Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Feb. 23, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Trading Symbol	kex
Entity Registrant Name	KIRBY CORP
Entity Central Index Key	0000056047
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,668,000
Entity Well-Known Seasoned Issuer	Yes
Entity Public Float			$ 1,975,529,000
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 195,600	$ 97,836
Accounts receivable:
Trade - less allowance for doubtful accounts of $4,000 ($4,532 in 2009)	146,359	132,660
Other	21,612	7,379
Inventory - finished goods, at lower of average cost or market	38,821	39,793
Prepaid expenses and other current assets	17,105	14,963
Deferred income taxes	6,418	7,466
Total current assets	425,915	300,097
Property and equipment:
Marine transportation equipment	1,748,488	1,654,799
Land, buildings and equipment	113,823	117,560
Property and equipment	1,862,311	1,772,359
Accumulated depreciation	744,150	687,302
Property and equipment - net	1,118,161	1,085,057
Investment in affiliates	3,336	3,052
Goodwill - net	228,873	228,873
Other assets	18,652	18,884
Total assets	1,794,937	1,635,963
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	128	35
Income taxes payable	3,065	5,210
Accounts payable	71,354	52,091
Accrued liabilities:
Interest	1,006	934
Insurance premiums and claims	24,416	23,744
Employee compensation	30,582	24,860
Taxes - other than on income	7,550	5,293
Other	10,525	12,640
Deferred revenues	11,633	12,297
Total current liabilities	160,259	137,104
Long-term debt - less current portion	200,006	200,204
Deferred income taxes	231,775	200,397
Other long-term liabilities	43,758	42,163
Total long-term liabilities	475,539	442,764
Contingencies and commitments
Kirby stockholders' equity:
Common stock, $.10 par value per share. Authorized 120,000,000 shares, issued 57,337,000 shares	5,734	5,734
Additional paid-in capital	237,014	229,724
Accumulated other comprehensive income - net	(33,642)	(30,468)
Retained earnings	1,046,615	930,366
Treasury stock - at cost, 3,780,000 shares in 2010 and 3,500,000 in 2009	(99,622)	(82,893)
Total Kirby stockholders' equity	1,156,099	1,052,463
Noncontrolling interests	3,040	3,632
Total equity	1,159,139	1,056,095
Total liabilities and equity	$ 1,794,937	$ 1,635,963

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED BALANCE SHEETS
Trade, allowance for doubtful accounts	$ 4,000	$ 4,532
Common stock, par value per share	$ 0.10	$ 0.10
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	57,337,000	57,337,000
Treasury stock, shares	3,780,000	3,500,000

CONSOLIDATED STATEMENTS OF EARNINGS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues:
Marine transportation	$ 915,046	$ 881,298	$ 1,095,475
Diesel engine services	194,511	200,860	264,679
Total revenues	1,109,557	1,082,158	1,360,154
Costs and expenses:
Costs of sales and operating expenses	683,236	637,833	843,310
Selling, general and administrative	117,694	121,401	142,171
Taxes, other than on income	13,209	12,104	13,120
Depreciation and amortization	95,296	93,968	91,199
Impairment of goodwill		1,901
Loss (gain) on disposition of assets	78	(1,079)	(142)
Total costs and expenses	909,513	866,128	1,089,658
Operating income	200,044	216,030	270,496
Equity in earnings of affiliates	283	874	134
Other income (expense)	273	(266)	(649)
Interest expense	(10,960)	(11,080)	(14,064)
Earnings before taxes on income	189,640	205,558	255,917
Provision for taxes on income	(72,258)	(78,020)	(97,444)
Net earnings	117,382	127,538	158,473
Less: Net earnings attributable to noncontrolling interests	(1,133)	(1,597)	(1,305)
Net earnings attributable to Kirby	$ 116,249	$ 125,941	$ 157,168
Net earnings per share attributable to Kirby common stockholders:
Basic	$ 2.16	$ 2.34	$ 2.92
Diluted	$ 2.15	$ 2.34	$ 2.91

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (USD $) In Thousands	Total	Common stock [Member]	Additional paid-in capital [Member]	Accumulated other comprehensive income [Member]	Retained earnings [Member]	Treasury stock [Member]	Noncontrolling interest [Member]	Comprehensive income [Member]
Balance at beginning of year at Dec. 31, 2007		$ 5,734	$ 211,983	$ (22,522)	$ 647,692	$ (73,057)	$ 2,978
Excess (deficit) of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued			3,879
Tax benefit realized from equity compensation plans			8,930
Issuance of restricted stock, net of forfeitures			(8,332)
Amortization of unearned compensation	9,258		9,258
Change in defined benefit plans' minimum liabilities, net of taxes ($1,028 in 2010, $(12,962) in 2009 and $14,344 in 2008)				(23,134)
Change in fair value of derivative financial instruments, net of taxes ($986 in 2010, $(1,974) in 2009 and $5,049 in 2008)				(9,391)
Net earnings attributable to Kirby for the year	157,168				157,168
Adjustment to initially apply ASC 715-10, net of taxes of $270					(435)
Purchase of treasury stock (618,000 in 2010, 20,000 in 2009 and 837,000 shares in 2008)						(33,377)
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (338,000 in 2010, 368,000 in 2009 and 795,000 in 2008)						15,657
Net earnings attributable to noncontrolling interests	1,305						1,305
Return of investment to noncontrolling interests	(894)						(894)
Proceeds from noncontrolling interest investments	113						113
Net earnings	158,473							158,473
Other comprehensive income (loss), net of taxes ($2,013 in 2010, $(14,936) in 2009 and $19,393 in 2008)								(32,525)
Total comprehensive income								125,948
Balance at end of year at Dec. 31, 2008		5,734	225,718	(55,047)	804,425	(90,777)	3,502
Excess (deficit) of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued			(349)
Tax benefit realized from equity compensation plans			1,013
Issuance of restricted stock, net of forfeitures			(6,513)
Amortization of unearned compensation	9,855		9,855
Change in defined benefit plans' minimum liabilities, net of taxes ($1,028 in 2010, $(12,962) in 2009 and $14,344 in 2008)				20,903
Change in fair value of derivative financial instruments, net of taxes ($986 in 2010, $(1,974) in 2009 and $5,049 in 2008)				3,676
Net earnings attributable to Kirby for the year	125,941				125,941
Purchase of treasury stock (618,000 in 2010, 20,000 in 2009 and 837,000 shares in 2008)						(657)
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (338,000 in 2010, 368,000 in 2009 and 795,000 in 2008)						8,541
Net earnings attributable to noncontrolling interests	1,597						1,597
Return of investment to noncontrolling interests	(1,782)						(1,782)
Proceeds from noncontrolling interest investments	315						315
Net earnings	127,538							127,538
Other comprehensive income (loss), net of taxes ($2,013 in 2010, $(14,936) in 2009 and $19,393 in 2008)								24,579
Total comprehensive income								152,117
Balance at end of year at Dec. 31, 2009	1,056,095	5,734	229,724	(30,468)	930,366	(82,893)	3,632
Excess (deficit) of proceeds received upon exercise of stock options and issuance of restricted stock over cost of treasury stock issued			3,140
Tax benefit realized from equity compensation plans			373
Issuance of restricted stock, net of forfeitures			(7,090)
Amortization of unearned compensation	10,867		10,867
Change in defined benefit plans' minimum liabilities, net of taxes ($1,028 in 2010, $(12,962) in 2009 and $14,344 in 2008)				(1,654)
Change in fair value of derivative financial instruments, net of taxes ($986 in 2010, $(1,974) in 2009 and $5,049 in 2008)				(1,520)
Net earnings attributable to Kirby for the year	116,249				116,249
Purchase of treasury stock (618,000 in 2010, 20,000 in 2009 and 837,000 shares in 2008)						(23,793)
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock (338,000 in 2010, 368,000 in 2009 and 795,000 in 2008)						7,064
Net earnings attributable to noncontrolling interests	1,133						1,133
Return of investment to noncontrolling interests	(1,794)						(1,794)
Proceeds from noncontrolling interest investments	69						69
Net earnings	117,382							117,382
Other comprehensive income (loss), net of taxes ($2,013 in 2010, $(14,936) in 2009 and $19,393 in 2008)								(3,174)
Total comprehensive income								114,208
Balance at end of year at Dec. 31, 2010	$ 1,159,139		$ 237,014	$ (33,642)	$ 1,046,615	$ (99,622)	$ 3,040

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
Change in defined benefit plans' minimum liabilities, taxes	$ 1,028	$ (12,962)	$ 14,344
Change in fair value of derivative financial instruments, taxes	986	(1,974)	5,049
Purchase of treasury stock, shares	618,000	20,000	837,000
Cost of treasury stock issued upon exercise of stock options and issuance of restricted stock	338,000	368,000	795,000
Other comprehensive income (loss), taxes	2,013	(14,936)	19,393
Adjustment to initially apply ASC 715-10, taxes			$ 270

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net earnings	$ 117,382	$ 127,538	$ 158,473
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization	95,296	93,968	91,199
Provision (credit) for doubtful accounts	(15)	(1,104)	7,799
Provision for deferred income taxes	34,439	42,424	34,280
Loss (gain) on disposition of assets	78	(1,079)	(142)
Equity in earnings of affiliates	(283)	(874)	(134)
Amortization of unearned share based compensation	10,867	9,855	9,258
Impairment of goodwill		1,901
Other		(104)	65
Increase (decrease) in cash flows resulting from changes in:
Accounts receivable	(17,563)	59,083	(21,277)
Inventory	973	8,724	6,208
Other assets	(2,511)	(1,585)	7,053
Income taxes payable	(13,284)	3,557	(7,530)
Accounts payable	19,262	(25,929)	(22,888)
Accrued and other liabilities	605	3,510	(16,417)
Net cash provided by operating activities	245,246	319,885	245,947
Cash flows from investing activities:
Capital expenditures	(136,841)	(192,660)	(173,019)
Acquisitions of businesses and marine equipment, net of cash acquired			(5,480)
Proceeds from disposition of assets	9,725	7,388	1,978
Net cash used in investing activities	(127,116)	(185,272)	(176,521)
Cash flows from financing activities:
Payments on bank credit facilities, net		(46,000)	(49,050)
Payments on long-term debt, net	(105)	(1,087)	(1,091)
Return of investment to noncontrolling interests	(1,794)	(1,782)	(894)
Proceeds from noncontrolling interest investments	69	315	113
Proceeds from exercise of stock options	4,884	2,774	12,888
Purchase of treasury stock	(23,793)	(657)	(33,377)
Excess tax benefit from equity compensation plans	373	1,013	5,515
Net cash used in financing activities	(20,366)	(45,424)	(65,896)
Increase in cash and cash equivalents	97,764	89,189	3,530
Cash and cash equivalents, beginning of year	97,836	8,647	5,117
Cash and cash equivalents, end of year	195,600	97,836	8,647
Supplemental disclosures of cash flow information:
Interest	10,604	10,899	14,002
Income taxes	50,743	31,005	65,180
Noncash investing activity:
Disposition of assets for receivables	$ 1,569	$ 934

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2010
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts of Kirby Corporation and all majority-owned subsidiaries ("the Company"). One affiliated limited partnership in which the Company owns a 50% interest, is the general partner and has effective control, and whose activities are an integral part of the operations of the Company, is consolidated. All other investments in which the Company owns 20% to 50% and exercises significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to reflect the current presentation of financial information. *Accounting Policies* Cash Equivalents. Cash equivalents consist of all short-term, highly liquid investments with maturities of three months or less at date of purchase. Accounts Receivable. In the normal course of business, the Company extends credit to its customers. The Company regularly reviews the accounts and makes adequate provisions for probable uncollectible balances. It is the Company's opinion that the accounts have no impairment, other than that for which provisions have been made. Included in accounts receivable as of December 31, 2010 and 2009 were $24,626,000 and $23,789,000, respectively, of accruals for revenues earned which have not been invoiced as of the end of each year. The Company's marine transportation and diesel engine services operations are subject to hazards associated with such businesses. The Company maintains insurance coverage against these hazards with insurance companies. Included in accounts receivable as of December 31, 2010 and 2009 were $3,453,000 and $2,078,000, respectively, of receivables from insurance companies to cover claims in excess of the Company's deductible. Concentrations of Credit Risk. Financial instruments which potentially subject the Company to concentrations of credit risk are primarily trade accounts receivables. The Company's marine transportation customers include the major oil refining and petrochemical companies. The diesel engine services customers are offshore oil and gas service companies, inland and offshore marine transportation companies, commercial fishing companies, power generation companies, shortline, industrial, Class II and certain transit railroads, and the United States government. The Company regularly reviews its accounts and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information. Estimates of uncollectible amounts are revised each period, and changes are recorded in the period they become known. Fair Value of Financial Instruments. Cash, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The fair value of the Company's debt instruments is more fully described in Note 5, Long-Term Debt. Property, Maintenance and Repairs. Property is recorded at cost. Improvements and betterments are capitalized as incurred. Depreciation is recorded on the straight-line method over the estimated useful lives of the individual assets as follows: marine transportation equipment, 6-40 years; buildings, 10-40 years; other equipment, 2-10 years; and leasehold improvements, term of lease. When property items are retired, sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts with any gain or loss on the disposition included in the statement of earnings. Maintenance and repairs are charged to operating expense as incurred. Environmental Liabilities. The Company expenses costs related to environmental events as they are incurred or when a loss is considered probable and estimable. Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill. Goodwill, including goodwill associated with equity method investments, is not amortized. The Company conducted its annual goodwill impairment test at November 30, 2010 and 2009. For 2010, the Company noted no impairment of goodwill. For 2009, the Company incurred an impairment of goodwill charge of $1,901,000. The Company will continue to conduct goodwill impairment tests as of November 30 of subsequent years, or whenever events or circumstances indicate that interim impairment testing is necessary. The gross carrying value of goodwill at December 31, 2010 and 2009 was $246,340,000 and accumulated amortization at December 31, 2010 and 2009 was $15,566,000. Accumulated impairment losses were $1,901,000 at December 31, 2010 and 2009. During the 2009 fourth quarter, the Company took a $1,901,000 charge for the partial impairment of the goodwill recorded for Osprey Line, L.L.C., a subsidiary that transports project cargoes and cargo containers by barge on the United States inland waterway system. The partial impairment reflected the reduced profitability outlook of the container-on-barge operations due to the economic environment at that time. The fair value was determined using a combination of a discounted cash flow methodology and a market based approach utilizing net earnings before interest expense, taxes on income, depreciation and amortization ("EBITDA") multiplier. Net goodwill for the marine transportation segment was $153,870,000 at December 31, 2010 and 2009. Net goodwill for the diesel engine services segment was $75,003,000 at December 31, 2010 and 2009. Revenue Recognition. The majority of marine transportation revenue is derived from term contracts, ranging from one to five years, with renewal options, and the remainder is from spot market movements. The majority of the term contracts are for terms of one year. The Company is a provider of marine transportation services for its customers and, in almost all cases, does not assume ownership of the products it transports. A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate or at a daily rate. The rate may or may not escalate during the term of the contract, however, the base rate generally remains constant and contracts often include escalation provisions to recover changes in specific costs such as fuel. A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current "market" rate, including fuel, and are subject to market volatility. The Company uses a voyage accounting method of revenue recognition for its marine transportation revenues which allocates voyage revenue based on the percent of the voyage completed during the period. There is no difference in the recognition of revenue between a term contract and a spot contract. Diesel engine service products and services are generally sold based upon purchase orders or preferential service agreements with the customer that include fixed or determinable prices and that do not include right of return or significant post delivery performance obligations. Diesel engine parts sales are recognized when title passes upon shipment to customers. Diesel overhauls and repairs revenue are reported on the percentage of completion method of accounting using measurements of progress towards completion appropriate for the work performed. Stock-Based Compensation. The Company has share-based compensation plans covering selected officers and other key employees as well as the Company's Board of Directors. Stock-based grants made under the Company's stock plans are recorded at fair value on the date of the grant and the cost is recognized ratably over the vesting period of the stock option or restricted stock. Stock option grants are valued at the date of grant as calculated under the Black-Scholes option pricing model. The Company's stock-based compensation plans are more fully described in Note 8, Stock Award Plans. Taxes on Income. The Company follows the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Accrued Insurance. Accrued insurance liabilities include estimates based on individual incurred claims outstanding and an estimated amount for losses incurred but not reported ("IBNR") or fully developed based on past experience. Insurance premiums, IBNR losses and incurred claims losses, up to the Company's deductible, for 2010, 2009 and 2008 were $13,461,000, $12,786,000 and $19,130,000, respectively. Noncontrolling Interests. The Company has a majority interest in and is the general partner in several affiliated entities. In situations where losses applicable to the minority interest in the affiliated entities exceed the limited partners' equity capital, such excess and any further loss attributable to the minority interest is charged against the Company's interest in the affiliated entities. If future earnings materialize in the respective affiliated entities, the Company's interest would be credited to the extent of any losses previously absorbed. The Company adopted ASC 810-10-65, "Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51" (formerly SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51") effective January 1, 2009. This standard establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary to improve the relevance, comparability and transparency of the financial information that a reporting entity provides in its consolidated financial statements. Beginning January 1, 2009, the Company has applied the provisions of this standard to its accounting for noncontrolling interests and its financial statement disclosures. The presentation and disclosure provisions of this standard have been applied to all periods presented in the consolidated financial statements. Treasury Stock. The Company follows the average cost method of accounting for treasury stock transactions. Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. The Company reviews long-lived assets and certain identifiable intangibles for impairment by vessel class whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability on marine transportation assets is assessed based on vessel classes, not on individual assets, because identifiable cash flows for individual marine transportation assets are not available. Projecting customer contract volumes allows estimation of future cash flows by projecting pricing and utilization by vessel class but it is not practical to project which individual marine transportation asset will be utilized for any given contract. Because customers do not specify which particular vessel is used, prices are quoted based on vessel classes not individual assets. Nominations of vessels for specific jobs are determined on a day by day basis and are a function of the equipment class required and the geographic position of vessels within that class at that particular time as vessels within a class are interchangeable and provide the same service. Barge vessel classes are based on similar capacities, hull type, and type of product and towboats are based on horsepower. Recoverability of the vessel classes is measured by a comparison of the carrying amount of the assets to future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. *Accounting Standards* In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2010-06, "Improving Disclosures about Fair Value Measurements". ASU 2010-06 requires additional disclosures about fair value measurements including transfers in and out of Levels 1 and 2 as well as the reasons for the transfers and a greater level of disaggregation for each class of assets and liabilities. For the reconciliation of Level 3 fair value measurements, information about purchases, sales, issuances and settlements are presented separately rather than as one net number. This standard is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of revised Level 3 disclosure requirements which are effective for interim and annual reporting periods beginning after December 15, 2010. The Company applied the provisions of this standard to its financial statement disclosures beginning in the first quarter of 2010. In June 2009, the FASB issued FASB No. 168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No. 162" ("SFAS No. 168"). SFAS No. 168 was effective for interim and annual periods ending after September 15, 2009. Under SFAS No. 168, the FASB Accounting Standards Codification (the "Codification" or "ASC") became the source of authoritative U.S. generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification superseded all existing non-SEC accounting and reporting standards at September 15, 2009. All other nongrandfathered non-SEC accounting literature not included in the Codification has become nonauthoritative. SFAS No. 168 has been incorporated in ASC 105, "Generally Accepted Accounting Principles". The Company adopted SFAS No. 168 in the third quarter of 2009 with no effect on the Company's consolidated financial statements except for the change in the referencing of financial accounting standards. The Company adopted a new accounting standard included in ASC 805, "Business Combinations" (formerly SFAS No. 141(R), "Business Combinations") for business combinations beginning in the Company's fiscal year ending December 31, 2009. This standard provides guidance to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects. This standard also establishes principles and requirements for how the acquirer recognizes and measures in its financial statements the identifiable assets acquired, liabilities assumed, goodwill acquired and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. As the Company completed no business acquisitions during 2009, the adoption as of January 1, 2009 had no effect on the Company's consolidated financial statements. The Company adopted the provisions of ASC 820-10, "Fair Value Measurements and Disclosures" (formerly SFAS No. 157, "Fair Value Measurements") with respect to nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually), effective January 1, 2009. ASC 820-10 provides guidance for using fair value to measure assets and liabilities by defining fair value, establishing a framework for measuring fair value and expanding disclosures about fair value measurements. The adoption of ASC 820-10 in the first quarter of 2009 did not have an impact on the Company's consolidated financial statements except that the Company has applied these provisions to its financial statement disclosures. The Company adopted a new accounting standard included in ASC 815, "Derivatives and Hedging" (formerly SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133") effective January 1, 2009. This standard amends and expands derivatives and hedging disclosure requirements with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments; (b) how derivative instruments and related hedged items are accounted for under GAAP and its related interpretations; and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance and cash flows. The Company applied the provisions of this standard to its financial statement disclosures beginning in the first quarter of 2009.

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2010
Acquisitions
Acquisitions	(2) Acquisitions On June 30, 2008, the Company purchased substantially all of the assets of Lake Charles Diesel, Inc. ("Lake Charles Diesel") for $3,680,000 in cash. Lake Charles Diesel was a Gulf Coast high-speed diesel engine services provider operating factory-authorized full service marine dealerships for Cummins, Detroit Diesel and Volvo engines, as well as an authorized marine dealer for Caterpillar engines in Louisiana. On March 18, 2008, the Company purchased six inland tank barges from OFS Marine One, Inc. ("ORIX") for $1,800,000 in cash. The Company had been leasing the barges from ORIX prior to their purchase. Pro forma results of the acquisitions made in 2008 have not been presented as the pro forma revenues, earnings before taxes on income, net earnings attributable to Kirby and net earnings per share attributable to Kirby common stockholders would not be materially different from the Company's actual results.

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Fair Value Measurements

Fair Value Measurements

(3) Fair Value Measurements

The accounting guidance for using fair value to measure certain assets and liabilities establishes a three tier value hierarchy, which prioritizes the inputs to valuation techniques used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little, if any, market data exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing the asset or liability.

The following table summarizes the assets and liabilities measured at fair value on a recurring basis at December 31, 2010 and 2009 (in thousands):


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
December 31, 2010:
Assets:
Derivatives	$	—	$	—	$	—	$	—

Liabilities:
Derivatives	$	—	$	17,576	$	—	$	17,576


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
December 31, 2009:
Assets:
Derivatives	$	—	$	138	$	—	$	138

Liabilities:
Derivatives	$	—	$	15,301	$	—	$	15,301

The fair value of the Company's derivative instruments is more fully described in Note 4, Derivative Instruments.

Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying values that approximate fair value due to the short-term maturity of these financial instruments. The Company is of the opinion that amounts included in the consolidated financial statements for outstanding debt materially represent the fair value of such debt due to their variable interest rates.

Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the table above. These assets are adjusted to fair value when there is evidence of impairment. During the year ended December 31, 2010, there was no indication that the Company's long-lived assets were impaired, and accordingly, measurement at fair value was not required. During 2009, the Company recorded a $1,901,000 impairment charge on goodwill, which was based on fair value measurements classified as Level 3 of the valuation hierarchy. As of December 31, 2009, the implied fair value of this impaired goodwill was $2,703,000.

Fair value is determined using a combination of a discounted cash flow methodology and a market based approach utilizing an EBITDA multiplier. The key inputs used in the determination of fair value include projections of the amounts and timing of future cash flows, an expected growth rate, an estimated discount rate and a terminal value. The key inputs are based on information such as historical performance and anticipated market conditions.

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Derivative Instruments

12 Months Ended

Dec. 31, 2010

Derivative Instruments

Derivative Instruments

(4) Derivative Instruments

The Company recognizes all derivative instruments (including certain derivative instruments embedded in other contracts) at fair value in the balance sheet as either assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception date of a derivative. Special accounting for derivatives qualifying as fair value hedges allows a derivative's gains and losses to offset related results on the hedged item in the statement of earnings. For derivative instruments designated as cash flow hedges, changes in fair value, to the extent the hedge is effective, are recognized in other comprehensive income ("OCI") until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the cumulative difference between the fair value of the derivative contract and the hedged item over time. Any change in fair value resulting from ineffectiveness is recognized immediately in earnings.

Interest Rate Risk Management

From time to time, the Company has utilized and expects to continue to utilize derivative financial instruments with respect to a portion of its interest rate risks to achieve a more predictable cash flow by reducing its exposure to interest rate fluctuations. These transactions generally are interest rate collar and swap agreements and are entered into with large multinational banks. Derivative financial instruments related to the Company's interest rate risks are intended to reduce the Company's exposure to increases in the benchmark interest rates underlying the Company's floating rate senior notes and variable rate bank credit facility.

From time to time, the Company hedges its exposure to fluctuations in short-term interest rates under its variable rate bank credit facility and floating rate senior notes by entering into interest rate collar and swap agreements. The interest rate collar and swap agreements are designated as cash flow hedges, therefore, the changes in fair value, to the extent the collar and swap agreements are effective, are recognized in OCI until the hedged interest expense is recognized in earnings. The swap agreements effectively convert the Company's interest rate obligation on the Company's variable rate senior notes from quarterly floating rate payments based on the London Interbank Offered Rate ("LIBOR") to quarterly fixed rate payments. As of December 31, 2010, the Company had a total notional amount of $200,000,000 of interest rate swaps designated as cash flow hedges for its variable rate senior notes as follows (dollars in thousands):


Notional Amount	Effective date	Termination date	Fixed pay rate			Receive rate
$100,000	March 2006	February 2013		5.45	%	Three-month LIBOR
$50,000	November 2008	February 2013		3.50	%	Three-month LIBOR
$50,000	May 2009	February 2013		3.795	%	Three-month LIBOR

Foreign Currency Risk Management

From time to time, the Company has utilized and expects to continue to utilize derivative financial instruments with respect to its forecasted foreign currency transactions to attempt to reduce the risk of its exposure to foreign currency rate fluctuations in its transactions denominated in foreign currency. These transactions, which relate to foreign currency obligations for the purchase of equipment from foreign suppliers or foreign currency receipts from foreign customers, generally are forward contracts or purchased call options and are entered into with large multinational banks.

As of December 31, 2010, the Company has forward contracts with notional amounts aggregating $13,978,000 to hedge its exposure to foreign currency rate fluctuations in expected foreign currency transactions. These contracts expire on various dates beginning in the second quarter of 2011 and ending in the first quarter of 2014. These forward contracts are designated as cash flow hedges, therefore, the changes in fair value, to the extent the forward contracts are effective, are recognized in OCI until the forward contracts expire and are recognized in cost of sales and operating expenses.

As of December 31, 2009, the Company had purchased Euro call options with a 1.28 strike price in the amount of 264,090 Euros that matured on March 1, 2010 and 528,180 Euros that matured on December 1, 2010. The purchased call options were designated as cash flow hedges, therefore, the changes in fair value, to the extent the purchased call options agreements were effective, were recognized in OCI until the purchased call options expired and then were recognized in cost of sales and operating expenses.

Fair Value of Derivative Instruments

The following table sets forth the fair value of the Company's derivative instruments recorded as assets located on the consolidated balance sheet at December 31, 2010 and 2009 (in thousands):


Asset Derivatives	Balance Sheet Location	2010		2009
Derivatives designated as hedging instruments under ASC 815:
Foreign currency contracts	Prepaid expenses and other current assets	$	—	$	138

Total derivatives designated as hedging instruments under ASC 815		$	—	$	138

Total asset derivatives		$	—	$	138

The following table sets forth the fair value of the Company's derivative instruments recorded as liabilities located on the consolidated balance sheet at December 31, 2010 and 2009 (in thousands):


Liability Derivatives	Balance Sheet Location	2010		2009
Derivatives designated as hedging instruments under ASC 815:
Foreign currency contracts	Other accrued liabilities	$	798	$	—
Foreign currency contracts	Other long-term liabilities		569		—
Interest rate contracts	Other long-term liabilities		16,209		15,301

Total derivatives designated as hedging instruments under ASC 815		$	17,576	$	15,301

Total liability derivatives		$	17,576	$	15,301

Fair value amounts were derived as of December 31, 2010 and 2009 utilizing fair value models of the Company and its counterparties on the Company's portfolio of derivative instruments. These fair value models use the income approach that relies on inputs such as yield curves, currency exchange rates and forward prices. The fair value of the Company's derivative instruments is described above in Note 3, Fair Value Measurements.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Any ineffectiveness related to the Company's hedges was not material for any of the periods presented.

The following table sets forth the location and amount of gains and losses on the Company's derivative instruments in the consolidated statements of earnings for the years ended December 31, 2010, 2009 and 2008 (in thousands):


Derivatives in ASC 815 Cash Flow Hedging Relationships:	Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
		2010			2009			2008
Interest rate contracts	Interest expense	$	(908	)	$	5,701		$	(14,514	)
Foreign exchange contracts	Cost of sales and operating expenses		(1,419	)		(51	)		73

Total		$	(2,327	)	$	5,650		$	(14,441	)


Derivatives in ASC 815 Cash Flow Hedging Relationships:	Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
		2010			2009			2008
Interest rate contracts	Interest expense	$	(8,529	)	$	(7,356	)	$	(3,404	)
Foreign exchange contracts	Cost of sales and operating expenses		(411	)		—			—

Total		$	(8,940	)	$	(7,356	)	$	(3,404	)

The Company anticipates $5,210,000 of net losses on interest rate swap agreements included in accumulated OCI will be transferred into earnings over the next year based on current interest rates. Gains or losses on interest rate swap agreements offset increases or decreases in rates of the underlying debt, which results in a fixed rate for the underlying debt. The Company also expects $798,000 of net losses on foreign currency contracts included in accumulated OCI will be transferred into earnings over the next year based on current spot rates.

Long-Term Debt

12 Months Ended

Dec. 31, 2010

Long-Term Debt

Long-Term Debt

(5) Long-Term Debt

Long-term debt at December 31, 2010 and 2009 consisted of the following (in thousands):


	2010		2009
Long-term debt, including current portion:
$250,000,000 revolving credit facility due November 9, 2015	$	—	$	—
Senior notes due February 28, 2013		200,000		200,000
Other long-term debt		134		239

	$	200,134	$	200,239

The aggregate payments due on the long-term debt in each of the next five years were as follows (in thousands):


2011	$	128
2012		6
2013		200,000
2014		—
2015		—
Thereafter		—

	$	200,134

The Company has an unsecured revolving credit facility ("Revolving Credit Facility") with a syndicate of banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank, with a maturity date of November 9, 2015. The Revolving Credit Facility allows for an increase in the commitments of the banks from $250,000,000 up to a maximum of $325,000,000, subject to the consent of each bank that elects to participate in the increased commitment. The unsecured Revolving Credit Facility has a variable interest rate based on LIBOR or an Alternate Base Rate, meaning the highest of the administrative agent's prime rate, the Federal Funds Rate plus 0.5% and one month LIBOR plus 1.0%. The variable interest rate spread varies with the Company's senior debt rating. The variable interest rate spread is currently 2.0% over LIBOR for LIBOR loans and 1.0% over the Alternate Base Rate for Alternate Base Rate loans. The commitment fee is currently .30%. The Revolving Credit Facility contains certain restrictive financial covenants including an interest coverage ratio and a debt-to-capitalization ratio. In addition to financial covenants, the Revolving Credit Facility contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates and changes in lines of business. Borrowings under the Revolving Credit Facility may be used for general corporate purposes, the purchase of existing or new equipment, the purchase of the Company's common stock, or for business acquisitions. As of December 31, 2010, the Company was in compliance with all Revolving Credit Facility covenants and had no borrowings outstanding under the Revolving Credit Facility during any portion of the 2010 year. The Revolving Credit Facility includes a $25,000,000 commitment which may be used for standby letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $11,000 as of December 31, 2010.

The Company has $200,000,000 of unsecured floating rate senior notes ("Senior Notes") due February 28, 2013. The Senior Notes pay interest quarterly at a rate equal to LIBOR plus a margin of 0.5%. The Senior Notes are callable, at the Company's option, at par. No principal payments are required until maturity in February 2013. As of December 31, 2010, $200,000,000 was outstanding under the Senior Notes and the 2010 average interest rate was 0.9%, computed by dividing the interest expense under the Senior Notes by the average Senior Notes borrowings of $200,000,000. The Company was in compliance with all Senior Notes covenants at December 31, 2010.

The Company has a $5,000,000 line of credit ("Credit Line") with Bank of America, N.A. ("Bank of America") for short-term liquidity needs and letters of credit with a maturity date of June 30, 2011. The Credit Line allows the Company to borrow at an interest rate agreed to by Bank of America and the Company at the time each borrowing is made or continued. The Company did not have any borrowings outstanding under the Credit Line as of December 31, 2010. Outstanding letters of credit under the Credit Line were $3,964,000 as of December 31, 2010.

The Company is of the opinion that the amounts included in the consolidated financial statements for outstanding debt materially represent the fair value of such debt at December 31, 2010 and 2009 due to their variable interest rates.

Taxes on Income

12 Months Ended

Dec. 31, 2010

Taxes on Income

Taxes on Income

(6) Taxes on Income

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2010, 2009 and 2008 were as follows (in thousands):


	2010		2009		2008
Earnings before taxes on income — United States	$	189,640	$	205,558	$	255,917

Provision for taxes on income:
Federal:
Current	$	33,014	$	30,443	$	55,077
Deferred		30,643		38,404		31,928
State and local		8,601		9,173		10,439

	$	72,258	$	78,020	$	97,444

During the three years ended December 31, 2010, 2009 and 2008, tax benefits related to the exercise of stock options and the issuance of restricted stock that were allocated directly to additional paid-in capital were $373,000, $1,013,000 and $8,930,000, respectively.

The Company's provision for taxes on income varied from the statutory federal income tax rate for the years ended December 31, 2010, 2009 and 2008 due to the following:


	2010			2009			2008
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		2.9			2.9			2.7
Non-deductible items		.2			.1			.4

		38.1	%		38.0	%		38.1	%

The tax effects of temporary differences that give rise to significant portions of the current deferred tax assets and non-current deferred tax assets and liabilities at December 31, 2010 and 2009 were as follows (in thousands):


	2010			2009
Current deferred tax assets:
Compensated absences	$	518		$	572
Allowance for doubtful accounts		1,400			1,580
Insurance accruals		2,319			3,042
Other		2,181			2,272

	$	6,418		$	7,466

Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	3,548		$	3,603
Insurance accruals		876			959
Deferred compensation		7,456			7,568
Unrealized loss on derivative financial instruments		6,162			5,347
Unrealized loss on defined benefit plans		12,582			11,643
Operating loss carryforwards		1,023			1,486
Other		9,177			8,037

		40,824			38,643

Deferred tax liabilities:
Property		(234,732	)		(205,696	)
Deferred state taxes		(22,571	)		(18,972	)
Pension benefits		(8,738	)		(8,082	)
Goodwill and other intangibles		(5,538	)		(5,465	)
Other		(1,020	)		(825	)

		(272,599	)		(239,040	)

	$	(231,775	)	$	(200,397	)

The Company has determined that it is more likely than not that all deferred tax assets at December 31, 2010 will be realized, including its operating loss carryforward of $1,023,000 that expires in 2026.

The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state jurisdictions. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the 2007 through 2009 tax years. With few exceptions, the Company and its subsidiaries' state income tax returns are open to audit under the statute of limitations for the 2004 through 2009 tax years.

As of December 31, 2010, the Company has provided a liability of $3,081,000 for unrecognized tax benefits related to various income tax issues which includes interest and penalties. The amount that would impact the Company's effective tax rate, if recognized, is $2,073,000, with the difference between the total amount of unrecognized tax benefits and the amount that would impact the effective tax rate being primarily related to the federal tax benefit of state income tax items. It is not reasonably possible to determine if the liability for unrecognized tax benefits will significantly change prior to December 31, 2011 due to the uncertainty of possible examination results.

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits for the years ended December 31, 2010, 2009 and 2008, is as follows (in thousands):


	2010			2009			2008
Balance at beginning of year	$	2,290		$	2,451		$	2,639
Additions based on tax positions related to the current year		279			417			569
Additions for tax positions of prior years		84			87			301
Reductions for tax positions of prior years		(443	)		(665	)		(601	)
Settlements		(122	)		—			(457	)

Balance at end of year	$	2,088		$	2,290		$	2,451

The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes. The Company recognized net expense (income) of $43,000, $(221,000) and $(336,000) in interest and penalties for the years ended December 31, 2010, 2009 and 2008, respectively. The Company had $993,000, $964,000 and $1,247,000 of accrued liabilities for the payment of interest and penalties at December 31, 2010, 2009 and 2008, respectively.

Leases

12 Months Ended

Dec. 31, 2010

Leases

Leases

(7) Leases

The Company and its subsidiaries currently lease various facilities and equipment under a number of cancelable and noncancelable operating leases. Lease agreements for tank barges have terms from one to seven years expiring at various dates through 2016. Lease agreements for towboats chartered by the Company have terms from 30 days to five years expiring at various dates through 2013; however, the majority of the towboat charter agreements are for terms of one year or less. Total rental expense for the years ended December 31, 2010, 2009 and 2008 was as follows (in thousands):


	2010		2009		2008
Rental expense:
Marine equipment — tank barges	$	9,075	$	9,489	$	6,684
Marine equipment — towboats		79,016		81,453		116,933
Other buildings and equipment		5,334		5,240		5,134

Rental expense	$	93,425	$	96,182	$	128,751

Future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2010 were as follows (in thousands):


	Land, Buildings and Equipment		Marine Equipment
	Land, Buildings and Equipment		Tank Barges		Towboats		Total
2011	$	5,108	$	8,630	$	28,811	$	42,549
2012		4,608		7,516		14,022		26,146
2013		4,062		6,260		7,118		17,440
2014		3,505		4,980		—		8,485
2015		3,292		3,930		—		7,222
Thereafter		6,723		461		—		7,184

	$	27,298	$	31,777	$	49,951	$	109,026

Stock Award Plans

12 Months Ended

Dec. 31, 2010

Stock Award Plans

Stock Award Plans

(8) Stock Award Plans

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company's stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the years ended December 31, 2010, 2009 and 2008 were as follows (in thousands):


	2010		2009		2008
Compensation cost	$	10,867	$	9,855	$	9,258
Income tax benefit	$	4,162	$	3,775	$	3,546

The Company has two employee stock award plans for selected officers and other key employees which provide for the issuance of stock options and restricted stock. For both of the plans, the exercise price for each option equals the fair market value per share of the Company's common stock on the date of grant. The terms of the options prior to January 25, 2010 are five years and vest ratably over three years. Options granted on or after January 25, 2010 have terms of seven years and vest ratably over three years. At December 31, 2010, 1,457,516 shares were available for future grants under the employee plans and no outstanding stock options under the employee plans were issued with stock appreciation rights.

The following is a summary of the stock option activity under the employee plans described above for the years ended December 31, 2010, 2009 and 2008:


	Outstanding Non-Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2007		930,450		$	23.48
Granted		178,495		$	46.64
Exercised		(594,764	)	$	20.22
Canceled or expired		—		$	—

Outstanding at December 31, 2008		514,181		$	35.28
Granted		228,246		$	23.98
Exercised		(101,944	)	$	21.86
Canceled or expired		—		$	—

Outstanding at December 31, 2009		640,483		$	33.39
Granted		103,999		$	32.60
Exercised		(228,543	)	$	28.36
Canceled or expired		(81,492	)	$	45.73

Outstanding at December 31, 2010		434,447		$	33.53

Under the employee plans, stock options exercisable were 200,210, 262,488 and 148,698 at December 31, 2010, 2009 and 2008, respectively.

The following table summarizes information about the Company's outstanding and exercisable stock options under the employee plans at December 31, 2010:


	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Aggregated Intrinsic Value		Number Exercisable		Weighted Average Exercise Price		Aggregated Intrinsic Value
$23.98 — $27.60		157,387		2.62	$	24.54				64,552	$	25.36
$31.35 — $34.40		119,999		5.55	$	32.78				13,333	$	34.40
$35.66 — $36.94		64,858		1.39	$	35.78				60,858	$	35.74
$48.00 — $48.65		92,203		2.11	$	48.28				61,467	$	48.28

$23.98 — $48.65		434,447		3.14	$	33.53	$	4,568,000		200,210	$	36.16	$	1,581,000

The following is a summary of the restricted stock award activity under the employee plans described above for the years ended December 31, 2010, 2009 and 2008:


	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2007		493,418		$	27.48
Granted		172,432		$	43.57
Vested		(156,580	)	$	28.35
Forfeited		(6,452	)	$	33.46

Nonvested balance at December 31, 2008		502,818		$	33.64
Granted		263,579		$	24.70
Vested		(207,106	)	$	36.60
Forfeited		(16,612	)	$	32.70

Nonvested balance at December 31, 2009		542,679		$	30.70
Granted		197,994		$	33.42
Vested		(234,831	)	$	39.34
Forfeited		(6,507	)	$	32.00

Nonvested balance at December 31, 2010		499,335		$	31.98

The Company has two director stock award plans for nonemployee directors of the Company which provide for the issuance of stock options and restricted stock. No additional options can be granted under one of the plans. The 2000 Director Plan provides for the automatic grants of stock options and restricted stock to nonemployee directors on the date of first election as a director and after each annual meeting of stockholders. In addition, the 2000 Director Plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plans are equal to the fair market value per share of the Company's common stock on the date of grant. The terms of the options are ten years. The options granted when first elected a director vest immediately. The options granted and restricted stock issued after each annual meeting of stockholders vest six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At December 31, 2010, 324,766 shares were available for future grants under the 2000 Director Plan. The director stock award plans are intended as an incentive to attract and retain qualified and competent independent directors.

The following is a summary of the stock option activity under the director plans described above for the years ended December 31, 2010, 2009 and 2008:


	Outstanding Non-Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2007		304,342		$	21.66
Granted		69,298		$	55.49
Exercised		(64,068	)	$	13.43

Outstanding at December 31, 2008		309,572		$	30.94
Granted		50,433		$	29.60
Exercised		(46,068	)	$	11.85
Forfeited		(12,000	)	$	35.99

Outstanding at December 31, 2009		301,937		$	33.43
Granted		57,492		$	41.24
Exercised		(3,000	)	$	10.67

Outstanding at December 31, 2010		356,429		$	34.88

Under the director plans, options exercisable were 355,555, 301,328 and 309,247 at December 31, 2010, 2009 and 2008, respectively.

The following table summarizes information about the Company's outstanding and exercisable stock options under the director plans at December 31, 2010:


	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
$10.06 — $12.69		31,356		1.05	$	11.10				31,356	$	11.10
$15.74 — $29.60		102,247		5.66	$	23.75				102,247	$	23.75
$35.17 — $36.82		96,036		5.70	$	35.81				96,036	$	35.81
$41.24 — $55.49		126,790		8.23	$	49.03				125,916	$	49.08

$10.06 — $55.49		356,429		6.18	$	34.88	$	3,269,000		355,555	$	34.86	$	3,267,000

The following is a summary of the restricted stock award activity under the director plan described above for the years ended December 31, 2010, 2009 and 2008:


	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2007		784		$	36.86
Granted		9,557		$	56.00
Vested		(9,951	)	$	54.49

Nonvested balance at December 31, 2008		390		$	56.00
Granted		10,919		$	29.77
Vested		(10,577	)	$	30.74

Nonvested balance at December 31, 2009		732		$	29.77
Granted		11,097		$	41.33
Vested		(11,304	)	$	40.58

Nonvested balance at December 31, 2010		525		$	41.33

The total intrinsic value of all stock options exercised under all of the Company's plans was $2,835,000, $1,859,000 and $17,827,000 for the years ended December 31, 2010, 2009 and 2008, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $1,086,000, $712,000 and $6,828,000 for the years ended December 31, 2010, 2009 and 2008, respectively.

The total intrinsic value of all the restricted stock vestings under all of the Company's plans was $8,809,000, $5,931,000 and $7,187,000 for the years ended December 31, 2010, 2009 and 2008, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $3,374,000, $2,271,000 and $2,753,000 for the years ended December 31, 2010, 2009 and 2008, respectively.

As of December 31, 2010, there was $1,326,000 of unrecognized compensation cost related to nonvested stock options and $11,237,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.7 years and restricted stock over approximately 2.7 years. The total fair value of stock options vested was $3,491,000, $2,763,000 and $3,346,000 during the years ended December 31, 2010, 2009 and 2008, respectively. The fair value of the restricted stock vested was $8,809,000, $5,931,000 and $7,187,000 for the years ended December 31, 2010, 2009 and 2008, respectively.

The weighted average per share fair value of stock options granted during the years ended December 31, 2010, 2009 and 2008 was $13.81, $8.15 and $14.95, respectively. The fair value of the stock options granted during the years ended December 31, 2010, 2009 and 2008 was $2,231,000, $2,271,000 and $3,705,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the stock options during the years ended December 31, 2010, 2009 and 2008 were as follows:


	2010	2009	2008
Dividend yield	None	None	None
Average risk-free interest rate	3.1%	1.9%	3.0%
Stock price volatility	33%	33%	26%
Estimated option term	Six years or seven years	Four years or eight years	Four years or nine years

Retirement Plans

12 Months Ended

Dec. 31, 2010

Retirement Plans

Retirement Plans

(9) Retirement Plans

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

The fair value of plan assets was $152,696,000 and $126,490,000 at December 31, 2010 and 2009, respectively. As of December 31, 2010 and 2009, these assets were allocated among asset categories as follows:


Asset Category	2010			2009			Current Minimum, Target and Maximum Allocation Policy
U.S. equity securities		50	%		56	%	30% — 50% — 70%
International equity securities		20	%		17	%	0% — 20% — 30%
Debt securities		29	%		23	%	15% — 30% — 55%
Cash and cash equivalents		1	%		4	%	0% — 0% — 5%

		100	%		100	%

The plan assets are invested entirely in common collective trusts. These instruments are public investment vehicles valued using the net asset value provided by the administrator of the fund. The net asset value is classified within Level 2 of the valuation hierarchy as set forth in the accounting guidance for fair value measurements because the net asset value price is quoted on an inactive private market although the underlying investments are traded on an active market.

The Company's investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income). The primary objective in the investment management of assets is to achieve long-term growth of principal while avoiding excessive risk. Risk is managed through diversification of investments within and among asset classes, as well as by choosing securities that have an established trading and underlying operating history.

The Company makes various assumptions when determining defined benefit plan costs including, but not limited to, the current discount rate and the expected long-term return on plan assets. Discount rates are determined annually and are based on a yield curve that consists of a hypothetical portfolio of high quality corporate bonds with maturities matching the projected benefit cash flows. The Company assumed that plan assets would generate a long-term rate of return of 7.5% in 2010 and 2009. The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants comparing historical returns for various asset classes with its actual and targeted plan investments. The Company believes that its long-term asset allocation, on average, will approximate the targeted allocation.

The Company's pension plan funding strategy has historically been to contribute an amount equal to the greater of the minimum required contribution under ERISA or the amount necessary to fully fund the plan on an accumulated benefit obligation basis ("ABO") at the end of the fiscal year. The ABO is based on a variety of demographic and economic assumptions, and the pension plan assets' returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult.

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

The following table presents the change in benefit obligation and plan assets for the Company's defined benefit plans and postretirement benefit plan (in thousands):


													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2010			2009			2010			2009			2010			2009
Change in benefit obligation
Benefit obligation at beginning of year	$	141,338		$	135,337		$	1,429		$	1,431		$	5,459		$	5,448
Service cost		6,883			6,523			—			—			—			246
Interest cost		9,399			8,486			84			84			154			322
Actuarial loss (gain)		17,124			(5,761	)		101			14			(3,108	)		(141	)
Plan amendments		—			—			—			—			519			—
Gross benefits paid		(4,002	)		(3,247	)		(103	)		(100	)		(249	)		(434	)
Less: federal subsidy on benefits paid		—			—			—			—			15			18

Benefit obligation at end of year	$	170,742		$	141,338		$	1,511		$	1,429		$	2,790		$	5,459

Accumulated benefit obligation at end of year	$	141,666		$	118,041		$	1,511		$	1,429		$	—		$	—

Weighted-average assumption used to determine benefit obligation at end of year
Discount rate		5.5	%		6.1	%		5.5	%		6.1	%		5.5	%		6.1	%
Rate of compensation increase		4.25	%		4.0	%		—			—			—			—
Health care cost trend rate
Initial rate		—			—			—			—			8.0	%		7.5	%
Ultimate rate		—			—			—			—			5.0	%		5.0	%
Years to ultimate		—			—			—			—			2017			2015
Effect of one-percentage-point change in assumed health care cost trend rate on postretirement obligation
Increase	$	—		$	—		$	—		$	—		$	223		$	218
Decrease		—			—			—			—			(196	)		(195	)
Change in plan assets
Fair value of plan assets at beginning of year	$	126,490		$	99,722		$	—		$	—		$	—		$	—
Actual return on plan assets		18,308			30,015			—			—			—			—
Employer contribution		11,900			—			103			100			249			434
Gross benefits paid		(4,002	)		(3,247	)		(103	)		(100	)		(249	)		(434	)

Fair value of plan assets at end of year	$	152,696		$	126,490		$	—		$	—		$	—		$	—

The following table presents the funded status and amounts recognized in the Company's consolidated balance sheet for the Company's defined benefit plans and postretirement benefit plan at December 31, 2010 and 2009 (in thousands):


													Other Postretirement Benefits
	Pension Benefits												Postretirement
	Pension Plan						SERP						Welfare Plan
	2010			2009			2010			2009			2010			2009
Funded status at end of year
Fair value of plan assets	$	152,696		$	126,490		$	—		$	—		$	—		$	—
Benefit obligations		170,742			141,338			1,511			1,429			2,790			5,459

Funded status and amount recognized at end of year	$	(18,046	)	$	(14,848	)	$	(1,511	)	$	(1,429	)	$	(2,790	)	$	(5,459	)

Amounts recognized in the consolidated balance sheets
Current liability	$	—		$	—		$	(102	)	$	(102	)	$	(246	)	$	(323	)
Long-term liability		(18,046	)		(14,848	)		(1,409	)		(1,327	)		(2,544	)		(5,136	)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	$	43,048		$	38,065		$	293		$	193		$	(7,523	)	$	(5,064	)
Prior service cost (credit)		(38	)		(127	)		—			—			158			198

Accumulated other compensation income	$	43,010		$	37,938		$	293		$	193		$	(7,365	)	$	(4,866	)

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2010 and 2009 were as follows (in thousands):


	Pension Benefits
	Pension Plan				SERP
	2010		2009		2010		2009
Projected benefit obligation in excess of plan assets
Projected benefit obligation at end of year	$	170,742	$	141,338	$	1,511	$	1,429
Fair value of plan assets at end of year		152,696		126,490		—		—

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2010 and 2009 were as follows (in thousands):


	Pension Benefits
	Pension Plan				SERP
	2010		2009		2010		2009
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation at end of year	$	—	$	—	$	1,511	$	1,429
Accumulated benefit obligation at end of year		—		—		1,511		1,429
Fair value of plan assets at end of year		—		—		—		—

The following tables presents the expected cash flows for the Company's defined benefit plans and postretirement benefit plan at December 31, 2010 and 2009 (in thousands):


									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2010		2009		2010		2009		2010			2009
Expected employer contributions
First year	$	—	$	—	$	102	$	102	$	246		$	323

									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2010		2009		2010		2009		2010			2009
Expected benefit payments (gross)
2011	$	4,639	$	4,240	$	102	$	102	$	262		$	341
2012		5,058		4,551		100		101		261			378
2013		5,480		4,816		99		99		253			355
2014		5,997		5,105		97		98		257			361
2015		6,524		5,487		95		96		258			371
Next five years		42,703		35,121		558		489		1,274			2,186
									Other Postretirement Benefits
	Pension Benefits								Postretirement
	Pension Plan				SERP				Welfare Plan
	2010		2009		2010		2009		2010			2009
Expected federal subsidy
2011	$	—	$	—	$	—	$	—	$	(16	)	$	(18	)
2012		—		—		—		—		(16	)		(18	)
2013		—		—		—		—		(16	)		(19	)
2014		—		—		—		—		(16	)		(19	)
2015		—		—		—		—		(16	)		(19	)
Next five years		—		—		—		—		(74	)		(85	)

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company's defined benefit plans for the years ended December 31, 2010, 2009 and 2008 were as follows (in thousands):


	Pension Benefits
	Pension Plan									SERP
	2010			2009			2008			2010			2009			2008
Components of net periodic benefit cost
Service cost	$	6,883		$	6,523		$	6,361		$	—		$	—		$	—
Interest cost		9,399			8,486			7,734			84			84			88
Expected return on plan assets		(9,329	)		(7,333	)		(8,165	)		—			—			—
Amortization:
Actuarial loss		3,162			5,666			1,809			2			2			5
Prior service credit		(89	)		(88	)		(89	)		—			—			—

Net periodic benefit cost		10,026			13,254			7,650			86			86			93

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Current year actuarial loss (gain)		8,145			(28,443	)		41,932			102			14			189
Recognition of actuarial loss		(3,162	)		(5,666	)		(1,809	)		(2	)		(2	)		(5	)
Recognition of prior service credit		89			88			89			—			—			—

Total recognized in other comprehensive income		5,072			(34,021	)		40,212			100			12			184

Total recognized in net periodic benefit cost and other comprehensive income	$	15,098		$	(20,767	)	$	47,862		$	186		$	98		$	277

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		6.1	%		6.1	%		6.1	%		6.1	%		6.1	%		6.1	%
Expected long-term rate of return on plan assets		7.5	%		7.5	%		8.0	%		—			—			—
Rate of compensation increase		4.0	%		4.0	%		4.1	%		—			—			—

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2011 are as follows (in thousands):


	Pension Benefits
	Pension Plan			SERP
Actuarial loss	$	2,774		$	7
Prior service credit		(38	)		—

	$	2,736		$	7

The components of net periodic benefit cost and other changes in benefit obligations recognized in other comprehensive income for the Company's postretirement benefit plan for the years ended December 31, 2010, 2009 and 2008 were as follows (in thousands):


	Other Postretirement Benefits
	Postretirement Welfare Plan
	2010			2009			2008
Components of net periodic benefit cost
Service cost	$	—		$	246		$	506
Interest cost		154			322			496
Amortization:
Actuarial gain		(660	)		(325	)		(98	)
Prior service cost		560			40			40

Net periodic benefit cost		54			283			944

Other changes in benefit obligations recognized in other comprehensive income
Current year actuarial gain		(3,109	)		(141	)		(2,835	)
Recognition of actuarial gain		660			325			98
Recognition of prior service cost		(40	)		(40	)		(40	)
Adjustment for actual Medicare Part D reimbursement		(10	)		—			—

Total recognized in other comprehensive income		(2,499	)		144			(2,777	)

Total recognized in net periodic benefit cost and other comprehensive income	$	(2,445	)	$	427		$	(1,833	)

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		6.1	%		6.1	%		6.1	%
Health care cost trend rate
Initial rate		7.5	%		8.0	%		8.5	%
Ultimate rate		5.0	%		5.0	%		5.0	%
Years to ultimate		2015			2015			2015
Effect of one-percentage-point change in assumed health care cost trend rate on aggregate service and interest cost
Increase	$	14		$	12		$	14
Decrease		(12	)		(11	)		(13	)

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2011 are as follows (in thousands):


	Other Postretirement Benefits
	Postretirement Welfare Plan
Actuarial gain	$	(590	)
Prior service cost		40

	$	(550	)

In addition to the defined benefit plan and postretirement medical benefit plan, the Company sponsors defined contribution plans for all shore-based employees and certain vessel personnel. Maximum contributions to these plans equal the lesser of 15% of the aggregate compensation paid to all participating employees or up to 20% of each subsidiary's earnings before federal income tax after certain adjustments for each fiscal year. The aggregate contributions to the plans were $12,057,000, $13,682,000 and $15,483,000 in 2010, 2009 and 2008, respectively.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Earnings Per Share

12 Months Ended

Dec. 31, 2010

Earnings Per Share

Earnings Per Share

(10) Earnings Per Share

The Company adopted a new accounting standard in 2009 included in ASC 260, "Earnings Per Share" which requires unvested share-based payment awards with non-forfeitable rights to receive dividends or dividend equivalents (whether paid or unpaid) to be considered participating securities for the purposes of applying the two-class method of calculating earnings per share. Accordingly, shares of restricted stock granted under the Company's stock-based compensation plans are treated as participating securities under the two-class method of determining earnings per share and earnings per share for prior periods have been restated to conform to this standard. The adoption of this standard lowered basic earnings per share by $.02 for the year ended December 31, 2008.

The following table presents the components of basic and diluted earnings per share for the years ended December 31, 2010, 2009 and 2008 (in thousands, except per share amounts):


	2010			2009			2008
Net earnings attributable to Kirby	$	116,249		$	125,941		$	157,168
Undistributed earnings allocated to restricted shares		(1,125	)		(1,403	)		(1,484	)

Income available to Kirby common stockholders — basic		115,124			124,538			155,684
Undistributed earnings allocated to restricted shares		1,125			1,403			1,484
Undistributed earnings reallocated to restricted shares		(1,122	)		(1,400	)		(1,476	)

Income available to Kirby common stockholders — diluted	$	115,127		$	124,541		$	155,692

Shares outstanding:
Weighted average common stock issued and outstanding		53,852			53,791			53,745
Weighted average unvested restricted stock		(521	)		(599	)		(507	)

Weighted average common stock outstanding — basic		53,331			53,192			53,238
Dilutive effect of stock options		135			121			275

Weighted average common stock outstanding — diluted		53,466			53,313			53,513

Net earnings per share attributable to Kirby common stockholders:
Basic	$	2.16		$	2.34		$	2.92

Diluted	$	2.15		$	2.34		$	2.91

Certain outstanding options to purchase approximately 114,000, 248,000 and 402,000 shares of common stock were excluded in the computation of diluted earnings per share as of December 31, 2010, 2009 and 2008, respectively, as such stock options would have been antidilutive.

Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2010

Quarterly Results (Unaudited)

Quarterly Results (Unaudited)

(11) Quarterly Results (Unaudited)

The unaudited quarterly results for the year ended December 31, 2010 were as follows (in thousands, except per share amounts):


	Three Months Ended
	March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010
Revenues	$	268,253		$	273,669		$	281,317		$	286,318
Costs and expenses		225,196			223,018			228,590			232,631
Gain (loss) on disposition of assets		(44	)		(19	)		8			(23	)

Operating income		43,013			50,632			52,735			53,664
Other income		12			30			131			383
Interest expense		(2,668	)		(2,697	)		(2,750	)		(2,845	)

Earnings before taxes on income		40,357			47,965			50,116			51,202
Provision for taxes on income		(15,446	)		(18,322	)		(19,211	)		(19,279	)

Net earnings		24,911			29,643			30,905			31,923
Less: Net earnings attributable to noncontrolling interests		(237	)		(375	)		(218	)		(303	)

Net earnings attributable to Kirby	$	24,674		$	29,268		$	30,687		$	31,620

Net earnings per share attributable to Kirby common stockholders:
Basic	$	.46		$	.54		$	.57		$	.59

Diluted	$	.46		$	.54		$	.57		$	.59

The unaudited quarterly results for the year ended December 31, 2009 were as follows (in thousands, except per share amounts):


	Three Months Ended
	March 31, 2009			June 30, 2009			September 30, 2009			December 31, 2009
Revenues	$	277,661		$	272,743		$	272,166		$	259,588
Costs and expenses		229,265			215,156			213,053			209,733
Gain (loss) on disposition of assets		244			120			753			(38	)

Operating income		48,640			57,707			59,866			49,817
Other income		95			91			189			233
Interest expense		(2,813	)		(2,793	)		(2,781	)		(2,693	)

Earnings before taxes on income		45,922			55,005			57,274			47,357
Provision for taxes on income		(17,458	)		(21,020	)		(21,826	)		(17,716	)

Net earnings		28,464			33,985			35,448			29,641
Less: Net earnings attributable to noncontrolling interests		(458	)		(266	)		(434	)		(439	)

Net earnings attributable to Kirby	$	28,006		$	33,719		$	35,014		$	29,202

Net earnings per share attributable to Kirby common stockholders:
Basic	$	.52		$	.63		$	.65		$	.54

Diluted	$	.52		$	.63		$	.65		$	.54

Quarterly basic and diluted earnings per share may not total to the full year per share amounts, as the weighted average number of shares outstanding for each quarter fluctuates as a result of the assumed exercise of stock options.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Contingencies and Commitments	12 Months Ended
Contingencies and Commitments	Dec. 31, 2010
Contingencies and Commitments
Contingencies and Commitments	(12) Contingencies and Commitments In 2000, the Company and a group of approximately 45 other companies were notified that they are Potentially Responsible Parties ("PRPs") under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") with respect to a Superfund site, the Palmer Barge Line Superfund Site ("Palmer"), located in Port Arthur, Texas. In prior years, Palmer had provided tank barge cleaning services to various subsidiaries of the Company. The Company and three other PRPs entered into an agreement with the United States Environmental Protection Agency ("EPA") to perform a remedial investigation and feasibility study and, subsequently, a limited remediation was performed and is now complete. During the 2007 third quarter, five new PRPs entered into an agreement with the EPA in regards to the Palmer site. In July 2008, the EPA sent a letter to approximately 30 PRPs for the Palmer site, including the Company, indicating that it intends to pursue recovery of $2,949,000 of costs it incurred in relation to the site. The Company and the other PRPs continue to discuss suggested pro rata allocations of all PRPs with the EPA and the U.S. Department of Justice ("DOJ") in order to resolve the EPA's past cost claim. In 2000, the Company and approximately 50 other companies were notified that they are PRPs under the CERCLA with respect to a Superfund site, the State Marine of Port Arthur Superfund Site ("State Marine"), located in Port Arthur, Texas. In the past, State Marine had performed tank barge cleaning and services for various subsidiaries of the Company. In March 2010, the DOJ and EPA issued a letter to seven PRPs, which include the former owners/operator of the site and others, including the Company, indicating their intent to pursue reimbursement of its past costs of approximately $2,902,000 in connection with clean-up activities in relation to the site. The Company and the other PRPs have requested documentation concerning the site activities related to all PRPs in order to determine appropriate allocation of past costs relative to activities at the site to develop suggested pro rata sharing to resolve the EPA's past cost claim. With respect to the above sites, the Company has recorded reserves for its estimated potential liability for its portion of the EPA's past costs claim based on information developed to date including various factors such as the Company's liability in proportion to other responsible parties and the extent to which such costs are recoverable from third parties. In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company's financial condition, results of operations or cash flows. Management believes that it has recorded adequate reserves and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies. Certain Significant Risks and Uncertainties. The preparation of financial statements in conformity with United States generally accepted accounting principles 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 could differ from those estimates. However, in the opinion of management, the amounts would be immaterial. The customer base of the marine transportation segment includes the major industrial petrochemical and chemical manufacturers, agricultural chemical manufacturers and refining companies operating in the United States. Approximately 75% of marine transportation revenues are from movements of such products under term contracts, ranging from one year to five years, with renewal options. While the manufacturing and refining companies have generally been customers of the Company for numerous years (some as long as 40 years) and management anticipates a continuing relationship, there is no assurance that any individual contract will be renewed. The Dow Chemical Company accounted for 12% of the Company's revenues in 2010, 11% in 2009 and 9% in 2008. SeaRiver Maritime, Inc., the United States transportation affiliate of Exxon Mobil Corporation, accounted for 11% of the Company's revenues in 2010 and 10% in 2009 and 2008. Major customers of the diesel engine services segment include the inland and offshore barge operators, oil service companies, offshore fishing companies, other marine transportation entities, the United States Coast Guard ("USCG") and United States Navy, shortline railroads, industrial owners of locomotives, transit railroads and Class II railroads, and power generation, nuclear and industrial companies. The segment operates as an authorized distributor in 17 eastern states and the Caribbean, and as non-exclusive authorized service centers for Electro-Motive Diesel, Inc. ("EMD") throughout the rest of the United States for marine and power generation applications. In August 2010, EMD was purchased by a wholly owned subsidiary of Caterpillar Inc. The railroad portion of the segment serves as the exclusive distributorship of EMD aftermarket parts sales and services to the shortline and industrial railroad market. The segment also serves as the exclusive distributor of EMD parts to the nuclear industry. The diesel engine services segment's relationship with EMD has been maintained for 45 years. The segment also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere high-speed diesel engines and Allison transmissions and gears in the Gulf Coast region, as well as an authorized marine dealer for Caterpillar in Alabama, Kentucky and Louisiana. The results of the diesel engine services segment are largely tied to the industries it serves and, therefore, can be influenced by the cycles of such industries. No single customer of the diesel engine services segment accounted for more than 10% of the Company's revenues in 2010, 2009 and 2008. Weather can be a major factor in the day-to-day operations of the marine transportation segment. Adverse weather conditions, such as high water, low water, tropical storms, hurricanes, fog and ice, can impair the operating efficiencies of the marine fleet. Shipments of products can be significantly delayed or postponed by weather conditions, which are totally beyond the control of the Company. Adverse water conditions are also factors which impair the efficiency of the fleet and can result in delays, diversions and limitations on night passages, and dictate horsepower requirements and size of tows. Additionally, much of the inland waterway system is controlled by a series of locks and dams designed to provide flood control, maintain pool levels of water in certain areas of the country and facilitate navigation on the inland river system. Maintenance and operation of the navigable inland waterway infrastructure is a government function handled by the Army Corps of Engineers with costs shared by industry. Significant changes in governmental policies or appropriations with respect to maintenance and operation of the infrastructure could adversely affect the Company. The Company's marine transportation segment is subject to regulation by the USCG, federal laws, state laws and certain international conventions, as well as numerous environmental regulations. The Company believes that additional safety, environmental and occupational health regulations may be imposed on the marine industry. There can be no assurance that any such new regulations or requirements, or any discharge of pollutants by the Company, will not have an adverse effect on the Company. The Company's marine transportation segment competes principally in markets subject to the Jones Act, a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States, and manned and owned by United States citizens. The Jones Act cabotage provisions occasionally come under attack by interests seeking to facilitate foreign flag competition in trades reserved for domestic companies and vessels under the Jones Act. The Company believes that continued efforts will be made to modify or eliminate the cabotage provisions of the Jones Act. If such efforts are successful, certain elements could have an adverse effect on the Company. The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $26,268,000 at December 31, 2010, including $7,257,000 in letters of credit and debt guarantees, and $19,011,000 in performance bonds. All of these instruments have an expiration date within four years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur in connection with these instruments.

Segment Data

12 Months Ended

Dec. 31, 2010

Segment Data

Segment Data

(13) Segment Data

The Company's operations are classified into two reportable business segments as follows:

Marine Transportation — Marine transportation by United States flag vessels on the United States inland waterway system and, to a lesser extent, offshore transportation of dry-bulk cargoes. The principal products transported on the United States inland waterway system include petrochemicals, black oil products, refined petroleum products and agricultural chemicals.

Diesel Engine Services — Overhaul and repair of medium-speed and high-speed diesel engines, reduction gear repair, and sale of related parts and accessories for customers in the marine, power generation and railroad industries.

The Company's two reportable business segments are managed separately based on fundamental differences in their operations. The Company's accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. Intersegment sales for 2010, 2009 and 2008 were not significant.

The following table sets forth by reportable segment the revenues, profit or loss, total assets, depreciation and amortization, and capital expenditures attributable to the principal activities of the Company for the years ended December 31, 2010, 2009 and 2008 (in thousands):


	2010			2009			2008
Revenues:
Marine transportation	$	915,046		$	881,298		$	1,095,475
Diesel engine services		194,511			200,860			264,679

	$	1,109,557		$	1,082,158		$	1,360,154

Segment profit (loss):
Marine transportation	$	192,758		$	208,086		$	244,866
Diesel engine services		20,553			21,005			39,587
Other		(23,671	)		(23,533	)		(28,536	)

	$	189,640		$	205,558		$	255,917

Total assets:
Marine transportation	$	1,383,252		$	1,336,358		$	1,289,689
Diesel engine services		185,824			185,573			208,993
Other		225,861			114,032			27,416

	$	1,794,937		$	1,635,963		$	1,526,098

Depreciation and amortization:
Marine transportation	$	88,710		$	87,589		$	84,537
Diesel engine services		4,055			4,247			4,830
Other		2,531			2,132			1,832

	$	95,296		$	93,968		$	91,199

Capital expenditures:
Marine transportation	$	132,744		$	188,479		$	164,681
Diesel engine services		920			1,768			3,051
Other		3,177			2,413			5,287

	$	136,841		$	192,660		$	173,019

The following table presents the details of "Other" segment profit (loss) for the years ended December 31, 2010, 2009 and 2008 (in thousands):


	2010			2009			2008
General corporate expenses	$	(13,189	)	$	(12,239	)	$	(14,099	)
Impairment of goodwill		—			(1,901	)		—
Interest expense		(10,960	)		(11,080	)		(14,064	)
Gain (loss) on disposition of assets		(78	)		1,079			142
Other income (expense)		556			608			(515	)

	$	(23,671	)	$	(23,533	)	$	(28,536	)

The following table presents the details of "Other" total assets as of December 31, 2010, 2009 and 2008 (in thousands):


	2010		2009		2008
General corporate assets	$	222,525	$	110,980	$	25,360
Investment in affiliates		3,336		3,052		2,056

	$	225,861	$	114,032	$	27,416

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2010
Related Party Transactions
Related Party Transactions	(14) Related Party Transactions During 2010, the Company and its subsidiaries paid L3 Partners, LLC ("L3P"), a company owned by C. Berdon Lawrence, the former Chairman of the Board and current director of the Company, $259,000 for air transportation services provided by L3P and office relocation costs. Such services were in the ordinary course of business of the Company. During 2010, the Company and its subsidiaries paid 55 Waugh, LP, a partnership 60% owned by Mr. Lawrence and his family, $1,660,000 for the rental of office space in a building owned by 55 Waugh, LP. The Company's headquarters are located in the building under a lease that was signed in 2005, prior to the purchase of the building by 55 Waugh, LP, and expires at the end of 2015. The Company is a 50% owner of The Hollywood Camp, L.L.C. ("The Hollywood Camp"), a company that owns and operates a hunting and fishing facility used by the Company and L3P, which is also a 50% owner. The Company uses The Hollywood Camp primarily for customer entertainment. L3P acts as manager of The Hollywood Camp. The Hollywood Camp allocates lease and lodging expenses to its members based on their usage of the facilities. During 2010, the Company paid $1,558,000 to The Hollywood Camp for its share of facility expenses. The son of Mr. Lawrence is the Chairman of the Board, Chief Executive Officer and owner of 70% of the common stock of Bayou City Pump, Inc. ("Bayou City"). In 2010, the Company paid Bayou City $200,000 for overhauls of black oil barge pumps. Such overhauls were in the ordinary course of business of the Company. The husband of Amy D. Husted, Vice President — Legal of the Company, is a partner in the law firm of Strasburger & Price, LLP. In 2010, the Company paid the law firm $412,000 for legal services in connection with matters in the ordinary course of business of the Company.

- Definition

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2010
Subsequent Events
Subsequent Events	(15) Subsequent Events On February 24, 2011, the Company purchased 21 inland and offshore tank barges and 15 inland towboats and offshore tugboats from Enterprise Marine Services LLC ("Enterprise") for approximately $53,200,000 in cash. Enterprise provided transportation and delivery services for ship bunkers (engine fuel) to cruise ships, container ships and freighters primarily in the Miami, Port Everglades and Cape Canaveral, Florida area, the three largest cruise ship ports in the United States, as well as Tampa, Florida, Mobile, Alabama and Houston, Texas. On February 21, 2011, the Company signed an agreement to purchase United Holdings LLC ("United"), a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and transportation industries, and manufacturer of oilfield service equipment. The base purchase price is $270,000,000 in cash (before post closing adjustments), plus a three-year earnout provision for up to an additional $50,000,000 payable in 2014. United, headquartered in Oklahoma City, Oklahoma with 21 locations across 13 states, distributes and services equipment and parts for Allison Transmission, MTU Detroit Diesel Engines, Daimler Trucks NA, and other diesel and natural gas engines. United also manufactures oilfield service equipment, including hydraulic fracturing equipment. United's principal customers are oilfield service companies, oil and gas operators and producers, compression service companies and transportation companies. The closing of the acquisition is expected to occur in April 2011 and is subject to certain conditions, including the expiration of the required waiting period under the Hart-Scott-Rodino Act. On February 9, 2011, the Company purchased from Kinder Morgan Petcoke, L.P. ("Kinder Morgan") for $4,050,000 in cash a 51% interest in Kinder Morgan's shifting operation and fleeting facility for dry cargo barges and tank barges on the Houston Ship Channel. Kinder Morgan retained the remaining 49% interest and the Company will manage the operation. In addition, the Company purchased a towboat from Kinder Morgan for $1,250,000 in cash.