required by such governmental agencies for the foreseeable future.

The Company believes that additional security and environmental related regulations may be imposed on the marine industry in the form of contingency planning requirements. Generally, the Company endorses the anticipated additional regulations and believes it is currently operating to standards at least equal to anticipated additional regulations.

Jones Act. The Jones Act is a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States, manned by United States citizens, and owned and operated by United States citizens. For a corporation to qualify as United States citizens for the purpose of domestic trade, it is to be 75% owned and controlled by United States citizens. The Company monitors citizenship and meets the requirements of the Jones Act for its vessels.

Compliance with United States ownership requirements of the Jones Act is important to the operations of the Company, and the loss of Jones Act status could have a material negative effect on the Company. The Company monitors the citizenship of its employees and stockholders.

User Taxes. Federal legislation requires that inland marine transportation companies pay a user tax based on propulsion fuel used by vessels engaged in trade along the inland waterways that are maintained by the United States Army Corps of Engineers. Such user taxes are designed to help defray the costs associated with replacing major components of the inland waterway system, such as locks and dams. A significant portion of the inland waterways on which the Company’s vessels operate is maintained by the Army Corps of Engineers.

The Company presently pays a federal fuel user tax of 29.1 cents per gallon consisting of a .1 cent per gallon leaking underground storage tank tax and 29 cents per gallon waterways user tax. The waterways user tax rate increased from 20 to 29 cents per gallon of fuel effective April 1, 2015.

Security Requirements. The Maritime Transportation Security Act of 2002 requires, among other things, submission to and approval by the USCG of vessel and waterfront facility security plans (“VSP” and “FSP”, respectively). The Company’s VSP and FSP have been approved and the Company is operating in compliance with the plans for all of its vessels and facilities that are subject to the requirements.

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Environmental Regulations

The Company’s operations are affected by various regulations and legislation enacted for protection of the environment by the United States government, as well as many coastal and inland waterway states.

Water Pollution Regulations. The Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, the Comprehensive Environmental Response, Compensation and Liability Act of 1981 (“CERCLA”) and the Oil Pollution Act of 1990 (“OPA”) impose strict prohibitions against the discharge of oil and its derivatives or hazardous substances into the navigable waters of the United States. These acts impose civil and criminal penalties for any prohibited discharges and impose substantial strict liability for cleanup of these discharges and any associated damages. Certain states also have water pollution laws that prohibit discharges into waters that traverse the state or adjoin the state, and impose civil and criminal penalties and liabilities similar in nature to those imposed under federal laws.

The OPA and various state laws of similar intent substantially increased over historic levels the statutory liability of owners and operators of vessels for oil spills, both in terms of limit of liability and scope of damages.

One of the most important requirements under the OPA was that all newly constructed tank barges engaged in the transportation of oil and petroleum in the United States be double hulled, and all existing single hull tank barges be either retrofitted with double hulls or phased out of domestic service by December 31, 2014.

The Company manages its exposure to losses from potential discharges of pollutants through the use of well-maintained and equipped vessels, through safety, training and environmental programs, and through the Company’s insurance program. There can be no assurance, however, that any new regulations or requirements or any discharge of pollutants by the Company will not have an adverse effect on the Company.

Financial Responsibility Requirement. Commencing with the Federal Water Pollution Control Act of 1972, as amended, vessels over 300 gross tons operating in the Exclusive Economic Zone of the United States have been required to maintain evidence of financial ability to satisfy statutory liabilities for oil and hazardous substance water pollution. This evidence is in the form of a Certificate of Financial Responsibility (“COFR”) issued by the USCG. The majority of the Company’s tank barges are subject to this COFR requirement, and the Company has fully complied with this requirement since its inception. The Company does not foresee any current or future difficulty in maintaining the COFR certificates under current rules.

Clean Air Regulations. The Federal Clean Air Act of 1979 requires states to draft State Implementation Plans (“SIPs”) designed to reduce atmospheric pollution to levels mandated by this act. Several SIPs provide for the regulation of barge loading and discharging emissions. The implementation of these regulations requires a reduction of hydrocarbon emissions released into the atmosphere during the loading of most petroleum products and the degassing and cleaning of barges for maintenance or change of cargo. These regulations require operators who operate in these states to install vapor control equipment on their barges. The Company expects that future emission regulations will be developed and will apply this same technology to many chemicals that are handled by barge. Most of the Company’s barges engaged in the transportation of petrochemicals, chemicals and refined petroleum products are already equipped with vapor control systems. Although a risk exists that new regulations could require significant capital expenditures by the Company and otherwise increase the Company’s costs, the Company believes that, based upon the regulations that have been proposed thus far, no material capital expenditures beyond those currently contemplated by the Company and no material increase in costs are likely to be required.

Contingency Plan Requirement. The OPA and several state statutes of similar intent require the majority of the vessels and terminals operated by the Company to maintain approved oil spill contingency plans as a condition of operation. The Company has approved plans that comply with these requirements. The OPA also requires development of regulations for hazardous substance spill contingency plans. The USCG has not yet promulgated these regulations; however, the Company anticipates that they will not be more difficult to comply with than the oil spill plans.

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Occupational Health Regulations. The Company’s inspected vessel operations are primarily regulated by the USCG for occupational health standards. Uninspected vessel operations and the Company’s shore personnel are subject to the United States Occupational Safety and Health Administration regulations. The Company believes that it is in compliance with the provisions of the regulations that have been adopted and does not believe that the adoption of any further regulations will impose additional material requirements on the Company. There can be no assurance, however, that claims will not be made against the Company for work related illness or injury, or that the further adoption of health regulations will not adversely affect the Company.

Insurance. The Company’s marine transportation operations are subject to the hazards associated with operating vessels carrying large volumes of bulk cargo in a marine environment. These hazards include the risk of loss of or damage to the Company’s vessels, damage to third parties as a result of collision, fire or explosion, loss or contamination of cargo, personal injury of employees and third parties, and pollution and other environmental damages. The Company maintains insurance coverage against these hazards. Risk of loss of or damage to the Company’s vessels is insured through hull insurance currently insuring approximately $3.4 billion in hull values. Liabilities such as collision, cargo, environmental, personal injury and general liability are insured up to $1.3 billion per occurrence.

Environmental Protection. The Company has a number of programs that were implemented to further its commitment to environmental responsibility in its operations. In addition to internal environmental audits, one such program is environmental audits of barge cleaning vendors principally directed at management of cargo residues and barge cleaning wastes. Others are the participation by the Company in the American Waterways Operators Responsible Carrier program and the American Chemistry Council Responsible Care program, both of which are oriented towards continuously reducing the barge industry’s and chemical and petroleum industries’ impact on the environment, including the distribution services area.

Safety. The Company manages its exposure to the hazards associated with its business through safety, training and preventive maintenance efforts. The Company places considerable emphasis on safety through a program oriented toward extensive monitoring of safety performance for the purpose of identifying trends and initiating corrective action, and for the purpose of rewarding personnel achieving superior safety performance. The Company believes that its safety performance consistently places it among the industry leaders as evidenced by what it believes are lower injury frequency and pollution incident levels than many of its competitors.

Training. The Company believes that among the major elements of a successful and productive work force are effective training programs. The Company also believes that training in the proper performance of a job enhances both the safety and quality of the service provided. New technology, regulatory compliance, personnel safety, quality and environmental concerns create additional demands for training. The Company has developed and instituted effective training programs.

Centralized training is provided through the Operations Personnel and Training Department, which is charged with developing, conducting and maintaining training programs for the benefit of all of the Company’s operating entities. It is also responsible for ensuring that training programs are both consistent and effective. The Company’s training facility includes state-of-the-art equipment and instruction aids, including a full bridge wheelhouse simulator, a working towboat, two tank barges and a tank barge simulator for tankermen training. During 2015, approximately 2,200 certificates were issued for the completion of courses at the training facility, of which 1,000 were USCG approved classes and the balance were employee development and Company required classes, including Leadership and Defensive Driving.

Quality. Kirby Inland Marine has made a substantial commitment to the implementation, maintenance and improvement of Quality Assurance Systems in compliance with the International Quality Standard, ISO 9001. Kirby Offshore Marine is certified under ABS ISM standards. These Quality Assurance Systems and certification have enabled both shore and vessel personnel to effectively manage the changes which occur in the working environment, as well as enhancing the Company’s safety and environmental performance.

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DIESEL ENGINE SERVICES

The Company, through its wholly owned subsidiary Kirby Engine Systems, Inc. (“Kirby Engine Systems”), and its wholly owned subsidiaries Marine Systems, Inc. (“Marine Systems”), Engine Systems, Inc. (“Engine Systems”) and United Holdings LLC (“United”), sells genuine replacement parts, provides service mechanics to overhaul and repair medium-speed and high-speed diesel engines, transmissions, reduction gears and pumps, maintains facilities to rebuild component parts or entire medium-speed and high-speed diesel engines, transmissions and reduction gears, and manufactures and remanufactures oilfield service equipment, including pressure pumping units. The Company primarily services the marine, power generation and the land-based oilfield service and oil and gas operator and producer markets.

For the marine market, the Company sells Original Equipment Manufacturers (OEM) replacement parts, provides service mechanics to overhaul and repair engines and reduction gears, and maintains facilities to rebuild component parts or entire engines and reduction gears. For the power generation market, the Company provides engineering and field services, OEM replacement parts, and safety-related products to power generation operators and to the nuclear industry, and manufactures engine generator and pump packages for the power generation operators and municipalities.

For the land-based market, the Company sells OEM replacement parts, sells and services high-speed diesel engines, pumps and transmissions and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for oilfield service companies and oil and gas operators and producers.

No single customer of the diesel engine services segment accounted for 10% of the Company’s revenues in 2015, 2014 or 2013. The diesel engine services segment also provides service to the Company’s marine transportation segment, which accounted for approximately 5% of the diesel engine services segment’s 2015 revenues, 3% of 2014 revenues and 5% of 2013 revenues. Such revenues are eliminated in consolidation and not included in the table below.

The following table sets forth the revenues for the diesel engine services segment for the three years ended December 31, 2015 (dollars in thousands):

	2015					2014					2013
	Amounts		%			Amounts		%			Amounts		%
Manufacturing	$	94,812		20	%	$	261,553		33	%	$	110,053		21	%
Overhauls and service		251,447		52			366,477		46			283,209		53
Direct parts sales		138,183		28			167,604		21			135,766		26
	$	484,442		100	%	$	795,634		100	%	$	529,028		100	%

Marine Operations

The Company is engaged in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry, which represented 29% of the segment’s 2015 revenues. Medium-speed diesel engines have an engine speed of 400 to 1000 revolutions per minute (“RPM”) with a horsepower range of 800 to 32000. High-speed diesel engines have an engine speed of over 1000 RPM and a horsepower range of 50 to 8375. The Company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries. It also services marine equipment and offshore drilling equipment used in the offshore petroleum exploration and oil service industry, marine equipment used in the offshore commercial fishing industry and vessels owned by the United States government.

The Company has marine operations throughout the United States providing in-house and in-field repair capabilities and related parts sales. The Company’s emphasis is on service to its customers, and it sends its crews from any of its locations to service customers’ equipment anywhere in the world. The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington and Tampa, Florida. The operations based in Chesapeake, Virginia and Tampa, Florida are authorized distributors for 17 eastern states for Electro-Motive Diesel, Inc. (“EMD”). The marine operations based in Houma, Louisiana, Paducah, Kentucky and Seattle, Washington are nonexclusive contract service centers for EMD providing service and related parts sales. The Company is also a distributor and representative for certain Alfa Laval products in the Midwest and on the East Coast, Gulf Coast, and West Coast. All of the marine locations are authorized distributors for Falk Corporation reduction gears and Oil States Industries, Inc. clutches. The Chesapeake, Virginia operation concentrates on East Coast inland and offshore dry-bulk, tank barge and harbor docking operators, the USCG and United States Navy (“Navy”). The Houma, Louisiana operation concentrates on the inland and offshore barge and oil services industries. The Tampa, Florida operation concentrates on Gulf of Mexico offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lakes carriers. The Seattle, Washington operation concentrates on the offshore commercial fishing industry, the tugboat and barge industry, the USCG and Navy, and other customers in Alaska, Hawaii and the Pacific Rim.

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The high-speed operations are located in Houma, Baton Rouge, Belle Chasse and New Iberia, Louisiana, Paducah, Kentucky, Mobile, Alabama, Houston, Texas and Thorofare, New Jersey. The Company serves as a factory-authorized marine dealer for Caterpillar diesel engines in Alabama, Kentucky, Louisiana, New Jersey and Texas. The Company also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere diesel engines, as well as Allison transmissions and Twin Disc marine gears. High-speed diesel engines provide the main propulsion for a significant amount of the United States flag commercial vessels and other marine applications, including engines for power generators and barge pumps.

Marine Customers

The Company’s major marine customers include inland and offshore barge operators, oil service companies, offshore fishing companies, other marine transportation entities, and the USCG and Navy.

Since the marine business is linked to the relative health of the diesel power tugboat and towboat industry, the offshore supply boat industry, the oil and gas drilling industry, the military and the offshore commercial fishing industry, there is no assurance that its present gross revenues can be maintained in the future. The results of the diesel engine services industry are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries.

Marine Competitive Conditions

The Company’s primary competitors are independent diesel engine services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities. While price is a major determinant in the competitive process, reputation, consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids. However, the Company has entered into preferential service agreements with certain operators of diesel powered marine equipment, providing such operators with one source of support and service for all of their requirements at pre-negotiated prices.

The Company is one of a limited number of authorized resellers of EMD, Caterpillar, Cummins, Detroit Diesel and John Deere parts. The Company is also the only marine distributor for Falk reduction gears throughout the United States.

Power Generation Operations

The Company is engaged in the overhaul and repair of diesel engines and generators, and related parts sales for power generation customers, which represented 10% of the segment’s 2015 revenues. The Company is also engaged in the sale and distribution of diesel engine parts, engine modifications, generator modifications, controls, governors and diesel generator packages to the nuclear industry. The Company services users of diesel engines that provide emergency standby, peak and base load power generation.

The Company provides in-house and in-field repair capabilities and products to power generation operators from the Rocky Mount, North Carolina location. The operation based in Rocky Mount, North Carolina is an EMD authorized distributor for 17 eastern states for power generation applications, and provides in-house and in-field service. The Rocky Mount operation is also the exclusive worldwide distributor of EMD products to the nuclear industry, the worldwide distributor for Woodward, Inc. products to the nuclear industry, the worldwide distributor of GE Oil & Gas Compression Systems, LLC products to the nuclear industry, and owns the assets and technology necessary to support the Nordberg medium-speed diesel engines used in nuclear applications. In addition, the Rocky Mount operation is an exclusive distributor for Norlake Manufacturing Company transformer products to the nuclear industry, an exclusive distributor of Hannon Company generator and motor products to the nuclear industry, and a non-exclusive distributor of analog Weschler Instruments metering products and an exclusive distributor of digital Weschler metering products to the nuclear industry. The Company is a non-exclusive distributor of Ingersoll Rand air start equipment to the nuclear industry worldwide.

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Power Generation Customers

The Company’s power generation customers are primarily domestic utilities and the worldwide nuclear power industry.

Power Generation Competitive Conditions

The Company’s primary competitors are other independent diesel service companies and manufacturers. While price is a major determinant in the competitive process, reputation, consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids.

As noted under Power Generation Operations above, the Company is the exclusive worldwide distributor of EMD, GE Oil & Gas, Woodward, Nordberg, Norlake and Hannon parts for the nuclear industry, and non-exclusive distributor of Weschler parts and Ingersoll Rand air start equipment for the nuclear industry. Specific regulations relating to equipment used in nuclear power generation require extensive testing and certification of replacement parts. Non-genuine parts and OEM parts not properly tested and certified cannot be used in nuclear applications.

Land-Based Operations

The Company is engaged in the distribution and service of high-speed diesel engines, pumps and transmissions, and the manufacture and remanufacture of oilfield service equipment. The land-based operations represented 61% of the segment’s 2015 revenues. The Company offers a full line of custom fabricated oilfield service equipment, fully tested and field ready. The Company manufactures products or components that are purchased by a company and marketed under the purchasing company’s brand name. The Company distributes, sells parts for and services diesel engines and transmissions for on-and off-highway use and provides in-house and in-field service capabilities. The Company is the largest off-highway distributor for Allison, a major distributor for MTU in North America, and a distributor for Isuzu diesel engines. The Company is also the exclusive distributor for Daimler for engines and related equipment in Oklahoma, Arkansas and Louisiana. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders. Lastly, the Company is a dealer for Thermo King refrigeration systems for trucks, railroad cars and other land transportation markets in south and central Texas.  During 2015, the Company was also engaged in the manufacturing and packaging of custom compression systems, but sold substantially all the assets of that business in November 2015.

The Company’s land-based operation is based in Oklahoma City, Oklahoma with 10 locations across four states in key oil and gas producing regions and major transportation corridors. The distribution and service facilities are located in Oklahoma City and Tulsa, Oklahoma, Little Rock, Arkansas and Shreveport, Louisiana. The Company’s manufacturing facility is located in Oklahoma City, Oklahoma. The Company’s refrigeration facilities are located in Houston, Pharr, Laredo, San Antonio and Austin, Texas.

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Land-Based Customers

The Company’s major land-based customers include large and mid-cap oilfield service providers, oil and gas operators and producers, construction companies, domestic and international utilities, on-highway transportation companies and companies associated with the agricultural markets. The Company has long standing relationships with most of its customers.

Since the land-based business is linked to the oilfield services industry and oil and gas operators and producers, there is no assurance that its present gross revenues can be maintained in the future. The results of the land-based diesel engine services industry are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries.

Land-Based Competitive Conditions

The Company’s primary competitors are other oilfield equipment manufacturers and service companies. While price is a major determinant in the competitive process, equipment availability, reputation, consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids.

Employees

The Company’s diesel engine services segment has approximately 825 employees. None of the segment’s operations are subject to collective bargaining agreements.

Properties

The principal offices of the diesel engine services segment are located in Houma, Louisiana and Oklahoma City, Oklahoma.

The marine and power generation businesses operate 13 parts and service facilities, with two facilities located in Houma, Louisiana, and one facility each located in Baton Rouge, Belle Chasse and New Iberia, Louisiana, Mobile, Alabama, Houston, Texas, Chesapeake, Virginia, Rocky Mount, North Carolina, Paducah, Kentucky, Tampa, Florida, Seattle, Washington and Thorofare, New Jersey. All of these facilities are leased except the Houma, Belle Chasse and New Iberia, Louisiana, Houston, Texas and Mobile, Alabama facilities, which are owned by the Company.

The land-based business operates 10 distribution and service and manufacturing facilities across four states in key oil and gas producing regions and major transportation corridors. The distribution and service facilities are located in Oklahoma City and Tulsa, Oklahoma, Little Rock, Arkansas and Shreveport, Louisiana. The Oklahoma City, Oklahoma, Shreveport, Louisiana and the Little Rock, Arkansas facilities are owned by the Company and the Tulsa, Oklahoma facility is leased. The Company’s manufacturing facility is located in Oklahoma City, Oklahoma and is owned by the Company.  The Company’s refrigeration facilities are located in Houston, Pharr, Laredo, San Antonio and Austin, Texas. All of these facilities are leased except for the San Antonio facility which is owned by the Company.

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Executive Officers of the Registrant

The executive officers of the Company are as follows:

Name	Age	Positions and Offices
Joseph H. Pyne	68	Chairman of the Board
David W. Grzebinski	54	President and Chief Executive Officer
C. Andrew Smith	45	Executive Vice President and Chief Financial Officer
Joseph H. Reniers	41	Senior Vice President– Diesel Engine Services and Marine Facility Operations
William G. Ivey	72	President – Marine Transportation Group, Kirby Inland Marine and Kirby Offshore Marine
Dorman L. Strahan	59	President – Kirby Engine Systems
Ronald A. Dragg	52	Vice President, Controller and Assistant Secretary
James F. Farley	64	Vice President –Industry Relations
Amy D. Husted	47	Vice President – Legal
David R. Mosley	51	Vice President and Chief Information Officer
Renato A. Castro	44	Treasurer

No family relationship exists among the executive officers or among the executive officers and the directors. Officers are elected to hold office until the annual meeting of directors, which immediately follows the annual meeting of stockholders, or until their respective successors are elected and have qualified.

Joseph H. Pyne holds a degree in liberal arts from the University of North Carolina and has served the Company as Chairman of the Board since April 2014. He served the Company as Chairman of the Board and Chief Executive Officer from January 2014 to April 2014, as Chairman of the Board, President and Chief Executive Officer from April 2013 to January 2014 and from April 2010 to April 2011, and as President and Chief Executive Officer from 1995 to April 2010, Executive Vice President from 1992 to 1995 and as President of Kirby Inland Marine from 1984 to November 1999. He has served the Company as a Director since 1988. He also served in various operating and administrative capacities with Kirby Inland Marine from 1978 to 1984, including Executive Vice President from January to June 1984. Prior to joining the Company, he was employed by Northrop Services, Inc. and served as an officer in the Navy.

David W. Grzebinski is a Chartered Financial Analyst and holds a Masters in Business Administration degree from Tulane University and a degree in chemical engineering from the University of South Florida. He has served as President and Chief Executive Officer since April 2014. He served as President and Chief Operating Officer from January 2014 to April 2014 and as Chief Financial Officer from March 2010 to April 2014. He served as Chairman of Kirby Offshore Marine from February 2012 to April 2013 and served as Executive Vice President from March 2010 to January 2014. Prior to joining the Company in February 2010, he served in various administrative positions since 1988 with FMC Technologies Inc. (“FMC”), including Controller, Energy Services, Treasurer, and Director of Global SAP and Industry Relations. Prior to joining FMC, he was employed by Dow Chemical Company (“Dow”).

C. Andrew Smith is a Certified Public Accountant and holds a degree in business administration from the University of Houston. He has served as Executive Vice President and Chief Financial Officer since April 2014. He served as Executive Vice President – Finance from January 2014 to April 2014. Prior to joining the Company in January 2014, he served as Senior Vice President and Chief Financial Officer of Benthic Geotech and was previously Chief Financial Officer for both Global Industries, LTD and NATCO Group.

Joseph H. Reniers holds a degree in mechanical engineering from the United States Naval Academy and a Master of Business Administration degree from the University of Chicago Booth School of Business. He has served as Senior Vice President– Diesel Engine Services and Marine Facility Operations since February 2015. He served as Vice President — Strategy and Operational Service from April 2014 to February 2015, Vice President — Supply Chain from April 2012 to April 2014 and Vice President – Human Resources from March 2010 to April 2012. Prior to joining the Company, he was a management consultant with McKinsey & Company serving a wide variety of industrial clients. Prior to joining McKinsey, he served as a nuclear power officer in the Navy.

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William G. Ivey attended the University of Houston and has served the Company as President – Marine Transportation Group since February 2014, President of Kirby Offshore Marine since January 2016, President of Kirby Inland Marine since April 2011 and served as Executive Vice President, Sales and Marketing from 1989 to April 2011. He joined the Company in 1989 with the acquisition of Alamo Inland Marine. Prior to joining the Company he served in various sales and marketing positions with inland marine companies dating back to 1970.

Dorman L. Strahan attended Nicholls State University and has served the Company as President of Kirby Engine Systems since May 1999, President of Marine Systems since 1986 and President of Engine Systems since 1996. After joining the Company in 1982 in connection with the acquisition of Marine Systems, he served as Vice President of Marine Systems until 1985.

Ronald A. Dragg is a Certified Public Accountant and holds a Master of Science in Accountancy degree from the University of Houston and a degree in finance from Texas A&M University. He has served the Company as Vice President and Controller since January 2007. He also served as Controller from November 2002 to January 2007, Controller — Financial Reporting from January 1999 to October 2002, and Assistant Controller — Financial Reporting from October 1996 to December 1998. Prior to joining the Company, he was employed by Baker Hughes Incorporated.

James F. Farley holds a Master of Science degree from Thunderbird School of Global Management and a bachelor of arts degree from Texas Tech University. He has served the Company as Vice President – Industry Relations since January 2016.  He served as President of Kirby Offshore Marine from February 2012 to January 2016 and served as Executive Vice President – Operations of Kirby Inland Marine from 2003 to February 2012. Prior to joining the Company in 2003, he held senior level marketing, logistics and operations positions in the marine transportation industry.

Amy D. Husted holds a doctorate of jurisprudence from South Texas College of Law and a degree in political science from the University of Houston. She has served the Company as Vice President — Legal since January 2008 and served as Corporate Counsel from November 1999 through December 2007. Prior to joining the Company, she served as Corporate Counsel of Hollywood Marine from 1996 to 1999 after joining Hollywood Marine in 1994.

David R. Mosley holds a degree in computer science from Texas A&M University and has served the Company as Vice President and Chief Information Officer since May 2007. Prior to joining the Company in 2007, he served as Vice President and Chief Information Officer for Prudential Real Estate Services Company from 2005 to May 2007, Vice President — Service Delivery for Iconixx Corporation from 1999 to 2005, Vice President — Product Development and Services for ADP Dealer Services from 1995 to 1999 and in various information technology development and management positions from 1987 to 1995.

Renato A. Castro is a Certified Public Accountant and holds a Masters in Business Administration degree from Tulane University and a degree in civil engineering from the National Autonomous University of Honduras. He has served the Company as Treasurer since April 2010 and served as Manager of Financial Analysis from 2007 to April 2010. He also served as Financial Analyst from 2005 through 2006 and Assistant Controller of Kirby Inland Marine from 2001 through 2004. Prior to joining the Company, he was employed by a subsidiary of Astaldi S.p.A. in their transport infrastructure division.

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Item 1A. Risk Factors

The following risk factors should be considered carefully when evaluating the Company, as its businesses, results of operations, or financial condition could be materially adversely affected by any of these risks. The following discussion does not attempt to cover factors, such as trends in the United States and global economies or the level of interest rates, among others, that are likely to affect most businesses.

The Inland Waterway infrastructure is aging and may result in increased costs and disruptions to the Company’s marine transportation segment. Maintenance of the United States inland waterway system is vital to the Company’s operations. The system is composed of over 12,000 miles of commercially navigable waterway, supported by over 240 locks and dams designed to provide flood control, maintain pool levels of water in certain areas of the country and facilitate navigation on the inland river system. The United States inland waterway infrastructure is aging, with more than half of the locks over 50 years old. As a result, due to the age of the locks, scheduled and unscheduled maintenance outages may be more frequent in nature, resulting in delays and additional operating expenses. One-half of the cost of new construction and major rehabilitation of locks and dams is paid by marine transportation companies through a 29 cent per gallon diesel fuel tax and the remaining 50% is paid from general federal tax revenues. Failure of the federal government to adequately fund infrastructure maintenance and improvements in the future would have a negative impact on the Company’s ability to deliver products for its customers on a timely basis. In addition, any additional user taxes that may be imposed in the future to fund infrastructure improvements would increase the Company’s operating expenses.

The Company is subject to adverse weather conditions in its marine transportation and diesel engine services segments. The Company’s marine transportation segment is subject to weather conditions on a daily basis. Adverse weather conditions such as high or low water on the inland waterway systems, fog and ice, tropical storms, hurricanes and tsunamis on both the inland waterway systems and throughout the United States coastal waters can impair the operating efficiencies of the marine fleet. Such adverse weather conditions can cause a delay, diversion or postponement of shipments of products and are totally beyond the control of the Company. In addition, adverse water and weather conditions can negatively affect a towing vessel’s performance, tow size, loading drafts, fleet efficiency, place limitations on night passages and dictate horsepower requirements. The Company’s diesel engine services segment is subject to tropical storms and hurricanes impacting its coastal locations and tornadoes impacting its Oklahoma facilities.

The Company could be adversely impacted by a marine accident or spill event. A marine accident or spill event could close a portion of the inland waterway system or a coastal area of the United States for a period of time. Although statistically marine transportation is the safest means of transporting bulk commodities, accidents do occur, both involving Company equipment and equipment owned by other marine carriers.

The Company transports a wide variety of petrochemicals, black oil, refined petroleum products and agricultural chemicals throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. The Company manages its exposure to losses from potential discharges of pollutants through the use of well-maintained and equipped tank barges and towing vessels, through safety, training and environmental programs, and through the Company’s insurance program, but a discharge of pollutants by the Company could have an adverse effect on the Company.

The Company’s marine transportation segment is dependent on its ability to adequately crew its towing vessels. The Company’s towing vessels are crewed with employees who are licensed or certified by the USCG, including its captains, pilots, engineers and tankermen. The success of the Company’s marine transportation segment is dependent on the Company’s ability to adequately crew its towing vessels. As a result, the Company invests significant resources in training its crews and providing crew members an opportunity to advance from a deckhand to the captain of a Company towboat or tugboat, or on the coastal tugboats from a deckhand to the chief engineer. Lifestyle issues are a deterrent for employment for inland and coastal crew members. Inland crew members generally work a 20 days on, 10 days off rotation, or a 30 days on, 15 days off rotation. For the coastal fleet, crew members are generally required to work a 14 days on, 14 days off, 21 days on, 21 days off or 30 days on, 30 days off rotation, dependent upon the location. With ongoing retirements and competitive labor pressure in the marine transportation segment, the Company continues to monitor and implement market competitive pay practices. The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions.

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The Company’s marine transportation segment has approximately 3,250 employees, of which approximately 2,475 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements. The segment’s coastal operation includes approximately 950 vessel employees, of whom approximately 575 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas.

Reduction in the number of acquisitions made by the Company may curtail future growth. Since 1986, the Company has been successful in the integration of 32 acquisitions in its marine transportation segment and 17 acquisitions in its diesel engine services segment. Acquisitions have played a significant part in the growth of the Company. The Company’s marine transportation revenue in 1987 was $40.2 million compared with $1.66 billion in 2015. Diesel engine services revenue in 1987 was $7.1 million compared with $484.4 million in 2015. While the Company is of the opinion that future acquisition opportunities exist in both its marine transportation and diesel engine services segments, the Company may not be able to continue to grow through acquisitions to the extent that it has in the past.

The Company’s failure to comply with the Foreign Corrupt Practices Act (“FCPA”) could have a negative impact on its ongoing operations. The Company’s operations outside the United States require the Company to comply with a number of United States and international regulations. For example, its operations in countries outside the United States are subject to the FCPA, which prohibits United States companies or their agents and employees from providing anything of value to a foreign official for the purposes of influencing any act or decision of these individuals in their official capacity to help obtain or retain business, direct business to any person or corporate entity, or obtain any unfair advantage. The Company has internal control policies and procedures and has implemented training and compliance programs for its employees and agents with respect to the FCPA. However, the Company’s policies, procedures and programs may not always protect it from reckless or criminal acts committed by its employees or agents, and severe criminal or civil sanctions could be the result of violations of the FCPA. The Company is also subject to the risks that its employees, joint venture partners, and agents outside of the United States may fail to comply with other applicable laws.

The Company’s marine transportation segment is subject to the Jones Act. The Company’s marine transportation segment competes principally in markets subject to the Jones Act, a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States, and manned and owned by United States citizens. The Company presently meets all of the requirements of the Jones Act for its vessels. The loss of Jones Act status could have a significant negative effect on the Company. The requirements that the Company’s vessels be United States built and manned by United States citizens, the crewing requirements and material requirements of the USCG, and the application of United States labor and tax laws increases the cost of United States flag vessels when compared with comparable foreign flag vessels. The Company’s business could be adversely affected if the Jones Act were to be modified so as to permit foreign competition that is not subject to the same United States government imposed burdens. Since the events of September 11, 2001, the United States government has taken steps to increase security of United States ports, coastal waters and inland waterways. The Company believes that it is unlikely that the current cabotage provisions of the Jones Act would be modified or eliminated in the foreseeable future.

The Secretary of Homeland Security is vested with the authority and discretion to waive the Jones Act to such extent and upon such terms as the Secretary may prescribe whenever the Secretary deems that such action is necessary in the interest of national defense. In response to the effects of Hurricanes Katrina and Rita, the Secretary waived the Jones Act generally for the transportation of petroleum products from September 1 to September 19, 2005 and from September 26, 2005 to October 24, 2005. In June 2011, the Secretary waived the Jones Act for the transportation of petroleum released from the Strategic Petroleum Reserve and in November 2012 waived the Jones Act for the transportation of refined petroleum products in the Northeast following Hurricane Sandy. Waivers of the Jones Act, whether in response to natural disasters or otherwise, could result in increased competition from foreign tank vessel operators, which could negatively impact the marine transportation segment.

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The Company’s marine transportation segment is subject to regulation by the USCG, federal laws, state laws and certain international conventions, as well as numerous environmental regulations. The majority of the Company’s vessels are subject to inspection by the USCG and carry certificates of inspection. The crews employed by the Company aboard vessels are licensed or certified by the USCG. The Company is required by various governmental agencies to obtain licenses, certificates and permits for its vessels. The Company’s operations are also affected by various United States and state regulations and legislation enacted for protection of the environment. The Company incurs significant expenses to comply with applicable laws and regulations and any significant new regulation or legislation, including climate change laws or regulations, could have an adverse effect on the Company.

The Company is subject to risks associated with possible climate change legislation, regulation and international accords. Greenhouse gas emissions have increasingly become the subject of a large amount of international, national, regional, state and local attention. On December 7, 2009, the United States Environmental Protection Agency (“EPA”) furthered its focus on greenhouse gas emissions when it issued its endangerment finding in response to a decision of the Supreme Court of the United States. The EPA found that the emission of six greenhouse gases, including carbon dioxide (which is emitted from the combustion of fossil fuels), may reasonably be anticipated to endanger public health and welfare. Based on this finding, the EPA defined the mix of these six greenhouse gases to be “air pollution” subject to regulation under the Clean Air Act. Although the EPA has stated a preference that greenhouse gas regulation be based on new federal legislation rather than the existing Clean Air Act, many sources of greenhouse gas emissions may be regulated without the need for further legislation.

The United States Congress has considered in the past legislation that would create an economy-wide “cap-and-trade” system that would establish a limit (or cap) on overall greenhouse gas emissions and create a market for the purchase and sale of emissions permits or “allowances.” Any proposed cap-and-trade legislation would likely affect the chemical industry due to anticipated increases in energy costs as fuel providers pass on the cost of the emissions allowances, which they would be required to obtain under cap-and-trade to cover the emissions from fuel production and the eventual use of fuel by the Company or its energy suppliers. In addition, cap-and-trade proposals would likely increase the cost of energy, including purchases of diesel fuel, steam and electricity, and certain raw materials used or transported by the Company. Proposed domestic and international cap-and-trade systems could materially increase raw material and operating costs of the Company’s customer base. Future environmental regulatory developments related to climate change in the United States that restrict emissions of greenhouse gases could result in financial impacts on the Company’s operations that cannot be predicted with certainty at this time.

The Company’s marine transportation segment is subject to volatility in the United States production of petrochemicals. For 2015, 47% of the marine transportation segment’s revenues were from the movement of petrochemicals, including the movement of raw materials and feedstocks from one refinery or petrochemical plant to another, as well as the movement of more finished products to end users and terminals for export. During 2015, petrochemical volumes continued to improve compared with 2014 and 2013 primarily due to lower priced domestic natural gas that improved the competitiveness of the United States petrochemical industry in global markets, thereby producing increased marine transportation volumes for basic petrochemicals to both domestic consumers and terminals for export destinations. Higher natural gas prices and other factors could negatively impact the United States petrochemical industry and its production volumes, which would negatively impact the Company.

The Company’s marine transportation segment could be adversely impacted by the construction of tank barges by its competitors. At the present time, there are an estimated 3,850 inland tank barges in the United States, of which the Company operates 898, or 23%. The number of tank barges peaked at an estimated 4,200 in 1982, slowly declined to 2,750 by 2003, and then gradually increased to an estimated 3,850 by the end of 2015. During 2013, the Company estimates that 270 tank barges were placed in service, of which 70 were for the Company, and 70 tank barges were retired, 46 of which were by the Company. During 2014, the Company estimates that 300 tank barges were placed in service, of which 61 were for the Company, and 100 tank barges were retired, 38 of which were by the Company.  During 2015, the Company estimates that 260 tank barges were placed in service, of which 36 were for the Company, and 60 tank barges were retired, 18 of which were by the Company. The increases for 2013, 2014 and 2015 reflect the improved demand for inland petrochemical, refined petroleum products and black oil barges and federal tax incentives on new equipment. Strong tank barge markets for 2013 and 2014 absorbed the additional capacity built by the industry.  With the decline in demand for crude oil and natural gas condensate movements by inland tank barges in 2015 and the movement of such barges to other markets, the Company estimates that approximately 90 tank barges were ordered during 2015 for delivery throughout 2016, three of which are for the Company, and many older tank barges, including an expected 24 by the Company, will be retired, dependent on 2016 market conditions.

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The risk of an oversupply of inland tank barges may be mitigated by the fact that the inland tank barge industry has a mature fleet. Of the estimated 3,850 tank barges in the industry at the present time, approximately 650 are over 30 years old and approximately 250 of those over 40 years old. Given the age profile of the industry inland tank barge fleet, the expectation is that older tank barges will continue to be removed from service and replaced by new tank barges that will enter the fleet, with the extent of the retirements dependent on 2016 petrochemical and refinery production levels and crude oil and natural gas condensate movements, both of which can have a direct effect on industry-wide tank barge utilization, as well as term and spot contract rates.

During 2013, the coastal operations reflected improvements in market conditions with tank barge utilization at 90%, improved to the 90% to 95% range in 2014 and remained in the 90% to 95% range during the majority of 2015, occasionally declining to the high-80% level during portions of the fourth quarter. During 2013 and 2014, the Company experienced increased demand for coastal crude and natural gas condensate moves and success in expanding the coastal customer base to include inland customers with coastal requirements. The Company estimates there are approximately 270 tank barges operating in the 195,000 barrel or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 45 of those are over 30 years old. The Company believes very few coastal tank barges were built during 2013 and one coastal tank barge and tugboat unit was built and placed in service by a competitor during 2014. In January 2014, the Company signed an agreement to construct a 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat unit and, in April 2014, the Company exercised its option for the construction of a second 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat unit.  The first unit was placed in service in late 2015 and the second unit is scheduled to be placed in service in the first half of 2016.  In July 2014, the Company signed agreements to construct two 155,000 barrel coastal articulated tank barge and 6000 horsepower tugboat units, the first for delivery in the 2016 second half and the second in the 2017 first half. The Company also placed orders in 2015 for the construction of one 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017 and two 4900 horsepower coastal tugboats for delivery in 2017.  The Company is aware of eight coastal tank barges placed in service in 2015 by competitors and 14 announced coastal tank barge and tugboat units in the 195,000 barrel or less category under construction by competitors for delivery in 2016 and 2017.

Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability. The cost of fuel during 2015 was approximately 9% of marine transportation revenue. All marine transportation term contracts contain fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 90 day delay before contracts are adjusted depending on the specific contract. In general, the fuel escalation clauses are effective over the long-term in allowing the Company to adjust to changes in fuel costs due to fuel price changes; however, the short-term effectiveness of the fuel escalation clauses can be affected by a number of factors including, but not limited to, specific terms of the fuel escalation formulas, fuel price volatility, navigating conditions, tow sizes, trip routing, and the location of loading and discharge ports that may result in the Company over or under recovering its fuel costs. Spot contract rates generally reflect current fuel prices at the time the contract is signed but do not have escalators for fuel.

Loss of a large customer or other significant business relationship could adversely affect the Company. Four marine transportation customers accounted for approximately 30% of the Company’s 2015 and 25% of 2014 and 2013 revenue. The Company has contracts with these customers expiring in 2016 through 2018. Although the Company considers its relationships with these companies to be strong, the loss of any of these customers could have an adverse effect on the Company.

The Company’s diesel engine services segment has a 50-year relationship with EMD, the largest manufacturer of medium-speed diesel engines. In addition, the Company serves as both an EMD distributor and service center for select markets and locations for both service and parts. Sales and service of EMD products account for approximately 3% of the Company’s revenues for 2015. Although the Company considers its relationship with EMD to be strong, the loss of the EMD distributorship and service rights, or a disruption of the supply of EMD parts, could have a negative impact on the Company’s ability to service its customers.

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United has maintained continuous exclusive distribution rights for MTU and Allison since 1946. United is one of MTU’s top five distributors of off-highway engines in North America, with exclusive distribution rights in Oklahoma, Arkansas, Louisiana and Mississippi. In addition, as a distributor of Allison products, United has distribution rights in Oklahoma, Arkansas and Louisiana. United is also the exclusive distributor for Daimler for engines and related equipment in Oklahoma, Arkansas and Louisiana. Sales and service of MTU and Allison products accounted for approximately 2% of the Company’s revenues during 2015. Although the Company considers its relationships with MTU and Allison to be strong, the loss of MTU, Allison or Daimler distributorships and service rights, or a disruption of the supply of MTU or Allison parts, could have a negative impact on the Company’s ability to service its customers.

The Company is subject to competition in both its marine transportation and diesel engine services segments. The inland and coastal tank barge industry remains very competitive. The Company’s primary competitors are noncaptive inland tank barge operators and coastal operators. The Company also competes with companies who operate refined product and petrochemical pipelines, railroad tank cars and tractor-trailer tank trucks. Increased competition from any significant expansion of or additions to facilities or equipment by the Company’s competitors could have a negative impact on the Company’s results of operations.

The diesel engine services industry is also very competitive. The segment’s primary marine diesel competitors are independent diesel services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities. In the power generation market, the primary competitors are other independent service companies. The segment’s land-based market’s principal competitors are independent diesel engine service and oilfield manufacturing companies and other factory-authorized distributors and service centers. In addition, certain oilfield service companies that are customers of the Company also manufacture and service a portion of their own oilfield equipment. Increased competition in the diesel engine services industry and continued low price of natural gas, crude oil or natural gas condensate, and resulting decline in drilling for such natural resources in North American shale formations, could result in less oilfield equipment being manufactured and remanufactured, lower rates for service and parts pricing and result in less manufacturing, remanufacturing, service and repair opportunities and parts sales for the Company.

Significant increases in the construction cost of tank barges and towboats may limit the Company’s ability to earn an adequate return on its investment in new tank barges and towboats. The price of steel increased significantly from 2006 to 2009, thereby increasing the construction cost of new tank barges and towboats. The Company’s average construction price for a new 30,000 barrel capacity inland tank barge ordered in 2008 for 2009 delivery was approximately 90% higher than in 2000, primarily due to the increase in steel prices. During 2009, the United States and global recession negatively impacted demand levels for inland tank barges and as a result, the construction price of inland tank barges for 2010 delivery fell significantly, primarily due to a significant decrease in steel prices, as well as a decrease in the number of tank barges ordered. The average construction price for tank barges delivered since 2010 has steadily increased, but has remained below the construction price for tank barges delivered in 2009.

The Company’s marine transportation segment could be adversely impacted by the failure of the Company’s shipyard vendors to deliver new vessels according to contractually agreed delivery schedules and terms. The Company contracts with shipyards to build new vessels and currently has many vessels under construction. Construction projects are subject to risks of delay and cost overruns, resulting from shortages of equipment, materials and skilled labor; lack of shipyard availability; unforeseen design and engineering problems; work stoppages; weather interference; unanticipated cost increases; unscheduled delays in the delivery of material and equipment; and financial and other difficulties at shipyards including labor disputes, shipyard insolvency and inability to obtain necessary certifications and approvals. A significant delay in the construction of new vessels or a shipyard’s inability to perform under the construction contract could negatively impact the Company’s ability to fulfill contract commitments and to realize timely revenues with respect to vessels under construction. Significant cost overruns or delays for vessels under construction could also adversely affect the Company’s financial condition, results of operations and cash flows.

The Company’s diesel engine services segment could be adversely impacted by future legislation or additional regulation of hydraulic fracturing practices. The Company, through its United subsidiary, is a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and transportation industries, and a manufacturer of oilfield service equipment, including pressure pumping units. The EPA is studying hydraulic fracturing practices, and legislation may be introduced in Congress that would authorize the EPA to impose additional regulations on hydraulic fracturing. In addition, a number of states have adopted or are evaluating the adoption of legislation or regulations governing hydraulic fracturing. Such federal or state legislation and/or regulations could materially impact customers’ operations and greatly reduce or eliminate demand for the Company’s pressure pumping fracturing equipment and related products. The Company is unable to predict whether future legislation or any other regulations will ultimately be enacted and, if so, the impact on the Company’s diesel engine services segment.

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The Company relies on critical information systems for the operation of its businesses, and the failure of any critical information system, including a cyber-security breach, may adversely impact its businesses.The Company is dependent on its technology infrastructure and must maintain and rely upon critical information systems for the effective and safe operation of its businesses. These information systems include software applications and hardware equipment, as well as data networks and telecommunications.

The Company’s information systems, including the Company’s proprietary vessel management computer system, are subject to damage or interruption from a number of potential sources, including but not limited to, natural disasters, software viruses, power failures and cyber-attacks. The Company has implemented measures such as emergency recovery processes, virus protection software, intrusion detection systems and annual attack and penetration audits to mitigate these risks. However, the Company cannot guarantee that its information systems cannot be damaged or compromised.

Any damage or compromise of its data security or its inability to use or access these critical information systems could adversely impact the efficient and safe operation of its businesses, or result in the failure to maintain the confidentiality of data of its customers or its employees and could subject the Company to increased operating expenses or legal action, which could have an adverse effect on the Company.

The lifting of the United States crude oil export ban in 2015 could adversely impact the Company’s marine transportation segment. Over the last four decades, the ability of United States producers to export domestic crude oil has been limited by the United States government. As crude oil production has increased in the United States due to hydraulic fracturing and shale oil production, there were calls by crude oil producers for the United States government to change its energy policy to ease or lift the crude oil export ban. Effective December 18, 2015, the United States government lifted the crude oil export ban.  As the removal of the export ban is recent, the impact on the Company’s marine transportation operations is not yet determinable, but the easing of the crude oil export ban could result in reduced coastal barge moves which may have an adverse impact on the Company’s marine transportation segment.

Prevailing natural gas and crude oil prices, as well as the volatility of their prices, could have an adverse effect on the Company’s businesses. Demand for tank barge transportation services is driven by the production of volumes of the bulk liquid commodities such as petrochemicals, black oil and refined petroleum products that the Company transports by tank barge. This production can depend on the prevailing level of natural gas and crude oil prices, as well as the volatility of their prices.

In general, lower energy prices are good for the United States economy and typically translate into increased petrochemical and refined product production and therefore increased demand for tank barge transportation services. However, during 2015 lower crude oil prices resulted in a decline in domestic crude oil and natural gas condensate production and reduced volumes to be transported by tank barge. The Company estimates that at the beginning of 2015 there were approximately 550 inland tank barges and 35 coastal tank barges in the 195,000 barrels or less category transporting crude oil and natural gas condensate.  At the end of 2015, the Company estimates that approximately 175 inland tank barges and approximately ten coastal tank barges in the 195,000 barrel or less category were transporting such products, a reduction of approximately 375 inland tank barges and 25 coastal tank barges that have moved into other markets.  Volatility in the price of natural gas and crude oil can also result in heightened uncertainty which may lead to decreased production and delays in new petrochemical and refinery plant construction. Increased competition for available black oil and petrochemical barge moves caused by reduced crude oil and natural gas condensate production could have an adverse impact on the Company’s marine transportation segment.

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Lower energy prices generally result in a decrease in the number of oil and gas wells being drilled. Oilfield service companies reduce their capital spending, resulting in decreased demand for new parts and equipment, including pressure pumping units, provided by the Company’s diesel engine services segment. This may also lead to order cancellations from customers or customers requesting to delay delivery of new equipment. The Company also services offshore supply vessels and offshore drillings rigs operating in the Gulf of Mexico, as well as internationally. Low energy prices may negatively impact the number of wells drilled in the Gulf of Mexico and international waters. In addition to the possibility that decreased energy prices may result in reduced demand for the Company’s services, parts and equipment, energy price volatility may also result in difficulties in the Company’s ability to ramp up and ramp down production on a timely basis and, therefore, could result in an adverse impact on the Company’s diesel engine services segment.

The Company’s diesel engine services segment could be adversely impacted by the construction of pressure pumping units by its competitors. At the beginning of 2015, there was an estimated 19.2 million horsepower of pressure pumping units in North America used in the hydraulic fracturing of shale formations. Increased expansion of, or additions to, facilities or equipment by the Company’s competitors could have a negative impact on the Company’s results of operations. A significant drop in demand due to the low price of crude oil resulted in an oversupply in the pressure pumping market and negatively impacted the Company’s 2015 results of operations.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

The information appearing in Item 1 under “Marine Transportation– Properties” and “Diesel Engine Services– Properties” is incorporated herein by reference. The Company believes that its facilities are adequate for its needs and additional facilities would be available if required.

Item 3. Legal Proceedings

In June 2011, the Company as well as three other companies received correspondence from the EPA concerning ongoing cleanup and restoration activities under CERCLA with respect to a Superfund site, the Gulfco Marine Maintenance Site (“Gulfco”), located in Freeport, Texas. In prior years, various subsidiaries of the Company utilized a successor to Gulfco to perform tank barge cleaning services, sand blasting and repair on certain Company vessels. Since 2005, four named Potentially Responsible Parties (“PRPs”) have participated in the investigation, cleanup and restoration of the site under an administrative order from EPA. Information provided by the PRPs indicates that approximately $9,943,000 was incurred in connection with the cleanup effort. The EPA has incurred oversight costs of approximately $2,258,000. The named PRPs filed suit against the Company and approximately 21 other defendants seeking contribution and indemnity under CERCLA for costs incurred in connection with its activities in cleaning up the Gulfco Site. The Company and other nonparticipating PRPs continue to address settlement terms related to this matter with the Gulfco Restoration Group.

In 2009, the Company was named a PRP in addition to a group of approximately 250 named PRPs under CERCLA with respect to a Superfund site, the Portland Harbor Superfund Site (“Portland Harbor”) in Portland, Oregon. The site was declared a Superfund site in December 2000 as a result of historical heavily industrialized use due to manufacturing, shipbuilding, petroleum storage and distribution, metals salvaging, and electrical power generation activities which led to contamination of Portland Harbor, an urban and industrial reach of the lower Willamette River located immediately downstream of downtown Portland. The Company’s involvement arises from four spills at the site after it was declared a Superfund site, as a result of predecessor entities’ actions in the area. To date, there is no information suggesting the extent of the costs or damages to be claimed from the 250 notified PRPs. Based on the nature of the involvement at the Portland Harbor site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

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In 2000, the Company and a group of approximately 45 other companies were notified that they are PRPs under CERCLA with respect to a Superfund site, the Palmer Barge Line Superfund Site (“Palmer”), located in Port Arthur, Texas. In prior years, Palmer had provided tank barge cleaning services to various subsidiaries of the Company. The Company and three other PRPs entered into an agreement with the EPA to perform a remedial investigation and feasibility study and, subsequently, a limited remediation was performed and is now complete. During the 2007 third quarter, five new PRPs entered into an agreement with the EPA related to the Palmer site. In July 2008, the EPA sent a letter to approximately 30 PRPs for the Palmer site, including the Company, indicating that it intends to pursue recovery of $2,949,000 of costs it incurred in relation to the site. The Company and the other PRPs have resolved the EPA’s past costs claim which was approved by the EPA and Department of Justice. The Company has funded its contribution to settlement and the Consent Decree has been granted by the Court fulfilling all procedural requirements of the settlement.

In January 2015, the Company was named as a defendant in a Complaint filed in the U.S. District Court of the Southern District of Texas, USOR Site PRP Group vs. A&M Contractors, USES, Inc. et al. This is a civil action pursuant to the provisions of  CERCLA and the Texas Solid Waste Disposal Act for recovery of past and future response costs incurred and to be incurred by the USOR Site PRP Group for response activities at the U.S. Oil Recovery Superfund Site.  The property was a former sewage treatment plant owned by Defendant City of Pasadena, Texas from approximately 1945 until it was acquired by U.S. Oil Recovery in January 2009.  Throughout its operating life, the U.S. Oil Recovery facility portion of the USOR Site received and performed wastewater pretreatment of municipal and Industrial Class I and Class II wastewater, characteristically hazardous waste, used oil and oily sludges, and municipal solid waste.  Associated operations were conducted at the MCC Recycling facility portion of the USOR Site after it was acquired by U.S. Oil Recovery from the City of Pasadena in January 2009.  Initially, the plaintiff stayed prosecution of the case pending responses to initial settlement demands.  In January 2016, the Company filed responsive pleadings in this matter.  Based on the nature of the involvement at the USOR site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

With respect to the above sites, the Company has recorded reserves, if applicable, for its estimated potential liability for its portion of the EPA’s past costs claim based on information developed to date including various factors such as the Company’s liability in proportion to other responsible parties and the extent to which such costs are recoverable from third parties.

On July 25, 2011, a subsidiary of the Company was named as a defendant in the U.S. District Court for the Southern District of Texas - Galveston Division, in a complaint styled Figgs. v. Kirby Inland Marine, LP (“Kirby Inland Marine”), et al., which alleges that the plaintiff individually as a vessel tankerman, and on behalf of other current and former similarly situated vessel tankermen employed with the Company, is entitled to overtime pay under the Fair Labor Standards Act. Plaintiffs assert that vessel tankermen are not seamen who are expressly exempt from overtime pay provisions under the law. The case was conditionally certified as a collective action on December 22, 2011 at which time the Court prescribed a notice period for current and former employees to voluntarily participate as plaintiffs. The notice period closed on February 27, 2012. Plaintiffs seek compensatory damages in the form of back pay, attorneys’ fees, cost and liquidated damages. In a recent case that presented substantially the same facts and legal issues, the United States Court of Appeals for the Fifth Circuit ruled that vessel tankermen are seamen who are exempt from the overtime pay provisions of the Fair Labor Standards Act. While the Figgs case is still pending, the Company believes that, after the Fifth Circuit ruling, it will incur no material liability in the case.

On March 22, 2014, two tank barges and a towboat (the M/V Miss Susan), owned by Kirby Inland Marine, LP, a wholly owned subsidiary of the Company, were involved in a collision with the M/S Summer Wind on the Houston Ship Channel near Texas City, Texas. The lead tank barge was damaged in the collision resulting in a discharge of intermediate fuel oil from one of its cargo tanks. The USCG and the National Transportation Safety Board named the Company and the Captain of the M/V Miss Susan, as well as the owner and the pilot of the M/S Summer Wind, as parties of interest in their investigation as to the cause of the incident. Sea Galaxy Ltd is the owner of the M/S Summer Wind. The Company is participating in the natural resource damage assessment and restoration process with federal and state government natural resource trustees.

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The Company and the owner of the M/S Summer Wind filed actions in the U.S. District Court for the Southern District of Texas seeking exoneration from or limitation of liability relating to the foregoing incident as provided for in the federal rules of procedure for maritime claims. The two actions were consolidated for procedural purposes since they both arise out of the same occurrence. There is a separate process for making a claim under OPA. The Company is processing claims properly presented, documented and recoverable under OPA. The Company is named as a party in other lawsuits filed in connection with this incident which are currently stayed by orders entered into by the court in the limitation proceedings, some of which may also have been presented as claims in the limitation proceeding. The actions include allegation of business interruption, loss of profit, loss of use of natural resources and seek unspecified economic and compensatory damages. In addition, the Company has received claims from numerous parties claiming property damage and various economic damages. The Company has also been named as a defendant in a civil action by two crewmembers of the M/V Miss Susan, alleging damages under the general maritime law and the Jones Act. The litigation and claims process is ongoing. In December 2015, the Company submitted evidence in the liability trial in connection with the consolidated limitation actions.  The damages phase of the trial is scheduled for the second quarter of 2016.  The Company believes it has adequate insurance coverage for pollution, marine and other potential liabilities arising from the incident. The Company believes it has accrued adequate reserves for the incident and does not expect the incident to have a material adverse effect on its business or financial condition.

In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations or cash flows. Management believes that it has recorded adequate reserves and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The Company’s common stock is traded on the New York Stock Exchange under the symbol KEX. The following table sets forth the high and low sales prices per share for the common stock for the periods indicated:

	Sales Price
	High		Low
2016
First Quarter (through February 19, 2016)	$	56.10	$	44.63
2015
First Quarter		82.91		70.89
Second Quarter		84.24		73.31
Third Quarter		78.72		59.54
Fourth Quarter		69.05		50.42
2014
First Quarter		106.93		92.86
Second Quarter		117.18		96.00
Third Quarter		124.12		114.11
Fourth Quarter		117.78		78.84

As of February 19, 2016, the Company had 53,806,000 outstanding shares held by approximately 750 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.

The Company does not have an established dividend policy. Decisions regarding the payment of future dividends will be made by the Board of Directors based on the facts and circumstances that exist at that time. Since 1989, the Company has not paid any dividends on its common stock. The Company’s credit agreements contain covenants restricting the payment of dividends by the Company at any time when there is a default under the agreements.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Amount that May Yet Be Purchased Under the Plan
October 1 – October 31, 2015		352,000	$	64.33		—		—
November 1 – November 30, 2015		11,000		63.44		—		—
December 1 – December 31, 2015		278,000		56.15		—		—
Total		641,000	$	60.76		—

Purchases of 352,000 shares of the Company’s common stock in October 2015 were made pursuant to stock trading plans entered into with brokerage firms pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”). The plans were entered into pursuant to authorization by the Board of Directors to repurchase up to $100,000,000 of the Company’s common stock pursuant to Rule 10b5-1. Purchases under the plans were completed in October 2015.

Purchases of 289,000 shares of the Company’s common stock from November 17 through December 15, 2015 were made pursuant to a discretionary authorization. The Company’s total remaining repurchase authorization as of February 19, 2016 was 1,413,000 shares.

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Item 6. Selected Financial Data

The comparative selected financial data of the Company and consolidated subsidiaries is presented for the five years ended December 31, 2015. The information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company in Item 7 and the Financial Statements included under Item 8 (selected financial data in thousands, except per share amounts).

	December 31,
	2015		2014		2013		2012		2011
Revenues:
Marine transportation	$	1,663,090	$	1,770,684	$	1,713,167	$	1,408,893	$	1,194,607
Diesel engine services		484,442		795,634		529,028		703,765		655,810
	$	2,147,532	$	2,566,318	$	2,242,195	$	2,112,658	$	1,850,417
Net earnings attributable to Kirby	$	226,684	$	282,006	$	253,061	$	209,438	$	183,026
Net earnings per share attributable to Kirby common stockholders:
Basic	$	4.12	$	4.95	$	4.46	$	3.75	$	3.35
Diluted	$	4.11	$	4.93	$	4.44	$	3.73	$	3.33
Common stock outstanding:
Basic		54,729		56,674		56,354		55,466		54,191
Diluted		54,826		56,867		56,552		55,674		54,413

	December 31,
	2015		2014		2013		2012		2011
Property and equipment, net	$	2,778,980	$	2,589,498	$	2,370,803	$	2,315,165	$	1,822,173
Total assets	$	4,156,266	$	4,141,909	$	3,682,517	$	3,653,128	$	2,960,411
Long-term debt, including current portion	$	778,834	$	716,700	$	749,150	$	1,135,110	$	802,005
Total equity	$	2,279,196	$	2,264,913	$	2,022,153	$	1,707,054	$	1,454,158

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Statements contained in this Form 10-K that are not historical facts, including, but not limited to, any projections contained herein, are forward-looking statements and involve a number of risks and uncertainties. Such statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” or “continue,” or the negative thereof or other variations thereon or comparable terminology. The actual results of the future events described in such forward-looking statements in this Form 10-K could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company. For a more detailed discussion of factors that could cause actual results to differ from those presented in forward-looking statements, see Item 1A-Risk Factors. Forward-looking statements are based on currently available information and the Company assumes no obligation to update any such statements.

For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings per share.” The weighted average number of common shares outstanding applicable to diluted earnings per share for 2015, 2014 and 2013 were 54,826,000, 56,867,000 and 56,552,000, respectively. The increase in the weighted average number of common shares outstanding for 2014 compared with 2013 primarily reflects the issuance of restricted stock and the exercise of stock options, partially offset by common stock repurchases in the 2014 fourth quarter.  The decrease in the weighted average number of common shares outstanding for 2015 compared with 2014 primarily reflects common stock repurchases in the 2014 fourth quarter and 2015, partially offset by the issuance of restricted stock and the exercise of stock options.

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Overview

The Company is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts, and in Alaska and Hawaii. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. As of December 31, 2015, the Company operated a fleet of 898 inland tank barges with 17.9 million barrels of capacity, and operated an average of 248 inland towboats during 2015. The Company’s coastal fleet consisted of 70 tank barges with 6.0 million barrels of capacity and 73 coastal tugboats. The Company also owns and operates six offshore dry-bulk cargo barges and seven offshore tugboats transporting dry-bulk commodities in United States coastal trade. Through its diesel engine services segment, the Company provides after-market services for medium-speed and high-speed diesel engines, reduction gears and ancillary products for marine and power generation applications, distributes and services high-speed diesel engines, transmissions and pumps, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based oilfield service and oil and gas operator and producer markets.

For 2015, net earnings attributable to Kirby were $226,684,000, or $4.11 per share, on revenues of $2,147,532,000, compared with 2014 net earnings attributable to Kirby of $282,006,000, or $4.93 per share, on revenues of $2,566,318,000.

Marine Transportation

For 2015, 77% of the Company’s revenues were generated by its marine transportation segment. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States. Products transported include intermediate materials used to produce many of the end products used widely by businesses and consumers — plastics, fibers, paints, detergents, oil additives and paper, among others, as well as residual fuel oil, ship bunkers, asphalt, gasoline, diesel fuel, heating oil, crude oil, natural gas condensate and agricultural chemicals. Consequently, the Company’s marine transportation business is directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base.

The Company’s marine transportation segment’s revenues for 2015 decreased 6% compared with 2014. The decrease was primarily due to a 37% decline in the average cost of marine diesel fuel in 2015, which is largely passed through to the customer. Also, a heavier coastal marine shipyard schedule, slightly lower inland and coastal tank barge utilization in the later part of 2015, and lower inland marine transportation term and spot contract rates in 2015 contributed to the year over year decline in revenues. The segment’s operating income for 2015 decreased 13% compared with 2014.  The decrease was primarily due to lower inland term and spot contract pricing, higher labor costs, including pension expense for inland marine vessel employees, higher shipyard activity on coastal equipment, the impact of fuel price adjustments on inland marine affreightment contracts and higher depreciation expense and amortization of major maintenance costs on coastal equipment.  For 2015 and 2014, the inland tank barge fleet contributed 68% and the coastal fleet 32% of marine transportation revenues.

During 2015, the Company’s inland marine transportation markets reflected continued stable levels of demand with tank barge utilization of petrochemicals, black oil, excluding crude oil and natural gas condensate, and refined petroleum products primarily in the 90% to 95% range, occasionally declining to the high-80% level during the 2015 fourth quarter.  Demand for barges moving crude oil and natural gas condensate during 2015 was lower compared with 2014, however, the Company was successful in moving barges from that trade to other markets.  Inland marine transportation operating conditions were challenging during the 2015 third and fourth quarters due to scheduled lock closures along the Gulf Intracoastal Waterway and high water conditions. Operating conditions were also challenging during the 2015 second and fourth quarters due to high water conditions and lock closures on the Mississippi River System, as well as strong currents at river crossings along the Gulf Intracoastal Waterway.

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The Company’s coastal marine transportation markets reflected stable demand with tank barge utilization primarily in the 90% to 95% range during 2015, occasionally declining to the high-80% level during the 2015 fourth quarter.  Utilization in the coastal marine fleet reflected stable demand for the transportation of refined petroleum products and black oil, excluding crude oil and natural gas condensate, and petrochemicals. The demand for crude oil and natural gas condensate movements was lower during 2015 compared with 2014; however, the Company was successful in moving barges from that trade to other markets.  Coastal marine transportation results were impacted in the 2015 second and third quarters due to a significant number of vessels in the shipyard for regulatory drydock maintenance. In addition, during the 2015 third and fourth quarters, the Company shortened the estimated useful lives of certain assets in the coastal fleet prior to their scheduled 2016 shipyards, resulting in an increase in depreciation expense and amortization of major maintenance costs.

During 2015, approximately 80% of the inland marine transportation revenues were under term contracts and 20% were spot contract revenues, thereby providing the operations with a predictable revenue stream. Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 55% of the inland revenues under term contracts during 2015 compared with 56% during 2014.  Rates on inland term contracts renewed in the 2015 first quarter were flat or down slightly compared with term contracts in the first quarter of 2014, while rates for the balance of 2015 decreased in the 1% to 5% average range compared with the corresponding 2014 period.  Spot contract rates, which include the cost of fuel, remained at or above term contract pricing for the majority of 2015, until the fourth quarter when spot contract pricing was at or below term contract pricing. Effective January 1, 2015, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 1.5%, excluding fuel.

During 2015, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% were spot contract revenues.  Coastal time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 90% of the coastal revenues under term contracts during 2015.  During 2014, approximately 85% of the coastal marine transportation revenues were under term contracts and 15% were spot contract revenues.  Coastal time charters represented approximately 90% of the coastal revenues under term contracts during 2014.  Rates on coastal term contracts renewed increased in the 2015 first quarter in the 6% to 8% average range, second quarter in the 4% to 6% average range, third quarter in the 2% to 4% average range, and in the fourth quarter were flat to up slightly compared with corresponding 2014 quarters.  Spot contract rates, which include the cost of fuel, remained above term contract rates during 2015.

The 2015 marine transportation operating margin was 22.5% compared with 24.3% for 2014. The results reflected continued stable demand across the majority of the Company’s inland and coastal markets, but 2015 was negatively impacted by lower inland marine transportation term and spot contract rates, the impact of fuel price adjustments on inland marine affreightment contracts, higher coastal marine transportation depreciation expense and amortization of major maintenance costs in the 2015 third and fourth quarters, higher shipyard activity in the coastal marine transportation fleet in the 2015 second and third quarters, higher operating labor costs due to vessel salary increases effective January 1, 2015, and increased pension expense for inland marine vessel personnel resulting from actuarial changes to mortality tables and a lower discount rate.

Diesel Engine Services

During 2015, the diesel engine services segment generated 23% of the Company’s revenues, of which 52% was generated from overhauls and service, 28% from direct parts sales and 20% from manufacturing. The results of the diesel engine services segment are largely influenced by the economic cycles of the marine and power generation markets and the land-based oilfield service and oil and gas operator and producer markets.

Diesel engine services revenues for 2015 decreased 39% and operating income decreased 68% compared with 2014. The lower revenues in 2015 compared to 2014 were primarily due to the lack of demand for the manufacture and remanufacture of pressure pumping units and other oilfield service equipment in the land-based market and decreased demand for service and distribution of parts, engines and transmissions due to the impact of the decline in the price of crude oil and decreased drilling activity. With the reduction in activity levels, oilfield service customers in the land-based market continued to delay new orders and postpone delivery of existing orders for new pressure pumping units and other oilfield service equipment. The marine diesel engine services market declined modestly, due primarily to weakness in the Gulf of Mexico oilfield services market. The power generation market was stable, benefiting from major generator set upgrades and parts sales for both domestic and international power generation customers. The 2015 first quarter results included $1,111,000 of severance charges in response to the reduced activity in manufacturing in the land-based market. The 2015 third quarter results included $702,000 of severance charges primarily in response to the reduced activity in the Gulf of Mexico oilfield services market.

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The diesel engine services operating margin for 2015 was 3.9% compared with 7.5% for 2014. The operating margin for 2015 reflected weakness in the land-based market due to the negative impact of the reduced oilfield service activity levels, weakness in the Gulf of Mexico oilfield services market, as well as the $1,111,000 first quarter 2015 and $702,000 third quarter 2015 severance charges.

Cash Flow and Capital Expenditures

The Company continued to generate strong operating cash flow during 2015 with net cash provided by operating activities of $521,305,000 compared with $438,909,000 of net cash provided by operating activities for 2014. The 19% increase was primarily from a $128,306,000 net increase in cash flows from changes in operating assets and liabilities, a $22,928,000 increase in depreciation and amortization expense and a $5,717,000 increase in amortization of major maintenance costs, partially offset by a $15,221,000 decrease in provision for deferred income taxes and $56,638,000 of lower net earnings.  In addition, during 2015 and 2014, the Company generated cash of $3,712,000 and $7,519,000, respectively, from the exercise of stock options and $24,429,000 and $10,393,000, respectively, from proceeds from the disposition of assets.

For 2015, cash generated and borrowings under the Company’s revolving credit facility were used for capital expenditures of $345,475,000, including $70,956,000 for inland tank barge and towboat construction, $74,442,000 for progress payments on the construction of two 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat units, one of which was placed in service in late 2015 and the second scheduled to be placed in service in mid-2016, $33,030,000 for progress payments on the construction of two 155,000 barrel coastal articulated tank barge and 6000 horsepower tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, $8,468,000 for progress payments on the construction of two 4900 horsepower coastal tugboats, $1,600,000 for progress payments on the construction of a 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017, and $156,979,000 primarily for upgrading existing marine equipment, and marine transportation and diesel engine services facilities. The Company purchased six inland pressure tank barges for $41,250,000 in February 2015. Cash generated and borrowings under the Company’s revolving credit facility in 2015 were also used for the repurchase of 3,316,000 shares of the Company’s common stock for $241,105,000 and to refinance the $100,000,000 outstanding under its term loan agreement. The Company’s debt-to-capitalization ratio increased to 25.5% at December 31, 2015 from 24.0% at December 31, 2014. The increase was primarily due to an increase of $62,134,000 in outstanding debt and an increase in total equity of $14,283,000. The increase in total equity was primarily due to net earnings attributable to Kirby for 2015 of $226,684,000, exercises of stock options and the amortization of unearned equity compensation, partially offset by treasury stock purchases of $241,105,000. As of December 31, 2015, the Company had $278,834,000 outstanding under its revolving credit facility and $500,000,000 of senior notes outstanding.

During 2015, the Company’s inland marine transportation operations took delivery of 36 new inland tank barges with a total capacity of approximately 489,000 barrels, acquired six inland pressure tank barges with a total capacity of approximately 97,000 barrels and retired 18 inland tank barges, returned eight leased inland tank barges and transferred two tank barges into the coastal fleet, reducing its capacity by approximately 421,000 barrels. As a result, during 2015, the Company added a net 14 inland tank barges and approximately 165,000 barrels of capacity.

The Company projects that capital expenditures for 2016 will be in the $220,000,000 to $240,000,000 range. The 2016 construction program will consist of three inland tank barges with a total capacity of 86,000 barrels, one inland towboat, progress payments on the construction of a 185,000 barrel coastal articulated tank barge and tugboat unit scheduled to be placed in service in mid-2016, progress payments on the construction of two 155,000 barrel coastal articulated tank barge and tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, progress payments on the construction of two 4900 horsepower coastal tugboats and progress payments on the construction of a 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017. Based on current commitments, steel prices and projected delivery schedules, the Company’s 2016 payments on new inland tank barges and the towboat will be approximately $1,000,000, 2016 progress payments on the construction of the 185,000 barrel and two 155,000 barrel coastal articulated tank barge and tugboat units will be approximately $66,000,000 and 2016 progress payments on the construction of the two 4900 horsepower coastal tugboats and the construction of the 35,000 barrel coastal petrochemical tank barge will be approximately $29,000,000. The balance of approximately $124,000,000 to $144,000,000 is primarily capital upgrades and improvements to existing marine equipment, and marine transportation and diesel engine services facilities.

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Outlook

Petrochemical, black oil and refined petroleum products inland tank barge utilization remained relatively stable during 2015, in the 90% to 95% range, with occasional declines to the high-80% level during the fourth quarter. The United States petrochemical industry continued to see strong production levels for both domestic consumption and exports. Low priced domestic natural gas, a basic feedstock for the United States petrochemical industry, has provided the industry with a competitive advantage relative to foreign petrochemical producers. As a result, United States petrochemical production remained strong throughout 2015, thereby producing stable marine transportation volumes of basic petrochemicals to both domestic consumers and terminals for export destinations. The black oil and refined petroleum products markets also remained stable throughout 2015, primarily due to continued high United States refinery utilization, aided by lower crude oil prices, higher vehicle miles driven and the export of refined petroleum products and heavy fuel oils. The Company’s black oil market did reflect continued softness in the movement of crude oil and natural gas condensate, however, the Company was successful in moving barges from that trade to other markets.

The United States petrochemical industry is globally competitive based on a number of factors, including a highly integrated and efficient transportation system of pipelines, tank barges, railroads and trucks, older yet well maintained and operated facilities, and a low cost feedstock slate, which includes natural gas. Numerous United States producers have announced plans for new plants, capacity expansions and the reopening of idled petrochemical facilities, the majority of which are expected to be completed by the end of 2017. The current production volumes from the Company’s petrochemical and refinery customers have resulted in the Company’s inland petrochemical, black oil, excluding crude oil and natural gas condensate, and refined petroleum products tank barge fleet utilization being relatively consistent in the 90% to 95% range throughout the majority of 2015.

Uncertainty in future crude oil volumes to be moved by tank barge and additional pipelines, coupled with the large number of tank barges built during the last several years, has currently resulted in some excess industry-wide tank barge capacity. This extra capacity has placed inland tank barge term contract rates under some pressure. The Company’s inland term contract rates renewed in the 2015 first quarter were flat or down slightly compared with term contract rates in the 2014 first quarter, while rates for the balance of 2015 decreased in the 1% to 5% average range compared with the corresponding 2014 period.  Spot contract rates, which include the cost of fuel, remained at or above term contract pricing for the majority of 2015, until the fourth quarter when the spot contract pricing was at or below term contract pricing.  As a result, the Company remains cautious with 2016 pricing expectations for the inland marine transportation markets and expects continued modest pricing pressure. To date, the industry has generally absorbed tank barges returned from crude oil and condensate service and future tank barge demand for petrochemical and refined petroleum products volumes from increased production from current facilities, plant expansions or the reopening of idled facilities could offset further declines in crude oil and condensate transportation movements, should they occur. For the 2016 first quarter, the Company anticipates some negative impact on the inland marine transportation markets from challenging high water and winter weather operating conditions on the inland river systems.

In the coastal marine transportation market, uncertainty around crude oil prices and supplies has resulted in some reluctance among certain customers to extend term contracts and this will likely lead to an increase in the number of coastal vessels operating in the spot market. For 2016, the Company expects utilization for both the inland and coastal markets to be in the high-80% to low-90% range.

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As of December 31, 2015, the Company estimated there were approximately 3,850 inland tank barges in the industry fleet, of which approximately 650 were over 30 years old and approximately 250 of those over 40 years old. Given the age profile of the industry inland tank barge fleet, the expectation is that older tank barges will continue to be removed from service and replaced by new tank barges. During 2015, with continued stable demand for inland petrochemical and black oil tank barges, the Company estimates approximately 260 inland tank barges were delivered. The Company estimates approximately 90 tank barges were ordered during 2015 for delivery throughout 2016. In 2014 and 2015, the Company ordered 38 tank barges, of which 30 were 10,000 barrel and eight were 30,000 barrel tank barges. Historically, 75 to 150 older inland tank barges are retired from service each year industry-wide, with the extent of the retirements dependent on petrochemical and refinery production levels, and crude oil and natural gas condensate movements, both of which can have a direct effect on industry-wide tank barge utilization, as well as term and spot contract rates.

As of December 31, 2015, the Company estimated there were approximately 270 tank barges operating in the 195,000 barrel or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 45 of those were over 30 years old. The Company believes very few, if any, coastal tank barges in the 195,000 barrel or less category were built during 2012 and 2013 and one coastal tank barge and tugboat unit was built and placed in service by a competitor during 2014. During 2014 and the majority of 2015, coastal tank barge utilization was in the 90% to 95% range. In 2014 and 2015, the Company placed orders for the construction of two 185,000 barrel coastal articulated tank barge and tugboat units, one of which was placed in service in late 2015 and the second scheduled to be placed in service in mid-2016, two 155,000 barrel coastal articulated tank barge and tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, one 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017 and two 4900 horsepower coastal tugboats. The Company is also aware of 14 announced coastal tank barge and tugboat units in the 195,000 barrel or less category under construction by competitors for delivery in 2016 and 2017.

In the diesel engine services segment, with the current crude oil environment and corresponding announced capital spending reductions by oilfield service and oil and gas operator and producer companies, the Company’s land-based customers during 2015 continued to delay new orders and postpone delivery of existing orders for new pressure pumping units and other oilfield service equipment. Also, inbound orders for the manufacturing of oilfield service equipment have essentially stopped and the remanufacturing of pressure pumping units has declined significantly. The distribution portion of the land-based market, including parts, engine and transmission sales and service, is at depressed levels. The Company has taken aggressive measures to reduce costs, including reducing the staffing level in the land-based manufacturing area by approximately 40%. The Company anticipates its land-based market will generate quarterly operating losses through the first half of 2016.

For the marine diesel engine services market, given the positive inland and coastal marine transportation markets, service activity levels should remain stable during 2016, but continued weakness is expected in the Gulf of Mexico oilfield services market. The power generation market should remain stable, benefiting from engine-generator set upgrades and parts sales for both domestic and international customers.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates its estimates and assumptions on an ongoing basis based on a combination of historical information and various other assumptions that are believed to be reasonable under the particular circumstances. Actual results may differ from these estimates based on different assumptions or conditions. The Company believes the critical accounting policies that most impact the consolidated financial statements are described below. It is also suggested that the Company’s significant accounting policies, as described in the Company’s financial statements in Note 1, Summary of Significant Accounting Policies, be read in conjunction with this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Accounts Receivable. The Company extends credit to its customers in the normal course of business. The Company regularly reviews its accounts and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information. Estimates of uncollectible amounts are revised each period, and changes are recorded in the period they become known. Historically, credit risk with respect to these trade receivables has generally been considered minimal because of the financial strength of the Company’s customers; however, a United States or global recession or other adverse economic condition could impact the collectability of certain customers’ trade receivables which could have a material effect on the Company’s results of operations.

Property, Maintenance and Repairs. Property is recorded at cost. Improvements and betterments are capitalized as incurred. Depreciation is recorded on the straight-line method over the estimated useful lives of the individual assets. When property items are retired, sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts with any gain or loss on the disposition included in the statement of earnings. Maintenance and repairs on vessels built for use on the inland waterways are charged to operating expense as incurred and includes the costs incurred in USCG inspections unless the shipyard extends the life or improves the operating capacity of the vessel which results in the costs being capitalized. The Company’s ocean-going vessels are subject to regulatory drydocking requirements after certain periods of time to be inspected, have planned major maintenance performed and be recertified by the ABS. These recertifications generally occur twice in a five year period. The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed. Drydocking expenditures that extend the life or improve the operating capability of the vessel result in the costs being capitalized. Routine repairs and maintenance on ocean-going vessels are expensed as incurred. Interest is capitalized on the construction of new ocean-going vessels.

The Company reviews long-lived assets for impairment by vessel class whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of the assets is measured by a comparison of the carrying amount of the assets to future net cash expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There are many assumptions and estimates underlying the determination of an impairment event or loss, if any. The assumptions and estimates include, but are not limited to, estimated fair market value of the assets and estimated future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used, and estimated salvage values. Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result.

Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill. Management monitors the recoverability of goodwill on an annual basis, or whenever events or circumstances indicate that interim impairment testing is necessary. The amount of goodwill impairment, if any, is typically measured based on projected discounted future operating cash flows using an appropriate discount rate. The assessment of the recoverability of goodwill will be impacted if estimated future operating cash flows are not achieved. There are many assumptions and estimates underlying the determination of an impairment event or loss, if any. Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result.

Accrued Insurance. The Company is subject to property damage and casualty risks associated with operating vessels carrying large volumes of bulk liquid and dry cargo in a marine environment. The Company maintains insurance coverage against these risks subject to a deductible, below which the Company is liable. In addition to expensing claims below the deductible amount as incurred, the Company also maintains a reserve for losses that may have occurred but have not been reported to the Company, or are not yet fully developed. The Company uses historic experience and actuarial analysis by outside consultants to estimate an appropriate level of reserves. If the actual number of claims and magnitude were substantially greater than assumed, the required level of reserves for claims incurred but not reported or fully developed could be materially understated. The Company records receivables from its insurers for incurred claims above the Company’s deductible. If the solvency of the insurers became impaired, there could be an adverse impact on the accrued receivables and the availability of insurance.

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Results of Operations

The Company reported 2015 net earnings attributable to Kirby of $226,684,000, or $4.11 per share, on revenues of $2,147,532,000, compared with 2014 net earnings attributable to Kirby of $282,006,000, or $4.93 per share, on revenues of $2,566,318,000, and 2013 net earnings attributable to Kirby of $253,061,000, or $4.44 per share, on revenues of $2,242,195,000.

Marine transportation revenues for 2015 were $1,663,090,000, or 77% of total revenues, compared with $1,770,684,000, or 69% of total revenues for 2014, and $1,713,167,000, or 76% of total revenues for 2013. Diesel engine services revenues for 2015 were $484,442,000, or 23% of total revenues, compared with $795,634,000, or 31% of total revenues for 2014, and $529,028,000, or 24% of total revenues for 2013.

Marine Transportation

The Company, through its marine transportation segment, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts, and in Alaska and Hawaii. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. As of December 31, 2015, the Company operated 898 inland tank barges, including 31 leased barges, with a total capacity of 17.9 million barrels. This compares with 884 inland tank barges operated as of December 31, 2014, including 39 leased barges, with a total capacity of 17.8 million barrels. The Company operated an average of 248 inland towboats during 2015, of which an average of 84 were chartered, compared with 251 during 2014, of which an average of 79 were chartered. The Company’s coastal tank barge fleet as of December 31, 2015 consisted of 70 tank barges, including eight of which were leased, with 6.0 million barrels of capacity, and 73 tugboats, six of which were chartered. This compares with 69 coastal tank barges operated as of December 31, 2014, eight of which were leased, with 6.0 million barrels of capacity, and 74 coastal tugboats, six of which were chartered. As of December 31, 2015 and 2014, the Company operated six offshore dry-bulk cargo barge and tugboat units engaged in the offshore transportation of dry-bulk cargoes. The Company also owns a two-thirds interest in Osprey which transports project cargoes and cargo containers by barge, as well as a 51% interest in a shifting operation and fleeting facility for dry cargo barges on the Houston Ship Channel.

 The following table sets forth the Company’s marine transportation segment’s revenues, costs and expenses, operating income and operating margins for the three years ended December 31, 2015 (dollars in thousands):

	2015			2014			% Change 2014 to 2015			2013			% Change 2013 to 2014
Marine transportation revenues	$	1,663,090		$	1,770,684			(6	)%	$	1,713,167			3	%
Costs and expenses:
Costs of sales and operating expenses		981,525			1,053,390			(7	)		1,029,040			2
Selling, general and administrative		112,193			119,087			(6	)		112,272			6
Taxes, other than on income		18,732			14,324			31			14,026			2
Depreciation and amortization		175,798			154,019			14			149,574			3
		1,288,248			1,340,820			(4	)		1,304,912			3
Operating income	$	374,842		$	429,864			(13	)%	$	408,255			5	%
Operating margins		22.5	%		24.3	%					23.8	%

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The following table shows the marine transportation markets serviced by the Company, the marine transportation revenue distribution for 2015, products moved and the drivers of the demand for the products the Company transports:

Markets Serviced	2015 Revenue Distribution	Products Moved	Drivers
Petrochemicals	47%	Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene	Consumer non-durables —70% Consumer durables — 30%
Black Oil	30%	Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Ship Bunkers	Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction
Refined Petroleum Products	20%	Gasoline, No. 2 Oil, Jet Fuel, Heating Oil,  Diesel Fuel, Ethanol	Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization
Agricultural Chemicals	3%	Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia	Corn, Cotton and Wheat Production, Chemical Feedstock Usage

2015 Compared with 2014

Marine Transportation Revenues

Marine transportation revenues for 2015 decreased 6% when compared with 2014 primarily due to a 37% decline in the average cost of marine diesel fuel in 2015, which is largely passed through to the customer. Also, a heavier coastal marine shipyard schedule, slightly lower inland and coastal tank barge utilization in the later part of 2015, and lower inland marine transportation term and spot contract rates contributed to the year over year decline in revenues. For 2015 and 2014, the inland tank barge fleet contributed 68% and the coastal fleet contributed 32% of marine transportation revenues.  The Company’s inland and coastal petrochemical, black oil and refined petroleum products fleets achieved relatively consistent tank barge utilization in the 90% to 95% range throughout the majority of 2015, consistent with 2014, and occasionally declined to the high-80% level during the 2015 fourth quarter.

The petrochemical market, the Company’s largest market, contributed 47% of marine transportation revenues for 2015, reflecting continued stable volumes from Gulf Coast petrochemical plants for both domestic consumption and to terminals for export destinations. Low priced domestic natural gas, a basic feedstock for the United States petrochemical industry, has provided the industry with a competitive advantage relative to foreign petrochemical producers.

The black oil market, which contributed 30% of marine transportation revenues for 2015, reflected continued stable demand driven by high refinery production levels and the export of refined petroleum products and fuel oils. Demand for crude oil and natural gas condensate movements declined during 2015; however, the Company was successful in moving barges from that trade to other markets. The Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast, however at reduced levels compared with 2014.

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The refined petroleum products market, which contributed 20% of marine transportation revenues for 2015, reflected continued stable demand, driven by high refinery production levels, for the movement of products in the inland and coastal markets. The refined petroleum products market was also driven by a cold winter in the Northeast that increased the demand for heating oil during the 2015 first quarter and by additional vehicle miles driven during 2015.

The agricultural chemical market, which contributed 3% of marine transportation revenues for 2015, saw typical seasonal demand for transportation of both domestically produced and imported products during 2015.

For 2015, the inland operations incurred 7,924 delay days, 2% more than the 7,804 delay days that occurred during 2014. Delay days measure the lost time incurred by a tow (towboat and one or more tank barges) during transit when the tow is stopped due to weather, lock conditions or other navigational factors. Operating conditions were challenging during the 2015 third and fourth quarters due to scheduled lock closures along the Gulf Intracoastal Waterway and high water conditions. Operating conditions were also challenging during the 2015 second and fourth quarters due to high water conditions and lock closures on the Mississippi River System, as well as strong currents at river crossings along the Gulf Intracoastal Waterway.

During 2015 and 2014, approximately 80% of the inland marine transportation revenues were under term contracts and 20% were spot contract revenues, thereby providing the operations with a predictable revenue stream. Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 55% of the inland revenues under term contracts during 2015 compared with 56% during 2014.

During 2015, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% were under spot contracts. During 2014, 85% of coastal marine transportation revenues were under term contracts and 15% were under spot contracts.  Coastal time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 90% of the coastal revenues under term contracts during 2015 and 2014.

Rates on inland term contracts renewed in the 2015 first quarter were flat or down slightly compared with term contracts in the first quarter of 2014, while rates for the balance of 2015 decreased in the 1% to 5% average range compared with the corresponding 2014 period.  Spot contract rates, which include the cost of fuel, remained at or above term contract pricing for the majority of 2015 until the fourth quarter when spot contract pricing was at or below term contract pricing.  Effective January 1, 2015, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 1.5%, excluding fuel.

Rates on coastal term contracts renewed increased in the 2015 first quarter in the 6% to 8% average range, second quarter in the 4% to 6% average range, third quarter in the 2% to 4% average range, and in the fourth quarter were flat to up slightly compared with corresponding 2014 quarters.  Spot contract rates, which include the cost of fuel, remained above term contract rates during 2015.

Marine Transportation Costs and Expenses

Costs and expenses for 2015 decreased 4% compared with 2014. Costs of sales and operating expenses for 2015 decreased 7% compared with 2014, reflecting a 37% decline in the average cost of marine diesel fuel for 2015, which is largely passed through to the customer. This decrease was partially offset by higher operating labor costs due to vessel salary increases effective January 1, 2015, increased pension expense for inland marine vessel personnel resulting from actuarial changes to mortality tables and a lower discount rate, and higher shipyard activity in the coastal marine transportation market in the 2015 second and third quarters.

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The inland marine transportation fleet operated an average of 248 towboats during 2015, of which an average of 84 towboats were chartered, compared with 251 during 2014, of which an average of 79 towboats were chartered. As demand, or anticipated demand, increases or decreases, as new tank barges are added to the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, such as the heavy ice and high water conditions that occurred in the 2015 first and second quarters, and high water and scheduled lock closures along the Gulf Intracoastal Waterway in the 2015 third and fourth quarters, the Company charters-in or releases chartered towboats in an effort to balance horsepower needs with current requirements. The Company has historically used chartered towboats for approximately one-third of its horsepower requirements.

During 2015, the inland operations consumed 42.9 million gallons of diesel fuel compared to 44.7 million gallons consumed during 2014. The average price per gallon of diesel fuel consumed during 2015 was $1.92 compared with $3.06 for 2014. Fuel escalation and de-escalation clauses on term contracts are designed to rebate fuel costs when prices decline and recover additional fuel costs when fuel prices rise; however, there is generally a 30 to 90 day delay before the contracts are adjusted. Spot contracts do not have escalators for fuel.

Taxes, other than on income, for 2015 increased 31% compared with 2014. The increase is mainly due to higher property taxes on marine transportation equipment and an increase in the inland waterways user tax rate from 20 to 29 cents per gallon of fuel consumed effective April 1, 2015. This user tax is largely passed through to the customer.

Selling, general and administrative expenses for 2015 decreased 6% compared with 2014, primarily a reflection of a $2,215,000 severance charge in the 2014 first quarter and lower professional fees in the 2015 first and second quarters, partially offset by salary increases effective April 1, 2015.

Depreciation and amortization for 2015 increased 14% compared with 2014.  The increase was primarily attributable to increased capital expenditures in both the inland and coastal fleets, including new inland tank barges and towboats, as well as six inland pressure tank barges purchased in February 2015. In addition, during the 2015 third and fourth quarters, the Company shortened the estimated useful lives of certain assets in the coastal fleet prior to their scheduled 2016 shipyards, resulting in an increase in depreciation expense.

Marine Transportation Operating Income and Operating Margins

Marine transportation operating income for 2015 decreased 13% compared with 2014. The operating margin for 2015 was 22.5% compared with 24.3% for 2014. The results reflected continued stable demand across the majority of the Company’s inland and coastal markets, but 2015 was negatively impacted by lower inland marine transportation term and spot contract rates, the impact of fuel price adjustments on inland marine affreightment contracts, higher coastal marine transportation depreciation expense and amortization of major maintenance costs in the 2015 third and fourth quarters, higher shipyard activity in the coastal marine transportation fleet in the 2015 second and third quarters, higher operating labor costs due to vessel salary increases effective January 1, 2015, and increased pension expense for inland marine vessel personnel resulting from actuarial changes to mortality tables and a lower discount rate.

2014 Compared with 2013

Marine Transportation Revenues

Marine transportation revenues for 2014 increased 3% when compared with 2013, reflecting continued strong utilization for both the inland and coastal markets and favorable pricing trends. For 2014 and 2013, the inland tank barge fleet contributed 68% and 69%, respectively, and the coastal fleet 32% and 31%, respectively, of marine transportation revenues. The Company’s inland petrochemical, black oil and refined petroleum products fleets achieved consistent tank barge utilization in the 90% to 95% range throughout 2014, consistent with 2013. The results were negatively impacted by changes in the Company’s Florida bunkering operation where a customer change led to a decrease in dedicated equipment and reduced revenue. The coastal equipment utilization for 2014 was in the 90% to 95% range, an improvement over the 90% range reported for 2013, aided by increased transportation of crude oil and natural gas condensate, continued success in expanding the coastal customer base to inland customers with coastal requirements, and cold weather during the 2014 first quarter that increased the demand for the transportation of heating oil.

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The petrochemical market, the Company’s largest market, contributed 45% of marine transportation revenues for 2014, reflecting continued strong volumes from Gulf Coast petrochemical plants for both domestic consumers and to terminals for export destinations. Low priced domestic natural gas, a basic feedstock for the United States petrochemical industry, has provided the industry with a competitive advantage against foreign petrochemical producers.

The black oil market, which contributed 33% of marine transportation revenues for 2014, reflected continued strong demand driven by steady refinery production levels, the export of refined petroleum products and fuel oils, and demand for crude oil and natural gas condensate transportation from the Eagle Ford shale formations in South Texas both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment, and for the movement of Canadian and Utica crude oil and natural gas condensate downriver from the Midwest to the Gulf Coast. The coastal fleet also moved Bakken crude from Albany, New York to Northeast refineries and from the Columbia River to West Coast refineries during 2014.

The refined petroleum products market, which contributed 19% of marine transportation revenues for 2014, reflected continued strong demand for the movement of products in the inland and coastal markets, benefiting from additional volumes from major customers and aided by the export of refined petroleum products and heavy fuel oils. The coastal refined petroleum products market was also driven by continued success in expanding the coastal customer base to inland customers with coastal requirements, as well as a cold winter in the Northeast that increased the demand for heating oil during the 2014 first quarter.

The agricultural chemical market, which contributed 3% of 2014 marine transportation revenues, saw strong demand for both domestically produced and imported products during the first quarter but was hindered by the slow transit times created by the harsh Midwest operating conditions throughout the 2014 first quarter. Strong seasonal demand continued through the months of April and May 2014. The 2014 third quarter saw typical demand with the start of the fall fertilizer fill, with demand continuing into the fourth quarter.

For 2014, the inland operations incurred 7,804 delay days, consistent with the 7,843 delay days that occurred during 2013. Delay days measure the lost time incurred by a tow (towboat and one or more tank barges) during transit when the tow is stopped due to weather, lock conditions or other navigational factors. Operating conditions during the 2014 third and fourth quarters were seasonally normal while operating conditions during the 2014 first quarter and portion of the second quarter were challenging, as transit times along the Gulf Intracoastal Waterway were affected by numerous strong frontal systems and fog, as well as heavy ice conditions on the Illinois, upper Mississippi and upper Ohio Rivers for the majority of the first quarter. While the Company continued to operate on these rivers despite the heavy ice conditions, transit times were increased, and either additional horsepower was required or tow sizes were reduced.

During 2014, approximately 80% of marine transportation’s inland revenues were under term contracts and 20% were spot contract revenues compared with 75% term contracts and 25% spot contract revenues for 2013. The 2014 increase in term contract revenues was primarily due to increased volumes from term contract customers, thereby reducing equipment available for spot contract movements. The harsh winter weather conditions during the 2014 first quarter and portion of the second quarter that required more equipment to meet contract volumes also contributed to the higher term contract revenues. Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 56% of the revenues under term contracts during 2014 compared with 58% during 2013. The 80% term contract and 20% spot contract mix provides the inland operations with a predictable revenue stream.

During 2014, approximately 85% of the marine transportation’s coastal revenues were under term contracts and approximately 15% were spot contract revenues compared with 75% term contracts and 25% spot contracts for 2013. The increase in term contract revenues reflected stronger demand for coastal tank barges. Coastal time charters represented approximately 90% of the revenues under term contracts during 2014 and 2013.

Rates on inland term contract rates renewed in the 2014 first and second quarters increased in the 3% to 5% average range compared with the 2013 first and second quarters. Rates on inland term contracts renewed in the 2014 third and fourth quarters increased in the 1% to 3% average range compared with term contracts renewed in the third and fourth quarters of 2013. Spot contract rates, which include the cost of fuel, increased modestly in each 2014 quarter compared with the prior quarters, except the spot contract rates in the 2014 fourth quarter were essentially flat when compared with the 2014 third quarter. Effective January 1, 2014, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 1.7%, excluding fuel.

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Rates on coastal term contracts renewed in the 2014 first, second and third quarters increased in the 7% to 9% average range and in the 2014 fourth quarter in the 5% average range, compared with term contracts renewed in the comparable 2013 quarters. Spot contract rates, which include the cost of fuel, continued to improve during 2014 and remained above term contract rates.

Marine Transportation Costs and Expenses

Costs and expenses for 2014 increased 3% compared with 2013. Costs of sales and operating expenses for 2014 increased 2% compared 2013.

The inland operations operated an average of 251 towboats during 2014, of which an average of 79 towboats were chartered, compared with 256 during 2013, of which an average of 77 towboats were chartered. As demand, or anticipated demand, increases or decreases, as new tank barges are added to the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, such as the heavy ice conditions on the Illinois, upper Mississippi and upper Ohio Rivers that occurred in the 2014 first quarter and portion of the second quarter, the Company charters-in or releases chartered towboats in an effort to balance horsepower needs with current requirements. The Company has historically used chartered towboats for approximately one-third of its horsepower requirements.

During 2014, the inland operations consumed 44.7 million gallons of diesel fuel compared to 43.3 million gallons consumed during 2013. The average price per gallon of diesel fuel consumed during 2014 was $3.06 compared with $3.21 for 2013. Fuel escalation and de-escalation clauses on term contracts are designed to rebate fuel costs when prices decline and recover additional fuel costs when fuel prices rise; however, there is generally a 30 to 90 day delay before the contracts are adjusted. Spot contracts do not have escalators for fuel.

Selling, general and administrative expenses for 2014 increased 6% compared with 2013, reflecting salary increases effective April 1, 2014 and higher professional fees in the 2014 first half. In addition, the increase for 2014 reflected a first quarter severance charge of $2,215,000 and the 2013 first quarter included a $370,000 severance charge.

Depreciation and amortization for 2014 increased 3% compared with 2013. The increase was primarily attributable to increased capital expenditures, including new inland tank barges and towboats.

Marine Transportation Operating Income and Operating Margins

Marine transportation operating income for 2014 increased 5% compared with 2013. The operating margin was 24.3% for 2014 compared with 23.8% for 2013. The higher 2014 operating income and operating margin was a reflection of continued high inland and coastal equipment utilization, leading to higher inland and coastal term and spot contract rates negotiated throughout 2013 and 2014. The higher operating income and operating margin for 2014 was partially offset by the winter weather conditions experienced throughout the 2014 first quarter and portion of the second quarter and changes in the Company’s Florida bunkering operation.

Diesel Engine Services

The Company, through its diesel engine services segment, sells genuine replacement parts, provides service mechanics to overhaul and repair medium-speed and high-speed diesel engines, transmissions, reduction gears, pumps, maintains facilities to rebuild component parts or entire medium-speed and high-speed diesel engines, transmissions and reduction gears, and manufactures and remanufactures oilfield service equipment, including pressure pumping units. The Company primarily services the marine, power generation and the land-based oilfield service and oil and gas operator and producer markets.

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The following table sets forth the Company’s diesel engine services segment’s revenues, costs and expenses, operating income and operating margins for the three years ended December 31, 2015 (dollars in thousands):

	2015			2014			% Change 2014 to 2015			2013			% Change 2013 to 2014
Diesel engine services revenues	$	484,442		$	795,634			(39	)%	$	529,028			50	%
Costs and expenses:
Costs of sales and operating expenses		380,841			641,492			(41	)		419,765			53
Selling, general and administrative		70,267			80,309			(13	)		53,595			50
Taxes, other than on income		1,915			2,307			(17	)		1,805			28
Depreciation and amortization		12,498			11,463			9			11,096			3
		465,521			735,571			(37	)		486,261			51
Operating income	$	18,921		$	60,063			(68	)%	$	42,767			40	%
Operating margins		3.9	%		7.5	%					8.1	%

The following table shows the markets serviced by the Company, the revenue distribution for 2015, and the customers for each market:

Markets Serviced	2015 Revenue Distribution	Customers
Land-Based	61%	Land-Based Oilfield Services, Oil and Gas Operators and Producers, On-Highway Transportation
Marine	29%	Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers
Power Generation	10%	Standby Power Generation, Pumping Stations

2015 Compared with 2014

Diesel Engine Services Revenues

Diesel engine services revenues for 2015 decreased 39% compared with 2014, primarily due to the lack of demand for the manufacture and remanufacture of pressure pumping units and other oilfield service equipment in the land-based market and for decreased demand for service and distribution of parts, engines and transmissions due to impact of the decline in the price of crude oil and decreased drilling activity. With the reduction in activity levels, oilfield service customers in the land-based market continued to delay new orders and postpone delivery of existing orders for new pressure pumping units and other oilfield service equipment. The marine diesel engine services market declined modestly, due primarily to weakness in the Gulf of Mexico oilfield services market. The power generation market was stable, benefiting from major generator set upgrades and parts sales for both domestic and international power generation customers.

Diesel Engine Services Costs and Expenses

Costs and expenses for 2015 decreased 37%, compared with 2014. Costs of sales and operating expenses for 2015 decreased 41% compared with 2014, reflecting a significant decrease in the number of pressure pumping units and other oilfield service equipment manufactured and remanufactured, and a decline in the sale and service of land-based engines, transmissions and parts. The 2015 first quarter reflected the completion of the manufacturing of pressure pumping units in backlog from 2014. Units carried over from 2014, which incurred delays and production issues, negatively impacted the profitability in the 2015 first quarter. The 2015 selling, general and administrative expenses included a $1,111,000 first quarter severance charge in response to the reduced activity in manufacturing in the land-based market and a $702,000 third quarter severance charge in response to reduced activity in the Gulf of Mexico oilfield services market.

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Diesel Engine Services Operating Income and Operating Margins

Diesel engine services operating income for 2015 decreased 68% compared with 2014. The operating margin for 2015 was 3.9% compared with 7.5% for 2014. The results reflected weakness in the land-based market due to the negative impact of reduced oilfield service activity levels, production issues and weakness in the Gulf of Mexico oilfield services market, as well as the $1,111,000 first quarter 2015 and $702,000 third quarter 2015 severance charges.

2014 Compared with 2013

Diesel Engine Services Revenues

Diesel engine services revenues for 2014 increased 50% compared with 2013, primarily attributable to an improvement in the sale and service of land-based diesel engines and transmissions, and an increase in the manufacture of oilfield service equipment, including pressure pumping units. Demand for the remanufacture of pressure pumping units remained steady throughout 2014 and reflected an improvement over 2013. With the steep decline in the price of crude oil during the 2014 fourth quarter, the land-based market was negatively impacted by some customer order cancellations and requests to delay projects. In addition, production inefficiencies related to supply chain issues and difficulties adding productive labor also negatively impacted the land-based market. The marine diesel engine services market improved modestly, benefiting from major service projects for inland and coastal customers, as well as Gulf of Mexico and foreign offshore oilfield service vessels and drilling operators. The power generation market was stable, benefiting from major generator set upgrades and parts sales for both domestic and international power generation customers.

Diesel Engine Services Costs and Expenses

Costs and expenses for 2014 increased 51% compared with 2013. The increases in cost of sales and operating expenses were primarily attributable to the continued improvement in demand for the manufacturing of oilfield service equipment, including pressure pumping units, as well as the increase in the sale and service of land-based diesel engines and transmissions. The 2013 year included an $18,300,000 credit to selling, general and administrative expenses, resulting from a net decrease in the fair value of the contingent earnout liability associated with the April 2011 acquisition of United.

Diesel Engine Services Operating Income and Operating Margins

Diesel engine services operating income for 2014 increased 40% compared with 2013. The operating margin for 2014 was 7.5% compared with 8.1% for 2013. The 2013 year included the $18,300,000 credit to selling, general and administrative expenses noted above. The 2014 results reflected improvement in the land-based market and stable marine and power generation markets. Some order cancellations and requests to delay projects during the 2014 fourth quarter and production inefficiencies during 2014 in the land-based market negatively impacted the 2014 operating income and margin.

General Corporate Expenses

General corporate expenses for 2015, 2014 and 2013 were $14,773,000, $14,896,000 and $15,728,000, respectively.  The decrease for 2015 was less than 1% when compared to 2014.  The 5% decrease for 2014 compared with 2013 was due to lower employee incentive compensation accruals in 2014 and staff reductions in the first quarter of 2014.

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Gain on Disposition of Assets

The Company reported a net gain on disposition of assets of $1,672,000 in 2015 compared with $781,000 in 2014 and $888,000 in 2013. The net gains were predominantly from the sale or retirement of marine equipment and the sale of the assets of a small diesel engine services product line in the 2015 first quarter.

Other Income and Expenses

The following table sets forth equity in earnings of affiliates, other income (expense), noncontrolling interests and interest expense for the three years ended December 31, 2015 (dollars in thousands):

	2015			2014			% Change 2014 to 2015			2013			% Change 2013 to 2014
Equity in earnings of affiliates	$	451		$	384			17	%	$	348			10	%
Other income (expense)		(663	)		(345	)		92	%		20			—	%
Noncontrolling interests		(1,286	)		(2,602	)		(51	)%		(3,238	)		(20	)%
Interest expense		(18,738	)		(21,461	)		(13	)%		(27,872	)		(23	)%

Equity in Earnings of Affiliates

Equity in earnings of affiliates consisted of the Company’s 50% ownership of a barge fleeting operation.

Noncontrolling Interests

Noncontrolling interests for 2015 decreased 51% compared with 2014, primarily due to lower business levels at the Company’s 51% owned shifting operation and fleeting facility for dry cargo barges on the Houston Ship Channel.

Interest Expense

Interest expense for 2015 decreased 13% compared with 2014, primarily due to lower interest rates and increased capitalized interest, offset by higher 2015 average debt levels.  Interest expense for 2014 decreased 23% compared with 2013, primarily due to lower 2014 average debt levels. During 2015, 2014 and 2013, the average debt and average interest rate (excluding capitalized interest expense) were $797,322,000 and 2.7%, $682,616,000 and 3.2%, and $974,012,000 and 2.8%, respectively. Interest expense for 2015 and 2014 excludes capitalized interest of $3,026,000 and $639,000, respectively.   No interest was capitalized during 2013.

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Financial Condition, Capital Resources and Liquidity

Balance Sheet

Total assets at December 31, 2015 were $4,156,266,000 compared with $4,141,909,000 at December 31, 2014 and $3,682,517,000 at December 31, 2013. The following table sets forth the significant components of the balance sheet as of December 31, 2015 compared with 2014 and 2014 compared with 2013 (dollars in thousands):

	2015		2014		% Change 2014 to 2015			2013		% Change 2013 to 2014
Assets:
Current assets	$	640,776	$	803,154		(20	)%	$	544,006		48	%
Property and equipment, net		2,778,980		2,589,498		7			2,370,803		9
Investment in affiliates		2,090		2,539		(18	)		2,156		18
Goodwill		586,718		591,405		(1	)		591,405		—
Other assets		147,702		155,313		(5	)		174,147		(11	)
	$	4,156,266	$	4,141,909		—	%	$	3,682,517		12	%
Liabilities and stockholders’ equity:
Current liabilities	$	361,917	$	594,027		(39	)%	$	345,989		72	%
Long-term debt-less current portion		778,834		600,000		30			749,150		(20	)
Deferred income taxes		669,808		595,769		12			544,110		9
Other long-term liabilities		66,511		87,200		(24	)		21,115		313
Total equity		2,279,196		2,264,913		1			2,022,153		12
	$	4,156,266	$	4,141,909		—	%	$	3,682,517		12	%

2015 Compared with 2014

Current assets as of December 31, 2015 decreased 20% compared with December 31, 2014. Trade accounts receivable decreased 30%, primarily a reflection of the decrease in revenues in the 2015 fourth quarter compared to the 2014 fourth quarter. Inventory decreased 4% due to the sale of inventory purchased in 2014 for 2015 projects, the sale of a small diesel engine services product line in the 2015 first quarter and the sale of a diesel engine services compression systems business in the 2015 fourth quarter. This was partially offset by increases in the land-based inventory due to lower activity levels and parts ordered prior to customer order cancelations or delays.

Property and equipment, net of accumulated depreciation, at December 31, 2015 increased 7% compared with December 31, 2014. The increase reflected $343,269,000 of capital expenditures for 2015, more fully described under Capital Expenditures per the Balance Sheet below, and $41,250,000 for the purchase of six inland pressure tank barges in February 2015, less $183,714,000 of depreciation expense for 2015 and $10,430,000 of property disposals during 2015.

Goodwill at December 31, 2015 decreased 1% compared with December 31, 2014 due to the sale of a diesel engine services compression systems business and the reporting of certain diesel engine services assets as held for sale.

Other assets at December 31, 2015 decreased 5% compared with December 31, 2014 primarily due to the amortization of intangibles other than goodwill and the amortization of major maintenance costs on ocean-going vessels, net of major maintenance drydock expenditures for 2015.  Partially offsetting the decrease was a $3,780,000 long-term notes receivable from the sale of equipment in the marine transportation segment.

Current liabilities as of December 31, 2015 decreased 39% compared with December 31, 2014. The decrease in the current portion of long-term debt at December 31, 2015 reflected the reclassification of the balance of the revolving credit facility as long-term debt as the Company extended the maturity date of its revolving credit agreement to April 30, 2020. Accounts payable decreased 40%, primarily due to decreased business activity levels in the land-based diesel engine services market. Accrued liabilities decreased 8%, primarily from lower employee incentive compensation accruals for 2015 and payments on insurance claims. Deferred revenues decreased 19%, primarily reflecting decreased business activity levels in the land-based diesel engine services market.

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Long-term debt, less current portion, as of December 31, 2015 increased 30% compared with December 31, 2014, reflecting net borrowings of $62,134,000 on the revolving credit facility during 2015 and the reclassification of the current portion of the revolving credit facility to long-term debt, as the revolving credit facility was refinanced on April 30, 2015. The borrowings on the revolving credit facility were used primarily to finance treasury stock purchases of $241,105,000, to purchase six inland pressure tank barges for $41,250,000 in February 2015 and to refinance the $100,000,000 outstanding under the Company’s term loan agreement on April 30, 2015.

Deferred income taxes as of December 31, 2015 increased 12% compared with December 31, 2014. The increase was primarily due to the 2015 deferred tax provision of $62,755,000, the result of bonus tax depreciation on qualifying expenditures due to the Protecting Americans from Tax Hikes Act (“PATH”) of 2015. PATH continued the bonus tax percentage of 50% for qualifying expenditures placed in service in 2015 through 2017, but then phases down to 40% in 2018 and 30% in 2019.

Other long-term liabilities as of December 31, 2015 decreased 24% compared with December 31, 2014. The decrease was primarily due to a decrease in the pension liability due to a higher discount rate and a $10,000,000 contribution to the pension plan.

Total equity as of December 31, 2015 increased 1% compared with December 31, 2014. The increase was primarily the result of  $226,684,000 of net earnings attributable to Kirby for 2015, a $6,308,000 increase in additional paid-in capital and a $16,351,000 increase in accumulated other comprehensive income (“OCI”) partially offset by a $234,568,000 increase in treasury stock. The increase in treasury stock was attributable to purchases during 2015 of $241,105,000 of the Company’s common stock, partially offset by the exercise of stock options and the issuance of restricted stock. The increase in additional paid-in capital was due to the excess of proceeds received upon exercise of stock options and the issuance of restricted stock over the cost of the treasury stock issued. The increase in accumulated OCI primarily resulted from the decrease in unrecognized losses related to the Company’s defined benefit plans.

2014 Compared with 2013

Current assets as of December 31, 2014 increased 48% compared with December 31, 2013. Trade accounts receivable increased 34%, primarily a reflection of the increase in the land-based diesel engine services receivables due to an increase in business activity levels in 2014 compared with 2013. Other accounts receivable increased 169%, primarily due to an increase in insurance claim receivables related to the March 22, 2014 incident in the Houston Ship Channel. Inventory in the diesel engine services segment increased 42% with the building of land-based inventory to support increased business activity levels and parts purchased for 2015 first quarter projects.

Property and equipment, net of accumulated depreciation, at December 31, 2014 increased 9% compared with December 31, 2013. The increase reflected $355,144,000 of capital expenditures for 2014, more fully described under Capital Expenditures per the Balance Sheet below, the purchase of three previously leased coastal barges for $31,800,000, less $160,070,000 of depreciation expense for 2014 and $9,866,000 of property disposals during 2014.

Other assets at December 31, 2014 decreased 11% compared with December 31, 2013, primarily due to amortization of intangibles other than goodwill and the amortization of deferred major maintenance drydock expenditures on ocean-going vessels during 2014, net of major maintenance drydock expenditures for 2014.

Current liabilities as of December 31, 2014 increased 72% compared with December 31, 2013. The current portion of long-term debt at December 31, 2014 reflected the reclassification of the $116,700,000 balance of the revolving credit facility as current since it matures November 9, 2015. Accounts payable increased 25%, primarily from increased business activity levels in the diesel engine services segment. Accrued liabilities increased 56%, primarily from an increase in claims payable resulting from the March 22, 2014 incident in the Houston Ship Channel. Deferred revenues increased 38%, primarily reflecting increased advanced billings for diesel engine services and marine transportation customers.

Long-term debt, less current portion, as of December 31, 2014, decreased 20% compared with December 31, 2013, reflecting payments of $108,000,000 on the term loan during 2014 and the reclassification of the revolving credit facility to current portion of long-term debt.

Deferred income taxes as of December 31, 2014 increased 9% compared with December 31, 2013. The increase was primarily due to the 2014 deferred tax provision of $77,976,000, the result of bonus tax depreciation on qualifying expenditures due to the Tax Increase Prevention Act of 2014 that continued 50% bonus tax depreciation for capital investments placed in service through December 31, 2014.

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Other long-term liabilities as of December 31, 2014 increased 313% compared with December 31, 2013. The increase was primarily attributable to an increase in the pension liability due to a lower discount rate and a new mortality table.

Total equity as of December 31, 2014 increased 12% compared with December 31, 2013. The increase was primarily the result of $282,006,000 of net earnings attributable to Kirby for 2014, a $12,272,000 increase in treasury stock, a $17,860,000 increase in additional paid-in capital and a $44,244,000 decrease in OCI. The increase in treasury stock was attributable to purchases during 2014 of $15,321,000 of Company common stock, partially offset by the exercise of stock options and the issuance of restricted stock. The increase in additional paid-in capital was due to the excess of proceeds received upon exercise of stock options and the issuance of restricted stock over the cost of the treasury stock issued. The decrease in accumulated OCI primarily resulted from the increase in unrecognized losses related to the Company’s defined benefit plans.

Retirement Plans

The Company sponsors a defined benefit plan for its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities. The Company’s pension plan funding strategy has historically been to contribute an amount equal to the greater of the minimum required contribution under ERISA or the amount necessary to fully fund the plan on an accumulated benefit obligation (“ABO”) basis at the end of the fiscal year. The pension contribution for the 2015 year was $10,000,000.  No pension contribution was made in 2014 for the 2014 year as funding of the pension plan’s ABO was 100% at December 31, 2014. The fair value of plan assets was $243,588,000 and $242,275,000 at December 31, 2015 and December 31, 2014, respectively.

The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income). The primary objective in the investment management of assets is to achieve long-term growth of principal while avoiding excessive risk. Risk is managed through diversification of investments within and among asset classes, as well as by choosing securities that have an established trading and underlying operating history.

The Company makes various assumptions when determining defined benefit plan costs including, but not limited to, the current discount rate and the expected long-term return on plan assets. Discount rates are determined annually and are based on a yield curve that consists of a hypothetical portfolio of high quality corporate bonds with maturities matching the projected benefit cash flows. The Company used discount rates of 4.5% and 4.1% in 2015 and 2014, respectively, in determining its benefit obligations. The Company estimates that every 0.1% decrease in the discount rate results in an increase in the ABO of approximately $4,200,000. The Company assumed that plan assets would generate a long-term rate of return of 7.5% in 2015 and 2014. The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants and comparing historical returns for various asset classes with its actual and targeted plan investments. The Company believes that long-term asset allocation, on average, will approximate the targeted allocation.

Long-Term Financing

On April 30, 2015, the Company entered into a $550,000,000 unsecured revolving credit facility (“Revolving Credit Facility”) with a syndicate of banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank, with a maturity date of April 30, 2020. In addition, the credit agreement allows for a $300,000,000 increase in the aggregate commitments of the banks in the form of revolving credit loans or term loans, subject to the consent of each bank that elects to participate in the increased commitment. The variable interest rate spread varies with the Company’s senior debt rating and is currently 1.00% over the London Interbank Offered Rate (“LIBOR”) or equal to an alternate base rate calculated with reference to the agent bank’s prime rate, among other factors (“Alternate Base Rate”). The commitment fee is currently 0.10%. The Revolving Credit Facility contains certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the Revolving Credit Facility contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business. Borrowings under the Revolving Credit Facility may be used for general corporate purposes, the purchase of existing or new equipment, the purchase of the Company’s common stock, or for business acquisitions. On April 30, 2015, proceeds from the Revolving Credit Facility were used to refinance the outstanding balance of the Company’s previous $325,000,000 unsecured revolving credit facility and the term loan described below. As of December 31, 2015, the Company was in compliance with all Revolving Credit Facility covenants and had $278,834,000 of debt outstanding under the Revolving Credit Facility. The Revolving Credit Facility includes a $25,000,000 commitment which may be used for standby letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $5,047,000 as of December 31, 2015.

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The Company has $500,000,000 of unsecured senior notes (“Senior Notes Series A” and “Senior Notes Series B”) with a group of institutional investors, consisting of $150,000,000 of 2.72% Senior Notes Series A due February 27, 2020 and $350,000,000 of 3.29% Senior Notes Series B due February 27, 2023. No principal payments are required until maturity. The Senior Notes Series A and Series B contain certain covenants on the part of the Company, including an interest coverage covenant, a debt-to-capitalization covenant and covenants relating to liens, asset sales and mergers, among others. The Senior Notes Series A and Series B also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. As of December 31, 2015, the Company was in compliance with all Senior Notes Series A and Series B covenants and had $150,000,000 of Senior Notes Series A outstanding and $350,000,000 of Senior Notes Series B outstanding.

The Company has a $10,000,000 line of credit (“Credit Line”) with Bank of America, N.A. (“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2017. The Credit Line allows the Company to borrow at an interest rate agreed to by Bank of America and the Company at the time each borrowing is made or continued. The Company had no borrowings outstanding under the Credit Line as December 31, 2015. Outstanding letters of credit under the Credit Line were $931,000 as of December 31, 2015.

The Company had a term loan with a group of commercial banks, with Wells Fargo Bank, National Association as the administrative agent bank, with a maturity date of July 1, 2016. On April 30, 2015, the $100,000,000 outstanding balance of the term loan was refinanced with proceeds from the Revolving Credit Facility. The term loan provided for a $540,000,000 five-year unsecured term loan facility with a variable interest rate based on LIBOR or the Alternate Base Rate. The interest rate spread varied with the Company’s senior debt rating and, for the year 2014 through April 29, 2015, was 1.5% over LIBOR or 0.5% over the Alternate Base Rate. The outstanding balance of the term loan was subject to quarterly amortization in increasing amounts and was prepayable, in whole or in part, without penalty. The term loan contained certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the term loan contained covenants that, subject to exceptions, restricted debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business.

Capital Expenditures per the Balance Sheet

Capital expenditures for 2015 were $343,269,000, including $70,956,000 for inland tank barge and towboat construction, $74,442,000 for progress payments on the construction of two 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat units, one of which was placed in service in late 2015 and the second scheduled to be placed in service in mid-2016, $33,030,000 for progress payments on the construction of two 155,000 barrel coastal articulated tank barge and 6000 horsepower tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, $8,468,000 for progress payments on the construction of two 4900 horsepower coastal tugboats, $1,600,000 for progress payments on the construction of a 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017 and $154,773,000 primarily for upgrading existing marine equipment, and marine transportation and diesel engine service facilities. The Company purchased six inland pressure tank barges for $41,250,000 in February 2015. Capital expenditures for 2014 were $355,144,000, of which $125,737,000 was for construction of new inland tank barges and towboats, $71,793,000 for progress payments on the construction of two 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat units, one of which was completed in late 2015 and the second scheduled to be placed in service in mid-2016, $19,201,000 for down payments on the construction of two 155,000 barrel articulated coastal tank barge and 6000 horsepower tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, and $138,413,000 primarily for upgrading of existing marine equipment, and marine transportation and diesel engine service facilities, as well as the final costs for the construction of two offshore dry-bulk barge and tugboat units delivered during 2013. Financing of the construction of the inland tank barges and towboats, the coastal tank barge and tugboat units, the coastal tugboats, the coastal petrochemical tank barge and purchase of the six inland pressure tank barges was through operating cash flows and available credit under the Company’s Revolving Credit Facility.

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During 2015, the Company’s inland marine transportation operations took delivery of 36 new inland tank barges with a total capacity of approximately 489,000 barrels, acquired six inland pressure tank barges with a total capacity of approximately 97,000 barrels and retired 18 inland tank barges, returned eight leased inland tank barges and transferred two tank barges into the coastal fleet, reducing its capacity by approximately 421,000 barrels. As a result, during 2015, the Company added a net 14 inland tank barges and approximately 165,000 barrels of capacity.

The Company projects that capital expenditures for 2016 will be in the $220,000,000 to $240,000,000 range. The 2016 construction program will consist of three inland tank barges with a total capacity of 86,000 barrels, one inland towboat, progress payments on the construction of a 185,000 barrel coastal articulated tank barge and tugboat unit scheduled to be placed in service in mid-2016, progress payments on the construction of two 155,000 barrel coastal articulated tank barge and tugboat units, one scheduled to be placed in service in the second half of 2016 and one in the 2017 first half, progress payments on the construction of two 4900 horsepower coastal tugboats and progress payments on the construction of a 35,000 barrel coastal petrochemical tank barge scheduled to be placed in service in early 2017. Based on current commitments, steel prices and projected delivery schedules, the Company’s 2016 payments on new inland tank barges and the towboat will be approximately $1,000,000, 2016 progress payments on the construction of the 185,000 barrel and two 155,000 barrel coastal articulated tank barge and tugboat units will be approximately $66,000,000 and 2016 progress payments on the construction of the two 4900 horsepower coastal tugboats and the construction of the 35,000 barrel coastal petrochemical tank barge will be approximately $29,000,000. The balance of approximately $124,000,000 to $144,000,000 is primarily capital upgrades and improvements to existing marine equipment, and marine transportation and diesel engine services facilities.

Funding for future capital expenditures is expected to be provided through operating cash flows and available credit under the Company’s Revolving Credit Facility.

Treasury Stock Purchases

During 2015, the Company purchased 3,316,000 shares of its common stock for $241,105,000, for an average price of $72.72 per share.  The common stock was purchased through a combination of discretionary purchases and purchases pursuant to stock trading plans entered into with brokerage firms pursuant to Rule 10b5-1 under the Exchange Act. From February 5, 2016 to February 19, 2016, the Company purchased 34,000 shares of its common stock for $1,762,000 for an average price of $52.45 per share. As of February 19, 2016, the Company had approximately 1,413,000 shares available under its existing repurchase authorizations. The treasury stock purchases are financed through operating cash flows and borrowings under the Company’s Revolving Credit Facility. The Company is authorized to purchase its common stock on the New York Stock Exchange and in privately negotiated transactions. When purchasing its common stock, the Company is subject to price, trading volume and other market considerations. Shares purchased may be used for reissuance upon the exercise of stock options or the granting of other forms of incentive compensation, in future acquisitions for stock or for other appropriate corporate purposes.

Liquidity

The Company generated net cash provided by operating activities of $521,305,000, $438,909,000 and $601,032,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The 2015 year experienced a net increase in cash flows from changes in operating assets and liabilities of $4,907,000 compared with a net decrease in 2014 of $123,399,000.  The increase was primarily due to a decrease in receivables in 2015 due to reduced business activity levels compared to an increase in receivables and inventory during 2014 due to increased business activity levels in the land-based diesel engine services market.

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The 2014 year experienced a net decrease in cash flows from changes in operating assets and liabilities of $123,399,000 compared with a net increase in the 2013 year of $56,566,000. The reduction was primarily due to an increase in receivables and inventory during 2014 due to increased business activity levels in the land-based diesel engine services market compared to a decrease in inventory in 2013 due to the sale during 2013 of inventories that were purchased in 2012 for specific customers and the sale of pressure pumping units on hand.

Funds generated from operations are available for acquisitions, capital expenditure projects, common stock repurchases, repayments of borrowings and for other corporate and operating requirements. In addition to net cash flow provided by operating activities, the Company also had available as of February 19, 2016, $302,707,000 under its Revolving Credit Facility and $9,094,000 available under its Credit Line.

Neither the Company, nor any of its subsidiaries, is obligated on any debt instrument, swap agreement, or any other financial instrument or commercial contract which has a rating trigger, except for pricing grids on its Revolving Credit Facility.

The Company expects to continue to fund expenditures for acquisitions, capital construction projects, common stock repurchases, repayment of borrowings, and for other operating requirements from a combination of available cash and cash equivalents, funds generated from operating activities and available financing arrangements.

The Revolving Credit Facility’s commitment is in the amount of $550,000,000 and expires April 30, 2020.  As of December 31, 2015, the Company had $278,834,000 available under the Revolving Credit Facility.  The Senior Notes Series A and Senior Notes Series B do not mature until February 27, 2020 and February 27, 2023, respectively, and require no prepayments.

There are numerous factors that may negatively impact the Company’s cash flow in 2015. For a list of significant risks and uncertainties that could impact cash flows, see Note 12, Contingencies and Commitments in the financial statements, and Item 1A — Risk Factors. Amounts available under the Company’s existing financial arrangements are subject to the Company continuing to meet the covenants of the credit facilities as described in Note 4, Long-Term Debt in the financial statements.

The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $19,968,000 at December 31, 2015, including $6,299,000 in letters of credit and $13,669,000 in performance bonds. All of these instruments have an expiration date within four years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur in connection with these instruments.

All marine transportation term contracts contain fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 90 day delay before contracts are adjusted depending on the specific contract. In general, the fuel escalation clauses are effective over the long-term in allowing the Company to recover changes in fuel costs due to fuel price changes. However, the short-term effectiveness of the fuel escalation clauses can be affected by a number of factors including, but not limited to, specific terms of the fuel escalation formulas, fuel price volatility, navigating conditions, tow sizes, trip routing, and the location of loading and discharge ports that may result in the Company over or under recovering its fuel costs. Spot contract rates generally reflect current fuel prices at the time the contract is signed but do not have escalators for fuel.

During the last three years, inflation has had a relatively minor effect on the financial results of the Company. The marine transportation segment has long-term contracts which generally contain cost escalation clauses whereby certain costs, including fuel as noted above, can be passed through to its customers. Spot contract rates include the cost of fuel and are subject to market volatility. The repair portion of the diesel engine services segment is based on prevailing current market rates.

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Contractual Obligations

The contractual obligations of the Company and its subsidiaries at December 31, 2015 consisted of the following (in thousands):

	Payments Due By Period
	Total		Less Than 1 Year		2-3 Years		4-5 Years		After 5 Years
Long-term debt	$	778,834	$	—	$	—	$	428,834	$	350,000
Non-cancelable operating leases — barges		37,233		11,751		19,387		6,095		—
Non-cancelable operating leases — towing vessels		167,535		100,124		67,094		317		—
Non-cancelable operating leases — land, buildings and equipment		42,090		7,654		12,972		7,945		13,519
Barge and towing vessel construction contracts		107,069		94,073		12,996		—		—
	$	1,132,761	$	213,602	$	112,449	$	443,191	$	363,519

Approximately half of the towboat charter agreements are for terms of one year or less. The Company’s towboat rental agreements provide the Company with the option to terminate most agreements with notice ranging from seven to 90 days. The Company estimates that 80% of the charter rental cost is related to towboat crew costs, maintenance and insurance.

The Company’s pension plan funding strategy has historically been to contribute an amount equal to the greater of the minimum required contribution under ERISA or the amount necessary to fully fund the plan on an ABO basis at the end of the fiscal year. The ABO is based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult resulting in the Company electing to only make an expected pension contribution forecast of one year. As of December 31, 2015, the pension plan was funded at 102% of the ABO.

Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) which requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet.  The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance.  ASU 2015-17 is effective for annual and interim periods beginning after December 15, 2016 but early application is permitted and the guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.  The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard.

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”) which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”) or the retail inventory method. ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

56

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 requires retrospective application and is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company will adopt the standard in the first quarter of 2016 and does not expect the effect of ASU 2015-03 to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 on its ongoing financial reporting.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to risk from changes in interest rates on certain of its outstanding debt. The outstanding loan balances under the Company’s bank credit facilities bear interest at variable rates based on prevailing short-term interest rates in the United States and Europe. A 10% change in variable interest rates would impact the 2016 interest expense by $68,000 based on balances outstanding at December 31, 2015, and would change the fair value of the Company’s debt by less than 1%.

Item 8. Financial Statements and Supplementary Data

The response to this item is submitted as a separate section of this report (see Item 15, page 92).

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures. The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act), as of December 31, 2015. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of December 31, 2015, the disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Management’s Report on Internal Control Over Financial Reporting. Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the Company’s internal control over financial reporting as of December 31, 2015 using the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2015. KPMG LLP, the Company’s independent registered public accounting firm, has audited the Company’s internal control over financial reporting, as stated in their report which is included herein.

57

There were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART III

Items 10 Through 14.

The information for these items is incorporated by reference to the definitive proxy statement filed by the Company with the Commission pursuant to Regulation 14A within 120 days of the close of the fiscal year ended December 31, 2015, except for the information regarding executive officers which is provided under Item 1.

58

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of Kirby Corporation:

We have audited Kirby Corporation and consolidated subsidiaries’ internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Kirby Corporation’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Kirby Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Kirby Corporation and consolidated subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of earnings, comprehensive income, cash flows and stockholders’ equity for each of the years in the three-year period ended December 31, 2015, and our report dated February 22, 2016 expressed an unqualified opinion on those consolidated financial statements.

	KPMG LLP
Houston, Texas
February 22, 2016

59

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of Kirby Corporation:

We have audited the accompanying consolidated balance sheets of Kirby Corporation and consolidated subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of earnings, comprehensive income, cash flows and stockholders’ equity for each of the years in the three-year period ended December 31, 2015. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Kirby Corporation and consolidated subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Kirby Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 22, 2016 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

	KPMG LLP
Houston, Texas
February 22, 2016

60

 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2015 and 2014

	2015			2014
	($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	5,885		$	24,299
Accounts receivable:
Trade — less allowance for doubtful accounts of $9,374 ($8,887 in 2014)		290,931			417,325
Other		102,443			115,598
Inventories — at lower of average cost or market		184,511			192,354
Prepaid expenses and other current assets		45,283			43,016
Deferred income taxes		11,723			10,562
Total current assets		640,776			803,154
Property and equipment:
Marine transportation equipment		3,806,850			3,495,705
Land, buildings and equipment		252,913			221,693
		4,059,763			3,717,398
Accumulated depreciation		1,280,783			1,127,900
Property and equipment — net		2,778,980			2,589,498
Investment in affiliates		2,090			2,539
Goodwill		586,718			591,405
Other assets		147,702			155,313
Total assets	$	4,156,266		$	4,141,909
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—		$	116,700
Income taxes payable		3,564			3,470
Accounts payable		132,799			222,020
Accrued liabilities:
Interest		5,412			5,610
Insurance premiums and claims		111,705			121,989
Employee compensation		37,243			42,056
Taxes — other than on income		13,525			13,694
Other		16,369			17,684
Deferred revenues		41,300			50,804
Total current liabilities		361,917			594,027
Long-term debt — less current portion		778,834			600,000
Deferred income taxes		669,808			595,769
Other long-term liabilities		66,511			87,200
Total long-term liabilities		1,515,153			1,282,969
Contingencies and commitments		—			—
Equity:
Kirby stockholders’ equity:
Common stock, $.10 par value per share. Authorized 120,000,000 shares, issued 59,776,000 in 2015 and 2014		5,978			5,978
Additional paid-in capital		434,783			428,475
Accumulated other comprehensive income — net		(44,686	)		(61,037	)
Retained earnings		2,200,830			1,974,146
Treasury stock — at cost, 6,056,000 shares in 2015 and 2,906,000 in 2014		(328,094	)		(93,526	)
Total Kirby stockholders’ equity		2,268,811			2,254,036
Noncontrolling interests		10,385			10,877
Total equity		2,279,196			2,264,913
Total liabilities and equity	$	4,156,266		$	4,141,909

See accompanying notes to consolidated financial statements.

61

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

For the Years Ended December 31, 2015, 2014 and 2013

	2015			2014			2013
	($ in thousands, except per share amounts)
Revenues:
Marine transportation	$	1,663,090		$	1,770,684		$	1,713,167
Diesel engine services		484,442			795,634			529,028
Total revenues		2,147,532			2,566,318			2,242,195
Costs and expenses:
Costs of sales and operating expenses		1,362,366			1,694,882			1,448,805
Selling, general and administrative		193,237			210,416			177,766
Taxes, other than on income		20,699			16,677			15,893
Depreciation and amortization		192,240			169,312			164,437
Gain on disposition of assets		(1,672	)		(781	)		(888	)
Total costs and expenses		1,766,870			2,090,506			1,806,013
Operating income		380,662			475,812			436,182
Equity in earnings of affiliates		451			384			348
Other income (expense)		(663	)		(345	)		20
Interest expense		(18,738	)		(21,461	)		(27,872	)
Earnings before taxes on income		361,712			454,390			408,678
Provision for taxes on income		(133,742	)		(169,782	)		(152,379	)
Net earnings		227,970			284,608			256,299
Less: Net earnings attributable to noncontrolling interests		(1,286	)		(2,602	)		(3,238	)
Net earnings attributable to Kirby	$	226,684		$	282,006		$	253,061
Net earnings per share attributable to Kirby common stockholders:
Basic	$	4.12		$	4.95		$	4.46
Diluted	$	4.11		$	4.93		$	4.44

See accompanying notes to consolidated financial statements.

62

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended December 31, 2015, 2014 and 2013

	2015			2014			2013
	($ in thousands)
Net earnings	$	227,970		$	284,608		$	256,299
Other comprehensive income (loss), net of taxes:
Pension and postretirement benefits		16,322			(44,294	)		43,274
Foreign currency translation adjustments		29			(35	)		108
Change in fair value of derivative instruments		—			85			952
Total other comprehensive income (loss), net of taxes		16,351			(44,244	)		44,334
Total comprehensive income, net of taxes		244,321			240,364			300,633
Net earnings attributable to noncontrolling interests		(1,286	)		(2,602	)		(3,238	)
Comprehensive income attributable to Kirby	$	243,035		$	237,762		$	297,395

See accompanying notes to consolidated financial statements.

63

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2015, 2014 and 2013

	2015			2014			2013
	($ in thousands)
Cash flows from operating activities:
Net earnings	$	227,970		$	284,608		$	256,299
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization		192,240			169,312			164,437
Provision for doubtful accounts		1,426			3,577			1,260
Provision for deferred income taxes		62,755			77,976			103,056
Gain on disposition of assets		(1,672	)		(781	)		(888	)
Equity in earnings of affiliates, net of distributions and contributions		449			(384	)		(348	)
Amortization of unearned share-based compensation		11,104			11,591			11,621
Amortization of major maintenance costs		22,126			16,409			9,029
Increase (decrease) in cash flows resulting from changes in:
Accounts receivable		129,908			(176,544	)		2,235
Inventory		(7,320	)		(56,468	)		43,275
Other assets		(14,174	)		(11,783	)		(47,526	)
Income taxes payable		477			(4,544	)		313
Accounts payable		(81,808	)		44,645			23,088
Accrued and other liabilities		(22,176	)		81,295			35,181
Net cash provided by operating activities		521,305			438,909			601,032
Cash flows from investing activities:
Capital expenditures		(345,475	)		(355,144	)		(253,227	)
Acquisitions of businesses and marine equipment, net of cash acquired		(41,250	)		(31,800	)		(3,643	)
Proceeds from disposition of assets		24,429			10,393			33,982
Net cash used in investing activities		(362,296	)		(376,551	)		(222,888	)
Cash flows from financing activities:
Borrowings (payments) on bank credit facilities, net		160,784			75,550			(150,960	)
Borrowings on long-term debt		—			—			225,000
Payments on long-term debt		(100,000	)		(108,000	)		(460,000	)
Return of investment to noncontrolling interests		(1,778	)		(3,192	)		(3,857	)
Proceeds from exercise of stock options		3,712			7,519			6,635
Purchase of treasury stock		(241,105	)		(15,321	)		—
Payment of contingent liability		—			(4,756	)		(5,000	)
Excess tax benefit from equity compensation plans		964			6,119			3,001
Net cash used in financing activities		(177,423	)		(42,081	)		(385,181	)
Increase (decrease) in cash and cash equivalents		(18,414	)		20,277			(7,037	)
Cash and cash equivalents, beginning of year		24,299			4,022			11,059
Cash and cash equivalents, end of year	$	5,885		$	24,299		$	4,022
Supplemental disclosures of cash flow information:
Interest paid	$	20,586		$	19,622		$	21,393
Income taxes paid	$	69,584		$	90,460		$	46,136
Capital expenditures included in accounts payable	$	2,206		$	—		$	—

See accompanying notes to consolidated financial statements.

64

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Years Ended December 31, 2015, 2014 and 2013

	2015			2014			2013
	($ in thousands)
Common stock:
Balance at beginning and end of year	$	5,978		$	5,978		$	5,978
Additional paid-in capital:
Balance at beginning of year	$	428,475		$	410,615		$	397,785
Excess of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued		3,530			8,345			8,276
Tax benefit realized from equity compensation plans		964			6,119			3,001
Issuance of restricted stock, net of forfeitures		(9,290	)		(8,195	)		(10,068	)
Amortization of unearned compensation		11,104			11,591			11,621
Balance at end of year	$	434,783		$	428,475		$	410,615
Accumulated other comprehensive income:
Balance at beginning of year	$	(61,037	)	$	(16,793	)	$	(61,127	)
Other comprehensive income (loss), net of taxes		16,351			(44,244	)		44,334
Balance at end of year	$	(44,686	)	$	(61,037	)	$	(16,793	)
Retained earnings:
Balance at beginning of year	$	1,974,146		$	1,692,140		$	1,439,079
Net earnings attributable to Kirby for the year		226,684			282,006			253,061
Balance at end of year	$	2,200,830		$	1,974,146		$	1,692,140
Treasury stock:
Balance at beginning of year	$	(93,526	)	$	(81,254	)	$	(86,747	)
Purchase of treasury stock (3,316,000 in 2015 and 187,000 in 2014)		(241,105	)		(15,321	)		—
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (166,000 in 2015, 211,000 in 2014 and 261,000 in 2013)		6,537			3,049			5,493
Balance at end of year	$	(328,094	)	$	(93,526	)	$	(81,254	)
Noncontrolling interests:
Balance at beginning of year	$	10,877		$	11,467		$	12,086
Net earnings attributable to noncontrolling interests		1,286			2,602			3,238
Return of investment to noncontrolling interests		(1,778	)		(3,192	)		(3,857	)
Balance at the end of year	$	10,385		$	10,877		$	11,467

See accompanying notes to consolidated financial statements.

65

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) Summary of Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of Kirby Corporation and all majority-owned subsidiaries (“the Company”). One affiliated limited partnership, in which the Company owns a 50% interest, is the general partner and has effective control and whose activities are an integral part of the operations of the Company, is consolidated. All other investments in which the Company owns 20% to 50% and exercises significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to reflect the current presentation of financial information.

Accounting Policies

Cash Equivalents. Cash equivalents consist of all short-term, highly liquid investments with maturities of three months or less at date of purchase.

Accounts Receivable. In the normal course of business, the Company extends credit to its customers. The Company regularly reviews the accounts and makes adequate provisions for probable uncollectible balances. It is the Company’s opinion that the accounts have no impairment, other than that for which provisions have been made. Included in accounts receivable as of December 31, 2015 and 2014 were $90,166,000 and $143,615,000, respectively, of accruals for revenues earned which have not been invoiced as of the end of each year.

The Company’s marine transportation and diesel engine services operations are subject to hazards associated with such businesses. The Company maintains insurance coverage against these hazards with insurance companies. Included in accounts receivable as of December 31, 2015 and 2014 were $77,684,000 and $92,379,000, respectively, of receivables from insurance companies to cover claims in excess of the Company’s deductible.

Concentrations of Credit Risk. Financial instruments which potentially subject the Company to concentrations of credit risk are primarily trade accounts receivables. The Company’s marine transportation customers include the major oil refining and petrochemical companies. The diesel engine services customers are oil and gas service companies, marine transportation companies, commercial fishing companies, power generation companies, and the United States government. The Company regularly reviews its accounts and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information. Estimates of uncollectible amounts are revised each period, and changes are recorded in the period they become known.

Fair Value of Financial Instruments. Cash, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company’s debt instruments is more fully described in Note 4, Long-Term Debt.

Property, Maintenance and Repairs. Property is recorded at cost. Improvements and betterments are capitalized as incurred. Depreciation is recorded on the straight-line method over the estimated useful lives of the individual assets as follows: marine transportation equipment, 5-40 years; buildings, 10-40 years; other equipment, 2-10 years; and leasehold improvements, term of lease. When property items are retired, sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts with any gain or loss on the disposition included in the statement of earnings. Maintenance and repairs on vessels built for use on the inland waterways are charged to operating expense as incurred and includes the costs incurred in United States Coast Guard (“USCG”) inspections unless the shipyard extends the life or improves the operating capacity of the vessel which results in the costs being capitalized.

66

Drydocking on Ocean-Going Vessels. The Company’s ocean-going vessels are subject to regulatory drydocking requirements after certain periods of time to be inspected, have planned major maintenance performed and be recertified by the American Bureau of Shipping (“ABS”). These recertifications generally occur twice in a five year period. The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed. Drydocking expenditures that extend the life or improve the operating capability of the vessel result in the costs being capitalized. The Company recognized amortization of  major maintenance costs of $22,126,000, $16,409,000 and $9,029,000 for the years ended December 31, 2015, 2014 and 2013, respectively, in costs of sales and operating expenses. Routine repairs and maintenance on ocean-going vessels are expensed as incurred. Interest is capitalized on the construction of new ocean-going vessels. Interest expense excludes capitalized interest of $3,026,000 and $639,000 for the years ending December 31, 2015 and 2014, respectively. No interest was capitalized for the year ending December 31, 2013.

Environmental Liabilities. The Company expenses costs related to environmental events as they are incurred or when a loss is considered probable and estimable.

Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill. The Company conducted its annual goodwill impairment test at November 30, 2015 and 2014. For 2015 and 2014, the Company noted no impairment of goodwill. The Company will continue to conduct goodwill impairment tests as of November 30 of subsequent years, or whenever events or circumstances indicate that interim impairment testing is necessary. The amount of goodwill impairment, if any, is typically measured based on projected discounted future operating cash flows using an appropriate discount rate. The gross carrying value of goodwill at December 31, 2015 and 2014 was $604,185,000 and $608,872,000, respectively, and accumulated amortization at December 31, 2015 and 2014 was $15,566,000. Accumulated impairment losses were $1,901,000 at December 31, 2015 and 2014.

Net goodwill for the marine transportation segment was $381,243,000 at December 31, 2015 and 2014. Net goodwill for the diesel engine services segment was $205,475,000 and $210,162,000 at December 31, 2015 and 2014, respectively. The decrease in net goodwill for the diesel engine services segment was due to a sale of a business during 2015 and the reclassification of  certain assets as held for sale as of December 31, 2015.

Revenue Recognition. The majority of marine transportation revenue is derived from term contracts, ranging from one to three years, some of which have renewal options, and the remainder is from spot market movements. The majority of the term contracts are for terms of one year. The Company is a provider of marine transportation services for its customers and, in almost all cases, does not assume ownership of the products it transports. A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate or at a daily rate. The rate may or may not escalate during the term of the contract, however, the base rate generally remains constant and contracts often include escalation provisions to recover changes in specific costs such as fuel. A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate, including fuel, and are subject to market volatility. The Company uses a voyage accounting method of revenue recognition for its marine transportation revenues which allocates voyage revenue based on the percent of the voyage completed during the period. There is no difference in the recognition of revenue between a term contract and a spot contract.

Diesel engine service products and services are generally sold based upon purchase orders or preferential service agreements with the customer that include fixed or determinable prices and that do not include right of return or significant post-delivery performance obligations. Diesel engine parts sales are recognized when title passes upon shipment to customers or when customer-specific acceptance requirements are met. Service revenue is recognized as the service is provided. Diesel manufacturing and assembly projects revenue is reported on the percentage of completion method of accounting using measurements of progress towards completion appropriate for the work performed.

Stock-Based Compensation. The Company has share-based compensation plans covering selected officers and other key employees as well as the Company’s Board of Directors. Stock-based grants made under the Company’s stock plans are recorded at fair value on the date of the grant and the cost is recognized ratably over the vesting period of the stock option or restricted stock. Stock option grants are valued at the date of grant as calculated under the Black-Scholes option pricing model. The Company’s stock-based compensation plans are more fully described in Note 7, Stock Award Plans.

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Taxes on Income. The Company follows the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Accrued Insurance. Accrued insurance liabilities include estimates based on individual incurred claims outstanding and an estimated amount for losses incurred but not reported (“IBNR”) or fully developed based on past experience. Insurance premiums, IBNR losses and incurred claim losses, in excess of the Company’s deductible for 2015, 2014 and 2013 were $23,737,000, $25,416,000 and $22,971,000, respectively.

Noncontrolling Interests. The Company has a majority interest in and is the general partner in several affiliated entities. In situations where losses applicable to the minority interest in the affiliated entities exceed the limited partners’ equity capital, such excess and any further loss attributable to the minority interest is charged against the Company’s interest in the affiliated entities. If future earnings materialize in the respective affiliated entities, the Company’s interest would be credited to the extent of any losses previously absorbed.

Treasury Stock. The Company follows the average cost method of accounting for treasury stock transactions.

Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. The Company reviews long-lived assets and certain identifiable intangibles for impairment by vessel class whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Recoverability on marine transportation assets is assessed based on vessel classes, not on individual assets, because identifiable cash flows for individual marine transportation assets are not available. Projecting customer contract volumes allows estimation of future cash flows by projecting pricing and utilization by vessel class but it is not practical to project which individual marine transportation asset will be utilized for any given contract. Because customers do not specify which particular vessel is used, prices are quoted based on vessel classes not individual assets. Nominations of vessels for specific jobs are determined on a day by day basis and are a function of the equipment class required and the geographic position of vessels within that class at that particular time as vessels within a class are interchangeable and provide the same service. The Company’s vessels are mobile assets and equipped to operate in geographic regions throughout the United States and the Company has in the past and expects to continue to move vessels from one region to another when it is necessary due to changing markets and it is economical to do so. Barge vessel classes are based on similar capacities, hull type, and type of product and towing vessels are based on similar hull type and horsepower. Recoverability of the vessel classes is measured by a comparison of the carrying amount of the assets to future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) which requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet.  The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance.  ASU 2015-17 is effective for annual and interim periods beginning after December 15, 2016 but early application is permitted and the guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.  The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard.

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In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”) which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”) or the retail inventory method. ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 requires retrospective application and is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company will adopt the standard in the first quarter of 2016 and does not expect the effect of ASU 2015-03 to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 on its ongoing financial reporting.

(2) Inventories

The following table presents the details of inventories as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015		December 31, 2014
Finished goods	$	163,501	$	179,760
Work in process		21,010		12,594
	$	184,511	$	192,354

(3) Fair Value Measurements

The accounting guidance for using fair value to measure certain assets and liabilities establishes a three tier value hierarchy, which prioritizes the inputs to valuation techniques used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little, if any, market data exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company’s debt instruments is described in Note 4, Long-Term Debt.

Certain assets are measured at fair value on a nonrecurring basis.  These assets are adjusted to fair value when there is evidence of impairment. During the years ended December 31, 2015 and 2014, there was no indication that the Company’s long-lived assets were impaired, and accordingly, measurement at fair value was not required.

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(4) Long-Term Debt

Long-term debt at December 31, 2015 and 2014 consisted of the following (in thousands):

	2015		2014
Long-term debt, including current portion:
$550,000,000 revolving credit facility due April 30, 2020	$	278,834	$	—
$325,000,000 revolving credit facility due November 9, 2015		—		116,700
$150,000,000 senior notes Series A due February 27, 2020		150,000		150,000
$350,000,000 senior notes Series B due February 27, 2023		350,000		350,000
$10,000,000 credit line due June 30, 2017		—		—
$540,000,000 term loan due July 1, 2016		—		100,000
	$	778,834	$	716,700

The aggregate payments due on the long-term debt in each of the next five years were as follows (in thousands):

2016	$	—
2017		—
2018		—
2019		—
2020		428,834
Thereafter		350,000
	$	778,834

On April 30, 2015, the Company entered into a $550,000,000 unsecured revolving credit facility (“Revolving Credit Facility”) with a syndicate of banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank, with a maturity date of April 30, 2020. In addition, the credit agreement allows for a $300,000,000 increase in the aggregate commitments of the banks in the form of revolving credit loans or term loans, subject to the consent of each bank that elects to participate in the increased commitment. The variable interest rate spread varies with the Company’s senior debt rating and is currently 1.00% over the London Interbank Offered Rate (“LIBOR”) or equal to an alternate base rate calculated with reference to the agent bank’s prime rate, among other factors (“Alternate Base Rate”). The commitment fee is currently 0.10%. The Revolving Credit Facility contains certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the Revolving Credit Facility contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business. Borrowings under the Revolving Credit Facility may be used for general corporate purposes, the purchase of existing or new equipment, the purchase of the Company’s common stock, or for business acquisitions. On April 30, 2015, proceeds from the Revolving Credit Facility were used to refinance the outstanding balance of the Company’s previous $325,000,000 unsecured revolving credit facility and the term loan described below. As of December 31, 2015, the Company was in compliance with all Revolving Credit Facility covenants and had $278,834,000 of debt outstanding under the Revolving Credit Facility. The average borrowing under the Revolving Credit Facility during 2015 was $293,451,000, computing by averaging the daily balance, and the weighted average interest rate was 1.3%, computed by dividing the interest expense under the Revolving Credit Facility by the average Revolving Credit Facility borrowing. The Revolving Credit Facility includes a $25,000,000 commitment which may be used for standby letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $5,047,000 as of December 31, 2015.

The Company has $500,000,000 of unsecured senior notes (“Senior Notes Series A” and “Senior Notes Series B”) with a group of institutional investors, consisting of $150,000,000 of 2.72% Senior Notes Series A due February 27, 2020 and $350,000,000 of 3.29% Senior Notes Series B due February 27, 2023. No principal payments are required until maturity. The Senior Notes Series A and Series B contain certain covenants on the part of the Company, including an interest coverage covenant, a debt-to-capitalization covenant and covenants relating to liens, asset sales and mergers, among others. The Senior Notes Series A and Series B also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. As of December 31, 2015, the Company was in compliance with all Senior Notes Series A and Series B covenants and had $150,000,000 of Senior Notes Series A outstanding and $350,000,000 of Senior Notes Series B outstanding.

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The Company has a $10,000,000 line of credit (“Credit Line”) with Bank of America, N.A. (“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2017. The Credit Line allows the Company to borrow at an interest rate agreed to by Bank of America and the Company at the time each borrowing is made or continued. The Company had no borrowings outstanding under the Credit Line as December 31, 2015. Outstanding letters of credit under the Credit Line were $931,000 as of December 31, 2015.

The Company had a term loan with a group of commercial banks, with Wells Fargo Bank, National Association as the administrative agent bank, with a maturity date of July 1, 2016. On April 30, 2015, the $100,000,000 outstanding balance of the term loan was refinanced with proceeds from the Revolving Credit Facility. The term loan provided for a $540,000,000 five-year unsecured term loan facility with a variable interest rate based on LIBOR or the Alternate Base Rate. The interest rate spread varied with the Company’s senior debt rating and, for the year 2014 through April 29, 2015, was 1.5% over LIBOR or 0.5% over the Alternate Base Rate. The outstanding balance of the term loan was subject to quarterly amortization in increasing amounts and was prepayable, in whole or in part, without penalty. The term loan contained certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the term loan contained covenants that, subject to exceptions, restricted debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business.

The estimated fair value of total debt outstanding at December 31, 2015 and 2014 was $768,766,000 and $705,215,000, respectively, which differs from the carrying amount of $778,834,000 and $716,700,000, respectively, included in the consolidated financial statements. The fair value was determined using an income approach that relies on inputs such as yield curves.

(5) Taxes on Income

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Earnings before taxes on income — United States	$	361,712	$	454,390	$	408,678
Provision for taxes on income:
Federal:
Current	$	64,707	$	81,953	$	41,008
Deferred		59,582		72,920		97,586
State and local		9,453		14,909		13,785
	$	133,742	$	169,782	$	152,379

During the three years ended December 31, 2015, 2014 and 2013, tax benefits related to the exercise of stock options and the issuance of restricted stock that were allocated directly to additional paid-in capital were $964,000, $6,119,000 and $3,001,000, respectively.

The Company’s provision for taxes on income varied from the statutory federal income tax rate for the years ended December 31, 2015, 2014 and 2013 due to the following:

	2015			2014			2013
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		1.7			2.2			2.2
Other – net		.3			.2			.1
		37.0	%		37.4	%		37.3	%

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The tax effects of temporary differences that give rise to significant portions of the current deferred tax assets and non-current deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Current deferred tax assets:
Compensated absences	$	829		$	854
Allowance for doubtful accounts		3,288			3,111
Insurance accruals		4,234			2,858
Other		3,372			3,739
	$	11,723		$	10,562
Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	2,501		$	2,795
Insurance accruals		3,410			3,325
Deferred compensation		10,534			10,157
Unrealized loss on defined benefit plans		25,245			34,501
Operating loss carryforwards		5,188			5,219
Other		20,702			20,687
Valuation allowances		(4,716	)		(4,704	)
		62,864			71,980
Deferred tax liabilities:
Property		(604,737	)		(547,388	)
Deferred state taxes		(53,542	)		(49,503	)
Pension benefits		(8,471	)		(11,198	)
Goodwill and other intangibles		(44,185	)		(37,936	)
Other		(21,737	)		(21,724	)
		(732,672	)		(667,749	)
	$	(669,808	)	$	(595,769	)

The Company has determined that it is more likely than not that all federal deferred tax assets at December 31, 2015 will be realized, including its operating loss carryforwards of $472,000 that expire in various amounts through 2030.

The valuation allowance for state deferred tax assets as of December 31, 2015 and 2014 was $4,716,000 and $4,704,000 respectively, related to the Company’s state net operating loss carryforwards based on the Company’s determination that it is not more likely than not that the deferred tax assets will be realized.   Expiration of these state net operating loss carryforwards vary by state through 2035 and none will expire in fiscal 2016.

The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state jurisdictions. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the 2012 through 2014 tax years. With few exceptions, the Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the 2009 through 2014 tax years.

As of December 31, 2015, the Company has provided a liability of $2,479,000 for unrecognized tax benefits related to various income tax issues which includes interest and penalties. The amount that would impact the Company’s effective tax rate, if recognized, is $1,678,000, with the difference between the total amount of unrecognized tax benefits and the amount that would impact the effective tax rate being primarily related to the federal tax benefit of state income tax items. It is not reasonably possible to determine if the liability for unrecognized tax benefits will significantly change prior to December 31, 2016 due to the uncertainty of possible examination results.

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A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013, is as follows (in thousands):

	2015			2014			2013
Balance at beginning of year	$	1,171		$	949		$	1,045
Additions based on tax positions related to the current year		339			470			239
Additions for tax positions of prior years		785			39			114
Reductions for tax positions of prior years		(337	)		(287	)		(413	)
Settlements		—			—			(36	)
Balance at end of year	$	1,958		$	1,171		$	949

The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes. The Company recognized net expense (credit) of $216,000, $40,000 and $(421,000) in interest and penalties for the years ended December 31, 2015, 2014 and 2013, respectively. The Company had $522,000, $306,000 and $266,000 of accrued liabilities for the payment of interest and penalties at December 31, 2015, 2014 and 2013, respectively.

(6) Leases

The Company and its subsidiaries currently lease various facilities and equipment under a number of cancelable and noncancelable operating leases. Lease agreements for barges have terms from one to 12 years expiring at various dates through 2020. Lease agreements for towing vessels chartered by the Company have terms from 30 days to five years expiring at various dates through 2019; however, approximately half of the towing vessel charter agreements are for terms of one year or less. Total rental expense for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

	2015		2014		2013
Rental expense:
Marine equipment — barges	$	14,092	$	19,780	$	20,841
Marine equipment — towing vessels		143,067		136,331		124,877
Other buildings and equipment		9,383		9,146		10,298
Rental expense	$	166,542	$	165,257	$	156,016

Future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2015 were as follows (in thousands):

	Land, Buildings		Marine Equipment
	And Equipment		Barges		Towing Vessels		Total
2016	$	7,654	$	11,751	$	100,124	$	119,529
2017		6,806		10,544		46,362		63,712
2018		6,166		8,843		20,732		35,741
2019		4,375		3,856		317		8,548
2020		3,570		2,239		—		5,809
Thereafter		13,519		—		—		13,519
	$	42,090	$	37,233	$	167,535	$	246,858

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(7) Stock Award Plans

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Compensation cost	$	11,104	$	11,591	$	11,621
Income tax benefit	$	4,120	$	4,358	$	4,370

The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options, restricted stock and performance awards. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At December 31, 2015, 2,329,238 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights.

The following is a summary of the stock option activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		351,173		$	45.54
Granted		111,527		$	70.94
Exercised		(83,096	)	$	34.51
Canceled or expired		—		$	—
Outstanding at December 31, 2013		379,604		$	55.42
Granted		75,204		$	98.91
Exercised		(119,276	)	$	42.07
Canceled or expired		(12,576	)	$	68.89
Outstanding at December 31, 2014		322,956		$	69.95
Granted		114,894		$	74.99
Exercised		—		$	—
Canceled or expired		(7,418	)	$	86.28
Outstanding at December 31, 2015		430,432		$	71.01

Under the employee plan, stock options exercisable were 239,518, 157,140 and 175,170 at December 31, 2015, 2014 and 2013, respectively.

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The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at December 31, 2015:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregated Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregated Intrinsic Value
$	31.35 – $36.35		16,910		1.1	$	32.82				16,910	$	32.82
$	46.74		56,629		2.1	$	46.74				56,629	$	46.74
$	65.28 – $74.99		283,963		4.6	$	70.98				141,669	$	67.90
$	93.64 – $96.85		35,763		5.1	$	94.27				11,921	$	94.27
$	101.46 – $114.11		37,167		5.2	$	103.22				12,389	$	103.22
$	31.35 – $114.11		430,432		4.2	$	71.01	$	668,000		239,518	$	63.56	$	668,000

The following is a summary of the restricted stock award activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		418,128		$	45.39
Granted		139,971		$	69.85
Vested		(149,162	)	$	44.30
Forfeited		(9,659	)	$	61.20
Nonvested balance at December 31, 2013		399,278		$	54.92
Granted		97,706		$	97.46
Vested		(141,870	)	$	45.64
Forfeited		(33,661	)	$	63.56
Nonvested balance at December 31, 2014		321,453		$	71.04
Granted		122,740		$	75.04
Vested		(113,958	)	$	60.73
Forfeited		(18,508	)	$	82.00
Nonvested balance at December 31, 2015		311,727		$	75.73

The Company has a stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for automatic grants of restricted stock to nonemployee directors after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are ten years.  The restricted stock issued after each annual meeting of stockholders vest six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At December 31, 2015, 539,531 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified independent directors.

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The following is a summary of the stock option activity under the director plan described above for the years ended December 31, 2015, 2014, and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		345,938		$	45.84
Granted		54,958		$	75.17
Exercised		(80,574	)	$	46.75
Outstanding at December 31, 2013		320,322		$	50.64
Granted		42,000		$	99.52
Exercised		(63,988	)	$	39.08
Outstanding at December 31, 2014		298,334		$	60.01
Granted		—		$	—
Exercised		(77,905	)	$	47.65
Outstanding at December 31, 2015		220,429		$	64.37

Under the director plan, options exercisable were 220,429, 298,334 and 320,082 at December 31, 2015, 2014 and 2013, respectively.

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at December 31, 2015:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregate Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregate Intrinsic Value
$29.60 – $36.82		30,000		1.9	$	33.60				30,000	$	33.60
$41.24 – $56.45		71,276		4.3	$	52.34				71,276	$	52.34
$61.89 – $62.48		41,153		6.5	$	62.34				41,153	$	62.34
$75.17 – $99.52		78,000		7.3	$	88.28				78,000	$	88.28
$29.60 – $99.52		220,429		5.4	$	64.37	$	775,000		220,429	$	64.37	$	775,000

The following is a summary of the restricted stock award activity under the director plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		348		$	62.99
Granted		10,536		$	75.65
Vested		(10,500	)	$	75.23
Nonvested balance at December 31, 2013		384		$	75.65
Granted		8,160		$	99.52
Vested		(8,252	)	$	98.41
Nonvested balance at December 31, 2014		292		$	99.52
Granted		20,350		$	78.52
Vested		(18,851	)	$	79.77
Nonvested balance at December 31, 2015		1,791		$	68.73

76

The total intrinsic value of all stock options exercised under all of the Company’s plans was $2,555,000, $11,671,000 and $6,703,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $948,000, $4,388,000 and $2,520,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $10,270,000, $14,847,000 and $10,993,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $3,810,000, $5,583,000 and $4,133,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015, there was $2,956,000 of unrecognized compensation cost related to nonvested stock options and $16,920,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.2 years and restricted stock over approximately 2.8 years. The total fair value of stock options vested was $2,180,000, $3,759,000 and $3,341,000 during the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of the restricted stock vested was $10,270,000, $14,847,000 and $10,993,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

The weighted average per share fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $25.18, $36.05 and $25.14, respectively. The fair value of the stock options granted during the years ended December 31, 2015, 2014 and 2013 was $2,893,000, $4,226,000 and $4,184,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the stock options during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Dividend yield	None			None			None
Average risk-free interest rate		1.3	%		2.0	%		1.1	%
Stock price volatility		33	%		33	%		34	%
Estimated option term		Six years			Six years or seven years			Six years or seven years

(8) Retirement Plans

The Company sponsors a defined benefit plan for its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities.

The fair value of plan assets was $243,588,000 and $242,275,000 at December 31, 2015 and 2014 respectively. As of December 31, 2015 and 2014, these assets were allocated among asset categories as follows:

Asset Category	2015			2014			Current Minimum, Target and Maximum Allocation Policy
U.S. equity securities		50	%		52	%		30% — 50%— 70	%
International equity securities		18	%		18	%		0% — 20%— 30	%
Debt securities		28	%		30	%		15% — 30%— 55	%
Cash and cash equivalents		4	%		—	%		0% — 0%— 5	%
		100	%		100	%

The plan assets are invested entirely in common collective trusts. These instruments are public investment vehicles valued using the net asset value provided by the administrator of the fund. The net asset value is classified within Level 2 of the valuation hierarchy as set forth in the accounting guidance for fair value measurements because the net asset value price is quoted on an inactive private market although the underlying investments are traded on an active market.

77

The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income). The primary objective in the investment management of assets is to achieve long-term growth of principal while avoiding excessive risk. Risk is managed through diversification of investments within and among asset classes, as well as by choosing securities that have an established trading and underlying operating history.

The Company makes various assumptions when determining defined benefit plan costs including, but not limited to, the current discount rate and the expected long-term return on plan assets. Discount rates are determined annually and are based on a yield curve that consists of a hypothetical portfolio of high quality corporate bonds with maturities matching the projected benefit cash flows. The Company assumed that plan assets would generate a long-term rate of return of 7.5% in 2015 and 2014. The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants comparing historical returns for various asset classes with its actual and targeted plan investments. The Company believes that its long-term asset allocation, on average, will approximate the targeted allocation.

The Company’s pension plan funding strategy has historically been to contribute an amount equal to the greater of the minimum required contribution under ERISA or the amount necessary to fully fund the plan on an accumulated benefit obligation (“ABO”) basis at the end of the fiscal year. The ABO is based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult. The Company’s pension plan funding was 102% of the pension plan’s ABO at December 31, 2015.

The Company sponsors an unfunded defined benefit health care plan that provides limited postretirement medical benefits to employees who met minimum age and service requirements, and to eligible dependents. The plan limits cost increases in the Company’s contribution to 4% per year. The plan is contributory, with retiree contributions adjusted annually. The plan eliminated coverage for future retirees as of December 31, 2011. The Company also has an unfunded defined benefit supplemental executive retirement plan (“SERP”) that was assumed in an acquisition in 1999. That plan ceased to accrue additional benefits effective January 1, 2000.

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The following table presents the change in benefit obligation and plan assets for the Company’s defined benefit plans and postretirement benefit plan (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Change in benefit obligation
Benefit obligation at beginning of year	$	315,075		$	249,960		$	1,637		$	1,529		$	1,264		$	2,307
Service cost		14,683			10,645			—			—			—			—
Interest cost		13,302			12,839			64			73			36			110
Actuarial loss (gain)		(39,474	)		66,640			(30	)		180			(321	)		(1,065	)
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Benefit obligation at end of year	$	297,325		$	315,075		$	1,526		$	1,637		$	891		$	1,264
Accumulated benefit obligation at end of year	$	238,775		$	241,592		$	1,526		$	1,637		$	—		$	—
Weighted-average assumption used to determine benefit obligation at end of year
Discount rate		4.5	%		4.1	%		4.5	%		4.1	%		4.5	%		4.1	%
Rate of compensation increase	Age-based table				4.25	%		—			—			—			—
Health care cost trend rate
Initial rate		—			—			—			—			6.5	%		7.0	%
Ultimate rate		—			—			—			—			5.0	%		5.0	%
Years to ultimate		—			—			—			—			2019			2019
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation
Increase	$	—		$	—		$	—		$	—		$	107		$	167
Decrease		—			—			—			—			(93	)		(141	)
Change in plan assets
Fair value of plan assets at beginning of year	$	242,275		$	254,523		$	—		$	—		$	—		$	—
Actual return on plan assets		(2,426	)		12,761			—			—			—			—
Employer contribution		10,000			—			145			145			88			88
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Fair value of plan assets at end of year	$	243,588		$	242,275		$	—		$	—		$	—		$	—

79

The following table presents the funded status and amounts recognized in the Company’s consolidated balance sheet for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Funded status at end of year
Fair value of plan assets	$	243,588		$	242,275		$	—		$	—		$	—		$	—
Benefit obligations		297,325			315,075			1,526			1,637			891			1,264
Funded status and amount recognized at end of year	$	(53,737	)	$	(72,800	)	$	(1,526	)	$	(1,637	)	$	(891	)	$	(1,264	)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—		$	—		$	—		$	—		$	—		$	—
Current liability		—			—			(149	)		(141	)		(68	)		(83	)
Long-term liability		(53,737	)		(72,800	)		(1,377	)		(1,496	)		(823	)		(1,181	)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	$	77,940		$	104,795		$	508		$	566		$	(6,319	)	$	(6,787	)
Prior service cost (credit)		—			—			—			—			—			—
Accumulated other compensation income	$	77,940		$	104,795		$	508		$	566		$	(6,319	)	$	(6,787	)

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Projected benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	297,325		$	315,075		$	1,526		$	1,637
Fair value of plan assets at end of year			243,588			242,275			—			—

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	—		$	—		$	1,526		$	1,637
Accumulated benefit obligation at end of year			—			—			1,526			1,637
Fair value of plan assets at end of year			—			—			—			—

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The following tables presents the expected cash flows for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected employer contributions
First year	$	—	$	8,400	$	152	$	143	$	70	$	84

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected benefit payments (gross)
Year one	$	7,678	$	7,100	$	152	$	143	$	81	$	96
Year two		8,298		7,672		157		151		86		98
Year three		9,013		8,333		154		155		86		103
Year four		9,748		9,080		152		153		86		95
Year five		10,415		9,868		149		150		85		94
Next five years		63,860		62,666		608		621		341		445

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015			2014
Expected federal subsidy
Year one	$	—	$	—	$	—	$	—	$	(11	)	$	(11	)
Year two		—		—		—		—		(11	)		(11	)
Year three		—		—		—		—		(11	)		(11	)
Year four		—		—		—		—		(12	)		(12	)
Year five		—		—		—		—		(12	)		(12	)
Next five years		—		—		—		—		(55	)		(55	)

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The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company’s defined benefit plans for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Pension Benefits
	Pension Plan									SERP
	2015			2014			2013			2015			2014			2013
Components of net periodic benefit cost
Service cost	$	14,683		$	10,645		$	12,824		$	—		$	—		$	—
Interest cost		13,302			12,839			11,400			64			73			70
Expected return on plan assets		(17,921	)		(18,858	)		(16,127	)		—			—			—
Amortization:
Actuarial loss		7,728			701			8,276			28			16			19
Prior service credit		—			—			—			—			—			—
Net periodic benefit cost		17,792			5,327			16,373			92			89			89
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Current year actuarial loss (gain)		(19,127	)		72,737			(61,759	)		(30	)		180			(138	)
Recognition of actuarial loss		(7,728	)		(701	)		(8,276	)		(28	)		(16	)		(19	)
Recognition of prior service credit		—			—			—			—			—			—
Total recognized in other comprehensive income		(26,855	)		72,036			(70,035	)		(58	)		164			(157	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(9,063	)	$	77,363		$	(53,662	)	$	34		$	253		$	(68	)
Weighted average assumptions used to determine net periodic benefit cost
Discount rate		4.1	%		5.0	%		4.1	%		4.1	%		5.0	%		4.1	%
Expected long-term rate of return on plan assets		7.5	%		7.5	%		7.5	%		—			—			—
Rate of compensation increase		4.25	%		4.25	%		4.25	%		—			—			—

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Pension Benefits
	Pension Plan		SERP
Actuarial loss	$	4,924	$	26
Prior service credit		—		—
	$	4,924	$	26

82

The components of net periodic benefit cost and other changes in benefit obligations recognized in other comprehensive income for the Company’s postretirement benefit plan for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
	2015			2014			2013
Components of net periodic benefit cost
Service cost	$	—		$	—		$	—
Interest cost		36			110			112
Amortization:
Actuarial gain		(793	)		(649	)		(620	)
Prior service cost		—			—			—
Net periodic benefit cost		(757	)		(539	)		(508	)
Other changes in benefit obligations recognized in other comprehensive income
Current year actuarial gain		(322	)		(1,065	)		(600	)
Recognition of actuarial gain		793			649			620
Recognition of prior service cost		—			—			—
Adjustment for actual Medicare Part D reimbursement		(3	)		(8	)		(5	)
Total recognized in other comprehensive income		468			(424	)		15
Total recognized in net periodic benefit cost and other comprehensive income	$	(289	)	$	(963	)	$	(493	)
Weighted average assumptions used to determine net periodic benefit cost
Discount rate		4.1	%		5.0	%		4.1	%
Health care cost trend rate:
Initial rate		7.0	%		7.0	%		7.5	%
Ultimate rate		5.0	%		5.0	%		5.0	%
Years to ultimate		2019			2018			2018
Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost
Increase	$	5		$	7		$	10
Decrease		(4	)		(6	)		(9	)

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
Actuarial gain	$	(745	)
Prior service cost		—
	$	(745	)

The Company also contributes to a multiemployer pension plan pursuant to a collective bargaining agreement which covers certain vessel crew members of its coastal operations and expires on April 30, 2018. The Company began participation in the Seafarers Pension Trust (“SPT”) with the Penn acquisition on December 14, 2012.

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Contributions to the SPT are made currently based on a per day worked basis and charged to expense as incurred and included in costs of sales and operating expenses in the consolidated statement of earnings. During 2015 and 2014, the Company made contributions of $1,202,000 and $1,290,000, respectively, to the SPT and none of the Company’s contributions to the SPT exceeded 5% of total contributions to the SPT nor did the Company pay any material surcharges.

The federal identification number of the SPT is 13-6100329 and the Certified Zone Status is Green at December 31, 2015. The Company’s future minimum contribution requirements under the SPT are unavailable because actuarial reports for the 2015 plan year are not yet complete and such contributions are subject to negotiations between the employers and the unions. The SPT was neither in endangered or critical status for the 2014 plan year, the latest period for which a report is available, as the funded status was in excess of 100%. Based on an actuarial valuation performed as of December 31, 2014, there would be no withdrawal liability if the Company chose to withdraw from the SPT although the Company currently has no intention of terminating its participation in the SPT.

In addition to the defined benefit plans, the Company sponsors various defined contribution plans for substantially all employees. The aggregate contributions to the plans were $24,077,000, $23,356,000 and $23,158,000 in 2015, 2014 and 2013, respectively.

(9) Other Comprehensive Income

The Company’s changes in other comprehensive income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015							2014									2013
	Gross Amount		Income Tax (Provision) Benefit			Net Amount		Gross Amount			Income Tax (Provision) Benefit			Net Amount			Gross Amount			Income Tax (Provision) Benefit			Net Amount
Pension and postretirement benefits (a):
Amortization of net actuarial loss	$	6,963	$	(2,667	)	$	4,296	$	68		$	(26	)	$	42		$	7,675		$	(2,942	)	$	4,733
Actuarial gains (losses)		19,482		(7,456	)		12,026		(71,843	)		27,507			(44,336	)		62,503			(23,962	)		38,541
Foreign currency translation adjustments		29		—			29		(35	)		—			(35	)		108			—			108
Change in fair value of derivative instruments (b):
Unrealized gains (losses)		—		—			—		24			(9	)		15			2,851			(996	)		1,855
Reclassified to net earnings		—		—			—		121			(51	)		70			(1,389	)		486			(903	)
Total	$	26,474	$	(10,123	)	$	16,351	$	(71,665	)	$	27,421		$	(44,244	)	$	71,748		$	(27,414	)	$	44,334

(a) Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 8 – Retirement Plans)

(b) Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

84

(10) Earnings Per Share

The following table presents the components of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts):

	2015			2014			2013
Net earnings attributable to Kirby	$	226,684		$	282,006		$	253,061
Undistributed earnings allocated to restricted shares		(1,345	)		(1,643	)		(1,819	)
Income available to Kirby common stockholders — basic		225,339			280,363			251,242
Undistributed earnings allocated to restricted shares		1,345			1,643			1,819
Undistributed earnings reallocated to restricted shares		(1,343	)		(1,637	)		(1,813	)
Income available to Kirby common stockholders — diluted	$	225,341		$	280,369		$	251,248
Shares outstanding:
Weighted average common stock issued and outstanding		55,056			57,006			56,762
Weighted average unvested restricted stock		(327	)		(332	)		(408	)
Weighted average common stock outstanding — basic		54,729			56,674			56,354
Dilutive effect of stock options		97			193			198
Weighted average common stock outstanding — diluted		54,826			56,867			56,552
Net earnings per share attributable to Kirby common stockholders:
Basic	$	4.12		$	4.95		$	4.46
Diluted	$	4.11		$	4.93		$	4.44

Certain outstanding options to purchase approximately 227,000, 75,000 and 2,000 shares of common stock were excluded in the computation of diluted earnings per share as of December 31, 2015, 2014 and 2013, respectively, as such stock options would have been antidilutive.

(11) Quarterly Results (Unaudited)

The unaudited quarterly results for the year ended December 31, 2015 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Revenues	$	587,673		$	543,156		$	532,565		$	484,138
Costs and expenses		486,136			445,113			437,115			400,178
Gain (loss) on disposition of assets		1,555			91			(400	)		426
Operating income		103,092			98,134			95,050			84,386
Other income (expense)		60			(303	)		22			9
Interest expense		(5,250	)		(4,759	)		(4,449	)		(4,280	)
Earnings before taxes on income		97,902			93,072			90,623			80,115
Provision for taxes on income		(36,491	)		(34,696	)		(33,512	)		(29,043	)
Net earnings		61,411			58,376			57,111			51,072
Less: Net earnings attributable to noncontrolling interests		(333	)		(301	)		(268	)		(384	)
Net earnings attributable to Kirby	$	61,078		$	58,075		$	56,843		$	50,688
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.04		$	1.04		$	0.94
Diluted	$	1.09		$	1.04		$	1.04		$	0.94

85

The unaudited quarterly results for the year ended December 31, 2014 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Revenues	$	589,246		$	628,054		$	680,721		$	668,297
Costs and expenses		482,443			501,556			552,642			554,646
Gain on disposition of assets		51			527			47			156
Operating income		106,854			127,025			128,126			113,807
Other income (expense)		(236	)		123			27			125
Interest expense		(5,618	)		(5,469	)		(5,225	)		(5,149	)
Earnings before taxes on income		101,000			121,679			122,928			108,783
Provision for taxes on income		(37,989	)		(45,768	)		(45,715	)		(40,310	)
Net earnings		63,011			75,911			77,213			68,473
Less: Net earnings attributable to noncontrolling interests		(765	)		(919	)		(496	)		(422	)
Net earnings attributable to Kirby	$	62,246		$	74,992		$	76,717		$	68,051
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.32		$	1.34		$	1.19
Diluted	$	1.09		$	1.31		$	1.34		$	1.19

Quarterly basic and diluted earnings per share may not total to the full year per share amounts, as the weighted average number of shares outstanding for each quarter fluctuates as a result of the assumed exercise of stock options.

(12) Contingencies and Commitments

In June 2011, the Company as well as three other companies received correspondence from the United States Environmental Protection Agency (“EPA”) concerning ongoing cleanup and restoration activities under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) with respect to a Superfund site, the Gulfco Marine Maintenance Site (“Gulfco”), located in Freeport, Texas. In prior years, various subsidiaries of the Company utilized a successor to Gulfco to perform tank barge cleaning services, sand blasting and repair on certain Company vessels. Since 2005, four named Potentially Responsible Parties (“PRPs”) have participated in the investigation, cleanup and restoration of the site under an administrative order from EPA. Information provided by the PRPs indicates that approximately $9,943,000 was incurred in connection with the cleanup effort. The EPA has incurred oversight costs of approximately $2,258,000. The named PRPs filed suit against the Company and approximately 21 other defendants seeking contribution and indemnity under CERCLA for costs incurred in connection with its activities in cleaning up the Gulfco Site. The Company and other nonparticipating PRPs continue to address settlement terms related to this matter with the Gulfco Restoration Group.

In 2009, the Company was named a PRP in addition to a group of approximately 250 named PRPs under CERCLA with respect to a Superfund site, the Portland Harbor Superfund site (“Portland Harbor”) in Portland, Oregon. The site was declared a Superfund site in December 2000 as a result of historical heavily industrialized use due to manufacturing, shipbuilding, petroleum storage and distribution, metals salvaging, and electrical power generation activities which led to contamination of Portland Harbor, an urban and industrial reach of the lower Willamette River located immediately downstream of downtown Portland. The Company’s involvement arises from four spills at the site after it was declared a Superfund site, as a result of predecessor entities’ actions in the area. To date, there is no information suggesting the extent of the costs or damages to be claimed from the 250 notified PRPs. Based on the nature of the involvement at the Portland Harbor site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

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In 2000, the Company and a group of approximately 45 other companies were notified that they are PRPs under CERCLA with respect to a Superfund site, the Palmer Barge Line Superfund Site (“Palmer”), located in Port Arthur, Texas. In prior years, Palmer had provided tank barge cleaning services to various subsidiaries of the Company. The Company and three other PRPs entered into an agreement with the EPA to perform a remedial investigation and feasibility study and, subsequently, a limited remediation was performed and is now complete. During the 2007 third quarter, five new PRPs entered into an agreement with the EPA related to the Palmer site. In July 2008, the EPA sent a letter to approximately 30 PRPs for the Palmer site, including the Company, indicating that it intends to pursue recovery of $2,949,000 of costs it incurred in relation to the site. The Company and the other PRPs have resolved the EPA’s past costs claim which was approved by the EPA and Department of Justice. The Company has funded its contribution to settlement and the Consent Decree has been granted by the Court fulfilling all procedural requirements of the settlement.

In January 2015, the Company was named as a defendant in a Complaint filed in the U.S. District Court of the Southern District of Texas, USOR Site PRP Group vs. A&M Contractors, USES, Inc. et al. This is a civil action pursuant to the provisions of CERCLA and the Texas Solid Waste Disposal Act for recovery of past and future response costs incurred and to be incurred by the USOR Site PRP Group for response activities at the U.S. Oil Recovery Superfund Site.  The property was a former sewage treatment plant owned by Defendant City of Pasadena, Texas from approximately 1945 until it was acquired by U.S. Oil Recovery in January 2009.  Throughout its operating life, the U.S. Oil Recovery facility portion of the USOR Site received and performed wastewater pretreatment of municipal and Industrial Class I and Class II wastewater, characteristically hazardous waste, used oil and oily sludges, and municipal solid waste.  Associated operations were conducted at the MCC Recycling facility portion of the USOR Site after it was acquired by U.S. Oil Recovery from the City of Pasadena in January 2009.  Initially, the plaintiff stayed prosecution of the case pending responses to initial settlement demands.  In January 2016, the Company filed responsive pleadings in this matter.  Based on the nature of the involvement at the USOR site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

With respect to the above sites, the Company has recorded reserves, if applicable, for its estimated potential liability for its portion of the EPA’s past costs claim based on information developed to date including various factors such as the Company’s liability in proportion to other responsible parties and the extent to which such costs are recoverable from third parties.

On July 25, 2011, a subsidiary of the Company was named as a defendant in the U.S. District Court for the Southern District of Texas - Galveston Division, in a complaint styled Figgs. v. Kirby Inland Marine, LP (“Kirby Inland Marine”), et al., which alleges that the plaintiff individually as a vessel tankerman, and on behalf of other current and former similarly situated vessel tankermen employed with the Company, is entitled to overtime pay under the Fair Labor Standards Act. Plaintiffs assert that vessel tankermen are not seamen who are expressly exempt from overtime pay provisions under the law. The case was conditionally certified as a collective action on December 22, 2011 at which time the Court prescribed a notice period for current and former employees to voluntarily participate as plaintiffs. The notice period closed on February 27, 2012. Plaintiffs seek compensatory damages in the form of back pay, attorneys’ fees, cost and liquidated damages. In a recent case that presented substantially the same facts and legal issues, the United States Court of Appeals for the Fifth Circuit ruled that vessel tankermen are seamen who are exempt from the overtime pay provisions of the Fair Labor Standards Act. While the Figgs case is still pending, the Company believes that, after the Fifth Circuit ruling, it will incur no material liability in the case.

On March 22, 2014, two tank barges and a towboat (the M/V Miss Susan), owned by Kirby Inland Marine, LP, a wholly owned subsidiary of the Company, were involved in a collision with the M/S Summer Wind on the Houston Ship Channel near Texas City, Texas. The lead tank barge was damaged in the collision resulting in a discharge of intermediate fuel oil from one of its cargo tanks. The USCG and the National Transportation Safety Board named the Company and the Captain of the M/V Miss Susan, as well as the owner and the pilot of the M/S Summer Wind, as parties of interest in their investigation as to the cause of the incident. Sea Galaxy Ltd is the owner of the M/S Summer Wind. The Company is participating in the natural resource damage assessment and restoration process with federal and state government natural resource trustees.

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The Company and the owner of the M/S Summer Wind filed actions in the U.S. District Court for the Southern District of Texas seeking exoneration from or limitation of liability relating to the foregoing incident as provided for in the federal rules of procedure for maritime claims. The two actions were consolidated for procedural purposes since they both arise out of the same occurrence. There is a separate process for making a claim under the Oil Pollution Act of 1990 (“OPA”). The Company is processing claims properly presented, documented and recoverable under OPA. The Company is named as a party in other lawsuits filed in connection with this incident which are currently stayed by orders entered into by the court in the limitation proceedings, some of which may also have been presented as claims in the limitation proceeding. The actions include allegation of business interruption, loss of profit, loss of use of natural resources and seek unspecified economic and compensatory damages. In addition, the Company has received claims from numerous parties claiming property damage and various economic damages. The Company has also been named as a defendant in a civil action by two crewmembers of the M/V Miss Susan, alleging damages under the general maritime law and the Jones Act. The litigation and claims process is ongoing. In December 2015, the Company submitted evidence in the liability trial in connection with the consolidated limitation actions.  The damages phase of the trial is scheduled for the second quarter of 2016.  The Company believes it has adequate insurance coverage for pollution, marine and other potential liabilities arising from the incident. The Company believes it has accrued adequate reserves for the incident and does not expect the incident to have a material adverse effect on its business or financial condition.

In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations or cash flows. Management believes that it has recorded adequate reserves and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies.

Certain Significant Risks and Uncertainties. The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. However, in the opinion of management, the amounts would be immaterial.

The customer base of the marine transportation segment includes the major industrial petrochemical and chemical manufacturers, refining companies and agricultural chemical manufacturers operating in the United States. During 2015, approximately 80% of marine transportation’s inland revenues were from movements of such products under term contracts, typically ranging from one year to three years, some with renewal options. During 2015, approximately 80% of the marine transportation’s coastal revenues were under term contracts. While the manufacturing and refining companies have generally been customers of the Company for numerous years (some as long as 40 years) and management anticipates a continuing relationship, there is no assurance that any individual contract will be renewed. No single customer of the marine transportation segment accounted for 10% of the Company’s revenues in 2015, 2014 and 2013.

Major customers of the diesel engine services segment include inland and offshore barge operators, oilfield service companies, oil and gas operators and producers, offshore fishing companies, marine and on-highway transportation companies, the USCG and United States Navy, and power generation, nuclear and industrial companies. The segment operates as an authorized distributor in 17 eastern states and the Caribbean, and as non-exclusive authorized service centers for Electro-Motive Diesel, Inc. (“EMD”) throughout the rest of the United States for marine and power generation applications. The diesel engine services segment’s relationship with EMD has been maintained for 50 years. The segment also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere high-speed diesel engines and Allison transmissions and gears in the Gulf Coast region, as well as an authorized marine dealer for Caterpillar in Alabama, Kentucky, Louisiana and New Jersey.

United has maintained continuous exclusive distribution rights for MTU and Allison since 1946. United is one of MTU’s top five distributors of MTU off-highway engines in North America with exclusive distribution rights in Oklahoma, Arkansas, Louisiana and Mississippi. In addition, as a distributor of Allison transmission products, United has distribution rights in Oklahoma, Arkansas and Louisiana. Finally, United is also the exclusive distributor for Daimler engines and related equipment in Oklahoma, Arkansas and Louisiana.

88

The results of the diesel engine services segment are largely tied to the industries it serves and, therefore, can be influenced by the cycles of such industries. No single customer of the diesel engine services segment accounted for 10% of the Company’s revenues in 2015, 2014 and 2013.

Weather can be a major factor in the day-to-day operations of the marine transportation segment. Adverse weather conditions, such as high or low water, tropical storms, hurricanes, tsunamis, fog and ice, can impair the operating efficiencies of the marine fleet. Shipments of products can be delayed or postponed by weather conditions, which are totally beyond the control of the Company. Adverse water conditions are also factors which impair the efficiency of the fleet and can result in delays, diversions and limitations on night passages, and dictate horsepower requirements and size of tows. Additionally, much of the inland waterway system is controlled by a series of locks and dams designed to provide flood control, maintain pool levels of water in certain areas of the country and facilitate navigation on the inland river system. Maintenance and operation of the navigable inland waterway infrastructure is a government function handled by the Army Corps of Engineers with costs shared by industry. Significant changes in governmental policies or appropriations with respect to maintenance and operation of the infrastructure could adversely affect the Company.

The Company’s marine transportation segment is subject to regulation by the USCG, federal laws, state laws and certain international conventions, as well as numerous environmental regulations. The Company believes that additional safety, environmental and occupational health regulations may be imposed on the marine industry. There can be no assurance that any such new regulations or requirements, or any discharge of pollutants by the Company, will not have an adverse effect on the Company.

The Company’s marine transportation segment competes principally in markets subject to the Jones Act, a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States, and manned and owned by United States citizens. The Jones Act cabotage provisions occasionally come under attack by interests seeking to facilitate foreign flag competition in trades reserved for domestic companies and vessels under the Jones Act. The Company believes that continued efforts will be made to modify or eliminate the cabotage provisions of the Jones Act. If such efforts are successful, certain elements could have an adverse effect on the Company.

The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $19,968,000 at December 31, 2015, including $6,299,000 in letters of credit and $13,669,000 in performance bonds. All of these instruments have an expiration date within four years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur in connection with these instruments.

(13) Segment Data

The Company’s operations are aggregated into two reportable business segments as follows:

Marine Transportation — Provides marine transportation principally by United States flag vessels of liquid cargoes throughout the United States inland waterway system, along all three United States coasts, in Alaska and Hawaii and, to a lesser extent, in United States coastal transportation of dry-bulk cargoes. The principal products transported include petrochemicals, black oil, refined petroleum products and agricultural chemicals.

Diesel Engine Services — Provides after-market services for medium-speed and high-speed diesel engines, reduction gears and ancillary products for marine and power generation applications, distributes and services high-speed diesel engines, transmissions and pumps, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based oilfield service and oil and gas operator and producer markets.

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The Company’s two reportable business segments are managed separately based on fundamental differences in their operations. The Company’s accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. Intersegment revenues, based on market-based pricing, of the diesel engine services segment from the marine transportation segment of $26,203,000, $25,769,000 and $27,669,000 in 2015, 2014 and 2013, respectively, as well as the related intersegment profit of $2,620,000, $2,577,000 and $2,767,000 in 2015, 2014 and 2013, respectively, have been eliminated from the tables below.

The following table sets forth by reportable segment the revenues, profit or loss, total assets, depreciation and amortization, and capital expenditures attributable to the principal activities of the Company for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
Revenues:
Marine transportation	$	1,663,090		$	1,770,684		$	1,713,167
Diesel engine services		484,442			795,634			529,028
	$	2,147,532		$	2,566,318		$	2,242,195
Segment profit (loss):
Marine transportation	$	374,842		$	429,864		$	408,255
Diesel engine services		18,921			60,063			42,767
Other		(32,051	)		(35,537	)		(42,344	)
	$	361,712		$	454,390		$	408,678
Total assets:
Marine transportation	$	3,451,553		$	3,317,696		$	3,046,692
Diesel engine services		637,549			736,129			576,472
Other		67,164			88,084			59,353
	$	4,156,266		$	4,141,909		$	3,682,517
Depreciation and amortization:
Marine transportation	$	175,798		$	154,019		$	149,574
Diesel engine services		12,498			11,463			11,096
Other		3,944			3,830			3,767
	$	192,240		$	169,312		$	164,437
Capital expenditures:
Marine transportation	$	311,862		$	340,315		$	237,964
Diesel engine services		28,907			7,486			4,658
Other		4,706			7,343			10,605
	$	345,475		$	355,144		$	253,227

The following table presents the details of “Other” segment profit (loss) for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
General corporate expenses	$	(14,773	)	$	(14,896	)	$	(15,728	)
Interest expense		(18,738	)		(21,461	)		(27,872	)
Gain on disposition of assets		1,672			781			888
Other income (expense)		(212	)		39			368
	$	(32,051	)	$	(35,537	)	$	(42,344	)

The following table presents the details of “Other” total assets as of December 31, 2015, 2014 and 2013 (in thousands):

	2015		2014		2013
General corporate assets	$	65,074	$	85,545	$	57,197
Investment in affiliates		2,090		2,539		2,156
	$	67,164	$	88,084	$	59,353

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(14) Related Party Transactions

Richard J. Alario, a current director of the Company, is Chief Executive Officer of Key Energy Services, Inc. (“Key Energy”). Key Energy paid the Company $572,000 in 2015, $1,232,000 in 2014 and $1,973,000 in 2013 for oilfield service equipment and for parts and service. Such sales and service were in the ordinary course of business of the Company.

The Company is a 50% owner of The Hollywood Camp, L.L.C. (“The Hollywood Camp”), a company that owns and operates a hunting and fishing facility used by the Company primarily for customer entertainment. The Hollywood Camp allocates lease and lodging expenses to its members based on their usage of the facilities. Key Energy paid The Hollywood Camp $1,236,000 in 2015, $1,634,000 in 2014 and $1,112,000 in 2013 for use of the facility. The Company paid The Hollywood Camp $2,830,000 in 2015, $2,303,000 in 2014 and $2,044,000 in 2013 for its share of facility expenses.

The husband of Amy D. Husted, Vice President — Legal of the Company, is a partner in the law firm of Strasburger & Price, LLP. The Company paid the law firm $596,000 in 2015, $1,184,000 in 2014 and $851,000 in 2013 for legal services in connection with matters in the ordinary course of business of the Company.

The Company is a 50% owner of Bolivar Terminal Co., Inc. (“Bolivar”), a company that provides barge fleeting services (temporary barge storage facilities) in the Houston, Texas area. The Company paid Bolivar $895,000 in 2015, $561,000 in 2014 and $703,000 in 2013 for barge fleeting services. Such services were in the ordinary course of business of the Company.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

1. Financial Statements

Included in Part III of this report:

Report of Independent Registered Public Accounting Firm.

Report of Independent Registered Public Accounting Firm.

Consolidated Balance Sheets, December 31, 2015 and 2014.

Consolidated Statements of Earnings, for the years ended December 31, 2015, 2014 and 2013.

Consolidated Statements of Comprehensive Income, for the years ended December 31, 2015, 2014 and 2013.

Consolidated Statements of Cash Flows, for the years ended December 31, 2015, 2014 and 2013.

Consolidated Statements of Stockholders’ Equity, for the years ended December 31, 2015, 2014 and 2013.

Notes to Consolidated Financial Statements, for the years ended December 31, 2015, 2014 and 2013.

2. Financial Statement Schedules

All schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes.

3. Exhibits

Exhibit Number	Description of Exhibit
3.1	— Restated Articles of Incorporation of the Company with all amendments to date (incorporated by reference to Exhibit 3.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
3.2	— Bylaws of the Company, as amended to date (incorporated by reference to Exhibit 3.2 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).

92

Exhibit Number	Description of Exhibit
10.1	— Note Purchase Agreement dated December 13, 2012 among Kirby Corporation and the purchasers named therein relating to $500,000,000 in Senior Notes (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on December 20, 2012).
10.2	— Credit Agreement dated as of April 30, 2015 among Kirby Corporation, JP Morgan Chase Bank, N.A., as Administrative Agent, and the banks named therein (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on May 5, 2015).
10.3†	— Deferred Compensation Plan for Key Employees (incorporated by reference to Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005).
10.4†	— Annual Incentive Plan Guidelines for 2015 (incorporated by reference to Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
10.5†*	— Annual Incentive Plan Guidelines for 2016.
10.6†	— 2000 Nonemployee Director Stock Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015).
10.7†	— 2005 Stock and Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015).
10.8†	— Form of Nonincentive Stock Option Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
10.9†	— Form of Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
10.10†	— Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
10.11†	— Nonemployee Director Compensation Program (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015).
21.1*	— Consolidated Subsidiaries of the Registrant.
23.1*	— Consent of Independent Registered Public Accounting Firm.

93

Exhibit Number	Description of Exhibit
31.1*	— Certification of Chief Executive Officer Pursuant to Rule 13a-14(a).
31.2*	— Certification of Chief Financial Officer Pursuant to Rule 13a-14(a).
32*	— Certification Pursuant to 18 U.S.C. Section 1350 (As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002).
101.INS**	— XBRL Instance Document
101.SCH**	— XBRL Taxonomy Extension Schema Document
101.CAL**	— XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	— XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB**	— XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	— XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

** These exhibits are furnished herewith. In accordance with Rule 406T of Regulations S-T, these exhibits are not deemed to be filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

† Management contract, compensatory plan or arrangement.

94

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KIRBY CORPORATION
	(REGISTRANT)
	By:	/s/ C. ANDREW SMITH
		C. Andrew Smith
		Executive Vice President and
		Chief Financial Officer
Dated: February 22, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Capacity	Date
/s/ JOSEPH H. PYNE	Chairman of the Board and Director	February 22, 2016
Joseph H. Pyne
/s/ DAVID W. GRZEBINSKI	President, Chief Executive Officer and	February 22, 2016
David W. Grzebinski	Director
	(Principal Executive Officer)
/s/ C. ANDREW SMITH	Executive Vice President and	February 22, 2016
C. Andrew Smith	Chief Financial Officer
	(Principal Financial Officer)
/s/ RONALD A. DRAGG	Vice President, Controller and Assistant	February 22, 2016
Ronald A. Dragg	Secretary
	(Principal Accounting Officer)
/s/ ANNE-MARIE N. AINSWORTH	Director	February 22, 2016
Anne-Marie N. Ainsworth
/s/ RICHARD J. ALARIO	Director	February 22, 2016
Richard J. Alario
/s/ BARRY E. DAVIS	Director	February 22, 2016
Barry E. Davis
/s/ C. SEAN DAY	Director	February 22, 2016
C. Sean Day
/s/ WILLIAM M. LAMONT, JR.	Director	February 22, 2016
William M. Lamont, Jr.
/s/ MONTE J. MILLER	Director	February 22, 2016
Monte J. Miller
/s/ RICHARD R. STEWART	Director	February 22, 2016
Richard R. Stewart
/s/ WILLIAM M. WATERMAN	Director	February 22, 2016
William M. Waterman

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
10.5†*	— Annual Incentive Plan Guidelines for 2016.
21.1*	— Consolidated Subsidiaries of the Registrant.
23.1*	— Consent of Independent Registered Public Accounting Firm.
31.1*	— Certification of Chief Executive Officer Pursuant to Rule 13a-14(a).
31.2*	— Certification of Chief Financial Officer Pursuant to Rule 13a-14(a).
32*	— Certification Pursuant to 18 U.S.C. Section 1350 (As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002).
101.INS**	— XBRL Instance Document
101.SCH**	— XBRL Taxonomy Extension Schema Document
101.CAL**	— XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	— XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB**	— XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	— XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

** These exhibits are furnished herewith. In accordance with Rule 406T of Regulation S-T, these exhibits are not deemed to be filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

† Management contract, compensatory plan or arrangement.

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EX-10.5

Exhibit 10.5

ANNUAL INCENTIVE PLAN (AIP)

2016 Plan Year

Guidelines

KIRBY CORPORATION

January 2016

TABLE OF CONTENTS

Introduction	2
The Annual Incentive Plan	3
Plan Objectives	3
Performance Period	3
Eligibility	3
Individual Bonus Targets	4
Aggregate Payment Amount	4
Section 162(m) Performance Goal and Maximum Awards	5
Performance Measures	5
Business Group Designations and Weightings	5
Performance Standards for Interim Incentive Payment Calculations	6
Administration	8

1

Introduction

Kirby Corporation (together with its subsidiaries, “Kirby” or the “Company”) established the 2016 Annual Incentive Plan (the “Plan”) to focus employees on identifying and achieving business strategies that lead to increased stockholder value.  The Plan is also intended to reward superior performance by employees and their contribution to achieving Kirby’s objectives.  This program may be offered, in whole or in part, to wholly owned subsidiaries of the Company, at the Company’s discretion.

Certain aspects of this Plan are complex.  Although these guidelines establish rules for Plan operation, those rules may not work in all circumstances.  Therefore, the Compensation Committee of the Kirby Board of Directors has discretion to interpret these guidelines to assure the awards are consistent with the Plan’s purposes and the Company’s interests.  All decisions by the Compensation Committee shall be final and binding.

Unless resolutions of the Compensation Committee expressly provide otherwise, awards granted under the Plan shall constitute performance awards granted under Article IV of the Kirby Corporation 2005 Stock and Incentive Plan (as amended from time to time, the “Stock Plan”) and are subject to the terms and provisions of the Stock Plan that apply to such performance awards.

This Plan or any part thereof may be amended, modified, or terminated at any time without prior notice, by written authorization of (i) the Compensation Committee or (ii) the Chief Executive Officer of the Company; provided that the Plan may not be amended or modified in a manner that would cause an award that is intended to satisfy the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (“Section 162(m)”) to fail to satisfy the exception.

2

The Annual Incentive Plan

Each award granted under the Plan is an award for total Company and designated Business Group performance.  Awards are generally based on achieving the Company Performance Goal as well as additional Company, Business Group and individual performance measures and objectives.  Once the Performance Goal is reached participants in the Plan become eligible for a bonus.

All amounts paid to participants pursuant to the Plan shall be subject to any policy relating to the recovery of erroneously awarded incentive compensation that may hereafter be adopted by the Company in order to comply with Securities and Exchange Commission rules or New York Stock Exchange listing standards.

Plan Objectives

The Plan key objectives are:

· Provide an annual incentive plan that drives performance toward objectives critical to creating stockholder value.

· Offer competitive cash compensation opportunities to key Kirby employees.

· Reward outstanding achievement by employees who directly affect Kirby’s results.

· Assist Kirby in attracting and retaining high quality employees.

· Reflect both quantitative and qualitative performance factors in actual bonus payouts.

· Ensure that incentive payments made by the Company are fully deductible by the Company.

Performance Period

Performance is measured on a calendar year basis for the Plan.  The Performance Period begins on January 1, 2016 and ends on December 31, 2016.

Eligibility

· Generally, managerial employees and Kirby Inland Marine Wheelhouse employees classified as Captain, Relief Captain or Pilot, are eligible for participation.  Selection for participation in the Plan is based upon each position’s ability to impact long-term financial results of the Company and designation by management.  Some employees in managerial positions might not be included in the Plan.

3

· In order to be eligible to receive an incentive payment under the Plan, participants must be employed on the last day of the Performance Period and on the date bonuses are actually paid for the Performance Period, unless their earlier termination is due to death, normal retirement or disability. If a participant’s employment is terminated prior to the last day of the Performance Period, or prior to the date of payment, for any reason other than death, normal retirement or disability, any bonus the participant may otherwise have received will be forfeited and the participant will have no right to any incentive payment under the Plan.

· Participation in the Plan in 2016 does not guarantee participation in similar plans in future years.  Participants in the Plan or in similar plans in future years will be notified annually of their selection for participation.

Individual Bonus Targets

On or before March 31, 2016, each participant will be assigned a target bonus level defined as a percentage of base salary earned during the Performance Period.  This bonus target is based on competitive market practices, as well as the employee’s ability to impact long-term Company performance.  Market practices will be determined using data from either general industry, the marine transportation industry, or the diesel engine services industry, depending upon the individual position being considered.

Aggregate Payment Amount

An interim incentive payment amount will be determined as of December 31, 2016 for each participant in the Plan based on the target incentive level for such participant and the calculation formulas described in the Plan under the headings Performance Measures, Business Group Designations and Weightings, and Performance Standards for Interim Incentive Payment Calculations.  The Aggregate Payment Amount shall equal the sum of all of such interim incentive payment amounts.

The Company will be obligated to pay out the full Aggregate Payment Amount to eligible participants, subject to the discretion of the Compensation Committee, with respect to the allocation of the Aggregate Payment Amount among individual participants.  Therefore, the Company’s obligation to pay out the Aggregate Payment Amount becomes fixed on the last day of the Performance Period.

The Compensation Committee may determine the amount of the bonus paid to any participant based on the performance measures described in the Plan or any other criteria deemed appropriate in its discretion, provided that in no event will the aggregate incentive payments made pursuant to the Plan exceed the Aggregate Payment Amount.

4

Section 162(m) Performance Goal and Maximum Awards

The performance goal (the “Performance Goal”) that must be attained in order for any Plan participant to receive a bonus under the Plan is the achievement by the Company of net earnings attributable to Kirby for 2016 (as shown in Kirby’s audited Consolidated Statements of Earnings for 2016) greater than $1,000,000.  If the Company achieves the Performance Goal, the maximum bonus that any participant may receive under the Plan will be equal to 200% of the individual bonus target established for such participant (for each participant, the “Maximum Award”).  The Compensation Committee in its discretion may reduce the bonus paid to any participant to an amount less than the Maximum Award.

Performance Measures

In addition to the Performance Goal, performance measures used under the Plan are:

· EBITDA

· Return on Total Capital

· Earnings per share

Annual performance targets will be established for each measure based on Kirby’s projected budget and each of the performance measures will have equal weight in calculating the interim incentive payment amount for each participant.

Measure2	Weight
EBITDA
(Earnings before Interest, Taxes, Depreciation and Amortization)	33.33%
Return on Total Capital
(Earnings before interest and taxes divided by average beginning and ending stockholders' equity plus long-term debt)	33.33%
Earnings per Share	33.33%
	100%

²United Holdings measured on EBITDA only.

Business Group Designations and Weightings

The following business groups are designated for purposes of the Plan:

· Kirby Inland Marine

· Kirby Engine Systems

· United Holdings

· Kirby Offshore Marine

Note: Kirby Ocean Transport Company and Osprey Line, LLC are considered part of the Kirby Inland Marine business group for purposes of the Plan.

5

In calculating actual versus target performance against the performance measures, the recommended award for Business Group employees will be primarily based on Business Group performance with a defined portion based on Company performance.  The award for Corporate employees will be based on total Kirby performance.  Specific weightings are defined in the following table:

Calculation of Incentive Payments
	Incentive Bonus Calculation
	Kirby (Company)	Business Group(s)
Eligible Corporate Employees	100%	0%
Business Group Presidents	50%	50%
(KMTG President 50% company, 35% KIM 15%KOM)
Officers with primary responsibilities for KIM and partial KOM (5)	30%	70%
(30% corporate, 50% KIM, 20% KOM)
Officers with primary responsibilities for KOM and partial KIM (1)	30%	70%
(30% corporate, 50% KOM, 20% KIM)
Other Business Group Employees	30%	70%

Performance Standards for Incentive Payment Calculations

Performance Level	Definition	Relationship to Budget*	% of Target Used for Calculation
Below Threshold	Performance did not meet minimum metric	less than 80% of Budget	0%
Threshold	Minimal acceptable performance for payout	80% of Budget	50%
Target	Expected performance at stretch level	100% of Budget	100%
Maximum	Outstanding performance	120% of Budget	200%

^*budget and target are measured on an incremental basis (example: 90% of budget results in 75% of target used for calculation)

· As shown in the tables, actual performance against each performance measure results in a corresponding percentage of target amount.

· The target amount determined for each performance measure is then multiplied by the weight for the performance measure (33.33%) and the results are added together to produce a total corporate or business payout percentage of the target incentive that is applied to each individual participant.

6

· The Compensation Committee shall in its discretion allocate the Aggregate Payment Amount among eligible participants.  In allocating the Aggregate Payment Amount, the Compensation Committee may consider, but shall not be bound by, the interim incentive payment calculation for each participant.

· The Compensation Committee has discretion to modify the performance measures or adjust the calculation of the interim incentive amounts to adjust for acquisitions, divestures, and other material business events.

· Notwithstanding the foregoing or any provision of the Plan to the contrary, no participant who is a covered employee as defined in the Section 162(m) of the Internal Revenue Code of 1986, as amended (a "Covered Employee”), may receive an amount in excess of the participant’s Maximum Award and the aggregate amount of incentive payments made to participants in the Plan must equal the Aggregate Payment Amount.

7

Administration

Award Payout

A participant’s final bonus payment is paid out in cash within 90 days following the end of the Company’s fiscal year, based on audited financial statements of the Company.  No payment shall be made to a participant who is a Covered Employee until the Compensation Committee certifies that the Performance Goal and other material terms of the Plan resulting in such payment have been achieved.

Eligibility Limitation

Participants must be employed by the Company on the last day of the Performance Period and on the date bonuses are actually paid in order to receive a bonus, unless otherwise provided for in the Plan.

Special Circumstances

The Compensation Committee will have the sole authority to resolve disputes related to Plan administration.  Decisions made by the Compensation Committee will be final and binding on all participants.  The Compensation Committee has the sole discretion to determine the bonuses for newly hired, terminated, transferred and promoted employees, but will generally award bonuses based on the following provisions.

New Employees

New employees hired after the beginning of a Performance Period who are selected for participation in the Plan, will receive prorated bonuses for the current Performance Period, subject to the Termination of Employment restrictions.

Termination of Employment

If employment terminates prior to the last day of the Performance Period or prior to the date bonuses are actually paid for the Performance Period, for any reason other than death, normal retirement, or disability, the participant will be ineligible to receive a bonus.

If employment terminates before the end of the full Performance Period or before the date bonuses are actually paid for the Performance Period as a result of death, normal retirement, or disability, the participant (or the participant’s heirs) will be entitled to receive a prorated bonus at the end of the Performance Period based upon actual performance and base wages earned while employed during the Performance Period.

Transfer

A participant who is transferred between business units of the Company will be eligible to receive a weighted bonus based upon the time spent at each of the units³.

Promotions

A participant who is promoted or reassigned during any Performance Period and whose bonus target is subsequently increased or decreased will be eligible to receive a weighted bonus, based on the service before and after the promotion or reassignment.

8

Compensation Committee

The Compensation Committee has the responsibility for governance and administration of the Plan.  In fulfilling its duties the Compensation Committee will be responsible for interpreting the Plan and will rely on these guidelines in making all determinations necessary.

In administering the Plan the Compensation Committee will, on an annual basis:

· Approve the designation of Business Groups within the Company

· Approve the Performance Goal

· Approve the performance measures and the Threshold, Target and Maximum budget performance levels for all participants for purposes of calculating interim incentive payments

· Approve linkage for participants to Company and Business Group performance

· Approve the individual bonus targets for all participants whose salaries are at or above $100,000

· Determine at its discretion the final incentive payments for participants

· Approve the Aggregate Payment Amount to be paid to participants in the Plan

· Certify whether the Performance Goal and other material terms that result in payments under the Plan have been satisfied prior to payment of an award to a Covered Employee.

The Compensation Committee may deviate from the guidelines for the Plan, but in no event will a bonus paid pursuant to the Plan exceed the Maximum Award for any Covered Employee.  The Compensation Committee may decrease the bonus to be paid to any participant below the Maximum Award based on such objective or subjective criteria as the Compensation Committee deems appropriate.

The total amount of the bonuses paid to participants pursuant to the Plan may not exceed the Aggregate Payment Amount.

The performance objectives of Covered Employees may only be adjusted as permitted under Section 162(m) or the regulations thereunder.

³Company and Business Group performance factors are calculated using performance for the entire Performance Period.

9

Chief Executive Officer (CEO)

The CEO has primary responsibility for recommending Plan guidelines to the Committee and for delegating administrative duties associated with the plan.  The Compensation Committee may delegate additional administrative duties to the CEO or any Company officer.  The CEO may make recommendations subject to Compensation Committee approval, with respect to the incentive payment to any participant.

Chief Financial Officer (CFO)

The CFO is responsible for calculating performance under the Plan and recommending adjustments to the performance objectives.  The CFO will:

· Provide annual reports to the Compensation Committee and the CEO on each Business Group’s performance at the end of the fiscal year

· Maintain a financial information system that reports results on an estimated quarterly and annual basis

· Coordinate with the Company’s auditors to properly recognize any accounting expense associated with incentive payments under the Plan

· Provide the VP of Human Resources with the performance results of each Business Group as well as overall Company performance

· Calculate new Threshold, Target and Maximum performance objectives as required by the Plan

VP of Human Resources

The VP of HR has responsibility for administration of the Plan and will:

· Develop and recommend Target Award Guidelines and eligible participants for each Performance Period to the CEO for approval

· Coordinate communications with participants, including materials to facilitate understanding the Plan’s objectives and goals

· Calculate participants’ interim incentive amounts, using the performance factors provided by the CFO

· Process paperwork approving individual incentive payments

Business Group Presidents and Vice Presidents will:

· Recommend participants in the Plan

· Coordinate with the CFO to determine any significant changes in business conditions for purposes of reviewing the Threshold, Target and Maximum performance objectives

· Assure that participants are informed of the actual incentive payment to be made for the Performance Period

10

EX-21.1

EXHIBIT 21.1

KIRBY CORPORATION

CONSOLIDATED SUBSIDIARIES OF THE REGISTRANT

	Domicile of Incorporation
KIRBY CORPORATION – PARENT AND REGISTRANT	Nevada
SUBSIDIARIES OF THE PARENT AND REGISTRANT
Kirby Corporate Services, LLC	Delaware
KIM Holdings, Inc.	Delaware
Kirby Terminals, Inc.	Texas
Sabine Transportation Company	Delaware
AFRAM Carriers, Inc.	Delaware
Kirby Engine Systems, Inc.	Delaware
Kirby Tankships, Inc.	Delaware
Kirby Ocean Transport Company	Delaware
Kirby Offshore Marine, LLC	Delaware
K Equipment, LLC	Texas
CONTROLLED CORPORATIONS
KIM Partners, LLC (Subsidiary of KIM Holdings, Inc.)	Louisiana
Kirby Inland Marine, LP (KIM Holdings, Inc. 1% General Partner, KIM Partners, LLC 99% Limited Partner)	Delaware
Greens Bayou Fleeting, LLC (51%)	Texas
Dixie Carriers, Inc. (subsidiary of Kirby Inland Marine, LP)	Texas
Marine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc.)	Louisiana
Engine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc.)	Delaware
Osprey Line, L.L.C. (66 2/3%)	Texas
United Holdings LLC (subsidiary of Kirby Engine Systems, Inc.)	Delaware
United Engines LLC (subsidiary of United Holdings LLC)	Colorado
UE Powertrain GP LLC (subsidiary of United Holdings LLC)	Texas
UE Manufacturing LLC (subsidiary of United Holdings LLC)	Colorado
Compression Systems LLC (subsidiary of United Holdings LLC)	Colorado
Thermo King of Houston, LP (subsidiary of United Holdings LLC)	Texas
San Antonio Thermo King, Inc. (subsidiary of Thermo King of Houston, LP)	Texas
UE Powertrain LP (subsidiary of United Holdings LLC and UE Powertrain GP LLC)	Texas
Kirby Offshore Marine Operating, LLC (subsidiary of Kirby Offshore Marine, LLC)	Delaware
Kirby Offshore Marine Hawaii, LLC (subsidiary of Kirby Offshore Marine Operating, LLC)	Delaware
Kirby Offshore Marine Pacific, LLC (subsidiary of Kirby Offshore Marine Operating, LLC)	Delaware
Kirby Offshore Marine, Inc. (subsidiary of Kirby Offshore Marine Operating, LLC)	Delaware
Inversiones Kara Sea SRL (subsidiary of Kirby Offshore Marine Operating, LLC)	Venezuela
K-Sea Canada Holdings, Inc. (subsidiary of Kirby Offshore Marine, Inc.)	Delaware
K-Sea Canada Corp. (subsidiary of K-Sea Canada Holdings, Inc.)	Nova Scotia
Penn Maritime Inc. (subsidiary of Kirby Offshore Marine, LLC)	Delaware
Hollywood Marine, No. 3 Ltd (subsidiary of Kirby Inland Marine, LP)	Texas
Hollywood Chem 107, Ltd (90.8%)	Texas
Hollywood Chem 108, Ltd (93.1%)	Texas
Hollywood Marine 1004-7, Ltd (90.8%)	Texas
Hollywood Marine 1008-14, Ltd (93.1%)	Texas
Hollywood Marine 3009-14, Ltd (93.1%)	Texas
Hollywood/Texas Olefins, Ltd (50%)	Texas

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Kirby Corporation:

We consent to the incorporation by reference in the registration statements (No. 333-57625, No. 333-72592, No. 333-129290, No. 333-129333, No. 333-152565, No. 333-152566, No. 333-184598 and No. 333-184599) on Form S-8 of Kirby Corporation and consolidated subsidiaries of our reports dated February 22, 2016, with respect to the consolidated balance sheets of Kirby Corporation and consolidated subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of earnings, comprehensive income, cash flows and stockholders’ equity for each of the years in the three-year period ended December 31, 2015, and the effectiveness of internal control over financial reporting as of December 31, 2015, which reports appear in the December 31, 2015 annual report on Form 10-K of Kirby Corporation and consolidated subsidiaries.

	KPMG LLP
Houston, Texas
February 22, 2016

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

In connection with the filing of the report on Form 10-K for the year ended December 31, 2015 by Kirby Corporation, David W. Grzebinski certifies that:

1. I have reviewed this report on Form 10-K of Kirby Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ DAVID W. GRZEBINSKI
	David W. Grzebinski
	President and Chief Executive Officer
Dated: February 22, 2016

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

In connection with the filing of the report on Form 10-K for the year ended December 31, 2015 by Kirby Corporation, C. Andrew Smith certifies that:

1. I have reviewed this report on Form 10-K of Kirby Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ C. ANDREW SMITH
	C. Andrew Smith
	Executive Vice President and Chief Financial Officer
Dated: February 22, 2016

EX-32

EXHIBIT 32

Certification Pursuant to Section 18 U.S.C. Section 1350

(As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the filing of the Annual Report on Form 10-K for the year ended December 31, 2015 (the “Report”) by Kirby Corporation (the “Company”), each of the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ DAVID W. GRZEBINSKI
	David W. Grzebinski
	President and Chief Executive Officer
	/s/ C. ANDREW SMITH
	C. Andrew Smith
	Executive Vice President and
	Chief Financial Officer
Dated: February 22, 2016

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 19, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	KIRBY CORP
Entity Central Index Key	0000056047
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,806,000
Entity Public Float			$ 4,137,884,000
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 5,885	$ 24,299
Accounts receivable:
Trade - less allowance for doubtful accounts of $9,374 ($8,887 in 2014)	290,931	417,325
Other	102,443	115,598
Inventories - at lower of average cost or market	184,511	192,354
Prepaid expenses and other current assets	45,283	43,016
Deferred income taxes	11,723	10,562
Total current assets	640,776	803,154
Property and equipment:
Marine transportation equipment	3,806,850	3,495,705
Land, buildings and equipment	252,913	221,693
Property and equipment	4,059,763	3,717,398
Accumulated depreciation	1,280,783	1,127,900
Property and equipment - net	2,778,980	2,589,498
Investment in affiliates	2,090	2,539
Goodwill	586,718	591,405
Other assets	147,702	155,313
Total assets	4,156,266	4,141,909
Current liabilities:
Current portion of long-term debt	0	116,700
Income taxes payable	3,564	3,470
Accounts payable	132,799	222,020
Accrued liabilities:
Interest	5,412	5,610
Insurance premiums and claims	111,705	121,989
Employee compensation	37,243	42,056
Taxes - other than on income	13,525	13,694
Other	16,369	17,684
Deferred revenues	41,300	50,804
Total current liabilities	361,917	594,027
Long-term debt - less current portion	778,834	600,000
Deferred income taxes	669,808	595,769
Other long-term liabilities	66,511	87,200
Total long-term liabilities	$ 1,515,153	$ 1,282,969
Contingencies and commitments
Kirby stockholders' equity:
Common stock, $.10 par value per share. Authorized 120,000,000 shares, issued 59,776,000 in 2015 and 2014	$ 5,978	$ 5,978
Additional paid-in capital	434,783	428,475
Accumulated other comprehensive income - net	(44,686)	(61,037)
Retained earnings	2,200,830	1,974,146
Treasury stock - at cost, 6,056,000 shares in 2015 and 2,906,000 in 2014	(328,094)	(93,526)
Total Kirby stockholders' equity	2,268,811	2,254,036
Noncontrolling interests	10,385	10,877
Total equity	2,279,196	2,264,913
Total liabilities and equity	$ 4,156,266	$ 4,141,909

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Trade, allowance for doubtful accounts	$ 9,374	$ 8,887
Equity:
Common stock, par value per share (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	59,776,000	59,776,000
Treasury stock, shares (in shares)	6,056,000	2,906,000

XML

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Marine transportation	$ 1,663,090	$ 1,770,684	$ 1,713,167
Diesel engine services	484,442	795,634	529,028
Total revenues	2,147,532	2,566,318	2,242,195
Costs and expenses:
Costs of sales and operating expenses	1,362,366	1,694,882	1,448,805
Selling, general and administrative	193,237	210,416	177,766
Taxes, other than on income	20,699	16,677	15,893
Depreciation and amortization	192,240	169,312	164,437
Gain on disposition of assets	(1,672)	(781)	(888)
Total costs and expenses	1,766,870	2,090,506	1,806,013
Operating income	380,662	475,812	436,182
Equity in earnings of affiliates	451	384	348
Other income (expense)	(663)	(345)	20
Interest expense	(18,738)	(21,461)	(27,872)
Earnings before taxes on income	361,712	454,390	408,678
Provision for taxes on income	(133,742)	(169,782)	(152,379)
Net earnings	227,970	284,608	256,299
Less: Net earnings attributable to noncontrolling interests	(1,286)	(2,602)	(3,238)
Net earnings attributable to Kirby	$ 226,684	$ 282,006	$ 253,061
Net earnings per share attributable to Kirby common stockholders:
Basic (in dollars per share)	$ 4.12	$ 4.95	$ 4.46
Diluted (in dollars per share)	$ 4.11	$ 4.93	$ 4.44

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net earnings		$ 227,970	$ 284,608	$ 256,299
Other comprehensive income (loss), net of taxes:
Pension and postretirement benefits		16,322	(44,294)	43,274
Foreign currency translation adjustments		29	(35)	108
Change in fair value of derivative instruments		0	85	952
Total other comprehensive income (loss), net of taxes	[1]	16,351	(44,244)	44,334
Total comprehensive income, net of taxes		244,321	240,364	300,633
Net earnings attributable to noncontrolling interests		(1,286)	(2,602)	(3,238)
Comprehensive income attributable to Kirby		$ 243,035	$ 237,762	$ 297,395

[1] Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net earnings	$ 227,970	$ 284,608	$ 256,299
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization	192,240	169,312	164,437
Provision for doubtful accounts	1,426	3,577	1,260
Provision for deferred income taxes	62,755	77,976	103,056
Gain on disposition of assets	(1,672)	(781)	(888)
Equity in earnings of affiliates, net of distributions and contributions	449	(384)	(348)
Amortization of unearned share-based compensation	11,104	11,591	11,621
Amortization of major maintenance costs	22,126	16,409	9,029
Increase (decrease) in cash flows resulting from changes in:
Accounts receivable	129,908	(176,544)	2,235
Inventory	(7,320)	(56,468)	43,275
Other assets	(14,174)	(11,783)	(47,526)
Income taxes payable	477	(4,544)	313
Accounts payable	(81,808)	44,645	23,088
Accrued and other liabilities	(22,176)	81,295	35,181
Net cash provided by operating activities	521,305	438,909	601,032
Cash flows from investing activities:
Capital expenditures	(345,475)	(355,144)	(253,227)
Acquisitions of businesses and marine equipment, net of cash acquired	(41,250)	(31,800)	(3,643)
Proceeds from disposition of assets	24,429	10,393	33,982
Net cash used in investing activities	(362,296)	(376,551)	(222,888)
Cash flows from financing activities:
Borrowings (payments) on bank credit facilities, net	160,784	75,550	(150,960)
Borrowings on long-term debt	0	0	225,000
Payments on long-term debt	(100,000)	(108,000)	(460,000)
Return of investment to noncontrolling interests	(1,778)	(3,192)	(3,857)
Proceeds from exercise of stock options	3,712	7,519	6,635
Purchase of treasury stock	(241,105)	(15,321)	0
Payment of contingent liability	0	(4,756)	(5,000)
Excess tax benefit from equity compensation plans	964	6,119	3,001
Net cash used in financing activities	(177,423)	(42,081)	(385,181)
Increase (decrease) in cash and cash equivalents	(18,414)	20,277	(7,037)
Cash and cash equivalents, beginning of year	24,299	4,022	11,059
Cash and cash equivalents, end of year	5,885	24,299	4,022
Supplemental disclosures of cash flow information:
Interest paid	20,586	19,622	21,393
Income taxes paid	69,584	90,460	46,136
Capital expenditures included in accounts payable	$ 2,206	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interests [Member]	Total
Balance at beginning of year at Dec. 31, 2012	$ 5,978,000	$ 397,785,000	$ (61,127,000)	$ 1,439,079,000	$ (86,747,000)	$ 12,086,000
Excess of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued		8,276,000
Tax benefit realized from equity compensation plans		3,001,000					$ 3,001,000
Issuance of restricted stock, net of forfeitures		(10,068,000)
Amortization of unearned compensation		11,621,000
Net earnings attributable to Kirby for the year				253,061,000			253,061,000
Purchase of treasury stock (3,316,000 in 2015 and 187,000 in 2014)					0
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (166,000 in 2015, 211,000 in 2014 and 261,000 in 2013)					5,493,000
Net earnings attributable to noncontrolling interests						3,238,000	(3,238,000)
Return of investment to noncontrolling interests						(3,857,000)	3,857,000
Other comprehensive income (loss), net of taxes			44,334,000				44,334,000	[1]
Balance at end of year at Dec. 31, 2013	5,978,000	410,615,000	(16,793,000)	1,692,140,000	(81,254,000)	11,467,000
Excess of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued		8,345,000
Tax benefit realized from equity compensation plans		6,119,000					6,119,000
Issuance of restricted stock, net of forfeitures		(8,195,000)
Amortization of unearned compensation		11,591,000
Net earnings attributable to Kirby for the year				282,006,000			282,006,000
Purchase of treasury stock (3,316,000 in 2015 and 187,000 in 2014)					(15,321,000)
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (166,000 in 2015, 211,000 in 2014 and 261,000 in 2013)					3,049,000
Net earnings attributable to noncontrolling interests						2,602,000	(2,602,000)
Return of investment to noncontrolling interests						(3,192,000)	3,192,000
Other comprehensive income (loss), net of taxes			(44,244,000)				(44,244,000)	[1]
Balance at end of year at Dec. 31, 2014	5,978,000	428,475,000	(61,037,000)	1,974,146,000	(93,526,000)	10,877,000	2,264,913,000
Excess of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued		3,530,000
Tax benefit realized from equity compensation plans		964,000					964,000
Issuance of restricted stock, net of forfeitures		(9,290,000)
Amortization of unearned compensation		11,104,000
Net earnings attributable to Kirby for the year				226,684,000			226,684,000
Purchase of treasury stock (3,316,000 in 2015 and 187,000 in 2014)					(241,105,000)
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (166,000 in 2015, 211,000 in 2014 and 261,000 in 2013)					6,537,000
Net earnings attributable to noncontrolling interests						1,286,000	(1,286,000)
Return of investment to noncontrolling interests						(1,778,000)	1,778,000
Other comprehensive income (loss), net of taxes			16,351,000				16,351,000	[1]
Balance at end of year at Dec. 31, 2015	$ 5,978,000	$ 434,783,000	$ (44,686,000)	$ 2,200,830,000	$ (328,094,000)	$ 10,385,000	$ 2,279,196,000

[1] Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract]
Purchase of treasury stock (in shares)	3,316,000	187,000
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock	$ 166,000	$ 211,000	$ 261,000

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of Kirby Corporation and all majority-owned subsidiaries (“the Company”). One affiliated limited partnership, in which the Company owns a 50% interest, is the general partner and has effective control and whose activities are an integral part of the operations of the Company, is consolidated. All other investments in which the Company owns 20% to 50% and exercises significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to reflect the current presentation of financial information.

Accounting Policies

Cash Equivalents. Cash equivalents consist of all short-term, highly liquid investments with maturities of three months or less at date of purchase.

Accounts Receivable. In the normal course of business, the Company extends credit to its customers. The Company regularly reviews the accounts and makes adequate provisions for probable uncollectible balances. It is the Company’s opinion that the accounts have no impairment, other than that for which provisions have been made. Included in accounts receivable as of December 31, 2015 and 2014 were $90,166,000 and $143,615,000, respectively, of accruals for revenues earned which have not been invoiced as of the end of each year.

The Company’s marine transportation and diesel engine services operations are subject to hazards associated with such businesses. The Company maintains insurance coverage against these hazards with insurance companies. Included in accounts receivable as of December 31, 2015 and 2014 were $77,684,000 and $92,379,000, respectively, of receivables from insurance companies to cover claims in excess of the Company’s deductible.

Concentrations of Credit Risk. Financial instruments which potentially subject the Company to concentrations of credit risk are primarily trade accounts receivables. The Company’s marine transportation customers include the major oil refining and petrochemical companies. The diesel engine services customers are oil and gas service companies, marine transportation companies, commercial fishing companies, power generation companies, and the United States government. The Company regularly reviews its accounts and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information. Estimates of uncollectible amounts are revised each period, and changes are recorded in the period they become known.

Fair Value of Financial Instruments. Cash, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company’s debt instruments is more fully described in Note 4, Long-Term Debt.

Property, Maintenance and Repairs. Property is recorded at cost. Improvements and betterments are capitalized as incurred. Depreciation is recorded on the straight-line method over the estimated useful lives of the individual assets as follows: marine transportation equipment, 5-40 years; buildings, 10-40 years; other equipment, 2-10 years; and leasehold improvements, term of lease. When property items are retired, sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts with any gain or loss on the disposition included in the statement of earnings. Maintenance and repairs on vessels built for use on the inland waterways are charged to operating expense as incurred and includes the costs incurred in United States Coast Guard (“USCG”) inspections unless the shipyard extends the life or improves the operating capacity of the vessel which results in the costs being capitalized.

Drydocking on Ocean-Going Vessels. The Company’s ocean-going vessels are subject to regulatory drydocking requirements after certain periods of time to be inspected, have planned major maintenance performed and be recertified by the American Bureau of Shipping (“ABS”). These recertifications generally occur twice in a five year period. The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed. Drydocking expenditures that extend the life or improve the operating capability of the vessel result in the costs being capitalized. The Company recognized amortization of  major maintenance costs of $22,126,000, $16,409,000 and $9,029,000 for the years ended December 31, 2015, 2014 and 2013, respectively, in costs of sales and operating expenses. Routine repairs and maintenance on ocean-going vessels are expensed as incurred. Interest is capitalized on the construction of new ocean-going vessels. Interest expense excludes capitalized interest of $3,026,000 and $639,000 for the years ending December 31, 2015 and 2014, respectively. No interest was capitalized for the year ending December 31, 2013.

Environmental Liabilities. The Company expenses costs related to environmental events as they are incurred or when a loss is considered probable and estimable.

Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill. The Company conducted its annual goodwill impairment test at November 30, 2015 and 2014. For 2015 and 2014, the Company noted no impairment of goodwill. The Company will continue to conduct goodwill impairment tests as of November 30 of subsequent years, or whenever events or circumstances indicate that interim impairment testing is necessary. The amount of goodwill impairment, if any, is typically measured based on projected discounted future operating cash flows using an appropriate discount rate. The gross carrying value of goodwill at December 31, 2015 and 2014 was $604,185,000 and $608,872,000, respectively, and accumulated amortization at December 31, 2015 and 2014 was $15,566,000. Accumulated impairment losses were $1,901,000 at December 31, 2015 and 2014.

Net goodwill for the marine transportation segment was $381,243,000 at December 31, 2015 and 2014. Net goodwill for the diesel engine services segment was $205,475,000 and $210,162,000 at December 31, 2015 and 2014, respectively. The decrease in net goodwill for the diesel engine services segment was due to a sale of a business during 2015 and the reclassification of certain assets as held for sale as of December 31, 2015.

Revenue Recognition. The majority of marine transportation revenue is derived from term contracts, ranging from one to three years, some of which have renewal options, and the remainder is from spot market movements. The majority of the term contracts are for terms of one year. The Company is a provider of marine transportation services for its customers and, in almost all cases, does not assume ownership of the products it transports. A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate or at a daily rate. The rate may or may not escalate during the term of the contract, however, the base rate generally remains constant and contracts often include escalation provisions to recover changes in specific costs such as fuel. A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate, including fuel, and are subject to market volatility. The Company uses a voyage accounting method of revenue recognition for its marine transportation revenues which allocates voyage revenue based on the percent of the voyage completed during the period. There is no difference in the recognition of revenue between a term contract and a spot contract.

Diesel engine service products and services are generally sold based upon purchase orders or preferential service agreements with the customer that include fixed or determinable prices and that do not include right of return or significant post-delivery performance obligations. Diesel engine parts sales are recognized when title passes upon shipment to customers or when customer-specific acceptance requirements are met. Service revenue is recognized as the service is provided. Diesel manufacturing and assembly projects revenue is reported on the percentage of completion method of accounting using measurements of progress towards completion appropriate for the work performed.

Stock-Based Compensation. The Company has share-based compensation plans covering selected officers and other key employees as well as the Company’s Board of Directors. Stock-based grants made under the Company’s stock plans are recorded at fair value on the date of the grant and the cost is recognized ratably over the vesting period of the stock option or restricted stock. Stock option grants are valued at the date of grant as calculated under the Black-Scholes option pricing model. The Company’s stock-based compensation plans are more fully described in Note 7, Stock Award Plans.

Taxes on Income. The Company follows the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Accrued Insurance. Accrued insurance liabilities include estimates based on individual incurred claims outstanding and an estimated amount for losses incurred but not reported (“IBNR”) or fully developed based on past experience. Insurance premiums, IBNR losses and incurred claim losses, in excess of the Company’s deductible for 2015, 2014 and 2013 were $23,737,000, $25,416,000 and $22,971,000, respectively.

Noncontrolling Interests. The Company has a majority interest in and is the general partner in several affiliated entities. In situations where losses applicable to the minority interest in the affiliated entities exceed the limited partners’ equity capital, such excess and any further loss attributable to the minority interest is charged against the Company’s interest in the affiliated entities. If future earnings materialize in the respective affiliated entities, the Company’s interest would be credited to the extent of any losses previously absorbed.

Treasury Stock. The Company follows the average cost method of accounting for treasury stock transactions.

Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. The Company reviews long-lived assets and certain identifiable intangibles for impairment by vessel class whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Recoverability on marine transportation assets is assessed based on vessel classes, not on individual assets, because identifiable cash flows for individual marine transportation assets are not available. Projecting customer contract volumes allows estimation of future cash flows by projecting pricing and utilization by vessel class but it is not practical to project which individual marine transportation asset will be utilized for any given contract. Because customers do not specify which particular vessel is used, prices are quoted based on vessel classes not individual assets. Nominations of vessels for specific jobs are determined on a day by day basis and are a function of the equipment class required and the geographic position of vessels within that class at that particular time as vessels within a class are interchangeable and provide the same service. The Company’s vessels are mobile assets and equipped to operate in geographic regions throughout the United States and the Company has in the past and expects to continue to move vessels from one region to another when it is necessary due to changing markets and it is economical to do so. Barge vessel classes are based on similar capacities, hull type, and type of product and towing vessels are based on similar hull type and horsepower. Recoverability of the vessel classes is measured by a comparison of the carrying amount of the assets to future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) which requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet.  The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance.  ASU 2015-17 is effective for annual and interim periods beginning after December 15, 2016 but early application is permitted and the guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.  The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard.

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”) which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”) or the retail inventory method. ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 requires retrospective application and is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company will adopt the standard in the first quarter of 2016 and does not expect the effect of ASU 2015-03 to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 on its ongoing financial reporting.

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Inventories

12 Months Ended

Dec. 31, 2015

Inventories [Abstract]

Inventories

(2) Inventories

The following table presents the details of inventories as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015		December 31, 2014
Finished goods	$	163,501	$	179,760
Work in process		21,010		12,594
	$	184,511	$	192,354

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Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Measurements [Abstract]

Fair Value Measurements

(3) Fair Value Measurements

The accounting guidance for using fair value to measure certain assets and liabilities establishes a three tier value hierarchy, which prioritizes the inputs to valuation techniques used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little, if any, market data exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company’s debt instruments is described in Note 4, Long-Term Debt.

Certain assets are measured at fair value on a nonrecurring basis.  These assets are adjusted to fair value when there is evidence of impairment. During the years ended December 31, 2015 and 2014, there was no indication that the Company’s long-lived assets were impaired, and accordingly, measurement at fair value was not required.

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Long-Term Debt

12 Months Ended

Dec. 31, 2015

Long-Term Debt [Abstract]

Long-Term Debt

(4) Long-Term Debt

Long-term debt at December 31, 2015 and 2014 consisted of the following (in thousands):

	2015		2014
Long-term debt, including current portion:
$550,000,000 revolving credit facility due April 30, 2020	$	278,834	$	—
$325,000,000 revolving credit facility due November 9, 2015		—		116,700
$150,000,000 senior notes Series A due February 27, 2020		150,000		150,000
$350,000,000 senior notes Series B due February 27, 2023		350,000		350,000
$10,000,000 credit line due June 30, 2017		—		—
$540,000,000 term loan due July 1, 2016		—		100,000
	$	778,834	$	716,700

The aggregate payments due on the long-term debt in each of the next five years were as follows (in thousands):

2016	$	—
2017		—
2018		—
2019		—
2020		428,834
Thereafter		350,000
	$	778,834

On April 30, 2015, the Company entered into a $550,000,000 unsecured revolving credit facility (“Revolving Credit Facility”) with a syndicate of banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank, with a maturity date of April 30, 2020. In addition, the credit agreement allows for a $300,000,000 increase in the aggregate commitments of the banks in the form of revolving credit loans or term loans, subject to the consent of each bank that elects to participate in the increased commitment. The variable interest rate spread varies with the Company’s senior debt rating and is currently 1.00% over the London Interbank Offered Rate (“LIBOR”) or equal to an alternate base rate calculated with reference to the agent bank’s prime rate, among other factors (“Alternate Base Rate”). The commitment fee is currently 0.10%. The Revolving Credit Facility contains certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the Revolving Credit Facility contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business. Borrowings under the Revolving Credit Facility may be used for general corporate purposes, the purchase of existing or new equipment, the purchase of the Company’s common stock, or for business acquisitions. On April 30, 2015, proceeds from the Revolving Credit Facility were used to refinance the outstanding balance of the Company’s previous $325,000,000 unsecured revolving credit facility and the term loan described below. As of December 31, 2015, the Company was in compliance with all Revolving Credit Facility covenants and had $278,834,000 of debt outstanding under the Revolving Credit Facility. The average borrowing under the Revolving Credit Facility during 2015 was $293,451,000, computing by averaging the daily balance, and the weighted average interest rate was 1.3%, computed by dividing the interest expense under the Revolving Credit Facility by the average Revolving Credit Facility borrowing. The Revolving Credit Facility includes a $25,000,000 commitment which may be used for standby letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $5,047,000 as of December 31, 2015.

The Company has $500,000,000 of unsecured senior notes (“Senior Notes Series A” and “Senior Notes Series B”) with a group of institutional investors, consisting of $150,000,000 of 2.72% Senior Notes Series A due February 27, 2020 and $350,000,000 of 3.29% Senior Notes Series B due February 27, 2023. No principal payments are required until maturity. The Senior Notes Series A and Series B contain certain covenants on the part of the Company, including an interest coverage covenant, a debt-to-capitalization covenant and covenants relating to liens, asset sales and mergers, among others. The Senior Notes Series A and Series B also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. As of December 31, 2015, the Company was in compliance with all Senior Notes Series A and Series B covenants and had $150,000,000 of Senior Notes Series A outstanding and $350,000,000 of Senior Notes Series B outstanding.

The Company has a $10,000,000 line of credit (“Credit Line”) with Bank of America, N.A. (“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2017. The Credit Line allows the Company to borrow at an interest rate agreed to by Bank of America and the Company at the time each borrowing is made or continued. The Company had no borrowings outstanding under the Credit Line as December 31, 2015. Outstanding letters of credit under the Credit Line were $931,000 as of December 31, 2015.

The Company had a term loan with a group of commercial banks, with Wells Fargo Bank, National Association as the administrative agent bank, with a maturity date of July 1, 2016. On April 30, 2015, the $100,000,000 outstanding balance of the term loan was refinanced with proceeds from the Revolving Credit Facility. The term loan provided for a $540,000,000 five-year unsecured term loan facility with a variable interest rate based on LIBOR or the Alternate Base Rate. The interest rate spread varied with the Company’s senior debt rating and, for the year 2014 through April 29, 2015, was 1.5% over LIBOR or 0.5% over the Alternate Base Rate. The outstanding balance of the term loan was subject to quarterly amortization in increasing amounts and was prepayable, in whole or in part, without penalty. The term loan contained certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the term loan contained covenants that, subject to exceptions, restricted debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business.

The estimated fair value of total debt outstanding at December 31, 2015 and 2014 was $768,766,000 and $705,215,000, respectively, which differs from the carrying amount of $778,834,000 and $716,700,000, respectively, included in the consolidated financial statements. The fair value was determined using an income approach that relies on inputs such as yield curves.

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Taxes on Income

12 Months Ended

Dec. 31, 2015

Taxes on Income [Abstract]

Taxes on Income

(5) Taxes on Income

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Earnings before taxes on income — United States	$	361,712	$	454,390	$	408,678
Provision for taxes on income:
Federal:
Current	$	64,707	$	81,953	$	41,008
Deferred		59,582		72,920		97,586
State and local		9,453		14,909		13,785
	$	133,742	$	169,782	$	152,379

During the three years ended December 31, 2015, 2014 and 2013, tax benefits related to the exercise of stock options and the issuance of restricted stock that were allocated directly to additional paid-in capital were $964,000, $6,119,000 and $3,001,000, respectively.

The Company’s provision for taxes on income varied from the statutory federal income tax rate for the years ended December 31, 2015, 2014 and 2013 due to the following:

	2015			2014			2013
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		1.7			2.2			2.2
Other – net		.3			.2			.1
		37.0	%		37.4	%		37.3	%

The tax effects of temporary differences that give rise to significant portions of the current deferred tax assets and non-current deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Current deferred tax assets:
Compensated absences	$	829		$	854
Allowance for doubtful accounts		3,288			3,111
Insurance accruals		4,234			2,858
Other		3,372			3,739
	$	11,723		$	10,562
Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	2,501		$	2,795
Insurance accruals		3,410			3,325
Deferred compensation		10,534			10,157
Unrealized loss on defined benefit plans		25,245			34,501
Operating loss carryforwards		5,188			5,219
Other		20,702			20,687
Valuation allowances		(4,716	)		(4,704	)
		62,864			71,980
Deferred tax liabilities:
Property		(604,737	)		(547,388	)
Deferred state taxes		(53,542	)		(49,503	)
Pension benefits		(8,471	)		(11,198	)
Goodwill and other intangibles		(44,185	)		(37,936	)
Other		(21,737	)		(21,724	)
		(732,672	)		(667,749	)
	$	(669,808	)	$	(595,769	)

The Company has determined that it is more likely than not that all federal deferred tax assets at December 31, 2015 will be realized, including its operating loss carryforwards of $472,000 that expire in various amounts through 2030.

The valuation allowance for state deferred tax assets as of December 31, 2015 and 2014 was $4,716,000 and $4,704,000 respectively, related to the Company’s state net operating loss carryforwards based on the Company’s determination that it is not more likely than not that the deferred tax assets will be realized.   Expiration of these state net operating loss carryforwards vary by state through 2035 and none will expire in fiscal 2016.

The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state jurisdictions. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the 2012 through 2014 tax years. With few exceptions, the Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the 2009 through 2014 tax years.

As of December 31, 2015, the Company has provided a liability of $2,479,000 for unrecognized tax benefits related to various income tax issues which includes interest and penalties. The amount that would impact the Company’s effective tax rate, if recognized, is $1,678,000, with the difference between the total amount of unrecognized tax benefits and the amount that would impact the effective tax rate being primarily related to the federal tax benefit of state income tax items. It is not reasonably possible to determine if the liability for unrecognized tax benefits will significantly change prior to December 31, 2016 due to the uncertainty of possible examination results.

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013, is as follows (in thousands):

	2015			2014			2013
Balance at beginning of year	$	1,171		$	949		$	1,045
Additions based on tax positions related to the current year		339			470			239
Additions for tax positions of prior years		785			39			114
Reductions for tax positions of prior years		(337	)		(287	)		(413	)
Settlements		—			—			(36	)
Balance at end of year	$	1,958		$	1,171		$	949

The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes. The Company recognized net expense (credit) of $216,000, $40,000 and $(421,000) in interest and penalties for the years ended December 31, 2015, 2014 and 2013, respectively. The Company had $522,000, $306,000 and $266,000 of accrued liabilities for the payment of interest and penalties at December 31, 2015, 2014 and 2013, respectively.

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Leases

12 Months Ended

Dec. 31, 2015

Leases [Abstract]

Leases

(6) Leases

The Company and its subsidiaries currently lease various facilities and equipment under a number of cancelable and noncancelable operating leases. Lease agreements for barges have terms from one to 12 years expiring at various dates through 2020. Lease agreements for towing vessels chartered by the Company have terms from 30 days to five years expiring at various dates through 2019; however, approximately half of the towing vessel charter agreements are for terms of one year or less. Total rental expense for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

	2015		2014		2013
Rental expense:
Marine equipment — barges	$	14,092	$	19,780	$	20,841
Marine equipment — towing vessels		143,067		136,331		124,877
Other buildings and equipment		9,383		9,146		10,298
Rental expense	$	166,542	$	165,257	$	156,016

Future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2015 were as follows (in thousands):

	Land, Buildings		Marine Equipment
	And Equipment		Barges		Towing Vessels		Total
2016	$	7,654	$	11,751	$	100,124	$	119,529
2017		6,806		10,544		46,362		63,712
2018		6,166		8,843		20,732		35,741
2019		4,375		3,856		317		8,548
2020		3,570		2,239		—		5,809
Thereafter		13,519		—		—		13,519
	$	42,090	$	37,233	$	167,535	$	246,858

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Stock Award Plans

12 Months Ended

Dec. 31, 2015

Stock Award Plans [Abstract]

Stock Award Plans

(7) Stock Award Plans

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Compensation cost	$	11,104	$	11,591	$	11,621
Income tax benefit	$	4,120	$	4,358	$	4,370

The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options, restricted stock and performance awards. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At December 31, 2015, 2,329,238 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights.

The following is a summary of the stock option activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		351,173		$	45.54
Granted		111,527		$	70.94
Exercised		(83,096	)	$	34.51
Canceled or expired		—		$	—
Outstanding at December 31, 2013		379,604		$	55.42
Granted		75,204		$	98.91
Exercised		(119,276	)	$	42.07
Canceled or expired		(12,576	)	$	68.89
Outstanding at December 31, 2014		322,956		$	69.95
Granted		114,894		$	74.99
Exercised		—		$	—
Canceled or expired		(7,418	)	$	86.28
Outstanding at December 31, 2015		430,432		$	71.01

Under the employee plan, stock options exercisable were 239,518, 157,140 and 175,170 at December 31, 2015, 2014 and 2013, respectively.

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at December 31, 2015:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregated Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregated Intrinsic Value
$	31.35 – $36.35		16,910		1.1	$	32.82				16,910	$	32.82
$	46.74		56,629		2.1	$	46.74				56,629	$	46.74
$	65.28 – $74.99		283,963		4.6	$	70.98				141,669	$	67.90
$	93.64 – $96.85		35,763		5.1	$	94.27				11,921	$	94.27
$	101.46 – $114.11		37,167		5.2	$	103.22				12,389	$	103.22
$	31.35 – $114.11		430,432		4.2	$	71.01	$	668,000		239,518	$	63.56	$	668,000

The following is a summary of the restricted stock award activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		418,128		$	45.39
Granted		139,971		$	69.85
Vested		(149,162	)	$	44.30
Forfeited		(9,659	)	$	61.20
Nonvested balance at December 31, 2013		399,278		$	54.92
Granted		97,706		$	97.46
Vested		(141,870	)	$	45.64
Forfeited		(33,661	)	$	63.56
Nonvested balance at December 31, 2014		321,453		$	71.04
Granted		122,740		$	75.04
Vested		(113,958	)	$	60.73
Forfeited		(18,508	)	$	82.00
Nonvested balance at December 31, 2015		311,727		$	75.73

The Company has a stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for automatic grants of restricted stock to nonemployee directors after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are ten years.  The restricted stock issued after each annual meeting of stockholders vest six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At December 31, 2015, 539,531 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified independent directors.

The following is a summary of the stock option activity under the director plan described above for the years ended December 31, 2015, 2014, and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		345,938		$	45.84
Granted		54,958		$	75.17
Exercised		(80,574	)	$	46.75
Outstanding at December 31, 2013		320,322		$	50.64
Granted		42,000		$	99.52
Exercised		(63,988	)	$	39.08
Outstanding at December 31, 2014		298,334		$	60.01
Granted		—		$	—
Exercised		(77,905	)	$	47.65
Outstanding at December 31, 2015		220,429		$	64.37

Under the director plan, options exercisable were 220,429, 298,334 and 320,082 at December 31, 2015, 2014 and 2013, respectively.

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at December 31, 2015:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregate Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregate Intrinsic Value
$29.60 – $36.82		30,000		1.9	$	33.60				30,000	$	33.60
$41.24 – $56.45		71,276		4.3	$	52.34				71,276	$	52.34
$61.89 – $62.48		41,153		6.5	$	62.34				41,153	$	62.34
$75.17 – $99.52		78,000		7.3	$	88.28				78,000	$	88.28
$29.60 – $99.52		220,429		5.4	$	64.37	$	775,000		220,429	$	64.37	$	775,000

The following is a summary of the restricted stock award activity under the director plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		348		$	62.99
Granted		10,536		$	75.65
Vested		(10,500	)	$	75.23
Nonvested balance at December 31, 2013		384		$	75.65
Granted		8,160		$	99.52
Vested		(8,252	)	$	98.41
Nonvested balance at December 31, 2014		292		$	99.52
Granted		20,350		$	78.52
Vested		(18,851	)	$	79.77
Nonvested balance at December 31, 2015		1,791		$	68.73

The total intrinsic value of all stock options exercised under all of the Company’s plans was $2,555,000, $11,671,000 and $6,703,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $948,000, $4,388,000 and $2,520,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $10,270,000, $14,847,000 and $10,993,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $3,810,000, $5,583,000 and $4,133,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015, there was $2,956,000 of unrecognized compensation cost related to nonvested stock options and $16,920,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.2 years and restricted stock over approximately 2.8 years. The total fair value of stock options vested was $2,180,000, $3,759,000 and $3,341,000 during the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of the restricted stock vested was $10,270,000, $14,847,000 and $10,993,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

The weighted average per share fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $25.18, $36.05 and $25.14, respectively. The fair value of the stock options granted during the years ended December 31, 2015, 2014 and 2013 was $2,893,000, $4,226,000 and $4,184,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the stock options during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Dividend yield	None			None			None
Average risk-free interest rate		1.3	%		2.0	%		1.1	%
Stock price volatility		33	%		33	%		34	%
Estimated option term		Six years			Six years or seven years			Six years or seven years

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Retirement Plans

12 Months Ended

Dec. 31, 2015

Retirement Plans [Abstract]

Retirement Plans

(8) Retirement Plans

The Company sponsors a defined benefit plan for its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities.

The fair value of plan assets was $243,588,000 and $242,275,000 at December 31, 2015 and 2014 respectively. As of December 31, 2015 and 2014, these assets were allocated among asset categories as follows:

Asset Category	2015			2014			Current Minimum, Target and Maximum Allocation Policy
U.S. equity securities		50	%		52	%		30% — 50%— 70	%
International equity securities		18	%		18	%		0% — 20%— 30	%
Debt securities		28	%		30	%		15% — 30%— 55	%
Cash and cash equivalents		4	%		—	%		0% — 0%— 5	%
		100	%		100	%

The plan assets are invested entirely in common collective trusts. These instruments are public investment vehicles valued using the net asset value provided by the administrator of the fund. The net asset value is classified within Level 2 of the valuation hierarchy as set forth in the accounting guidance for fair value measurements because the net asset value price is quoted on an inactive private market although the underlying investments are traded on an active market.

The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income). The primary objective in the investment management of assets is to achieve long-term growth of principal while avoiding excessive risk. Risk is managed through diversification of investments within and among asset classes, as well as by choosing securities that have an established trading and underlying operating history.

The Company makes various assumptions when determining defined benefit plan costs including, but not limited to, the current discount rate and the expected long-term return on plan assets. Discount rates are determined annually and are based on a yield curve that consists of a hypothetical portfolio of high quality corporate bonds with maturities matching the projected benefit cash flows. The Company assumed that plan assets would generate a long-term rate of return of 7.5% in 2015 and 2014. The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants comparing historical returns for various asset classes with its actual and targeted plan investments. The Company believes that its long-term asset allocation, on average, will approximate the targeted allocation.

The Company’s pension plan funding strategy has historically been to contribute an amount equal to the greater of the minimum required contribution under ERISA or the amount necessary to fully fund the plan on an accumulated benefit obligation (“ABO”) basis at the end of the fiscal year. The ABO is based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult. The Company’s pension plan funding was 102% of the pension plan’s ABO at December 31, 2015.

The Company sponsors an unfunded defined benefit health care plan that provides limited postretirement medical benefits to employees who met minimum age and service requirements, and to eligible dependents. The plan limits cost increases in the Company’s contribution to 4% per year. The plan is contributory, with retiree contributions adjusted annually. The plan eliminated coverage for future retirees as of December 31, 2011. The Company also has an unfunded defined benefit supplemental executive retirement plan (“SERP”) that was assumed in an acquisition in 1999. That plan ceased to accrue additional benefits effective January 1, 2000.

The following table presents the change in benefit obligation and plan assets for the Company’s defined benefit plans and postretirement benefit plan (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Change in benefit obligation
Benefit obligation at beginning of year	$	315,075		$	249,960		$	1,637		$	1,529		$	1,264		$	2,307
Service cost		14,683			10,645			—			—			—			—
Interest cost		13,302			12,839			64			73			36			110
Actuarial loss (gain)		(39,474	)		66,640			(30	)		180			(321	)		(1,065	)
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Benefit obligation at end of year	$	297,325		$	315,075		$	1,526		$	1,637		$	891		$	1,264
Accumulated benefit obligation at end of year	$	238,775		$	241,592		$	1,526		$	1,637		$	—		$	—

Weighted-average assumption used to determine benefit obligation at end of year
Discount rate		4.5	%	4.1	%	4.5	%	4.1	%	4.5	%	4.1	%
Rate of compensation increase	Age-based table			4.25	%	—		—		—		—
Health care cost trend rate
Initial rate		—		—		—		—		6.5	%	7.0	%
Ultimate rate		—		—		—		—		5.0	%	5.0	%
Years to ultimate		—		—		—		—		2019		2019

Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation
Increase	$	—	$	—	$	—	$	—	$	107		$	167
Decrease		—		—		—		—		(93	)		(141	)

Change in plan assets
Fair value of plan assets at beginning of year	$	242,275		$	254,523		$	—		$	—		$	—		$	—
Actual return on plan assets		(2,426	)		12,761			—			—			—			—
Employer contribution		10,000			—			145			145			88			88
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Fair value of plan assets at end of year	$	243,588		$	242,275		$	—		$	—		$	—		$	—

The following table presents the funded status and amounts recognized in the Company’s consolidated balance sheet for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Funded status at end of year
Fair value of plan assets	$	243,588		$	242,275		$	—		$	—		$	—		$	—
Benefit obligations		297,325			315,075			1,526			1,637			891			1,264
Funded status and amount recognized at end of year	$	(53,737	)	$	(72,800	)	$	(1,526	)	$	(1,637	)	$	(891	)	$	(1,264	)

Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—		$	—		$	—		$	—		$	—		$	—
Current liability		—			—			(149	)		(141	)		(68	)		(83	)
Long-term liability		(53,737	)		(72,800	)		(1,377	)		(1,496	)		(823	)		(1,181	)

Amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	$	77,940	$	104,795	$	508	$	566	$	(6,319	)	$	(6,787	)
Prior service cost (credit)		—		—		—		—		—			—
Accumulated other compensation income	$	77,940	$	104,795	$	508	$	566	$	(6,319	)	$	(6,787	)

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Projected benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	297,325		$	315,075		$	1,526		$	1,637
Fair value of plan assets at end of year			243,588			242,275			—			—

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	—		$	—		$	1,526		$	1,637
Accumulated benefit obligation at end of year			—			—			1,526			1,637
Fair value of plan assets at end of year			—			—			—			—

The following tables presents the expected cash flows for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected employer contributions
First year	$	—	$	8,400	$	152	$	143	$	70	$	84

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected benefit payments (gross)
Year one	$	7,678	$	7,100	$	152	$	143	$	81	$	96
Year two		8,298		7,672		157		151		86		98
Year three		9,013		8,333		154		155		86		103
Year four		9,748		9,080		152		153		86		95
Year five		10,415		9,868		149		150		85		94
Next five years		63,860		62,666		608		621		341		445

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015			2014
Expected federal subsidy
Year one	$	—	$	—	$	—	$	—	$	(11	)	$	(11	)
Year two		—		—		—		—		(11	)		(11	)
Year three		—		—		—		—		(11	)		(11	)
Year four		—		—		—		—		(12	)		(12	)
Year five		—		—		—		—		(12	)		(12	)
Next five years		—		—		—		—		(55	)		(55	)

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company’s defined benefit plans for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Pension Benefits
	Pension Plan									SERP
	2015			2014			2013			2015			2014			2013
Components of net periodic benefit cost
Service cost	$	14,683		$	10,645		$	12,824		$	—		$	—		$	—
Interest cost		13,302			12,839			11,400			64			73			70
Expected return on plan assets		(17,921	)		(18,858	)		(16,127	)		—			—			—
Amortization:
Actuarial loss		7,728			701			8,276			28			16			19
Prior service credit		—			—			—			—			—			—
Net periodic benefit cost		17,792			5,327			16,373			92			89			89
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Current year actuarial loss (gain)		(19,127	)		72,737			(61,759	)		(30	)		180			(138	)
Recognition of actuarial loss		(7,728	)		(701	)		(8,276	)		(28	)		(16	)		(19	)
Recognition of prior service credit		—			—			—			—			—			—
Total recognized in other comprehensive income		(26,855	)		72,036			(70,035	)		(58	)		164			(157	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(9,063	)	$	77,363		$	(53,662	)	$	34		$	253		$	(68	)

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.1	%	5.0	%	4.1	%	4.1	%	5.0	%	4.1	%
Expected long-term rate of return on plan assets	7.5	%	7.5	%	7.5	%	—		—		—
Rate of compensation increase	4.25	%	4.25	%	4.25	%	—		—		—

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Pension Benefits
	Pension Plan		SERP
Actuarial loss	$	4,924	$	26
Prior service credit		—		—
	$	4,924	$	26

The components of net periodic benefit cost and other changes in benefit obligations recognized in other comprehensive income for the Company’s postretirement benefit plan for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
	2015			2014			2013
Components of net periodic benefit cost
Service cost	$	—		$	—		$	—
Interest cost		36			110			112
Amortization:
Actuarial gain		(793	)		(649	)		(620	)
Prior service cost		—			—			—
Net periodic benefit cost		(757	)		(539	)		(508	)
Other changes in benefit obligations recognized in other comprehensive income
Current year actuarial gain		(322	)		(1,065	)		(600	)
Recognition of actuarial gain		793			649			620
Recognition of prior service cost		—			—			—
Adjustment for actual Medicare Part D reimbursement		(3	)		(8	)		(5	)
Total recognized in other comprehensive income		468			(424	)		15
Total recognized in net periodic benefit cost and other comprehensive income	$	(289	)	$	(963	)	$	(493	)

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.1	%	5.0	%	4.1	%
Health care cost trend rate:
Initial rate	7.0	%	7.0	%	7.5	%
Ultimate rate	5.0	%	5.0	%	5.0	%
Years to ultimate	2019		2018		2018

Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost
Increase	$	5		$	7		$	10
Decrease		(4	)		(6	)		(9	)

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
Actuarial gain	$	(745	)
Prior service cost		—
	$	(745	)

The Company also contributes to a multiemployer pension plan pursuant to a collective bargaining agreement which covers certain vessel crew members of its coastal operations and expires on April 30, 2018. The Company began participation in the Seafarers Pension Trust (“SPT”) with the Penn acquisition on December 14, 2012.

Contributions to the SPT are made currently based on a per day worked basis and charged to expense as incurred and included in costs of sales and operating expenses in the consolidated statement of earnings. During 2015 and 2014, the Company made contributions of $1,202,000 and $1,290,000, respectively, to the SPT and none of the Company’s contributions to the SPT exceeded 5% of total contributions to the SPT nor did the Company pay any material surcharges.

The federal identification number of the SPT is 13-6100329 and the Certified Zone Status is Green at December 31, 2015. The Company’s future minimum contribution requirements under the SPT are unavailable because actuarial reports for the 2015 plan year are not yet complete and such contributions are subject to negotiations between the employers and the unions. The SPT was neither in endangered or critical status for the 2014 plan year, the latest period for which a report is available, as the funded status was in excess of 100%. Based on an actuarial valuation performed as of December 31, 2014, there would be no withdrawal liability if the Company chose to withdraw from the SPT although the Company currently has no intention of terminating its participation in the SPT.

In addition to the defined benefit plans, the Company sponsors various defined contribution plans for substantially all employees. The aggregate contributions to the plans were $24,077,000, $23,356,000 and $23,158,000 in 2015, 2014 and 2013, respectively.

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Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Other Comprehensive Income [Abstract]

Other Comprehensive Income

(9) Other Comprehensive Income

The Company’s changes in other comprehensive income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015							2014									2013
	Gross Amount		Income Tax (Provision) Benefit			Net Amount		Gross Amount			Income Tax (Provision) Benefit			Net Amount			Gross Amount			Income Tax (Provision) Benefit			Net Amount
Pension and postretirement benefits (a):
Amortization of net actuarial loss	$	6,963	$	(2,667	)	$	4,296	$	68		$	(26	)	$	42		$	7,675		$	(2,942	)	$	4,733
Actuarial gains (losses)		19,482		(7,456	)		12,026		(71,843	)		27,507			(44,336	)		62,503			(23,962	)		38,541
Foreign currency translation adjustments		29		—			29		(35	)		—			(35	)		108			—			108
Change in fair value of derivative instruments (b):
Unrealized gains (losses)		—		—			—		24			(9	)		15			2,851			(996	)		1,855
Reclassified to net earnings		—		—			—		121			(51	)		70			(1,389	)		486			(903	)
Total	$	26,474	$	(10,123	)	$	16,351	$	(71,665	)	$	27,421		$	(44,244	)	$	71,748		$	(27,414	)	$	44,334

(a) Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 8 – Retirement Plans)

(b) Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

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Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

(10) Earnings Per Share

The following table presents the components of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts):

	2015			2014			2013
Net earnings attributable to Kirby	$	226,684		$	282,006		$	253,061
Undistributed earnings allocated to restricted shares		(1,345	)		(1,643	)		(1,819	)
Income available to Kirby common stockholders — basic		225,339			280,363			251,242
Undistributed earnings allocated to restricted shares		1,345			1,643			1,819
Undistributed earnings reallocated to restricted shares		(1,343	)		(1,637	)		(1,813	)
Income available to Kirby common stockholders — diluted	$	225,341		$	280,369		$	251,248
Shares outstanding:
Weighted average common stock issued and outstanding		55,056			57,006			56,762
Weighted average unvested restricted stock		(327	)		(332	)		(408	)
Weighted average common stock outstanding — basic		54,729			56,674			56,354
Dilutive effect of stock options		97			193			198
Weighted average common stock outstanding — diluted		54,826			56,867			56,552
Net earnings per share attributable to Kirby common stockholders:
Basic	$	4.12		$	4.95		$	4.46
Diluted	$	4.11		$	4.93		$	4.44

Certain outstanding options to purchase approximately 227,000, 75,000 and 2,000 shares of common stock were excluded in the computation of diluted earnings per share as of December 31, 2015, 2014 and 2013, respectively, as such stock options would have been antidilutive.

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Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Results (Unaudited) [Abstract]

Quarterly Results (Unaudited)

(11) Quarterly Results (Unaudited)

The unaudited quarterly results for the year ended December 31, 2015 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Revenues	$	587,673		$	543,156		$	532,565		$	484,138
Costs and expenses		486,136			445,113			437,115			400,178
Gain (loss) on disposition of assets		1,555			91			(400	)		426
Operating income		103,092			98,134			95,050			84,386
Other income (expense)		60			(303	)		22			9
Interest expense		(5,250	)		(4,759	)		(4,449	)		(4,280	)
Earnings before taxes on income		97,902			93,072			90,623			80,115
Provision for taxes on income		(36,491	)		(34,696	)		(33,512	)		(29,043	)
Net earnings		61,411			58,376			57,111			51,072
Less: Net earnings attributable to noncontrolling interests		(333	)		(301	)		(268	)		(384	)
Net earnings attributable to Kirby	$	61,078		$	58,075		$	56,843		$	50,688
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.04		$	1.04		$	0.94
Diluted	$	1.09		$	1.04		$	1.04		$	0.94

The unaudited quarterly results for the year ended December 31, 2014 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Revenues	$	589,246		$	628,054		$	680,721		$	668,297
Costs and expenses		482,443			501,556			552,642			554,646
Gain on disposition of assets		51			527			47			156
Operating income		106,854			127,025			128,126			113,807
Other income (expense)		(236	)		123			27			125
Interest expense		(5,618	)		(5,469	)		(5,225	)		(5,149	)
Earnings before taxes on income		101,000			121,679			122,928			108,783
Provision for taxes on income		(37,989	)		(45,768	)		(45,715	)		(40,310	)
Net earnings		63,011			75,911			77,213			68,473
Less: Net earnings attributable to noncontrolling interests		(765	)		(919	)		(496	)		(422	)
Net earnings attributable to Kirby	$	62,246		$	74,992		$	76,717		$	68,051
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.32		$	1.34		$	1.19
Diluted	$	1.09		$	1.31		$	1.34		$	1.19

Quarterly basic and diluted earnings per share may not total to the full year per share amounts, as the weighted average number of shares outstanding for each quarter fluctuates as a result of the assumed exercise of stock options.

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Contingencies and Commitments

12 Months Ended

Dec. 31, 2015

Contingencies and Commitments [Abstract]

Contingencies and Commitments

(12) Contingencies and Commitments

In June 2011, the Company as well as three other companies received correspondence from the United States Environmental Protection Agency (“EPA”) concerning ongoing cleanup and restoration activities under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) with respect to a Superfund site, the Gulfco Marine Maintenance Site (“Gulfco”), located in Freeport, Texas. In prior years, various subsidiaries of the Company utilized a successor to Gulfco to perform tank barge cleaning services, sand blasting and repair on certain Company vessels. Since 2005, four named Potentially Responsible Parties (“PRPs”) have participated in the investigation, cleanup and restoration of the site under an administrative order from EPA. Information provided by the PRPs indicates that approximately $9,943,000 was incurred in connection with the cleanup effort. The EPA has incurred oversight costs of approximately $2,258,000. The named PRPs filed suit against the Company and approximately 21 other defendants seeking contribution and indemnity under CERCLA for costs incurred in connection with its activities in cleaning up the Gulfco Site. The Company and other nonparticipating PRPs continue to address settlement terms related to this matter with the Gulfco Restoration Group.

In 2009, the Company was named a PRP in addition to a group of approximately 250 named PRPs under CERCLA with respect to a Superfund site, the Portland Harbor Superfund site (“Portland Harbor”) in Portland, Oregon. The site was declared a Superfund site in December 2000 as a result of historical heavily industrialized use due to manufacturing, shipbuilding, petroleum storage and distribution, metals salvaging, and electrical power generation activities which led to contamination of Portland Harbor, an urban and industrial reach of the lower Willamette River located immediately downstream of downtown Portland. The Company’s involvement arises from four spills at the site after it was declared a Superfund site, as a result of predecessor entities’ actions in the area. To date, there is no information suggesting the extent of the costs or damages to be claimed from the 250 notified PRPs. Based on the nature of the involvement at the Portland Harbor site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

In 2000, the Company and a group of approximately 45 other companies were notified that they are PRPs under CERCLA with respect to a Superfund site, the Palmer Barge Line Superfund Site (“Palmer”), located in Port Arthur, Texas. In prior years, Palmer had provided tank barge cleaning services to various subsidiaries of the Company. The Company and three other PRPs entered into an agreement with the EPA to perform a remedial investigation and feasibility study and, subsequently, a limited remediation was performed and is now complete. During the 2007 third quarter, five new PRPs entered into an agreement with the EPA related to the Palmer site. In July 2008, the EPA sent a letter to approximately 30 PRPs for the Palmer site, including the Company, indicating that it intends to pursue recovery of $2,949,000 of costs it incurred in relation to the site. The Company and the other PRPs have resolved the EPA’s past costs claim which was approved by the EPA and Department of Justice. The Company has funded its contribution to settlement and the Consent Decree has been granted by the Court fulfilling all procedural requirements of the settlement.

In January 2015, the Company was named as a defendant in a Complaint filed in the U.S. District Court of the Southern District of Texas, USOR Site PRP Group vs. A&M Contractors, USES, Inc. et al. This is a civil action pursuant to the provisions of CERCLA and the Texas Solid Waste Disposal Act for recovery of past and future response costs incurred and to be incurred by the USOR Site PRP Group for response activities at the U.S. Oil Recovery Superfund Site.  The property was a former sewage treatment plant owned by Defendant City of Pasadena, Texas from approximately 1945 until it was acquired by U.S. Oil Recovery in January 2009.  Throughout its operating life, the U.S. Oil Recovery facility portion of the USOR Site received and performed wastewater pretreatment of municipal and Industrial Class I and Class II wastewater, characteristically hazardous waste, used oil and oily sludges, and municipal solid waste.  Associated operations were conducted at the MCC Recycling facility portion of the USOR Site after it was acquired by U.S. Oil Recovery from the City of Pasadena in January 2009.  Initially, the plaintiff stayed prosecution of the case pending responses to initial settlement demands.  In January 2016, the Company filed responsive pleadings in this matter.  Based on the nature of the involvement at the USOR site, the Company believes its potential contribution is de minimis; however, to date neither the EPA nor the named PRPs have performed an allocation of potential liability in connection with the site nor have they provided costs and expenses in connection with the site.

With respect to the above sites, the Company has recorded reserves, if applicable, for its estimated potential liability for its portion of the EPA’s past costs claim based on information developed to date including various factors such as the Company’s liability in proportion to other responsible parties and the extent to which such costs are recoverable from third parties.

On July 25, 2011, a subsidiary of the Company was named as a defendant in the U.S. District Court for the Southern District of Texas - Galveston Division, in a complaint styled Figgs. v. Kirby Inland Marine, LP (“Kirby Inland Marine”), et al., which alleges that the plaintiff individually as a vessel tankerman, and on behalf of other current and former similarly situated vessel tankermen employed with the Company, is entitled to overtime pay under the Fair Labor Standards Act. Plaintiffs assert that vessel tankermen are not seamen who are expressly exempt from overtime pay provisions under the law. The case was conditionally certified as a collective action on December 22, 2011 at which time the Court prescribed a notice period for current and former employees to voluntarily participate as plaintiffs. The notice period closed on February 27, 2012. Plaintiffs seek compensatory damages in the form of back pay, attorneys’ fees, cost and liquidated damages. In a recent case that presented substantially the same facts and legal issues, the United States Court of Appeals for the Fifth Circuit ruled that vessel tankermen are seamen who are exempt from the overtime pay provisions of the Fair Labor Standards Act. While the Figgs case is still pending, the Company believes that, after the Fifth Circuit ruling, it will incur no material liability in the case.

On March 22, 2014, two tank barges and a towboat (the M/V Miss Susan), owned by Kirby Inland Marine, LP, a wholly owned subsidiary of the Company, were involved in a collision with the M/S Summer Wind on the Houston Ship Channel near Texas City, Texas. The lead tank barge was damaged in the collision resulting in a discharge of intermediate fuel oil from one of its cargo tanks. The USCG and the National Transportation Safety Board named the Company and the Captain of the M/V Miss Susan, as well as the owner and the pilot of the M/S Summer Wind, as parties of interest in their investigation as to the cause of the incident. Sea Galaxy Ltd is the owner of the M/S Summer Wind. The Company is participating in the natural resource damage assessment and restoration process with federal and state government natural resource trustees.

The Company and the owner of the M/S Summer Wind filed actions in the U.S. District Court for the Southern District of Texas seeking exoneration from or limitation of liability relating to the foregoing incident as provided for in the federal rules of procedure for maritime claims. The two actions were consolidated for procedural purposes since they both arise out of the same occurrence. There is a separate process for making a claim under the Oil Pollution Act of 1990 (“OPA”). The Company is processing claims properly presented, documented and recoverable under OPA. The Company is named as a party in other lawsuits filed in connection with this incident which are currently stayed by orders entered into by the court in the limitation proceedings, some of which may also have been presented as claims in the limitation proceeding. The actions include allegation of business interruption, loss of profit, loss of use of natural resources and seek unspecified economic and compensatory damages. In addition, the Company has received claims from numerous parties claiming property damage and various economic damages. The Company has also been named as a defendant in a civil action by two crewmembers of the M/V Miss Susan, alleging damages under the general maritime law and the Jones Act. The litigation and claims process is ongoing. In December 2015, the Company submitted evidence in the liability trial in connection with the consolidated limitation actions.  The damages phase of the trial is scheduled for the second quarter of 2016.  The Company believes it has adequate insurance coverage for pollution, marine and other potential liabilities arising from the incident. The Company believes it has accrued adequate reserves for the incident and does not expect the incident to have a material adverse effect on its business or financial condition.

In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations or cash flows. Management believes that it has recorded adequate reserves and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies.

Certain Significant Risks and Uncertainties. The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. However, in the opinion of management, the amounts would be immaterial.

The customer base of the marine transportation segment includes the major industrial petrochemical and chemical manufacturers, refining companies and agricultural chemical manufacturers operating in the United States. During 2015, approximately 80% of marine transportation’s inland revenues were from movements of such products under term contracts, typically ranging from one year to three years, some with renewal options. During 2015, approximately 80% of the marine transportation’s coastal revenues were under term contracts. While the manufacturing and refining companies have generally been customers of the Company for numerous years (some as long as 40 years) and management anticipates a continuing relationship, there is no assurance that any individual contract will be renewed. No single customer of the marine transportation segment accounted for 10% of the Company’s revenues in 2015, 2014 and 2013.

Major customers of the diesel engine services segment include inland and offshore barge operators, oilfield service companies, oil and gas operators and producers, offshore fishing companies, marine and on-highway transportation companies, the USCG and United States Navy, and power generation, nuclear and industrial companies. The segment operates as an authorized distributor in 17 eastern states and the Caribbean, and as non-exclusive authorized service centers for Electro-Motive Diesel, Inc. (“EMD”) throughout the rest of the United States for marine and power generation applications. The diesel engine services segment’s relationship with EMD has been maintained for 50 years. The segment also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere high-speed diesel engines and Allison transmissions and gears in the Gulf Coast region, as well as an authorized marine dealer for Caterpillar in Alabama, Kentucky, Louisiana and New Jersey.

United has maintained continuous exclusive distribution rights for MTU and Allison since 1946. United is one of MTU’s top five distributors of MTU off-highway engines in North America with exclusive distribution rights in Oklahoma, Arkansas, Louisiana and Mississippi. In addition, as a distributor of Allison transmission products, United has distribution rights in Oklahoma, Arkansas and Louisiana. Finally, United is also the exclusive distributor for Daimler engines and related equipment in Oklahoma, Arkansas and Louisiana.

The results of the diesel engine services segment are largely tied to the industries it serves and, therefore, can be influenced by the cycles of such industries. No single customer of the diesel engine services segment accounted for 10% of the Company’s revenues in 2015, 2014 and 2013.

Weather can be a major factor in the day-to-day operations of the marine transportation segment. Adverse weather conditions, such as high or low water, tropical storms, hurricanes, tsunamis, fog and ice, can impair the operating efficiencies of the marine fleet. Shipments of products can be delayed or postponed by weather conditions, which are totally beyond the control of the Company. Adverse water conditions are also factors which impair the efficiency of the fleet and can result in delays, diversions and limitations on night passages, and dictate horsepower requirements and size of tows. Additionally, much of the inland waterway system is controlled by a series of locks and dams designed to provide flood control, maintain pool levels of water in certain areas of the country and facilitate navigation on the inland river system. Maintenance and operation of the navigable inland waterway infrastructure is a government function handled by the Army Corps of Engineers with costs shared by industry. Significant changes in governmental policies or appropriations with respect to maintenance and operation of the infrastructure could adversely affect the Company.

The Company’s marine transportation segment is subject to regulation by the USCG, federal laws, state laws and certain international conventions, as well as numerous environmental regulations. The Company believes that additional safety, environmental and occupational health regulations may be imposed on the marine industry. There can be no assurance that any such new regulations or requirements, or any discharge of pollutants by the Company, will not have an adverse effect on the Company.

The Company’s marine transportation segment competes principally in markets subject to the Jones Act, a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States, and manned and owned by United States citizens. The Jones Act cabotage provisions occasionally come under attack by interests seeking to facilitate foreign flag competition in trades reserved for domestic companies and vessels under the Jones Act. The Company believes that continued efforts will be made to modify or eliminate the cabotage provisions of the Jones Act. If such efforts are successful, certain elements could have an adverse effect on the Company.

The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $19,968,000 at December 31, 2015, including $6,299,000 in letters of credit and $13,669,000 in performance bonds. All of these instruments have an expiration date within four years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur in connection with these instruments.

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Segment Data

12 Months Ended

Dec. 31, 2015

Segment Data [Abstract]

Segment Data

(13) Segment Data

The Company’s operations are aggregated into two reportable business segments as follows:

Marine Transportation — Provides marine transportation principally by United States flag vessels of liquid cargoes throughout the United States inland waterway system, along all three United States coasts, in Alaska and Hawaii and, to a lesser extent, in United States coastal transportation of dry-bulk cargoes. The principal products transported include petrochemicals, black oil, refined petroleum products and agricultural chemicals.

Diesel Engine Services — Provides after-market services for medium-speed and high-speed diesel engines, reduction gears and ancillary products for marine and power generation applications, distributes and services high-speed diesel engines, transmissions and pumps, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based oilfield service and oil and gas operator and producer markets.

The Company’s two reportable business segments are managed separately based on fundamental differences in their operations. The Company’s accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. Intersegment revenues, based on market-based pricing, of the diesel engine services segment from the marine transportation segment of $26,203,000, $25,769,000 and $27,669,000 in 2015, 2014 and 2013, respectively, as well as the related intersegment profit of $2,620,000, $2,577,000 and $2,767,000 in 2015, 2014 and 2013, respectively, have been eliminated from the tables below.

The following table sets forth by reportable segment the revenues, profit or loss, total assets, depreciation and amortization, and capital expenditures attributable to the principal activities of the Company for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
Revenues:
Marine transportation	$	1,663,090		$	1,770,684		$	1,713,167
Diesel engine services		484,442			795,634			529,028
	$	2,147,532		$	2,566,318		$	2,242,195
Segment profit (loss):
Marine transportation	$	374,842		$	429,864		$	408,255
Diesel engine services		18,921			60,063			42,767
Other		(32,051	)		(35,537	)		(42,344	)
	$	361,712		$	454,390		$	408,678
Total assets:
Marine transportation	$	3,451,553		$	3,317,696		$	3,046,692
Diesel engine services		637,549			736,129			576,472
Other		67,164			88,084			59,353
	$	4,156,266		$	4,141,909		$	3,682,517
Depreciation and amortization:
Marine transportation	$	175,798		$	154,019		$	149,574
Diesel engine services		12,498			11,463			11,096
Other		3,944			3,830			3,767
	$	192,240		$	169,312		$	164,437
Capital expenditures:
Marine transportation	$	311,862		$	340,315		$	237,964
Diesel engine services		28,907			7,486			4,658
Other		4,706			7,343			10,605
	$	345,475		$	355,144		$	253,227

The following table presents the details of “Other” segment profit (loss) for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
General corporate expenses	$	(14,773	)	$	(14,896	)	$	(15,728	)
Interest expense		(18,738	)		(21,461	)		(27,872	)
Gain on disposition of assets		1,672			781			888
Other income (expense)		(212	)		39			368
	$	(32,051	)	$	(35,537	)	$	(42,344	)

The following table presents the details of “Other” total assets as of December 31, 2015, 2014 and 2013 (in thousands):

	2015		2014		2013
General corporate assets	$	65,074	$	85,545	$	57,197
Investment in affiliates		2,090		2,539		2,156
	$	67,164	$	88,084	$	59,353

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Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

(14) Related Party Transactions

Richard J. Alario, a current director of the Company, is Chief Executive Officer of Key Energy Services, Inc. (“Key Energy”). Key Energy paid the Company $572,000 in 2015, $1,232,000 in 2014 and $1,973,000 in 2013 for oilfield service equipment and for parts and service. Such sales and service were in the ordinary course of business of the Company.

The Company is a 50% owner of The Hollywood Camp, L.L.C. (“The Hollywood Camp”), a company that owns and operates a hunting and fishing facility used by the Company primarily for customer entertainment. The Hollywood Camp allocates lease and lodging expenses to its members based on their usage of the facilities. Key Energy paid The Hollywood Camp $1,236,000 in 2015, $1,634,000 in 2014 and $1,112,000 in 2013 for use of the facility. The Company paid The Hollywood Camp $2,830,000 in 2015, $2,303,000 in 2014 and $2,044,000 in 2013 for its share of facility expenses.

The husband of Amy D. Husted, Vice President — Legal of the Company, is a partner in the law firm of Strasburger & Price, LLP. The Company paid the law firm $596,000 in 2015, $1,184,000 in 2014 and $851,000 in 2013 for legal services in connection with matters in the ordinary course of business of the Company.

The Company is a 50% owner of Bolivar Terminal Co., Inc. (“Bolivar”), a company that provides barge fleeting services (temporary barge storage facilities) in the Houston, Texas area. The Company paid Bolivar $895,000 in 2015, $561,000 in 2014 and $703,000 in 2013 for barge fleeting services. Such services were in the ordinary course of business of the Company.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation. The consolidated financial statements include the accounts of Kirby Corporation and all majority-owned subsidiaries (“the Company”). One affiliated limited partnership, in which the Company owns a 50% interest, is the general partner and has effective control and whose activities are an integral part of the operations of the Company, is consolidated. All other investments in which the Company owns 20% to 50% and exercises significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to reflect the current presentation of financial information.

Cash Equivalents

Cash Equivalents. Cash equivalents consist of all short-term, highly liquid investments with maturities of three months or less at date of purchase.

Accounts Receivable

Accounts Receivable. In the normal course of business, the Company extends credit to its customers. The Company regularly reviews the accounts and makes adequate provisions for probable uncollectible balances. It is the Company’s opinion that the accounts have no impairment, other than that for which provisions have been made. Included in accounts receivable as of December 31, 2015 and 2014 were $90,166,000 and $143,615,000, respectively, of accruals for revenues earned which have not been invoiced as of the end of each year.

The Company’s marine transportation and diesel engine services operations are subject to hazards associated with such businesses. The Company maintains insurance coverage against these hazards with insurance companies. Included in accounts receivable as of December 31, 2015 and 2014 were $77,684,000 and $92,379,000, respectively, of receivables from insurance companies to cover claims in excess of the Company’s deductible.

Concentrations of Credit Risk

Concentrations of Credit Risk. Financial instruments which potentially subject the Company to concentrations of credit risk are primarily trade accounts receivables. The Company’s marine transportation customers include the major oil refining and petrochemical companies. The diesel engine services customers are oil and gas service companies, marine transportation companies, commercial fishing companies, power generation companies, and the United States government. The Company regularly reviews its accounts and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information. Estimates of uncollectible amounts are revised each period, and changes are recorded in the period they become known.

Fair Value of Financial Instruments

Fair Value of Financial Instruments. Cash, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company’s debt instruments is more fully described in Note 4, Long-Term Debt.

Property, Maintenance and Repairs

Property, Maintenance and Repairs. Property is recorded at cost. Improvements and betterments are capitalized as incurred. Depreciation is recorded on the straight-line method over the estimated useful lives of the individual assets as follows: marine transportation equipment, 5-40 years; buildings, 10-40 years; other equipment, 2-10 years; and leasehold improvements, term of lease. When property items are retired, sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts with any gain or loss on the disposition included in the statement of earnings. Maintenance and repairs on vessels built for use on the inland waterways are charged to operating expense as incurred and includes the costs incurred in United States Coast Guard (“USCG”) inspections unless the shipyard extends the life or improves the operating capacity of the vessel which results in the costs being capitalized.

Drydocking on Ocean-Going Vessels

Drydocking on Ocean-Going Vessels. The Company’s ocean-going vessels are subject to regulatory drydocking requirements after certain periods of time to be inspected, have planned major maintenance performed and be recertified by the American Bureau of Shipping (“ABS”). These recertifications generally occur twice in a five year period. The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed. Drydocking expenditures that extend the life or improve the operating capability of the vessel result in the costs being capitalized. The Company recognized amortization of  major maintenance costs of $22,126,000, $16,409,000 and $9,029,000 for the years ended December 31, 2015, 2014 and 2013, respectively, in costs of sales and operating expenses. Routine repairs and maintenance on ocean-going vessels are expensed as incurred. Interest is capitalized on the construction of new ocean-going vessels. Interest expense excludes capitalized interest of $3,026,000 and $639,000 for the years ending December 31, 2015 and 2014, respectively. No interest was capitalized for the year ending December 31, 2013.

Environmental Liabilities

Environmental Liabilities. The Company expenses costs related to environmental events as they are incurred or when a loss is considered probable and estimable.

Goodwill

Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill. The Company conducted its annual goodwill impairment test at November 30, 2015 and 2014. For 2015 and 2014, the Company noted no impairment of goodwill. The Company will continue to conduct goodwill impairment tests as of November 30 of subsequent years, or whenever events or circumstances indicate that interim impairment testing is necessary. The amount of goodwill impairment, if any, is typically measured based on projected discounted future operating cash flows using an appropriate discount rate. The gross carrying value of goodwill at December 31, 2015 and 2014 was $604,185,000 and $608,872,000, respectively, and accumulated amortization at December 31, 2015 and 2014 was $15,566,000. Accumulated impairment losses were $1,901,000 at December 31, 2015 and 2014.

Net goodwill for the marine transportation segment was $381,243,000 at December 31, 2015 and 2014. Net goodwill for the diesel engine services segment was $205,475,000 and $210,162,000 at December 31, 2015 and 2014, respectively. The decrease in net goodwill for the diesel engine services segment was due to a sale of a business during 2015 and the reclassification of certain assets as held for sale as of December 31, 2015.

Revenue Recognition

Revenue Recognition. The majority of marine transportation revenue is derived from term contracts, ranging from one to three years, some of which have renewal options, and the remainder is from spot market movements. The majority of the term contracts are for terms of one year. The Company is a provider of marine transportation services for its customers and, in almost all cases, does not assume ownership of the products it transports. A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate or at a daily rate. The rate may or may not escalate during the term of the contract, however, the base rate generally remains constant and contracts often include escalation provisions to recover changes in specific costs such as fuel. A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate, including fuel, and are subject to market volatility. The Company uses a voyage accounting method of revenue recognition for its marine transportation revenues which allocates voyage revenue based on the percent of the voyage completed during the period. There is no difference in the recognition of revenue between a term contract and a spot contract.

Diesel engine service products and services are generally sold based upon purchase orders or preferential service agreements with the customer that include fixed or determinable prices and that do not include right of return or significant post-delivery performance obligations. Diesel engine parts sales are recognized when title passes upon shipment to customers or when customer-specific acceptance requirements are met. Service revenue is recognized as the service is provided. Diesel manufacturing and assembly projects revenue is reported on the percentage of completion method of accounting using measurements of progress towards completion appropriate for the work performed.

Stock-Based Compensation

Stock-Based Compensation. The Company has share-based compensation plans covering selected officers and other key employees as well as the Company’s Board of Directors. Stock-based grants made under the Company’s stock plans are recorded at fair value on the date of the grant and the cost is recognized ratably over the vesting period of the stock option or restricted stock. Stock option grants are valued at the date of grant as calculated under the Black-Scholes option pricing model. The Company’s stock-based compensation plans are more fully described in Note 7, Stock Award Plans.

Taxes on Income

Taxes on Income. The Company follows the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Accrued Insurance

Accrued Insurance. Accrued insurance liabilities include estimates based on individual incurred claims outstanding and an estimated amount for losses incurred but not reported (“IBNR”) or fully developed based on past experience. Insurance premiums, IBNR losses and incurred claim losses, in excess of the Company’s deductible for 2015, 2014 and 2013 were $23,737,000, $25,416,000 and $22,971,000, respectively.

Noncontrolling Interests

Noncontrolling Interests. The Company has a majority interest in and is the general partner in several affiliated entities. In situations where losses applicable to the minority interest in the affiliated entities exceed the limited partners’ equity capital, such excess and any further loss attributable to the minority interest is charged against the Company’s interest in the affiliated entities. If future earnings materialize in the respective affiliated entities, the Company’s interest would be credited to the extent of any losses previously absorbed.

Treasury Stock

Treasury Stock. The Company follows the average cost method of accounting for treasury stock transactions.

Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of

Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. The Company reviews long-lived assets and certain identifiable intangibles for impairment by vessel class whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Recoverability on marine transportation assets is assessed based on vessel classes, not on individual assets, because identifiable cash flows for individual marine transportation assets are not available. Projecting customer contract volumes allows estimation of future cash flows by projecting pricing and utilization by vessel class but it is not practical to project which individual marine transportation asset will be utilized for any given contract. Because customers do not specify which particular vessel is used, prices are quoted based on vessel classes not individual assets. Nominations of vessels for specific jobs are determined on a day by day basis and are a function of the equipment class required and the geographic position of vessels within that class at that particular time as vessels within a class are interchangeable and provide the same service. The Company’s vessels are mobile assets and equipped to operate in geographic regions throughout the United States and the Company has in the past and expects to continue to move vessels from one region to another when it is necessary due to changing markets and it is economical to do so. Barge vessel classes are based on similar capacities, hull type, and type of product and towing vessels are based on similar hull type and horsepower. Recoverability of the vessel classes is measured by a comparison of the carrying amount of the assets to future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Accounting Standards

Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) which requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet.  The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance.  ASU 2015-17 is effective for annual and interim periods beginning after December 15, 2016 but early application is permitted and the guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.  The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard.

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”) which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”) or the retail inventory method. ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 requires retrospective application and is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company will adopt the standard in the first quarter of 2016 and does not expect the effect of ASU 2015-03 to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in United States Generally Accepted Accounting Principles when it becomes effective. In July 2015, the FASB voted to delay the effective date of ASU 2014-09 by one year, making it effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 on its ongoing financial reporting.

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Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventories [Abstract]

Schedule of Details of Inventories

The following table presents the details of inventories as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015		December 31, 2014
Finished goods	$	163,501	$	179,760
Work in process		21,010		12,594
	$	184,511	$	192,354

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Long-Term Debt [Abstract]

Schedule of Long-Term Debt

Long-term debt at December 31, 2015 and 2014 consisted of the following (in thousands):

	2015		2014
Long-term debt, including current portion:
$550,000,000 revolving credit facility due April 30, 2020	$	278,834	$	—
$325,000,000 revolving credit facility due November 9, 2015		—		116,700
$150,000,000 senior notes Series A due February 27, 2020		150,000		150,000
$350,000,000 senior notes Series B due February 27, 2023		350,000		350,000
$10,000,000 credit line due June 30, 2017		—		—
$540,000,000 term loan due July 1, 2016		—		100,000
	$	778,834	$	716,700

Schedule of Aggregate Payments due on the Long-Term Debt

The aggregate payments due on the long-term debt in each of the next five years were as follows (in thousands):

2016	$	—
2017		—
2018		—
2019		—
2020		428,834
Thereafter		350,000
	$	778,834

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Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2015

Taxes on Income [Abstract]

Earnings Before Taxes

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Earnings before taxes on income — United States	$	361,712	$	454,390	$	408,678
Provision for taxes on income:
Federal:
Current	$	64,707	$	81,953	$	41,008
Deferred		59,582		72,920		97,586
State and local		9,453		14,909		13,785
	$	133,742	$	169,782	$	152,379

Schedule of Effective Income Tax Rate Reconciliation

The Company’s provision for taxes on income varied from the statutory federal income tax rate for the years ended December 31, 2015, 2014 and 2013 due to the following:

	2015			2014			2013
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		1.7			2.2			2.2
Other – net		.3			.2			.1
		37.0	%		37.4	%		37.3	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the current deferred tax assets and non-current deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in thousands):

	2015			2014
Current deferred tax assets:
Compensated absences	$	829		$	854
Allowance for doubtful accounts		3,288			3,111
Insurance accruals		4,234			2,858
Other		3,372			3,739
	$	11,723		$	10,562
Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	2,501		$	2,795
Insurance accruals		3,410			3,325
Deferred compensation		10,534			10,157
Unrealized loss on defined benefit plans		25,245			34,501
Operating loss carryforwards		5,188			5,219
Other		20,702			20,687
Valuation allowances		(4,716	)		(4,704	)
		62,864			71,980
Deferred tax liabilities:
Property		(604,737	)		(547,388	)
Deferred state taxes		(53,542	)		(49,503	)
Pension benefits		(8,471	)		(11,198	)
Goodwill and other intangibles		(44,185	)		(37,936	)
Other		(21,737	)		(21,724	)
		(732,672	)		(667,749	)
	$	(669,808	)	$	(595,769	)

Reconciliation of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013, is as follows (in thousands):

	2015			2014			2013
Balance at beginning of year	$	1,171		$	949		$	1,045
Additions based on tax positions related to the current year		339			470			239
Additions for tax positions of prior years		785			39			114
Reductions for tax positions of prior years		(337	)		(287	)		(413	)
Settlements		—			—			(36	)
Balance at end of year	$	1,958		$	1,171		$	949

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Leases (Tables)

12 Months Ended

Dec. 31, 2015

Leases [Abstract]

Schedule of Rent Expense

Total rental expense for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

	2015		2014		2013
Rental expense:
Marine equipment — barges	$	14,092	$	19,780	$	20,841
Marine equipment — towing vessels		143,067		136,331		124,877
Other buildings and equipment		9,383		9,146		10,298
Rental expense	$	166,542	$	165,257	$	156,016

Schedule of Future Minimum Lease Payments under Operating Leases

Future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2015 were as follows (in thousands):

	Land, Buildings		Marine Equipment
	And Equipment		Barges		Towing Vessels		Total
2016	$	7,654	$	11,751	$	100,124	$	119,529
2017		6,806		10,544		46,362		63,712
2018		6,166		8,843		20,732		35,741
2019		4,375		3,856		317		8,548
2020		3,570		2,239		—		5,809
Thereafter		13,519		—		—		13,519
	$	42,090	$	37,233	$	167,535	$	246,858

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Stock Award Plans (Tables)

12 Months Ended

Dec. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Compensation Cost Breakdown in Statement of Earnings

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015		2014		2013
Compensation cost	$	11,104	$	11,591	$	11,621
Income tax benefit	$	4,120	$	4,358	$	4,370

Summary of Stock Option Valuation Assumptions

The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the stock options during the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Dividend yield	None			None			None
Average risk-free interest rate		1.3	%		2.0	%		1.1	%
Stock price volatility		33	%		33	%		34	%
Estimated option term		Six years			Six years or seven years			Six years or seven years

Employee Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Option Activity

The following is a summary of the stock option activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		351,173		$	45.54
Granted		111,527		$	70.94
Exercised		(83,096	)	$	34.51
Canceled or expired		—		$	—
Outstanding at December 31, 2013		379,604		$	55.42
Granted		75,204		$	98.91
Exercised		(119,276	)	$	42.07
Canceled or expired		(12,576	)	$	68.89
Outstanding at December 31, 2014		322,956		$	69.95
Granted		114,894		$	74.99
Exercised		—		$	—
Canceled or expired		(7,418	)	$	86.28
Outstanding at December 31, 2015		430,432		$	71.01

Summary of Outstanding and Exercisable Stock Options

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at December 31, 2015:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregated Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregated Intrinsic Value
$	31.35 – $36.35		16,910		1.1	$	32.82				16,910	$	32.82
$	46.74		56,629		2.1	$	46.74				56,629	$	46.74
$	65.28 – $74.99		283,963		4.6	$	70.98				141,669	$	67.90
$	93.64 – $96.85		35,763		5.1	$	94.27				11,921	$	94.27
$	101.46 – $114.11		37,167		5.2	$	103.22				12,389	$	103.22
$	31.35 – $114.11		430,432		4.2	$	71.01	$	668,000		239,518	$	63.56	$	668,000

Summary of Restricted Stock Award Activity

The following is a summary of the restricted stock award activity under the employee plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		418,128		$	45.39
Granted		139,971		$	69.85
Vested		(149,162	)	$	44.30
Forfeited		(9,659	)	$	61.20
Nonvested balance at December 31, 2013		399,278		$	54.92
Granted		97,706		$	97.46
Vested		(141,870	)	$	45.64
Forfeited		(33,661	)	$	63.56
Nonvested balance at December 31, 2014		321,453		$	71.04
Granted		122,740		$	75.04
Vested		(113,958	)	$	60.73
Forfeited		(18,508	)	$	82.00
Nonvested balance at December 31, 2015		311,727		$	75.73

Director Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Option Activity

The following is a summary of the stock option activity under the director plan described above for the years ended December 31, 2015, 2014, and 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		345,938		$	45.84
Granted		54,958		$	75.17
Exercised		(80,574	)	$	46.75
Outstanding at December 31, 2013		320,322		$	50.64
Granted		42,000		$	99.52
Exercised		(63,988	)	$	39.08
Outstanding at December 31, 2014		298,334		$	60.01
Granted		—		$	—
Exercised		(77,905	)	$	47.65
Outstanding at December 31, 2015		220,429		$	64.37

Summary of Outstanding and Exercisable Stock Options

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at December 31, 2015:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregate Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregate Intrinsic Value
$29.60 – $36.82		30,000		1.9	$	33.60				30,000	$	33.60
$41.24 – $56.45		71,276		4.3	$	52.34				71,276	$	52.34
$61.89 – $62.48		41,153		6.5	$	62.34				41,153	$	62.34
$75.17 – $99.52		78,000		7.3	$	88.28				78,000	$	88.28
$29.60 – $99.52		220,429		5.4	$	64.37	$	775,000		220,429	$	64.37	$	775,000

Summary of Restricted Stock Award Activity

The following is a summary of the restricted stock award activity under the director plan described above for the years ended December 31, 2015, 2014 and 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		348		$	62.99
Granted		10,536		$	75.65
Vested		(10,500	)	$	75.23
Nonvested balance at December 31, 2013		384		$	75.65
Granted		8,160		$	99.52
Vested		(8,252	)	$	98.41
Nonvested balance at December 31, 2014		292		$	99.52
Granted		20,350		$	78.52
Vested		(18,851	)	$	79.77
Nonvested balance at December 31, 2015		1,791		$	68.73

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Summary of Asset Allocation

As of December 31, 2015 and 2014, these assets were allocated among asset categories as follows:

Asset Category	2015			2014			Current Minimum, Target and Maximum Allocation Policy
U.S. equity securities		50	%		52	%		30% — 50%— 70	%
International equity securities		18	%		18	%		0% — 20%— 30	%
Debt securities		28	%		30	%		15% — 30%— 55	%
Cash and cash equivalents		4	%		—	%		0% — 0%— 5	%
		100	%		100	%

Schedule of Change in Benefit Obligation

The following table presents the change in benefit obligation and plan assets for the Company’s defined benefit plans and postretirement benefit plan (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Change in benefit obligation
Benefit obligation at beginning of year	$	315,075		$	249,960		$	1,637		$	1,529		$	1,264		$	2,307
Service cost		14,683			10,645			—			—			—			—
Interest cost		13,302			12,839			64			73			36			110
Actuarial loss (gain)		(39,474	)		66,640			(30	)		180			(321	)		(1,065	)
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Benefit obligation at end of year	$	297,325		$	315,075		$	1,526		$	1,637		$	891		$	1,264
Accumulated benefit obligation at end of year	$	238,775		$	241,592		$	1,526		$	1,637		$	—		$	—

Weighted-Average Assumption Used to Determine Benefit Obligation and Net Periodic Benefit Cost

Weighted-average assumption used to determine benefit obligation at end of year
Discount rate		4.5	%	4.1	%	4.5	%	4.1	%	4.5	%	4.1	%
Rate of compensation increase	Age-based table			4.25	%	—		—		—		—
Health care cost trend rate
Initial rate		—		—		—		—		6.5	%	7.0	%
Ultimate rate		—		—		—		—		5.0	%	5.0	%
Years to ultimate		—		—		—		—		2019		2019

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate

Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation
Increase	$	—	$	—	$	—	$	—	$	107		$	167
Decrease		—		—		—		—		(93	)		(141	)

Summary of Change in Plan Assets

Change in plan assets
Fair value of plan assets at beginning of year	$	242,275		$	254,523		$	—		$	—		$	—		$	—
Actual return on plan assets		(2,426	)		12,761			—			—			—			—
Employer contribution		10,000			—			145			145			88			88
Gross benefits paid		(6,261	)		(25,009	)		(145	)		(145	)		(88	)		(88	)
Fair value of plan assets at end of year	$	243,588		$	242,275		$	—		$	—		$	—		$	—

Summary of Funded Status at End of Year

The following table presents the funded status and amounts recognized in the Company’s consolidated balance sheet for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2015			2014			2015			2014			2015			2014
Funded status at end of year
Fair value of plan assets	$	243,588		$	242,275		$	—		$	—		$	—		$	—
Benefit obligations		297,325			315,075			1,526			1,637			891			1,264
Funded status and amount recognized at end of year	$	(53,737	)	$	(72,800	)	$	(1,526	)	$	(1,637	)	$	(891	)	$	(1,264	)

Amounts Recognized in the Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—		$	—		$	—		$	—		$	—		$	—
Current liability		—			—			(149	)		(141	)		(68	)		(83	)
Long-term liability		(53,737	)		(72,800	)		(1,377	)		(1,496	)		(823	)		(1,181	)

Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	$	77,940	$	104,795	$	508	$	566	$	(6,319	)	$	(6,787	)
Prior service cost (credit)		—		—		—		—		—			—
Accumulated other compensation income	$	77,940	$	104,795	$	508	$	566	$	(6,319	)	$	(6,787	)

Projected Benefit Obligation in Excess of Plan Assets

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Projected benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	297,325		$	315,075		$	1,526		$	1,637
Fair value of plan assets at end of year			243,588			242,275			—			—

Accumulated Benefit Obligation in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows (in thousands):

	Pension Benefits
	Pension Plan						SERP
	2015			2014			2015			2014
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation at end of year		$	—		$	—		$	1,526		$	1,637
Accumulated benefit obligation at end of year			—			—			1,526			1,637
Fair value of plan assets at end of year			—			—			—			—

Schedule of Employer Contribution

The following tables presents the expected cash flows for the Company’s defined benefit plans and postretirement benefit plan at December 31, 2015 and 2014 (in thousands):

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected employer contributions
First year	$	—	$	8,400	$	152	$	143	$	70	$	84

Expected Benefit Payments

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015		2014
Expected benefit payments (gross)
Year one	$	7,678	$	7,100	$	152	$	143	$	81	$	96
Year two		8,298		7,672		157		151		86		98
Year three		9,013		8,333		154		155		86		103
Year four		9,748		9,080		152		153		86		95
Year five		10,415		9,868		149		150		85		94
Next five years		63,860		62,666		608		621		341		445

Summary of Expected Federal Subsidy

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2015		2014		2015		2014		2015			2014
Expected federal subsidy
Year one	$	—	$	—	$	—	$	—	$	(11	)	$	(11	)
Year two		—		—		—		—		(11	)		(11	)
Year three		—		—		—		—		(11	)		(11	)
Year four		—		—		—		—		(12	)		(12	)
Year five		—		—		—		—		(12	)		(12	)
Next five years		—		—		—		—		(55	)		(55	)

Pension Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company’s defined benefit plans for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Pension Benefits
	Pension Plan									SERP
	2015			2014			2013			2015			2014			2013
Components of net periodic benefit cost
Service cost	$	14,683		$	10,645		$	12,824		$	—		$	—		$	—
Interest cost		13,302			12,839			11,400			64			73			70
Expected return on plan assets		(17,921	)		(18,858	)		(16,127	)		—			—			—
Amortization:
Actuarial loss		7,728			701			8,276			28			16			19
Prior service credit		—			—			—			—			—			—
Net periodic benefit cost		17,792			5,327			16,373			92			89			89
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Current year actuarial loss (gain)		(19,127	)		72,737			(61,759	)		(30	)		180			(138	)
Recognition of actuarial loss		(7,728	)		(701	)		(8,276	)		(28	)		(16	)		(19	)
Recognition of prior service credit		—			—			—			—			—			—
Total recognized in other comprehensive income		(26,855	)		72,036			(70,035	)		(58	)		164			(157	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(9,063	)	$	77,363		$	(53,662	)	$	34		$	253		$	(68	)

Weighted-Average Assumption Used to Determine Benefit Obligation and Net Periodic Benefit Cost

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.1	%	5.0	%	4.1	%	4.1	%	5.0	%	4.1	%
Expected long-term rate of return on plan assets	7.5	%	7.5	%	7.5	%	—		—		—
Rate of compensation increase	4.25	%	4.25	%	4.25	%	—		—		—

Estimated Amounts that will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Pension Benefits
	Pension Plan		SERP
Actuarial loss	$	4,924	$	26
Prior service credit		—		—
	$	4,924	$	26

Other Postretirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other changes in benefit obligations recognized in other comprehensive income for the Company’s postretirement benefit plan for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
	2015			2014			2013
Components of net periodic benefit cost
Service cost	$	—		$	—		$	—
Interest cost		36			110			112
Amortization:
Actuarial gain		(793	)		(649	)		(620	)
Prior service cost		—			—			—
Net periodic benefit cost		(757	)		(539	)		(508	)
Other changes in benefit obligations recognized in other comprehensive income
Current year actuarial gain		(322	)		(1,065	)		(600	)
Recognition of actuarial gain		793			649			620
Recognition of prior service cost		—			—			—
Adjustment for actual Medicare Part D reimbursement		(3	)		(8	)		(5	)
Total recognized in other comprehensive income		468			(424	)		15
Total recognized in net periodic benefit cost and other comprehensive income	$	(289	)	$	(963	)	$	(493	)

Weighted-Average Assumption Used to Determine Benefit Obligation and Net Periodic Benefit Cost

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.1	%	5.0	%	4.1	%
Health care cost trend rate:
Initial rate	7.0	%	7.0	%	7.5	%
Ultimate rate	5.0	%	5.0	%	5.0	%
Years to ultimate	2019		2018		2018

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate

Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost
Increase	$	5		$	7		$	10
Decrease		(4	)		(6	)		(9	)

Estimated Amounts that will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 are as follows (in thousands):

	Other Postretirement Benefits
	Postretirement Welfare Plan
Actuarial gain	$	(745	)
Prior service cost		—
	$	(745	)

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Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Other Comprehensive Income [Abstract]

Schedule of Changes in Other Comprehensive Income

The Company’s changes in other comprehensive income for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015							2014									2013
	Gross Amount		Income Tax (Provision) Benefit			Net Amount		Gross Amount			Income Tax (Provision) Benefit			Net Amount			Gross Amount			Income Tax (Provision) Benefit			Net Amount
Pension and postretirement benefits (a):
Amortization of net actuarial loss	$	6,963	$	(2,667	)	$	4,296	$	68		$	(26	)	$	42		$	7,675		$	(2,942	)	$	4,733
Actuarial gains (losses)		19,482		(7,456	)		12,026		(71,843	)		27,507			(44,336	)		62,503			(23,962	)		38,541
Foreign currency translation adjustments		29		—			29		(35	)		—			(35	)		108			—			108
Change in fair value of derivative instruments (b):
Unrealized gains (losses)		—		—			—		24			(9	)		15			2,851			(996	)		1,855
Reclassified to net earnings		—		—			—		121			(51	)		70			(1,389	)		486			(903	)
Total	$	26,474	$	(10,123	)	$	16,351	$	(71,665	)	$	27,421		$	(44,244	)	$	71,748		$	(27,414	)	$	44,334

(a) Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 8 – Retirement Plans)

(b) Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

The following table presents the components of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts):

	2015			2014			2013
Net earnings attributable to Kirby	$	226,684		$	282,006		$	253,061
Undistributed earnings allocated to restricted shares		(1,345	)		(1,643	)		(1,819	)
Income available to Kirby common stockholders — basic		225,339			280,363			251,242
Undistributed earnings allocated to restricted shares		1,345			1,643			1,819
Undistributed earnings reallocated to restricted shares		(1,343	)		(1,637	)		(1,813	)
Income available to Kirby common stockholders — diluted	$	225,341		$	280,369		$	251,248
Shares outstanding:
Weighted average common stock issued and outstanding		55,056			57,006			56,762
Weighted average unvested restricted stock		(327	)		(332	)		(408	)
Weighted average common stock outstanding — basic		54,729			56,674			56,354
Dilutive effect of stock options		97			193			198
Weighted average common stock outstanding — diluted		54,826			56,867			56,552
Net earnings per share attributable to Kirby common stockholders:
Basic	$	4.12		$	4.95		$	4.46
Diluted	$	4.11		$	4.93		$	4.44

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Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Results (Unaudited) [Abstract]

Schedule of Quarterly Results

The unaudited quarterly results for the year ended December 31, 2015 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Revenues	$	587,673		$	543,156		$	532,565		$	484,138
Costs and expenses		486,136			445,113			437,115			400,178
Gain (loss) on disposition of assets		1,555			91			(400	)		426
Operating income		103,092			98,134			95,050			84,386
Other income (expense)		60			(303	)		22			9
Interest expense		(5,250	)		(4,759	)		(4,449	)		(4,280	)
Earnings before taxes on income		97,902			93,072			90,623			80,115
Provision for taxes on income		(36,491	)		(34,696	)		(33,512	)		(29,043	)
Net earnings		61,411			58,376			57,111			51,072
Less: Net earnings attributable to noncontrolling interests		(333	)		(301	)		(268	)		(384	)
Net earnings attributable to Kirby	$	61,078		$	58,075		$	56,843		$	50,688
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.04		$	1.04		$	0.94
Diluted	$	1.09		$	1.04		$	1.04		$	0.94

The unaudited quarterly results for the year ended December 31, 2014 were as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Revenues	$	589,246		$	628,054		$	680,721		$	668,297
Costs and expenses		482,443			501,556			552,642			554,646
Gain on disposition of assets		51			527			47			156
Operating income		106,854			127,025			128,126			113,807
Other income (expense)		(236	)		123			27			125
Interest expense		(5,618	)		(5,469	)		(5,225	)		(5,149	)
Earnings before taxes on income		101,000			121,679			122,928			108,783
Provision for taxes on income		(37,989	)		(45,768	)		(45,715	)		(40,310	)
Net earnings		63,011			75,911			77,213			68,473
Less: Net earnings attributable to noncontrolling interests		(765	)		(919	)		(496	)		(422	)
Net earnings attributable to Kirby	$	62,246		$	74,992		$	76,717		$	68,051
Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.09		$	1.32		$	1.34		$	1.19
Diluted	$	1.09		$	1.31		$	1.34		$	1.19

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Segment Data (Tables)

12 Months Ended

Dec. 31, 2015

Segment Data [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table sets forth by reportable segment the revenues, profit or loss, total assets, depreciation and amortization, and capital expenditures attributable to the principal activities of the Company for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
Revenues:
Marine transportation	$	1,663,090		$	1,770,684		$	1,713,167
Diesel engine services		484,442			795,634			529,028
	$	2,147,532		$	2,566,318		$	2,242,195
Segment profit (loss):
Marine transportation	$	374,842		$	429,864		$	408,255
Diesel engine services		18,921			60,063			42,767
Other		(32,051	)		(35,537	)		(42,344	)
	$	361,712		$	454,390		$	408,678
Total assets:
Marine transportation	$	3,451,553		$	3,317,696		$	3,046,692
Diesel engine services		637,549			736,129			576,472
Other		67,164			88,084			59,353
	$	4,156,266		$	4,141,909		$	3,682,517
Depreciation and amortization:
Marine transportation	$	175,798		$	154,019		$	149,574
Diesel engine services		12,498			11,463			11,096
Other		3,944			3,830			3,767
	$	192,240		$	169,312		$	164,437
Capital expenditures:
Marine transportation	$	311,862		$	340,315		$	237,964
Diesel engine services		28,907			7,486			4,658
Other		4,706			7,343			10,605
	$	345,475		$	355,144		$	253,227

Schedule of Other Segment Reporting Information

The following table presents the details of “Other” segment profit (loss) for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
General corporate expenses	$	(14,773	)	$	(14,896	)	$	(15,728	)
Interest expense		(18,738	)		(21,461	)		(27,872	)
Gain on disposition of assets		1,672			781			888
Other income (expense)		(212	)		39			368
	$	(32,051	)	$	(35,537	)	$	(42,344	)

The following table presents the details of “Other” total assets as of December 31, 2015, 2014 and 2013 (in thousands):

	2015		2014		2013
General corporate assets	$	65,074	$	85,545	$	57,197
Investment in affiliates		2,090		2,539		2,156
	$	67,164	$	88,084	$	59,353

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Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Limited partnership ownership	50.00%
Accruals for revenues earned included in accounts receivable	$ 90,166,000	$ 143,615,000
Period in which recertification of ocean going vessels occur twice	5 years
Receivables from insurance companies to cover claims in excess included in accounts receivable	$ 77,684,000	92,379,000
Interest expense excludes capitalized interest	3,026,000	639,000	$ 0
Impairment of goodwill	0	0
Gross carrying value of goodwill	604,185,000	608,872,000
Accumulated amortization	15,566,000	15,566,000
Accumulated impairment losses	1,901,000	1,901,000
Net goodwill	586,718,000	591,405,000
Recognized amortization of major maintenance costs	22,126,000	16,409,000	9,029,000
Accrued insurance liabilities	$ 23,737,000	25,416,000	$ 22,971,000
Minimum [Member]
Significant Accounting Policies [Line Items]
Other investments ownership percentage	20.00%
Period of amortization of shipyard costs	30 months
Maximum [Member]
Significant Accounting Policies [Line Items]
Other investments ownership percentage	50.00%
Period of amortization of shipyard costs	60 months
Buildings [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	10 years
Buildings [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	40 years
Other Equipment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	2 years
Other Equipment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	10 years
Marine Transportation Equipment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	5 years
Marine Transportation Equipment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of the individual assets	40 years
Marine Transportation Segment [Member]
Significant Accounting Policies [Line Items]
Net goodwill	$ 381,243,000	381,243,000
Range of term contracts	1 year
Marine Transportation Segment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Range of term contracts	1 year
Marine Transportation Segment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Range of term contracts	3 years
Diesel Engine Services Segment [Member]
Significant Accounting Policies [Line Items]
Net goodwill	$ 205,475,000	$ 210,162,000

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Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Details of inventories [Abstract]
Finished goods	$ 163,501	$ 179,760
Work in process	21,010	12,594
Total inventory, net	$ 184,511	$ 192,354

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Long-Term Debt (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Line of credit, increase in aggregate commitments	$ 300,000,000
Senior Notes	500,000,000
Total debt outstanding, Fair value	768,766,000	$ 705,215,000
Revolving Credit Facility Due November 9, 2015 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 0	116,700,000
Senior Notes Series A Due February 27, 2020 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	2.72%
Credit facility, amount outstanding	$ 150,000,000	150,000,000
Senior Notes Series B Due February 27, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	3.29%
Credit facility, amount outstanding	$ 350,000,000	350,000,000
Term Loan Due July 1, 2016 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 0	$ 100,000,000
Term Loan [Member]
Debt Instrument [Line Items]
Term loan, duration	5 years
Term Loan [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate, variable rate basis	LIBOR
Basis spread on variable rate	1.50%
Term Loan [Member] | Alternate Base Rate [Member]
Debt Instrument [Line Items]
Interest rate, variable rate basis	Alternate Base Rate
Basis spread on variable rate	0.50%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Average borrowing under revolving credit facility	$ 293,451,000
Commitment amount	$ 25,000,000
Commitment fee	0.10%
Weighted average interest rate	1.30%
Revolving Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate, variable rate basis	LIBOR
Basis spread on variable rate	1.00%
Line Of Credit [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 931,000
Line Of Credit [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 5,047,000

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Long-Term Debt, Schedule of Long-Term Debt (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term Debt	$ 778,834,000	$ 716,700,000
Revolving Credit Facility Due April 30, 2020 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 278,834,000	0
Credit facility, expiration date	Apr. 30, 2020
Long term debt, face amount	$ 550,000,000
Revolving Credit Facility Due November 9, 2015 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 0	116,700,000
Credit facility, expiration date	Nov. 09, 2015
Long term debt, face amount	$ 325,000,000
Senior Notes Series A Due February 27, 2020 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 150,000,000	150,000,000
Credit facility, expiration date	Feb. 27, 2020
Long term debt, face amount	$ 150,000,000
Senior Notes Series B Due February 27, 2023 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 350,000,000	350,000,000
Credit facility, expiration date	Feb. 27, 2023
Long term debt, face amount	$ 350,000,000
Credit Line Due June 30, 2017 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 0	0
Credit facility, expiration date	Jun. 30, 2017
Long term debt, face amount	$ 10,000,000
Term Loan Due July 1, 2016 [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding	$ 0	100,000,000
Credit facility, expiration date	Jul. 01, 2016
Long term debt, face amount	$ 540,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long term debt, face amount		$ 325,000,000

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Long-Term Debt, Schedule of Aggregate Payments Due on The Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Long-Term Debt [Abstract]
2016	$ 0
2017	0
2018	0
2019	0
2020	428,834
Thereafter	350,000
Long-term Debt	$ 778,834	$ 716,700

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Taxes on Income, Earnings Before Taxes (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Taxes on Income [Abstract]
Earnings before taxes on income - United States	$ 80,115,000	$ 90,623,000	$ 93,072,000	$ 97,902,000	$ 108,783,000	$ 122,928,000	$ 121,679,000	$ 101,000,000	$ 361,712,000	$ 454,390,000	$ 408,678,000
Federal [Abstract]
Current									64,707,000	81,953,000	41,008,000
Deferred									59,582,000	72,920,000	97,586,000
State and local									9,453,000	14,909,000	13,785,000
Total provision for taxes on income	$ 29,043,000	$ 33,512,000	$ 34,696,000	$ 36,491,000	$ 40,310,000	$ 45,715,000	$ 45,768,000	$ 37,989,000	133,742,000	169,782,000	152,379,000
Tax benefit realized from equity compensation plans									$ 964,000	$ 6,119,000	$ 3,001,000

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Taxes on Income, Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Company's provision for taxes on income varied from the statutory federal income tax rate [Abstract]
United States income tax statutory rate	35.00%	35.00%	35.00%
State and local taxes, net of federal benefit	1.70%	2.20%	2.20%
Other - net	0.30%	0.20%	0.10%
Effective income tax rate	37.00%	37.40%	37.30%

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Taxes on Income, Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Current deferred tax assets [Abstract]
Compensated absences	$ 829,000	$ 854,000
Allowance for doubtful accounts	3,288,000	3,111,000
Insurance accruals	4,234,000	2,858,000
Other	3,372,000	3,739,000
Current deferred tax assets, Total	11,723,000	10,562,000
Deferred tax assets [Abstract]
Postretirement health care benefits	2,501,000	2,795,000
Insurance accruals	3,410,000	3,325,000
Deferred compensation	10,534,000	10,157,000
Unrealized loss on defined benefit plans	25,245,000	34,501,000
Operating loss carryforwards	5,188,000	5,219,000
Other	20,702,000	20,687,000
Valuation allowances	(4,716,000)	(4,704,000)
Deferred tax assets	62,864,000	71,980,000
Deferred tax liabilities [Abstract]
Property	(604,737,000)	(547,388,000)
Deferred state taxes	(53,542,000)	(49,503,000)
Pension benefits	(8,471,000)	(11,198,000)
Goodwill and other intangibles	(44,185,000)	(37,936,000)
Other	(21,737,000)	(21,724,000)
Deferred tax liabilities	(732,672,000)	(667,749,000)
Deferred tax assets (liabilities)	(669,808,000)	$ (595,769,000)
Operating loss carryforwards, net of valuation allowance	$ 472,000
Expiration dates, operating loss carryforwards	Dec. 31, 2030
Unrecognized tax benefits including interest and penalties	$ 2,479,000
Amount that would impact the effective tax rate, if recognized	$ 1,678,000
Minimum [Member] | State and Local Jurisdiction [Member]
Income Tax Examination [Line Items]
Years open to audit under the statute of limitations	2009
Minimum [Member] | Internal Revenue Service (IRS) [Member]
Income Tax Examination [Line Items]
Years open to audit under the statute of limitations	2012
Maximum [Member] | State and Local Jurisdiction [Member]
Income Tax Examination [Line Items]
Years open to audit under the statute of limitations	2014
Maximum [Member] | Internal Revenue Service (IRS) [Member]
Income Tax Examination [Line Items]
Years open to audit under the statute of limitations	2014

XML

Taxes on Income, Reconciliation of Liability for Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits [Roll Forward]
Balance at beginning of year	$ 1,171,000	$ 949,000	$ 1,045,000
Additions based on tax positions related to the current year	339,000	470,000	239,000
Additions for tax positions of prior years	785,000	39,000	114,000
Reductions for tax positions of prior years	(337,000)	(287,000)	(413,000)
Settlements	0	0	(36,000)
Balance at end of year	1,958,000	1,171,000	949,000
Income tax penalties and interest recognized	216,000	40,000	(421,000)
Accrued liabilities for payment of interest and penalties	$ 522,000	$ 306,000	$ 266,000

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Leases, Schedule of Rent Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property Subject To Or Available for Operating Lease [Line Items]
Rental expense	$ 166,542	$ 165,257	$ 156,016
Other Buildings and Equipment [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Rental expense	9,383	9,146	10,298
Tank Barges [Member] | Marine Equipment [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Rental expense	14,092	19,780	20,841
Towing Vessels [Member] | Marine Equipment [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Rental expense	$ 143,067	$ 136,331	$ 124,877
Minimum [Member] | Tank Barges [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Lease agreements expiring terms	1 year
Minimum [Member] | Towing Vessels [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Lease agreements expiring terms	30 days
Maximum [Member] | Tank Barges [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Lease agreements expiring terms	12 years
Maximum [Member] | Towing Vessels [Member]
Property Subject To Or Available for Operating Lease [Line Items]
Lease agreements expiring terms	5 years

XML

Leases, Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Operating Leased Assets [Line Items]
2016	$ 119,529
2017	63,712
2018	35,741
2019	8,548
2020	5,809
Thereafter	13,519
Future minimum lease payments under operating leases	246,858
Marine Equipment [Member] | Tank Barges [Member]
Operating Leased Assets [Line Items]
2016	11,751
2017	10,544
2018	8,843
2019	3,856
2020	2,239
Thereafter	0
Future minimum lease payments under operating leases	37,233
Marine Equipment [Member] | Towing Vessels [Member]
Operating Leased Assets [Line Items]
2016	100,124
2017	46,362
2018	20,732
2019	317
2020	0
Thereafter	0
Future minimum lease payments under operating leases	167,535
Land Buildings and Equipment [Member]
Operating Leased Assets [Line Items]
2016	7,654
2017	6,806
2018	6,166
2019	4,375
2020	3,570
Thereafter	13,519
Future minimum lease payments under operating leases	$ 42,090

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Stock Award Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Award Plans [Abstract]
Compensation cost	$ 11,104,000	$ 11,591,000	$ 11,621,000
Income tax benefit	$ 4,120,000	4,358,000	4,370,000
Stock Award Plan Information [Abstract]
Term of grant	7 years
Vesting period	3 years
Share-based Compensation Plans Combined Disclosure [Abstract]
Intrinsic value of stock options exercised	$ 2,555,000	11,671,000	6,703,000
Tax benefit from stock options exercised	948,000	4,388,000	2,520,000
Intrinsic value of restricted stock vestings	10,270,000	14,847,000	10,993,000
Tax benefit from restricted stock vesting	3,810,000	5,583,000	4,133,000
Fair value of options vested	2,180,000	3,759,000	3,341,000
Fair value of restricted stock vested	$ 10,270,000	$ 14,847,000	$ 10,993,000
Fair value of stock options granted (in dollars per share)	$ 25.18	$ 36.05	$ 25.14
Fair value of stock options granted	$ 2,893,000	$ 4,226,000	$ 4,184,000
Employee Stock Award Plan [Member]
Stock Award Plan Information [Abstract]
Shares available for future grants (in shares)	2,329,238
Options Exercisable [Abstract]
Stock options exercisable (in shares)	239,518	157,140	175,170
Unvested Restricted Stock Award Shares [Roll Forward]
Nonvested balance beginning of period, Unvested Restricted Stock Award Shares (in shares)	321,453	399,278	418,128
Granted, Unvested Restricted Stock Award Shares (in shares)	122,740	97,706	139,971
Vested, Unvested Restricted Stock Award Shares (in shares)	(113,958)	(141,870)	(149,162)
Forfeited, Unvested Restricted Stock Award Shares (in shares)	(18,508)	(33,661)	(9,659)
Nonvested balance end of period, Unvested Restricted Stock Award Shares (in shares)	311,727	321,453	399,278
Weighted Average Grant Date Fair Value Per Share [Abstract]
Nonvested balance end of period, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	$ 71.04	$ 54.92	$ 45.39
Granted, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	75.04	97.46	69.85
Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	60.73	45.64	44.30
Forfeited, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	82.00	63.56	61.20
Nonvested balance end of period, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	75.73	$ 71.04	$ 54.92
Employee Stock Award Plan [Member] | First Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	36.35
Range of Exercise Prices, lower limit (in dollars per share)	$ 31.35
Options Outstanding [Abstract]
Number Outstanding (in shares)	16,910
Weighted Average Remaining Contractual Life	1 year 1 month 6 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 32.82
Options Exercisable [Abstract]
Number Exercisable (in shares)	16,910
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 32.82
Employee Stock Award Plan [Member] | Second Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	$ 46.74
Options Outstanding [Abstract]
Number Outstanding (in shares)	56,629
Weighted Average Remaining Contractual Life	2 years 1 month 6 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 46.74
Options Exercisable [Abstract]
Number Exercisable (in shares)	56,629
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 46.74
Employee Stock Award Plan [Member] | Third Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	74.99
Range of Exercise Prices, lower limit (in dollars per share)	$ 65.28
Options Outstanding [Abstract]
Number Outstanding (in shares)	283,963
Weighted Average Remaining Contractual Life	4 years 7 months 6 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 70.98
Options Exercisable [Abstract]
Number Exercisable (in shares)	141,669
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 67.90
Employee Stock Award Plan [Member] | Fourth Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	96.85
Range of Exercise Prices, lower limit (in dollars per share)	$ 93.64
Options Outstanding [Abstract]
Number Outstanding (in shares)	35,763
Weighted Average Remaining Contractual Life	5 years 1 month 6 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 94.27
Options Exercisable [Abstract]
Number Exercisable (in shares)	11,921
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 94.27
Employee Stock Award Plan [Member] | Fifth Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	114.11
Range of Exercise Prices, lower limit (in dollars per share)	$ 101.46
Options Outstanding [Abstract]
Number Outstanding (in shares)	37,167
Weighted Average Remaining Contractual Life	5 years 2 months 12 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 103.22
Options Exercisable [Abstract]
Number Exercisable (in shares)	12,389
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 103.22
Employee Stock Award Plan [Member] | Full Exercise Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	114.11
Range of Exercise Prices, lower limit (in dollars per share)	$ 31.35
Options Outstanding [Abstract]
Number Outstanding (in shares)	430,432
Weighted Average Remaining Contractual Life	4 years 2 months 12 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 71.01
Aggregate Intrinsic Value, Options Outstanding	$ 668,000
Options Exercisable [Abstract]
Number Exercisable (in shares)	239,518
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 63.56
Aggregate Intrinsic Value, Options Exercisable	$ 668,000
2000 Director Plan [Member]
Stock Award Plan Information [Abstract]
Term of grant	10 years
Vesting period	6 months
Shares available for future grants (in shares)	539,531
Options Exercisable [Abstract]
Stock options exercisable (in shares)	220,429	298,334	320,082
Unvested Restricted Stock Award Shares [Roll Forward]
Nonvested balance beginning of period, Unvested Restricted Stock Award Shares (in shares)	292	384	348
Granted, Unvested Restricted Stock Award Shares (in shares)	20,350	8,160	10,536
Vested, Unvested Restricted Stock Award Shares (in shares)	(18,851)	(8,252)	(10,500)
Nonvested balance end of period, Unvested Restricted Stock Award Shares (in shares)	1,791	292	384
Weighted Average Grant Date Fair Value Per Share [Abstract]
Nonvested balance end of period, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	$ 99.52	$ 75.65	$ 62.99
Granted, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	78.52	99.52	75.65
Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	79.77	98.41	75.23
Nonvested balance end of period, Weighted Average Grant Date Fair Value Per Share (in dollars per share)	68.73	$ 99.52	$ 75.65
2000 Director Plan [Member] | First Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	36.82
Range of Exercise Prices, lower limit (in dollars per share)	$ 29.60
Options Outstanding [Abstract]
Number Outstanding (in shares)	30,000
Weighted Average Remaining Contractual Life	1 year 10 months 24 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 33.60
Options Exercisable [Abstract]
Number Exercisable (in shares)	30,000
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 33.60
2000 Director Plan [Member] | Second Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	56.45
Range of Exercise Prices, lower limit (in dollars per share)	$ 41.24
Options Outstanding [Abstract]
Number Outstanding (in shares)	71,276
Weighted Average Remaining Contractual Life	4 years 3 months 18 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 52.34
Options Exercisable [Abstract]
Number Exercisable (in shares)	71,276
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 52.34
2000 Director Plan [Member] | Third Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	62.48
Range of Exercise Prices, lower limit (in dollars per share)	$ 61.89
Options Outstanding [Abstract]
Number Outstanding (in shares)	41,153
Weighted Average Remaining Contractual Life	6 years 6 months
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 62.34
Options Exercisable [Abstract]
Number Exercisable (in shares)	41,153
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 62.34
2000 Director Plan [Member] | Fourth Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	99.52
Range of Exercise Prices, lower limit (in dollars per share)	$ 75.17
Options Outstanding [Abstract]
Number Outstanding (in shares)	78,000
Weighted Average Remaining Contractual Life	7 years 3 months 18 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 88.28
Options Exercisable [Abstract]
Number Exercisable (in shares)	78,000
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 88.28
2000 Director Plan [Member] | Sixth Price Range [Member]
Outstanding and Exercisable Stock options [Abstract]
Range of Exercise Prices, upper limit (in dollars per share)	99.52
Range of Exercise Prices, lower limit (in dollars per share)	$ 29.60
2000 Director Plan [Member] | Full Exercise Price Range [Member]
Options Outstanding [Abstract]
Number Outstanding (in shares)	220,429
Weighted Average Remaining Contractual Life	5 years 4 months 24 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$ 64.37
Aggregate Intrinsic Value, Options Outstanding	$ 775,000
Options Exercisable [Abstract]
Number Exercisable (in shares)	220,429
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$ 64.37
Aggregate Intrinsic Value, Options Exercisable	$ 775,000
Stock Options [Member]
Share-based Compensation Plans Combined Disclosure [Abstract]
Unrecognized compensation cost related to unvested awards	$ 2,956,000
Weighted average period of recognition in years	1 year 2 months 12 days
Fair Value Assumptions [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Average risk-free interest rate	1.30%	2.00%	1.10%
Stock price volatility	33.00%	33.00%	34.00%
Estimated option term	6 years
Stock Options [Member] | Minimum [Member]
Fair Value Assumptions [Abstract]
Estimated option term		6 years	6 years
Stock Options [Member] | Maximum [Member]
Fair Value Assumptions [Abstract]
Estimated option term		7 years	7 years
Stock Options [Member] | Employee Stock Award Plan [Member]
Outstanding Non-Qualified or Nonincentive Stock Awards [Roll Forward]
Outstanding at Period Start, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	322,956	379,604	351,173
Granted, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	114,894	75,204	111,527
Exercised, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	0	(119,276)	(83,096)
Canceled or expired, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	(7,418)	(12,576)	0
Outstanding at Period End, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	430,432	322,956	379,604
Weighted Average Exercise Price [Abstract]
Outstanding at Period Start, Weighted Average Exercise Price (in dollars per share)	$ 69.95	$ 55.42	$ 45.54
Granted, Weighted Average Exercise Price (in dollars per share)	74.99	98.91	70.94
Exercised, Weighted Average Exercise Price (in dollars per share)	0	42.07	34.51
Canceled or expired, Weighted Average Exercise Price (in dollars per share)	86.28	68.89	0
Outstanding at Period End, Weighted Average Exercise Price (in dollars per share)	$ 71.01	$ 69.95	$ 55.42
Stock Options [Member] | 2000 Director Plan [Member]
Outstanding Non-Qualified or Nonincentive Stock Awards [Roll Forward]
Outstanding at Period Start, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	298,334	320,322	345,938
Granted, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	0	42,000	54,958
Exercised, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	(77,905)	(63,988)	(80,574)
Outstanding at Period End, Outstanding Non-Qualified or Nonincentive Stock Awards (in shares)	220,429	298,334	320,322
Weighted Average Exercise Price [Abstract]
Outstanding at Period Start, Weighted Average Exercise Price (in dollars per share)	$ 60.01	$ 50.64	$ 45.84
Granted, Weighted Average Exercise Price (in dollars per share)	0	99.52	75.17
Exercised, Weighted Average Exercise Price (in dollars per share)	47.65	39.08	46.75
Outstanding at Period End, Weighted Average Exercise Price (in dollars per share)	$ 64.37	$ 60.01	$ 50.64
Restricted Stock [Member]
Share-based Compensation Plans Combined Disclosure [Abstract]
Unrecognized compensation cost related to unvested awards	$ 16,920,000
Weighted average period of recognition in years	2 years 9 months 18 days

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Retirement Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	7.50%	7.50%
Contribution percentage to defined contribution plan	102.00%
Pension plan defined benefit plan cost increase limit percentage	4.00%
Aggregate contributions to the plans	$ 24,077,000	$ 23,356,000	$ 23,158,000
Seafarers Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension contributions	$ 1,202,000	$ 1,290,000
Contribution percentage to defined contribution plan	100.00%
Maximum contribution limit	5.00%

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Retirement Plans, Summary of Asset Allocation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	100.00%	100.00%
U.S. Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	50.00%	52.00%
Target allocations, minimum	30.00%
Target allocations	50.00%
Target allocations, maximum	70.00%
International Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	18.00%	18.00%
Target allocations, minimum	0.00%
Target allocations	20.00%
Target allocations, maximum	30.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	28.00%	30.00%
Target allocations, minimum	15.00%
Target allocations	30.00%
Target allocations, maximum	55.00%
Cash And Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	4.00%	0.00%
Target allocations, minimum	0.00%
Target allocations	0.00%
Target allocations, maximum	5.00%

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Retirement Plans, Schedule of Change in Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	$ 315,075	$ 249,960
Service cost	14,683	10,645	$ 12,824
Interest cost	13,302	12,839	11,400
Actuarial loss (gain)	(39,474)	66,640
Gross benefits paid	(6,261)	(25,009)
Benefit obligation at end of year	297,325	315,075	249,960
Accumulated benefit obligation at end of year	238,775	241,592
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	1,637	1,529
Service cost	0	0	0
Interest cost	64	73	70
Actuarial loss (gain)	(30)	180
Gross benefits paid	(145)	(145)
Benefit obligation at end of year	1,526	1,637	1,529
Accumulated benefit obligation at end of year	1,526	1,637
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	1,264	2,307
Service cost	0	0	0
Interest cost	36	110	112
Actuarial loss (gain)	(321)	(1,065)
Gross benefits paid	(88)	(88)
Benefit obligation at end of year	891	1,264	$ 2,307
Accumulated benefit obligation at end of year	$ 0	$ 0

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Retirement Plans, Weighted-Average Assumption Used to Determine Benefit Obligation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.50%	4.10%
Rate of compensation increase		4.25%
Health care cost trend rate [Abstract]
Initial rate	0.00%	0.00%
Ultimate rate	0.00%	0.00%
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.50%	4.10%
Rate of compensation increase	0.00%	0.00%
Health care cost trend rate [Abstract]
Initial rate	0.00%	0.00%
Ultimate rate	0.00%	0.00%
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.50%	4.10%
Rate of compensation increase	0.00%	0.00%
Health care cost trend rate [Abstract]
Initial rate	6.50%	7.00%
Ultimate rate	5.00%	5.00%
Years to ultimate	2019	2019

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Retirement Plans, Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Increase	$ 0	$ 0
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Decrease	0	0
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Increase	0	0
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Decrease	0	0
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Increase	107	167
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation, Decrease	(93)	(141)
Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost, Increase	5	7	$ 10
Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost, Decrease	$ (4)	$ (6)	$ (9)

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Retirement Plans, Summary of Change in Plan Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	$ 242,275	$ 254,523
Actual return on plan assets	(2,426)	12,761
Employer contribution	10,000	0
Gross benefits paid	(6,261)	(25,009)
Fair value of plan assets at end of year	243,588	242,275
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	0	0
Actual return on plan assets	0	0
Employer contribution	145	145
Gross benefits paid	(145)	(145)
Fair value of plan assets at end of year	0	0
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	0	0
Actual return on plan assets	0	0
Employer contribution	88	88
Gross benefits paid	(88)	(88)
Fair value of plan assets at end of year	$ 0	$ 0

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Retirement Plans, Summary of Funded Status at End of Year (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 243,588	$ 242,275	$ 254,523
Benefit obligations	297,325	315,075	249,960
Funded status and amount recognized at end of year	(53,737)	(72,800)
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0	0
Benefit obligations	1,526	1,637	1,529
Funded status and amount recognized at end of year	(1,526)	(1,637)
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0	0
Benefit obligations	891	1,264	$ 2,307
Funded status and amount recognized at end of year	$ (891)	$ (1,264)

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Retirement Plans, Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Noncurrent asset	$ 0	$ 0
Current liability	0	0
Long-term liability	(53,737)	(72,800)
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Noncurrent asset	0	0
Current liability	(149)	(141)
Long-term liability	(1,377)	(1,496)
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Noncurrent asset	0	0
Current liability	(68)	(83)
Long-term liability	$ (823)	$ (1,181)

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Retirement Plans, Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss (gain)	$ 77,940	$ 104,795
Prior service cost (credit)	0	0
Accumulated other compensation income	77,940	104,795
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss (gain)	508	566
Prior service cost (credit)	0	0
Accumulated other compensation income	508	566
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss (gain)	(6,319)	(6,787)
Prior service cost (credit)	0	0
Accumulated other compensation income	$ (6,319)	$ (6,787)

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Retirement Plans, Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation at end of year	$ 297,325	$ 315,075
Fair value of plan assets at end of year	243,588	242,275
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation at end of year	1,526	1,637
Fair value of plan assets at end of year	$ 0	$ 0

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Retirement Plans, Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation at end of year	$ 0	$ 0
Accumulated benefit obligation at end of year	0	0
Fair value of plan assets at end of year	0	0
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation at end of year	1,526	1,637
Accumulated benefit obligation at end of year	1,526	1,637
Fair value of plan assets at end of year	$ 0	$ 0

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Retirement Plans, Schedule of Employer Contribution (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions	$ 0	$ 8,400
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions	152	143
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions	$ 70	$ 84

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Retirement Plans, Expected Benefit Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	$ 7,678	$ 7,100
Year two	8,298	7,672
Year three	9,013	8,333
Year four	9,748	9,080
Year five	10,415	9,868
Next five years	63,860	62,666
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	152	143
Year two	157	151
Year three	154	155
Year four	152	153
Year five	149	150
Next five years	608	621
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	81	96
Year two	86	98
Year three	86	103
Year four	86	95
Year five	85	94
Next five years	$ 341	$ 445

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Retirement Plans, Summary of Expected Federal Subsidy (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	$ 0	$ 0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Next five years	0	0
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Next five years	0	0
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Year one	(11)	(11)
Year two	(11)	(11)
Year three	(11)	(11)
Year four	(12)	(12)
Year five	(12)	(12)
Next five years	$ (55)	$ (55)

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Retirement Plans, Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Recognition of actuarial loss (gain)	[1]	$ (19,482)	$ 71,843	$ (62,503)
Recognition of prior service credit (cost)	[1]	(6,963)	(68)	(7,675)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		14,683	10,645	12,824
Interest cost		13,302	12,839	11,400
Expected return on plan assets		(17,921)	(18,858)	(16,127)
Actuarial loss (gain)		7,728	701	8,276
Prior service (credit) cost		0	0	0
Net periodic benefit cost		17,792	5,327	16,373
Current year actuarial loss (gain)		(19,127)	72,737	(61,759)
Recognition of actuarial loss (gain)		(7,728)	(701)	(8,276)
Recognition of prior service credit (cost)		0	0	0
Total recognized in other comprehensive income		(26,855)	72,036	(70,035)
Total recognized in net periodic benefit cost and other comprehensive income		(9,063)	77,363	(53,662)
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		0	0	0
Interest cost		64	73	70
Expected return on plan assets		0	0	0
Actuarial loss (gain)		28	16	19
Prior service (credit) cost		0	0	0
Net periodic benefit cost		92	89	89
Current year actuarial loss (gain)		(30)	180	(138)
Recognition of actuarial loss (gain)		(28)	(16)	(19)
Recognition of prior service credit (cost)		0	0	0
Total recognized in other comprehensive income		(58)	164	(157)
Total recognized in net periodic benefit cost and other comprehensive income		34	253	(68)
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		0	0	0
Interest cost		36	110	112
Actuarial loss (gain)		(793)	(649)	(620)
Prior service (credit) cost		0	0	0
Net periodic benefit cost		(757)	(539)	(508)
Current year actuarial loss (gain)		(322)	(1,065)	(600)
Recognition of actuarial loss (gain)		793	649	620
Recognition of prior service credit (cost)		0	0	0
Adjustment for actual Medicare Part D reimbursement		(3)	(8)	(5)
Total recognized in other comprehensive income		468	(424)	15
Total recognized in net periodic benefit cost and other comprehensive income		$ (289)	$ (963)	$ (493)

[1] Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 8 - Retirement Plans)

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Retirement Plans, Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	7.50%	7.50%
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.10%	5.00%	4.10%
Expected long-term rate of return on plan assets	7.50%	7.50%	7.50%
Rate of compensation increase	4.25%	4.25%	4.25%
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.10%	5.00%	4.10%
Expected long-term rate of return on plan assets	0.00%	0.00%	0.00%
Rate of compensation increase	0.00%	0.00%	0.00%
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.10%	5.00%	4.10%
Initial rate	7.00%	7.00%	7.50%
Ultimate rate	5.00%	5.00%	5.00%
Years to ultimate	2019	2018	2018

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Retirement Plans, Estimated Amounts That Will be Amortized from Accumulated Other Comprehensive Income Into Net Periodic Benefit Cost (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial gain (loss)	$ 4,924
Prior service cost (credit)	0
Estimated amounts to be amortized	4,924
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial gain (loss)	26
Prior service cost (credit)	0
Estimated amounts to be amortized	26
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial gain (loss)	(745)
Prior service cost (credit)	0
Estimated amounts to be amortized	$ (745)

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Other Comprehensive Income (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pension and postretirement benefits [Abstract]
Amortization of net actuarial loss, Gross Amount	[1]	$ 6,963	$ 68	$ 7,675
Amortization of net actuarial loss, Income Tax (Provision) Benefit	[1]	(2,667)	(26)	(2,942)
Amortization of net actuarial loss, Net Amount	[1]	4,296	42	4,733
Actuarial gains (losses), Gross Amount	[1]	19,482	(71,843)	62,503
Actuarial gains (losses), Income Tax (Provision) Benefit	[1]	(7,456)	27,507	(23,962)
Actuarial gains (losses), Net Amount	[1]	12,026	(44,336)	38,541
Foreign currency translation adjustments, Gross Amount		29	(35)	108
Foreign currency translation adjustments, Income Tax (Provision) Benefit		0	0	0
Foreign currency translation adjustments, Net Amount		29	(35)	108
Change in fair value of derivative instruments [Abstract]
Unrealized gains (losses), Gross Amount	[2]	0	24	2,851
Unrealized gains (losses), Income Tax (Provision) Benefit	[2]	0	(9)	(996)
Unrealized gains (losses), Net Amount	[2]	0	15	1,855
Reclassified to net earnings, Gross Amount	[2]	0	121	(1,389)
Reclassified to net earnings, Income Tax (Provision) Benefit	[2]	0	(51)	486
Reclassified to net earnings, Net Amount	[2]	0	70	(903)
Total other comprehensive income (loss), Gross Amount	[2]	26,474	(71,665)	71,748
Total other comprehensive income (loss), Income Tax (Provision) Benefit	[2]	(10,123)	27,421	(27,414)
Total other comprehensive income (loss), net of taxes	[2]	$ 16,351	$ (44,244)	$ 44,334

[1] Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 8 - Retirement Plans)

[2] Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net earnings attributable to Kirby	$ 50,688	$ 56,843	$ 58,075	$ 61,078	$ 68,051	$ 76,717	$ 74,992	$ 62,246	$ 226,684	$ 282,006	$ 253,061
Undistributed earnings allocated to restricted shares									(1,345)	(1,643)	(1,819)
Income available to Kirby common stockholders - basic									225,339	280,363	251,242
Undistributed earnings allocated to restricted shares									1,345	1,643	1,819
Undistributed earnings reallocated to restricted shares									(1,343)	(1,637)	(1,813)
Income available to Kirby common stockholders - diluted									$ 225,341	$ 280,369	$ 251,248
Shares outstanding [Abstract]
Weighted average common stock issued and outstanding (in shares)									55,056	57,006	56,762
Weighted average unvested restricted stock (in shares)									(327)	(332)	(408)
Weighted average common stock outstanding - basic (in shares)									54,729	56,674	56,354
Dilutive effect of stock options (in shares)									97	193	198
Weighted average common stock outstanding - diluted (in shares)									54,826	56,867	56,552
Net earnings per share attributable to Kirby common stockholders [Abstract]
Basic (in dollars per share)	$ 0.94	$ 1.04	$ 1.04	$ 1.09	$ 1.19	$ 1.34	$ 1.32	$ 1.09	$ 4.12	$ 4.95	$ 4.46
Diluted (in dollars per share)	$ 0.94	$ 1.04	$ 1.04	$ 1.09	$ 1.19	$ 1.34	$ 1.31	$ 1.09	$ 4.11	$ 4.93	$ 4.44
Antidilutive securities excluded from computation of earnings per share (in shares)									227,000	75,000	2,000

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Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Results (Unaudited) [Abstract]
Revenues	$ 484,138	$ 532,565	$ 543,156	$ 587,673	$ 668,297	$ 680,721	$ 628,054	$ 589,246	$ 2,147,532	$ 2,566,318	$ 2,242,195
Costs and expenses	400,178	437,115	445,113	486,136	554,646	552,642	501,556	482,443	1,766,870	2,090,506	1,806,013
Gain (loss) on disposition of assets	426	(400)	91	1,555	156	47	527	51	1,672	781	888
Operating income	84,386	95,050	98,134	103,092	113,807	128,126	127,025	106,854	380,662	475,812	436,182
Other income (expense)	9	22	(303)	60	125	27	123	(236)	(663)	(345)	20
Interest expense	(4,280)	(4,449)	(4,759)	(5,250)	(5,149)	(5,225)	(5,469)	(5,618)	(18,738)	(21,461)	(27,872)
Earnings before taxes on income	80,115	90,623	93,072	97,902	108,783	122,928	121,679	101,000	361,712	454,390	408,678
Provision for taxes on income	(29,043)	(33,512)	(34,696)	(36,491)	(40,310)	(45,715)	(45,768)	(37,989)	(133,742)	(169,782)	(152,379)
Net earnings	51,072	57,111	58,376	61,411	68,473	77,213	75,911	63,011	227,970	284,608	256,299
Less: Net earnings attributable to noncontrolling interests	(384)	(268)	(301)	(333)	(422)	(496)	(919)	(765)	(1,286)	(2,602)	(3,238)
Net earnings attributable to Kirby	$ 50,688	$ 56,843	$ 58,075	$ 61,078	$ 68,051	$ 76,717	$ 74,992	$ 62,246	$ 226,684	$ 282,006	$ 253,061
Net earnings per share attributable to Kirby common stockholders [Abstract]
Basic (in dollars per share)	$ 0.94	$ 1.04	$ 1.04	$ 1.09	$ 1.19	$ 1.34	$ 1.32	$ 1.09	$ 4.12	$ 4.95	$ 4.46
Diluted (in dollars per share)	$ 0.94	$ 1.04	$ 1.04	$ 1.09	$ 1.19	$ 1.34	$ 1.31	$ 1.09	$ 4.11	$ 4.93	$ 4.44

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Contingencies and Commitments (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) PotentiallyResponsibleParty Individual Spill Segment	Dec. 31, 2014 Segment	Dec. 31, 2013 Segment
Certain Significant Risks and Uncertainties [Abstract]
Customer relationship period	40 years
Number of single customers accounting more than 10% of segment revenue | Segment	0	0	0
Percentage of customers revenue	10.00%	10.00%	10.00%
Segment operates authorized distributors | Segment	17
Diesel engine services segment's relationship	50 years
Guarantor Obligations [Line Items]
Issued guaranties | $	$ 19,968,000
Guarantor Obligations, Term	All of these instruments have an expiration date within four years.
Performance Bonds [Member]
Guarantor Obligations [Line Items]
Issued guaranties | $	$ 13,669,000
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Issued guaranties | $	$ 6,299,000
Gulfco Marine Superfund Site [Member]
Site Contingency [Line Items]
Number of other companies also named as Potentially Responsible Parties ("PRPs")	3
Number of companies named as Potentially Responsible Parties ("PRPs")	4
EPA incurred cleanup expense | $	$ 9,943,000
EPA oversight costs | $	$ 2,258,000
Number of defendants seeking contribution and indemnity under CERCLA | Individual	21
Portland Harbor Superfund Site [Member]
Site Contingency [Line Items]
Number of other companies also named as Potentially Responsible Parties ("PRPs")	250
Number of spills | Spill	4
Palmer Barge Line Superfund Site [Member]
Site Contingency [Line Items]
Number of other companies also named as Potentially Responsible Parties ("PRPs")	45
Number of other companies also in an investigation and feasibility study agreement with EPA	3
Number of new companies in an agreement with the EPA	5
Number of Potentially Responsible Parties notified by EPA of intent to recover costs	30
EPA notification intent to recover costs incurred | $	$ 2,949,000
Marine Transportation's [Member]
Certain Significant Risks and Uncertainties [Abstract]
Percentage of inland revenue	80.00%
Percentage of costal revenue	80.00%
Number of single customers accounting more than 10% of segment revenue | Segment	0	0	0
Marine Transportation's [Member] | Minimum [Member]
Certain Significant Risks and Uncertainties [Abstract]
Range of renewal options under term contracts	1 year
Marine Transportation's [Member] | Maximum [Member]
Certain Significant Risks and Uncertainties [Abstract]
Range of renewal options under term contracts	3 years

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Segment Data (Details)	3 Months Ended								12 Months Ended
	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) Segment	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Segment Data [Abstract]
Number of Reportable Segments | Segment									2
Revenues [Abstract]
Marine transportation									$ 1,663,090,000	$ 1,770,684,000	$ 1,713,167,000
Diesel engine services									484,442,000	795,634,000	529,028,000
Total revenues	$ 484,138,000	$ 532,565,000	$ 543,156,000	$ 587,673,000	$ 668,297,000	$ 680,721,000	$ 628,054,000	$ 589,246,000	2,147,532,000	2,566,318,000	2,242,195,000
Segment profit (loss)	80,115,000	90,623,000	93,072,000	97,902,000	108,783,000	122,928,000	121,679,000	101,000,000	361,712,000	454,390,000	408,678,000
Total assets	4,156,266,000				4,141,909,000				4,156,266,000	4,141,909,000	3,682,517,000
Depreciation and amortization									192,240,000	169,312,000	164,437,000
Capital expenditures									345,475,000	355,144,000	253,227,000
Other segment disclosures [Abstract]
Interest expense	(4,280,000)	(4,449,000)	(4,759,000)	(5,250,000)	(5,149,000)	(5,225,000)	(5,469,000)	(5,618,000)	(18,738,000)	(21,461,000)	(27,872,000)
Gain on disposition of assets	(426,000)	400,000	(91,000)	(1,555,000)	(156,000)	(47,000)	(527,000)	(51,000)	(1,672,000)	(781,000)	(888,000)
Other income (expense)	9,000	$ 22,000	$ (303,000)	$ 60,000	125,000	$ 27,000	$ 123,000	$ (236,000)	(663,000)	(345,000)	20,000
Details of "Other" total assets [Abstract]
Investment in affiliates	2,090,000				2,539,000				2,090,000	2,539,000
Total assets	4,156,266,000				4,141,909,000				4,156,266,000	4,141,909,000	3,682,517,000
Reporting Segments [Member]
Revenues [Abstract]
Marine transportation									1,663,090,000	1,770,684,000	1,713,167,000
Diesel engine services									484,442,000	795,634,000	529,028,000
Total revenues									2,147,532,000	2,566,318,000	2,242,195,000
Segment profit (loss)									361,712,000	454,390,000	408,678,000
Depreciation and amortization									192,240,000	169,312,000	164,437,000
Capital expenditures									345,475,000	355,144,000	253,227,000
Marine Transportation [Member] | Reporting Segments [Member]
Revenues [Abstract]
Segment profit (loss)									374,842,000	429,864,000	408,255,000
Total assets	3,451,553,000				3,317,696,000				3,451,553,000	3,317,696,000	3,046,692,000
Depreciation and amortization									175,798,000	154,019,000	149,574,000
Capital expenditures									311,862,000	340,315,000	237,964,000
Details of "Other" total assets [Abstract]
Total assets	3,451,553,000				3,317,696,000				3,451,553,000	3,317,696,000	3,046,692,000
Marine Transportation [Member] | Intersegment Eliminations [Member]
Revenues [Abstract]
Total revenues									26,203,000	25,769,000	27,669,000
Segment profit (loss)									2,620,000	2,577,000	2,767,000
Diesel Engine Services [Member] | Reporting Segments [Member]
Revenues [Abstract]
Segment profit (loss)									18,921,000	60,063,000	42,767,000
Total assets	637,549,000				736,129,000				637,549,000	736,129,000	576,472,000
Depreciation and amortization									12,498,000	11,463,000	11,096,000
Capital expenditures									28,907,000	7,486,000	4,658,000
Details of "Other" total assets [Abstract]
Total assets	637,549,000				736,129,000				637,549,000	736,129,000	576,472,000
Other [Member]
Revenues [Abstract]
Total assets	67,164,000				88,084,000				67,164,000	88,084,000	59,353,000
Other segment disclosures [Abstract]
General corporate expenses									(14,773,000)	(14,896,000)	(15,728,000)
Interest expense									(18,738,000)	(21,461,000)	(27,872,000)
Gain on disposition of assets									1,672,000	781,000	888,000
Other income (expense)									(212,000)	39,000	368,000
Profit (loss) from other segment									(32,051,000)	(35,537,000)	(42,344,000)
Details of "Other" total assets [Abstract]
General corporate assets	65,074,000				85,545,000				65,074,000	85,545,000	57,197,000
Investment in affiliates	2,090,000				2,539,000				2,090,000	2,539,000	2,156,000
Total assets	67,164,000				88,084,000				67,164,000	88,084,000	59,353,000
Other [Member] | Reporting Segments [Member]
Revenues [Abstract]
Segment profit (loss)									(32,051,000)	(35,537,000)	(42,344,000)
Total assets	67,164,000				88,084,000				67,164,000	88,084,000	59,353,000
Depreciation and amortization									3,944,000	3,830,000	3,767,000
Capital expenditures									4,706,000	7,343,000	10,605,000
Details of "Other" total assets [Abstract]
Total assets	$ 67,164,000				$ 88,084,000				$ 67,164,000	$ 88,084,000	$ 59,353,000

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Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Richard J. Alario [Member]
Related Party Transaction [Line Items]
Oilfield service equipment	$ 572,000	$ 1,232,000	$ 1,973,000
Hollywood Camp [Member]
Related Party Transaction [Line Items]
Ownership percentage	50.00%
Facility expenses	$ 1,236,000	1,634,000	1,112,000
Share of facility expenses	2,830,000	2,303,000	2,044,000
Amy D. Husted [Member]
Related Party Transaction [Line Items]
Legal services	$ 596,000	1,184,000	851,000
Bolivar [Member]
Related Party Transaction [Line Items]
Ownership percentage	50.00%
Share of facility expenses	$ 895,000	$ 561,000	$ 703,000