Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PWX | ||
Entity Registrant Name | PROVIDENCE & WORCESTER RAILROAD CO/RI/ | ||
Entity Central Index Key | 831,968 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,864,688 | ||
Entity Public Float | $ 42,788,982 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 6,281 | $ 6,414 |
Accounts receivable, net of allowance for doubtful accounts of $160 in 2015 and 2014 | 4,977 | 5,007 |
Materials and supplies | 911 | 1,067 |
Prepaid expenses and other current assets | 621 | 634 |
Deferred income taxes | 399 | |
Total Current Assets | 12,790 | 13,521 |
Property and Equipment, net | 88,910 | 85,955 |
Land Held for Development | 12,457 | 12,457 |
Total Assets | 114,157 | 111,933 |
Current Liabilities: | ||
Accounts payable | 4,251 | 3,872 |
Current portion of long-term debt | 20 | |
Current portion of deferred grant and other income | 319 | 230 |
Accrued expenses | 1,653 | 1,810 |
Total Current Liabilities | 6,243 | 5,912 |
Long-Term Debt, net of current portion | 980 | |
Deferred Income Taxes | 13,602 | 13,623 |
Deferred Grant and Other Revenue | 12,714 | 12,986 |
Shareholders’ Equity: | ||
Preferred stock, 10% noncumulative, $50 par value; authorized, issued and outstanding 640 shares in 2015 and 2014 | 32 | 32 |
Common stock, $.50 par value; authorized 15,000,000 shares; issued and outstanding 4,862,693 shares in 2015 and 4,859,871 shares in 2014 | 2,432 | 2,430 |
Additional paid-in capital | 38,050 | 37,891 |
Retained earnings | 40,104 | 39,059 |
Total Shareholders’ Equity | 80,618 | 79,412 |
Total Liabilities and Shareholders’ Equity | $ 114,157 | $ 111,933 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 160 | $ 160 |
Percentage of noncumulative preferred stock | 10.00% | 10.00% |
Preferred stock, par value | $ 50 | $ 50 |
Preferred stock, shares authorized | 640 | 640 |
Preferred stock, shares issued | 640 | 640 |
Preferred stock, shares outstanding | 640 | 640 |
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 4,862,693 | 4,859,871 |
Common stock, shares outstanding | 4,862,693 | 4,859,871 |
Statements of Income
Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Operating Revenues | $ 35,797 | $ 34,318 |
Operating Expenses: | ||
Maintenance of way and structures | 3,749 | 3,424 |
Maintenance of equipment | 4,038 | 3,975 |
Transportation | 10,684 | 10,871 |
General and administrative | 5,016 | 4,984 |
Depreciation | 3,689 | 3,456 |
Taxes, other than income taxes | 2,994 | 2,744 |
Car hire, net | 1,671 | 1,098 |
Employee retirement plans | 225 | 227 |
Track usage fees | 1,145 | 378 |
Total Operating Expenses | 33,211 | 31,157 |
Operating Income before Interest and Income Taxes | 2,586 | 3,161 |
Other income | 75 | 506 |
Interest Expense | 4 | |
Income from operations prior to income taxes | 2,657 | 3,667 |
Provision for Income Taxes | 831 | 496 |
Net Income | 1,826 | 3,171 |
Preferred Stock Dividends | 3 | 3 |
Net Income Attributable to Common Shareholders | $ 1,823 | $ 3,168 |
Net Income Per Common Share | ||
Basic | $ 0.38 | $ 0.65 |
Diluted | $ 0.37 | $ 0.64 |
Weighted-Average Common Shares Outstanding: | ||
For basic | 4,861 | 4,855 |
For diluted | 4,933 | 4,930 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2013 | $ 76,762 | $ 32 | $ 2,425 | $ 37,635 | $ 36,670 |
Issuance of 9,857 and 4,817 common shares for stock options exercised, employee stock purchases, and other | 147 | 5 | 142 | ||
Share based compensation – options granted | 114 | 114 | |||
Dividends paid: | |||||
Preferred stock, $5.00 per share | (3) | (3) | |||
Common stock, $.16 per share | (779) | (779) | |||
Net income | 3,171 | 3,171 | |||
Ending Balance at Dec. 31, 2014 | 79,412 | 32 | 2,430 | 37,891 | 39,059 |
Issuance of 9,857 and 4,817 common shares for stock options exercised, employee stock purchases, and other | 76 | 2 | 74 | ||
Share based compensation – options granted | 85 | 85 | |||
Dividends paid: | |||||
Preferred stock, $5.00 per share | (3) | (3) | |||
Common stock, $.16 per share | (778) | (778) | |||
Net income | 1,826 | 1,826 | |||
Ending Balance at Dec. 31, 2015 | $ 80,618 | $ 32 | $ 2,432 | $ 38,050 | $ 40,104 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Issuance of common shares for stock options exercised | 4,817 | 9,857 |
Preferred stock dividends per share | $ 5 | $ 5 |
Common stock dividends per share | $ 0.16 | $ 0.16 |
Common Stock [Member] | ||
Issuance of common shares for stock options exercised | 4,817 | 9,857 |
Additional Paid-in Capital [Member] | ||
Issuance of common shares for stock options exercised | 4,817 | 9,857 |
Retained Earnings [Member] | ||
Preferred stock dividends per share | $ 5 | $ 5 |
Common stock dividends per share | $ 0.16 | $ 0.16 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,826 | $ 3,171 |
Adjustments to reconcile the net income to cash flows from operating activities: | ||
Depreciation | 3,689 | 3,456 |
Amortization of deferred grant and other income | (659) | (632) |
Gain on sale of equipment | (42) | (498) |
Deferred grant and other income | 52 | |
Deferred income taxes | 378 | (61) |
Share-based compensation | 85 | 114 |
Increase (decrease) in cash from: | ||
Accounts receivable | (692) | 1,552 |
Materials and supplies | 156 | 241 |
Prepaid expenses and other current assets | 13 | (126) |
Accounts payable and accrued expenses | (35) | 260 |
Net cash flows from operating activities | 4,719 | 7,529 |
Cash flows from Investing Activities: | ||
Purchase of property and equipment | (6,360) | (4,624) |
Proceeds from sale of property, equipment and easements | 15 | 1,282 |
Net cash flows used in investing activities | (6,345) | (3,342) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 1,000 | |
Dividends paid | (781) | (782) |
Issuance of common shares for stock options exercised and employee stock purchases | 76 | 147 |
Proceeds from deferred grant income | 1,198 | 248 |
Net cash flows from (used in) financing activities | 1,493 | (387) |
(Decrease) increase in Cash and Cash Equivalents | (133) | 3,800 |
Cash and Cash Equivalents, Beginning of Period | 6,414 | 2,614 |
Cash and Cash Equivalents, End of Period | 6,281 | 6,414 |
Supplemental Disclosures: | ||
Cash paid for income taxes | 533 | 306 |
Deferred grant income in accounts receivable | 110 | $ 832 |
Property and equipment included in accounts payable | $ 257 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of Business Providence and Worcester Railroad Company (“P&W” or the “Company”) is an interstate freight carrier conducting railroad operations in Massachusetts, Rhode Island, Connecticut and New York. Through its connecting carriers, it services customers located throughout North America. The Company services the largest international double-stack intermodal terminal facility in New England. P&W’s connections to multiple Class I railroads, either directly or through connections with regional and short-line carriers, provide the Company with a competitive advantage by allowing it to offer various pricing and routing alternatives to its customers. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents for purposes of classification in the balance sheets and statements of cash flows. Cash equivalents are stated at cost, which approximates fair market value. Accounts Receivables and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. The Company’s allowance for doubtful accounts is determined based upon historical write-offs and known customer information. The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable loss on its existing accounts receivable. Account balances are charged off against the allowance for doubtful accounts when the Company determines the receivable will not be recovered. Materials and Supplies Materials and supplies, which consist of diesel fuel and items for the improvement and maintenance of track structure and equipment, are stated at cost, determined on a first-in, first-out basis, and are charged to expense or added to the cost of property and equipment when used. Property and Equipment Property and equipment, including land held for development, is stated at historical cost (including self-construction costs). Acquired railroad property is recorded at the purchased cost. Self-construction costs for track structure include material costs for ties, rail, other track materials and ballast; the cost of direct and supervisory labor, including railroad retirement taxes and employee benefits; costs for track machinery and equipment (including depreciation) and various other overhead costs. Major renewals or betterments are capitalized while routine maintenance and repairs, which do not improve or extend asset lives, are charged to expense when incurred. Costs are capitalized to the extent that they are incurred in connection with the replacement of track structure pursuant to a program of rehabilitation which results in significant future economic benefit or the construction of new track structure. A program of rehabilitation or construction of new track structure generally includes ballast, rail and other track material and ties. Costs for routine maintenance are expensed. Routine maintenance items include the sporadic replacement of ties, replacement of track structure damaged in a derailment, washout or other cause or event and the costs of general upkeep of track structure to keep it in good operating condition. Costs are capitalized or expensed depending on the facts and circumstances of each specific project. The total amount of the costs to be capitalized is based on the per unit cost for each category of expenditure (ties, rail and other track material and ballast) and the number of equivalent units installed. Costs are developed using costs incurred for materials, direct labor and overhead. Property and equipment are carried at cost and are depreciated over their useful lives. Items included in track structures with similar physical characteristics, use, year of installation and expected life are grouped into separate asset classes and depreciated over the estimated useful life of the asset class group. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Track structure: Ties 40 years Rail and other track material 67 years Ballast 67 years Bridges and trestles 67 years Other 33 years Buildings and other structures 33 to 45 years Equipment, including rolling stock 4 to 25 years The Company reviews property and equipment retirements each year in order to determine whether or not the estimated useful lives are reasonable. Since, in most instances, assets retired have been fully or substantially depreciated, the Company has not found it necessary, historically, to make any significant adjustments to their estimated useful lives. Retirements of track structure are recorded by removing the historical cost and related accumulated depreciation of the equivalent amount of its oldest track structures in the related asset class group. Gains or losses, if any, on sales or other dispositions are credited or charged to other income. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When circumstances indicate that assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining lives of the assets in determining whether the carrying amounts of the assets are recoverable. If impairment exists it is measured by comparing the carrying value to the fair value. No impairments were recognized in the years presented. Fair Value The Company believes that the fair values of its financial instruments, including cash, receivables and payables, approximate their respective book values because of their short-term nature. Upon review of current market conditions and other factors, the Company believes that the fair value of the long term debt approximates its book value. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. Deferred Grant and other revenue The Company has availed itself of various federal and state programs administered by the states of Connecticut, Massachusetts and Rhode Island for reimbursement of expenditures for capital improvements. In order to receive reimbursement, the Company must submit requests for the projects, including cost estimates. The Company receives from 65% to 100% of the costs of such projects, which have included bridges, track structure and public improvements. To the extent that such grant proceeds are used to fund capital improvements to bridges and track structure, they are recorded as deferred grant income ($399 in 2015 and $1,080 in 2014) and amortized into operating revenues on a straight-line basis over the estimated useful lives of the related improvements. Grant proceeds utilized to finance public improvements, such as grade crossings and signals, are recorded as a direct offset to the cost of the improvements, which are not capitalized. Revenue Recognition and Concentration of Credit Risk Freight revenues are estimated and recorded at the time shipments move onto the Company’s tracks or the connecting carrier’s tracks. Due to the short time of delivery to customers or the connecting carriers, freight revenues recognized at the time shipments move onto the Company’s tracks is not materially different from the revenue recognition of freight revenues as shipments progress. Freight revenues are recorded net of any unloading allowances or other fees. Other freight-related and operating revenues are recorded at the time services are rendered to the customer. Gain or loss from sale, condemnation and disposal of property and equipment and easements is recorded at the time the transaction is consummated and collectability is assured. The Company’s ten (10) largest customers account for more than half of its operating revenues. One of the Company’s customers, which mines construction aggregates from two active quarries on the Company’s rail system and ships to locations in Connecticut and New York, accounted for more than 10% of the Company’s freight operating revenues in 2015 and 2014. The Company does not believe that these customers will cease to be rail shippers in the foreseeable future; however, the Company does not control the quantities these companies will ship by rail. Income Taxes Deferred taxes are provided on a liability method, whereby deferred tax assets are recognized for deductible temporary differences, operating losses and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. Valuation allowances are established when it is estimated that it is more likely than not that the deferred tax asset will not be realized. Certain provisions of ASC 740 Income Taxes Income per Common Share Basic income per common share is computed using the weighted average number of common shares outstanding during each year. Diluted income per common share reflects the effect of the Company’s outstanding convertible preferred stock (using the if-converted method) and options (using the treasury stock method), except where such items would be anti-dilutive. A reconciliation of weighted average shares used for the basic computation and that used for the diluted computation is as follows: 2015 2014 Net Income Shares Per Share Amount Net Income Shares Per Share Amount Basic Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Basic Earnings per share $ 1,823 4,861 $ 0.38 $ 3,168 4,855 $ 0.65 Diluted Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Preferred stock dividends 3 3 Effect of Dilutive Securities 72 75 Diluted Earnings per Share $ 1,826 4,933 $ 0.37 $ 3,171 4,930 $ 0.64 Options to purchase 65,437 and 63,285 shares of common stock were outstanding at December 31, 2015 and 2014, respectively. Certain options were not included in the calculation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common stock and would be anti-dilutive. For 2015 and 2014, 8,133 and 11,445 shares, respectively, relating to the options were included in the calculation of diluted earnings per share. Shares of preferred stock convertible into 64,000 shares of common stock were outstanding during 2015 and 2014. For 2015 and 2014, these were included in the calculation of diluted earnings per share. Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Liabilities for casualty claims, legal judgments and other loss contingencies are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. It is the position of the Company not to accrue estimated legal fees for appeals of legal judgments since such costs do not meet the definition of a liability and thus are accruable only at such time as legal services have been provided. Comprehensive Income Comprehensive Income equals net income for 2015 and 2014. Segment Reporting The Company organizes itself as one segment reporting to the chief operating decision maker. Products and services consist primarily of interstate freight rail services. These include the movement of freight in both conventional freight cars and in intermodal containers on flat cars over the Company’s rail lines, as well as freight-related services such as switching, weighing and special trains and other services rendered to freight customers and other outside parties by the Company’s Maintenance of Way and Maintenance of Equipment Departments. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. ASU 2014-09 anticipates companies using more judgment and estimates than under the current guidance. On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. ASU 2014-09 permits the use of retrospective application to period presented or a cumulative effect transition adjustment. The Company is currently evaluating the impact and method of implementing this new guidance on its financial statements and related disclosures. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which, effective for annual and interim reporting periods beginning after December 15, 2016, simplifies the presentation of deferred income taxes, requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. Since early application is permitted, the new standard has been applied in the Company’s financial statements as of December 31, 2015. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of our pending adoption of the new standard on our financial statements. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 2. Share-Based Compensation In April 2015, the Company’s shareholders approved the Providence and Worcester Railroad Company 2015 Equity Incentive Plan (“Plan”), which replaced the Company’s non-qualified stock option plan (“SOP”). The awards below were issued under the SOP. No awards were made under the Plan during 2015. In January 2016, 54,000 options and 70,500 restricted stock units (“RSU”) were awarded under the Plan. The option awards vest in accordance with the term of the option awards (mainly time vested over a 5 year period) and the RSU are performance based. Options issued but not exercised under the SOP totaling 43,931 remains outstanding until they are either exercised or expire. The Company had a SOP covering all management personnel who have a minimum of one year of service with the Company and who are not holders of a majority of either its outstanding common stock or its outstanding preferred stock. In addition, the Company’s outside directors are eligible to participate in the SOP. Options granted under the SOP, which are fully vested when granted, are exercisable over a ten year period at the closing market price for the Company’s common stock on the last business day of the year prior to the date the options are granted. The Company issues new common stock to satisfy stock options exercised. The Company recognizes compensation expense for new stock option grants at fair value on the grant date, less estimated forfeitures. Stock-based employee compensation expense, net of income taxes, in the amounts of $85 and $73, has been charged against income in 2015 and 2014, respectively, for stock options granted. The Company’s policy is to estimate the fair market value of each option granted on the date of grant, the first business day in January of each year, using the Black-Scholes option pricing model, and to record the compensation expense in the year in which the grant was made. Management’s estimates requires the use of assumptions that are highly subjective including items such as the expected life of the option grants, the expected stock price volatility and the expected dividend payment rate. The expected life is based upon historical experience and is estimated for each grant. The expected volatility is based upon a combination of historical and implied volatility. The expected dividend rate is based upon historical yields. The risk free rate is based upon on a zero-coupon U.S. Treasury rate at the time of grant with maturity dates that coincide with the expected life of the options. Key assumptions used to apply the Black-Scholes option pricing model are set forth below: 2015 2014 Average risk-free interest rate 1.64 % 1.17 % Expected life of option grants 5.0 years 5.0 years Expected volatility of underlying stock 72.55 % 99.00 % Expected dividend payment rate, as a percentage of the share price on the date of grant 0.89 % 0.82 % Weighted average grant date fair value $ 10.20 $ 13.80 The following table summarizes the stock option activity under the Company’s plan: Weighted Average Number Exercise Fair Of Options Price Value Outstanding and exercisable at December 31, 2013 67,082 $ 14.26 Granted 8,240 19.55 $ 13.80 Exercised (6,709 ) 12.72 Expired (5,328 ) 14.37 Outstanding and exercisable at December 31, 2014 63,285 $ 15.12 Granted 8,300 18.06 $ 10.20 Exercised (1,119 ) 14.11 Expired (5,029 ) 14.43 Outstanding and exercisable at December 31, 2015 65,437 $ 15.55 The total intrinsic value of options exercised for the years ended December 31, 2015 and 2014 totaled approximately $1 and $38, respectively, and cash proceeds from the exercise of stock options totaled approximately $16 and $85 for the years ended December 31, 2015 and 2014, respectively. The income tax benefits realized from the exercise of stock options were not material for the periods presented. The aggregate intrinsic value of the stock options outstanding, based on the closing stock price of the Company’s common stock as of December 31, 2015 and 2014, totaled approximately $45 and $208, respectively. The weighted average of the remaining life was five years at December 31, 2015 and 2014. Common Stock Awards The Company has awarded certain of its employee’s common stock under stock award plans. During the years ended December 31, 2015 and 2014, the Company awarded 40 and 50 shares, respectively. The compensation expense recorded for these awards was de minimus for 2015 and 2014. Common stock awarded under such stock award plans vests immediately. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consists of the following: As of December 31, 2015 Cost Accumulated Depreciation Net Book Value Property: Land and land improvements $ 11,474 $ — $ 11,474 Buildings and other structures 8,417 (4,227 ) 4,190 Track structures: Rail and other track material 31,219 (8,110 ) 23,109 Ballast 5,935 (1,912 ) 4,023 Ties 51,605 (26,285 ) 25,320 Bridges & Trestles 10,709 (3,004 ) 7,705 Other 1,361 (971 ) 390 Total property 120,720 (44,509 ) 76,211 Equipment: Office 453 (420 ) 33 Locomotives 14,473 (8,749 ) 5,724 Rail cars 2,707 (996 ) 1,711 Vehicles 2,930 (2,198 ) 732 Signals and crossing 1,180 (747 ) 433 Track 2,557 (1,532 ) 1,025 Other 4,555 (3,692 ) 863 Total equipment 28,855 (18,334 ) 10,521 Construction-in-process 2,178 — 2,178 Total Property and Equipment $ 151,753 $ (62,843 ) $ 88,910 As of December 31, 2014 Cost Accumulated Depreciation Net Book Value Property: Land and land improvements $ 11,474 $ — $ 11,474 Buildings and other structures 8,376 (4,081 ) 4,295 Track structures: Rail and other track material 31,107 (7,614 ) 23,493 Ballast 5,922 (1,814 ) 4,108 Ties 51,297 (25,392 ) 25,905 Bridges & Trestles 8,996 (2,802 ) 6,194 Other 1,361 (953 ) 408 Total property 118,533 (42,656 ) 75,877 Equipment: Office 459 (411 ) 48 Locomotives 12,262 (8,152 ) 4,110 Rail cars 2,707 (895 ) 1,812 Vehicles 2,952 (2,271 ) 681 Signals and crossing 1,111 (673 ) 438 Track 2,349 (1,502 ) 847 Other 4,690 (3,756 ) 934 Total equipment 26,530 (17,660 ) 8,870 Construction-in-process 1,208 — 1,208 Total Property and Equipment $ 146,271 $ (60,316 ) $ 85,955 Construction-in-process consisted primarily of costs associated with track and building upgrades. |
Land Held for Development and R
Land Held for Development and Related Party Transaction | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Land Held for Development and Related Party Transaction | 4. Land Held for Development and Related Party Transaction Pursuant to permits issued by the United States Department of the Army Corps of Engineers and the Rhode Island Coastal Resources Management Council, the Company created 33 acres of waterfront land in East Providence, Rhode Island (“South Quay”). The permits for the property, which have been extended to December 2019 and December 2015, respectively, also allow for construction of a dock along the west face of the South Quay. The property is adjacent to a 12 acre site, also owned by the Company. The Company has invested approximately $12,000 in the development of the South Quay, which has resulted in the creation of approximately 33 acres of waterfront land. The property is located one half-mile from Interstate 195 (“I-195”). In 2006, the Rhode Island Department of Transportation (“RIDOT”) awarded a contract for roadway improvements to provide direct vehicular access from the interstate highway system to the South Quay, which project was completed in 2007. In fall 2012, the extension of Waterfront Drive northward toward an industrial area, in which the Company owns two additional waterfront parcels comprising 11 acres, creating direct access to such property, was completed. RIDOT is in the initial stages of designing improvements to access Waterfront Drive from I-195 West. The City of East Providence has created a waterfront redevelopment area with a zoning overlay that would encourage development of offices, hotels, restaurants, shops, marinas, apartments and other “clean” employment. The Company has been cooperating with the City of East Providence in these efforts. Robert Eder, who owns a majority of the Company’s Preferred Shares, with his wife, also controls Capital Properties, Inc. (“CPI”) and its subsidiaries. In May 2012 the Company and CPI entered into a License Agreement licensing to CPI track facilities which may be installed in connection with a railcar-loading/unloading facility on the Company’s right-of-way in East Providence, Rhode Island. The License Agreement continues through December 31, 2018, and is extended for additional three-year periods unless cancelled by CPI upon 30-days written notice prior to termination. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Revolving Line of Credit The Company has a revolving line of credit facility in the amount of $5,000 from a commercial bank expiring on June 25, 2017. Borrowings under this line of credit are unsecured, due on demand and bear interest at either the bank's prime rate or one and three-quarters percent over the thirty, sixty or ninety day London Interbank Offered Rate ("LIBOR") with a LIBOR floor of one and one-quarter percent. The Company pays no commitment fee on this line of credit and has no compensating balance requirements. The Company is subject to financial and non-financial covenants including maintenance of a minimum net worth and restrictions as to the incurrence of additional indebtedness, as well as the sale or encumbrance of its assets. At December 31, 2015 and 2014, no amounts were outstanding under the line of credit. Long-term Debt The Company entered into a loan agreement with its commercial bank for $5 million in 2014, the majority of which will be utilized to rehabilitate four and replace one main line bridges. Once the rehabilitation and replacement are complete, the Company will have the ability to haul freight with a lading of 286,000 pounds on its main line from Worcester, MA to Davisville/Providence RI. As provided in the agreement, the loan requires payments of interest only for twelve months whereupon it converts to a ten year term loan with payments based upon a twenty year amortization. The loan will bear interest at 4.11% per annum for the life of the loan. The loan is unsecured and subjects the Company to certain financial and non-financial covenants, including the maintenance of certain tangible net worth levels. In October 2015, the Company drew down $1,000, leaving $4,000 to be drawn down by April 2016. Based upon amounts the Company currently has outstanding, the maturities of long-term debt are as follows: 2016 $ 20 2017 $ 34 2018 $ 35 2019 $ 37 2020 $ 38 The Company is in compliance with its related debt covenants as of December 31, 2015 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consist of the following: December 31, 2015 2014 Salaries and wages $ 722 $ 688 Payroll taxes 194 182 Simplified employee pension plan contributions 208 209 Legal and professional fees 232 157 Casualty loss claims 165 407 Other 132 167 $ 1,653 $ 1,810 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |
Other Income | 7. Other Income Other income consists of the following: Years Ended December 31, 2015 2014 Gains and losses from sale, disposal and retirement of property, equipment and easements, net $ 42 $ 498 Interest and other 33 8 $ 75 $ 506 Higher other income in 2014 was attributable to disposal of property and equipment. |
Railroad Track Maintenance Cred
Railroad Track Maintenance Credits | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Railroad Track Maintenance Credits | 8. Railroad Track Maintenance Credits: During the fourth quarter of 2015 and 2014, the Company entered into an agreement with an unrelated third-party shipping customer. Under the agreement, the customer agreed to pay for certain qualified railroad track maintenance expenditures, including capital additions to the Company's track structure during 2015 and 2014. In return, the Company agreed to assign railroad track miles to the shipping customer which would enable that customer to claim certain track maintenance credits pursuant to section 45G of the Internal Revenue Code of 1986. $1,800 was realized as a result of the agreements for each of the years ended December 31, 2015 and 2014. The Railroad Track Maintenance Credits were accounted for as a reduction of Operating Expenses - Maintenance of Way and Structures in the Statement of Operations. |
Amtrak Agreement
Amtrak Agreement | 12 Months Ended |
Dec. 31, 2015 | |
Agreement With Related Party [Abstract] | |
Amtrack Agreement | 9. Amtrak Agreement On April 4, 2012, the Company and National Railroad Passenger Corporation (“Amtrak”) entered into the 2012 Settlement and Amendment Agreement (the “2012 Agreement”) which settled certain disputes between the parties and amended, in part, both an Agreement dated January 3, 1978 (the “1978 Agreement”) and an Agreement dated July 9, 1979 by and between Amtrak and the Company. Under the 1978 Agreement, Amtrak had the right to remove certain Company trackage subject to the requirement of providing replacement facilities. Under the 2012 Agreement, Amtrak’s obligations to the Company for outstanding track capacity are satisfied in full by, among other things, Amtrak (1) granting the Company a license for railroad operations to certain Amtrak trackage located in Cranston, RI (the “Cranston Yard Trackage”) ($179), (2) delivering to the Company track materials ($684), (3) granting the Company a credit against mileage charges payable to Amtrak by the Company for freight traffic utilizing the Northeast Corridor ($2,571), and (4) cash and relief of certain outstanding obligations the Company owed to Amtrak ($2,143), with the foregoing items having an agreed aggregate value of $5,577. The 2012 Agreement also relieves Amtrak of any future obligation (a) to maintain the Cranston Yard Trackage, and (b) to replace P&W track capacity modified or eliminated by Amtrak provided that no such modification or elimination may unreasonably interfere with the continuity of tracks being used for P&W’s freight service. The 2012 Agreement also contains provisions allocating the risk of use of the Cranston Yard Trackage, establishing procedures for contesting Amtrak invoices for maintenance along the Northeast Corridor, permitting the Company to bill Amtrak for non-routine services requested by Amtrak and provided by the Company, and permitting Amtrak to deduct from its cash payment to the Company the amount of certain uncontested invoices. Pursuant to the Agreement, the Company received a credit for mileage to be travelled along the Northeast Corridor. The Company will recognize the expense offset relative to Track Usage Fees as the expenses are incurred. As such, the Company did not record any related assets or liabilities relative to the mileage credit at the date of the settlement. The Company has recorded the following offsets to Track Usage expense and no credits remained outstanding as of December 31, 2015: Years Ended December 31, 2015 2014 Mileage credit available $ 418 $ 1,219 Utilized 418 801 Mileage credit remaining $ — $ 418 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision for income taxes consists of the following: Years Ended December 31, 2015 2014 Current: Federal $ 309 $ 415 State 144 142 453 557 Deferred: Federal 360 (46 ) State 18 (15 ) 378 (61 ) $ 831 $ 496 The following summarizes the estimated tax effect of temporary differences that are included in the net deferred income tax provision: Years Ended December 31, 2015 2014 Depreciation $ 222 $ 213 Deferred grant income 65 (339 ) Track maintenance credit 216 1,123 Accrued casualty and other claims 87 19 Accrued compensated time off and related payroll taxes 16 (17 ) Share based compensation (30 ) (41 ) Other 18 (167 ) Change in valuation allowance (216 ) (852 ) $ 378 $ (61 ) Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of significant items comprising the Company’s net deferred income tax liability as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred income tax liabilities - Differences between book and tax basis of property and equipment $ 19,013 $ 18,802 Deferred income tax assets: Deferred grant income 4,649 4,714 Track maintenance credit carry forwards 1,240 1,456 Alternative minimum tax carry forwards 75 75 Accrued casualty and other claims 59 146 Accrued compensated time off and related payroll taxes 245 261 Share based compensation 311 281 Allowance for doubtful accounts and other 72 101 6,651 7,034 Valuation allowance (1,240 ) (1,456 ) Net deferred income tax liability $ 13,602 $ 13,224 During 2005 through 2008, the Company generated Railroad Track Maintenance Credits in the cumulative amount of $4,491. These credits may be utilized, subject to certain limitations, to offset the Company’s current federal income tax liability. Any credits not utilized in the year earned may be carried forward to offset future income tax liabilities for a period of 20 years. The Company maintains a valuation allowance on its deferred tax assets when, based upon available evidence such as the reversal of taxable temporary differences and projected future taxable income, it is more likely than not that a portion of its deferred tax assets will not be realized. Based on the Company’s earnings history, projected future taxable income and the expectation of reversing deferred tax liabilities, the Company decreased its valuation allowance. The remaining deferred tax assets are considered realizable; however, they could be reduced in the near term if estimates of future taxable income are reduced or reversing taxable temporary differences are increased. A reconciliation of the U.S. federal statutory rate to the effective tax rate is as follows: Years Ended December 31, 2015 2014 Federal statutory rate 34 % 34 % Nondeductible expenses, state income taxes, and other 5 3 Change in valuation allowance (8 ) (23 ) Effective tax rate 31 % 14 % The Company’s year-end rate of 31% is a decrease from the September 2015 rate of 38%. The decrease in tax rate in the fourth quarter is due to changes in our reversal pattern analysis based upon fourth quarter activity and a result of the minimal amount of pre-tax income reported as of September 30, 2015. The Company’s 2014 year-end rate of 14% is a significant decrease from the September 2014 rate of 54%. The significant decrease in tax rate in the fourth quarter of 2014 was due to changes in our reversal pattern analysis based upon fourth quarter activity and a result of the minimal amount of pre-tax income reported as of September 30, 2014. The Company’s current income tax provision does not reflect the expected tax rate due to the utilization of carry forward 45G credits. The Company is subject to U.S. federal income tax as well as income tax in the Commonwealth of Massachusetts. All U.S. federal income and Massachusetts income tax matters have been concluded through 2012. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 11. Commitments and Contingent Liabilities The Company is a defendant in certain lawsuits relating to casualty losses, many of which are covered by insurance subject to a deductible. The Company believes that adequate provision has been made in the financial statements for any expected liabilities which may result from disposition of such lawsuits. On January 29, 2002, the Company received a “Notice of Potential Liability” from the United States Environmental Protection Agency (“EPA”) regarding an existing Superfund Site (“the Site”) that includes the J.M. Mills Landfill in Cumberland, Rhode Island. EPA sends these “Notice” letters to potentially responsible parties (“PRPs”) under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). EPA identified the Company as a PRP based on its status as an owner and/or operator because its railroad property traverses the Site. Via these Notice letters, EPA makes a demand for payment of past costs (identified in the letter as $762) and future costs associated with the response actions taken to address the contamination at the Site, and requests PRPs to indicate their willingness to participate and resolve their potential liability at the Site. The Company has responded to EPA by stating that it does not believe it has any liability for this Site, but that it is interested in cooperating with EPA to address issues concerning liability at the Site. In connection with the EPA claim described above, the two parties who have committed to conduct the RI/FS at the Site filed a complaint in the U.S. District Court of Rhode Island against the Company, in an action entitled CCL Custom Manufacturing, Inc. v. Arkwright Incorporated, et al (consolidated with Unilever Bestfoods v. American Steel & Aluminum Corp. et al), C.A. No. 01-496/L, on December 18, 2002. The Company was one of about sixty parties named by Plaintiffs, in this suit, to recover response costs incurred in investigating and responding to the releases of hazardous substances at the Site. Plaintiffs alleged that the Company is liable under 42 U.S.C. § 961(a)(3) of CERCLA as an “arranger” or “generator” of waste that ended up at the Site. The Company entered into a Generator Cooperation Agreement with other defendants to allocate costs in responding to this suit, and to share technical costs and information in evaluating the Plaintiffs’ claims. Although the Company does not believe it generated any waste that ended up at this Site, or that its activities caused contamination at the Site, the Company paid $45 to settle this suit in March 2006. This settlement covered investigation costs; not cleanup costs. The Government has now selected a remedy for the Site and has indicated that it will negotiate with all of the PRPs at the site to take over and or pay for the cleanup. As it did before, the Company responded to EPA stating that it is interested in cooperating with EPA but that it does not believe it has engaged in any activities that caused contamination at the Site. The Company believes that none of its activities caused contamination at the Site, and will contest this claim by EPA and therefore no liability has been accrued for this matter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans Defined Contribution Retirement Plans The Company has a profit-sharing plan (“Plan”) which covers all of its employees who are members of its collective bargaining units. Contributions to the Plan are required in years in which the Company has income from “railroad operations” as defined in the Plan. Contributions are to be equal to at least 10% but not more than 15% of the greater of income before income taxes or income from railroad operations subject to a maximum contribution of $3.5 per eligible employee. Contributions to the Plan may be made in cash or in shares of the Company’s common stock valued at the closing market price for the Company’s stock on the last business day of the year prior to the date the shares are granted. No contribution was made for 2015 or 2014 since the Company did not generate income from railroad operations during those years. The Company also has a Simplified Employee Pension plan (“SEP”) which covers substantially all employees who are not members of one of its collective bargaining units. Contributions to the SEP are discretionary and are determined annually as a percentage of each covered employee’s compensation up to the maximum amount allowable by law. Contributions accrued under the SEP amounted to $208 in 2015 and $209 in 2014 which, in each year, was less than the maximum amount allowable by law. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”) under which eligible employees may purchase registered shares of common stock at 85% of the market price for such shares. An aggregate of 200,000 shares of common stock are authorized for issuance under the ESPP which was established in 1997. Any shares purchased under the ESPP are subject to a two year lock-up. ESPP purchases amounted to 3,658 shares in 2015 and 3,556 shares in 2014. 401(k) Plan The Company has a 401(k) Plan (“401(k)”) which covers employees who are members of a collective bargaining unit as well as management employees. Contributions to employees’ 401(k) accounts are made from individual employees’ payroll contributions. The Company is not liable for contributions, other than de minimus matching contributions for employees subject to collective bargaining agreements. |
GATX Corporation
GATX Corporation | 12 Months Ended |
Dec. 31, 2015 | |
Exclusive Supply Agreement And Operating Leases [Abstract] | |
GATX Corporation | 13. GATX Corporation On January 10, 2008, the Company entered into an agreement with GATX Corporation (“GATX”) whereby GATX acquired 239,523 (approximately 4.99%) newly-issued shares of the Company’s common stock for approximately $5,500 ($23 per share) to be utilized for capital improvements to enhance the Company’s railroad lines. The parties also entered into an Exclusive Railcar Supply Agreement whereby GATX has the exclusive right to supply the Company with railcars for certain rail traffic on market-competitive terms. In addition, the Company exchanged 72 of its mill gondolas for 137 (reduced to 10 during 2014) open-top hoppers owned by GATX, which was accounted for as a purchase. In June, 2014, the Company acquired from GATX 75 open-top hoppers, which were previously leased on a per trip lease/storage arrangement. In 2008, the Company leased 72 mill gondolas from GATX under operating leases for a period of up to 7 years at a minimum annual rental of $248 (adjusted to $163 for 2014) through January 2015. During 2012, the Company and GATX amended the lease with respect to 20 of the mill gondolas which the Company returned to GATX. All other terms and conditions remained the same. In September 2014 the lease for 52 mill gondolas from GATX was extended through December 2019 at annual rate of $183. Rental expense of $183 and $163 was incurred under this lease in 2015 and 2014, respectively. In addition to the lease of gondolas, which is a fixed-rent, fixed-term lease, the Company also entered into a 7 year “per-diem” lease of 200 auto carrying railcars, for which the Company is obligated to remit car-hire revenues only. This lease expired December 2014 and was extend to December 2019. Additionally, the Company entered into a lease for 76 automobile carrying railcars, for which the Company is obligated to remit car-hire revenues only. This lease expires December 2025 and automatically renews for one year increments unless either party serves the other with written notice of cancellation. In 2015 and 2014, the car-hire earned from other railroads and remitted to GATX was approximately $3,700 for both years under the leases for automobile carrying railcars. In March 2014, the Company extended a lease for two (2) six-axle EMD SD-60 locomotives, with an additional EMD SD-60 locomotive being added to the agreement, for approximately $233 per annum through October 2017. Based upon certain conditions in the lease, the Company extended in 2014 a lease/storage arrangement for 8 hi-sided gondolas in 2014, whereby the Company pays GATX for its sporadic use on a per trip basis only. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 14. Leases During 2013, the Company installed a 209kw(DC) Solar System at its Worcester Engine House and adjacent land at a cost of $672. Upon completion of the installation, the Company sold the system to an unrelated third party for cost, leasing the Solar System back from the unrelated third party. The Company entered into a ten year operating lease for approximately $50 per annum (through December 2023). The Solar System went on line during December 2013. The Company has the option at the end of the lease term to purchase the Solar System at fair market value (not to exceed 15% of the original cost) or continue to lease month to month. The Company leases through May 2018 from an unrelated party two (2) six-axle EMD SD-40 locomotives for approximately $84 per annum. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Preferred Stock | 15. Preferred Stock The Company’s $50 par value preferred stock is convertible at any time at the option of the holder of the preferred stock into 100 shares of common stock. The noncumulative stock dividend is fixed by the Company’s Charter at an annual rate of $5.00 per share, out of funds legally available for the payment of dividends. The holders of preferred stock and holders of common stock are entitled to one vote per share, voting as separate classes, upon matters voted on by shareholders. The holders of common stock elect one-third of the Board of Directors; the voters of preferred stock elect the remainder of the Board. |
Description of Business and S23
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Providence and Worcester Railroad Company (“P&W” or the “Company”) is an interstate freight carrier conducting railroad operations in Massachusetts, Rhode Island, Connecticut and New York. Through its connecting carriers, it services customers located throughout North America. The Company services the largest international double-stack intermodal terminal facility in New England. P&W’s connections to multiple Class I railroads, either directly or through connections with regional and short-line carriers, provide the Company with a competitive advantage by allowing it to offer various pricing and routing alternatives to its customers. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents for purposes of classification in the balance sheets and statements of cash flows. Cash equivalents are stated at cost, which approximates fair market value. |
Accounts Receivables and Allowance for Doubtful Accounts | Accounts Receivables and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. The Company’s allowance for doubtful accounts is determined based upon historical write-offs and known customer information. The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable loss on its existing accounts receivable. Account balances are charged off against the allowance for doubtful accounts when the Company determines the receivable will not be recovered. |
Materials and Supplies | Materials and Supplies Materials and supplies, which consist of diesel fuel and items for the improvement and maintenance of track structure and equipment, are stated at cost, determined on a first-in, first-out basis, and are charged to expense or added to the cost of property and equipment when used. |
Property and Equipment | Property and Equipment Property and equipment, including land held for development, is stated at historical cost (including self-construction costs). Acquired railroad property is recorded at the purchased cost. Self-construction costs for track structure include material costs for ties, rail, other track materials and ballast; the cost of direct and supervisory labor, including railroad retirement taxes and employee benefits; costs for track machinery and equipment (including depreciation) and various other overhead costs. Major renewals or betterments are capitalized while routine maintenance and repairs, which do not improve or extend asset lives, are charged to expense when incurred. Costs are capitalized to the extent that they are incurred in connection with the replacement of track structure pursuant to a program of rehabilitation which results in significant future economic benefit or the construction of new track structure. A program of rehabilitation or construction of new track structure generally includes ballast, rail and other track material and ties. Costs for routine maintenance are expensed. Routine maintenance items include the sporadic replacement of ties, replacement of track structure damaged in a derailment, washout or other cause or event and the costs of general upkeep of track structure to keep it in good operating condition. Costs are capitalized or expensed depending on the facts and circumstances of each specific project. The total amount of the costs to be capitalized is based on the per unit cost for each category of expenditure (ties, rail and other track material and ballast) and the number of equivalent units installed. Costs are developed using costs incurred for materials, direct labor and overhead. Property and equipment are carried at cost and are depreciated over their useful lives. Items included in track structures with similar physical characteristics, use, year of installation and expected life are grouped into separate asset classes and depreciated over the estimated useful life of the asset class group. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Track structure: Ties 40 years Rail and other track material 67 years Ballast 67 years Bridges and trestles 67 years Other 33 years Buildings and other structures 33 to 45 years Equipment, including rolling stock 4 to 25 years The Company reviews property and equipment retirements each year in order to determine whether or not the estimated useful lives are reasonable. Since, in most instances, assets retired have been fully or substantially depreciated, the Company has not found it necessary, historically, to make any significant adjustments to their estimated useful lives. Retirements of track structure are recorded by removing the historical cost and related accumulated depreciation of the equivalent amount of its oldest track structures in the related asset class group. Gains or losses, if any, on sales or other dispositions are credited or charged to other income. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When circumstances indicate that assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining lives of the assets in determining whether the carrying amounts of the assets are recoverable. If impairment exists it is measured by comparing the carrying value to the fair value. No impairments were recognized in the years presented. |
Fair Value | Fair Value The Company believes that the fair values of its financial instruments, including cash, receivables and payables, approximate their respective book values because of their short-term nature. Upon review of current market conditions and other factors, the Company believes that the fair value of the long term debt approximates its book value. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. |
Deferred Grant and Other Revenue | Deferred Grant and other revenue The Company has availed itself of various federal and state programs administered by the states of Connecticut, Massachusetts and Rhode Island for reimbursement of expenditures for capital improvements. In order to receive reimbursement, the Company must submit requests for the projects, including cost estimates. The Company receives from 65% to 100% of the costs of such projects, which have included bridges, track structure and public improvements. To the extent that such grant proceeds are used to fund capital improvements to bridges and track structure, they are recorded as deferred grant income ($399 in 2015 and $1,080 in 2014) and amortized into operating revenues on a straight-line basis over the estimated useful lives of the related improvements. Grant proceeds utilized to finance public improvements, such as grade crossings and signals, are recorded as a direct offset to the cost of the improvements, which are not capitalized. |
Revenue Recognition and Concentration of Credit Risk | Revenue Recognition and Concentration of Credit Risk Freight revenues are estimated and recorded at the time shipments move onto the Company’s tracks or the connecting carrier’s tracks. Due to the short time of delivery to customers or the connecting carriers, freight revenues recognized at the time shipments move onto the Company’s tracks is not materially different from the revenue recognition of freight revenues as shipments progress. Freight revenues are recorded net of any unloading allowances or other fees. Other freight-related and operating revenues are recorded at the time services are rendered to the customer. Gain or loss from sale, condemnation and disposal of property and equipment and easements is recorded at the time the transaction is consummated and collectability is assured. The Company’s ten (10) largest customers account for more than half of its operating revenues. One of the Company’s customers, which mines construction aggregates from two active quarries on the Company’s rail system and ships to locations in Connecticut and New York, accounted for more than 10% of the Company’s freight operating revenues in 2015 and 2014. The Company does not believe that these customers will cease to be rail shippers in the foreseeable future; however, the Company does not control the quantities these companies will ship by rail. |
Income Taxes | Income Taxes Deferred taxes are provided on a liability method, whereby deferred tax assets are recognized for deductible temporary differences, operating losses and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. Valuation allowances are established when it is estimated that it is more likely than not that the deferred tax asset will not be realized. Certain provisions of ASC 740 Income Taxes |
Income per Common Share | Income per Common Share Basic income per common share is computed using the weighted average number of common shares outstanding during each year. Diluted income per common share reflects the effect of the Company’s outstanding convertible preferred stock (using the if-converted method) and options (using the treasury stock method), except where such items would be anti-dilutive. A reconciliation of weighted average shares used for the basic computation and that used for the diluted computation is as follows: 2015 2014 Net Income Shares Per Share Amount Net Income Shares Per Share Amount Basic Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Basic Earnings per share $ 1,823 4,861 $ 0.38 $ 3,168 4,855 $ 0.65 Diluted Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Preferred stock dividends 3 3 Effect of Dilutive Securities 72 75 Diluted Earnings per Share $ 1,826 4,933 $ 0.37 $ 3,171 4,930 $ 0.64 Options to purchase 65,437 and 63,285 shares of common stock were outstanding at December 31, 2015 and 2014, respectively. Certain options were not included in the calculation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common stock and would be anti-dilutive. For 2015 and 2014, 8,133 and 11,445 shares, respectively, relating to the options were included in the calculation of diluted earnings per share. Shares of preferred stock convertible into 64,000 shares of common stock were outstanding during 2015 and 2014. For 2015 and 2014, these were included in the calculation of diluted earnings per share. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Liabilities for casualty claims, legal judgments and other loss contingencies are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. It is the position of the Company not to accrue estimated legal fees for appeals of legal judgments since such costs do not meet the definition of a liability and thus are accruable only at such time as legal services have been provided. |
Comprehensive Income | Comprehensive Income Comprehensive Income equals net income for 2015 and 2014. |
Segment Reporting | Segment Reporting The Company organizes itself as one segment reporting to the chief operating decision maker. Products and services consist primarily of interstate freight rail services. These include the movement of freight in both conventional freight cars and in intermodal containers on flat cars over the Company’s rail lines, as well as freight-related services such as switching, weighing and special trains and other services rendered to freight customers and other outside parties by the Company’s Maintenance of Way and Maintenance of Equipment Departments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. ASU 2014-09 anticipates companies using more judgment and estimates than under the current guidance. On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. ASU 2014-09 permits the use of retrospective application to period presented or a cumulative effect transition adjustment. The Company is currently evaluating the impact and method of implementing this new guidance on its financial statements and related disclosures. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which, effective for annual and interim reporting periods beginning after December 15, 2016, simplifies the presentation of deferred income taxes, requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. Since early application is permitted, the new standard has been applied in the Company’s financial statements as of December 31, 2015. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of our pending adoption of the new standard on our financial statements. |
Description of Business and S24
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Depreciation Provided Using the Straight-line Method Over the Estimated Useful Lives of the Assets | Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Track structure: Ties 40 years Rail and other track material 67 years Ballast 67 years Bridges and trestles 67 years Other 33 years Buildings and other structures 33 to 45 years Equipment, including rolling stock 4 to 25 years |
Reconciliation of Weighted Average Shares Used for the Basic Computation and that Used for the Diluted Computation | A reconciliation of weighted average shares used for the basic computation and that used for the diluted computation is as follows: 2015 2014 Net Income Shares Per Share Amount Net Income Shares Per Share Amount Basic Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Basic Earnings per share $ 1,823 4,861 $ 0.38 $ 3,168 4,855 $ 0.65 Diluted Earnings per Share Net Income available to Common Shareholders $ 1,823 $ 3,168 Preferred stock dividends 3 3 Effect of Dilutive Securities 72 75 Diluted Earnings per Share $ 1,826 4,933 $ 0.37 $ 3,171 4,930 $ 0.64 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Key Assumptions Used to Apply the Black-Scholes Option Pricing Model | Key assumptions used to apply the Black-Scholes option pricing model are set forth below: 2015 2014 Average risk-free interest rate 1.64 % 1.17 % Expected life of option grants 5.0 years 5.0 years Expected volatility of underlying stock 72.55 % 99.00 % Expected dividend payment rate, as a percentage of the share price on the date of grant 0.89 % 0.82 % Weighted average grant date fair value $ 10.20 $ 13.80 |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the Company’s plan: Weighted Average Number Exercise Fair Of Options Price Value Outstanding and exercisable at December 31, 2013 67,082 $ 14.26 Granted 8,240 19.55 $ 13.80 Exercised (6,709 ) 12.72 Expired (5,328 ) 14.37 Outstanding and exercisable at December 31, 2014 63,285 $ 15.12 Granted 8,300 18.06 $ 10.20 Exercised (1,119 ) 14.11 Expired (5,029 ) 14.43 Outstanding and exercisable at December 31, 2015 65,437 $ 15.55 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following: As of December 31, 2015 Cost Accumulated Depreciation Net Book Value Property: Land and land improvements $ 11,474 $ — $ 11,474 Buildings and other structures 8,417 (4,227 ) 4,190 Track structures: Rail and other track material 31,219 (8,110 ) 23,109 Ballast 5,935 (1,912 ) 4,023 Ties 51,605 (26,285 ) 25,320 Bridges & Trestles 10,709 (3,004 ) 7,705 Other 1,361 (971 ) 390 Total property 120,720 (44,509 ) 76,211 Equipment: Office 453 (420 ) 33 Locomotives 14,473 (8,749 ) 5,724 Rail cars 2,707 (996 ) 1,711 Vehicles 2,930 (2,198 ) 732 Signals and crossing 1,180 (747 ) 433 Track 2,557 (1,532 ) 1,025 Other 4,555 (3,692 ) 863 Total equipment 28,855 (18,334 ) 10,521 Construction-in-process 2,178 — 2,178 Total Property and Equipment $ 151,753 $ (62,843 ) $ 88,910 As of December 31, 2014 Cost Accumulated Depreciation Net Book Value Property: Land and land improvements $ 11,474 $ — $ 11,474 Buildings and other structures 8,376 (4,081 ) 4,295 Track structures: Rail and other track material 31,107 (7,614 ) 23,493 Ballast 5,922 (1,814 ) 4,108 Ties 51,297 (25,392 ) 25,905 Bridges & Trestles 8,996 (2,802 ) 6,194 Other 1,361 (953 ) 408 Total property 118,533 (42,656 ) 75,877 Equipment: Office 459 (411 ) 48 Locomotives 12,262 (8,152 ) 4,110 Rail cars 2,707 (895 ) 1,812 Vehicles 2,952 (2,271 ) 681 Signals and crossing 1,111 (673 ) 438 Track 2,349 (1,502 ) 847 Other 4,690 (3,756 ) 934 Total equipment 26,530 (17,660 ) 8,870 Construction-in-process 1,208 — 1,208 Total Property and Equipment $ 146,271 $ (60,316 ) $ 85,955 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Maturities of Long-term Debt | Based upon amounts the Company currently has outstanding, the maturities of long-term debt are as follows: 2016 $ 20 2017 $ 34 2018 $ 35 2019 $ 37 2020 $ 38 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consist of the following: December 31, 2015 2014 Salaries and wages $ 722 $ 688 Payroll taxes 194 182 Simplified employee pension plan contributions 208 209 Legal and professional fees 232 157 Casualty loss claims 165 407 Other 132 167 $ 1,653 $ 1,810 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |
Other Income | Other income consists of the following: Years Ended December 31, 2015 2014 Gains and losses from sale, disposal and retirement of property, equipment and easements, net $ 42 $ 498 Interest and other 33 8 $ 75 $ 506 |
Amtrak Agreement (Tables)
Amtrak Agreement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Agreement With Related Party [Abstract] | |
Schedule Of Remaining Track Mileage Credit | The Company has recorded the following offsets to Track Usage expense and no credits remained outstanding as of December 31, 2015: Years Ended December 31, 2015 2014 Mileage credit available $ 418 $ 1,219 Utilized 418 801 Mileage credit remaining $ — $ 418 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consists of the following: Years Ended December 31, 2015 2014 Current: Federal $ 309 $ 415 State 144 142 453 557 Deferred: Federal 360 (46 ) State 18 (15 ) 378 (61 ) $ 831 $ 496 |
Net Deferred Income Tax Provision | The following summarizes the estimated tax effect of temporary differences that are included in the net deferred income tax provision: Years Ended December 31, 2015 2014 Depreciation $ 222 $ 213 Deferred grant income 65 (339 ) Track maintenance credit 216 1,123 Accrued casualty and other claims 87 19 Accrued compensated time off and related payroll taxes 16 (17 ) Share based compensation (30 ) (41 ) Other 18 (167 ) Change in valuation allowance (216 ) (852 ) $ 378 $ (61 ) |
Net Deferred Income Tax Liability | The tax effect of significant items comprising the Company’s net deferred income tax liability as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred income tax liabilities - Differences between book and tax basis of property and equipment $ 19,013 $ 18,802 Deferred income tax assets: Deferred grant income 4,649 4,714 Track maintenance credit carry forwards 1,240 1,456 Alternative minimum tax carry forwards 75 75 Accrued casualty and other claims 59 146 Accrued compensated time off and related payroll taxes 245 261 Share based compensation 311 281 Allowance for doubtful accounts and other 72 101 6,651 7,034 Valuation allowance (1,240 ) (1,456 ) Net deferred income tax liability $ 13,602 $ 13,224 |
Summary of Reconciliation of the U.S. Federal Statutory Rate to the Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to the effective tax rate is as follows: Years Ended December 31, 2015 2014 Federal statutory rate 34 % 34 % Nondeductible expenses, state income taxes, and other 5 3 Change in valuation allowance (8 ) (23 ) Effective tax rate 31 % 14 % |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)CustomerSegmentshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Maturity period of highly liquid investments to be considered as cash equivalents | three months or less | ||
Impairment on long-lived assets | $ | $ 0 | ||
Amortization of Deferred Revenue | $ | $ 399,000 | $ 1,080,000 | |
Number of major customers | Customer | 10 | ||
Options outstanding for the purchase of common stock | 65,437 | 63,285 | 67,082 |
Number of shares relating to options included in the calculation of diluted earnings per share | 8,133 | 11,445 | |
Preferred stock convertible into common stock at rate of shares of common stock | 64,000 | 64,000 | |
Number of reporting segment | Segment | 1 | ||
Minimum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of Reimbursement of cost incurred | 65.00% | ||
Minimum [Member] | Freight Operating Revenues [Member] | Customer Concentration Risk [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Company's freight operating revenue by customer | 10.00% | 10.00% | |
Maximum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of Reimbursement of cost incurred | 100.00% |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies - Depreciation Provided Using Straight-line Method over Estimated useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Ties [Member] | |
Track structure: | |
Estimated useful life of assets | 40 years |
Rail and Other Track Material [Member] | |
Track structure: | |
Estimated useful life of assets | 67 years |
Ballast [Member] | |
Track structure: | |
Estimated useful life of assets | 67 years |
Bridges and Trestles [Member] | |
Track structure: | |
Estimated useful life of assets | 67 years |
Other [Member] | |
Track structure: | |
Estimated useful life of assets | 33 years |
Buildings and Other Structures [Member] | Minimum [Member] | |
Track structure: | |
Estimated useful life of assets | 33 years |
Buildings and Other Structures [Member] | Maximum [Member] | |
Track structure: | |
Estimated useful life of assets | 45 years |
Equipment, Including Rolling Stock [Member] | Minimum [Member] | |
Track structure: | |
Estimated useful life of assets | 4 years |
Equipment, Including Rolling Stock [Member] | Maximum [Member] | |
Track structure: | |
Estimated useful life of assets | 25 years |
Description of Business and S34
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Weighted Average Shares Used for the Basic Computation and that Used for the Diluted Computation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic Earnings per Share | ||
Net Income Attributable to Common Shareholders | $ 1,823 | $ 3,168 |
Number of basic shares | 4,861 | 4,855 |
Basic Earnings per share | $ 0.38 | $ 0.65 |
Diluted Earnings per Share | ||
Net Income Attributable to Common Shareholders | $ 1,823 | $ 3,168 |
Preferred Stock Dividends | $ 3 | $ 3 |
Effect of Dilutive Securities | 72 | 75 |
Net Income available to Common Shareholders | $ 1,826 | $ 3,171 |
Net Income available to Common Shareholders | $ 1,823 | $ 3,168 |
Number of diluted shares | 4,933 | 4,930 |
Diluted Earnings per Share | $ 0.37 | $ 0.64 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of options awarded by company | 8,300 | 8,240 | ||
Options outstanding for the purchase of common stock | 65,437 | 63,285 | 67,082 | |
Stock-based employee compensation expense | $ 85 | $ 73 | ||
Total intrinsic value of options | 1 | 38 | ||
Cash proceeds from the exercise of stock options | 16 | 85 | ||
Aggregate intrinsic value of the stock options outstanding | $ 45 | $ 208 | ||
Weighted average of the remaining life | 5 years | 5 years | ||
Common Stock Award [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of shares awarded by company | 40 | 50 | ||
2015 Equity Incentive Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of options awarded by company | 0 | |||
2015 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of shares awarded by company | 0 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of options awarded by company | 54,000 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | Restricted Stock Units [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of shares awarded by company | 70,500 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | Stock Option [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Option awards vesting period | 5 years | |||
Non-qualified Stock Option Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Minimum service period required to be covered by SOP | 1 year | |||
Exercisable period of options granted under SOP | 10 years | |||
Non-qualified Stock Option Plan [Member] | Subsequent Event [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Options outstanding for the purchase of common stock | 43,931 |
Share-Based Compensation - Key
Share-Based Compensation - Key Assumptions Used to Apply the Black-Scholes Option Pricing Model (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Average risk-free interest rate | 1.64% | 1.17% |
Expected life of option grants | 5 years | 5 years |
Expected volatility of underlying stock | 72.55% | 99.00% |
Expected dividend payment rate, as a percentage of the share price on the date of grant | 0.89% | 0.82% |
Weighted average grant date fair value | $ 10.20 | $ 13.80 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of options, Beginning balance | 63,285 | 67,082 |
Number of options, Granted | 8,300 | 8,240 |
Number of options, Exercised | (1,119) | (6,709) |
Number of options, Expired | (5,029) | (5,328) |
Number of options, Ending balance | 65,437 | 63,285 |
Weighted Average Exercise price, Beginning balance | $ 15.12 | $ 14.26 |
Weighted Average Exercise price granted | 18.06 | 19.55 |
Weighted Average Exercise price, Exercised | 14.11 | 12.72 |
Weighted Average Exercise price, Expired | 14.43 | 14.37 |
Weighted Average Exercise price, Ending balance | 15.55 | 15.12 |
Weighted Average Fair Value, Granted | $ 10.20 | $ 13.80 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | $ 151,753 | $ 146,271 |
Accumulated Depreciation | (62,843) | (60,316) |
Net Book Value | 88,910 | 85,955 |
Land and Land Improvements [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 11,474 | 11,474 |
Net Book Value | 11,474 | 11,474 |
Buildings and Other Structures [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 8,417 | 8,376 |
Accumulated Depreciation | (4,227) | (4,081) |
Net Book Value | 4,190 | 4,295 |
Rail and Other Track Material [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 31,219 | 31,107 |
Accumulated Depreciation | (8,110) | (7,614) |
Net Book Value | 23,109 | 23,493 |
Ballast [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 5,935 | 5,922 |
Accumulated Depreciation | (1,912) | (1,814) |
Net Book Value | 4,023 | 4,108 |
Ties [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 51,605 | 51,297 |
Accumulated Depreciation | (26,285) | (25,392) |
Net Book Value | 25,320 | 25,905 |
Bridges and Trestles [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 10,709 | 8,996 |
Accumulated Depreciation | (3,004) | (2,802) |
Net Book Value | 7,705 | 6,194 |
Other [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 1,361 | 1,361 |
Accumulated Depreciation | (971) | (953) |
Net Book Value | 390 | 408 |
Property [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 120,720 | 118,533 |
Accumulated Depreciation | (44,509) | (42,656) |
Net Book Value | 76,211 | 75,877 |
Office [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 453 | 459 |
Accumulated Depreciation | (420) | (411) |
Net Book Value | 33 | 48 |
Locomotives [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 14,473 | 12,262 |
Accumulated Depreciation | (8,749) | (8,152) |
Net Book Value | 5,724 | 4,110 |
Railcars [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 2,707 | 2,707 |
Accumulated Depreciation | (996) | (895) |
Net Book Value | 1,711 | 1,812 |
Vehicles [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 2,930 | 2,952 |
Accumulated Depreciation | (2,198) | (2,271) |
Net Book Value | 732 | 681 |
Signals and Crossing [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 1,180 | 1,111 |
Accumulated Depreciation | (747) | (673) |
Net Book Value | 433 | 438 |
Track [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 2,557 | 2,349 |
Accumulated Depreciation | (1,532) | (1,502) |
Net Book Value | 1,025 | 847 |
Other [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 4,555 | 4,690 |
Accumulated Depreciation | (3,692) | (3,756) |
Net Book Value | 863 | 934 |
Equipment [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 28,855 | 26,530 |
Accumulated Depreciation | (18,334) | (17,660) |
Net Book Value | 10,521 | 8,870 |
Construction in Process [Member] | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Cost | 2,178 | 1,208 |
Net Book Value | $ 2,178 | $ 1,208 |
Land Held for Development and39
Land Held for Development and Related Party Transaction - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)aWaterfront_Parcels | |
Related Party Transaction [Line Items] | |
Area of waterfront land | 33 |
Area of site adjacent to property | 12 |
Amount invested in development of South Quay | $ | $ 12,000 |
First expiration date of extended property permit | 2019-12 |
Second expiration date of property permit | 2015-12 |
Number of waterfront parcels | Waterfront_Parcels | 2 |
Area of additional waterfront land | 11 |
CTC [Member] | |
Related Party Transaction [Line Items] | |
Additional extension period for license agreement | 3 years |
Agreement termination period | 30 days |
Debt - Additional Information (
Debt - Additional Information (Detail) - Unsecured Debt [Member] | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($)lb | Dec. 31, 2014USD ($) | |
Commercial Loan [Member] | |||
Debt Instrument [Line Items] | |||
Commercial bank loan | $ 5,000,000 | ||
Freight lading capacity | lb | 286,000 | ||
Interest only loan payment period | 12 months | ||
Debt instrument maturity term | 10 years | ||
Amortization period | 20 years | ||
Loan Interest rate | 4.11% | ||
Loan drawn amount | $ 1,000,000 | ||
Term loan, borrowings undrawn amount | $ 4,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Extended revolving line of credit facility | $ 5,000,000 | ||
Line of credit facility maturity date | Jun. 25, 2017 | ||
Variable rate interest | LIBOR | ||
Variable rate interest Option 2 | One and three-quarters percent over the thirty, sixty or ninety day London Interbank Offered Rate ("LIBOR") with a LIBOR floor of one and one-quarter percent. | ||
Commitment fee amount | $ 0 | ||
Compensating balance amount | 0 | ||
Outstanding line of credit | $ 0 | $ 0 |
Debt - Summary of Maturities of
Debt - Summary of Maturities of Long-term Debt (Detail) - Unsecured Debt [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 20 |
2,017 | 34 |
2,018 | 35 |
2,019 | 37 |
2,020 | $ 38 |
Accrued Expense - Components of
Accrued Expense - Components of Accrued Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Salaries and wages | $ 722 | $ 688 |
Payroll taxes | 194 | 182 |
Simplified employee pension plan contributions | 208 | 209 |
Legal and professional fees | 232 | 157 |
Casualty loss claims | 165 | 407 |
Other | 132 | 167 |
Total | $ 1,653 | $ 1,810 |
Other Income - Other Income (De
Other Income - Other Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Abstract] | ||
Gains and losses from sale, disposal and retirement of property, equipment and easements, net | $ 42 | $ 498 |
Interest and other | 33 | 8 |
Other income, net | $ 75 | $ 506 |
Railroad Track Maintenance Cr44
Railroad Track Maintenance Credits - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Track maintenance revenue from third party | $ 1,800 | $ 1,800 |
Amtrak Agreement - Additional I
Amtrak Agreement - Additional Information (Detail) - USD ($) | Apr. 04, 2012 | Dec. 31, 2015 | Dec. 31, 2014 |
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | $ 418,000 | $ 1,219,000 | |
Dispute Settlement Gross Amount Remaining | $ 0 | $ 418,000 | |
Amtrak Agreement [Member] | |||
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | $ 5,577,000 | ||
Amtrak Agreement [Member] | License Arrangement [Member] | |||
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | 179,000 | ||
Amtrak Agreement [Member] | Track Material [Member] | |||
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | 684,000 | ||
Amtrak Agreement [Member] | Inter Entity Outstanding Adjustment [Member] | |||
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | 2,143,000 | ||
Amtrak Agreement [Member] | Mileage Charges Freight [Member] | |||
Dispute Settlement Agreement [Line Items] | |||
Dispute settlement gross amount | $ 2,571,000 |
Amtrak Agreement - Schedule of
Amtrak Agreement - Schedule of Remaining Track Mileage Credit (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Agreement With Related Party [Abstract] | ||
Mileage credit available | $ 418,000 | $ 1,219,000 |
Utilized | 418,000 | 801,000 |
Mileage credit remaining | $ 0 | $ 418,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ 309 | $ 415 |
State | 144 | 142 |
Current expense (Benefit) | 453 | 557 |
Deferred: | ||
Federal | 360 | (46) |
State | 18 | (15) |
Deferred Income Tax Expense (Benefit) | 378 | (61) |
Income Tax Expense (Benefit), Total | $ 831 | $ 496 |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Depreciation | $ 222 | $ 213 |
Deferred grant income | 65 | (339) |
Track maintenance credit | 216 | 1,123 |
Accrued casualty and other claims | 87 | 19 |
Accrued compensated time off and related payroll taxes | 16 | (17) |
Share based compensation | (30) | (41) |
Other | 18 | (167) |
Change in valuation allowance | (216) | (852) |
Deferred Income Tax Expense (Benefit) | $ 378 | $ (61) |
Income Taxes - Net Deferred I49
Income Taxes - Net Deferred Income Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax liabilities - Differences between book and tax basis of property and equipment | $ 19,013 | $ 18,802 |
Deferred income tax assets: | ||
Deferred grant income | 4,649 | 4,714 |
Track maintenance credit carry forwards | 1,240 | 1,456 |
Alternative minimum tax carry forwards | 75 | 75 |
Accrued casualty and other claims | 59 | 146 |
Accrued compensated time off and related payroll taxes | 245 | 261 |
Share based compensation | 311 | 281 |
Allowance for doubtful accounts and other | 72 | 101 |
Gross tax asset | 6,651 | 7,034 |
Valuation allowance | (1,240) | (1,456) |
Net deferred income tax liability | $ 13,602 | $ 13,224 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Railroad Track Maintenance Credits in the cumulative amount | $ 4,491 | |||
Maximum period to offset future income tax liabilities | 20 years | |||
Income Tax rate | 38.00% | 54.00% | 31.00% | 14.00% |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the U.S. Federal Statutory Rate to the Effective Tax Rate (Detail) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 34.00% | 34.00% | ||
Nondeductible expenses, state income taxes, and other | 5.00% | 3.00% | ||
Change in valuation allowance | (8.00%) | (23.00%) | ||
Effective tax rate | 38.00% | 54.00% | 31.00% | 14.00% |
Commitments and Contingent Li52
Commitments and Contingent Liabilities - Additional Information (Detail) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2006USD ($) | Dec. 31, 2015USD ($)Plaintiff | |
Commitments And Contingencies Disclosure [Abstract] | ||
Payment of past costs demand | $ 762,000 | |
Number of parties named by Plaintiff | Plaintiff | 60 | |
Amount paid to settle suit | $ 45,000 | |
Accrued liability from United States Environmental Protection Agency | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Amount of contribution in retirement plans | $ 3,500 | |
Contribution based on income from railroad operations | 0 | $ 0 |
Contributions accrued under SEP | $ 208,000 | $ 209,000 |
Purchase of registered shares of common stock | 85.00% | |
Lock-up period of shares purchased under the ESPP | 2 years | |
Number of shares ESPP purchases | 3,658 | 3,556 |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares authorized for issuance under ESPP | 200,000 | |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of contribution in retirement plans | 10.00% | |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of contribution in retirement plans | 15.00% |
GATX Corporation - Additional I
GATX Corporation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014USD ($)Millgondola | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)MillgondolaAutomobile$ / sharesshares | Dec. 31, 2014USD ($)Millgondola$ / sharesshares | Dec. 31, 2013 | Dec. 31, 2012MillgondolaRailcar | Jun. 30, 2014Opentop_Hoppers | Jan. 10, 2008USD ($)MillgondolaOpentop_Hoppers$ / sharesshares | |
Lease Commitments [Line Items] | ||||||||
Number of shares acquired by GATX | shares | 4,862,693 | 4,859,871 | 239,523 | |||||
Percentage of shares acquired by GATX | 4.99% | |||||||
Cost of newly-issued shares common stock | $ 2,432 | $ 2,430 | $ 5,500 | |||||
Cost per share of newly-issued shares common stock | $ / shares | $ 0.50 | $ 0.50 | $ 23 | |||||
Number of mill gondolas | Millgondola | 52 | 10 | 72 | |||||
Number of open-top hoppers | Opentop_Hoppers | 75 | 137 | ||||||
Number of gondolas returned | Millgondola | 20 | |||||||
Lease expiration term | 7 years | |||||||
Number of auto carrying railcars | Railcar | 200 | |||||||
Lease expiration date | Dec. 31, 2025 | Dec. 31, 2023 | ||||||
Number of automobile carrying railcars | Automobile | 76 | |||||||
Lease renewal term | 1 year | |||||||
Operating lease maturity period | Mar. 1, 2014 | |||||||
Number of gondolas entered into per diem lease | Millgondola | 8 | |||||||
GATX [Member] | ||||||||
Lease Commitments [Line Items] | ||||||||
Car-hire earned from other railroads and remitted to GATX | $ 3,700 | $ 3,700 | ||||||
Gondolas [Member] | ||||||||
Lease Commitments [Line Items] | ||||||||
Period of operating leases | 7 years | |||||||
Annual rent adjusted | 163 | |||||||
Annual rental maturity date | 2019-12 | 2015-01 | ||||||
Annual lease rate | $ 183 | |||||||
Rental expense | $ 183 | $ 163 | ||||||
Lease expiration extended date | 2019-12 | |||||||
Auto Carrying Railcars [Member] | ||||||||
Lease Commitments [Line Items] | ||||||||
Lease expiration date | Dec. 31, 2014 | |||||||
Locomotives [Member] | ||||||||
Lease Commitments [Line Items] | ||||||||
Cost of lease six-axle EMD SD-60 locomotives | $ 233 | |||||||
Minimum [Member] | Gondolas [Member] | ||||||||
Lease Commitments [Line Items] | ||||||||
Annual rent | $ 248 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Sale Leaseback Transaction [Line Items] | ||
Operating lease period | 10 years | |
Operating lease per annum | $ 50 | |
Operating lease expiration date | Dec. 31, 2025 | Dec. 31, 2023 |
Lease amount from unrelated party | $ 84 | |
Lease from unrelated party expiration date | 2018-05 | |
Solar Energy Facilities [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Solar system installation cost | $ 672 | |
Maximum [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Maximum purchase price percentage of solar system | 15.00% |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||
Convertible preferred stock par value | $ 50 | $ 50 |
Noncumulative stock dividend | $ 5 | $ 5 |
Holders of preferred stock entitled | One vote per share | |
Holders of common stock entitled | One vote per share | |
Noncumulative Preferred Stock [Member] | ||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||
Number of shares of common stock | 100 | |
Noncumulative stock dividend | $ 5 |