The condensed financial statements included herein have been prepared by Kirby Corporation (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies normally included in annual financial statements, have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.2016.

In August 2016,March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”) which requires employers to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations.  The standard allows only the service cost component to be eligible for capitalization when applicable.  ASU 2017-07 is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted.  This standard shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost benefit in assets.  The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”) to create consistency in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Improvements“Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, forfeitures, minimum statutory tax withholding requirements, classification as either equity or liabilities, and classification on the statement of cash flows. The Company adopted the provisions of ASU 2016-09 is effective for annualon January 1, 2017.  ASU 2016-09 requires all excess tax benefits and interim periods beginning after December 15, 2016. Early adoption is permitted with any adjustments reflectedtax deficiencies be recognized as income tax expense or benefit in the income statement, thus eliminating additional paid-in capital pools.  The Company recognized a cumulative effect adjustment of $8,486,000 to retained earnings on a modified retrospective basis as of January 1, 2017 and will apply the beginningnew standard guidance prospectively to all excess tax benefits and tax deficiencies resulting from settlements after January 1, 2017.  The standard also requires a policy election to either estimate the number of the fiscal year of adoption.awards that are expected to vest or account for forfeitures when they occur.  The Company is currently evaluatingwill elect to account for forfeitures when they occur.  Also, the impactstandard requires that excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of adoptingcash flows, which differs from the Company’s historical classification of excess tax benefits as cash inflows from financing activities.  The Company elected to apply this guidance.provision using the prospective transition method.  Additionally, the standard requires cash paid by an employer when directly withholding shares for tax withholding purposes to be classified in the statement of cash flows as a financing activity, which differs from the Company’s previous method of classification of such cash payments as an operating activity.  The Company applied this provision retrospectively and, for the three months ended March 31, 2016, reclassified $1,749,000, which increased net cash provided by operating activities and net cash used in financing activities.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective approach is required. The Company is currently evaluatinghas formed a project team to evaluate the impact that the adoption of this standard will have on its consolidated financial statements and disclosures. The project team has completed training on the new standard and has started lease review and documentation, but the Company has not yet determined the effect of ASU 2016-02 on its ongoing financial reporting.

In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) which requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. ASU 2015-17 is effective for annual and interim periods beginning after December 15, 2016 but early application is permitted and theThe guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not anticipateadopted the provisions of ASU 2015-17 on January 1, 2017 on a material impact on itsretrospective basis.  The December 31, 2016 current deferred tax assets of $13,604,000 have been reclassified in the consolidated financial statements at the time of adoption of this new standard.balance sheet from current deferred income taxes asset to noncurrent deferred income taxes liability.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”) which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim period or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

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

The following table presents the details of inventories as of September 30, 2016March 31, 2017 and December 31, 20152016 (in thousands):

The estimated fair value of total debt outstanding at September 30, 2016March 31, 2017 and December 31, 20152016 was $732,124,000$664,691,000 and $764,781,000,$715,330,000, respectively, which differs from the carrying amounts of $726,004,000$674,552,000 and $774,849,000,$722,802,000, respectively, included in the consolidated financial statements. The fair value was determined using an income approach that relies on inputs such as yield curves. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments.

Certain assets are measured at fair value on a nonrecurring basis. These assets are adjusted to fair value when there is evidence of impairment. During the ninethree months ended September 30, 2016,March 31, 2017, there was no indication that the Company’s long-lived assets were impaired, and accordingly, measurement at fair value was not required.

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options, restricted stock and performance awards. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. Substantially all stock options outstanding under the plan have terms of seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At September 30, 2016, 1,987,792March 31, 2017, 1,745,801 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights.

The following is a summary of the stock option activity under the employee plan described above for the ninethree months ended September 30, 2016:March 31, 2017:

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at September 30, 2016:March 31, 2017:

The following is a summary of the restricted stock award activity under the employee plan described above for the ninethree months ended September 30, 2016:March 31, 2017:

The Company has a stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for automatic grants of restricted stock to nonemployee directors after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are ten years. The restricted stock issued after each annual meeting of stockholders vests six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At September 30, 2016,March 31, 2017, 522,457 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified independent directors.

The following is a summary of the stock option activity under the director plan described above for the ninethree months ended September 30, 2016:March 31, 2017:

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at September 30, 2016:March 31, 2017:

The following is a summary of the restricted stock award activity under the director plan described above for the ninethree months ended September 30, 2016:March 31, 2017:

The total intrinsic value of all stock options exercised under all of the Company’s plans was $266,000 and $2,555,000$1,267,000 for the ninethree months ended September 30, 2016 and 2015, respectively.March 31, 2017.  No stock options were exercised under the Company’s plans during the three months ended March 31, 2016. The actual tax benefit realized for tax deductions from stock option exercises was $100,000 and $953,000$414,000 for the ninethree months ended September 30, 2016 and 2015, respectively.March 31, 2017.

The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $5,587,000$6,989,000 and $9,055,000$5,432,000 for the ninethree months ended September 30,March 31, 2017 and 2016, and 2015, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $2,095,000$2,285,000 and $3,378,000$2,037,000 for the ninethree months ended September 30,March 31, 2017 and 2016, and 2015, respectively.

As of September 30, 2016,March 31, 2017, there was $4,080,000$5,245,000 of unrecognized compensation cost related to nonvested stock options and $20,218,000$24,268,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.72.0 years and restricted stock over approximately 3.43.7 years. The total fair value of options vested was $2,495,000$2,473,000 and $2,194,000$2,469,000 during the ninethree months ended September 30,March 31, 2017 and 2016, and 2015, respectively. The fair value of the restricted stock vested was $5,587,000$6,989,000 and $9,055,000$5,432,000 for the ninethree months ended September 30,March 31, 2017 and 2016, and 2015, respectively.

The weighted average per share fair value of stock options granted during the ninethree months ended September 30,March 31, 2017 and 2016 was $20.65 and 2015 was $17.30 and $25.18,$15.61, respectively. The fair value of the stock options granted during the ninethree months ended September 30,March 31, 2017 and 2016 was $2,517,000 and 2015 was $3,231,000 and $2,893,000,$2,430,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the options during the ninethree months ended September 30,March 31, 2017 and 2016 and 2015 were as follows:

The Company’s changes in other comprehensive income for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

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

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

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

The Company’s two reportable business segments are managed separately based on fundamental differences in their operations. The Company evaluates the performance of its segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. Intersegment revenues, based on market-based pricing, of the diesel engine services segment from the marine transportation segment of $7,171,000$5,430,000 and $17,722,000$4,384,000 for the three months and nine months ending September 30,March 31, 2017 and 2016, respectively, as well as the related intersegment profit of $543,000 and $7,032,000 and $20,322,000$438,000 for the three months ending March 31, 2017 and nine months ending September 30, 2015,2016, respectively, have been eliminated from the tables below.  The related intersegment profit of $717,000 and $1,772,000 for the three months and nine months ending September 30, 2016, respectively, and $703,000 and $2,032,000 for the three months and nine months ending September 30, 2015, respectively, have also been eliminated from the tables below.

The following table sets forth the Company’s revenues and profit or loss by reportable segment for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 and total assets as of September 30, 2016March 31, 2017 and December 31, 20152016 (in thousands):

The following table presents the details of “Other” segment loss for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 (in thousands):

The following table presents the details of “Other” total assets as of September 30, 2016March 31, 2017 and December 31, 20152016 (in thousands):

Earnings before taxes on income and details of the provision for taxes on income for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

The following table presents the components of basic and diluted earnings per share for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 (in thousands, except per share amounts):

Certain outstanding options to purchase approximately 520,000487,000 and 227,000542,000 shares of common stock were excluded in the computation of diluted earnings per share as of September 30,March 31, 2017 and 2016, and 2015, respectively, as such stock options would have been antidilutive.

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

The Company’s pension plan funding strategy has historically beenis to contribute an amountmake annual contributions in amounts equal to theor greater of the minimum required contribution under ERISA or the amountthan amounts necessary to fully fund the plan on an accumulatedmeet minimum government funding requirements.  The plan’s benefit obligation (“ABO”) basis at the end of the fiscal year. The ABO isobligations are based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult.  Based on current pension plan assets and market conditions, the Company expectsdoes not expect to make a contribution of up to $25,000,000 to its pension plan prior to December 31, 2016 to fund its 2016 pension plan obligations. As of September 30, 2016, no 2016 year contributions have been made.during 2017.

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

The components of net periodic benefit cost for the Company’s defined benefit plans for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

The components of net periodic benefit cost for the Company’s postretirement benefit plan for the three months ended March 31, 2017 and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $14,162,000$13,593,000 at September 30, 2016,March 31, 2017, including $4,057,000$4,034,000 in letters of credit and $10,105,000$9,559,000 in performance bonds. All of these instruments have an expiration date within fourthree years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur in connection with these instruments.

The Company continues to be subject to the risk factors previously disclosed in its “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.2016.

Statements contained in this Form 10-Q that are not historical facts, including, but not limited to, any projections contained herein, are forward-looking statements and involve a number of risks and uncertainties. Such statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate” or “continue,” or the negative thereof or other variations thereon or comparable terminology. The actual results of the future events described in such forward-looking statements in this Form 10-Q could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornadoes, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company. For a more detailed discussion of factors that could cause actual results to differ from those presented in forward-looking statements, see Item 1A-Risk Factors found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.2016. Forward-looking statements are based on currently available information and the Company assumes no obligation to update any such statements.

For purposes of the Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings per share.” The weighted average number of common shares applicable to diluted earnings per share for the three monthsfirst quarter of 2017 and nine months ended September 30, 2016 were 53,609,000 and 2015 were as follows (in thousands):

The Company is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. As of September 30, 2016,March 31, 2017, the Company operated a fleet of 881864 inland tank barges with 17.917.6 million barrels of capacity, and operated an average of 227235 inland towboats during the 2016 third2017 first quarter. The Company’s coastal fleet consisted of 68 tank barges with 6.06.1 million barrels of capacity and 8071 coastal tugboats. The Company also owns and operates sixfive offshore dry-bulk bargecargo barges and five offshore tugboats and one docking tugboat units transporting dry-bulk commodities in United States coastal trade. Through its diesel engine services segment, the Company provides after-market services for medium-speed and high-speed diesel engines, reduction gears and ancillary products for marine and power generation applications, distributes and services high-speed diesel engines, transmissions and pumps, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based oilfield service and oil and gas operator and producer markets.

For the 2016 third2017 first quarter, net earnings attributable to Kirby were $32,010,000,$27,483,000, or $0.59$0.51 per share, on revenues of $434,708,000,$491,705,000, compared with 2015 third2016 first quarter net earnings attributable to Kirby of $56,843,000,$38,099,000, or $1.04$0.71 per share, on revenues of $532,565,000. For the 2016 first nine months, net earnings attributable to Kirby were $109,051,000, or $2.02 per share, on revenues of $1,335,023,000, compared with 2015 first nine months net earnings attributable to Kirby of $175,996,000, or $3.17 per share, on revenues of $1,663,394,000.$458,733,000. The 2016 first quarter and first nine months results included $5,605,000 before taxes, or $.06 per share, of severance charges. The severance charges were a result of a reduction in force across the marine transportation and diesel engine services businesses and corporate staff in order to reduce costs in light of challenging market conditions. The 2015 first quarter, third quarter and first nine months included $1,225,000, $702,000 and $1,927,000, respectively, of severance charges which were mainly reflected in the diesel engine services results. Also, the 2015 first quarter and first nine months results included a gain of $1,621,000 before taxes, or $.02 per share, on the sale of the assets of a small product line in the diesel engine services segment.

For the 2016 third2017 first quarter, and first nine months, the Company’s marine transportation segment generated 83% and 84%, respectively,70% of the Company’s revenues.revenue was generated by its marine transportation segment. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States. Products transported include intermediate materials used to produce many of the end products used widely by businesses and consumers — plastics, fiber, paints, detergents, oil additives and paper, among others, as well as residual fuel oil, ship bunkers, asphalt, gasoline, diesel fuel, heating oil, crude oil, natural gas condensate and agricultural chemicals. Consequently, the Company’s marine transportation business generally mirrorsis directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base.

The Company’s marine transportation segment’s revenues for the 2016 third2017 first quarter and first nine months decreased 14% and 12%, respectively,9% when compared with the 2015 third2016 first quarter and first nine months. The decreases wererevenues, primarily due to lower inland marine transportation term and spot contract pricing, lower inland andcoastal marine transportation spot contract pricing, lower coastal equipment utilization a decline in the average cost of marine diesel fuel which is largely passed through to the customer, and an increase in the number of coastal vessels operating in the spot market which led to increased idle time and decreased revenues, partially offset by the addition of the SeacorSEACOR Holdings Inc. (“Seacor”) tank barges acquired in April 2016. The segment’s operating income for the 2016 third2017 first quarter and first nine months decreased 41% and 31%, respectively,49% compared with the 2015 third quarter and2016 first nine months.quarter. The decreases weredecrease was primarily due to lower inland and coastal equipment utilization, lower inland term and spot contract pricing, lower coastal spot contract pricing, lower coastal equipment utilization, and more coastal equipment operating in the spot market which adds increased idle time and voyage costs, for coastal vessels and higher depreciation expense, partially offset by savings from a reduction in force earlier in the yearcoastal market from the release of chartered tugboats, idling owned barges and during 2015,tugboats and reducing headcount accordingly and by a reduction in the average number of inland towboats operated.  The 2016 first nine monthsquarter marine transportation results also included $3,792,000 of severance charges in the 2016 first quarter.charges. For the 2017 and 2016 and 2015 thirdfirst quarters, the inland tank barge fleet contributed 66%71% and 68%67%, respectively, and the coastal fleet contributed 34%29% and 32%, respectively, of marine transportation revenues.  For the 2016 and 2015 first nine months, the inland tank barge fleet contributed 67% and 68%, respectively, and the coastal fleet contributed 33% and 32%, respectively, of marine transportation revenues.

The tankTank barge utilization levels of the Company’s inland marine transportation markets declinedwere in the 2016 third quarter to the low-to-mid 80% range compared to the high 80% to low 90% range forduring the 2017 first quarter compared to the low 80% to high 80% range during the 2016 secondfourth quarter and the 90% to 95% range for the 2016 first quarter and the 2015 third quarter and first nine months.  The decline in utilization from the 2016 first quarter to 2016 second quarter was largely attributable to a shortened spring season for agricultural chemical products and soft demand for transportation of refined petroleum products which was largely related to high inventory levels.  The decline in utilization from the 2016 second quarter to the 2016 third quarter was mainly due to high refined petroleum product inventory levels, as well as overall softer utilization levels that are common in mid-summer as operating conditions improve.quarter.  Demand for barges moving petrochemicals, refined petroleum products and agricultural chemicals was stable, while demand for black oil movements was weaker during the 2016 third quarterhigher compared to demand during the 2016 second quarter and the 2015 third quarter.  Demand for petrochemicals in the 2016 thirdfourth quarter was stable, aside fromdue to refinery turnarounds during the negative impact of plant maintenance turnarounds, with favorable demand for certain upriver petrochemical movements.  Seasonal demand for agricultural chemicals was strong.  In addition, demand for refined petroleum product and black oil movements temporarily increased following a series of customer supply chain disruptions late in the 2016 third2017 first quarter. During the 2016 third quarter,Inland marine transportation operating conditions were seasonally normal although there was significant flooding in Louisiana that caused some disruptions induring the 2017 first quarter with periodic high wind and heavy fog along the Gulf Intracoastal Waterway for a short period.Coast.

Coastal tank barge utilization levels declined slightly to the low-to-midmid-70% to low 80% range during the 2016 third2017 first quarter compared to the midlow 80% level duringin the 2016 secondfourth quarter and the high 80% to low 90% range in the 2016 first quarter and compared to utilization levels of 90% to 95%quarter.  Utilization in the 2015 third quarter and first nine months. The Company’s coastal marine transportation markets reflected stable demandfleet was impacted by the oversupply of tank barges in the coastal industry.  Demand for the transportation of black oil and petrochemicals and dry products in the 2016 third quarter and first nine months. Demandwas stable, while demand for the transportation of refined petroleum products declined, primarily as a result of weak distillate and gasolinewas lower compared to demand in the Northeast.2016 first quarter, reflecting unseasonably warm weather in the Northeast affecting the demand for heating oil movements.  Results were also impacted by customer requested acceleration of regulatory shipyards on two large units into the 2017 first quarter.