☒ |
ANNUAL 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)
|
(I.R.S. Employer Identification No.)
|
|
55 Waugh Drive, Suite 1000
|
||
Houston, Texas
|
77007
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
|
Common Stock — $.10 Par Value Per Share
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
☐
|
Page
|
||
PART I
|
||
4
|
||
4
|
||
4
|
||
5
|
||
6
|
||
7
|
||
7
|
||
8
|
||
9
|
||
9
|
||
10
|
||
11
|
||
14
|
||
15
|
||
15
|
||
15
|
||
16
|
||
18
|
||
19
|
||
20
|
||
20
|
||
20
|
||
21
|
||
21
|
||
21
|
||
21
|
||
22
|
||
22
|
||
22
|
||
22
|
||
25
|
||
31
|
||
31
|
||
32
|
||
33
|
||
PART II
|
||
34
|
||
35
|
||
35
|
||
60
|
||
60
|
||
60
|
||
60
|
||
PART III
|
||
61
|
||
PART IV
|
||
97
|
● |
Audit Committee Charter
|
● |
Compensation Committee Charter
|
● |
Governance Committee Charter
|
● |
Business Ethics Guidelines
|
● |
Corporate Governance Guidelines
|
2016
|
2015
|
2014
|
||||||||||
Revenues from unaffiliated customers:
|
||||||||||||
Marine transportation
|
$
|
1,471,893
|
$
|
1,663,090
|
$
|
1,770,684
|
||||||
Diesel engine services
|
298,780
|
484,442
|
795,634
|
|||||||||
Consolidated revenues
|
$
|
1,770,673
|
$
|
2,147,532
|
$
|
2,566,318
|
||||||
Operating profits:
|
||||||||||||
Marine transportation
|
$
|
257,102
|
$
|
374,842
|
$
|
429,864
|
||||||
Diesel engine services
|
3,186
|
18,921
|
60,063
|
|||||||||
General corporate expenses
|
(14,966
|
)
|
(14,773
|
)
|
(14,896
|
)
|
||||||
Gain (loss) on disposition of assets
|
(127
|
)
|
1,672
|
781
|
||||||||
245,195
|
380,662
|
475,812
|
||||||||||
Equity in earnings of affiliates
|
532
|
451
|
384
|
|||||||||
Other expense
|
(291
|
)
|
(663
|
)
|
(345
|
)
|
||||||
Interest expense
|
(17,690
|
)
|
(18,738
|
)
|
(21,461
|
)
|
||||||
Earnings before taxes on income
|
$
|
227,746
|
$
|
361,712
|
$
|
454,390
|
||||||
Identifiable assets:
|
||||||||||||
Marine transportation
|
$
|
3,622,348
|
$
|
3,451,553
|
$
|
3,317,696
|
||||||
Diesel engine services
|
628,290
|
637,549
|
736,129
|
|||||||||
4,250,638
|
4,089,102
|
4,053,825
|
||||||||||
Investment in affiliates
|
2,622
|
2,090
|
2,539
|
|||||||||
General corporate assets
|
50,239
|
61,089
|
81,250
|
|||||||||
Consolidated assets
|
$
|
4,303,499
|
$
|
4,152,281
|
$
|
4,137,614
|
Class of equipment
|
Number in
class
|
Average age
(in years)
|
Barrel
capacities
|
|||||||||
Inland tank barges (owned and leased):
|
||||||||||||
Regular double hull:
|
||||||||||||
20,000 barrels and under
|
362
|
13.4
|
4,128,000
|
|||||||||
Over 20,000 barrels
|
454
|
12.8
|
12,841,000
|
|||||||||
Specialty double hull
|
60
|
38.9
|
910,000
|
|||||||||
Total inland tank barges
|
876
|
14.9
|
17,879,000
|
|||||||||
Inland towboats (owned and chartered):
|
||||||||||||
800 to 1300 horsepower
|
71
|
39.1
|
||||||||||
1400 to 1900 horsepower
|
72
|
34.0
|
||||||||||
2000 to 2400 horsepower
|
56
|
12.1
|
||||||||||
2500 to 3200 horsepower
|
18
|
34.3
|
||||||||||
3300 to 4800 horsepower
|
10
|
36.8
|
||||||||||
Greater than 5000 horsepower
|
1
|
36.0
|
||||||||||
Spot charters (chartered trip to trip)
|
2
|
─
|
||||||||||
Total inland towboats
|
230
|
30.5
|
||||||||||
Coastal tank barges (owned and leased):
|
||||||||||||
Double hull:
|
||||||||||||
30,000 barrels and under
|
8
|
20.2
|
190,000
|
|||||||||
50,000 to 70,000 barrels
|
13
|
15.5
|
654,000
|
|||||||||
80,000 to 90,000 barrels
|
24
|
13.2
|
1,984,000
|
|||||||||
100,000 to 110,000 barrels
|
6
|
10.5
|
630,000
|
|||||||||
120,000 to 150,000 barrels
|
9
|
19.5
|
1,132,000
|
|||||||||
Over 150,000 barrels
|
9
|
17.7
|
1,566,000
|
|||||||||
Total coastal tank barges
|
69
|
15.6
|
6,156,000
|
|||||||||
Coastal tugboats (owned and chartered):
|
||||||||||||
1000 to 1900 horsepower
|
8
|
31.1
|
||||||||||
2000 to 2900 horsepower
|
6
|
33.2
|
||||||||||
3000 to 3900 horsepower
|
17
|
35.8
|
||||||||||
4000 to 4900 horsepower
|
19
|
24.5
|
||||||||||
5000 to 6900 horsepower
|
13
|
25.5
|
||||||||||
Greater than 7000 horsepower
|
12
|
19.9
|
||||||||||
Total coastal tugboats
|
75
|
27.9
|
Deadweight
Tonnage
|
||||||||||||
Offshore dry-bulk cargo barges (owned)
|
6
|
22.9
|
111,000
|
|||||||||
Offshore tugboats and docking tugboat (owned and chartered)
|
7
|
30.5
|
2016
|
2015
|
2014
|
||||||||||||||||||||||
Amounts
|
%
|
Amounts
|
%
|
Amounts
|
%
|
|||||||||||||||||||
Manufacturing
|
$
|
3,177
|
1
|
%
|
$
|
94,812
|
20
|
%
|
$
|
261,553
|
33
|
%
|
||||||||||||
Overhauls and service
|
181,035
|
61
|
251,447
|
52
|
366,477
|
46
|
||||||||||||||||||
Direct parts sales
|
114,568
|
38
|
138,183
|
28
|
167,604
|
21
|
||||||||||||||||||
$
|
298,780
|
100
|
%
|
$
|
484,442
|
100
|
%
|
$
|
795,634
|
100
|
%
|
Name
|
Age
|
Positions and Offices
|
||
Joseph H. Pyne
|
69
|
Chairman of the Board
|
||
David W. Grzebinski
|
55
|
President and Chief Executive Officer
|
||
C. Andrew Smith
|
46
|
Executive Vice President and Chief Financial Officer
|
||
Joseph H. Reniers
|
42
|
Executive Vice President– Diesel Engine Services and Supply Chain
|
||
William G. Ivey
|
73
|
President – Marine Transportation Group, Kirby Inland Marine and Kirby Offshore Marine
|
||
Dorman L. Strahan
|
60
|
President – Kirby Engine Systems
|
||
Christian G. O’Neil
|
44
|
Executive Vice President and Chief Operating Officer–Kirby Inland Marine and Kirby Offshore Marine
|
||
Kim B. Clarke
|
61
|
Vice President – Human Resources
|
||
Ronald A. Dragg
|
53
|
Vice President, Controller and Assistant Secretary
|
||
James F. Farley
|
65
|
Vice President – Industry Relations
|
||
Amy D. Husted
|
48
|
Vice President and General Counsel
|
||
David R. Mosley
|
52
|
Vice President and Chief Information Officer
|
||
Renato A. Castro
|
45
|
Treasurer
|
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity
Securities
|
Sales Price
|
||||||||
High
|
Low
|
|||||||
2017
|
||||||||
First Quarter (through February 22, 2017)
|
$
|
73.40
|
$
|
61.65
|
||||
2016
|
||||||||
First Quarter
|
63.03
|
44.63
|
||||||
Second Quarter
|
73.25
|
57.92
|
||||||
Third Quarter
|
64.85
|
50.80
|
||||||
Fourth Quarter
|
70.90
|
55.11
|
||||||
2015
|
||||||||
First Quarter
|
82.91
|
70.89
|
||||||
Second Quarter
|
84.24
|
73.31
|
||||||
Third Quarter
|
78.72
|
59.54
|
||||||
Fourth Quarter
|
69.05
|
50.42
|
December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
Marine transportation
|
$
|
1,471,893
|
$
|
1,663,090
|
$
|
1,770,684
|
$
|
1,713,167
|
$
|
1,408,893
|
||||||||||
Diesel engine services
|
298,780
|
484,442
|
795,634
|
529,028
|
703,765
|
|||||||||||||||
$
|
1,770,673
|
$
|
2,147,532
|
$
|
2,566,318
|
$
|
2,242,195
|
$
|
2,112,658
|
|||||||||||
Net earnings attributable to Kirby
|
$
|
141,406
|
$
|
226,684
|
$
|
282,006
|
$
|
253,061
|
$
|
209,438
|
||||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||||||
Basic
|
$
|
2.63
|
$
|
4.12
|
$
|
4.95
|
$
|
4.46
|
$
|
3.75
|
||||||||||
Diluted
|
$
|
2.62
|
$
|
4.11
|
$
|
4.93
|
$
|
4.44
|
$
|
3.73
|
||||||||||
Common stock outstanding:
|
||||||||||||||||||||
Basic
|
53,454
|
54,729
|
56,674
|
56,354
|
55,466
|
|||||||||||||||
Diluted
|
53,512
|
54,826
|
56,867
|
56,552
|
55,674
|
December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Property and equipment, net
|
$
|
2,921,374
|
$
|
2,778,980
|
$
|
2,589,498
|
$
|
2,370,803
|
$
|
2,315,165
|
||||||||||
Total assets
|
$
|
4,303,499
|
$
|
4,152,281
|
$
|
4,137,614
|
$
|
3,675,860
|
$
|
3,645,060
|
||||||||||
Long-term debt, including current portion
|
$
|
722,802
|
$
|
774,849
|
$
|
712,405
|
$
|
742,493
|
$
|
1,127,042
|
||||||||||
Total equity
|
$
|
2,412,867
|
$
|
2,279,196
|
$
|
2,264,913
|
$
|
2,022,153
|
$
|
1,707,054
|
2016
|
2015
|
% Change
2015 to
2016
|
2014
|
% Change
2014 to
2015
|
||||||||||||||||
Marine transportation revenues
|
$
|
1,471,893
|
$
|
1,663,090
|
(11
|
)%
|
$
|
1,770,684
|
(6
|
)%
|
||||||||||
Costs and expenses:
|
||||||||||||||||||||
Costs of sales and operating expenses
|
900,766
|
981,525
|
(8
|
)
|
1,053,390
|
(7
|
)
|
|||||||||||||
Selling, general and administrative
|
108,917
|
112,193
|
(3
|
)
|
119,087
|
(6
|
)
|
|||||||||||||
Taxes, other than on income
|
20,817
|
18,732
|
11
|
14,324
|
31
|
|||||||||||||||
Depreciation and amortization
|
184,291
|
175,798
|
5
|
154,019
|
14
|
|||||||||||||||
1,214,791
|
1,288,248
|
(6
|
)
|
1,340,820
|
(4
|
)
|
||||||||||||||
Operating income
|
$
|
257,102
|
$
|
374,842
|
(31
|
)%
|
$
|
429,864
|
(13
|
)%
|
||||||||||
Operating margins
|
17.5
|
%
|
22.5
|
%
|
24.3
|
%
|
Markets Serviced
|
2016
Revenue
Distribution
|
Products Moved
|
Drivers
|
|||
Petrochemicals
|
49%
|
Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene
|
Consumer non-durables —70%
Consumer durables — 30%
|
|||
Black Oil
|
25%
|
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
|
23%
|
Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol
|
Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization
|
|||
Agricultural Chemicals
|
3%
|
Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia
|
Corn, Cotton and Wheat Production, Chemical Feedstock Usage
|
2016
|
2015
|
% Change
2015 to
2016
|
2014
|
% Change
2014 to
2015
|
|||||||||||||||||
Diesel engine services revenues
|
$
|
298,780
|
$
|
484,442
|
(38
|
)
|
%
|
$
|
795,634
|
(39
|
)%
|
||||||||||
`
|
|||||||||||||||||||||
Costs and expenses:
|
|||||||||||||||||||||
Costs of sales and operating expenses
|
226,186
|
380,841
|
(41
|
)
|
641,492
|
(41
|
)
|
||||||||||||||
Selling, general and administrative
|
54,714
|
70,267
|
(22
|
)
|
80,309
|
(13
|
)
|
||||||||||||||
Taxes, other than on income
|
1,861
|
1,915
|
(3
|
)
|
2,307
|
(17
|
)
|
||||||||||||||
Depreciation and amortization
|
12,833
|
12,498
|
3
|
11,463
|
9
|
||||||||||||||||
295,594
|
465,521
|
(37
|
)
|
735,571
|
(37
|
)
|
|||||||||||||||
Operating income
|
$
|
3,186
|
$
|
18,921
|
(83
|
)
|
%
|
$
|
60,063
|
(68
|
)%
|
||||||||||
Operating margins
|
1.1
|
%
|
3.9
|
%
|
7.5
|
%
|
Markets Serviced
|
2016
Revenue
Distribution
|
Customers
|
||
Land-Based
|
48%
|
Land-Based Oilfield Services, Oil and Gas Operators and Producers, On-Highway Transportation
|
||
Marine
|
36%
|
Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers
|
||
Power Generation
|
16%
|
Standby Power Generation, Pumping Stations
|
2016
|
2015
|
% Change
2015 to
2016
|
2014
|
% Change
2014 to
2015
|
||||||||||||||||
Equity in earnings of affiliates
|
$
|
532
|
$
|
451
|
18
|
%
|
$
|
384
|
17
|
%
|
||||||||||
Other expense
|
(291
|
)
|
(663
|
)
|
(56
|
)%
|
(345
|
)
|
92
|
%
|
||||||||||
Noncontrolling interests
|
(1,398
|
)
|
(1,286
|
)
|
9
|
%
|
(2,602
|
)
|
(51
|
)%
|
||||||||||
Interest expense
|
(17,690
|
)
|
(18,738
|
)
|
(6
|
)%
|
(21,461
|
)
|
(13
|
)%
|
2016
|
2015
|
% Change
2015 to
2016
|
2014
|
% Change
2014 to
2015
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Current assets
|
$
|
646,555
|
$
|
640,776
|
1
|
%
|
$
|
803,154
|
(20
|
)%
|
||||||||||
Property and equipment, net
|
2,921,374
|
2,778,980
|
5
|
2,589,498
|
7
|
|||||||||||||||
Investment in affiliates
|
2,622
|
2,090
|
25
|
2,539
|
(18
|
)
|
||||||||||||||
Goodwill
|
598,131
|
586,718
|
2
|
591,405
|
(1
|
)
|
||||||||||||||
Other assets
|
134,817
|
143,717
|
(6
|
)
|
151,018
|
(5
|
)
|
|||||||||||||
$
|
4,303,499
|
$
|
4,152,281
|
4
|
%
|
$
|
4,137,614
|
—
|
%
|
|||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||
Current liabilities
|
$
|
358,338
|
$
|
361,917
|
(1
|
)%
|
$
|
594,027
|
(39
|
)%
|
||||||||||
Long-term debt-less current portion
|
722,802
|
774,849
|
(7
|
)
|
595,705
|
30
|
||||||||||||||
Deferred income taxes
|
719,057
|
669,808
|
7
|
595,769
|
12
|
|||||||||||||||
Other long-term liabilities
|
90,435
|
66,511
|
36
|
87,200
|
(24
|
)
|
||||||||||||||
Total equity
|
2,412,867
|
2,279,196
|
6
|
2,264,913
|
1
|
|||||||||||||||
$
|
4,303,499
|
$
|
4,152,281
|
4
|
%
|
$
|
4,137,614
|
—
|
%
|
Payments Due By Period
|
||||||||||||||||||||
Total
|
Less Than
1 Year
|
2-3
Years
|
4-5
Years
|
After
5 Years
|
||||||||||||||||
Long-term debt
|
$
|
725,986
|
$
|
—
|
$
|
—
|
$
|
375,986
|
$
|
350,000
|
||||||||||
Non-cancelable operating leases — barges
|
31,579
|
10,419
|
13,299
|
5,387
|
2,474
|
|||||||||||||||
Non-cancelable operating leases — towing vessels
|
104,795
|
83,949
|
20,846
|
—
|
—
|
|||||||||||||||
Non-cancelable operating leases — land, buildings and equipment
|
120,810
|
12,027
|
19,878
|
14,515
|
74,390
|
|||||||||||||||
Barge and towing vessel construction contracts
|
95,603
|
54,032
|
41,571
|
—
|
—
|
|||||||||||||||
$
|
1,078,773
|
$
|
160,427
|
$
|
95,594
|
$
|
395,888
|
$
|
426,864
|
/s/ KPMG LLP
|
|
Houston, Texas
|
|
February 23, 2017
|
/s/ KPMG LLP
|
|
Houston, Texas
|
|
February 23, 2017
|
2016
|
2015
|
|||||||
($ in thousands)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
5,634
|
$
|
5,885
|
||||
Accounts receivable:
|
||||||||
Trade — less allowance for doubtful accounts of $7,240 ($9,374 in 2015)
|
297,177
|
290,931
|
||||||
Other
|
95,327
|
102,443
|
||||||
Inventories — at lower of average cost or market
|
185,402
|
184,511
|
||||||
Prepaid expenses and other current assets
|
49,411
|
45,283
|
||||||
Deferred income taxes
|
13,604
|
11,723
|
||||||
Total current assets
|
646,555
|
640,776
|
||||||
Property and equipment:
|
||||||||
Marine transportation equipment
|
4,071,972
|
3,806,850
|
||||||
Land, buildings and equipment
|
256,925
|
252,913
|
||||||
4,328,897
|
4,059,763
|
|||||||
Accumulated depreciation
|
1,407,523
|
1,280,783
|
||||||
Property and equipment — net
|
2,921,374
|
2,778,980
|
||||||
Investment in affiliates
|
2,622
|
2,090
|
||||||
Goodwill
|
598,131
|
586,718
|
||||||
Other assets
|
134,817
|
143,717
|
||||||
Total assets
|
$
|
4,303,499
|
$
|
4,152,281
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
—
|
$
|
—
|
||||
Income taxes payable
|
3,288
|
3,564
|
||||||
Accounts payable
|
134,571
|
132,799
|
||||||
Accrued liabilities:
|
||||||||
Interest
|
5,397
|
5,412
|
||||||
Insurance premiums and claims
|
123,371
|
111,705
|
||||||
Employee compensation
|
26,916
|
37,243
|
||||||
Taxes — other than on income
|
15,481
|
13,525
|
||||||
Other
|
13,313
|
16,369
|
||||||
Deferred revenues
|
36,001
|
41,300
|
||||||
Total current liabilities
|
358,338
|
361,917
|
||||||
Long-term debt — less current portion
|
722,802
|
774,849
|
||||||
Deferred income taxes
|
719,057
|
669,808
|
||||||
Other long-term liabilities
|
90,435
|
66,511
|
||||||
Total long-term liabilities
|
1,532,294
|
1,511,168
|
||||||
Contingencies and commitments
|
—
|
—
|
||||||
Equity:
|
||||||||
Kirby stockholders’ equity:
|
||||||||
Common stock, $.10 par value per share. Authorized 120,000,000 shares, issued 59,776,000 in 2016 and 2015
|
5,978
|
5,978
|
||||||
Additional paid-in capital
|
432,459
|
434,783
|
||||||
Accumulated other comprehensive income — net
|
(51,007
|
)
|
(44,686
|
)
|
||||
Retained earnings
|
2,342,236
|
2,200,830
|
||||||
Treasury stock — at cost, 5,921,000 shares in 2016 and 6,056,000 in 2015
|
(320,348
|
)
|
(328,094
|
)
|
||||
Total Kirby stockholders’ equity
|
2,409,318
|
2,268,811
|
||||||
Noncontrolling interests
|
3,549
|
10,385
|
||||||
Total equity
|
2,412,867
|
2,279,196
|
||||||
Total liabilities and equity
|
$
|
4,303,499
|
$
|
4,152,281
|
2016
|
2015
|
2014
|
||||||||||
($ in thousands, except per share amounts)
|
||||||||||||
Revenues:
|
||||||||||||
Marine transportation
|
$
|
1,471,893
|
$
|
1,663,090
|
$
|
1,770,684
|
||||||
Diesel engine services
|
298,780
|
484,442
|
795,634
|
|||||||||
Total revenues
|
1,770,673
|
2,147,532
|
2,566,318
|
|||||||||
Costs and expenses:
|
||||||||||||
Costs of sales and operating expenses
|
1,126,952
|
1,362,366
|
1,694,882
|
|||||||||
Selling, general and administrative
|
174,752
|
193,237
|
210,416
|
|||||||||
Taxes, other than on income
|
22,730
|
20,699
|
16,677
|
|||||||||
Depreciation and amortization
|
200,917
|
192,240
|
169,312
|
|||||||||
Loss (gain) on disposition of assets
|
127
|
(1,672
|
)
|
(781
|
)
|
|||||||
Total costs and expenses
|
1,525,478
|
1,766,870
|
2,090,506
|
|||||||||
Operating income
|
245,195
|
380,662
|
475,812
|
|||||||||
Equity in earnings of affiliates
|
532
|
451
|
384
|
|||||||||
Other expense
|
(291
|
)
|
(663
|
)
|
(345
|
)
|
||||||
Interest expense
|
(17,690
|
)
|
(18,738
|
)
|
(21,461
|
)
|
||||||
Earnings before taxes on income
|
227,746
|
361,712
|
454,390
|
|||||||||
Provision for taxes on income
|
(84,942
|
)
|
(133,742
|
)
|
(169,782
|
)
|
||||||
Net earnings
|
142,804
|
227,970
|
284,608
|
|||||||||
Less: Net earnings attributable to noncontrolling interests
|
(1,398
|
)
|
(1,286
|
)
|
(2,602
|
)
|
||||||
Net earnings attributable to Kirby
|
$
|
141,406
|
$
|
226,684
|
$
|
282,006
|
||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||
Basic
|
$
|
2.63
|
$
|
4.12
|
$
|
4.95
|
||||||
Diluted
|
$
|
2.62
|
$
|
4.11
|
$
|
4.93
|
2016
|
2015
|
2014
|
||||||||||
($ in thousands)
|
||||||||||||
Net earnings
|
$
|
142,804
|
$
|
227,970
|
$
|
284,608
|
||||||
Other comprehensive income (loss), net of taxes:
|
||||||||||||
Pension and postretirement benefits
|
(6,321
|
)
|
16,322
|
(44,294
|
)
|
|||||||
Foreign currency translation adjustments
|
—
|
29
|
(35
|
)
|
||||||||
Change in fair value of derivative instruments
|
—
|
—
|
85
|
|||||||||
Total other comprehensive income (loss), net of taxes
|
(6,321
|
)
|
16,351
|
(44,244
|
)
|
|||||||
Total comprehensive income, net of taxes
|
136,483
|
244,321
|
240,364
|
|||||||||
Net earnings attributable to noncontrolling interests
|
(1,398
|
)
|
(1,286
|
)
|
(2,602
|
)
|
||||||
Comprehensive income attributable to Kirby
|
$
|
135,085
|
$
|
243,035
|
$
|
237,762
|
2016
|
2015
|
2014
|
||||||||||
($ in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
142,804
|
$
|
227,970
|
$
|
284,608
|
||||||
Adjustments to reconcile net earnings to net cash provided by operations:
|
||||||||||||
Depreciation and amortization
|
200,917
|
192,240
|
169,312
|
|||||||||
Provision (credit) for doubtful accounts
|
(467
|
)
|
1,426
|
3,577
|
||||||||
Provision for deferred income taxes
|
51,296
|
62,755
|
77,976
|
|||||||||
Loss (gain) on disposition of assets
|
127
|
(1,672
|
)
|
(781
|
)
|
|||||||
Equity in earnings of affiliates, net of distributions and contributions
|
(532
|
)
|
449
|
(384
|
)
|
|||||||
Amortization of unearned share-based compensation
|
11,675
|
11,104
|
11,591
|
|||||||||
Amortization of major maintenance costs
|
19,869
|
22,126
|
16,409
|
|||||||||
Amortization of debt issuance costs
|
801
|
1,377
|
2,362
|
|||||||||
Increase (decrease) in cash flows resulting from changes in:
|
||||||||||||
Accounts receivable
|
(12,750
|
)
|
129,908
|
(176,544
|
)
|
|||||||
Inventory
|
3,182
|
(7,320
|
)
|
(56,468
|
)
|
|||||||
Other assets
|
(30,853
|
)
|
(15,551
|
)
|
(14,145
|
)
|
||||||
Income taxes payable
|
15,413
|
477
|
(4,544
|
)
|
||||||||
Accounts payable
|
(1,739
|
)
|
(81,808
|
)
|
44,645
|
|||||||
Accrued and other liabilities
|
14,295
|
(22,176
|
)
|
81,295
|
||||||||
Net cash provided by operating activities
|
414,038
|
521,305
|
438,909
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Capital expenditures
|
(231,066
|
)
|
(345,475
|
)
|
(355,144
|
)
|
||||||
Acquisitions of businesses and marine equipment
|
(137,072
|
)
|
(41,250
|
)
|
(31,800
|
)
|
||||||
Proceeds from disposition of assets
|
18,617
|
24,429
|
10,393
|
|||||||||
Net cash used in investing activities
|
(349,521
|
)
|
(362,296
|
)
|
(376,551
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Borrowings (payments) on bank credit facilities, net
|
(52,848
|
)
|
160,784
|
75,550
|
||||||||
Payments on long-term debt
|
—
|
(100,000
|
)
|
(108,000
|
)
|
|||||||
Return of investment to noncontrolling interests
|
(1,976
|
)
|
(1,778
|
)
|
(3,192
|
)
|
||||||
Proceeds from exercise of stock options
|
321
|
3,712
|
7,519
|
|||||||||
Purchase of treasury stock
|
(1,827
|
)
|
(241,105
|
)
|
(15,321
|
)
|
||||||
Payment of contingent liability
|
—
|
—
|
(4,756
|
)
|
||||||||
Acquisitions of noncontrolling interest
|
(8,438
|
)
|
—
|
—
|
||||||||
Excess tax benefit from equity compensation plans
|
—
|
964
|
6,119
|
|||||||||
Net cash used in financing activities
|
(64,768
|
)
|
(177,423
|
)
|
(42,081
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
(251
|
)
|
(18,414
|
)
|
20,277
|
|||||||
Cash and cash equivalents, beginning of year
|
5,885
|
24,299
|
4,022
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
5,634
|
$
|
5,885
|
$
|
24,299
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Interest paid
|
$
|
19,878
|
$
|
20,586
|
$
|
19,622
|
||||||
Income taxes paid
|
$
|
18,162
|
$
|
69,584
|
$
|
90,460
|
||||||
Capital expenditures included in accounts payable
|
$
|
(2,037
|
)
|
$
|
2,206
|
$
|
—
|
|||||
Fair value of property transferred in acquisition
|
$
|
3,681
|
$
|
—
|
$
|
—
|
2016
|
2015
|
2014
|
||||||||||
($ in thousands)
|
||||||||||||
Common stock:
|
||||||||||||
Balance at beginning and end of year
|
$
|
5,978
|
$
|
5,978
|
$
|
5,978
|
||||||
Additional paid-in capital:
|
||||||||||||
Balance at beginning of year
|
$
|
434,783
|
$
|
428,475
|
$
|
410,615
|
||||||
Excess (deficit) of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued
|
(755
|
)
|
3,530
|
8,345
|
||||||||
Tax benefit (expense) realized from equity compensation plans
|
(824
|
)
|
964
|
6,119
|
||||||||
Issuance of restricted stock, net of forfeitures
|
(10,218
|
)
|
(9,290
|
)
|
(8,195
|
)
|
||||||
Amortization of unearned compensation
|
11,675
|
11,104
|
11,591
|
|||||||||
Acquisitions of noncontrolling interests
|
(2,202
|
)
|
—
|
—
|
||||||||
Balance at end of year
|
$
|
432,459
|
$
|
434,783
|
$
|
428,475
|
||||||
Accumulated other comprehensive income:
|
||||||||||||
Balance at beginning of year
|
$
|
(44,686
|
)
|
$
|
(61,037
|
)
|
$
|
(16,793
|
)
|
|||
Other comprehensive income (loss), net of taxes
|
(6,321
|
)
|
16,351
|
(44,244
|
)
|
|||||||
Balance at end of year
|
$
|
(51,007
|
)
|
$
|
(44,686
|
)
|
$
|
(61,037
|
)
|
|||
Retained earnings:
|
||||||||||||
Balance at beginning of year
|
$
|
2,200,830
|
$
|
1,974,146
|
$
|
1,692,140
|
||||||
Net earnings attributable to Kirby for the year
|
141,406
|
226,684
|
282,006
|
|||||||||
Balance at end of year
|
$
|
2,342,236
|
$
|
2,200,830
|
$
|
1,974,146
|
||||||
Treasury stock:
|
||||||||||||
Balance at beginning of year
|
$
|
(328,094
|
)
|
$
|
(93,526
|
)
|
$
|
(81,254
|
)
|
|||
Purchase of treasury stock (35,000 in 2016 and 3,316,000 in 2015)
|
(1,827
|
)
|
(241,105
|
)
|
(15,321
|
)
|
||||||
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (170,000 in 2016, 166,000 in 2015 and 211,000 in 2014)
|
9,573
|
6,537
|
3,049
|
|||||||||
Balance at end of year
|
$
|
(320,348
|
)
|
$
|
(328,094
|
)
|
$
|
(93,526
|
)
|
|||
Noncontrolling interests:
|
||||||||||||
Balance at beginning of year
|
$
|
10,385
|
$
|
10,877
|
$
|
11,467
|
||||||
Net earnings attributable to noncontrolling interests
|
1,398
|
1,286
|
2,602
|
|||||||||
Return of investment to noncontrolling interests
|
(1,976
|
)
|
(1,778
|
)
|
(3,192
|
)
|
||||||
Acquisitions of noncontrolling interests
|
(6,258
|
)
|
—
|
—
|
||||||||
Balance at the end of year
|
$
|
3,549
|
$
|
10,385
|
$
|
10,877
|
December 31,
2016
|
December 31,
2015
|
|||||||
Finished goods
|
$
|
178,740
|
$
|
163,501
|
||||
Work in process
|
6,662
|
21,010
|
||||||
$
|
185,402
|
$
|
184,511
|
2016
|
2015
|
|||||||
Long-term debt, including current portion:
|
||||||||
$550,000,000 revolving credit facility due April 30, 2020
|
$
|
225,986
|
$
|
278,834
|
||||
$150,000,000 senior notes Series A due February 27, 2020
|
150,000
|
150,000
|
||||||
$350,000,000 senior notes Series B due February 27, 2023
|
350,000
|
350,000
|
||||||
$10,000,000 credit line due June 30, 2017
|
—
|
—
|
||||||
$
|
725,986
|
$
|
778,834
|
|||||
Unamortized debt issuance costs
|
(3,184
|
)
|
(3,985
|
)
|
||||
$
|
722,802
|
$
|
774,849
|
2017
|
$
|
—
|
||
2018
|
—
|
|||
2019
|
—
|
|||
2020
|
375,986
|
|||
2021
|
—
|
|||
Thereafter
|
350,000
|
|||
$
|
725,986
|
2016
|
2015
|
2014
|
||||||||||
Earnings before taxes on income — United States
|
$
|
227,746
|
$
|
361,712
|
$
|
454,390
|
||||||
Provision for taxes on income:
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$
|
28,919
|
$
|
64,707
|
$
|
81,953
|
||||||
Deferred
|
49,685
|
59,582
|
72,920
|
|||||||||
State and local
|
6,338
|
9,453
|
14,909
|
|||||||||
$
|
84,942
|
$
|
133,742
|
$
|
169,782
|
2016
|
2015
|
2014
|
||||||||||
United States income tax statutory rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||||
State and local taxes, net of federal benefit
|
1.8
|
1.7
|
2.2
|
|||||||||
Other – net
|
.5
|
.3
|
.2
|
|||||||||
37.3
|
%
|
37.0
|
%
|
37.4
|
%
|
2016
|
2015
|
|||||||
Current deferred tax assets:
|
||||||||
Compensated absences
|
$
|
739
|
$
|
829
|
||||
Allowance for doubtful accounts
|
2,534
|
3,288
|
||||||
Insurance accruals
|
6,218
|
4,234
|
||||||
Other
|
4,113
|
3,372
|
||||||
$
|
13,604
|
$
|
11,723
|
|||||
Non-current deferred tax assets and liabilities:
|
||||||||
Deferred tax assets:
|
||||||||
Postretirement health care benefits
|
$
|
2,234
|
$
|
2,501
|
||||
Insurance accruals
|
2,910
|
3,410
|
||||||
Deferred compensation
|
11,124
|
10,534
|
||||||
Unrealized loss on defined benefit plans
|
28,832
|
25,245
|
||||||
Operating loss carryforwards
|
7,846
|
5,188
|
||||||
Other
|
21,622
|
20,702
|
||||||
Valuation allowances
|
(7,417 | ) | (4,716 | ) | ||||
67,151
|
62,864
|
|||||||
Deferred tax liabilities:
|
||||||||
Property
|
(654,751
|
)
|
(604,737
|
)
|
||||
Deferred state taxes
|
(54,812
|
)
|
(53,542
|
)
|
||||
Pension benefits
|
(2,799
|
)
|
(8,471
|
)
|
||||
Goodwill and other intangibles
|
(51,551
|
)
|
(44,185
|
)
|
||||
Other
|
(22,295
|
)
|
(21,737
|
)
|
||||
(786,208
|
)
|
(732,672
|
)
|
|||||
$
|
(719,057
|
)
|
$
|
(669,808
|
)
|
2016
|
2015
|
2014
|
||||||||||
Balance at beginning of year
|
$
|
1,958
|
$
|
1,171
|
$
|
949
|
||||||
Additions based on tax positions related to the current year
|
187
|
339
|
470
|
|||||||||
Additions for tax positions of prior years
|
867
|
785
|
39
|
|||||||||
Reductions for tax positions of prior years
|
(441
|
)
|
(337
|
)
|
(287
|
)
|
||||||
Settlements
|
(552
|
)
|
—
|
—
|
||||||||
Balance at end of year
|
$
|
2,019
|
$
|
1,958
|
$
|
1,171
|
2016
|
2015
|
2014
|
||||||||||
Rental expense:
|
||||||||||||
Marine equipment — barges
|
$
|
13,791
|
$
|
14,092
|
$
|
19,780
|
||||||
Marine equipment — towing vessels
|
137,609
|
143,067
|
136,331
|
|||||||||
Other buildings and equipment
|
11,182
|
9,383
|
9,146
|
|||||||||
Rental expense
|
$
|
162,582
|
$
|
166,542
|
$
|
165,257
|
Land,
Buildings
|
Marine Equipment
|
|||||||||||||||
And
Equipment
|
Barges
|
Towing
Vessels
|
Total
|
|||||||||||||
2017
|
$
|
12,027
|
$
|
10,419
|
$
|
83,949
|
$
|
106,395
|
||||||||
2018
|
11,049
|
8,718
|
20,532
|
40,299
|
||||||||||||
2019
|
8,829
|
4,581
|
314
|
13,724
|
||||||||||||
2020
|
7,508
|
3,813
|
—
|
11,321
|
||||||||||||
2021
|
7,007
|
1,574
|
—
|
8,581
|
||||||||||||
Thereafter
|
74,390
|
2,474
|
—
|
76,864
|
||||||||||||
$
|
120,810
|
$
|
31,579
|
$
|
104,795
|
$
|
257,184
|
2016
|
2015
|
2014
|
||||||||||
Compensation cost
|
$
|
11,675
|
$
|
11,104
|
$
|
11,591
|
||||||
Income tax benefit
|
$
|
4,378
|
$
|
4,120
|
$
|
4,358
|
Outstanding
Non-
Qualified or
Nonincentive
Stock
Awards
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding at December 31, 2013
|
379,604
|
$
|
55.42
|
|||||
Granted
|
75,204
|
$
|
98.91
|
|||||
Exercised
|
(119,276
|
)
|
$
|
42.07
|
||||
Canceled or expired
|
(12,576
|
)
|
$
|
68.89
|
||||
Outstanding at December 31, 2014
|
322,956
|
$
|
69.95
|
|||||
Granted
|
114,894
|
$
|
74.99
|
|||||
Exercised
|
—
|
$
|
—
|
|||||
Canceled or expired
|
(7,418
|
)
|
$
|
86.28
|
||||
Outstanding at December 31, 2015
|
430,432
|
$
|
71.01
|
|||||
Granted
|
186,706
|
$
|
53.50
|
|||||
Exercised
|
—
|
$
|
—
|
|||||
Canceled or expired
|
(16,017
|
)
|
$
|
80.17
|
||||
Outstanding at December 31, 2016
|
601,121
|
$
|
65.33
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||||||||
Range of Exercise
Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life in
Years
|
Weighted
Average
Exercise
Price
|
Aggregated
Intrinsic
Value
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Aggregated
Intrinsic
Value
|
|||||||||||||||||||||
$
|
31.35 – $36.35
|
16,910
|
0.1
|
$
|
32.82
|
16,910
|
$
|
32.82
|
||||||||||||||||||||
$
|
46.74 – $51.23
|
212,335
|
4.8
|
$
|
50.03
|
56,629
|
$
|
46.74
|
||||||||||||||||||||
$
|
64.89 – $74.99
|
302,735
|
4.1
|
$
|
70.29
|
202,309
|
$
|
69.51
|
||||||||||||||||||||
$
|
93.64 – $96.85
|
33,987
|
4.1
|
$
|
94.31
|
22,658
|
$
|
94.31
|
||||||||||||||||||||
$
|
101.46 – $104.37
|
35,154
|
4.2
|
$
|
102.60
|
23,436
|
$
|
102.60
|
||||||||||||||||||||
$
|
31.35 – $104.37
|
601,121
|
4.2
|
$
|
65.33
|
$ |
4,175,000
|
321,942
|
$
|
67.73
|
$ |
1,747,000
|
Unvested
Restricted
Stock Award
Shares
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
|||||||
Nonvested balance at December 31, 2013
|
399,278
|
$
|
54.92
|
|||||
Granted
|
97,706
|
$
|
97.46
|
|||||
Vested
|
(141,870
|
)
|
$
|
45.64
|
||||
Forfeited
|
(33,661
|
)
|
$
|
63.56
|
||||
Nonvested balance at December 31, 2014
|
321,453
|
$
|
71.04
|
|||||
Granted
|
122,740
|
$
|
75.04
|
|||||
Vested
|
(113,958
|
)
|
$
|
60.73
|
||||
Forfeited
|
(18,508
|
)
|
$
|
82.00
|
||||
Nonvested balance at December 31, 2015
|
311,727
|
$
|
75.73
|
|||||
Granted
|
190,610
|
$
|
53.56
|
|||||
Vested
|
(105,109
|
)
|
$
|
69.93
|
||||
Forfeited
|
(19,573
|
)
|
$
|
76.06
|
||||
Nonvested balance at December 31, 2016
|
377,655
|
$
|
66.14
|
Outstanding
Non-
Qualified or
Nonincentive
Stock
Awards
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding at December 31, 2013
|
320,322
|
$
|
50.64
|
|||||
Granted
|
42,000
|
$
|
99.52
|
|||||
Exercised
|
(63,988
|
)
|
$
|
39.08
|
||||
Outstanding at December 31, 2014
|
298,334
|
$
|
60.01
|
|||||
Exercised
|
(77,905
|
)
|
$
|
47.65
|
||||
Outstanding at December 31, 2015
|
220,429
|
$
|
64.37
|
|||||
Exercised
|
(9,000
|
)
|
$
|
35.72
|
||||
Canceled or expired
|
(6,000
|
)
|
$
|
99.52
|
||||
Outstanding at December 31, 2016
|
205,429
|
$
|
64.60
|
Options Outstanding
|
Options Exercisable
|
||||||||||||||||||||||||||||
Range of Exercise
Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life in
Years
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
||||||||||||||||||||||
$
|
29.60 – $36.82
|
21,000
|
0.9
|
$
|
32.69
|
21,000
|
$
|
32.69
|
|||||||||||||||||||||
$
|
41.24 – $56.45
|
71,276
|
2.7
|
$
|
52.34
|
71,276
|
$
|
52.34
|
|||||||||||||||||||||
$
|
61.89 – $62.48
|
41,153
|
4.8
|
$
|
62.34
|
41,153
|
$
|
62.34
|
|||||||||||||||||||||
$
|
75.17 – $99.52
|
72,000
|
5.7
|
$
|
87.35
|
72,000
|
$
|
87.35
|
|||||||||||||||||||||
$
|
29.60 – $99.52
|
205,429
|
4.0
|
$
|
64.60
|
$ |
1,891,000
|
205,429
|
$
|
64.60
|
$ |
1,891,000
|
Unvested
Restricted
Stock
Award
Shares
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
|||||||
Nonvested balance at December 31, 2013
|
384
|
$
|
75.65
|
|||||
Granted
|
8,160
|
$
|
99.52
|
|||||
Vested
|
(8,252
|
)
|
$
|
98.41
|
||||
Nonvested balance at December 31, 2014
|
292
|
$
|
99.52
|
|||||
Granted
|
20,350
|
$
|
78.52
|
|||||
Vested
|
(18,851
|
)
|
$
|
79.77
|
||||
Nonvested balance at December 31, 2015
|
1,791
|
$
|
68.73
|
|||||
Granted
|
23,074
|
$
|
64.89
|
|||||
Vested
|
(24,518
|
)
|
$
|
65.17
|
||||
Nonvested balance at December 31, 2016
|
347
|
$
|
64.89
|
2016
|
2015
|
2014
|
||||||||||
Dividend yield
|
None
|
None
|
None
|
|||||||||
Average risk-free interest rate
|
1.5
|
%
|
1.3
|
%
|
2.0
|
%
|
||||||
Stock price volatility
|
30
|
%
|
33
|
%
|
33
|
%
|
||||||
Estimated option term
|
Six years
|
Six years
|
Six years
or seven
years
|
Asset Category
|
2016
|
2015
|
Current
Minimum, Target
and Maximum
Allocation Policy
|
|||||||||
U.S. equity securities
|
51
|
%
|
50
|
%
|
30% — 50%— 70
|
%
|
||||||
International equity securities
|
19
|
%
|
18
|
%
|
0% — 20%— 30
|
%
|
||||||
Debt securities
|
30
|
%
|
28
|
%
|
15% — 30%— 55
|
%
|
||||||
Cash and cash equivalents
|
—
|
%
|
4
|
%
|
0% — 0%— 5
|
%
|
||||||
100
|
%
|
100
|
%
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||||||||||
Pension Plan
|
SERP
|
Welfare Plan
|
||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||
Change in benefit obligation
|
||||||||||||||||||||||||
Benefit obligation at beginning of year
|
$
|
297,325
|
$
|
315,075
|
$
|
1,526
|
$
|
1,637
|
$
|
891
|
$
|
1,264
|
||||||||||||
Service cost
|
13,402
|
14,683
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Interest cost
|
14,123
|
13,302
|
65
|
64
|
29
|
36
|
||||||||||||||||||
Actuarial loss (gain)
|
19,120
|
(39,474
|
)
|
12
|
(30
|
)
|
(198
|
)
|
(321
|
)
|
||||||||||||||
Gross benefits paid
|
(6,794
|
)
|
(6,261
|
)
|
(146
|
)
|
(145
|
)
|
(47
|
)
|
(88
|
)
|
||||||||||||
Benefit obligation at end of year
|
$
|
337,176
|
$
|
297,325
|
$
|
1,457
|
$
|
1,526
|
$
|
675
|
$
|
891
|
||||||||||||
Accumulated benefit obligation at end of year
|
$
|
272,591
|
$
|
238,775
|
$
|
1,457
|
$
|
1,526
|
$
|
675
|
$
|
891
|
||||||||||||
Weighted-average assumption used to determine benefit obligation at end of year
|
||||||||||||||||||||||||
Discount rate
|
4.2
|
%
|
4.5
|
%
|
4.2
|
%
|
4.5
|
%
|
4.2
|
%
|
4.5
|
%
|
||||||||||||
Rate of compensation increase
|
Service-
based
table
|
Service-
based
table
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Health care cost trend rate
|
||||||||||||||||||||||||
Initial rate
|
—
|
—
|
—
|
—
|
7.0
|
%
|
6.5
|
%
|
||||||||||||||||
Ultimate rate
|
—
|
—
|
—
|
—
|
5.0
|
%
|
5.0
|
%
|
||||||||||||||||
Years to ultimate
|
—
|
—
|
—
|
—
|
2021
|
2019
|
||||||||||||||||||
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation
|
||||||||||||||||||||||||
Increase
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
74
|
$
|
107
|
||||||||||||
Decrease
|
—
|
—
|
—
|
—
|
(64
|
)
|
(93
|
)
|
||||||||||||||||
Change in plan assets
|
||||||||||||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
243,588
|
$
|
242,275
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Actual return on plan assets
|
20,723
|
(2,426
|
)
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Employer contribution
|
—
|
10,000
|
146
|
145
|
47
|
88
|
||||||||||||||||||
Gross benefits paid
|
(6,794
|
)
|
(6,261
|
)
|
(146
|
)
|
(145
|
)
|
(47
|
)
|
(88
|
)
|
||||||||||||
Fair value of plan assets at end of year
|
$
|
257,517
|
$
|
243,588
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||||||||||
Pension Plan
|
SERP
|
Welfare Plan
|
||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||
Funded status at end of year
|
||||||||||||||||||||||||
Fair value of plan assets
|
$
|
257,517
|
$
|
243,588
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Benefit obligations
|
(337,176
|
)
|
(297,325
|
)
|
(1,457
|
)
|
(1,526
|
)
|
(675
|
)
|
(891
|
)
|
||||||||||||
Funded status and amount recognized at end of year
|
$
|
(79,659
|
)
|
$
|
(53,737
|
)
|
$
|
(1,457
|
)
|
$
|
(1,526
|
)
|
$
|
(675
|
)
|
$
|
(891
|
)
|
||||||
Amounts recognized in the consolidated balance sheets
|
||||||||||||||||||||||||
Noncurrent asset
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Current liability
|
—
|
—
|
(150
|
)
|
(149
|
)
|
(56
|
)
|
(68
|
)
|
||||||||||||||
Long-term liability
|
(79,659
|
)
|
(53,737
|
)
|
(1,307
|
)
|
(1,377
|
)
|
(619
|
)
|
(823
|
)
|
||||||||||||
Amounts recognized in accumulated other comprehensive income
|
||||||||||||||||||||||||
Net actuarial loss (gain)
|
$
|
87,658
|
$
|
77,940
|
$
|
494
|
$
|
508
|
$
|
(5,773
|
)
|
$
|
(6,319
|
)
|
||||||||||
Prior service cost (credit)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accumulated other compensation income
|
$
|
87,658
|
$
|
77,940
|
$
|
494
|
$
|
508
|
$
|
(5,773
|
)
|
$
|
(6,319
|
)
|
Pension Benefits
|
||||||||||||||||
Pension Plan
|
SERP
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Projected benefit obligation in excess of plan assets
|
||||||||||||||||
Projected benefit obligation at end of year
|
$
|
337,176
|
$
|
297,325
|
$
|
1,457
|
$
|
1,526
|
||||||||
Fair value of plan assets at end of year
|
257,517
|
243,588
|
—
|
—
|
Pension Benefits
|
||||||||||||||||
Pension Plan
|
SERP
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Accumulated benefit obligation in excess of plan assets
|
||||||||||||||||
Projected benefit obligation at end of year
|
$
|
337,176 | $ |
—
|
$
|
1,457
|
$
|
1,526
|
||||||||
Accumulated benefit obligation at end of year
|
272,591
|
—
|
1,457
|
1,526
|
||||||||||||
Fair value of plan assets at end of year
|
257,517
|
—
|
—
|
—
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||||||||||
Pension Plan
|
SERP
|
Welfare Plan
|
||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||
Expected employer contributions
|
||||||||||||||||||||||||
First year
|
$ |
—
|
$
|
—
|
$
|
153
|
$
|
152
|
$
|
50
|
$
|
70
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||||||||||
Pension Plan
|
SERP
|
Welfare Plan
|
||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||
Expected benefit payments (gross)
|
||||||||||||||||||||||||
Year one
|
$
|
8,032
|
$
|
7,678
|
$
|
153
|
$
|
152
|
$
|
58
|
$
|
81
|
||||||||||||
Year two
|
8,835
|
8,298
|
157
|
157
|
58
|
86
|
||||||||||||||||||
Year three
|
9,646
|
9,013
|
155
|
154
|
58
|
86
|
||||||||||||||||||
Year four
|
10,400
|
9,748
|
151
|
152
|
58
|
86
|
||||||||||||||||||
Year five
|
11,201
|
10,415
|
148
|
149
|
57
|
85
|
||||||||||||||||||
Next five years
|
70,419
|
63,860
|
514
|
608
|
199
|
341
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||||||||||
Pension Plan
|
SERP
|
Welfare Plan
|
||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||
Expected federal subsidy
|
||||||||||||||||||||||||
Year one
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(7
|
)
|
$
|
(11
|
)
|
||||||||||
Year two
|
—
|
—
|
—
|
—
|
(7
|
)
|
(11
|
)
|
||||||||||||||||
Year three
|
—
|
—
|
—
|
—
|
(7
|
)
|
(11
|
)
|
||||||||||||||||
Year four
|
—
|
—
|
—
|
—
|
(7
|
)
|
(12
|
)
|
||||||||||||||||
Year five
|
—
|
—
|
—
|
—
|
(7
|
)
|
(12
|
)
|
||||||||||||||||
Next five years
|
—
|
—
|
—
|
—
|
(33
|
)
|
(55
|
)
|
Pension Benefits
|
||||||||||||||||||||||||
Pension Plan
|
SERP
|
|||||||||||||||||||||||
2016
|
2015
|
2014
|
2016
|
2015
|
2014
|
|||||||||||||||||||
Components of net periodic benefit cost
|
||||||||||||||||||||||||
Service cost
|
$
|
13,402
|
$
|
14,683
|
$
|
10,645
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Interest cost
|
14,123
|
13,302
|
12,839
|
65
|
64
|
73
|
||||||||||||||||||
Expected return on plan assets
|
(16,805
|
)
|
(17,921
|
)
|
(18,858
|
)
|
—
|
—
|
—
|
|||||||||||||||
Amortization:
|
||||||||||||||||||||||||
Actuarial loss
|
5,484
|
7,728
|
701
|
26
|
28
|
16
|
||||||||||||||||||
Prior service credit
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net periodic benefit cost
|
16,204
|
17,792
|
5,327
|
91
|
92
|
89
|
||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income
|
||||||||||||||||||||||||
Current year actuarial loss (gain)
|
15,203
|
(19,127
|
)
|
72,737
|
12
|
(30
|
)
|
180
|
||||||||||||||||
Recognition of actuarial loss
|
(5,484
|
)
|
(7,728
|
)
|
(701
|
)
|
(26
|
)
|
(28
|
)
|
(16
|
)
|
||||||||||||
Recognition of prior service credit
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total recognized in other comprehensive income
|
9,719
|
(26,855
|
)
|
72,036
|
(14
|
)
|
(58
|
)
|
164
|
|||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
25,923
|
$
|
(9,063
|
)
|
$
|
77,363
|
$
|
77
|
$
|
34
|
$
|
253
|
|||||||||||
Weighted average assumptions used to determine net periodic benefit cost
|
||||||||||||||||||||||||
Discount rate
|
4.5
|
%
|
4.1
|
%
|
5.0
|
%
|
4.5
|
%
|
4.1
|
%
|
5.0
|
%
|
||||||||||||
Expected long-term rate of return on plan assets
|
7.0
|
%
|
7.5
|
%
|
7.5
|
%
|
—
|
—
|
—
|
|||||||||||||||
Rate of compensation increase
|
Service-
based
table
|
4.25
|
%
|
4.25
|
%
|
—
|
—
|
—
|
Pension Benefits
|
||||||||
Pension
Plan
|
SERP
|
|||||||
Actuarial loss
|
$
|
5,477
|
$
|
28
|
||||
Prior service credit
|
—
|
—
|
||||||
$
|
5,477
|
$
|
28
|
Other Postretirement Benefits
|
||||||||||||
Postretirement Welfare Plan
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Components of net periodic benefit cost
|
||||||||||||
Service cost
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Interest cost
|
29
|
36
|
110
|
|||||||||
Amortization:
|
||||||||||||
Actuarial gain
|
(747
|
)
|
(793
|
)
|
(649
|
)
|
||||||
Prior service cost
|
—
|
—
|
—
|
|||||||||
Net periodic benefit cost
|
(718
|
)
|
(757
|
)
|
(539
|
)
|
||||||
Other changes in benefit obligations recognized in other comprehensive income
|
||||||||||||
Current year actuarial gain
|
(198
|
)
|
(322
|
)
|
(1,065
|
)
|
||||||
Recognition of actuarial gain
|
747
|
793
|
649
|
|||||||||
Recognition of prior service cost
|
—
|
—
|
—
|
|||||||||
Adjustment for actual Medicare Part D reimbursement
|
(3
|
)
|
(3
|
)
|
(8
|
)
|
||||||
Total recognized in other comprehensive income
|
546
|
468
|
(424
|
)
|
||||||||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
(172
|
)
|
$
|
(289
|
)
|
$
|
(963
|
)
|
|||
Weighted average assumptions used to determine net periodic benefit cost
|
||||||||||||
Discount rate
|
4.5
|
%
|
4.1
|
%
|
5.0
|
%
|
||||||
Health care cost trend rate:
|
||||||||||||
Initial rate
|
6.5
|
%
|
7.0
|
%
|
7.0
|
%
|
||||||
Ultimate rate
|
5.0
|
%
|
5.0
|
%
|
5.0
|
%
|
||||||
Years to ultimate
|
2019
|
2019
|
2018
|
|||||||||
Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost
|
||||||||||||
Increase
|
$
|
4
|
$
|
5
|
$
|
7
|
||||||
Decrease
|
(3
|
)
|
(4
|
)
|
(6
|
)
|
Other
Postretirement
Benefits
|
||||
Postretirement
Welfare Plan
|
||||
Actuarial gain
|
$
|
(668
|
)
|
|
Prior service cost
|
—
|
|||
$
|
(668
|
)
|
2016
|
2015
|
2014
|
||||||||||||||||||||||||||||||||||
Gross
Amount
|
Income
Tax
(Provision)
Benefit
|
Net
Amount
|
Gross
Amount
|
Income
Tax
(Provision)
Benefit
|
Net
Amount
|
Gross
Amount
|
Income
Tax
(Provision)
Benefit
|
Net
Amount
|
||||||||||||||||||||||||||||
Pension and postretirement benefits (a):
|
||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss
|
$
|
4,763
|
$
|
(1,825
|
)
|
$
|
2,938
|
$
|
6,963
|
$
|
(2,667
|
)
|
$
|
4,296
|
$
|
68
|
$
|
(26
|
)
|
$
|
42
|
|||||||||||||||
Actuarial gains (losses)
|
(15,013
|
)
|
5,754
|
(9,259
|
)
|
19,482
|
(7,456
|
)
|
12,026
|
(71,843
|
)
|
27,507
|
(44,336
|
)
|
||||||||||||||||||||||
Foreign currency translation adjustments
|
—
|
—
|
—
|
29
|
—
|
29
|
(35
|
)
|
—
|
(35
|
)
|
|||||||||||||||||||||||||
Change in fair value of derivative instruments (b):
|
||||||||||||||||||||||||||||||||||||
Unrealized gains (losses)
|
—
|
—
|
—
|
—
|
—
|
—
|
24
|
(9
|
)
|
15
|
||||||||||||||||||||||||||
Reclassified to net earnings
|
—
|
—
|
—
|
—
|
—
|
—
|
121
|
(51
|
)
|
70
|
||||||||||||||||||||||||||
Total
|
$
|
(10,250
|
)
|
$
|
3,929
|
$
|
(6,321
|
)
|
$
|
26,474
|
$
|
(10,123
|
)
|
$
|
16,351
|
$
|
(71,665
|
)
|
$
|
27,421
|
$
|
(44,244
|
)
|
(a) |
Actuarial gains (losses) are amortized into costs of sales and operating expenses or selling, general and administrative expenses as appropriate. (See Note 9 – Retirement Plans)
|
(b) |
Reclassifications to net earnings of derivatives qualifying as effective hedges are recognized in costs of sales and operating expenses.
|
2016
|
2015
|
2014
|
||||||||||
Net earnings attributable to Kirby
|
$
|
141,406
|
$
|
226,684
|
$
|
282,006
|
||||||
Undistributed earnings allocated to restricted shares
|
(999
|
)
|
(1,345
|
)
|
(1,643
|
)
|
||||||
Income available to Kirby common stockholders — basic
|
140,407
|
225,339
|
280,363
|
|||||||||
Undistributed earnings allocated to restricted shares
|
999
|
1,345
|
1,643
|
|||||||||
Undistributed earnings reallocated to restricted shares
|
(997
|
)
|
(1,343
|
)
|
(1,637
|
)
|
||||||
Income available to Kirby common stockholders — diluted
|
$
|
140,409
|
$
|
225,341
|
$
|
280,369
|
||||||
Shares outstanding:
|
||||||||||||
Weighted average common stock issued and outstanding
|
53,834
|
55,056
|
57,006
|
|||||||||
Weighted average unvested restricted stock
|
(380
|
)
|
(327
|
)
|
(332
|
)
|
||||||
Weighted average common stock outstanding — basic
|
53,454
|
54,729
|
56,674
|
|||||||||
Dilutive effect of stock options
|
58
|
97
|
193
|
|||||||||
Weighted average common stock outstanding — diluted
|
53,512
|
54,826
|
56,867
|
|||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||
Basic
|
$
|
2.63
|
$
|
4.12
|
$
|
4.95
|
||||||
Diluted
|
$
|
2.62
|
$
|
4.11
|
$
|
4.93
|
Three Months Ended
|
||||||||||||||||
March 31,
2016
|
June 30,
2016
|
September 30,
2016
|
December 31,
2016
|
|||||||||||||
Revenues
|
$
|
458,733
|
$
|
441,582
|
$
|
434,708
|
$
|
435,650
|
||||||||
Costs and expenses
|
393,399
|
374,868
|
378,400
|
378,684
|
||||||||||||
Gain (loss) on disposition of assets
|
67
|
94
|
(122
|
)
|
(166
|
)
|
||||||||||
Operating income
|
65,401
|
66,808
|
56,186
|
56,800
|
||||||||||||
Other income (expense)
|
135
|
179
|
(120
|
)
|
47
|
|||||||||||
Interest expense
|
(4,193
|
)
|
(4,513
|
)
|
(4,507
|
)
|
(4,477
|
)
|
||||||||
Earnings before taxes on income
|
61,343
|
62,474
|
51,559
|
52,370
|
||||||||||||
Provision for taxes on income
|
(22,859
|
)
|
(23,365
|
)
|
(19,206
|
)
|
(19,512
|
)
|
||||||||
Net earnings
|
38,484
|
39,109
|
32,353
|
32,858
|
||||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(385
|
)
|
(167
|
)
|
(343
|
)
|
(503
|
)
|
||||||||
Net earnings attributable to Kirby
|
$
|
38,099
|
$
|
38,942
|
$
|
32,010
|
$
|
32,355
|
||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.71
|
$
|
0.72
|
$
|
0.59
|
$
|
0.60
|
||||||||
Diluted
|
$
|
0.71
|
$
|
0.72
|
$
|
0.59
|
$
|
0.60
|
Three Months Ended
|
||||||||||||||||
March 31,
2015
|
June 30,
2015
|
September 30,
2015
|
December 31,
2015
|
|||||||||||||
Revenues
|
$
|
587,673
|
$
|
543,156
|
$
|
532,565
|
$
|
484,138
|
||||||||
Costs and expenses
|
486,136
|
445,113
|
437,115
|
400,178
|
||||||||||||
Gain (loss) on disposition of assets
|
1,555
|
91
|
(400
|
)
|
426
|
|||||||||||
Operating income
|
103,092
|
98,134
|
95,050
|
84,386
|
||||||||||||
Other income (expense)
|
60
|
(303
|
)
|
22
|
9
|
|||||||||||
Interest expense
|
(5,250
|
)
|
(4,759
|
)
|
(4,449
|
)
|
(4,280
|
)
|
||||||||
Earnings before taxes on income
|
97,902
|
93,072
|
90,623
|
80,115
|
||||||||||||
Provision for taxes on income
|
(36,491
|
)
|
(34,696
|
)
|
(33,512
|
)
|
(29,043
|
)
|
||||||||
Net earnings
|
61,411
|
58,376
|
57,111
|
51,072
|
||||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(333
|
)
|
(301
|
)
|
(268
|
)
|
(384
|
)
|
||||||||
Net earnings attributable to Kirby
|
$
|
61,078
|
$
|
58,075
|
$
|
56,843
|
$
|
50,688
|
||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
1.09
|
$
|
1.04
|
$
|
1.04
|
$
|
0.94
|
||||||||
Diluted
|
$
|
1.09
|
$
|
1.04
|
$
|
1.04
|
$
|
0.94
|
2016
|
2015
|
2014
|
||||||||||
Revenues:
|
||||||||||||
Marine transportation
|
$
|
1,471,893
|
$
|
1,663,090
|
$
|
1,770,684
|
||||||
Diesel engine services
|
298,780
|
484,442
|
795,634
|
|||||||||
$
|
1,770,673
|
$
|
2,147,532
|
$
|
2,566,318
|
|||||||
Segment profit (loss):
|
||||||||||||
Marine transportation
|
$
|
257,102
|
$
|
374,842
|
$
|
429,864
|
||||||
Diesel engine services
|
3,186
|
18,921
|
60,063
|
|||||||||
Other
|
(32,542
|
)
|
(32,051
|
)
|
(35,537
|
)
|
||||||
$
|
227,746
|
$
|
361,712
|
$
|
454,390
|
|||||||
Total assets:
|
||||||||||||
Marine transportation
|
$
|
3,622,348
|
$
|
3,451,553
|
$
|
3,317,696
|
||||||
Diesel engine services
|
628,290
|
637,549
|
736,129
|
|||||||||
Other
|
52,861
|
63,179
|
83,789
|
|||||||||
$
|
4,303,499
|
$
|
4,152,281
|
$
|
4,137,614
|
|||||||
Depreciation and amortization:
|
||||||||||||
Marine transportation
|
$
|
184,291
|
$
|
175,798
|
$
|
154,019
|
||||||
Diesel engine services
|
12,833
|
12,498
|
11,463
|
|||||||||
Other
|
3,793
|
3,944
|
3,830
|
|||||||||
$
|
200,917
|
$
|
192,240
|
$
|
169,312
|
|||||||
Capital expenditures:
|
||||||||||||
Marine transportation
|
$
|
217,423
|
$
|
311,862
|
$
|
340,315
|
||||||
Diesel engine services
|
5,915
|
28,907
|
7,486
|
|||||||||
Other
|
7,728
|
4,706
|
7,343
|
|||||||||
$
|
231,066
|
$
|
345,475
|
$
|
355,144
|
2016
|
2015
|
2014
|
||||||||||
General corporate expenses
|
$
|
(14,966
|
)
|
$
|
(14,773
|
)
|
$
|
(14,896
|
)
|
|||
Interest expense
|
(17,690
|
)
|
(18,738
|
)
|
(21,461
|
)
|
||||||
Gain (loss) on disposition of assets
|
(127
|
)
|
1,672
|
781
|
||||||||
Other income (expense)
|
241
|
(212
|
)
|
39
|
||||||||
$
|
(32,542
|
)
|
$
|
(32,051
|
)
|
$
|
(35,537
|
)
|
2016
|
2015
|
2014
|
||||||||||
General corporate assets
|
$
|
50,239
|
$
|
61,089
|
$
|
81,250
|
||||||
Investment in affiliates
|
2,622
|
2,090
|
2,539
|
|||||||||
$
|
52,861
|
$
|
63,179
|
$
|
83,789
|
Exhibit
Number
|
Description of Exhibit
|
|
3.1
|
— Restated Articles of Incorporation of the Company with all amendments to date (incorporated by reference to Exhibit 3.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
|
|
3.2
|
— Bylaws of the Company, as amended to date (incorporated by reference to Exhibit 3.2 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
|
|
10.1
|
— Note Purchase Agreement dated December 13, 2012 among Kirby Corporation and the purchasers named therein relating to $500,000,000 in Senior Notes (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on December 20, 2012).
|
|
10.2
|
— Credit Agreement dated as of April 30, 2015 among Kirby Corporation, JP Morgan Chase Bank, N.A., as Administrative Agent, and the banks named therein (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on May 5, 2015).
|
|
10.3†
|
— Deferred Compensation Plan for Key Employees (incorporated by reference to Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005).
|
Exhibit
Number
|
Description of Exhibit
|
|
10.4†
|
— Annual Incentive Plan Guidelines for 2016 (incorporated by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015).
|
|
10.5†*
|
— Annual Incentive Plan Guidelines for 2017.
|
|
10.6†
|
— 2000 Nonemployee Director Stock Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016).
|
|
10.7†
|
— 2005 Stock and Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016).
|
|
10.8†
|
— Form of Nonincentive Stock Option Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
|
|
10.9†
|
— Form of Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
|
|
10.10†
|
— Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 29, 2005, File No. 001-07615).
|
|
10.11†
|
— Nonemployee Director Compensation Program (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015).
|
|
21.1*
|
— Consolidated Subsidiaries of the Registrant.
|
|
23.1*
|
— Consent of Independent Registered Public Accounting Firm.
|
|
31.1*
|
— Certification of Chief Executive Officer Pursuant to Rule 13a-14(a).
|
|
31.2*
|
— Certification of Chief Financial Officer Pursuant to Rule 13a-14(a).
|
|
32*
|
— Certification Pursuant to 18 U.S.C. Section 1350 (As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002).
|
|
101.INS**
|
— XBRL Instance Document
|
|
101.SCH**
|
— XBRL Taxonomy Extension Schema Document
|
|
101.CAL**
|
— XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF**
|
— XBRL Taxonomy Extension Definitions Linkbase Document
|
|
101.LAB**
|
— XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE**
|
— XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
** |
These exhibits are furnished herewith. In accordance with Rule 406T of Regulations S-T, these exhibits are not deemed to be filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
†
|
Management contract, compensatory plan or arrangement.
|
KIRBY CORPORATION
|
||
(REGISTRANT)
|
||
By:
|
/s/ C. ANDREW SMITH
|
|
C. Andrew Smith
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
Dated: February 23, 2017
|
Signature
|
Capacity
|
Date
|
||
/s/ JOSEPH H. PYNE
|
Chairman of the Board and Director
|
February 23, 2017
|
||
Joseph H. Pyne
|
||||
/s/ DAVID W. GRZEBINSKI
|
President, Chief Executive Officer and
|
February 23, 2017
|
||
David W. Grzebinski
|
Director
|
|||
(Principal Executive Officer)
|
||||
/s/ C. ANDREW SMITH
|
Executive Vice President and
|
February 23, 2017
|
||
C. Andrew Smith
|
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
||||
/s/ RONALD A. DRAGG
|
Vice President, Controller and
|
February 23, 2017
|
||
Ronald A. Dragg
|
Assistant Secretary
|
|||
(Principal Accounting Officer)
|
||||
/s/ ANNE-MARIE N. AINSWORTH
|
Director
|
February 23, 2017
|
||
Anne-Marie N. Ainsworth
|
||||
/s/ RICHARD J. ALARIO
|
Director
|
February 23, 2017
|
||
Richard J. Alario
|
||||
/s/ BARRY E. DAVIS
|
Director
|
February 23, 2017
|
||
Barry E. Davis
|
||||
/s/ C. SEAN DAY
|
Director
|
February 23, 2017
|
||
C. Sean Day
|
||||
/s/ MONTE J. MILLER
|
Director
|
February 23, 2017
|
||
Monte J. Miller
|
||||
/s/ RICHARD R. STEWART
|
Director
|
February 23, 2017
|
||
Richard R. Stewart
|
||||
/s/ WILLIAM M. WATERMAN
|
Director
|
February 23, 2017
|
||
William M. Waterman
|
Exhibit
Number
|
Description of Exhibit
|
||
—
|
Annual Incentive Plan Guidelines for 2017.
|
||
—
|
Consolidated Subsidiaries of the Registrant.
|
||
—
|
Consent of Independent Registered Public Accounting Firm.
|
||
—
|
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 (As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002).
|
||
101.INS**
|
—
|
XBRL Instance Document
|
|
101.SCH**
|
—
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL**
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF**
|
—
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
|
101.LAB**
|
—
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE**
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
* |
Filed herewith
|
** |
These exhibits are furnished herewith. In accordance with Rule 406T of Regulation S-T, these exhibits are not deemed to be filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
† |
Management contract, compensatory plan or arrangement.
|
Introduction
|
2
|
The 2017 Annual Incentive Plan
|
3
|
Plan Objectives
|
3
|
Business Groups
|
3
|
Performance Period
|
4
|
Eligibility
|
4
|
Individual Bonus Targets
|
4
|
Aggregate Payment Amount
|
5
|
Section 162(m) Performance Goal and Maximum Payments
|
5
|
Performance Measures
|
5
|
Business Group Weighting
|
6
|
Performance Standards for Interim Incentive Payment Calculations
|
7
|
Administration
|
9
|
· |
Provide an annual incentive plan that drives performance toward objectives critical to creating stockholder value.
|
· |
Offer competitive cash compensation opportunities to key Kirby employees.
|
· |
Reward outstanding achievement by employees who directly affect Kirby’s results.
|
· |
Assist Kirby in attracting and retaining high quality employees.
|
· |
Reflect both quantitative and qualitative performance factors in actual bonus payouts.
|
· |
Ensure that incentive payments made by the Company are fully deductible by the Company.
|
· |
Generally, managerial employees and KIM wheelhouse employees classified as Captain, Relief Captain or Pilot, are eligible for participation. Selection for participation in the Plan is based upon each position’s ability to impact long-term financial results of the Company and designation by management. Some employees in managerial positions might not be included in the Plan.
|
· |
In order to be eligible to receive an incentive payment under the Plan, participants must be employed on the last day of the Performance Period and on the date bonuses are actually paid for the Performance Period, unless their earlier termination is due to death, retirement or disability. If a participant’s employment is terminated prior to the last day of the Performance Period, or prior to the date of payment, for any reason other than death, retirement or disability, any bonus the participant may otherwise have received will be forfeited and the participant will have no right to any incentive payment under the Plan. As used in the Plan, the terms “retirement” and “disability” have the same meanings as in the Kirby Profit Sharing Plan in the case of shore-based employees and in the Kirby Pension Plan in the case of vessel employees.
|
· |
Participation in the Plan in 2017 does not guarantee participation in similar plans in future years. Participants in the Plan or in similar plans in future years will be notified annually of their selection for participation.
|
· |
EBITDA
|
· |
Return on total capital
|
· |
Earnings per share
|
Calculation of Interim Incentive
Payment Amounts
|
|||||
Kirby Corporation
|
Business Group(s)
|
||||
Eligible Corporate Employees
1
|
100%
|
0%
|
|||
Business Group Presidents
2
|
50%
|
50%
|
|||
Other officers of KIM with primary responsibilities for KIM and additional responsibilities for KOM
|
30%
|
50% KIM
20% KOM
|
|||
Other officers of KOM with primary responsibilities for KOM and additional responsibilities for KIM
|
30%
|
50% KOM
20% KIM
|
|||
Other Business Group Employees
|
30%
|
70%
|
Performance
Level
|
Definition
|
Relationship to Budget
|
% of Target
Used for
Calculation
|
Below Threshold
|
Performance did not meet minimum metric
|
less than 80% of budget
|
0%
|
Threshold
|
Minimum acceptable performance for payout
|
80% of budget
|
50%
|
Target
|
Expected performance at stretch level
|
100% of budget
|
100%
|
Maximum
|
Outstanding performance
|
120% of budget
|
200%
|
· |
Between 80% and 120% of budget achieved for each performance measure, there is a linear relationship between the percentage of budget achieved and the resulting percentage of the target payout percentage used in calculating payout amounts. For example, 90% of budget would result in 75% of target used in the calculation of an interim payment amount and 105% of budget would result in 125% of target used for the calculation of an interim payment amount.
|
· |
The target amount determined for each performance measure is then multiplied by the weight for the performance measure (33.33%, except in the case of United) and the results are added together to produce a total Company or Business Group payout percentage of the target incentive that is applied to each individual participant (except United employees) in calculating the Aggregate Payout Amount under the Plan.
|
Performance
Level
|
Definition
|
Relationship to Budget
|
% of Target
Used for
Calculation
|
Below Threshold
|
Performance did not meet minimum metric
|
less than 60% of budget
|
0%
|
Threshold
|
Minimum acceptable performance for payout
|
60% of budget
|
50%
|
Target
|
Expected performance at stretch level
|
100% of budget
|
100%
|
Maximum
|
Outstanding performance
|
140% of budget
|
200%
|
· |
Between 60% and 140% of budget achieved for the United performance measure, there is a linear relationship between the percentage of budget achieved and the resulting percentage of the target payout percentage used in calculating payout amounts. For example, 80% of budget would result in 75% of target used in the calculation of an interim payment amount and 110% of budget would result in 125% of target used for the calculation of an interim payment amount.
|
· |
The target amount determined for the United performance measure is the Business Group payout percentage of the target incentive that is applied to each United employee who is a participant in calculating the Aggregate Payout Amount under the Plan.
|
· |
The Compensation Committee and the Chief Executive Officer shall in their discretion allocate the Aggregate Payment Amount among eligible participants; provided that only the Compensation Committee shall have the authority to allocate payment amounts to eligible participants (i) who are Covered Employees (as defined below), (ii) who are “officers” for purposes of Section 16 of the Securities and Exchange Act of 1934, (iii) whose bonus target is 50% or more of base salary or (iv) whose base salary is $250,000 or more (collectively “Specified Participants”). In allocating the Aggregate Payment Amount, the Compensation Committee and the Chief Executive Officer may consider, but shall not be bound by, the interim incentive payment amount calculated for each participant.
|
· |
The Compensation Committee has discretion to modify the performance measures or adjust the calculation of the interim incentive payment amounts to adjust for acquisitions, divestures and other material business events.
|
· |
The aggregate amount of incentive payments made to participants in the Plan must equal the Aggregate Payment Amount.
|
· |
Notwithstanding the foregoing or any provision of the Plan to the contrary, no participant who is a covered employee as defined in the Section 162(m) (a "Covered Employee”) may receive an amount in excess of the participant’s Maximum Payment.
|
· |
Approve the designation of Business Groups within the Company
|
· |
Approve the Company Performance Goal
|
· |
Approve other performance measures used and the Threshold, Target and Maximum budget performance levels for purposes of calculating interim incentive payment amounts and the Aggregate Payment Amount
|
· |
Approve linkage for participants to Company and Business Group performance
|
· |
Approve the individual bonus targets for all Specified Participants
|
· |
Approve the Aggregate Payment Amount to be paid to participants in the Plan
|
· |
Certify whether the Company Performance Goal and other material terms that result in payments under the Plan have been satisfied prior to any incentive payment to a Covered Employee
|
· |
Determine in its discretion the final incentive payments for Specified Participants
|
· |
Provide annual reports to the Compensation Committee and the CEO on each Business Group’s performance at the end of the fiscal year
|
· |
Maintain a financial information system that reports results on an estimated quarterly and annual basis
|
· |
Coordinate with the Company’s auditors to properly recognize any accounting expense associated with incentive payments under the Plan
|
· |
Provide the VP – HR with the performance results of each Business Group as well as overall Company performance
|
· |
Develop and recommend eligible participants and target bonus guidelines
|
· |
Coordinate communications with participants, including materials to facilitate understanding the Plan’s objectives and goals
|
· |
Calculate participants’ interim incentive payment amounts, using the performance factors provided by the CFO
|
· |
Process paperwork approving individual incentive payments
|
· |
Recommend participants in the Plan
|
· |
Coordinate with the CFO to determine any significant changes in business conditions for purposes of reviewing the Threshold, Target and Maximum performance objectives
|
· |
Assure that participants are informed of the actual incentive payment to be made for the Performance Period
|
Domicile of
Incorporation |
||
KIRBY CORPORATION – PARENT AND REGISTRANT
|
Nevada
|
|
SUBSIDIARIES OF THE PARENT AND REGISTRANT
|
||
Kirby Corporate Services, LLC
|
Delaware
|
|
KIM Holdings, Inc.
|
Delaware
|
|
Kirby Terminals, Inc.
|
Texas
|
|
Sabine Transportation Company
|
Delaware
|
|
AFRAM Carriers, Inc.
|
Delaware
|
|
Kirby Engine Systems, Inc.
|
Delaware
|
|
Kirby Tankships, Inc.
|
Delaware
|
|
Kirby Ocean Transport Company
|
Delaware
|
|
Kirby Offshore Marine, LLC
|
Delaware
|
|
K Equipment, LLC
|
Texas
|
|
CONTROLLED CORPORATIONS
|
||
KIM Partners, LLC (Subsidiary of KIM Holdings, Inc.)
|
Louisiana
|
|
Kirby Inland Marine, LP (KIM Holdings, Inc. 1% General Partner, KIM Partners, LLC 99% Limited Partner)
|
Delaware
|
|
Greens Bayou Fleeting, LLC
|
Texas
|
|
Dixie Carriers, Inc. (subsidiary of Kirby Inland Marine, LP)
|
Texas
|
|
Marine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc.)
|
Louisiana
|
|
Engine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc.)
|
Delaware
|
|
Osprey Line, L.L.C. (66 2/3%)
|
Texas
|
|
United Holdings LLC (subsidiary of Kirby Engine Systems, Inc.)
|
Delaware
|
|
United Engines LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
UE Powertrain GP LLC (subsidiary of United Holdings LLC)
|
Texas
|
|
UE Manufacturing LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
Compression Systems LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
Thermo King of Houston, LP (subsidiary of United Holdings LLC)
|
Texas
|
|
San Antonio Thermo King, Inc. (subsidiary of Thermo King of Houston, LP)
|
Texas
|
|
UE Powertrain LP (subsidiary of United Holdings LLC and UE Powertrain GP LLC)
|
Texas
|
|
Kirby Offshore Marine Operating, LLC (subsidiary of Kirby Offshore Marine, LLC)
|
Delaware
|
|
Kirby Offshore Marine Hawaii, LLC (subsidiary of Kirby Offshore Marine Operating, LLC)
|
Delaware
|
|
Kirby Offshore Marine Pacific, LLC (subsidiary of Kirby Offshore Marine Operating, LLC)
|
Delaware
|
|
Kirby Offshore Marine, Inc. (subsidiary of Kirby Offshore Marine Operating, LLC)
|
Delaware
|
|
Inversiones Kara Sea SRL (subsidiary of Kirby Offshore Marine Operating, LLC)
|
Venezuela
|
|
K-Sea Canada Holdings, Inc. (subsidiary of Kirby Offshore Marine, Inc.)
|
Delaware
|
|
K-Sea Canada Corp. (subsidiary of K-Sea Canada Holdings, Inc.)
|
Nova Scotia
|
|
Penn Maritime Inc. (subsidiary of Kirby Offshore Marine, LLC)
|
Delaware
|
|
Hollywood Chem 107, Ltd (90.8%)
|
Texas
|
|
Hollywood Chem 108, Ltd (93.1%)
|
Texas
|
|
Hollywood Chem 1004-7, Ltd (90.8%)
|
Texas
|
|
Hollywood Chem 1008-14, Ltd (93.1%)
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Texas
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Hollywood Chem 3009-14, Ltd (93.1%)
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Texas
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/s/ KPMG LLP
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/s/ DAVID W. GRZEBINSKI
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David W. Grzebinski
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President and Chief Executive Officer
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Dated: February 23, 2017
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/s/ C. ANDREW SMITH
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C. Andrew Smith
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Executive Vice President and
Chief Financial Officer
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Dated: February 23, 2017
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/s/ DAVID W. GRZEBINSKI
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David W. Grzebinski
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President and Chief Executive Officer
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/s/ C. ANDREW SMITH
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C. Andrew Smith
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Executive Vice President and
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Chief Financial Officer
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Dated: February 23, 2017
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