ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2012

Business Acquisition [Line Items]

Business Acquisition, Pro Forma Information

The pro forma combined financial statements do not include the realization of any cost savings from anticipated operating efficiencies, synergies, or other restructuring activities which might result from the acquisition.  The following table sets forth the pro forma revenues, net earnings attributable to ISH, basic net earnings per share and fully diluted net earnings per share attributable to ISH common stockholders for the years ended December 31, 2012 and 2011, respectively (unaudited and in thousands, except share amounts):

	2012		2011
	Pro Forma		Pro Forma
Revenues	$	329,079	$	385,938
Net earnings attributable to ISH	$	30,765	$	39,166
Net earnings per share attributable to ISH common stockholders:
Basic	$	4.28	$	5.49
Diluted	$	4.27	$	5.46

Calculation of Gain on Previously Held Equity Interest

Under Accounting Standards Codification 805, a step up to fair value is required when an equity interest changes from a non-controlling interest to a controlling interest (step acquisition). Based on the step up from a 50% interest to a 100% interest in Dry Bulk, a gain of approximately $18.3 million was generated by taking the difference between the fair value of our previously held 50% interest less the book value of the previously held interest. This calculation is shown below:

(Amounts in thousands)

Fair Value of Previously Held 50% Interest	$	32,700
Less: Book Value of Previously Held Interest		(14,400	)
Gain on Previously Held 50% Interest	$	18,300

Calculation of Bargain Purchase Gain

We also recognized a bargain purchase gain of $0.5 million with respect to the step up to fair value of the 50% interest we acquired, calculated as follows:

(Amounts in thousands)

Fair Value of Net Assets Acquired	$	69,000
Less: Fair Value of Purchase Consideration		(35,800	)
Less: Fair Value of Previously Held 50% Interest		(32,700	)
Bargain Purchase Gain	$	500

U.S. United Ocean Services, LLC Acquisition [Member]

Business Acquisition [Line Items]

Assets Acquired and Liabilities Assumed

The following is a tabular summary of the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:

Description	Amount Recognized as of Acquisition Date (Dollars in Thousands)
Working Capital including Cash Acquired	$	8,512
Inventory		6,510
Property, Plant, & Equipment		60,037
Identifiable Intangible Assets		45,131
Total Assets Acquired		120,190
Misc. Payables & Accrued Expenses		(5,039	)
Other Long Term Liability		(2,070	)
Total Liabilities Assumed		(7,109	)
Net Assets Acquired		113,081
Working Capital Settlement		(2,738)
Total Consideration Transferred		(112,244	)
Goodwill*	$	1,901

* Goodwill is calculated as the excess of the consideration transferred over the net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.  Our above-described goodwill will not be amortized nor do we expect it to be deductible for tax purposes.  Specifically, the goodwill recorded as part of the acquisition of UOS includes the following:

·   the expected synergies and other benefits that we believe will result from combining the operations of UOS with our existing Jones Act operations.

·   any intangible assets that do not qualify for separate recognition, including an assembled workforce of the acquired company, and

·   the anticipated higher rate of return of  UOS's existing businesses as going concerns compared to the anticipated rate of return if we had acquired all of the net assets separately.

Frascati Shops Inc and Tower LLC [Member]

Business Acquisition [Line Items]

Assets Acquired and Liabilities Assumed

The following is a tabular summary of the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:

Description	Amount Recognized as of Acquisition Date (Dollars in Thousands)
Working Capital including Cash Acquired	$	18
Inventory		231
Property, Plant, & Equipment		3,411
Identifiable Intangible Assets		490
Total Assets Acquired		4,150
Misc. Payables & Accrued Expenses		(383	)
Long Term Debt		(3,490	)
Deferred Tax Liability		(453	)
Total Liabilities Assumed		(4,326	)
Net Liabilities Assumed		(176	)
Total Consideration Transferred		(623	)
Goodwill*	$	799

* Goodwill is the sum of the consideration transferred and the net liabilities assumed and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.  Our above-described goodwill will not be amortized nor do we expect it to be deductible for tax purposes.  Specifically, the goodwill recorded as part of the acquisition of the Acquired Companies includes the following:

· the expected synergies and other benefits that we believe will result from combining the operations of the Acquired Companies with our existing Rail-Ferry operations.

· any intangible assets that do not qualify for separate recognition, including an assembled workforce of the acquired companies, and

· the anticipated higher rate of return of  the Acquired Companies existing businesses as going concerns compared to the anticipated rate of return if we had acquired all of the net assets separately.