☒ |
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
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
KEX
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
|
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
Page
|
PART I
|
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4
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4
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4
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5
|
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6
|
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7
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7
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8
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9
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9
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10
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11
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14
|
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15
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15
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16
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19
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|
19
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21
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21
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|
22
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|
22
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|
22
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|
22
|
|
23
|
|
24
|
|
26
|
|
34
|
|
34
|
|
34
|
|
34
|
|
PART II
|
|
35
|
|
35
|
|
36
|
|
59
|
|
60
|
|
60
|
|
60
|
|
60
|
|
PART III
|
|
60
|
|
PART IV
|
|
102
|
|
103
|
Item 1. |
Business
|
● |
Audit Committee Charter
|
● |
Compensation Committee Charter
|
● |
Governance Committee Charter
|
● |
Business Ethics Guidelines
|
● |
Corporate Governance Guidelines
|
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
|
347
|
14.0
|
4,053,000
|
|||||||||
Over 20,000 barrels
|
665
|
12.3
|
19,114,000
|
|||||||||
Specialty double hull
|
54
|
35.3
|
913,000
|
|||||||||
Total inland tank barges
|
1,066
|
14.0
|
24,080,000
|
|||||||||
Inland towboats (owned and chartered):
|
||||||||||||
800 to 1300 horsepower
|
38
|
35.1
|
||||||||||
1400 to 1900 horsepower
|
30
|
24.0
|
||||||||||
2000 to 2400 horsepower
|
135
|
11.1
|
||||||||||
2500 to 3200 horsepower
|
31
|
12.7
|
||||||||||
3300 to 4800 horsepower
|
11
|
27.3
|
||||||||||
Greater than 5000 horsepower
|
3
|
17.4
|
||||||||||
Total inland towboats
|
248
|
17.4
|
||||||||||
Coastal tank barges (owned and leased):
|
||||||||||||
30,000 barrels and under
|
2
|
26.1
|
37,000
|
|||||||||
50,000 to 70,000 barrels
|
9
|
15.4
|
437,000
|
|||||||||
80,000 to 90,000 barrels
|
17
|
16.5
|
1,422,000
|
|||||||||
100,000 to 110,000 barrels
|
6
|
14.5
|
630,000
|
|||||||||
120,000 to 150,000 barrels
|
3
|
19.0
|
416,000
|
|||||||||
Over 150,000 barrels
|
7
|
7.7
|
1,210,000
|
|||||||||
Total coastal tank barges
|
44
|
15.2
|
4,152,000
|
|||||||||
Coastal tugboats (owned and chartered):
|
||||||||||||
1000 to 1900 horsepower
|
4
|
32.5
|
||||||||||
2000 to 2900 horsepower
|
1
|
45.1
|
||||||||||
3000 to 3900 horsepower
|
7
|
38.2
|
||||||||||
4000 to 4900 horsepower
|
10
|
13.0
|
||||||||||
5000 to 6900 horsepower
|
14
|
10.1
|
||||||||||
Greater than 7000 horsepower
|
8
|
13.8
|
||||||||||
Total coastal tugboats
|
44
|
18.3
|
|
Deadweight
Tonnage
|
|||||||||||
Offshore dry-bulk cargo barges (owned)
|
4
|
22.1
|
67,000
|
|||||||||
Offshore tugboats and docking tugboat (owned and chartered)
|
5
|
29.5
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
2020
|
%
|
2019
|
%
|
2018
|
%
|
|||||||||||||||||||
Service and parts
|
$
|
711,051
|
93
|
%
|
$
|
939,246
|
75
|
%
|
$
|
1,059,270
|
71
|
%
|
||||||||||||
Manufacturing
|
56,092
|
7
|
312,071
|
25
|
428,284
|
29
|
||||||||||||||||||
$
|
767,143
|
100
|
%
|
$
|
1,251,317
|
100
|
%
|
$
|
1,487,554
|
100
|
%
|
Name
|
Age
|
Positions and Offices
|
||
David W. Grzebinski
|
59
|
President and Chief Executive Officer
|
||
William G. Harvey
|
63
|
Executive Vice President and Chief Financial Officer
|
||
Christian G. O’Neil
|
48
|
President – Kirby Inland Marine, Kirby Offshore Marine, and San Jac Marine, LLC
|
||
Joseph H. Reniers
|
46
|
President – Kirby Distribution & Services, Inc.
|
||
Dorman L. Strahan
|
64
|
President – Kirby Engine Systems
|
||
Kim B. Clarke
|
65
|
Vice President and Chief Human Resources Officer
|
||
Ronald A. Dragg
|
57
|
Vice President, Controller and Assistant Secretary
|
||
Eric S. Holcomb
|
46
|
Vice President – Investor Relations
|
||
Amy D. Husted
|
52
|
Vice President, General Counsel and Secretary
|
||
Scott P. Miller
|
42
|
Vice President and Chief Information Officer
|
||
Kurt A. Niemietz
|
48
|
Vice President and Treasurer
|
||
William M. Woodruff
|
60
|
Vice President – Public and Governmental Affairs
|
Item 1A. |
Risk Factors
|
Item 1B. |
Unresolved Staff Comments
|
Item 2. |
Properties
|
Item 3. |
Legal Proceedings
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Item 6. |
Selected Financial Data
|
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
Marine transportation
|
$
|
1,404,265
|
$
|
1,587,082
|
$
|
1,483,143
|
$
|
1,324,106
|
$
|
1,471,893
|
||||||||||
Distribution and services
|
767,143
|
1,251,317
|
1,487,554
|
890,312
|
298,780
|
|||||||||||||||
$
|
2,171,408
|
$
|
2,838,399
|
$
|
2,970,697
|
$
|
2,214,418
|
$
|
1,770,673
|
|||||||||||
Net earnings (loss) attributable to Kirby
|
$
|
(272,546
|
)
|
$
|
142,347
|
$
|
78,452
|
$
|
313,187
|
$
|
141,406
|
|||||||||
Net earnings (loss) per share attributable to Kirby common stockholders:
|
||||||||||||||||||||
Basic
|
$
|
(4.55
|
)
|
$
|
2.38
|
$
|
1.31
|
$
|
5.62
|
$
|
2.63
|
|||||||||
Diluted
|
$
|
(4.55
|
)
|
$
|
2.37
|
$
|
1.31
|
$
|
5.62
|
$
|
2.62
|
|||||||||
Common stock outstanding:
|
||||||||||||||||||||
Basic
|
59,912
|
59,750
|
59,557
|
55,308
|
53,454
|
|||||||||||||||
Diluted
|
59,912
|
59,909
|
59,689
|
55,361
|
53,512
|
|
December 31,
|
|||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Property and equipment, net
|
$
|
3,917,070
|
$
|
3,777,110
|
$
|
3,539,802
|
$
|
2,959,265
|
$
|
2,921,374
|
||||||||||
Total assets
|
$
|
5,924,174
|
$
|
6,079,097
|
$
|
5,871,594
|
$
|
5,127,427
|
$
|
4,289,895
|
||||||||||
Long-term debt, including current portion
|
$
|
1,468,586
|
$
|
1,369,767
|
$
|
1,410,188
|
$
|
992,406
|
$
|
722,802
|
||||||||||
Total equity
|
$
|
3,087,553
|
$
|
3,371,592
|
$
|
3,216,301
|
$
|
3,114,223
|
$
|
2,412,867
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
Net earnings (loss) attributable to Kirby
|
$
|
(272,546
|
)
|
$
|
142,347
|
$
|
78,452
|
|||||
Net earnings (loss) attributable to Kirby per share - diluted
|
$
|
(4.55
|
)
|
$
|
2.37
|
$
|
1.31
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
2020
|
%
|
2019
|
%
|
2018
|
%
|
|||||||||||||||||||
Marine transportation
|
$
|
1,404,265
|
65
|
%
|
$
|
1,587,082
|
56
|
%
|
$
|
1,483,143
|
50
|
%
|
||||||||||||
Distribution and services
|
767,143
|
35
|
1,251,317
|
44
|
1,487,554
|
50
|
||||||||||||||||||
$
|
2,171,408
|
100
|
%
|
$
|
2,838,399
|
100
|
%
|
$
|
2,970,697
|
100
|
%
|
Year Ended December 31,
|
||||||||||||||||||||
|
2020
|
2019
|
% Change
|
2018
|
% Change
|
|||||||||||||||
Marine transportation revenues
|
$
|
1,404,265
|
$
|
1,587,082
|
(12
|
)%
|
$
|
1,483,143
|
7
|
%
|
||||||||||
Costs and expenses:
|
||||||||||||||||||||
Costs of sales and operating expenses
|
907,119
|
1,034,758
|
(12
|
)
|
997,979
|
4
|
||||||||||||||
Selling, general and administrative
|
111,182
|
122,202
|
(9
|
)
|
122,421
|
—
|
||||||||||||||
Taxes, other than on income
|
35,528
|
34,538
|
3
|
33,020
|
5
|
|||||||||||||||
Depreciation and amortization
|
186,798
|
179,742
|
4
|
182,307
|
(1
|
)
|
||||||||||||||
1,240,627
|
1,371,240
|
(10
|
)
|
1,335,727
|
3
|
|||||||||||||||
Operating income
|
$
|
163,638
|
$
|
215,842
|
(24
|
)%
|
$
|
147,416
|
46
|
%
|
||||||||||
Operating margins
|
11.7
|
%
|
13.6
|
%
|
9.9
|
%
|
Markets Serviced
|
2020
Revenue
Distribution
|
Products Moved
|
Drivers
|
|||
Petrochemicals
|
52%
|
Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene
|
Consumer non-durables — 70% Consumer durables — 30%
|
|||
Black Oil
|
26%
|
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
|
19%
|
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
|
Year Ended December 31,
|
||||||||||||||||||||
|
2020
|
2019
|
% Change
|
2018
|
% Change
|
|||||||||||||||
Distribution and services revenues
|
$
|
767,143
|
$
|
1,251,317
|
(39
|
)%
|
$
|
1,487,554
|
(16
|
)%
|
||||||||||
Costs and expenses:
|
||||||||||||||||||||
Costs of sales and operating expenses
|
604,238
|
995,288
|
(39
|
)
|
1,162,967
|
(14
|
)
|
|||||||||||||
Selling, general and administrative
|
140,449
|
145,473
|
(3
|
)
|
149,756
|
(3
|
)
|
|||||||||||||
Taxes, other than on income
|
6,392
|
7,357
|
(13
|
)
|
6,177
|
19
|
||||||||||||||
Depreciation and amortization
|
28,255
|
35,998
|
(22
|
)
|
39,349
|
(9
|
)
|
|||||||||||||
779,334
|
1,184,116
|
(34
|
)
|
1,358,249
|
(13
|
)
|
||||||||||||||
Operating income
|
$
|
(12,191
|
)
|
$
|
67,201
|
(118
|
)%
|
$
|
129,305
|
(48
|
)%
|
|||||||||
Operating margins
|
(1.6
|
)%
|
5.4
|
%
|
8.7
|
%
|
Markets Serviced
|
2020
Revenue
Distribution
|
Customers
|
||
Commercial and Industrial
|
74%
|
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
|
||
Oil and Gas
|
26%
|
Oilfield Services, Oil and Gas Operators and Producers
|
Year Ended December 31,
|
||||||||||||||||||||
|
2020
|
2019
|
% Change
|
2018
|
% Change
|
|||||||||||||||
Impairments and other charges
|
$
|
(561,274
|
)
|
$
|
(35,525
|
)
|
(1,480
|
)%
|
$
|
(85,407
|
)
|
(58
|
)%
|
|||||||
Lease cancellation costs
|
—
|
—
|
—
|
%
|
(2,403
|
)
|
(100
|
)%
|
||||||||||||
Other income
|
8,147
|
3,787
|
115
|
%
|
5,726
|
(34
|
)%
|
|||||||||||||
Noncontrolling interests
|
(954
|
)
|
(672
|
)
|
42
|
%
|
(626
|
)
|
7
|
%
|
||||||||||
Interest expense
|
(48,739
|
)
|
(55,994
|
)
|
(13
|
)%
|
(46,856
|
)
|
20
|
%
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
Average debt
|
$
|
1,567,523
|
$
|
1,502,044
|
$
|
1,370,905
|
||||||
Average interest rate
|
3.1
|
%
|
3.7
|
%
|
3.5
|
%
|
||||||
Capitalized Interest
|
$
|
—
|
$
|
1,003
|
$
|
2,206
|
December 31,
|
||||||||||||||||||||
|
2020
|
2019
|
% Change
|
2018
|
% Change
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Current assets
|
$
|
1,047,971
|
$
|
917,579
|
14
|
%
|
$
|
1,096,489
|
(16
|
)%
|
||||||||||
Property and equipment, net
|
3,917,070
|
3,777,110
|
4
|
3,539,802
|
7
|
|||||||||||||||
Operating lease right-of-use assets
|
174,317
|
159,641
|
9
|
—
|
N/A
|
|||||||||||||||
Investment in affiliates
|
2,689
|
2,025
|
33
|
2,495
|
(19
|
)
|
||||||||||||||
Goodwill
|
657,800
|
953,826
|
(31
|
)
|
953,826
|
—
|
||||||||||||||
Other intangibles, net
|
68,979
|
210,682
|
(67
|
)
|
224,197
|
(6
|
)
|
|||||||||||||
Other assets
|
55,348
|
58,234
|
(5
|
)
|
54,785
|
6
|
||||||||||||||
$
|
5,924,174
|
$
|
6,079,097
|
(3
|
)%
|
$
|
5,871,594
|
4
|
%
|
|||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||
Current liabilities
|
$
|
466,032
|
$
|
514,115
|
(9
|
)%
|
$
|
607,782
|
(15
|
)%
|
||||||||||
Long-term debt, net — less current portion
|
1,468,546
|
1,369,751
|
7
|
1,410,169
|
(3
|
)
|
||||||||||||||
Deferred income taxes
|
606,844
|
588,204
|
3
|
542,785
|
8
|
|||||||||||||||
Operating lease liabilities — less current portion
|
163,496
|
139,457
|
17
|
—
|
N/A
|
|||||||||||||||
Other long-term liabilities
|
131,703
|
95,978
|
37
|
94,557
|
2
|
|||||||||||||||
Total equity
|
3,087,553
|
3,371,592
|
(8
|
)
|
3,216,301
|
5
|
||||||||||||||
$
|
5,924,174
|
$
|
6,079,097
|
(3
|
)%
|
$
|
5,871,594
|
4
|
%
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Long-term debt, including current portion:
|
||||||||
Revolving Credit Facility due March 27, 2024 (a)
|
$
|
250,000
|
$
|
—
|
||||
Term Loan due March 27, 2024 (a)
|
375,000
|
375,000
|
||||||
2.72% senior notes due February 27, 2020
|
—
|
150,000
|
||||||
3.29% senior notes due February 27, 2023
|
350,000
|
350,000
|
||||||
4.2% senior notes due March 1, 2028
|
500,000
|
500,000
|
||||||
Credit line due June 30, 2021
|
—
|
—
|
||||||
Bank notes payable
|
40
|
16
|
||||||
1,475,040
|
1,375,016
|
|||||||
Unamortized debt discount and issuance costs (b)
|
(6,454
|
)
|
(5,249
|
)
|
||||
$
|
1,468,586
|
$
|
1,369,767
|
(a) |
Variable interest rate of 1.5% and 2.9% at December 31, 2020 and December 31, 2019, respectively.
|
(b) |
Excludes $2,650,000 attributable to the Revolving Credit Facility included in other assets at December 31, 2019.
|
|
Payments Due By Period
|
|||||||||||||||||||
Total
|
Less Than
1 Year
|
2-3
Years
|
4-5
Years
|
After
5 Years
|
||||||||||||||||
Long-term debt
|
$
|
1,475,040
|
$
|
40
|
$
|
381,250
|
$
|
593,750
|
$
|
500,000
|
||||||||||
Non-cancelable operating leases — barges
|
43,415
|
9,511
|
13,235
|
8,475
|
12,194
|
|||||||||||||||
Non-cancelable operating leases — towing vessels (a)
|
34,712
|
6,010
|
9,159
|
9,159
|
10,384
|
|||||||||||||||
Non-cancelable operating leases — land, buildings and equipment
|
164,982
|
24,703
|
39,161
|
27,205
|
73,913
|
|||||||||||||||
$
|
1,718,149
|
$
|
40,264
|
$
|
442,805
|
$
|
638,589
|
$
|
596,491
|
(a) |
Towing vessel payments are determined in accordance with Topic 842, Leases, and exclude non-lease components. The Company estimates that non-lease components comprise approximately 70% of charter rental costs, related to towboat crew costs, maintenance and insurance.
|
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk
|
Item 8. |
Financial Statements and Supplementary Data
|
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
Item 9B. |
Other Information
|
● |
evaluating the estimated fair value of the property and equipment assets
|
● |
evaluating the estimated physical depreciation using the normal useful life ranges and salvage values based on industry standard guidelines published by the American Society of Appraisers, observable third-party market information, and experience with valuing similar assets.
|
● |
evaluating the Company’s discount rate by comparing it to a discount rate that was independently developed using publicly available third-party market data for comparable entities
|
● |
developing an estimate of the reporting unit’s fair value using the reporting unit’s forecasted cash flows and the independently developed discount rate, and comparing the results of our estimate of fair value to the Company’s fair value estimate.
|
● |
evaluating the Company’s discount rate by comparing it to a discount rate that was independently developed using publicly available third-party market data for comparable entities
|
● |
evaluating the Company’s royalty rate by comparing it against publicly available market data
|
● |
developing an estimate of the asset group’s fair value using the asset group’s forecasted cash flows and royalty rate, and the independently developed discount rate, and comparing the results of our estimate of fair value to the Company’s fair value estimate.
|
December 31,
|
||||||||
|
2020
|
2019
|
||||||
($ in thousands)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
80,338
|
$
|
24,737
|
||||
Accounts receivable:
|
||||||||
Trade — less allowance for doubtful accounts of $8,807 ($8,372 in 2019)
|
315,283
|
379,174
|
||||||
Other
|
284,899
|
104,175
|
||||||
Inventories — at lower of average cost or net realizable value
|
309,675
|
351,401
|
||||||
Prepaid expenses and other current assets
|
57,776
|
58,092
|
||||||
Total current assets
|
1,047,971
|
917,579
|
||||||
Property and equipment:
|
||||||||
Marine transportation equipment
|
4,999,777
|
4,770,213
|
||||||
Land, buildings and equipment
|
615,623
|
553,877
|
||||||
5,615,400
|
5,324,090
|
|||||||
Accumulated depreciation
|
(1,698,330
|
)
|
(1,546,980
|
)
|
||||
Property and equipment — net
|
3,917,070
|
3,777,110
|
||||||
Operating lease right-of-use assets
|
174,317
|
159,641
|
||||||
Investment in affiliates
|
2,689
|
2,025
|
||||||
Goodwill
|
657,800
|
953,826
|
||||||
Other intangibles, net
|
68,979
|
210,682
|
||||||
Other assets
|
55,348
|
58,234
|
||||||
Total assets
|
$
|
5,924,174
|
$
|
6,079,097
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Bank notes payable
|
$
|
40
|
$
|
16
|
||||
Income taxes payable
|
474
|
665
|
||||||
Accounts payable
|
162,507
|
206,778
|
||||||
Accrued liabilities:
|
||||||||
Interest
|
11,272
|
12,700
|
||||||
Insurance premiums and claims
|
111,359
|
108,405
|
||||||
Employee compensation
|
32,918
|
42,875
|
||||||
Taxes — other than on income
|
44,366
|
39,286
|
||||||
Other
|
24,940
|
33,084
|
||||||
Current portion of operating lease liabilities
|
32,750
|
27,324
|
||||||
Deferred revenues
|
45,406
|
42,982
|
||||||
Total current liabilities
|
466,032
|
514,115
|
||||||
Long-term debt, net — less current portion
|
1,468,546
|
1,369,751
|
||||||
Deferred income taxes
|
606,844
|
588,204
|
||||||
Operating lease liabilities — less current portion
|
163,496
|
139,457
|
||||||
Other long-term liabilities
|
131,703
|
95,978
|
||||||
Total long-term liabilities
|
2,370,589
|
2,193,390
|
||||||
Contingencies and commitments
|
—
|
—
|
||||||
Equity:
|
||||||||
Kirby stockholders’ equity:
|
||||||||
Common stock, $0.10 par value per share. Authorized 120,000,000 shares, issued 65,472,000 in 2020 and 2019
|
6,547
|
6,547
|
||||||
Additional paid-in capital
|
844,979
|
835,899
|
||||||
Accumulated other comprehensive income — net
|
(61,452
|
)
|
(37,799
|
)
|
||||
Retained earnings
|
2,593,393
|
2,865,939
|
||||||
Treasury stock — at cost, 5,434,000 shares in 2020 and 5,513,000 shares in 2019
|
(299,161
|
)
|
(301,963
|
)
|
||||
Total Kirby stockholders’ equity
|
3,084,306
|
3,368,623
|
||||||
Noncontrolling interests
|
3,247
|
2,969
|
||||||
Total equity
|
3,087,553
|
3,371,592
|
||||||
Total liabilities and equity
|
$
|
5,924,174
|
$
|
6,079,097
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
($ in thousands, except per share amounts)
|
||||||||||||
Revenues:
|
||||||||||||
Marine transportation
|
$
|
1,404,265
|
$
|
1,587,082
|
$
|
1,483,143
|
||||||
Distribution and services
|
767,143
|
1,251,317
|
1,487,554
|
|||||||||
Total revenues
|
2,171,408
|
2,838,399
|
2,970,697
|
|||||||||
Costs and expenses:
|
||||||||||||
Costs of sales and operating expenses
|
1,510,818
|
2,030,046
|
2,160,946
|
|||||||||
Selling, general and administrative
|
258,272
|
277,388
|
304,397
|
|||||||||
Taxes, other than on income
|
42,000
|
41,933
|
39,251
|
|||||||||
Depreciation and amortization
|
219,921
|
219,632
|
224,972
|
|||||||||
Impairments and other charges
|
561,274
|
35,525
|
85,407
|
|||||||||
Lease cancellation costs
|
—
|
—
|
2,403
|
|||||||||
Gain on disposition of assets
|
(118
|
)
|
(8,152
|
)
|
(1,968
|
)
|
||||||
Total costs and expenses
|
2,592,167
|
2,596,372
|
2,815,408
|
|||||||||
Operating income (loss)
|
(420,759
|
)
|
242,027
|
155,289
|
||||||||
Other income
|
8,147
|
3,787
|
5,726
|
|||||||||
Interest expense
|
(48,739
|
)
|
(55,994
|
)
|
(46,856
|
)
|
||||||
Earnings (loss) before taxes on income
|
(461,351
|
)
|
189,820
|
114,159
|
||||||||
(Provision) benefit for taxes on income
|
189,759
|
(46,801
|
)
|
(35,081
|
)
|
|||||||
Net earnings (loss)
|
(271,592
|
)
|
143,019
|
79,078
|
||||||||
Less: Net earnings attributable to noncontrolling interests
|
(954
|
)
|
(672
|
)
|
(626
|
)
|
||||||
Net earnings (loss) attributable to Kirby
|
$
|
(272,546
|
)
|
$
|
142,347
|
$
|
78,452
|
|||||
Net earnings (loss) per share attributable to Kirby common stockholders:
|
||||||||||||
Basic
|
$
|
(4.55
|
)
|
$
|
2.38
|
$
|
1.31
|
|||||
Diluted
|
$
|
(4.55
|
)
|
$
|
2.37
|
$
|
1.31
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
($ in thousands)
|
||||||||||||
Net earnings (loss)
|
$
|
(271,592
|
)
|
$
|
143,019
|
$
|
79,078
|
|||||
Other comprehensive loss, net of taxes:
|
||||||||||||
Pension and postretirement benefits
|
(23,320
|
)
|
(4,203
|
)
|
7,638
|
|||||||
Foreign currency translation adjustments
|
(333
|
)
|
(85
|
)
|
(819
|
)
|
||||||
Reclassification to retained earnings of stranded tax effects from tax reform
|
—
|
—
|
(7,925
|
)
|
||||||||
Total other comprehensive loss, net of taxes
|
(23,653
|
)
|
(4,288
|
)
|
(1,106
|
)
|
||||||
Total comprehensive income (loss), net of taxes
|
(295,245
|
)
|
138,731
|
77,972
|
||||||||
Net earnings attributable to noncontrolling interests
|
(954
|
)
|
(672
|
)
|
(626
|
)
|
||||||
Comprehensive income (loss) attributable to Kirby
|
$
|
(296,199
|
)
|
$
|
138,059
|
$
|
77,346
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
($ in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings (loss)
|
$
|
(271,592
|
)
|
$
|
143,019
|
$
|
79,078
|
|||||
Adjustments to reconcile net earnings (loss) to net cash provided by operations:
|
||||||||||||
Depreciation and amortization
|
219,921
|
219,632
|
224,972
|
|||||||||
Provision (credit) for doubtful accounts
|
3,716
|
(873
|
)
|
1,289
|
||||||||
Provision for deferred income taxes
|
25,163
|
46,839
|
34,881
|
|||||||||
Gain on disposition of assets
|
(118
|
)
|
(8,152
|
)
|
(1,968
|
)
|
||||||
Impairments and other charges
|
561,274
|
35,525
|
85,407
|
|||||||||
Amortization of unearned share-based compensation
|
14,722
|
13,612
|
19,104
|
|||||||||
Amortization of major maintenance costs
|
30,214
|
23,962
|
20,760
|
|||||||||
Other
|
(90
|
)
|
1,683
|
863
|
||||||||
Increase (decrease) in cash flows resulting from changes in:
|
||||||||||||
Accounts receivable
|
(124,941
|
)
|
43,078
|
12,511
|
||||||||
Inventory
|
47,076
|
122,773
|
(144,685
|
)
|
||||||||
Other assets
|
(29,994
|
)
|
(25,470
|
)
|
(38,090
|
)
|
||||||
Income taxes payable
|
8,826
|
(2,503
|
)
|
(457
|
)
|
|||||||
Accounts payable
|
(39,795
|
)
|
(57,405
|
)
|
22,622
|
|||||||
Accrued and other liabilities
|
558
|
(43,907
|
)
|
30,712
|
||||||||
Net cash provided by operating activities
|
444,940
|
511,813
|
346,999
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Capital expenditures
|
(148,185
|
)
|
(248,164
|
)
|
(301,861
|
)
|
||||||
Acquisitions of businesses and marine equipment, net of cash acquired
|
(354,972
|
)
|
(262,491
|
)
|
(533,897
|
)
|
||||||
Proceeds from disposition of assets and other
|
17,310
|
57,657
|
53,142
|
|||||||||
Net cash used in investing activities
|
(485,847
|
)
|
(452,998
|
)
|
(782,616
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Borrowings (payments) on bank credit facilities, net
|
250,024
|
(417,376
|
)
|
(78,455
|
)
|
|||||||
Borrowings on long-term debt
|
—
|
500,000
|
499,295
|
|||||||||
Payments on long-term debt
|
(150,000
|
)
|
(125,000
|
)
|
—
|
|||||||
Payment of debt issue costs
|
—
|
(2,397
|
)
|
(4,276
|
)
|
|||||||
Return of investment to noncontrolling interests
|
(676
|
)
|
(817
|
)
|
(915
|
)
|
||||||
Proceeds from exercise of stock options
|
353
|
5,743
|
13,264
|
|||||||||
Purchase of treasury stock
|
—
|
—
|
(776
|
)
|
||||||||
Payments related to tax withholding for share-based compensation
|
(3,193
|
)
|
(2,031
|
)
|
(4,822
|
)
|
||||||
Net cash provided by (used in) financing activities
|
96,508
|
(41,878
|
)
|
423,315
|
||||||||
Increase (decrease) in cash and cash equivalents
|
55,601
|
16,937
|
(12,302
|
)
|
||||||||
Cash and cash equivalents, beginning of year
|
24,737
|
7,800
|
20,102
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
80,338
|
$
|
24,737
|
$
|
7,800
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid (received) during the period:
|
||||||||||||
Interest paid
|
$
|
48,721
|
$
|
55,766
|
$
|
40,772
|
||||||
Income taxes paid (refunded)
|
$
|
(35,571
|
)
|
$
|
2,926
|
$
|
640
|
|||||
Operating cash outflow from operating leases
|
$
|
43,639
|
$
|
39,376
|
$
|
—
|
||||||
Non-cash investing activity:
|
||||||||||||
Capital expenditures included in accounts payable
|
$
|
(13,280
|
)
|
$
|
13,875
|
$
|
(16,441
|
)
|
||||
Cash acquired in acquisition
|
$
|
557
|
$
|
—
|
$
|
2,313
|
||||||
Right-of-use assets obtained in exchange for lease obligations
|
$
|
46,511
|
$
|
21,195
|
$
|
—
|
|
Common
Stock
|
Additional
Paid-in-
|
Accumulated
Other
Comprehensive
|
Retained
|
Treasury Stock
|
Noncontrolling
|
||||||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Income
|
Earnings
|
Shares
|
Amount
|
Interests
|
Total
|
||||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
65,472
|
$
|
6,547
|
$
|
802,961
|
$
|
(32,405
|
)
|
$
|
2,646,937
|
(5,783
|
)
|
$
|
(313,220
|
)
|
$
|
3,403
|
$
|
3,114,223
|
|||||||||||||||||
Cumulative effect of adoption of ASU 2014-09
|
—
|
—
|
—
|
—
|
(9,722
|
)
|
—
|
—
|
—
|
(9,722
|
)
|
|||||||||||||||||||||||||
Cumulative effect of adoption of ASU 2018-02
|
—
|
—
|
—
|
—
|
7,925
|
—
|
—
|
—
|
7,925
|
|||||||||||||||||||||||||||
Stock option exercises
|
—
|
—
|
2,161
|
—
|
—
|
232
|
11,151
|
—
|
13,312
|
|||||||||||||||||||||||||||
Issuance of stock for equity awards, net of forfeitures
|
—
|
—
|
(879
|
)
|
—
|
—
|
15
|
879
|
—
|
—
|
||||||||||||||||||||||||||
Tax withholdings on equity award vesting
|
—
|
—
|
—
|
—
|
—
|
(61
|
)
|
(4,822
|
)
|
—
|
(4,822
|
)
|
||||||||||||||||||||||||
Amortization of unearned share-based compensation
|
—
|
—
|
19,104
|
—
|
—
|
—
|
—
|
—
|
19,104
|
|||||||||||||||||||||||||||
Treasury stock purchases
|
—
|
—
|
—
|
—
|
—
|
(11
|
)
|
(776
|
)
|
—
|
(776
|
)
|
||||||||||||||||||||||||
Total comprehensive income, net of taxes
|
—
|
—
|
—
|
(1,106
|
)
|
78,452
|
—
|
—
|
626
|
77,972
|
||||||||||||||||||||||||||
Return of investment to noncontrolling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(915
|
)
|
(915
|
)
|
|||||||||||||||||||||||||
Balance at December 31, 2018
|
65,472
|
$
|
6,547
|
$
|
823,347
|
$
|
(33,511
|
)
|
$
|
2,723,592
|
(5,608
|
)
|
$
|
(306,788
|
)
|
$
|
3,114
|
$
|
3,216,301
|
|||||||||||||||||
Stock option exercises
|
—
|
—
|
675
|
—
|
—
|
93
|
5,121
|
—
|
5,796
|
|||||||||||||||||||||||||||
Issuance of stock for equity awards, net of forfeitures
|
—
|
—
|
(1,735
|
)
|
—
|
—
|
32
|
1,735
|
—
|
—
|
||||||||||||||||||||||||||
Tax withholdings on equity award vesting
|
—
|
—
|
—
|
—
|
—
|
(30
|
)
|
(2,031
|
)
|
—
|
(2,031
|
)
|
||||||||||||||||||||||||
Amortization of unearned share-based compensation
|
—
|
—
|
13,612
|
—
|
—
|
—
|
—
|
—
|
13,612
|
|||||||||||||||||||||||||||
Total comprehensive income, net of taxes
|
—
|
—
|
—
|
(4,288
|
)
|
142,347
|
—
|
—
|
672
|
138,731
|
||||||||||||||||||||||||||
Return of investment to noncontrolling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(817
|
)
|
(817
|
)
|
|||||||||||||||||||||||||
Balance at December 31, 2019
|
65,472
|
$
|
6,547
|
$
|
835,899
|
$
|
(37,799
|
)
|
$
|
2,865,939
|
(5,513
|
)
|
$
|
(301,963
|
)
|
$
|
2,969
|
$
|
3,371,592
|
|||||||||||||||||
Stock option exercises
|
—
|
—
|
26
|
—
|
—
|
15
|
327
|
—
|
353
|
|||||||||||||||||||||||||||
Issuance of stock for equity awards, net of forfeitures
|
—
|
—
|
(5,668
|
)
|
—
|
—
|
103
|
5,668
|
—
|
—
|
||||||||||||||||||||||||||
Tax withholdings on equity award vesting
|
—
|
—
|
—
|
—
|
—
|
(39
|
)
|
(3,193
|
)
|
—
|
(3,193
|
)
|
||||||||||||||||||||||||
Amortization of unearned share-based compensation
|
—
|
—
|
14,722
|
—
|
—
|
—
|
—
|
—
|
14,722
|
|||||||||||||||||||||||||||
Total comprehensive loss, net of taxes
|
—
|
—
|
—
|
(23,653
|
)
|
(272,546
|
)
|
—
|
—
|
954
|
(295,245
|
)
|
||||||||||||||||||||||||
Return of investment to noncontrolling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(676
|
)
|
(676
|
)
|
|||||||||||||||||||||||||
Balance at December 31, 2020
|
65,472
|
$
|
6,547
|
$
|
844,979
|
$
|
(61,452
|
)
|
$
|
2,593,393
|
(5,434
|
)
|
$
|
(299,161
|
)
|
$
|
3,247
|
$
|
3,087,553
|
(1) |
Summary of Significant Accounting Policies
|
|
Marine Transportation
|
Distribution and Services
|
Total
|
|||||||||
Balance at December 31, 2017 (gross)
|
$
|
403,376
|
$
|
549,226
|
$
|
952,602
|
||||||
Accumulated impairment and amortization
|
(15,872
|
)
|
(1,595
|
)
|
(17,467
|
)
|
||||||
Balance at December 31, 2017
|
387,504
|
547,631
|
935,135
|
|||||||||
Impairment
|
(2,702
|
)
|
—
|
(2,702
|
)
|
|||||||
Higman acquisition
|
4,657
|
—
|
4,657
|
|||||||||
Targa acquisition
|
16,116
|
—
|
16,116
|
|||||||||
Other
|
—
|
620
|
620
|
|||||||||
Balance at December 31, 2018 (gross)
|
424,149
|
549,846
|
973,995
|
|||||||||
Accumulated impairment and amortization
|
(18,574
|
)
|
(1,595
|
)
|
(20,169
|
)
|
||||||
Balance at December 31, 2018
|
$
|
405,575
|
$
|
548,251
|
$
|
953,826
|
||||||
Balance at December 31, 2019 (gross)
|
$
|
424,149
|
$
|
549,846
|
$
|
973,995
|
||||||
Accumulated impairment and amortization
|
(18,574
|
)
|
(1,595
|
)
|
(20,169
|
)
|
||||||
Balance at December 31, 2019
|
405,575
|
548,251
|
953,826
|
|||||||||
Impairment
|
—
|
(387,970
|
)
|
(387,970
|
)
|
|||||||
Savage acquisition
|
81,635
|
—
|
81,635
|
|||||||||
Convoy acquisition
|
—
|
10,309
|
10,309
|
|||||||||
Balance at December 31, 2020 (gross)
|
505,784
|
560,155
|
1,065,939
|
|||||||||
Accumulated impairment and amortization
|
(18,574
|
)
|
(389,565
|
)
|
(408,139
|
)
|
||||||
Balance at December 31, 2020
|
$
|
487,210
|
$
|
170,590
|
$
|
657,800
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
Other intangible assets – gross
|
$
|
203,217
|
$
|
332,656
|
||||
Accumulated amortization
|
(134,238
|
)
|
(121,974
|
)
|
||||
Other intangible assets – net
|
$
|
68,979
|
$
|
210,682
|
||||
Other intangible liabilities – gross
|
$
|
13,860
|
$
|
13,860
|
||||
Accumulated amortization
|
(10,960
|
)
|
(7,956
|
)
|
||||
Other intangible liabilities – net
|
$
|
2,900
|
$
|
5,904
|
(2) |
Acquisitions
|
|
Savage
|
Convoy
|
||||||
Accounts receivable
|
$
|
—
|
$
|
5,677
|
||||
Inventories
|
—
|
11,771
|
||||||
Prepaid expenses
|
1,067
|
177
|
||||||
Property and equipment
|
210,065
|
415
|
||||||
Operating lease right-of-use assets
|
27,085
|
3,713
|
||||||
Goodwill
|
81,635
|
10,309
|
||||||
Other intangibles
|
2,300
|
17,170
|
||||||
Total assets
|
$
|
322,152
|
$
|
49,232
|
||||
Accounts payable and accrued liabilities
|
$
|
68
|
$
|
8,339
|
||||
Operating lease liabilities, including current portion
|
43,085
|
3,713
|
||||||
Total liabilities
|
$
|
43,153
|
$
|
12,052
|
||||
Net assets acquired
|
$
|
278,999
|
$
|
37,180
|
Prepaid expenses
|
$
|
1,138
|
||
Property and equipment
|
247,122
|
|||
Other intangibles
|
340
|
|||
Total assets
|
$
|
248,600
|
||
|
||||
Other long-term liabilities
|
$
|
4,100
|
||
Net assets acquired
|
$
|
244,500
|
Cash
|
$
|
2,313
|
||
Accounts receivable
|
27,527
|
|||
Prepaid expenses
|
5,323
|
|||
Property and equipment
|
497,951
|
|||
Goodwill
|
4,657
|
|||
Other assets
|
30
|
|||
Total assets
|
$
|
537,801
|
||
Accounts payable
|
$
|
17,012
|
||
Accrued liabilities
|
14,127
|
|||
Deferred income taxes
|
40,524
|
|||
Other long-term liabilities
|
44,216
|
|||
Total liabilities
|
$
|
115,879
|
||
Net assets acquired
|
$
|
421,922
|
(3) |
Revenues
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
Marine transportation segment:
|
||||||||||||
Inland transportation
|
$
|
1,094,630
|
$
|
1,220,878
|
$
|
1,119,820
|
||||||
Coastal transportation
|
309,635
|
366,204
|
363,323
|
|||||||||
$
|
1,404,265
|
$
|
1,587,082
|
$
|
1,483,143
|
Distribution and services segment:
|
||||||||||||
Oil and gas
|
$
|
200,817
|
$
|
659,364
|
$
|
1,010,410
|
||||||
Commercial and industrial
|
566,326
|
591,953
|
477,144
|
|||||||||
$
|
767,143
|
$
|
1,251,317
|
$
|
1,487,554
|
(4) |
Segment Data
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
Revenues:
|
||||||||||||
Marine transportation
|
$
|
1,404,265
|
$
|
1,587,082
|
$
|
1,483,143
|
||||||
Distribution and services
|
767,143
|
1,251,317
|
1,487,554
|
|||||||||
$
|
2,171,408
|
$
|
2,838,399
|
$
|
2,970,697
|
|||||||
Segment profit (loss):
|
||||||||||||
Marine transportation
|
$
|
163,638
|
$
|
215,842
|
$
|
147,416
|
||||||
Distribution and services
|
(12,191
|
)
|
67,201
|
129,305
|
||||||||
Other
|
(612,798
|
)
|
(93,223
|
)
|
(162,562
|
)
|
||||||
$
|
(461,351
|
)
|
$
|
189,820
|
$
|
114,159
|
||||||
Depreciation and amortization:
|
||||||||||||
Marine transportation
|
$
|
186,798
|
$
|
179,742
|
$
|
182,307
|
||||||
Distribution and services
|
28,255
|
35,998
|
39,349
|
|||||||||
Other
|
4,868
|
3,892
|
3,316
|
|||||||||
$
|
219,921
|
$
|
219,632
|
$
|
224,972
|
|||||||
Capital expenditures:
|
||||||||||||
Marine transportation
|
$
|
133,990
|
$
|
217,364
|
$
|
284,953
|
||||||
Distribution and services
|
4,854
|
18,284
|
10,742
|
|||||||||
Other
|
9,341
|
12,516
|
6,166
|
|||||||||
$
|
148,185
|
$
|
248,164
|
$
|
301,861
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Total assets:
|
||||||||
Marine transportation
|
$
|
4,760,449
|
$
|
4,536,368
|
||||
Distribution and services
|
805,831
|
1,422,394
|
||||||
Other
|
357,894
|
120,335
|
||||||
$
|
5,924,174
|
$
|
6,079,097
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
General corporate expenses
|
$
|
(11,050
|
)
|
$
|
(13,643
|
)
|
$
|
(35,590
|
)
|
|||
Gain on disposition of assets
|
118
|
8,152
|
1,968
|
|||||||||
Impairments and other charges
|
(561,274
|
)
|
(35,525
|
)
|
(85,407
|
)
|
||||||
Lease cancellation costs
|
—
|
—
|
(2,403
|
)
|
||||||||
Interest expense
|
(48,739
|
)
|
(55,994
|
)
|
(46,856
|
)
|
||||||
Other income
|
8,147
|
3,787
|
5,726
|
|||||||||
$
|
(612,798
|
)
|
$
|
(93,223
|
)
|
$
|
(162,562
|
)
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
General corporate assets
|
$
|
355,205
|
$
|
118,310
|
||||
Investment in affiliates
|
2,689
|
2,025
|
||||||
$
|
357,894
|
$
|
120,335
|
(5) |
Long-Term Debt
|
December 31,
|
||||||||||||||||
|
2020
|
2019
|
||||||||||||||
Carrying Value
|
Fair Value
|
Carrying Value
|
Fair Value
|
|||||||||||||
Revolving Credit Facility (a)
|
$
|
250,000
|
$
|
250,000
|
$
|
—
|
$
|
—
|
||||||||
Term Loan (a)
|
375,000
|
375,000
|
375,000
|
375,000
|
||||||||||||
2.72% senior notes due February 27, 2020
|
—
|
—
|
150,000
|
151,547
|
||||||||||||
3.29% senior notes due February 27, 2023
|
350,000
|
364,538
|
350,000
|
353,216
|
||||||||||||
4.2% senior notes due March 1, 2028
|
500,000
|
581,115
|
500,000
|
541,546
|
||||||||||||
Credit Line
|
—
|
—
|
—
|
—
|
||||||||||||
Bank notes payable
|
40
|
40
|
16
|
16
|
||||||||||||
1,475,040
|
1,570,693
|
1,375,016
|
1,421,325
|
|||||||||||||
Unamortized debt discounts and issuance costs (b)
|
(6,454
|
)
|
—
|
(5,249
|
)
|
—
|
||||||||||
$
|
1,468,586
|
$
|
1,570,693
|
$
|
1,369,767
|
$
|
1,421,325
|
(a) |
Variable interest rate of 1.5% and 2.9% at December 31, 2020 and 2019, respectively.
|
(b) |
Excludes $2,650,000 attributable to the Revolving Credit Facility included in other assets at December 31, 2019.
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
Borrowings on bank credit facilities
|
$
|
582,277
|
$
|
1,351,158
|
$
|
2,302,433
|
||||||
Payments on bank credit facilities
|
(332,253
|
)
|
(1,768,534
|
)
|
(2,380,888
|
)
|
||||||
$
|
250,024
|
$
|
(417,376
|
)
|
$
|
(78,455
|
)
|
2021
|
40
|
|||
2022
|
—
|
|||
2023
|
381,250
|
|||
2024
|
593,750
|
|||
2025
|
—
|
|||
Thereafter
|
500,000
|
|||
$
|
1,475,040
|
(6) |
Leases
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
2021
|
$
|
40,224
|
$
|
33,374
|
||||
2022
|
33,543
|
25,911
|
||||||
2023
|
28,012
|
23,098
|
||||||
2024
|
23,578
|
19,162
|
||||||
2025
|
21,261
|
15,330
|
||||||
Thereafter
|
96,491
|
92,991
|
||||||
Total lease payments
|
243,109
|
209,866
|
||||||
Less: imputed interest
|
(46,863
|
)
|
(43,085
|
)
|
||||
Operating lease liabilities
|
$
|
196,246
|
$
|
166,781
|
|
Year Ended December 31,
|
|||||||
2020
|
2019
|
|||||||
Operating lease cost
|
$
|
43,810
|
$
|
39,064
|
||||
Variable lease cost
|
1,550
|
2,326
|
||||||
Short-term lease cost
|
25,387
|
31,340
|
||||||
Sublease income
|
(1,143
|
)
|
(420
|
)
|
||||
Total lease cost
|
$
|
69,604
|
$
|
72,310
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
Weighted average discount rate
|
4.1
|
%
|
4.0
|
%
|
||||
Weighted average remaining lease term
|
10 years
|
11 years
|
(7) |
Impairments and Other Charges
|
(8) |
Stock Award Plans
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
Compensation cost
|
$
|
14,722
|
$
|
13,612
|
$
|
19,104
|
||||||
Income tax benefit
|
$
|
4,143
|
$
|
3,368
|
$
|
5,903
|
|
Outstanding
Non-
Qualified or
Nonincentive
Stock
Awards
|
Weighted
Average
Exercise
Price
|
||||||
Outstanding at December 31, 2019
|
486,059
|
$
|
71.65
|
|||||
Granted
|
114,600
|
$
|
73.29
|
|||||
Exercised
|
(19,851
|
)
|
$
|
64.42
|
||||
Canceled or expired
|
(3,291
|
)
|
$
|
95.18
|
||||
Outstanding at December 31, 2020
|
577,517
|
$
|
72.09
|
|
Unvested
Restricted
Stock Award
Shares
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
||||||
Nonvested balance at December 31, 2019
|
134,669
|
$
|
63.28
|
|||||
Vested
|
(48,450
|
)
|
$
|
63.24
|
||||
Forfeited
|
(2,317
|
)
|
$
|
62.46
|
||||
Nonvested balance at December 31, 2020
|
83,902
|
$
|
63.33
|
|
Unvested RSUs
|
Weighted
Average Grant
Date Fair Value
Per Unit
|
||||||
Nonvested balance at December 31, 2019
|
255,167
|
$
|
74.96
|
|||||
Granted
|
153,460
|
$
|
73.04
|
|||||
Vested
|
(64,039
|
)
|
$
|
75.08
|
||||
Forfeited
|
(6,170
|
)
|
$
|
73.91
|
||||
Nonvested balance at December 31, 2020
|
338,418
|
$
|
74.09
|
|
Outstanding
Non-
Qualified or
Nonincentive
Stock
Awards
|
Weighted
Average
Exercise
Price
|
||||||
Outstanding at December 31, 2019
|
115,756
|
$
|
73.68
|
|||||
Exercised
|
(12,000
|
)
|
$
|
41.24
|
||||
Outstanding at December 31, 2020
|
103,756
|
$
|
77.44
|
|
Unvested
Restricted
Stock Award
Shares
|
Weighted
Average
Grant Date
Fair Value
Per Share
|
||||||
Nonvested balance at December 31, 2019
|
1,739
|
$
|
83.68
|
|||||
Granted
|
39,913
|
$
|
49.84
|
|||||
Vested
|
(40,748
|
)
|
$
|
51.28
|
||||
Nonvested balance at December 31, 2020
|
904
|
$
|
49.84
|
(9) |
Taxes on Income
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
Earnings (loss) before taxes on income:
|
||||||||||||
United States
|
$
|
(461,569
|
)
|
$
|
190,839
|
$
|
117,800
|
|||||
Foreign
|
218
|
(1,019
|
)
|
(3,641
|
)
|
|||||||
$
|
(461,351
|
)
|
$
|
189,820
|
$
|
114,159
|
||||||
Provision (benefit) for taxes on income:
|
||||||||||||
U.S. Federal:
|
||||||||||||
Current
|
$
|
(218,613
|
)
|
$
|
(312
|
)
|
$
|
—
|
||||
Deferred
|
37,436
|
45,133
|
27,102
|
|||||||||
$
|
(181,177
|
)
|
$
|
44,821
|
$
|
27,102
|
||||||
U.S. State:
|
||||||||||||
Current
|
$
|
3,421
|
$
|
76
|
$
|
(243
|
)
|
|||||
Deferred
|
(12,273
|
)
|
1,706
|
7,619
|
||||||||
$
|
(8,852
|
)
|
$
|
1,782
|
$
|
7,376
|
||||||
Foreign:
|
||||||||||||
Current
|
$
|
270
|
$
|
198
|
$
|
443
|
||||||
Deferred
|
—
|
—
|
160
|
|||||||||
$
|
270
|
$
|
198
|
$
|
603
|
|||||||
Consolidated:
|
||||||||||||
Current
|
$
|
(214,922
|
)
|
$
|
(38
|
)
|
$
|
200
|
||||
Deferred
|
25,163
|
46,839
|
34,881
|
|||||||||
$
|
(189,759
|
)
|
$
|
46,801
|
$
|
35,081
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
United States income tax statutory rate
|
21.0
|
%
|
21.0
|
%
|
21.0
|
%
|
||||||
State and local taxes, net of federal benefit
|
1.2
|
0.7
|
6.5
|
|||||||||
CARES Act – net operating loss carryback
|
21.3
|
—
|
—
|
|||||||||
Other – net
|
(2.4
|
)
|
3.0
|
3.2
|
||||||||
41.1
|
%
|
24.7
|
%
|
30.7
|
%
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Deferred tax assets:
|
||||||||
Allowance for doubtful accounts
|
$
|
1,793
|
$
|
1,758
|
||||
Inventory
|
13,496
|
13,401
|
||||||
Insurance accruals
|
4,864
|
4,397
|
||||||
Deferred compensation
|
6,040
|
1,109
|
||||||
Unrealized loss on defined benefit plans
|
15,929
|
10,253
|
||||||
Goodwill and other intangibles
|
44,487
|
—
|
||||||
Operating loss carryforwards
|
82,186
|
143,181
|
||||||
Pension benefits
|
7,444
|
6,825
|
||||||
Other
|
5,480
|
7,392
|
||||||
181,719
|
188,316
|
|||||||
Valuation allowances
|
(18,025
|
)
|
(20,525
|
)
|
||||
163,694
|
167,791
|
|||||||
Deferred tax liabilities:
|
||||||||
Property
|
(678,916
|
)
|
(620,891
|
)
|
||||
Deferred state taxes
|
(74,468
|
)
|
(63,640
|
)
|
||||
Goodwill and other intangibles
|
—
|
(54,844
|
)
|
|||||
Other
|
(17,154
|
)
|
(16,620
|
)
|
||||
(770,538
|
)
|
(755,995
|
)
|
|||||
$
|
(606,844
|
)
|
$
|
(588,204
|
)
|
|
Year Ended December 31,
|
|||||||||||
2020
|
2019
|
2018
|
||||||||||
Balance at beginning of year
|
$
|
883
|
$
|
1,443
|
$
|
1,787
|
||||||
Additions based on tax positions related to the current year
|
262
|
51
|
254
|
|||||||||
Additions for tax positions of prior years
|
114
|
58
|
70
|
|||||||||
Reductions for tax positions of prior years
|
(266
|
)
|
(669
|
)
|
(668
|
)
|
||||||
Settlements
|
(210
|
)
|
—
|
—
|
||||||||
Balance at end of year
|
$
|
783
|
$
|
883
|
$
|
1,443
|
(10) |
Earnings Per Share
|
Year Ended December 31,
|
||||||||||||
|
2020
|
2019
|
2018
|
|||||||||
Net earnings (loss) attributable to Kirby
|
$
|
(272,546
|
)
|
$
|
142,347
|
$
|
78,452
|
|||||
Undistributed earnings allocated to restricted shares
|
—
|
(369
|
)
|
(324
|
)
|
|||||||
Income (loss) available to Kirby common stockholders — basic
|
(272,546
|
)
|
141,978
|
78,128
|
||||||||
Undistributed earnings allocated to restricted shares
|
—
|
369
|
324
|
|||||||||
Undistributed earnings reallocated to restricted shares
|
—
|
(369
|
)
|
(323
|
)
|
|||||||
Income (loss) available to Kirby common stockholders — diluted
|
$
|
(272,546
|
)
|
$
|
141,978
|
$
|
78,129
|
|||||
Shares outstanding:
|
||||||||||||
Weighted average common stock issued and outstanding
|
60,021
|
59,905
|
59,804
|
|||||||||
Weighted average unvested restricted stock
|
(109
|
)
|
(155
|
)
|
(247
|
)
|
||||||
Weighted average common stock outstanding — basic
|
59,912
|
59,750
|
59,557
|
|||||||||
Dilutive effect of stock options and restricted stock units
|
—
|
159
|
132
|
|||||||||
Weighted average common stock outstanding — diluted
|
59,912
|
59,909
|
59,689
|
|||||||||
Net earnings (loss) per share attributable to Kirby common stockholders:
|
||||||||||||
Basic
|
$
|
(4.55
|
)
|
$
|
2.38
|
$
|
1.31
|
|||||
Diluted
|
$
|
(4.55
|
)
|
$
|
2.37
|
$
|
1.31
|
(11) |
Inventories
|
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Finished goods
|
$
|
255,491
|
$
|
291,214
|
||||
Work in process
|
54,184
|
60,187
|
||||||
$
|
309,675
|
$
|
351,401
|
(12) |
Retirement Plans
|
|
December 31,
|
Current
Minimum, Target
and Maximum
|
||||||||||
Asset Category
|
2020
|
2019
|
Allocation Policy
|
|||||||||
U.S. equity securities
|
53
|
%
|
53
|
%
|
30% — 50%— 70
|
%
|
||||||
International equity securities
|
20
|
19
|
0% — 20%— 30
|
%
|
||||||||
Debt securities
|
25
|
26
|
15% — 30%— 55
|
%
|
||||||||
Cash and cash equivalents
|
2
|
2
|
0% — 0%— 5
|
%
|
||||||||
100
|
%
|
100
|
%
|
Other
Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
Welfare Plan
|
|||||||||||||||||||||||
Pension Plans
|
SERP
|
|||||||||||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
||||||||||||||||||
Change in benefit obligation
|
||||||||||||||||||||||||
Benefit obligation at beginning of year
|
$
|
442,861
|
$
|
381,483
|
$
|
1,225
|
$
|
1,246
|
$
|
662
|
$
|
743
|
||||||||||||
Service cost
|
7,671
|
7,364
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Interest cost
|
15,630
|
16,493
|
40
|
52
|
22
|
31
|
||||||||||||||||||
Actuarial loss (gain)
|
58,851
|
49,478
|
55
|
72
|
84
|
(22
|
)
|
|||||||||||||||||
Gross benefits paid
|
(11,029
|
)
|
(11,957
|
)
|
(146
|
)
|
(145
|
)
|
(139
|
)
|
(90
|
)
|
||||||||||||
Settlements
|
(5,290
|
)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Benefit obligation at end of year
|
$
|
508,694
|
$
|
442,861
|
$
|
1,174
|
$
|
1,225
|
$
|
629
|
$
|
662
|
||||||||||||
Accumulated benefit obligation at end of year
|
$
|
479,999
|
$
|
417,981
|
$
|
1,174
|
$
|
1,225
|
$
|
629
|
$
|
662
|
Weighted-average assumption used to determine benefit obligation at end of year
|
||||||||||||||||||||||||
Discount rate (a)
|
2.8% / 2.9
|
%
|
3.5
|
%
|
2.8
|
%
|
3.5
|
%
|
2.8
|
%
|
3.5
|
%
|
||||||||||||
Rate of compensation increase
|
Service-based table
|
Service-based table
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Health care cost trend rate
|
||||||||||||||||||||||||
Initial rate
|
—
|
—
|
—
|
—
|
6.5
|
%
|
6.75
|
%
|
||||||||||||||||
Ultimate rate
|
—
|
—
|
—
|
—
|
5.0
|
%
|
5.0
|
%
|
||||||||||||||||
Years to ultimate
|
—
|
—
|
—
|
—
|
2025
|
2025
|
Change in plan assets
|
||||||||||||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
358,197
|
$
|
303,151
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Actual return on plan assets
|
51,024
|
63,939
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Employer contribution
|
2,235
|
3,064
|
146
|
145
|
139
|
90
|
||||||||||||||||||
Gross benefits paid
|
(11,029
|
)
|
(11,957
|
)
|
(146
|
)
|
(145
|
)
|
(139
|
)
|
(90
|
)
|
||||||||||||
Settlements
|
(5,290
|
)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Fair value of plan assets at end of year
|
$
|
395,137
|
$
|
358,197
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
(a) |
The 2020 discount rate was 2.8% for the Kirby pension plan and 2.9% for the Higman pension plan.
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||
Pension Benefits
|
Postretirement
Welfare Plan
|
|||||||||||||||||||||||
Pension Plans
|
SERP
|
|||||||||||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
||||||||||||||||||
Funded status at end of year
|
||||||||||||||||||||||||
Fair value of plan assets
|
$
|
395,137
|
$
|
358,197
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Benefit obligations
|
(508,694
|
)
|
(442,861
|
)
|
(1,174
|
)
|
(1,225
|
)
|
(629
|
)
|
(662
|
)
|
||||||||||||
Funded status and amount recognized at end of year
|
$
|
(113,557
|
)
|
$
|
(84,664
|
)
|
$
|
(1,174
|
)
|
$
|
(1,225
|
)
|
$
|
(629
|
)
|
$
|
(662
|
)
|
Amounts recognized in the consolidated balance sheets
|
||||||||||||||||||||||||
Current liability
|
—
|
—
|
(159
|
)
|
(159
|
)
|
(58
|
)
|
(60
|
)
|
||||||||||||||
Long-term liability
|
(113,557
|
)
|
(84,664
|
)
|
(1,015
|
)
|
(1,066
|
)
|
(571
|
)
|
(602
|
)
|
Amounts recognized in accumulated other comprehensive income
|
||||||||||||||||||||||||
Net actuarial loss (gain)
|
$
|
81,376
|
$
|
52,160
|
$
|
480
|
$
|
460
|
$
|
(3,189
|
)
|
$
|
(3,795
|
)
|
||||||||||
Prior service cost (credit)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accumulated other compensation income
|
$
|
81,376
|
$
|
52,160
|
$
|
480
|
$
|
460
|
$
|
(3,189
|
)
|
$
|
(3,795
|
)
|
|
Other Postretirement
Benefits
|
|||||||||||||||||||||||
Pension Benefits
|
Postretirement
Welfare Plan
|
|||||||||||||||||||||||
Pension Plans
|
SERP
|
|||||||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||||||||
Expected employer contributions
|
||||||||||||||||||||||||
First year
|
$
|
2,385
|
$
|
2,407
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Expected benefit payments (gross)
|
||||||||||||||||||||||||
Year one
|
$
|
13,902
|
$
|
12,063
|
$
|
162
|
$
|
162
|
$
|
59
|
$
|
61
|
||||||||||||
Year two
|
14,902
|
13,123
|
136
|
158
|
49
|
62
|
||||||||||||||||||
Year three
|
16,123
|
14,300
|
110
|
133
|
48
|
51
|
||||||||||||||||||
Year four
|
17,284
|
15,572
|
106
|
107
|
47
|
51
|
||||||||||||||||||
Year five
|
18,315
|
16,857
|
101
|
103
|
46
|
49
|
||||||||||||||||||
Next five years
|
106,400
|
100,587
|
406
|
426
|
202
|
220
|
|
Pension Benefits
|
|||||||||||||||||||||||
Pension Plans
|
SERP
|
|||||||||||||||||||||||
2020
|
2019
|
2018
|
2020
|
2019
|
2018
|
|||||||||||||||||||
Components of net periodic benefit cost
|
||||||||||||||||||||||||
Service cost
|
$
|
7,671
|
$
|
7,364
|
$
|
7,622
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Interest cost
|
15,630
|
16,493
|
15,499
|
40
|
52
|
49
|
||||||||||||||||||
Expected return on plan assets
|
(23,790
|
)
|
(20,956
|
)
|
(22,406
|
)
|
—
|
—
|
—
|
|||||||||||||||
Amortization of actuarial loss
|
2,399
|
1,438
|
2,890
|
35
|
28
|
23
|
||||||||||||||||||
Net periodic benefit cost
|
1,910
|
4,339
|
3,605
|
75
|
80
|
72
|
||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income
|
||||||||||||||||||||||||
Current year actuarial loss (gain)
|
31,616
|
6,497
|
(7,396
|
)
|
55
|
73
|
(70
|
)
|
||||||||||||||||
Recognition of actuarial loss
|
(2,399
|
)
|
(1,438
|
)
|
(2,890
|
)
|
(35
|
)
|
(28
|
)
|
(23
|
)
|
||||||||||||
Total recognized in other comprehensive income
|
29,217
|
5,059
|
(10,286
|
)
|
20
|
45
|
(93
|
)
|
||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
31,127
|
$
|
9,398
|
$
|
(6,681
|
)
|
$
|
95
|
$
|
125
|
$
|
(21
|
)
|
||||||||||
Weighted average assumptions used to determine net periodic benefit cost
|
||||||||||||||||||||||||
Discount rate (a)
|
3.5% / 3.10
|
%
|
4.4
|
%
|
3.7
|
%
|
3.5
|
%
|
4.4
|
%
|
3.7
|
%
|
||||||||||||
Expected long-term rate of return on plan assets
|
6.75
|
%
|
7.0
|
%
|
7.0
|
%
|
—
|
—
|
—
|
|||||||||||||||
Rate of compensation increase
|
Service- based table
|
Service- based table
|
Service- based table
|
—
|
—
|
—
|
(a) |
The 2020 discount rate for benefit cost is 3.5% for the Kirby pension plan and 3.1% for the Higman pension plan. The 2018 discount rate for benefit cost for the Higman pension plan was changed from 4.13% as of February 14, 2018 and 4.02% as of March 31, 2018 to 4.40% as of December 31, 2018.
|
|
Other Postretirement Benefits
|
|||||||||||
Postretirement Welfare Plan
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Components of net periodic benefit cost
|
||||||||||||
Interest cost
|
$
|
22
|
$
|
31
|
$
|
24
|
||||||
Amortization of actuarial gain
|
(522
|
)
|
(540
|
)
|
(596
|
)
|
||||||
Net periodic benefit cost
|
(500
|
)
|
(509
|
)
|
(572
|
)
|
||||||
Other changes in benefit obligations recognized in other comprehensive income
|
||||||||||||
Current year actuarial loss (gain)
|
84
|
(22
|
)
|
144
|
||||||||
Recognition of actuarial gain
|
522
|
540
|
596
|
|||||||||
Total recognized in other comprehensive income
|
606
|
518
|
740
|
|||||||||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
106
|
$
|
9
|
$
|
168
|
||||||
Weighted average assumptions used to determine net periodic benefit cost
|
||||||||||||
Discount rate
|
3.5
|
%
|
4.4
|
%
|
3.7
|
%
|
||||||
Health care cost trend rate:
|
||||||||||||
Initial rate
|
6.75
|
%
|
7.0
|
%
|
7.0
|
%
|
||||||
Ultimate rate
|
5.0
|
%
|
5.0
|
%
|
5.0
|
%
|
||||||
Years to ultimate
|
2025
|
2025
|
2022
|
(13) |
Other Comprehensive Income (Loss)
|
Year Ended December 31
|
||||||||||||||||||||||||||||||||||||
|
2020
|
2019
|
2018
|
|||||||||||||||||||||||||||||||||
Gross
Amount
|
Income
Tax
(Provision)
Benefit
|
Net
Amount
|
Gross
Amount
|
Income
Tax
(Provision)
Benefit
|
Net
Amount
|
Gross
Amount
|
Income
Tax
Provision
|
Net
Amount
|
||||||||||||||||||||||||||||
Pension and postretirement benefits (a):
|
||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss
|
$
|
1,912
|
$
|
(483
|
)
|
$
|
1,429
|
$
|
926
|
$
|
(236
|
)
|
$
|
690
|
$
|
2,317
|
$
|
(585
|
)
|
$
|
1,732
|
|||||||||||||||
Actuarial gains (losses)
|
(31,755
|
)
|
7,006
|
(24,749
|
)
|
(6,548
|
)
|
1,655
|
(4,893
|
)
|
7,322
|
(1,416
|
)
|
5,906
|
||||||||||||||||||||||
Adoption of ASU 2018-02 – reclassification to retained earnings
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(7,925
|
)
|
(7,925
|
)
|
|||||||||||||||||||||||||
Foreign currency translation adjustments
|
(333
|
)
|
—
|
(333
|
)
|
(85
|
)
|
—
|
(85
|
)
|
(819
|
)
|
—
|
(819
|
)
|
|||||||||||||||||||||
Total
|
$
|
(30,176
|
)
|
$
|
6,523
|
$
|
(23,653
|
)
|
$
|
(5,707
|
)
|
$
|
1,419
|
$
|
(4,288
|
)
|
$
|
8,820
|
$
|
(9,926
|
)
|
$
|
(1,106
|
)
|
(a) |
Actuarial gains (losses) are amortized into other income (expense). (See Note 12 – Retirement Plans)
|
(14) |
Contingencies and Commitments
|
(15) |
Related Party Transactions
|
(16) |
Quarterly Results (Unaudited)
|
|
Three Months Ended
|
|||||||||||||||
March 31,
2020
|
June 30,
2020
|
September 30,
2020
|
December 31,
2020
|
|||||||||||||
Revenues
|
$
|
643,926
|
$
|
541,159
|
$
|
496,567
|
$
|
489,756
|
||||||||
Costs and expenses
|
1,154,114
|
506,718
|
466,340
|
465,113
|
||||||||||||
Gain (loss) on disposition of assets
|
492
|
(189
|
)
|
(316
|
)
|
131
|
||||||||||
Operating income (loss)
|
(509,696
|
)
|
34,252
|
29,911
|
24,774
|
|||||||||||
Other income
|
2,723
|
2,290
|
1,172
|
1,962
|
||||||||||||
Interest expense
|
(12,799
|
)
|
(12,708
|
)
|
(11,809
|
)
|
(11,423
|
)
|
||||||||
Earnings (loss) before taxes on income
|
(519,772
|
)
|
23,834
|
19,274
|
15,313
|
|||||||||||
Benefit for taxes on income
|
172,809
|
1,429
|
8,419
|
7,102
|
||||||||||||
Net earnings (loss)
|
(346,963
|
)
|
25,263
|
27,693
|
22,415
|
|||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(278
|
)
|
(261
|
)
|
(204
|
)
|
(211
|
)
|
||||||||
Net earnings (loss) attributable to Kirby
|
$
|
(347,241
|
)
|
$
|
25,002
|
$
|
27,489
|
$
|
22,204
|
|||||||
Net earnings (loss) per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
(5.80
|
)
|
$
|
0.42
|
$
|
0.46
|
$
|
0.37
|
|||||||
Diluted
|
$
|
(5.80
|
)
|
$
|
0.42
|
$
|
0.46
|
$
|
0.37
|
|
Three Months Ended
|
|||||||||||||||
March 31,
2019
|
June 30,
2019
|
September 30,
2019
|
December 31,
2019
|
|||||||||||||
Revenues
|
$
|
744,621
|
$
|
771,042
|
$
|
666,809
|
$
|
655,927
|
||||||||
Costs and expenses
|
674,672
|
698,317
|
588,534
|
643,001
|
||||||||||||
Gain (loss) on disposition of assets
|
2,157
|
3,118
|
(374
|
)
|
3,251
|
|||||||||||
Operating income
|
72,106
|
75,843
|
77,901
|
16,177
|
||||||||||||
Other income (expense)
|
(568
|
)
|
2,381
|
864
|
1,110
|
|||||||||||
Interest expense
|
(13,201
|
)
|
(15,515
|
)
|
(14,310
|
)
|
(12,968
|
)
|
||||||||
Earnings before taxes on income
|
58,337
|
62,709
|
64,455
|
4,319
|
||||||||||||
Provision for taxes on income
|
(13,880
|
)
|
(15,269
|
)
|
(16,305
|
)
|
(1,347
|
)
|
||||||||
Net earnings
|
44,457
|
47,440
|
48,150
|
2,972
|
||||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(161
|
)
|
(153
|
)
|
(163
|
)
|
(195
|
)
|
||||||||
Net earnings attributable to Kirby
|
$
|
44,296
|
$
|
47,287
|
$
|
47,987
|
$
|
2,777
|
||||||||
Net earnings per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.74
|
$
|
0.79
|
$
|
0.80
|
$
|
0.05
|
||||||||
Diluted
|
$
|
0.74
|
$
|
0.79
|
$
|
0.80
|
$
|
0.05
|
Item 15. |
Exhibits and Financial Statement Schedules
|
Exhibit
Number
|
Description of Exhibit
|
|
— Securities Purchase Agreement among Kirby Corporation, Higman Marine, Inc. and the parties named therein dated February 4, 2018 (incorporated by reference to Exhibit 2.5 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017).
|
||
— Restated Articles of Incorporation of the Company with all amendments to date (incorporated by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
|
||
— Bylaws of the Company, as amended to March 17, 2020 (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014).
|
||
— Amendment to Bylaws of Kirby Corporation dated March 18, 2020 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on March 19, 2020)
|
||
4.1
|
See Exhibits 3.1, 3.2, and 3.3 hereof for provisions of our Restated Articles of Incorporation of the Company with all amendments to date and the Bylaws of the Company, as amended to date (incorporated by reference to Exhibit 3.1 and 3.2, respectively, to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 and Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on March 19, 2020).
|
|
4.2
|
Long-term debt instruments are omitted pursuant to Item 601(b)(4) of Regulation S-K. The Registrant will furnish copies of such instruments to the Commission upon request.
|
— Amended and Restated Credit Agreement dated as of March 27, 2019 among Kirby Corporation, JPMorgan 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 April 2, 2019).
|
||
— 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).
|
||
— Annual Incentive Plan Guidelines for 2020 (incorporated by reference to Exhibit 10.6 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019).
|
||
— Annual Incentive Plan Guidelines for 2021.
|
||
— 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).
|
||
— 2005 Stock and Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019).
|
||
— Nonemployee Director Compensation Program (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018).
|
||
— 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*
|
— Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
101.SCH*
|
— Inline XBRL Taxonomy Extension Schema Document
|
|
101.CAL*
|
— Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF*
|
— Inline XBRL Taxonomy Extension Definitions Linkbase Document
|
|
101.LAB*
|
— Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE*
|
— Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
104*
|
— Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
* |
Filed herewith.
|
† |
Management contract, compensatory plan or arrangement.
|
Item 16. |
Form 10-K Summary
|
KIRBY CORPORATION
|
||
(REGISTRANT)
|
||
By:
|
/s/ WILLIAM G. HARVEY
|
|
William G. Harvey
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
Dated: February 23, 2021
|
Signature
|
Capacity
|
Date
|
||
/s/ JOSEPH H. PYNE
|
Chairman of the Board and Director
|
February 23, 2021
|
||
Joseph H. Pyne
|
||||
/s/ DAVID W. GRZEBINSKI
|
President, Chief Executive Officer,
|
February 23, 2021
|
||
David W. Grzebinski
|
and Director
|
|||
(Principal Executive Officer)
|
||||
/s/ WILLIAM G. HARVEY
|
Executive Vice President and
|
February 23, 2021
|
||
William G. Harvey
|
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
||||
/s/ RONALD A. DRAGG
|
Vice President, Controller and
|
February 23, 2021
|
||
Ronald A. Dragg
|
Assistant Secretary
|
|||
(Principal Accounting Officer)
|
||||
/s/ ANNE-MARIE N. AINSWORTH
|
Director
|
February 23, 2021
|
||
Anne-Marie N. Ainsworth
|
||||
/s/ RICHARD J. ALARIO
|
Director
|
February 23, 2021
|
||
Richard J. Alario
|
||||
/s/ TANYA S. BEDER
|
Director
|
February 23, 2021
|
||
Tanya S. Beder
|
||||
/s/ BARRY E. DAVIS
|
Director
|
February 23, 2021
|
||
Barry E. Davis
|
||||
/s/ C. SEAN DAY
|
Director
|
February 23, 2021
|
||
C. Sean Day
|
||||
/s/ MONTE J. MILLER
|
Director
|
February 23, 2021
|
||
Monte J. Miller
|
||||
/s/ RICHARD R. STEWART
|
Director
|
February 23, 2021
|
||
Richard R. Stewart
|
||||
/s/ WILLIAM M. WATERMAN
|
Director
|
February 23, 2021
|
||
William M. Waterman
|
Introduction
|
2
|
The 2021 Annual Incentive Plan
|
3
|
Plan Objectives
|
3
|
Business Groups
|
3
|
Performance Period
|
3
|
Eligibility
|
4
|
Individual Bonus Targets
|
4
|
Aggregate Payment Amount
|
4
|
Performance Measures
|
5
|
Business Group Weighting
|
5
|
Performance Standards for Interim Incentive Payment Calculations
|
6
|
Administration
|
7
|
|
• |
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.
|
Kirby Corporate Services (“KCS”)
|
ThermoKing (“TK/CON”)
|
||
Kirby Inland Marine, LP (“KIM”)1
|
Kirby Engine Systems, Inc. (“KES”)
|
||
Kirby Offshore Marine, LLC (“KOM”)
|
Atlantic and Florida Detroit Diesel Allison (“DDAs”)
|
||
S&S and United (S&S UE)
|
|
• |
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.
|
|
• |
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 paid for the
Performance Period, unless their termination reason is death or disability or if they meet the requirements of a retirement.
|
|
• |
Participation in the Plan in 2021 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 (Earnings before interest, taxes, depreciation and amortization)
|
|
• |
EPS (Earnings per share)
|
|
• |
OP/ESG (metrics set on annual basis)
|
Business Group
|
Corp
|
KIM
|
KOM
|
KDS
|
KES
|
KCS
|
100%
|
||||
KIM
|
30%
|
70%
|
|||
KOM
|
30%
|
70%
|
|||
Marine President
|
50%
|
35%
|
15%
|
||
Marine Shared
|
30%
|
50%
|
20%
|
||
KES
|
30%
|
70%
|
|||
KES President
|
50%
|
50%
|
|||
United/S&S
|
30%
|
70%
|
|||
KDS President
|
50%
|
50%
|
|||
KDS Shared
|
30%
|
70%
|
Corporate and Inland Marine
|
|||
Performance
Level
|
Definition
|
Relationship to
Budget
|
% of Target
Used for
Calculation |
Below Threshold
|
Performance did not meet minimum level
|
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%
|
Offshore Marine, Engine Systems, ThermoKing, Detroit Diesel Allison
|
|||
Performance
Level
|
Definition
|
Relationship to
Budget
|
% of Target
Used for
Calculation
|
Below Threshold
|
Performance did not meet minimum level
|
less than 75% of budget
|
0%
|
Threshold
|
Minimum acceptable performance for payout
|
75% of budget
|
50%
|
Target
|
Expected performance at stretch level
|
100% of budget
|
100%
|
Maximum
|
Outstanding performance
|
125% of budget
|
200%
|
KDS President/Shared Employees
|
|||
Performance
Level
|
Definition
|
Relationship to
Budget
|
% of Target
Used for
Calculation
|
Below Threshold
|
Performance did not meet minimum level
|
less than 70% of budget
|
0%
|
Threshold
|
Minimum acceptable performance for payout
|
70% of budget
|
50%
|
Target
|
Expected performance at stretch level
|
100% of budget
|
100%
|
Maximum
|
Outstanding performance
|
130% of budget
|
200%
|
S&S and United
|
|||
Performance
Level
|
Definition
|
Relationship to
Budget
|
% of Target
Used for
Calculation
|
Below Threshold
|
Performance did not meet minimum level
|
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 the threshold and maximum percentages 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. As examples, 90% of budget for KIM would result in 75% of target used in the calculation of a preliminary payment amount and 105% of budget would
result in 125% of target used for the calculation of a preliminary payment amount.
|
|
• |
The target amount determined for each performance measure is then multiplied by the weight for the performance measure 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 to calculate 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 “officers” for purposes of Section 16 of the Securities Exchange Act of 1934, (ii) whose bonus target is 50% or more of base
salary or (iii) 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 preliminary incentive payment amount calculated for each participant.
|
|
• |
The Compensation Committee has discretion to modify the performance measures or adjust the calculation of the preliminary 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 may receive an amount more than 200% of the individual bonus target established for such
participant (the “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 preliminary 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
|
|
• |
Determine in its discretion the final incentive payments for 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 – of 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’ preliminary 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 Distribution & Services, Inc.
|
Delaware
|
|
Kirby Tankships, Inc.
|
Delaware
|
|
Kirby Ocean Transport Company
|
Delaware
|
|
Kirby Offshore Marine, LLC
|
Delaware
|
|
Adaptive KRM, LLC
|
Texas
|
|
K Equipment, LLC
|
Texas
|
|
Osprey Line, L.L.C. (66 2/3%)
|
Texas
|
|
The Hollywood Camp, LLC
|
Texas
|
|
||
CONTROLLED SUBSIDIARIES
|
||
|
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 (subsidiary of Kirby Inland Marine, LP)
|
Texas
|
|
Dixie Carriers, Inc. (subsidiary of Kirby Inland Marine, LP)
|
Texas
|
|
San Jac Marine, LLC (subsidiary of Kirby Inland Marine, LP)
|
Delaware
|
|
Diesel Dash LLC (subsidiary of Kirby Distribution & Services, Inc.)
|
Delaware
|
|
Kirby Engine Systems LLC (subsidiary of Kirby Distribution & Services, Inc.)
|
Delaware
|
|
Marine Systems, Inc. (subsidiary of Kirby Engine Systems LLC)
|
Louisiana
|
|
Engine Systems, Inc. (subsidiary of Kirby Engine Systems LLC)
|
Delaware
|
|
United Holdings LLC (subsidiary of Kirby Distribution & Services, Inc.)
|
Delaware
|
|
United Engines LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
UE Manufacturing LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
Compression Systems LLC (subsidiary of United Holdings LLC)
|
Colorado
|
|
Thermo King of Houston, LLC (subsidiary of United Holdings LLC)
|
Texas
|
|
Thermo King of Dallas, LLC (subsidiary of United Holdings LLC)
|
Texas
|
|
San Antonio Thermo King, Inc. (subsidiary of Thermo King of Houston, 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
|
|
Stewart & Stevenson LLC (subsidiary of Kirby Distribution & Services, Inc.)
|
Delaware
|
|
Stewart & Stevenson Power Products LLC (subsidiary of Stewart & Stevenson LLC)
|
Delaware
|
|
Stewart & Stevenson Canada Inc. (subsidiary of Stewart & Stevenson LLC)
|
Canada
|
|
Stewart & Stevenson de las Americas Colombia Ltda. (Stewart & Stevenson Petroleum Services LLC 1% General Partner,
Stewart & Stevenson LLC 99% Limited Partner)
|
Colombia
|
|
/s/ DAVID W. GRZEBINSKI
|
|
David W. Grzebinski
|
|
President and Chief Executive Officer
|
|
|
Dated: February 23, 2021
|
|
|
/s/ WILLIAM G. HARVEY
|
|
William G. Harvey
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
|
Dated: February 23, 2021
|
|
|
/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
|
|
|
Dated: February 23, 2021
|
|