☒
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Nevada
|
74-1884980
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
55 Waugh Drive, Suite 1000
|
||
Houston, TX
|
77007
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Item 1.
|
Financial Statements
|
September 30,
2018
|
December 31,
2017
|
|||||||
($ in thousands)
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
3,617
|
$
|
20,102
|
||||
Accounts receivable:
|
||||||||
Trade – less allowance for doubtful accounts
|
400,870
|
452,222
|
||||||
Other
|
111,221
|
106,231
|
||||||
Inventories – net
|
453,173
|
315,729
|
||||||
Prepaid expenses and other current assets
|
85,639
|
62,798
|
||||||
Total current assets
|
1,054,520
|
957,082
|
||||||
Property and equipment
|
5,056,335
|
4,360,882
|
||||||
Less accumulated depreciation
|
(1,494,835
|
)
|
(1,401,617
|
)
|
||||
Property and equipment – net
|
3,561,500
|
2,959,265
|
||||||
Goodwill
|
960,006
|
935,135
|
||||||
Other intangibles – net
|
228,958
|
232,808
|
||||||
Other assets
|
49,348
|
43,137
|
||||||
Total assets
|
$
|
5,854,332
|
$
|
5,127,427
|
September 30,
2018
|
December 31,
2017
|
|||||||
($ in thousands)
|
||||||||
Current liabilities:
|
||||||||
Bank notes payable
|
$
|
508
|
$
|
3
|
||||
Income taxes payable
|
3,765
|
191
|
||||||
Accounts payable
|
250,681
|
222,005
|
||||||
Accrued liabilities
|
237,129
|
209,760
|
||||||
Deferred revenues
|
75,843
|
48,347
|
||||||
Total current liabilities
|
567,926
|
480,306
|
||||||
Long-term debt – less current portion
|
1,399,423
|
992,403
|
||||||
Deferred income taxes
|
544,882
|
468,451
|
||||||
Other long-term liabilities
|
108,953
|
72,044
|
||||||
Total long-term liabilities
|
2,053,258
|
1,532,898
|
||||||
Contingencies and commitments
|
—
|
—
|
||||||
Equity:
|
||||||||
Kirby stockholders’ equity:
|
||||||||
Common stock, $.10 par value per share. Authorized 120,000,000 shares, issued 65,472,000 shares
|
6,547
|
6,547
|
||||||
Additional paid-in capital
|
820,805
|
802,961
|
||||||
Accumulated other comprehensive income – net
|
(39,544
|
)
|
(32,405
|
)
|
||||
Retained earnings
|
2,748,029
|
2,646,937
|
||||||
Treasury stock – at cost, 5,595,000 shares at September 30, 2018 and 5,783,000 at December 31, 2017
|
(305,926
|
)
|
(313,220
|
)
|
||||
Total Kirby stockholders’ equity
|
3,229,911
|
3,110,820
|
||||||
Noncontrolling interests
|
3,237
|
3,403
|
||||||
Total equity
|
3,233,148
|
3,114,223
|
||||||
Total liabilities and equity
|
$
|
5,854,332
|
$
|
5,127,427
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
($ in thousands, except per share amounts)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Marine transportation
|
$
|
382,040
|
$
|
318,810
|
$
|
1,100,606
|
$
|
993,727
|
||||||||
Distribution and services
|
322,805
|
222,464
|
1,148,598
|
512,580
|
||||||||||||
Total revenues
|
704,845
|
541,274
|
2,249,204
|
1,506,307
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Costs of sales and operating expenses
|
498,421
|
378,750
|
1,640,366
|
1,048,299
|
||||||||||||
Selling, general and administrative
|
70,032
|
51,712
|
239,416
|
144,404
|
||||||||||||
Taxes, other than on income
|
10,523
|
6,518
|
29,610
|
19,511
|
||||||||||||
Depreciation and amortization
|
57,930
|
51,206
|
167,640
|
147,669
|
||||||||||||
Loss (gain) on disposition of assets
|
(18
|
)
|
159
|
(2,358
|
)
|
199
|
||||||||||
Total costs and expenses
|
636,888
|
488,345
|
2,074,674
|
1,360,082
|
||||||||||||
Operating income
|
67,957
|
52,929
|
174,530
|
146,225
|
||||||||||||
Other income (expense)
|
1,454
|
320
|
4,586
|
(41
|
)
|
|||||||||||
Interest expense
|
(12,345
|
)
|
(5,388
|
)
|
(34,665
|
)
|
(14,310
|
)
|
||||||||
Earnings before taxes on income
|
57,066
|
47,861
|
144,451
|
131,874
|
||||||||||||
Provision for taxes on income
|
(15,116
|
)
|
(19,072
|
)
|
(41,042
|
)
|
(49,468
|
)
|
||||||||
Net earnings
|
41,950
|
28,789
|
103,409
|
82,406
|
||||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(134
|
)
|
(182
|
)
|
(520
|
)
|
(538
|
)
|
||||||||
Net earnings attributable to Kirby
|
$
|
41,816
|
$
|
28,607
|
$
|
102,889
|
$
|
81,868
|
||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.70
|
$
|
0.52
|
$
|
1.72
|
$
|
1.51
|
||||||||
Diluted
|
$
|
0.70
|
$
|
0.52
|
$
|
1.72
|
$
|
1.50
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
Net earnings
|
$
|
41,950
|
$
|
28,789
|
$
|
103,409
|
$
|
82,406
|
||||||||
Other comprehensive income (loss), net of taxes:
|
||||||||||||||||
Pension and postretirement benefits
|
438
|
507
|
855
|
15,393
|
||||||||||||
Foreign currency translation adjustments
|
(60
|
)
|
(164
|
)
|
(69
|
)
|
(164
|
)
|
||||||||
Reclassification to retained earnings of stranded tax effects from tax reform
|
—
|
—
|
(7,925
|
)
|
—
|
|||||||||||
Total other comprehensive income (loss), net of taxes
|
378
|
343
|
(7,139
|
)
|
15,229
|
|||||||||||
Total comprehensive income, net of taxes
|
42,328
|
29,132
|
96,270
|
97,635
|
||||||||||||
Net earnings attributable to noncontrolling interests
|
(134
|
)
|
(182
|
)
|
(520
|
)
|
(538
|
)
|
||||||||
Comprehensive income attributable to Kirby
|
$
|
42,194
|
$
|
28,950
|
$
|
95,750
|
$
|
97,097
|
Nine months ended
September 30,
|
||||||||
2018
|
2017
|
|||||||
($ in thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
103,409
|
$
|
82,406
|
||||
Adjustments to reconcile net earnings to net cash provided by operations:
|
||||||||
Depreciation and amortization
|
167,640
|
147,669
|
||||||
Provision for deferred income taxes
|
36,838
|
32,783
|
||||||
Amortization of unearned share-based compensation
|
16,649
|
8,991
|
||||||
Amortization of major maintenance costs
|
15,600
|
15,232
|
||||||
Amortization of debt issuance costs
|
898
|
786
|
||||||
Other
|
(2,023
|
)
|
180
|
|||||
Decrease in cash flows resulting from changes in operating assets and liabilities, net
|
(66,707
|
)
|
(28,592
|
)
|
||||
Net cash provided by operating activities
|
272,304
|
259,455
|
||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(231,752
|
)
|
(133,437
|
)
|
||||
Acquisitions of businesses and marine equipment, net of cash acquired
|
(499,227
|
)
|
(451,219
|
)
|
||||
Proceeds from disposition of assets
|
27,806
|
29,743
|
||||||
Net cash used in investing activities
|
(703,173
|
)
|
(554,913
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings (payments) on bank credit facilities
|
(88,392
|
)
|
298,424
|
|||||
Borrowings (payments) on long-term debt
|
499,295
|
(1,065
|
)
|
|||||
Payments of debt issue costs
|
(4,276
|
)
|
(1,243
|
)
|
||||
Proceeds from exercise of stock options
|
13,264
|
2,076
|
||||||
Payments related to tax withholding for share-based compensation
|
(4,821
|
)
|
(2,899
|
)
|
||||
Other
|
(686
|
)
|
(643
|
)
|
||||
Net cash provided by financing activities
|
414,384
|
294,650
|
||||||
Decrease in cash and cash equivalents
|
(16,485
|
)
|
(808
|
)
|
||||
Cash and cash equivalents, beginning of year
|
20,102
|
5,634
|
||||||
Cash and cash equivalents, end of period
|
$
|
3,617
|
$
|
4,826
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period:
|
||||||||
Interest paid
|
$
|
37,175
|
$
|
18,390
|
||||
Income taxes
|
$
|
495
|
$
|
19,388
|
||||
Capital expenditures included in accounts payable
|
$
|
(5,554
|
)
|
$
|
8,917
|
|||
Non-cash investing activity:
|
||||||||
Stock issued in acquisition
|
$
|
—
|
$
|
366,554
|
||||
Cash acquired in acquisition
|
$
|
2,313
|
$
|
98
|
||||
Debt assumed in acquisition
|
$
|
—
|
$
|
13,724
|
(1)
|
BASIS FOR PREPARATION OF THE CONDENSED FINANCIAL STATEMENTS
|
(2)
|
ACCOUNTING STANDARDS ADOPTIONS
|
Three months ended September 30, 2018
|
||||||||||||
As Reported
|
Balances
without
Adoption of
ASC 606
|
Effect of
Change
|
||||||||||
Statements of earnings:
|
||||||||||||
Distribution and services revenues
|
$
|
322,805
|
$
|
349,805
|
$
|
(27,000
|
)
|
|||||
Costs of sales and operating expenses
|
$
|
498,421
|
$
|
520,721
|
$
|
(22,300
|
)
|
|||||
Operating income
|
$
|
67,957
|
$
|
72,657
|
$
|
(4,700
|
)
|
|||||
Earnings before taxes on income
|
$
|
57,066
|
$
|
61,766
|
$
|
(4,700
|
)
|
|||||
Provision for taxes on income
|
$
|
(15,116
|
)
|
$
|
(16,282
|
)
|
$
|
1,166
|
||||
Net earnings attributable to Kirby
|
$
|
41,816
|
$
|
45,350
|
$
|
(3,534
|
)
|
|||||
Statements of comprehensive income:
|
||||||||||||
Net earnings
|
$
|
41,950
|
$
|
45,484
|
$
|
(3,534
|
)
|
|||||
Comprehensive income attributable to Kirby
|
$
|
42,194
|
$
|
45,728
|
$
|
(3,534
|
)
|
Nine months ended September 30, 2018
|
||||||||||||
As Reported
|
Balances
without
Adoption of
ASC 606
|
Effect of
Change
|
||||||||||
Statements of earnings:
|
||||||||||||
Distribution and services revenues
|
$
|
1,148,598
|
$
|
1,154,398
|
$
|
(5,800
|
)
|
|||||
Costs of sales and operating expenses
|
$
|
1,640,366
|
$
|
1,645,166
|
$
|
(4,800
|
)
|
|||||
Operating income
|
$
|
174,530
|
$
|
175,530
|
$
|
(1,000
|
)
|
|||||
Earnings before taxes on income
|
$
|
144,451
|
$
|
145,451
|
$
|
(1,000
|
)
|
|||||
Provision for taxes on income
|
$
|
(41,042
|
)
|
$
|
(41,295
|
)
|
$
|
253
|
||||
Net earnings attributable to Kirby
|
$
|
102,889
|
$
|
103,636
|
$
|
(747
|
)
|
|||||
Statements of comprehensive income:
|
||||||||||||
Net earnings
|
$
|
103,409
|
$
|
104,156
|
$
|
(747
|
)
|
|||||
Comprehensive income attributable to Kirby
|
$
|
95,750
|
$
|
96,497
|
$
|
(747
|
)
|
|||||
Statements of cash flows:
|
||||||||||||
Net earnings
|
$
|
103,409
|
$
|
104,156
|
$
|
(747
|
)
|
|||||
Provision for deferred income taxes
|
$
|
36,838
|
$
|
36,585
|
$
|
253
|
||||||
Decrease in cash flows resulting from changes in operating assets and liabilities, net
|
$
|
(66,707
|
)
|
$
|
(67,201
|
)
|
$
|
494
|
September 30, 2018
|
||||||||||||
As Reported
|
Balances
without
Adoption of
ASC 606
|
Effect of
Change
|
||||||||||
Balance sheets:
|
||||||||||||
Trade receivables
|
$
|
400,870
|
$
|
466,599
|
$
|
(65,729
|
)
|
|||||
Inventories – net
|
$
|
453,173
|
$
|
395,773
|
$
|
57,400
|
||||||
Total assets
|
$
|
5,854,332
|
$
|
5,862,661
|
$
|
(8,329
|
)
|
|||||
Deferred revenues
|
$
|
75,843
|
$
|
70,372
|
$
|
5,471
|
||||||
Deferred income taxes
|
$
|
544,882
|
$
|
548,235
|
$
|
(3,353
|
)
|
|||||
Retained earnings
|
$
|
2,748,029
|
$
|
2,758,476
|
$
|
(10,447
|
)
|
|||||
Total liabilities and equity
|
$
|
5,854,332
|
$
|
5,862,661
|
$
|
(8,329
|
)
|
(3)
|
REVENUES
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Marine transportation segment:
|
||||||||||||||||
Inland transportation
|
$
|
288,573
|
$
|
220,177
|
$
|
827,848
|
$
|
681,879
|
||||||||
Coastal transportation
|
93,467
|
98,633
|
272,758
|
311,848
|
||||||||||||
$
|
382,040
|
$
|
318,810
|
$
|
1,100,606
|
$
|
993,727
|
|||||||||
Distribution and services segment:
|
||||||||||||||||
Oil and gas
|
$
|
201,475
|
$
|
159,492
|
$
|
780,825
|
$
|
350,295
|
||||||||
Commercial and industrial
|
121,330
|
62,972
|
367,773
|
162,285
|
||||||||||||
$
|
322,805
|
$
|
222,464
|
$
|
1,148,598
|
$
|
512,580
|
(4)
|
ACQUISITIONS
|
Assets:
|
||||
Cash
|
$
|
2,313
|
||
Accounts receivable
|
27,527
|
|||
Prepaid expenses and other current assets
|
5,323
|
|||
Property and equipment
|
497,951
|
|||
Goodwill
|
8,134
|
|||
Other assets
|
31
|
|||
Total assets
|
$
|
541,279
|
Liabilities:
|
||||
Accounts payable
|
17,012
|
|||
Accrued liabilities
|
14,127
|
|||
Deferred income taxes
|
42,392
|
|||
Other long-term liabilities
|
45,826
|
|||
Total liabilities
|
$
|
119,357
|
||
Net assets acquired
|
$
|
421,922
|
(5) |
INVENTORIES
|
September 30,
2018
|
December 31,
2017
|
|||||||
Finished goods
|
$
|
336,703
|
$
|
242,333
|
||||
Work in process
|
116,470
|
73,396
|
||||||
$
|
453,173
|
$
|
315,729
|
(6) |
FAIR VALUE MEASUREMENTS
|
(7) |
LONG-TERM DEBT
|
(8) |
STOCK AWARD PLANS
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Compensation cost
|
$
|
3,098
|
$
|
3,067
|
$
|
16,649
|
$
|
8,991
|
||||||||
Income tax benefit
|
$
|
709
|
$
|
1,234
|
$
|
4,747
|
$
|
3,386
|
Outstanding Non-
Qualified or
Nonincentive Stock
Awards
|
Weighted Average
Exercise Price
|
|||||||
Outstanding at December 31, 2017
|
654,655
|
$
|
66.45
|
|||||
Granted
|
115,797
|
$
|
75.50
|
|||||
Exercised
|
(283,886
|
)
|
$
|
67.71
|
||||
Forfeited
|
(21,864
|
)
|
$
|
102.42
|
||||
Outstanding at September 30, 2018
|
464,702
|
$
|
69.85
|
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
|
||||||||||||||||
$51.23
|
90,975
|
4.3
|
$
|
51.23
|
57,438
|
$
|
51.23
|
||||||||||||||||
$64.65 - $68.50
|
126,260
|
5.0
|
$
|
67.23
|
41,116
|
$
|
67.40
|
||||||||||||||||
$70.65 - $75.50
|
207,156
|
4.7
|
$
|
74.56
|
91,359
|
$
|
73.36
|
||||||||||||||||
$93.64 - $101.46
|
40,311
|
2.4
|
$
|
95.90
|
40,311
|
$
|
95.90
|
||||||||||||||||
$51.23 - $101.46
|
464,702
|
4.5
|
$
|
69.85
|
$6,312,000
|
230,224
|
$
|
70.72
|
$3,204,000
|
Unvested
Restricted Stock
Award Shares
|
Weighted
Average Grant
Date Fair Value
Per Share
|
|||||||
Nonvested balance at December 31, 2017
|
364,121
|
$
|
65.84
|
|||||
Vested
|
(144,240
|
)
|
$
|
72.66
|
||||
Forfeited
|
(3,949
|
)
|
$
|
64.68
|
||||
Nonvested balance at September 30, 2018
|
215,932
|
$
|
64.73
|
Unvested RSUs
|
Weighted
Average Grant
Date Fair Value
Per Unit
|
|||||||
Nonvested balance at December 31, 2017
|
—
|
$
|
—
|
|||||
Granted
|
143,890
|
$
|
75.59
|
|||||
Forfeited
|
(2,105
|
)
|
$
|
75.50
|
||||
Nonvested balance at September 30, 2018
|
141,785
|
$
|
75.59
|
Outstanding
Non-Qualified
or Nonincentive
Stock Options
|
Weighted
Average
Exercise Price
|
|||||||
Outstanding at December 31, 2017
|
157,617
|
$
|
67.54
|
|||||
Granted
|
2,640
|
$
|
85.30
|
|||||
Exercised
|
(29,153
|
)
|
$
|
57.47
|
||||
Outstanding at September 30, 2018
|
131,104
|
$
|
70.14
|
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
|
6,000
|
0.6
|
$
|
29.60
|
6,000
|
$
|
29.60
|
||||||||||||||||
$41.24 – $56.45
|
31,276
|
2.2
|
$
|
50.61
|
31,276
|
$
|
50.61
|
||||||||||||||||
$61.89 – $62.48
|
28,000
|
3.8
|
$
|
62.27
|
28,000
|
$
|
62.27
|
||||||||||||||||
$70.65 – $99.52
|
65,828
|
5.4
|
$
|
86.45
|
64,508
|
$
|
86.48
|
||||||||||||||||
$29.60 – $99.52
|
131,104
|
4.1
|
$
|
70.14
|
$2,114,000
|
129,784
|
$
|
69.98
|
$2,114,000
|
Unvested
Restricted
Stock Award
Shares
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
|||||||
Nonvested balance at December 31, 2017
|
319
|
$
|
70.65
|
|||||
Granted
|
21,373
|
$
|
85.70
|
|||||
Vested
|
(847
|
)
|
$
|
79.78
|
||||
Nonvested balance at September 30, 2018
|
20,845
|
$
|
85.71
|
Nine months ended
September 30,
|
||||||||
2018
|
2017
|
|||||||
Dividend yield
|
None
|
None
|
||||||
Average risk-free interest rate
|
2.7
|
%
|
2.0
|
%
|
||||
Stock price volatility
|
27
|
%
|
27
|
%
|
||||
Estimated option term
|
Six years
|
Six years
|
(9) |
OTHER COMPREHENSIVE INCOME
|
Three months ended September 30,
|
||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||
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
|
$
|
580
|
$
|
(142
|
)
|
$
|
438
|
$
|
822
|
$
|
(315
|
)
|
$
|
507
|
||||||||||
Foreign currency translation
|
(60
|
)
|
—
|
(60
|
)
|
(164
|
)
|
—
|
(164
|
)
|
||||||||||||||
Total
|
$
|
520
|
$
|
(142
|
)
|
$
|
378
|
$
|
658
|
$
|
(315
|
)
|
$
|
343
|
Nine months ended September 30,
|
||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||
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
|
$
|
1,739
|
$
|
(423
|
)
|
$
|
1,316
|
$
|
2,939
|
$
|
(1,125
|
)
|
$
|
1,814
|
||||||||||
Actuarial gains (losses)
|
(609
|
)
|
148
|
(461
|
)
|
22,014
|
(8,435
|
)
|
13,579
|
|||||||||||||||
Adoption of ASU 2018-02 – reclassification to retained earnings
|
—
|
(7,925
|
)
|
(7,925
|
)
|
—
|
—
|
—
|
||||||||||||||||
Foreign currency translation
|
(69
|
)
|
—
|
(69
|
)
|
(164
|
)
|
—
|
(164
|
)
|
||||||||||||||
Total
|
$
|
1,061
|
$
|
(8,200
|
)
|
$
|
(7,139
|
)
|
$
|
24,789
|
$
|
(9,560
|
)
|
$
|
15,229
|
(a) |
Actuarial gains/(losses) are amortized into other income (expense). (See Note 13 – Retirement Plans)
|
(10) |
SEGMENT DATA
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Revenues:
|
||||||||||||||||
Marine transportation
|
$
|
382,040
|
$
|
318,810
|
$
|
1,100,606
|
$
|
993,727
|
||||||||
Distribution and services
|
322,805
|
222,464
|
1,148,598
|
512,580
|
||||||||||||
$
|
704,845
|
$
|
541,274
|
$
|
2,249,204
|
$
|
1,506,307
|
|||||||||
Segment profit (loss):
|
||||||||||||||||
Marine transportation
|
$
|
48,517
|
$
|
35,649
|
$
|
102,925
|
$
|
106,992
|
||||||||
Distribution and services
|
23,914
|
21,947
|
101,069
|
51,983
|
||||||||||||
Other
|
(15,365
|
)
|
(9,735
|
)
|
(59,543
|
)
|
(27,101
|
)
|
||||||||
$
|
57,066
|
$
|
47,861
|
$
|
144,451
|
$
|
131,874
|
September 30,
2018
|
December 31,
2017
|
|||||||
Total assets:
|
||||||||
Marine transportation
|
$
|
4,191,514
|
$
|
3,485,099
|
||||
Distribution and services
|
1,601,407
|
1,567,085
|
||||||
Other
|
61,411
|
75,243
|
||||||
$
|
5,854,332
|
$
|
5,127,427
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
General corporate expenses
|
$
|
(4,492
|
)
|
$
|
(4,508
|
)
|
$
|
(31,822
|
)
|
$
|
(12,551
|
)
|
||||
Gain (loss) on disposition of assets
|
18
|
(159
|
)
|
2,358
|
(199
|
)
|
||||||||||
Interest expense
|
(12,345
|
)
|
(5,388
|
)
|
(34,665
|
)
|
(14,310
|
)
|
||||||||
Other income (expense)
|
1,454
|
320
|
4,586
|
(41
|
)
|
|||||||||||
$
|
(15,365
|
)
|
$
|
(9,735
|
)
|
$
|
(59,543
|
)
|
$
|
(27,101
|
)
|
September 30,
2018
|
December 31,
2017
|
|||||||
General corporate assets
|
$
|
59,229
|
$
|
73,353
|
||||
Investment in affiliates
|
2,182
|
1,890
|
||||||
$
|
61,411
|
$
|
75,243
|
(11) |
TAXES ON INCOME
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Earnings (loss) before taxes on income:
|
||||||||||||||||
United States
|
$
|
57,980
|
$
|
47,861
|
$
|
147,506
|
$
|
131,874
|
||||||||
Foreign
|
(914
|
)
|
—
|
(3,055
|
)
|
—
|
||||||||||
$
|
57,066
|
$
|
47,861
|
$
|
144,451
|
$
|
131,874
|
|||||||||
Provision for taxes on income:
|
||||||||||||||||
Federal:
|
||||||||||||||||
Current
|
$
|
—
|
$
|
3,617
|
$
|
—
|
$
|
13,605
|
||||||||
Deferred
|
13,457
|
14,132
|
36,350
|
32,783
|
||||||||||||
State and local:
|
||||||||||||||||
Current
|
1,559
|
1,323
|
3,965
|
3,080
|
||||||||||||
Deferred
|
—
|
—
|
488
|
—
|
||||||||||||
Foreign - current
|
100
|
—
|
239
|
—
|
||||||||||||
$
|
15,116
|
$
|
19,072
|
$
|
41,042
|
$
|
49,468
|
(12)
|
EARNINGS PER SHARE
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net earnings attributable to Kirby
|
$
|
41,816
|
$
|
28,607
|
$
|
102,889
|
$
|
81,868
|
||||||||
Undistributed earnings allocated to restricted shares
|
(166
|
)
|
(213
|
)
|
(438
|
)
|
(599
|
)
|
||||||||
Income available to Kirby common stockholders - basic
|
41,650
|
28,394
|
102,451
|
81,269
|
||||||||||||
Undistributed earnings allocated to restricted shares
|
166
|
213
|
438
|
599
|
||||||||||||
Undistributed earnings reallocated to restricted shares
|
(165
|
)
|
(213
|
)
|
(437
|
)
|
(599
|
)
|
||||||||
Income available to Kirby common stockholders - diluted
|
$
|
41,651
|
$
|
28,394
|
$
|
102,452
|
$
|
81,269
|
||||||||
Shares outstanding:
|
||||||||||||||||
Weighted average common stock issued and outstanding
|
59,875
|
55,177
|
59,782
|
54,364
|
||||||||||||
Weighted average unvested restricted stock
|
(237
|
)
|
(412
|
)
|
(255
|
)
|
(398
|
)
|
||||||||
Weighted average common stock outstanding - basic
|
59,638
|
54,765
|
59,527
|
53,966
|
||||||||||||
Dilutive effect of stock options and restricted stock units
|
146
|
38
|
141
|
55
|
||||||||||||
Weighted average common stock outstanding - diluted
|
59,784
|
54,803
|
59,668
|
54,021
|
||||||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.70
|
$
|
0.52
|
$
|
1.72
|
$
|
1.51
|
||||||||
Diluted
|
$
|
0.70
|
$
|
0.52
|
$
|
1.72
|
$
|
1.50
|
(13) |
RETIREMENT PLANS
|
Pension Benefits
|
||||||||||||||||
Pension Plan
|
SERP
|
|||||||||||||||
Three months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
Components of net periodic benefit cost:
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
Service cost
|
$
|
1,722
|
$
|
1,742
|
$
|
—
|
$
|
—
|
||||||||
Interest cost
|
3,939
|
3,320
|
12
|
14
|
||||||||||||
Expected return on plan assets
|
(5,696
|
)
|
(4,595
|
)
|
—
|
—
|
||||||||||
Amortization of actuarial loss
|
723
|
981
|
6
|
7
|
||||||||||||
Net periodic benefit cost
|
$
|
688
|
$
|
1,448
|
$
|
18
|
$
|
21
|
Pension Benefits
|
||||||||||||||||
Pension Plan
|
SERP
|
|||||||||||||||
Nine months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
Components of net periodic benefit cost:
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
Service cost
|
$
|
5,816
|
$
|
8,934
|
$
|
—
|
$
|
—
|
||||||||
Interest cost
|
11,544
|
10,409
|
36
|
43
|
||||||||||||
Expected return on plan assets
|
(16,712
|
)
|
(13,600
|
)
|
—
|
—
|
||||||||||
Amortization of actuarial loss
|
2,168
|
3,419
|
18
|
21
|
||||||||||||
Net periodic benefit cost
|
$
|
2,816
|
$
|
9,162
|
$
|
54
|
$
|
64
|
Other Postretirement
Benefits
|
Other Postretirement
Benefits
|
|||||||||||||||
Postretirement Welfare
Plan
|
Postretirement Welfare
Plan
|
|||||||||||||||
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Components of net periodic benefit cost:
|
||||||||||||||||
Service cost
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Interest cost
|
6
|
6
|
18
|
20
|
||||||||||||
Amortization of actuarial gain
|
(149
|
)
|
(166
|
)
|
(447
|
)
|
(501
|
)
|
||||||||
Net periodic benefit cost
|
$
|
(143
|
)
|
$
|
(160
|
)
|
$
|
(429
|
)
|
$
|
(481
|
)
|
(14) |
CONTINGENCIES
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Weighted average number of common stock - diluted
|
59,784
|
54,803
|
59,668
|
54,021
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||||||||||
2018
|
%
|
2017
|
%
|
2018
|
%
|
2017
|
%
|
|||||||||||||||||||||||||
Marine transportation
|
$
|
382,040
|
54
|
%
|
$
|
318,810
|
59
|
%
|
$
|
1,100,606
|
49
|
%
|
$
|
993,727
|
66
|
%
|
||||||||||||||||
Distribution and services
|
322,805
|
46
|
222,464
|
41
|
1,148,598
|
51
|
512,580
|
34
|
||||||||||||||||||||||||
$
|
704,845
|
100
|
%
|
$
|
541,274
|
100
|
%
|
$
|
2,249,204
|
100
|
%
|
$
|
1,506,307
|
100
|
%
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
2018
|
2017
|
%
Change
|
2018
|
2017
|
%
Change
|
|||||||||||||||||||
Marine transportation revenues
|
$
|
382,040
|
$
|
318,810
|
20
|
%
|
$
|
1,100,606
|
$
|
993,727
|
11
|
%
|
||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||
Costs of sales and operating expenses
|
248,347
|
205,104
|
21
|
744,154
|
652,474
|
14
|
||||||||||||||||||
Selling, general and administrative
|
29,408
|
26,825
|
10
|
94,456
|
82,287
|
15
|
||||||||||||||||||
Taxes, other than on income
|
8,624
|
5,651
|
53
|
23,805
|
17,598
|
35
|
||||||||||||||||||
Depreciation and amortization
|
47,144
|
45,581
|
3
|
135,266
|
134,376
|
—
|
||||||||||||||||||
333,523
|
283,161
|
18
|
997,681
|
886,735
|
13
|
|||||||||||||||||||
Operating income
|
$
|
48,517
|
$
|
35,649
|
36
|
%
|
$
|
102,925
|
$
|
106,992
|
(4
|
)%
|
||||||||||||
Operating margins
|
12.7
|
%
|
11.2
|
%
|
9.4
|
%
|
10.8
|
%
|
Markets Serviced
|
2018 Third
Quarter
Revenue
Distribution
|
2018 Nine
Months
Revenue
Distribution
|
Products Moved
|
Drivers
|
|||||||
Petrochemicals
|
57%
|
56%
|
Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene
|
Consumer non-durables – 70%, Consumer durables – 30%
|
|||||||
Black Oil
|
22%
|
21%
|
Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers
|
Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction
|
|||||||
Refined Petroleum Products
|
18%
|
19%
|
Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol
|
Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization
|
|||||||
Agricultural Chemicals
|
3%
|
4%
|
Anhydrous Ammonia, Nitrogen – Based Liquid Fertilizer, Industrial Ammonia
|
Corn, Cotton and Wheat Production, Chemical Feedstock Usage
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
2018
|
2017
|
%
Change
|
2018
|
2017
|
%
Change
|
|||||||||||||||||||
Distribution and services revenues
|
$
|
322,805
|
$
|
222,464
|
45
|
%
|
$
|
1,148,598
|
$
|
512,580
|
124
|
%
|
||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||
Costs of sales and operating expenses
|
250,074
|
173,646
|
44
|
896,212
|
395,825
|
126
|
||||||||||||||||||
Selling, general and administrative
|
36,965
|
21,242
|
74
|
115,682
|
52,336
|
121
|
||||||||||||||||||
Taxes, other than on income
|
1,888
|
856
|
121
|
5,762
|
1,879
|
207
|
||||||||||||||||||
Depreciation and amortization
|
9,964
|
4,773
|
109
|
29,873
|
10,557
|
183
|
||||||||||||||||||
|
298,891
|
200,517
|
49
|
1,047,529
|
460,597
|
127
|
||||||||||||||||||
Operating income
|
$
|
23,914
|
$
|
21,947
|
9
|
%
|
$
|
101,069
|
$
|
51,983
|
94
|
%
|
||||||||||||
Operating margins
|
7.4
|
%
|
9.9
|
%
|
8.8
|
%
|
10.1
|
%
|
Markets Serviced
|
2018 Third
Quarter
Revenue
Distribution
|
2018 Nine
Months
Revenue
Distribution
|
Customers
|
||||||
Oil and Gas
|
62%
|
68%
|
Oilfield Services, Oil and Gas Operators and Producers
|
||||||
Commercial and Industrial
|
38%
|
32%
|
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, Pleasure Crafts, On and Off-Highway Transportation, Power Generation, Standby Power Generation, Pumping Stations, Mining
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
|||||||||||||||||||
Other income (expense)
|
$
|
1,454
|
$
|
320
|
354
|
%
|
$
|
4,586
|
$
|
(41
|
)
|
n/a
|
||||||||||||
Noncontrolling interests
|
$
|
(134
|
)
|
$
|
(182
|
)
|
(26
|
)%
|
$
|
(520
|
)
|
$
|
(538
|
)
|
(3
|
)%
|
||||||||
Interest expense
|
$
|
(12,345
|
)
|
$
|
(5,388
|
)
|
129
|
%
|
$
|
(34,665
|
)
|
$
|
(14,310
|
)
|
142
|
%
|
September 30,
2018
|
December 31,
2017
|
% Change
|
||||||||||
Assets:
|
||||||||||||
Current assets
|
$
|
1,054,520
|
$
|
957,082
|
10
|
%
|
||||||
Property and equipment, net
|
3,561,500
|
2,959,265
|
20
|
|||||||||
Goodwill
|
960,006
|
935,135
|
3
|
|||||||||
Other intangibles, net
|
228,958
|
232,808
|
(2
|
)
|
||||||||
Other assets
|
49,348
|
43,137
|
14
|
|||||||||
$
|
5,854,332
|
$
|
5,127,427
|
14
|
%
|
|||||||
Liabilities and stockholders’ equity:
|
||||||||||||
Current liabilities
|
$
|
567,926
|
$
|
480,306
|
18
|
%
|
||||||
Long-term debt – less current portion
|
1,399,423
|
992,403
|
41
|
|||||||||
Deferred income taxes
|
544,882
|
468,451
|
16
|
|||||||||
Other long-term liabilities
|
108,953
|
72,044
|
51
|
|||||||||
Total equity
|
3,233,148
|
3,114,223
|
4
|
|||||||||
$
|
5,854,332
|
$
|
5,127,427
|
14
|
%
|
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 6.
|
Exhibits
|
–
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)
|
|
–
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)
|
|
–
|
Certification Pursuant to 18 U.S.C. Section 1350
|
|
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 Definition Linkbase Document
|
101.LAB*
|
–
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
–
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
* |
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.
|
KIRBY CORPORATION
|
||
(Registrant)
|
||
By:
|
/s/ WILLIAM G. HARVEY
|
|
William G. Harvey
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
1. |
I have reviewed this report on Form 10-Q 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 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
|
|
1. |
I have reviewed this report on Form 10-Q 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 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/ WILLIAM G. HARVEY
|
|
William G. Harvey
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
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/ WILLIAM G. HARVEY
|
|
William G. Harvey
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 02, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | KIRBY CORP | |
Entity Central Index Key | 0000056047 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 59,866,000 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Kirby stockholders' 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) | 65,472,000 | 65,472,000 |
Treasury stock, shares (in shares) | 5,595,000 | 5,783,000 |
CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenues: | ||||
Total revenues | $ 704,845 | $ 541,274 | $ 2,249,204 | $ 1,506,307 |
Costs and expenses: | ||||
Costs of sales and operating expenses | 498,421 | 378,750 | 1,640,366 | 1,048,299 |
Selling, general and administrative | 70,032 | 51,712 | 239,416 | 144,404 |
Taxes, other than on income | 10,523 | 6,518 | 29,610 | 19,511 |
Depreciation and amortization | 57,930 | 51,206 | 167,640 | 147,669 |
Loss (gain) on disposition of assets | (18) | 159 | (2,358) | 199 |
Total costs and expenses | 636,888 | 488,345 | 2,074,674 | 1,360,082 |
Operating income | 67,957 | 52,929 | 174,530 | 146,225 |
Other income (expense) | 1,454 | 320 | 4,586 | (41) |
Interest expense | (12,345) | (5,388) | (34,665) | (14,310) |
Earnings before taxes on income | 57,066 | 47,861 | 144,451 | 131,874 |
Provision for taxes on income | (15,116) | (19,072) | (41,042) | (49,468) |
Net earnings | 41,950 | 28,789 | 103,409 | 82,406 |
Less: Net earnings attributable to noncontrolling interests | (134) | (182) | (520) | (538) |
Net earnings attributable to Kirby | $ 41,816 | $ 28,607 | $ 102,889 | $ 81,868 |
Net earnings per share attributable to Kirby common stockholders: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.52 | $ 1.72 | $ 1.51 |
Diluted (in dollars per share) | $ 0.70 | $ 0.52 | $ 1.72 | $ 1.50 |
Marine Transportation [Member] | ||||
Revenues: | ||||
Total revenues | $ 382,040 | $ 318,810 | $ 1,100,606 | $ 993,727 |
Distribution and Services [Member] | ||||
Revenues: | ||||
Total revenues | $ 322,805 | $ 222,464 | $ 1,148,598 | $ 512,580 |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net earnings | $ 41,950 | $ 28,789 | $ 103,409 | $ 82,406 |
Other comprehensive income (loss), net of taxes: | ||||
Pension and postretirement benefits | 438 | 507 | 855 | 15,393 |
Foreign currency translation adjustments | (60) | (164) | (69) | (164) |
Reclassification to retained earnings of stranded tax effects from tax reform | 0 | 0 | (7,925) | 0 |
Total other comprehensive income (loss), net of taxes | 378 | 343 | (7,139) | 15,229 |
Total comprehensive income, net of taxes | 42,328 | 29,132 | 96,270 | 97,635 |
Net earnings attributable to noncontrolling interests | (134) | (182) | (520) | (538) |
Comprehensive income attributable to Kirby | $ 42,194 | $ 28,950 | $ 95,750 | $ 97,097 |
BASIS FOR PREPARATION OF THE CONDENSED FINANCIAL STATEMENTS |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 | |||
BASIS FOR PREPARATION OF THE CONDENSED FINANCIAL STATEMENTS [Abstract] | |||
BASIS FOR PREPARATION OF THE CONDENSED FINANCIAL STATEMENTS |
The condensed financial statements included herein have been prepared by Kirby Corporation (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies normally included in annual financial statements, have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
ACCOUNTING STANDARDS ADOPTIONS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTING STANDARDS ADOPTIONS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTING STANDARDS ADOPTIONS |
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation – Retirement Benefits - Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans” which amends the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing certain requirements, providing clarification on existing requirements and adding new requirements including adding an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the recent federal tax reform legislation. ASU 2018-02 eliminates the stranded tax effects resulting from the recent federal tax reform legislation and will improve the usefulness of information reported to financial statement users. The amendments in ASU 2018-02 will be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the recent federal tax reform legislation is recognized. ASU 2018-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period, for which financial statements have not yet been made available for issuance. The Company elected to early adopt ASU 2018-02 in the 2018 first quarter, which resulted in the reclassification of $7,925,000 from accumulated other comprehensive income (loss) to retained earnings due to the change in the federal corporate tax rate. In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”) which requires employers to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard allows only the service cost component to be eligible for capitalization when applicable. ASU 2017-07 is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. This standard shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost benefit in assets. The Company adopted ASU 2017-07 on January 1, 2018 and applied the standard retrospectively. The other components of net benefit cost are shown in Note 13, Retirement Plans. As a result of the adoption, for the three months and nine months ended September 30, 2017, the Company reclassified income of $433,000 and $189,000, respectively, from operating expense into non-operating expense in the condensed statement of earnings. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) which simplifies the subsequent measurement of goodwill by eliminating Step 2 in the goodwill impairment test that required an entity to perform procedures to determine the fair value of its assets and liabilities at the testing date. An entity instead will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 will be applied prospectively and is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact, if any, that the adoption of this standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”) to create consistency in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2016-15 on January 1, 2018 and the adoption of the standard did not have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The method of adoption may be a modified retrospective approach or an approach that utilizes recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. The Company has formed a project team to evaluate the impact that the adoption of this standard will have on its consolidated financial statements and disclosures. The project team has completed training on the new standard and has started lease review and documentation, including review of practical expedients available. The project team has also selected a software package and continued to load the lease population into the system. The Company has not selected a method of adoption and has not yet determined the effect of ASU 2016-02 on its ongoing financial reporting. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” (“ASU 2014-09” or “ASC 606”). 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 replaces most existing revenue recognition guidance in United States Generally Accepted Accounting Principles and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. ASU 2014-09 permits the use of either the retrospective, modified retrospective or prospective with a cumulative catch-up approach. The Company adopted ASU 2014-09 on January 1, 2018 under the modified retrospective approach with a cumulative adjustment that decreased the opening balance of retained earnings by $9,722,000. Prior period amounts were not adjusted and the prior period amounts continue to be reported under the accounting standards in effect for those periods. The cumulative adjustment primarily relates to recognition of revenue on certain contract manufacturing activities, primarily construction of new pressure pumping units in the Company’s distribution and services segment. The Company previously recognized revenue on manufacturing and assembly projects on a percentage of completion method using measurements of progress towards completion appropriate for the work performed. Upon the adoption of ASU 2014-09, the Company recognizes the revenues on contract manufacturing activities upon shipment and transfer of control versus the percentage of completion method. The following tables summarize the financial statement line items within the Company’s condensed consolidated financial statements impacted by ASU 2014-09 for the three months and nine months ended September 30, 2018 (in thousands):
The following table summarizes the balance sheet line items within the Company’s condensed consolidated financial statements as of September 30, 2018 impacted by ASU 2014-09 (in thousands):
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REVENUES |
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REVENUES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES |
The following table sets forth the Company’s revenues by major source for the three months and nine months ended September 30, 2018 and 2017 (in thousands):
The Company’s revenue is measured based on consideration specified in its contracts with its customers. The Company recognizes revenue as it satisfies performance obligations in its contracts which occur as the Company delivers a service over time to its customers, or transfers control over a part or product to its customer. Marine Transportation Revenues. The Company’s marine transportation segment utilizes contracts with its customers to transport cargo from a designated origin to a designated destination at a set rate or at a daily rate. 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. The performance of the service is invoiced as the transaction occurs and payment is required depending on each specific customer’s credit terms. Distribution and Services Revenues. Distribution products and services are generally sold based upon purchase orders or preferential service agreements with the customer that include fixed or determinable prices. Parts sales are recognized when control transfers to the customer, generally when title passes upon shipment to customers. Service revenue is recognized over time as the service is provided using measures of progress utilizing hours worked or costs incurred as a percentage of estimated hours or expected costs. Revenue from rental agreements is recognized on a straight-line basis over the rental period. The Company recognizes the revenues on contract manufacturing activities upon shipment and transfer of control to the customer. The transactions in the distribution and services segment are typically invoiced as parts are shipped or upon the completion of the service job. Contract manufacturing activities are generally invoiced upon shipment and the Company will often get deposits from its customers prior to starting work, or progress payments during the project depending on the credit worthiness of the customer and the size of the project. Prior to the adoption of ASU 2014-09, distribution and services manufacturing and assembly projects revenue was reported on the percentage of completion method of accounting using measurements of progress towards completion appropriate for the work performed. Upon the adoption of ASU 2014-09 on January 1, 2018, the Company recognizes the revenues on contract manufacturing activities upon shipment and transfer of control versus the percentage of completion method. Contract Assets and Liabilities. Contract liabilities represent advance consideration received from customers, and are recognized as revenue over time as the related performance obligation is satisfied. The amount of revenue recognized in the 2018 first nine months that was included in the opening contract liability balance was $39,492,000. The Company has recognized all contract liabilities within the deferred revenues financial statement caption on the balance sheet. The Company expects to recognize revenue of $35,836,000 in the 2018 fourth quarter and $40,007,000 in 2019 related to deferred revenue as of September 30, 2018. The Company did not have any contract assets at September 30, 2018 or December 31, 2017. Performance Obligations. The Company applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
ACQUISITIONS |
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ACQUISITIONS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS |
On May 10, 2018, the Company completed the purchase of Targa Resources Corp.’s (“Targa”) inland tank barge business from a subsidiary of Targa for $69,250,000 in cash. Targa’s inland tank barge fleet consisted of 16 pressure barges with a total capacity of 258,000 barrels, many of which were under multi-year contracts that the Company assumed from Targa. The 16 tank barges transport petrochemicals on the Mississippi River System and the Gulf Intracoastal Waterway. As a result of the acquisition, the Company recorded $16,116,000 of goodwill and $11,000,000 of intangibles with an average amortization period of 15 years. The Company expects all of the goodwill to be deductible for tax purposes. On March 15, 2018, the Company purchased two inland pressure tank barges from a competitor for $10,400,000 in cash. The average age of the two tank barges was five years. On February 14, 2018, the Company completed the acquisition of Higman Marine, Inc. and its affiliated companies (“Higman”) for $421,922,000 in cash, subject to certain post-closing adjustments. Higman’s fleet consisted of 163 inland tank barges, including two barges to be leased upon completion of their construction in 2018, with 4.8 million barrels of capacity, and 75 inland towboats, transporting petrochemicals, black oil, including crude oil and natural gas condensate, and refined petroleum products on the Mississippi River System and the Gulf Intracoastal Waterway. The average age of the inland tank barges was approximately seven years and the inland towboats had an average age of approximately eight years. Financing of the acquisition was through the issuance of $500,000,000 of 4.2% senior unsecured notes due March 1, 2028 (the “2028 Notes”). The 2028 Notes were issued on February 12, 2018 in preparation for closing of the acquisition. The Company considers Higman to be a natural extension of the current marine transportation segment, expanding the capabilities of the Company’s inland based marine transportation business and lowering the average age of its inland tank barge and towboat fleet. The fair values of the assets acquired and liabilities assumed recorded at the acquisition date were as follows (in thousands):
The analysis of the Higman fair values is substantially complete but all fair values have not been finalized pending obtaining the information necessary to complete the analysis. As additional information becomes known concerning the assets acquired and liabilities assumed, the Company may make adjustments to the opening balance sheet of Higman up to a one year period following the acquisition date. As a result of the acquisition, the Company recorded $8,134,000 of goodwill of which the majority will be deductible for tax purposes. The Company also incurred $11,100,000 of intangible liabilities related to unfavorable contracts with a weighted average amortization period of approximately 4.9 years. Acquisition related costs of $3,379,000, consisting primarily of legal, audit and other professional fees plus other expenses, were expensed as incurred to selling, general and administrative expense in the 2018 first nine months. Pro forma results of the acquisitions made in the 2018 first nine months have not been presented as the pro forma revenues, earnings before taxes on income, net earnings and net earnings per share would not be materially different from the Company’s actual results. |
INVENTORIES |
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INVENTORIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES |
The following table presents the details of inventories as of September 30, 2018 and December 31, 2017 (in thousands):
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FAIR VALUE MEASUREMENTS |
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FAIR VALUE MEASUREMENTS [Abstract] | |||
FAIR VALUE MEASUREMENTS |
The estimated fair value of total debt outstanding at September 30, 2018 and December 31, 2017 was $1,369,932,000 and $984,017,000, respectively, which differs from the carrying amounts of $1,399,931,000 and $992,406,000, respectively, included in the consolidated financial statements. The fair value was determined using an income approach that relies on inputs such as yield curves. 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. 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 2017 fourth quarter, the Company reduced certain vessels to fair value due to its decision to put certain older out-of-service vessels up for sale in its marine transportation segment. The fair value of these vessels was $12,550,000 December 31, 2017, and is presented in prepaid expenses and other current assets. |
LONG-TERM DEBT |
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LONG-TERM DEBT |
On February 12, 2018, the Company issued $500,000,000 of 4.2% senior unsecured notes due March 1, 2028 with U.S. Bank National Association, as trustee. Interest payments of $10,500,000 are due semi-annually on March 1 and September 1 of each year, with the exception of the first payment on September 1, 2018, which was $11,608,000. The Company received cash proceeds of $495,019,000, net of the original issue discount of $705,000 and debt issuance costs of $4,276,000. The 2028 Notes are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. The 2028 Notes contain certain covenants on the part of the Company, including covenants relating to liens, sale-leasebacks, asset sales and mergers, among others. The 2028 Notes 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. The Company used the proceeds from the issuance of the 2028 Notes to fund the acquisition of Higman. The remaining net proceeds of the sale of the 2028 Notes were used for the repayment of indebtedness under the Company’s bank credit facilities. |
STOCK AWARD PLANS |
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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 three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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 awards and performance awards. On February 19, 2018, the employee stock award plan was amended to also allow for the granting of restricted stock units (“RSUs”) to selected officers and other key employees. The amendment included a provision for the continued vesting of unvested stock options and RSUs for employees who meet certain years of service and age requirements at the time of their retirement. The vesting change resulted in shorter expense accrual periods on stock options and RSUs granted after February 19, 2018 to employees who are nearing retirement and meet the service and age requirements. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. Substantially all stock options outstanding under the plan have terms of seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At September 30, 2018, 1,573,527 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 nine months ended September 30, 2018:
The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at September 30, 2018:
The following is a summary of the restricted stock award activity under the employee plan described above for the nine months ended September 30, 2018:
The following is a summary of RSU activity under the employee plan described above for the nine months ended September 30, 2018:
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 vests 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 September 30, 2018, 486,058 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 nine months ended September 30, 2018:
The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at September 30, 2018:
The following is a summary of the restricted stock award activity under the director plan described above for the nine months ended September 30, 2018:
The total intrinsic value of all stock options exercised under all of the Company’s plans was $6,709,000 and $1,585,000 for the nine months ended September 30, 2018 and 2017, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $1,912,000 and $597,000 for the nine months ended September 30, 2018 and 2017, respectively. The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $11,454,000 and $7,046,000 for the nine months ended September 30, 2018 and 2017, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $3,264,000 and $2,654,000 for the nine months ended September 30, 2018 and 2017, respectively. There were no RSU vestings for the nine months ended September 30, 2018. As of September 30, 2018, there was $2,770,000 of unrecognized compensation cost related to nonvested stock options, $10,296,000 related to nonvested restricted stock awards and $6,227,000 related to nonvested RSUs. The stock options are expected to be recognized over a weighted average period of approximately 1.7 years, restricted stock awards over approximately 2.3 years and RSUs over approximately 4.1 years. The total fair value of options vested was $3,170,000 and $2,511,000 during the nine months ended September 30, 2018 and 2017, respectively. The fair value of the restricted stock vested was $11,454,000 and $7,046,000 for the nine months ended September 30, 2018 and 2017, respectively. The weighted average per share fair value of stock options granted during the nine months ended September 30, 2018 and 2017 was $23.53 and $20.72, respectively. The fair value of the stock options granted during the nine months ended September 30, 2018 and 2017 was $2,787,000 and $2,616,000, 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 options during the nine months ended September 30, 2018 and 2017 were as follows:
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OTHER COMPREHENSIVE INCOME |
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OTHER COMPREHENSIVE INCOME [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME |
The Company’s changes in other comprehensive income for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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SEGMENT DATA |
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SEGMENT DATA [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. Distribution and Services — Provides after-market services and parts for engines, transmissions, reduction gears and related equipment used in oilfield service, marine, power generation, mining, on-highway, and other industrial applications. The Company also rents equipment including generators, fork lifts, pumps and compressors for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the 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 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 distribution and services segment from the marine transportation segment of $5,837,000 and $21,757,000 for the three months and nine months ended September 30, 2018, respectively, and $4,967,000 and $15,342,000 for the three months and nine months ended September 30, 2017, respectively, have been eliminated from the tables below. The related intersegment profit of $584,000 and $2,176,000 for the three months and nine months ending September 30, 2018, respectively, and $497,000 and $1,534,000 for the three months and nine months ending September 30, 2017, respectively, have also been eliminated from the tables below. The following table sets forth the Company’s revenues and profit or loss by reportable segment for the three months and nine months ended September 30, 2018 and 2017 and total assets as of September 30, 2018 and December 31, 2017 (in thousands):
The following table presents the details of “Other” segment loss for the three months and nine months ended September 30, 2018 and 2017 (in thousands):
General corporate expenses for the nine months ended September 30, 2018 include $18,057,000 of one-time non-deductible expense related to the retirement of the Company’s executive Chairman of the Board of Directors, effective April 30, 2018. He will continue to serve as Chairman of the Board in a non-executive role. The following table presents the details of “Other” total assets as of September 30, 2018 and December 31, 2017 (in thousands):
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TAXES ON INCOME |
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TAXES ON INCOME [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TAXES ON INCOME |
Earnings before taxes on income and details of the provision for taxes on income for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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EARNINGS PER SHARE |
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EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
The following table presents the components of basic and diluted earnings per share for the three months and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts):
Certain outstanding options to purchase approximately 189,000 and 548,000 shares of common stock were excluded in the computation of diluted earnings per share as of September 30, 2018 and 2017, respectively, as such stock options would have been antidilutive. |
RETIREMENT PLANS |
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RETIREMENT PLANS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. On April 12, 2017, the Company amended its pension plan to cease all benefit accruals for periods after May 31, 2017 for certain participants. Participants grandfathered and not impacted were those, as of the close of business on May 31, 2017, who either (a) had completed 15 years of pension service or (b) had attained age 50 and completed 10 years of pension service. Participants non-grandfathered are eligible to receive discretionary 401(k) plan contributions. The Company did not incur any one-time charges related to this amendment but the pension plan’s projected benefit obligation decreased by $33,433,000. The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. The plan’s benefit obligations are 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. Based on current pension plan assets and market conditions, the Company does not expect to make a contribution to its pension plan during 2018. On February 14, 2018, with the acquisition of Higman, the Company assumed Higman’s pension plan for its inland vessel personnel and office staff. On March 27, 2018, the Company amended the Higman pension plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company did not incur any one-time charges related to this amendment but the Higman pension plan’s projected benefit obligation decreased by $3,692,000. The Company made a pension contribution to the Higman plan of $6,717,000 in March 2018 to complete all required funding for the 2016 and 2017 years and make its 2018 first quarter contribution. The Company expects to make additional contributions to the Higman pension plan of approximately $1,385,000 in the fourth quarter of 2018 for the 2018 year. The Company sponsors an unfunded defined benefit health care plan that provides limited postretirement medical benefits to employees who meet 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 components of net periodic benefit cost for the Company’s defined benefit plans for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
The components of net periodic benefit cost for the Company’s postretirement benefit plan for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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CONTINGENCIES |
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Sep. 30, 2018 | |||
CONTINGENCIES [Abstract] | |||
CONTINGENCIES |
On October 13, 2016, the tug Nathan E. Stewart and barge DBL 55, an articulated tank barge and tugboat unit (“ATB”), ran aground at the entrance to Seaforth Channel on Atholone Island, British Columbia. The grounding resulted in a breach of a portion of the Nathan E. Stewart’s fuel tanks causing a discharge of diesel fuel into the water. The USCG and the National Transportation Safety Board (“NTSB”) designated the Company as a party of interest in their investigation as to the cause of the incident. The Canadian authorities including Transport Canada and the Canadian Transportation Safety Board investigated the cause of the incident. On October 10, 2018, the Heiltsuk First Nation filed a civil action against a subsidiary of the Company, the master and pilot of the tug, the vessels and the Canadian government seeking unquantified damages as a result of the incident. On the same date, the Canadian government filed charges against the subsidiary and the vessels for violations of the Canadian Fisheries Act, the Migratory Birds Convention Act, the Pilotage Act and the Shipping Act of 2001. The Company is preparing its responses and is unable to estimate the potential exposure in either proceeding. The Company has various insurance policies covering liabilities including pollution, property, marine and general liability and believes that it has satisfactory insurance coverage for the cost of cleanup and salvage operations as well as 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. 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 NTSB 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 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. 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 $23,719,000 at September 30, 2018, including $8,857,000 in letters of credit and $14,862,000 in performance bonds. All of these instruments have an expiration date within three years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur regarding these instruments. |
ACCOUNTING STANDARDS ADOPTIONS (Tables) |
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTING STANDARDS ADOPTIONS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Statements Impacted by ASU 2014-09 | The following tables summarize the financial statement line items within the Company’s condensed consolidated financial statements impacted by ASU 2014-09 for the three months and nine months ended September 30, 2018 (in thousands):
The following table summarizes the balance sheet line items within the Company’s condensed consolidated financial statements as of September 30, 2018 impacted by ASU 2014-09 (in thousands):
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REVENUES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Major Source | The following table sets forth the Company’s revenues by major source for the three months and nine months ended September 30, 2018 and 2017 (in thousands):
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ACQUISITIONS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed recorded at the acquisition date were as follows (in thousands):
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INVENTORIES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Details of Inventories | The following table presents the details of inventories as of September 30, 2018 and December 31, 2017 (in thousands):
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STOCK AWARD PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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Stock Option Valuation Assumptions | The key input variables used in valuing the options during the nine months ended September 30, 2018 and 2017 were as follows:
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Employee Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | The following is a summary of the stock option activity under the employee plan described above for the nine months ended September 30, 2018:
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Outstanding and Exercisable Stock Options | The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at September 30, 2018:
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Restricted Stock Award Activity | The following is a summary of the restricted stock award activity under the employee plan described above for the nine months ended September 30, 2018:
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RSU Activity | The following is a summary of RSU activity under the employee plan described above for the nine months ended September 30, 2018:
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Director Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | The following is a summary of the stock option activity under the director plan described above for the nine months ended September 30, 2018:
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Outstanding and Exercisable Stock Options | The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at September 30, 2018:
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Restricted Stock Award Activity | The following is a summary of the restricted stock award activity under the director plan described above for the nine months ended September 30, 2018:
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OTHER COMPREHENSIVE INCOME (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Other Comprehensive Income | The Company’s changes in other comprehensive income for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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SEGMENT DATA (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Segment | The following table sets forth the Company’s revenues and profit or loss by reportable segment for the three months and nine months ended September 30, 2018 and 2017 and total assets as of September 30, 2018 and December 31, 2017 (in thousands):
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Other Segment Reporting Information | The following table presents the details of “Other” segment loss for the three months and nine months ended September 30, 2018 and 2017 (in thousands):
The following table presents the details of “Other” total assets as of September 30, 2018 and December 31, 2017 (in thousands):
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TAXES ON INCOME (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TAXES ON INCOME [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Taxes | Earnings before taxes on income and details of the provision for taxes on income for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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EARNINGS PER SHARE (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings per Share | The following table presents the components of basic and diluted earnings per share for the three months and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts):
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RETIREMENT PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | The components of net periodic benefit cost for the Company’s defined benefit plans for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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Other Postretirement Benefits [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | The components of net periodic benefit cost for the Company’s postretirement benefit plan for the three months and nine months ended September 30, 2018 and 2017 were as follows (in thousands):
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REVENUES, Remaining Performance Obligation (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenue, Performance Obligation [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-01 | ||
Revenue, Performance Obligation [Abstract] | ||
Expected timing of satisfaction, period | 9 months | |
Remaining performance obligation | $ 35,836 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Performance Obligation [Abstract] | ||
Expected timing of satisfaction, period | 1 year | |
Remaining performance obligation | $ 40,007 |
INVENTORIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Details of inventories [Abstract] | ||
Finished goods | $ 336,703 | $ 242,333 |
Work in process | 116,470 | 73,396 |
Inventory, Net, Total | $ 453,173 | $ 315,729 |
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Nonrecurring Basis [Member] | Vessels [Member] | ||
Fair Value Measurements [Abstract] | ||
Fair market value of assets | $ 12,550 | |
Income Approach [Member] | ||
Fair Value Measurements [Abstract] | ||
Estimated fair value of outstanding debt | $ 1,369,932 | 984,017 |
Carrying amount of debt | $ 1,399,931 | $ 992,406 |
LONG-TERM DEBT (Details) - Senior Notes Due March 01, 2028 [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Feb. 12, 2018 |
Sep. 30, 2018 |
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Long-term Debt [Abstract] | ||
Long term debt, face amount | $ 500,000 | |
Debt instrument, interest rate, stated percentage | 4.20% | |
Credit facility, expiration date | Mar. 01, 2028 | |
Periodic payment, interest | $ 10,500 | |
Periodic payment, interest, exception of first payment | $ 11,608 | |
Cash proceeds received | $ 495,019 | |
Original issue discount | 705 | |
Debt issuance costs | $ 4,276 |
STOCK AWARD PLANS, Compensation Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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STOCK AWARD PLANS [Abstract] | ||||
Compensation cost | $ 3,098 | $ 3,067 | $ 16,649 | $ 8,991 |
Income tax benefit | $ 709 | $ 1,234 | $ 4,747 | $ 3,386 |
STOCK AWARD PLANS, Employee Plan Restricted Stock Award Activity (Details) - Employee Stock Award Plan [Member] - Restricted Stock [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Unvested Restricted Stock Award Shares [Roll Forward] | |
Nonvested balance beginning of period (in shares) | shares | 364,121 |
Vested (in shares) | shares | (144,240) |
Forfeited (in shares) | shares | (3,949) |
Nonvested balance end of period (in shares) | shares | 215,932 |
Weighted Average Grant Date Fair Value Per Share [Abstract] | |
Nonvested balance beginning of period (in dollars per share) | $ / shares | $ 65.84 |
Vested (in dollars per share) | $ / shares | 72.66 |
Forfeited (in dollars per share) | $ / shares | 64.68 |
Nonvested balance end of period (in dollars per share) | $ / shares | $ 64.73 |
STOCK AWARD PLANS, Employee Plan RSU Activity (Details) - Employee Stock Award Plan [Member] - RSUs [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Unvested RSU Shares [Roll Forward] | |
Nonvested balance beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 143,890 |
Forfeited (in shares) | shares | (2,105) |
Nonvested balance end of period (in shares) | shares | 141,785 |
Weighted Average Grant Date Fair Value Per Share [Abstract] | |
Nonvested balance beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 75.59 |
Forfeited (in dollars per share) | $ / shares | 75.50 |
Nonvested balance end of period (in dollars per share) | $ / shares | $ 75.59 |
STOCK AWARD PLANS, Director Plan Stock Option Activity (Details) - Director Plan [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Stock Award Plan Information [Abstract] | |
Shares available for future grants (in shares) | 486,058 |
Stock Options [Member] | |
Stock Award Plan Information [Abstract] | |
Term of grant | 10 years |
Outstanding Non-Qualified or Nonincentive Stock Options [Roll Forward] | |
Outstanding at Period Start (in shares) | 157,617 |
Granted (in shares) | 2,640 |
Exercised (in shares) | (29,153) |
Outstanding at Period End (in shares) | 131,104 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at Period Start (in dollars per share) | $ / shares | $ 67.54 |
Granted (in dollars per share) | $ / shares | 85.30 |
Exercised (in dollars per share) | $ / shares | 57.47 |
Outstanding at Period End (in dollars per share) | $ / shares | $ 70.14 |
Restricted Stock [Member] | |
Stock Award Plan Information [Abstract] | |
Vesting period | 6 months |
STOCK AWARD PLANS, Director Plan Restricted Stock Award Activity (Details) - Director Plan [Member] - Restricted Stock [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Unvested Restricted Stock Award Shares [Roll Forward] | |
Nonvested balance beginning of period (in shares) | shares | 319 |
Granted (in shares) | shares | 21,373 |
Vested (in shares) | shares | (847) |
Nonvested balance end of period (in shares) | shares | 20,845 |
Weighted Average Grant Date Fair Value Per Share [Abstract] | |
Nonvested balance beginning of period (in dollars per share) | $ / shares | $ 70.65 |
Granted (in dollars per share) | $ / shares | 85.70 |
Vested (in dollars per share) | $ / shares | 79.78 |
Nonvested balance end of period (in dollars per share) | $ / shares | $ 85.71 |
SEGMENT DATA (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
Segment
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
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SEGMENT DATA [Abstract] | |||||
Number of reportable segments | Segment | 2 | ||||
Revenues [Abstract] | |||||
Revenues | $ 704,845 | $ 541,274 | $ 2,249,204 | $ 1,506,307 | |
Segment profit (loss) | 57,066 | 47,861 | 144,451 | 131,874 | |
Total assets | 5,854,332 | 5,854,332 | $ 5,127,427 | ||
Other segment disclosures [Abstract] | |||||
Gain (loss) on disposition of assets | 18 | (159) | 2,358 | (199) | |
Interest expense | (12,345) | (5,388) | (34,665) | (14,310) | |
Other income (expense) | 1,454 | 320 | 4,586 | (41) | |
Executive Chairman [Member] | |||||
Other segment disclosures [Abstract] | |||||
General corporate expenses | 18,057 | ||||
Marine Transportation [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 382,040 | 318,810 | 1,100,606 | 993,727 | |
Distribution and Services [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 322,805 | 222,464 | 1,148,598 | 512,580 | |
Other [Member] | |||||
Revenues [Abstract] | |||||
Segment profit (loss) | (15,365) | (9,735) | (59,543) | (27,101) | |
Total assets | 61,411 | 61,411 | 75,243 | ||
Other segment disclosures [Abstract] | |||||
General corporate expenses | (4,492) | (4,508) | (31,822) | (12,551) | |
Gain (loss) on disposition of assets | 18 | (159) | 2,358 | (199) | |
Interest expense | (12,345) | (5,388) | (34,665) | (14,310) | |
Other income (expense) | 1,454 | 320 | 4,586 | (41) | |
Loss from other segment | (15,365) | (9,735) | (59,543) | (27,101) | |
Details of "Other" total assets [Abstract] | |||||
General corporate assets | 59,229 | 59,229 | 73,353 | ||
Investment in affiliates | 2,182 | 2,182 | 1,890 | ||
Total other assets | 61,411 | 61,411 | 75,243 | ||
Reporting Segments [Member] | Marine Transportation [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 382,040 | 318,810 | 1,100,606 | 993,727 | |
Segment profit (loss) | 48,517 | 35,649 | 102,925 | 106,992 | |
Total assets | 4,191,514 | 4,191,514 | 3,485,099 | ||
Reporting Segments [Member] | Distribution and Services [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 322,805 | 222,464 | 1,148,598 | 512,580 | |
Segment profit (loss) | 23,914 | 21,947 | 101,069 | 51,983 | |
Total assets | 1,601,407 | 1,601,407 | $ 1,567,085 | ||
Intersegment Eliminations [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 5,837 | 4,967 | 21,757 | 15,342 | |
Segment profit (loss) | $ 584 | $ 497 | $ 2,176 | $ 1,534 |
TAXES ON INCOME (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings (loss) before taxes on income [Abstract] | ||||
Earnings (loss) before taxes on income | $ 57,066 | $ 47,861 | $ 144,451 | $ 131,874 |
Federal [Abstract] | ||||
Current | 0 | 3,617 | 0 | 13,605 |
Deferred | 13,457 | 14,132 | 36,350 | 32,783 |
State and local [Abstract] | ||||
Current | 1,559 | 1,323 | 3,965 | 3,080 |
Deferred | 0 | 0 | 488 | 0 |
Foreign - current | 100 | 0 | 239 | 0 |
Total Provision for taxes on income | 15,116 | 19,072 | 41,042 | 49,468 |
United States [Member] | ||||
Earnings (loss) before taxes on income [Abstract] | ||||
Earnings (loss) before taxes on income | 57,980 | 47,861 | 147,506 | 131,874 |
Foreign [Member] | ||||
Earnings (loss) before taxes on income [Abstract] | ||||
Earnings (loss) before taxes on income | $ (914) | $ 0 | $ (3,055) | $ 0 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
EARNINGS PER SHARE [Abstract] | ||||
Net earnings attributable to Kirby | $ 41,816 | $ 28,607 | $ 102,889 | $ 81,868 |
Undistributed earnings allocated to restricted shares | (166) | (213) | (438) | (599) |
Income available to Kirby common stockholders - basic | 41,650 | 28,394 | 102,451 | 81,269 |
Undistributed earnings allocated to restricted shares | 166 | 213 | 438 | 599 |
Undistributed earnings reallocated to restricted shares | (165) | (213) | (437) | (599) |
Income available to Kirby common stockholders - diluted | $ 41,651 | $ 28,394 | $ 102,452 | $ 81,269 |
Shares outstanding [Abstract] | ||||
Weighted average common stock issued and outstanding (in shares) | 59,875 | 55,177 | 59,782 | 54,364 |
Weighted average unvested restricted stock (in shares) | (237) | (412) | (255) | (398) |
Weighted average common stock outstanding - basic (in shares) | 59,638 | 54,765 | 59,527 | 53,966 |
Dilutive effect of stock options and restricted stock units (in shares) | 146 | 38 | 141 | 55 |
Weighted average common stock outstanding - diluted (in shares) | 59,784 | 54,803 | 59,668 | 54,021 |
Net earnings per share attributable to Kirby common stockholders [Abstract] | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.52 | $ 1.72 | $ 1.51 |
Diluted (in dollars per share) | $ 0.70 | $ 0.52 | $ 1.72 | $ 1.50 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 189 | 548 |
RETIREMENT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Mar. 31, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Retirement Plans [Abstract] | |||||
Service period of participants not impacted by pension plan amendment | 15 years | ||||
Age of plan participants not impacted by pension plan amendment | 50 years | ||||
Service period of participants who are age fifty not impacted by pension plan amendment | 10 years | ||||
Decrease in pension plan projected benefit obligation | $ (33,433) | ||||
Pension plan defined benefit plan cost increase limit percentage | 4.00% | ||||
Higman [Member] | |||||
Retirement Plans [Abstract] | |||||
Decrease in pension plan projected benefit obligation | $ (3,692) | ||||
Pension contributions | $ 6,717 | ||||
Expected additional contribution | $ 1,385 | 1,385 | |||
Pension Plan [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 1,722 | $ 1,742 | 5,816 | $ 8,934 | |
Interest cost | 3,939 | 3,320 | 11,544 | 10,409 | |
Expected return on plan assets | (5,696) | (4,595) | (16,712) | (13,600) | |
Amortization of actuarial loss | 723 | 981 | 2,168 | 3,419 | |
Net periodic benefit cost | 688 | 1,448 | 2,816 | 9,162 | |
SERP [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 12 | 14 | 36 | 43 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of actuarial loss | 6 | 7 | 18 | 21 | |
Net periodic benefit cost | 18 | 21 | 54 | 64 | |
Other Postretirement Benefits [Member] | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 6 | 6 | 18 | 20 | |
Amortization of actuarial loss | (149) | (166) | (447) | (501) | |
Net periodic benefit cost | $ (143) | $ (160) | $ (429) | $ (481) |
CONTINGENCIES (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
|
Mar. 22, 2014
TankBarge
Vessel
|
|
Guaranties [Abstract] | ||
Issued guaranties | $ 23,719 | |
Maximum [Member] | ||
Guaranties [Abstract] | ||
Guarantor obligations, expiration period | 3 years | |
Performance Bonds [Member] | ||
Guaranties [Abstract] | ||
Issued guaranties | $ 8,857 | |
Collision with M/S Summer Wind [Member] | ||
Loss Contingency [Abstract] | ||
Number of vessels involved in collision | Vessel | 2 | |
Number of vessels damaged in collision resulting in fuel oil discharge | TankBarge | 1 | |
Letters of Credit [Member] | ||
Guaranties [Abstract] | ||
Issued guaranties | $ 14,862 |
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