##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K/A
 (Amendment No. 1)
  X
    
    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934 for the fiscal year ended December 31, 2006
 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
 2-63322
 INTERNATIONAL SHIPHOLDING CORPORATION
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    36-2989662
(I.R.S. Employer
Identification No.)11 North Water Street, Mobile, Alabama
(Address of principal executive offices)
    
    36602
(Zip Code)
 (251)-243-9100
  Title of each class
    
    Name of each exchange on which registeredCommon Stock, $1 Par Value
    
    New York Stock Exchange6.0% Convertible Exchangeable Preferred Stock
    
    New York Stock Exchange73/4% Senior Notes Due 2007
    
    New York Stock Exchange
  o þ
  þ
  þ o
 o
  o o þ
  o þ
   Class
    
    Outstanding at February 23, 2007Common Stock, $1 par value,
    
    6,119,187 shares




---



##### Table of Contents



EXPLANATORY NOTE
   
    
    The report of the Registrants independent registered accounting firm appearing on page F-2 has
been modified, through the addition of a final sentence, and has been re-dated.
    
    The Registrants Net Income Available to Common Stockholders - Diluted for 2006 appearing
on page F-3 has been restated from $2.39 per share to $2.10 per share, and the Weighted Average
Shares of Common Stock Outstanding - Diluted, also appearing on page F-3, has been restated
from 6,122,578 to 8,122,578.
    
    The paragraph entitled Earnings Per Share in Note A on page F-10 has been deleted.
    
    Note R appearing on page F-31 has been revised to restate Diluted Earnings per Common Share from
(i) $3.56 to $2.75 for the quarter ended December 31, 2006; (ii) $0.58 to $0.51 for the quarter
ended March 31, 2005 and (iii) $0.55 to $0.49 for the quarter ended June 30, 2005.
    
    A new Note S has been added.
 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
  (1) Financial Statements.
  
 (2) Financial Statement Schedules .




---



##### Table of Contents



INDEX OF FINANCIAL STATEMENTS
 Report of Independent Registered Public Accounting Firm
    
    
    F-2Consolidated Statements of Income for the years ended
December 31, 2006, 2005, and 2004
    
    
    F-3Consolidated Balance Sheets at December 31, 2006 and 2005
    
    
    F-4Consolidated Statements of Changes in Stockholders Investment
for the years ended December 31, 2006, 2005 and 2004
    
    
    F-6Consolidated Statements of Cash Flows for the years ended
December 31, 2006, 2005, and 2004
    
    
    F-7Notes to Consolidated Financial Statements
    
    
    F-8Certification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to Section 906Certification of CFO Pursuant to Section 906
 F-1




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     /s/   Ernst & Young LLP 
 F-2




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME  (All Amounts in Thousands Except Share Data)
 Year Ended December 31,2006
    
    
    2005
    
    
    2004Revenues
    
    $
    274,881
    
    
    $
    262,156
    
    
    $
    259,164Operating Expenses:Voyage Expenses
    
    
    230,510
    
    
    
    213,997
    
    
    
    212,860Vessel and Barge Depreciation
    
    
    23,735
    
    
    
    22,379
    
    
    
    18,258Impairment Loss
    
    
    8,866
    
    
    
    
    
    
    
    Gross Voyage Profit
    
    
    11,770
    
    
    
    25,780
    
    
    
    28,046Administrative and General Expenses
    
    
    18,765
    
    
    
    16,052
    
    
    
    15,536(Gain) Loss on Sale of Assets
    
    
    (5,125
    )
    
    
    (584
    )
    
    
    7Operating (Loss) Income
    
    
    (1,870
    )
    
    
    10,312
    
    
    
    12,503Interest and Other:Interest Expense
    
    
    11,147
    
    
    
    9,626
    
    
    
    10,585(Gain) Loss on Sale of Investments
    
    
    (23,058
    )
    
    
    (287
    )
    
    
    623Investment Income
    
    
    (1,397
    )
    
    
    (1,111
    )
    
    
    (691
    )Loss on Early Extinguishment of Debt
    
    
    248
    
    
    
    68
    
    
    
    361(13,060
    )
    
    
    8,296
    
    
    
    10,878Income from Continuing Operations Before (Benefit) Provision for
Income Taxes and Equity in Net Income of Unconsolidated Entities
    
    
    11,190
    
    
    
    2,016
    
    
    
    1,625(Benefit) Provision for Income Taxes:Current
    
    
    
    
    
    
    129
    
    
    
    Deferred
    
    
    (1,137
    )
    
    
    (2,609
    )
    
    
    (6,946
    )State
    
    
    4
    
    
    
    23
    
    
    
    23(1,133
    )
    
    
    (2,457
    )
    
    
    (6,923
    )Equity in Net Income of Unconsolidated Entities (Net of Applicable Taxes)
    
    
    4,725
    
    
    
    3,793
    
    
    
    4,646Income from Continuing Operations
    
    
    17,048
    
    
    
    8,266
    
    
    
    13,194Loss from Discontinued Over-the-Road Transportation Operations
(Net of Applicable Taxes)
    
    
    
    
    
    
    (1,270
    )
    
    
    (409
    )Net Income
    
    $
    17,048
    
    
    $
    6,996
    
    
    $
    12,785Preferred Stock Dividends
    
    
    2,400
    
    
    
    2,367
    
    
    
    Net Income Available to Common Stockholders
    
    $
    14,648
    
    
    $
    4,629
    
    
    $
    12,785Basic and Diluted Earnings Per Common Share:Net Income Available to Common Stockholders  BasicContinuing Operations
    
    $
    2.40
    
    
    $
    0.97
    
    
    $
    2.17Discontinued Operations
    
    
    
    
    
    
    (0.21
    )
    
    
    (0.07
    )$
    2.40
    
    
    $
    0.76
    
    
    $
    2.10Net Income Available to Common Stockholders  Diluted (Restated)Continuing Operations
    
    $
    2.10
    
    
    $
    0.96
    
    
    $
    2.17Discontinued Operations
    
    
    
    
    
    
    (0.21
    )
    
    
    (0.07
    )$
    2.10
    
    
    $
    0.75
    
    
    $
    2.10Weighted Average Shares of Common Stock Outstanding:Basic
    
    
    6,116,036
    
    
    
    6,083,005
    
    
    
    6,082,887Diluted (Restated)
    
    
    8,122,578
    
    
    
    6,114,510
    
    
    
    6,092,302
 The accompanying notes are an integral part of these statements.
 F-3




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS  (All Amounts in Thousands Except Share Data)
 December 31,
    
    
    December 31,ASSETS
    
    2006
    
    
    2005Current Assets:Cash and Cash Equivalents
    
    $
    44,273
    
    
    $
    16,178Marketable Securities
    
    
    6,545
    
    
    
    6,614Accounts Receivable, Net of Allowance for Doubtful Accounts
of $216 and $184 in 2006 and 2005:Traffic
    
    
    13,348
    
    
    
    22,649Agents
    
    
    3,948
    
    
    
    4,929Claims and Other
    
    
    8,889
    
    
    
    10,990Federal Income Taxes Receivable
    
    
    322
    
    
    
    324Deferred Income Tax
    
    
    67
    
    
    
    149Net Investment in Direct Financing Leases
    
    
    4,400
    
    
    
    3,923Other Current Assets
    
    
    2,798
    
    
    
    4,432Material and Supplies Inventory, at Lower of Cost or Market
    
    
    3,508
    
    
    
    3,575Current Assets Held for Disposal
    
    
    681
    
    
    
    55Total Current Assets
    
    
    88,779
    
    
    
    73,818Investment in Unconsolidated Entities
    
    
    12,409
    
    
    
    14,926Net Investment in Direct Financing Leases
    
    
    70,497
    
    
    
    74,642Vessels, Property, and Other Equipment, at Cost:Vessels and Barges
    
    
    376,802
    
    
    
    366,026Leasehold Improvements
    
    
    20,054
    
    
    
    29,319Other Equipment
    
    
    2,077
    
    
    
    2,077Furniture and Equipment
    
    
    3,037
    
    
    
    3,762401,970
    
    
    
    401,184Less   Accumulated Depreciation
    
    
    (175,033
    )
    
    
    (151,640
    )226,937
    
    
    
    249,544Other Assets:Deferred Charges, Net of Accumulated Amortization
of $11,114 and $10,968 in 2006 and 2005, Respectively
    
    
    14,577
    
    
    
    13,839Acquired Contract Costs, Net of Accumulated Amortization
of $25,796 and $24,341 in 2006 and 2005, Respectively
    
    
    4,729
    
    
    
    6,185Restricted Cash
    
    
    
    
    
    
    6,541Due from Related Parties
    
    
    4,015
    
    
    
    1,600Other
    
    
    6,099
    
    
    
    8,41229,420
    
    
    
    36,577$
    428,042
    
    
    $
    449,507
 The accompanying notes are an integral part of these statements.
 F-4




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS  (All Amounts in Thousands Except Share Data)
 December 31,
    
    
    December 31,2006
    
    
    2005LIABILITIES AND STOCKHOLDERS INVESTMENTCurrent Liabilities:Current Maturities of Long-Term Debt
    
    $
    50,250
    
    
    $
    10,275Accounts Payable and Accrued Liabilities
    
    
    34,418
    
    
    
    47,423Total Current Liabilities
    
    
    84,668
    
    
    
    57,698Billings in Excess of Income Earned and Expenses Incurred
    
    
    700
    
    
    
    4,062Long-Term Debt, Less Current Maturities
    
    
    98,984
    
    
    
    161,720Other Long-Term Liabilities:Deferred Income Taxes
    
    
    11,837
    
    
    
    13,169Lease Incentive Obligation
    
    
    17,890
    
    
    
    14,450Other
    
    
    22,673
    
    
    
    20,14052,400
    
    
    
    47,759Commitments and Contingent LiabilitiesConvertible Exchangeable Preferred Stock
    
    
    37,554
    
    
    
    37,554Stockholders Investment:Common Stock, $1.00 Par Value, 10,000,000 Shares
Authorized, 6,792,630 and 6,759,730 Shares Issued at
December 31, 2006 and 2005, Respectively
    
    
    6,793
    
    
    
    6,760Additional Paid-In Capital
    
    
    54,927
    
    
    
    54,495Retained Earnings
    
    
    101,992
    
    
    
    87,344Less - 673,443 Shares of Common Stock in Treasury,
at Cost, at December 31, 2006 and 2005
    
    
    (8,704
    )
    
    
    (8,704
    )Accumulated Other Comprehensive (Loss) Income
    
    
    (1,272
    )
    
    
    819153,736
    
    
    
    140,714$
    428,042
    
    
    $
    449,507
 The accompanying notes are an integral part of these statements.
 F-5




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS INVESTMENT  (All Amounts in Thousands)
 AccumulatedAdditional
    
    
    
    
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Retained
    
    
    Treasury
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Stock
    
    
    (Loss) Income
    
    
    TotalBalance at December 31, 2003
    
    $
    6,756
    
    
    $
    54,450
    
    
    $
    69,930
    
    
    $
    (8,704
    )
    
    $
    (1,065
    )
    
    $
    121,367Comprehensive Income:Net Income for Year Ended December 31, 2004
    
    
    
    
    
    
    
    
    
    
    12,785
    
    
    
    
    
    
    
    
    
    
    
    12,785Other Comprehensive Income:Recognition of Unrealized Holding Loss on Marketable
Securities, Net of Deferred Taxes of $216
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    402
    
    
    
    402Unrealized Holding Gain on Marketable Securities,
Net of Deferred Taxes of $118
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    220
    
    
    
    220Net Change in Fair Value of Derivatives, Net of
Deferred Taxes of $366
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    680
    
    
    
    680Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,087Balance at December 31, 2004
    
    $
    6,756
    
    
    $
    54,450
    
    
    $
    82,715
    
    
    $
    (8,704
    )
    
    $
    237
    
    
    $
    135,454Comprehensive Income:Net Income for Year Ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    6,996
    
    
    
    
    
    
    
    
    
    
    
    6,996Other Comprehensive (Loss) Income:Recognition of Unrealized Holding Gain on Marketable
Securities, Net of Deferred Taxes of ($88)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (163
    )
    
    
    (163
    )Unrealized Holding Gain on Marketable Securities,
Net of Deferred Taxes of $224
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    416
    
    
    
    416Net Change in Fair Value of Derivatives, Net of
Deferred Taxes of ($91)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    329
    
    
    
    329Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,578Preferred Stock Dividends
    
    
    
    
    
    
    
    
    
    
    (2,367
    )
    
    
    
    
    
    
    
    
    
    
    (2,367
    )Options Exercised
    
    
    4
    
    
    
    45
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49Balance at December 31, 2005
    
    $
    6,760
    
    
    $
    54,495
    
    
    $
    87,344
    
    
    $
    (8,704
    )
    
    $
    819
    
    
    $
    140,714Comprehensive Income:Net Income for Year Ended December 31, 2006
    
    
    
    
    
    
    
    
    
    
    17,048
    
    
    
    
    
    
    
    
    
    
    
    17,048Other Comprehensive (Loss) Income:Recognition of Unrealized Holding Gain on Marketable
Securities, Net of Deferred Taxes of ($111)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (206
    )
    
    
    (206
    )Unrealized Holding Gain on Marketable Securities,
Net of Deferred Taxes of $117
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    219
    
    
    
    219Net Change in Fair Value of Derivatives, Net of
Deferred Taxes of $176
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    656
    
    
    
    656Adjustment to Initially Apply SFAS No. 158, Net of
Deferred Taxes of ($8)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,760
    )
    
    
    (2,760
    )Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,957Preferred Stock Dividends
    
    
    
    
    
    
    
    
    
    
    (2,400
    )
    
    
    
    
    
    
    
    
    
    
    (2,400
    )Options Exercised
    
    
    33
    
    
    
    432
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    465Balance at December 31, 2006
    
    $
    6,793
    
    
    $
    54,927
    
    
    $
    101,992
    
    
    $
    (8,704
    )
    
    $
    (1,272
    )
    
    $
    153,736
 The accompanying notes are an integral part of these statements.
 F-6




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS  (All Amounts in Thousands)
 Year Ended December 31,2006
    
    
    2005
    
    
    2004Cash Flows from Operating Activities:Net Income
    
    $
    17,048
    
    
    $
    6,996
    
    
    $
    12,785Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities:Depreciation
    
    
    24,417
    
    
    
    23,116
    
    
    
    19,420Amortization of Deferred Charges and Other Assets
    
    
    7,954
    
    
    
    8,071
    
    
    
    7,844Benefit for Deferred Federal Income Taxes
    
    
    (1,137
    )
    
    
    (3,245
    )
    
    
    (7,166
    )Impairment Loss
    
    
    8,866
    
    
    
    
    
    
    
    Equity in Net Income of Unconsolidated Entities
    
    
    (4,725
    )
    
    
    (3,793
    )
    
    
    (4,646
    )Distributions from Unconsolidated Entities
    
    
    1,450
    
    
    
    3,280
    
    
    
    4,542Proceeds from Lease Incentive Obligations
    
    
    2,779
    
    
    
    
    
    
    
    (Gain) Loss on Sale of Assets
    
    
    (5,125
    )
    
    
    (584
    )
    
    
    7Loss on Sale of Assets from Discontinued Operations
    
    
    
    
    
    
    769
    
    
    
    Loss on Early Extinguishment of Debt
    
    
    248
    
    
    
    68
    
    
    
    361(Gain) Loss on Sale of Investments
    
    
    (23,058
    )
    
    
    (287
    )
    
    
    623Deferred Drydocking Charges
    
    
    (8,432
    )
    
    
    (5,043
    )
    
    
    (7,450
    )Changes in:Accounts Receivable
    
    
    12,349
    
    
    
    (8,185
    )
    
    
    7,031Inventories and Other Current Assets
    
    
    1,416
    
    
    
    722
    
    
    
    1,308Other Assets
    
    
    2,767
    
    
    
    884
    
    
    
    1,277Accounts Payable and Accrued Liabilities
    
    
    (12,079
    )
    
    
    1,802
    
    
    
    (3,089
    )Federal Income Taxes Payable
    
    
    (544
    )
    
    
    (331
    )
    
    
    (1,066
    )Billings in Excess of Income Earned and Expenses Incurred
    
    
    (3,362
    )
    
    
    (661
    )
    
    
    (548
    )Other Long-Term Liabilities
    
    
    2,149
    
    
    
    199
    
    
    
    (2,244
    )Net Cash Provided by Operating Activities
    
    
    22,981
    
    
    
    23,778
    
    
    
    28,989Cash Flows from Investing Activities:Net Investment in Direct Financing Leases
    
    
    3,668
    
    
    
    (29,452
    )
    
    
    2,151Capital Improvements to Vessels, Leasehold Improvements,
and Other Assets
    
    
    (21,799
    )
    
    
    (35,000
    )
    
    
    (25,565
    )Proceeds from Sale of Assets
    
    
    12,026
    
    
    
    3,756
    
    
    
    Purchase of and Proceeds from Short-Term Investments
    
    
    552
    
    
    
    200
    
    
    
    (3,155
    )Investment in Unconsolidated Entities
    
    
    (1,336
    )
    
    
    (1,647
    )
    
    
    Return of Capital of Unconsolidated Entity
    
    
    2,480
    
    
    
    
    
    
    
    Proceeds from Sale of Unconsolidated Entity
    
    
    27,490
    
    
    
    
    
    
    
    Net Decrease in Restricted Cash Account
    
    
    6,541
    
    
    
    
    
    
    
    865Net (Increase) Decrease in Related Party Note Receivables
    
    
    (2,090
    )
    
    
    935
    
    
    
    Other Investing Activities
    
    
    
    
    
    
    
    
    
    
    115Net Cash Provided (Used) by Investing Activities
    
    
    27,532
    
    
    
    (61,208
    )
    
    
    (25,589
    )Cash Flows from Financing Activities:Proceeds from Issuance of Preferred Stock
    
    
    
    
    
    
    37,725
    
    
    
    Proceeds from Issuance of Common Stock
    
    
    465
    
    
    
    49
    
    
    
    Proceeds from Issuance of Debt
    
    
    10,000
    
    
    
    48,000
    
    
    
    29,000Repayment of Debt
    
    
    (32,761
    )
    
    
    (54,095
    )
    
    
    (29,920
    )Additions to Deferred Financing Charges
    
    
    (175
    )
    
    
    (421
    )
    
    
    (766
    )Preferred Stock Dividends Paid
    
    
    (2,400
    )
    
    
    (2,367
    )
    
    
    Reimbursements for Leasehold Improvements
    
    
    2,613
    
    
    
    14,310
    
    
    
    Other Financing Activities
    
    
    (160
    )
    
    
    (106
    )
    
    
    (82
    )Net Cash (Used) Provided by Financing Activities
    
    
    (22,418
    )
    
    
    43,095
    
    
    
    (1,768
    )Net Increase in Cash and Cash Equivalents
    
    
    28,095
    
    
    
    5,665
    
    
    
    1,632Cash and Cash Equivalents at Beginning of Year
    
    
    16,178
    
    
    
    10,513
    
    
    
    8,881Cash and Cash Equivalents at End of Year
    
    $
    44,273
    
    
    $
    16,178
    
    
    $
    10,513
 The accompanying notes are an integral part of these statements.
 F-7




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
    Nature of Operations
  Use of Estimates
  Voyage Revenue and Expense Recognition
 Liner Rail-Ferry Service Liner Services
 Maritime Security Program
  Cash and Cash Equivalents
  F-8




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Inventories
  Allowance for Doubtful Accounts
  Property
  Years2 LASH Vessels
    
    304 Pure Car/Truck Carriers
    
    201 Coal Carrier
    
    157 Other Vessels *
    
    25Leasehold Improvements
    
    10Other Equipment
    
    3-12Furniture and Equipment
    
    3-10
 
 *
    
    Includes two Special Purpose vessels, a Molten Sulphur Carrier, a Dockship, and three Container
vessels.     Drydocking Costs
 See Note K
 Deferred Financing Charges and Acquired Contract Costs
 See Note K
 Self-Retention Insurance
  F-9




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (See Note E)
 Asbestos Claims
  Income Taxes
   (See Note G).
 Foreign Currency Transactions
  Dividend Policy
  Derivative Instruments and Hedging Activities
 (See Note O)
 Stock-Based Compensation
  F-10




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 See Note F
   Note F  Employee Benefit Plans
 Pension and Postretirement Benefits
   Other New Accounting Pronouncements
   F-11




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   NOTE B  PROPERTY
 Rail-Ferry Service Assets
 Rail-Ferry Service
  Rail-Ferry Service Rail-Ferry Service
 LASH Liner Service Assets
 Liner
Service
 Liner Service
 F-12




---



##### Table of Contents



INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
     Gains and Losses on Sales of Assets
 See Note Q
 NOTE C  CONVERTIBLE EXCHANGEABLE PREFERRED STOCK
     F-13
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE D  LONG-TERM DEBT
 (All Amounts in Thousands)
    
    Interest Rate
    
    
    
    Total Principal DueDecember 31,
    
    December 31,
    
    Maturity
    
    December 31,
    
    December 31,Description
    
    2006
    
    2005
    
    Date
    
    2006
    
    2005Unsecured:Senior Notes  Fixed Rate
    
    7.75%
    
    7.75%
    
    2007
    
    $
    39,979
    
    
    $
    52,465Secured:Notes Payable  Variable Rate *
    
    6.3656%
    
    5.53%
    
    2015
    
    
    28,666
    
    
    
    31,333Notes Payable  Variable Rate *
    
    4.8200%
    
    3.869%
    
    2012
    
    
    13,860
    
    
    
    14,000Notes Payable  Variable Rate
    
    6.6219%
    
    5.45-5.65%
    
    2013
    
    
    66,729
    
    
    
    74,197Line of Credit
    
    N/A
    
    N/A
    
    2009
    
    
    
    
    
    
    $
    149,234
    
    
    $
    171,995Less Current Maturities
    
    
    (50,250
    )
    
    
    (10,275
    )$
    98,984
    
    
    $
    161,720
 
 *
    
    We have interest rate swap agreements in place to fix the interest rates on our variable rate
notes payable expiring in 2015 and 2012 at 4.41% and 5.17%, respectively. After applicable margin
adjustments, the effective interest rates on these notes payable are fixed at 5.41% and 4.67%,
respectively. The swap agreements are for the same terms as the associated notes payable.  3 4
 3 4 3 4 3 4
     NOTE E  SELF-RETENTION INSURANCE
  F-14
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    NOTE F  EMPLOYEE BENEFIT PLANS
 Pension and Postretirement Benefits
   (All Amounts in Thousands)
    
    Pension Plan
    
    
    Postretirement BenefitsYear Ended December 31,
    
    
    Year Ended December 31,2006
    
    
    2005
    
    
    2006
    
    
    2005Change in Benefit ObligationBenefit Obligation at Beginning of Year
    
    $
    23,323
    
    
    $
    22,461
    
    
    $
    9,164
    
    
    $
    9,638Service Cost
    
    
    676
    
    
    
    668
    
    
    
    63
    
    
    
    90Interest Cost
    
    
    1,312
    
    
    
    1,248
    
    
    
    453
    
    
    
    536Actuarial (Gain) Loss
    
    
    12
    
    
    
    (31
    )
    
    
    (919
    )
    
    
    (551
    )Benefits Paid and Expected Expenses
    
    
    (1,045
    )
    
    
    (1,023
    )
    
    
    (586
    )
    
    
    (549
    )Curtailments
    
    
    (604
    )
    
    
    
    
    
    
    (127
    )
    
    
    Special Termination Benefits
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    Benefit Obligation at End of Year
    
    $
    23,684
    
    
    $
    23,323
    
    
    $
    8,048
    
    
    $
    9,164
 (All Amounts in Thousands)
    
    Pension Plan
    
    
    Postretirement BenefitsYear Ended December 31,
    
    
    Year Ended December 31,2006
    
    
    2005
    
    
    2006
    
    
    2005Change in Plan AssetsFair Value of Plan Assets at Beginning of Year
    
    $
    20,330
    
    
    $
    19,119
    
    
    $
    
    
    
    $
    Actual Return on Plan Assets
    
    
    2,393
    
    
    
    1,130
    
    
    
    
    
    
    
    Employer Contribution
    
    
    750
    
    
    
    1,100
    
    
    
    586
    
    
    
    549Benefits Paid and Actual Expenses
    
    
    (1,041
    )
    
    
    (1,019
    )
    
    
    (586
    )
    
    
    (549
    )Fair Value of Plan Assets at End of Year
    
    
    22,432
    
    
    
    20,330
    
    
    
    
    
    
    
    Funded Status
    
    $
    (1,252
    )
    
    $
    (2,993
    )
    
    $
    (8,048
    )
    
    $
    (9,164
    )Key AssumptionsDiscount Rate
    
    
    5.75
    %
    
    
    5.75
    %
    
    
    5.75
    %
    
    
    5.75
    %Rate of Compensation Increase
    
    
    5.00
    %
    
    
    5.00
    %
    
    
    N/A
    
    
    
    N/A
 F-15
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (All Amounts in Thousands)
    
    Pension Plan
    
    
    Postretirement BenefitsYear Ended December 31,
    
    
    Year Ended December 31,2006
    
    
    2005
    
    
    2006
    
    
    2005Prior Service Cost
    
    $
    
    
    
    $
    
    
    
    $
    143
    
    
    $
    Net Loss
    
    
    (2,381
    )
    
    
    
    
    
    
    (530
    )
    
    
    Change in Other Comprehensive Income
    
    $
    (2,381
    )
    
    $
    
    
    
    $
    (387
    )
    
    $
    
  (All Amounts in Thousands)
    
    Pension Plan
    
    
    Postretirement BenefitsYear Ended December 31,
    
    
    Year Ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004Components of Net Periodic Benefit CostService Cost
    
    $
    676
    
    
    $
    668
    
    
    $
    548
    
    
    $
    63
    
    
    $
    90
    
    
    $
    77Interest Cost
    
    
    1,311
    
    
    
    1,248
    
    
    
    1,229
    
    
    
    453
    
    
    
    536
    
    
    
    550Expected Return on Plan Assets
    
    
    (1,534
    )
    
    
    (1,440
    )
    
    
    (1,395
    )
    
    
    
    
    
    
    
    
    
    
    Amortization of Prior Service Cost
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    (22
    )
    
    
    (22
    )
    
    
    (21
    )Amortization of Net Actuarial Loss
    
    
    162
    
    
    
    212
    
    
    
    86
    
    
    
    
    
    
    
    131
    
    
    
    73Net Periodic Benefit Cost
    
    $
    615
    
    
    $
    688
    
    
    $
    476
    
    
    $
    494
    
    
    $
    735
    
    
    $
    679Special Termination Benefits
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Curtailment Gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (45
    )
    
    
    
    
    
    
    Net Periodic Benefit Cost After Special
Termination Benefits and Curtailment Gain
    
    $
    625
    
    
    $
    688
    
    
    $
    476
    
    
    $
    449
    
    
    $
    735
    
    
    $
    679Key AssumptionsDiscount Rate
    
    
    5.75
    %
    
    
    5.50
    %
    
    
    6.25
    %
    
    
    5.75
    %
    
    
    5.50
    %
    
    
    6.25
    %Expected Return on Plan Assets
    
    
    7.75
    %
    
    
    7.75
    %
    
    
    8.00
    %
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/ARate of Compensation Increase
    
    
    5.00
    %
    
    
    5.00
    %
    
    
    5.50
    %
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
   (All Amounts in Thousands)
    
    1% Increase
    
    
    1% DecreaseChange in total service and interest cost components
for the year ended December 31, 2006
    
    $
    55
    
    
    $
    (46
    )Change in postretirement benefit obligation as of December 31, 2006
    
    
    881
    
    
    
    (743
    )
 F-16
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  (All Amounts in Thousands)
 Fiscal Year
    
    Pension
    
    
    PostretirementBeginning
    
    Plan
    
    
    Benefits2007
    
    $
    1,091
    
    
    $
    4752008
    
    
    1,159
    
    
    
    4992009
    
    
    1,204
    
    
    
    5202010
    
    
    1,264
    
    
    
    5482011
    
    
    1,343
    
    
    
    5742012-2016
    
    
    7,648
    
    
    
    2,991
    401(k) Savings Plan
  Stock Incentive Plan
   F-17
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Life Insurance
  NOTE G  INCOME TAXES
         F-18
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   December 31,
    
    
    December 31,(All Amounts in Thousands)
    
    2006
    
    
    2005Liabilities:Fixed Assets
    
    $
    24,044
    
    
    $
    28,738Deferred Charges
    
    
    2,338
    
    
    
    2,401Unterminated Voyage Revenue/Expense
    
    
    72
    
    
    
    39Other Liabilities
    
    
    5,926
    
    
    
    3,542Total Liabilities
    
    
    32,380
    
    
    
    34,720Assets:Insurance and Claims Reserve
    
    
    471
    
    
    
    301Post-Retirement Benefits
    
    
    (395
    )
    
    
    (386
    )Alternative Minimum Tax Credit
    
    
    (4,577
    )
    
    
    (4,577
    )Net Operating Loss
Carryforward/Unutilized Deficit
    
    
    (12,242
    )
    
    
    (15,355
    )Valuation Allowance
    
    
    417
    
    
    
    3,594Worker Retention Credit
    
    
    (293
    )
    
    
    (293
    )Other Assets
    
    
    (3,991
    )
    
    
    (4,984
    )Total Assets
    
    
    (20,610
    
    
    
    (21,700
    )Total Deferred Tax Liability, Net
    
    $
    11,770
    
    
    $
    13,020
  Year Ended December 31,2006
    
    
    2005
    
    
    2004Statutory Rate
    
    
    35.00
    %
    
    
    35.00
    %
    
    
    35.00
    %State Income Taxes
    
    
    0.03
    %
    
    
    1.14
    %
    
    
    2.35
    %Effect of Tonnage Tax Rate
    
    
    (20.99
    %)
    
    
    (152.40
    %)
    
    
    Jobs Creation Act Adjustment
    
    
    
    
    
    
    (17.37
    %)
    
    
    (776.11
    %)Change in Valuation Allowance
    
    
    (23.03
    %)
    
    
    21.67
    %
    
    
    Employee Retention Credit
    
    
    
    
    
    
    (14.54
    %)
    
    
    Other, Primarily Non-deductible Expenditures
    
    
    0.02
    %
    
    
    4.57
    %
    
    
    21.50
    %(8.97
    %)
    
    
    (121.93
    %)
    
    
    (717.26
    %)
    F-19
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE H  TRANSACTIONS WITH RELATED PARTIES
 (See Note M)
 (See Note M)
  NOTE I  COMMITMENTS AND CONTINGENCIES
 Commitments
    Rail-Ferry Service
 Contingencies
 see Note E for further
discussion of our self-retention insurance program
  F-20
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  NOTE J  LEASES
 Direct Financing Leases
  ReceivablesUnder(All Amounts in Thousands)
    
    Financing LeasesYear Ended December 31,2007
    
    $
    14,0772008
    
    
    14,0992009
    
    
    13,4982010
    
    
    13,1122011
    
    
    13,097Thereafter
    
    
    73,171Total Minimum Lease Payments Receivable
    
    
    141,054Estimated Residual Value of Leased Property
    
    
    8,052Less Unearned Income
    
    
    (74,209
    )Total Net Investment in Direct Financing Leases
    
    
    74,897Current Portion
    
    
    (4,400
    )Long-Term Net Investment in Direct Financing Leases at December 31, 2006
    
    $
    70,497
 F-21
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  ReceivablesUnder(All Amounts in Thousands)
    
    Financing LeasesYear Ended December 31,2006
    
    $
    14,0772007
    
    
    14,0772008
    
    
    14,0992009
    
    
    13,4982010
    
    
    13,112Thereafter
    
    
    86,268Total Minimum Lease Payments Receivable
    
    
    155,131Estimated Residual Value of Leased Property
    
    
    8,052Less Unearned Income
    
    
    (84,618
    )Total Net Investment in Direct Financing Leases
    
    
    78,565Current Portion
    
    
    (3,923
    )Long-Term Net Investment in Direct Financing Leases at December 31, 2005
    
    $
    74,642
 Operating Leases
  See Note B
      F-22
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Payments Under Operating LeasesU.S. Flag
    
    
    Foreign Flag
    
    
    Other(All Amounts in Thousands)
    
    PCTCs
    
    
    PCTC
    
    
    Leases
    
    
    TotalYear Ended December 31,2007
    
    $
    9,596
    
    
    $
    6,340
    
    
    $
    1,263
    
    
    $
    17,1992008
    
    
    9,596
    
    
    
    6,340
    
    
    
    1,281
    
    
    
    17,2172009
    
    
    9,596
    
    
    
    6,340
    
    
    
    474
    
    
    
    16,4102010
    
    
    8,316
    
    
    
    6,340
    
    
    
    499
    
    
    
    15,1552011
    
    
    4,474
    
    
    
    6,340
    
    
    
    499
    
    
    
    11,313Thereafter
    
    
    7,830
    
    
    
    28,530
    
    
    
    9,988
    
    
    
    46,348Total Future Minimum Payments
    
    $
    49,408
    
    
    $
    60,230
    
    
    $
    14,004
    
    
    $
    123,642
 NOTE K  DEFERRED CHARGES AND ACQUIRED CONTRACT COSTS
  December 31,
    
    
    December 31,(All Amounts in Thousands)
    
    2006
    
    
    2005Drydocking Costs
    
    $
    12,915
    
    
    $
    11,711Financing Charges and Other
    
    
    1,662
    
    
    
    2,128Acquired Contract Costs
    
    
    4,729
    
    
    
    6,185$
    19,306
    
    
    $
    20,024
  NOTE L  SIGNIFICANT OPERATIONS
 Major Customers
 See Note I
 See Note A  Maritime Security Program"
   Concentrations
   F-23
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Geographic Information
 Time
Charter Contracts, Contract of Affreightment, Rail-Ferry Service Other Liner Services
 Year Ended December 31,(All Amounts in Thousands)
    
    2006
    
    
    2005
    
    
    2004United States
    
    $
    96,786
    
    
    $
    94,300
    
    
    $
    86,568Asian Countries
    
    
    69,197
    
    
    
    62,191
    
    
    
    59,309Rail-Ferry Service Operating Between U.S. Gulf and Mexico
    
    
    18,428
    
    
    
    11,051
    
    
    
    15,880Liner Services Operating Between:U.S. Gulf / East Coast Ports and Ports in Middle East
    
    
    27,546
    
    
    
    26,816
    
    
    
    30,008U.S. Gulf / East Coast Ports and Ports in Northern Europe
    
    
    61,871
    
    
    
    66,549
    
    
    
    65,705Other Countries
    
    
    1,053
    
    
    
    1,249
    
    
    
    1,694Total Revenues
    
    $
    274,881
    
    
    $
    262,156
    
    
    $
    259,164
 Operating Segments
  Liner Services Liner
Services
 Time Charter Contracts Time Charter Contracts
 Contract of Affreightment (COA) COA
 Rail-Ferry Service
 Other Other
 F-24
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Liner
    
    
    Time Charter
    
    
    
    
    
    
    Rail-Ferry(All Amounts in Thousands)
    
    Services
    
    
    Contracts
    
    
    COA
    
    
    Service
    
    
    Other
    
    
    Elim.
    
    
    Total2006Revenues from External Customers
    
    $
    89,417
    
    
    $
    148,581
    
    
    $
    16,081
    
    
    $
    18,427
    
    
    $
    2,375
    
    
    
    
    
    
    $
    274,881Intersegment Revenues
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,582
    
    
    $
    (13,582
    )
    
    
    Depreciation and Amortization
    
    
    5,994
    
    
    
    18,267
    
    
    
    2,744
    
    
    
    4,598
    
    
    
    86
    
    
    
    
    
    
    
    31,689Impairment Loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,866
    )
    
    
    
    
    
    
    
    
    
    
    (8,866
    )Gross Voyage (Loss) Profit
    
    
    (8,681
    )
    
    
    29,915
    
    
    
    4,142
    
    
    
    (14,002
    )
    
    
    396
    
    
    
    
    
    
    
    11,770Interest Expense
    
    
    609
    
    
    
    7,149
    
    
    
    1,323
    
    
    
    2,036
    
    
    
    30
    
    
    
    
    
    
    
    11,147Gain on Sale of Assets
    
    
    4,914
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    211
    
    
    
    
    
    
    
    5,125Segment (Loss) Profit
    
    
    (4,376
    )
    
    
    22,766
    
    
    
    2,819
    
    
    
    (16,038
    )
    
    
    577
    
    
    
    
    
    
    
    5,748Segment Assets
    
    
    15,718
    
    
    
    184,659
    
    
    
    32,468
    
    
    
    83,082
    
    
    
    813
    
    
    
    
    
    
    
    316,740Expenditures for Segment Assets
    
    
    6,400
    
    
    
    6,990
    
    
    
    
    
    
    
    16,429
    
    
    
    412
    
    
    
    
    
    
    
    30,2312005Revenues from External Customers
    
    $
    93,365
    
    
    $
    138,177
    
    
    $
    16,693
    
    
    $
    11,051
    
    
    $
    2,870
    
    
    
    
    
    
    $
    262,156Intersegment Revenues
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,614
    
    
    $
    (12,614
    )
    
    
    Depreciation and Amortization
    
    
    4,834
    
    
    
    17,822
    
    
    
    2,747
    
    
    
    5,008
    
    
    
    39
    
    
    
    
    
    
    
    30,450Gross Voyage (Loss) Profit
    
    
    (1,492
    )
    
    
    27,774
    
    
    
    4,692
    
    
    
    (6,684
    )
    
    
    1,490
    
    
    
    
    
    
    
    25,780Interest Expense
    
    
    631
    
    
    
    6,162
    
    
    
    1,148
    
    
    
    1,651
    
    
    
    34
    
    
    
    
    
    
    
    9,626Gain on Sale of Other Assets
    
    
    584
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    584Segment (Loss) Profit
    
    
    (1,539
    )
    
    
    21,612
    
    
    
    3,544
    
    
    
    (8,335
    )
    
    
    1,456
    
    
    
    
    
    
    
    16,738Segment Assets
    
    
    22,680
    
    
    
    194,575
    
    
    
    35,202
    
    
    
    90,578
    
    
    
    1,175
    
    
    
    
    
    
    
    344,210Expenditures for Segment Assets
    
    
    3,590
    
    
    
    1,038
    
    
    
    
    
    
    
    35,035
    
    
    
    380
    
    
    
    
    
    
    
    40,0432004Revenues from External Customers
    
    $
    95,713
    
    
    $
    113,954
    
    
    $
    16,562
    
    
    $
    15,881
    
    
    $
    17,054
    
    
    
    
    
    
    $
    259,164Intersegment Revenues
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,264
    
    
    $
    (12,264
    )
    
    
    Depreciation and Amortization
    
    
    5,279
    
    
    
    13,879
    
    
    
    2,709
    
    
    
    4,090
    
    
    
    145
    
    
    
    
    
    
    
    26,102Gross Voyage (Loss) Profit
    
    
    (1,563
    )
    
    
    26,914
    
    
    
    5,411
    
    
    
    (4,304
    )
    
    
    1,588
    
    
    
    
    
    
    
    28,046Interest Expense
    
    
    749
    
    
    
    6,515
    
    
    
    1,430
    
    
    
    1,853
    
    
    
    38
    
    
    
    
    
    
    
    10,585Loss on Sale of Other Assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7
    )
    
    
    
    
    
    
    (7
    )Segment (Loss) Profit
    
    
    (2,312
    )
    
    
    20,399
    
    
    
    3,981
    
    
    
    (6,157
    )
    
    
    1,543
    
    
    
    
    
    
    
    17,454Segment Assets
    
    
    23,126
    
    
    
    182,447
    
    
    
    37,971
    
    
    
    49,839
    
    
    
    1,300
    
    
    
    
    
    
    
    294,683Expenditures for Segment Assets
    
    
    988
    
    
    
    29,946
    
    
    
    6
    
    
    
    232
    
    
    
    202
    
    
    
    
    
    
    
    31,374
  F-25
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  (All Amounts in Thousands)
    
    Year Ended December 31,Profit or Loss:
    
    2006
    
    2005
    
    2004Total Profit for Reportable Segments
    
    $
    5,748
    
    
    $
    16,738
    
    
    $
    17,454Unallocated Amounts:Administrative and General Expenses
    
    
    (18,765
    )
    
    
    (16,052
    )
    
    
    (15,536
    )Gain (Loss) on Sale of Investments
    
    
    23,058
    
    
    
    287
    
    
    
    (623
    )Investment Income
    
    
    1,397
    
    
    
    1,111
    
    
    
    691Loss on Early Extinguishment of Debt
    
    
    (248
    )
    
    
    (68
    )
    
    
    (361
    )Income from Continuing Operations Before (Benefit)
Provision for Income Taxes and Equity in Net
Income of Unconsolidated Entities
    
    $
    11,190
    
    
    $
    2,016
    
    
    $
    1,625
 December 31,
    
    December 31,Assets:
    
    2006
    
    2005Total Assets for Reportable Segments
    
    $
    316,740
    
    
    $
    344,210Unallocated Amounts:Current Assets
    
    
    88,779
    
    
    
    73,818Investment in Unconsolidated Entities
    
    
    12,409
    
    
    
    14,926Restricted Cash
    
    
    
    
    
    
    6,541Due from Related Parties
    
    
    4,015
    
    
    
    1,600Other Assets
    
    
    6,099
    
    
    
    8,412Total Assets
    
    $
    428,042
    
    
    $
    449,507
 NOTE M  UNCONSOLIDATED ENTITIES
 Cement Carrier Company
   F-26
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  December 31,(Amounts in Thousands)
    
    2005Current Assets
    
    $
    14,988Noncurrent Assets
    
    $
    115,566Current Liabilities
    
    $
    13,465Noncurrent Liabilities
    
    $
    90,701
 Nine MonthsEnded Sept. 30,
    
    Year Ended December 31,(Amounts in Thousands)
    
    2006
    
    2005
    
    2004Operating Revenues
    
    $
    25,942
    
    
    $
    29,551
    
    
    $
    27,405Operating Income
    
    $
    7,390
    
    
    $
    10,833
    
    
    $
    18,512Net Income
    
    $
    3,277
    
    
    $
    9,481
    
    
    $
    5,006
 Bulk Carriers
    December 31,
    
    December 31,(Amounts in Thousands)
    
    2006
    
    2005Current Assets
    
    $
    5,351
    
    
    $
    2,584Noncurrent Assets
    
    $
    111,300
    
    
    $
    115,903Current Liabilities
    
    $
    8,143
    
    
    $
    9,269Noncurrent Liabilities
    
    $
    90,047
    
    
    $
    97,000
 Year Ended December 31,(Amounts in Thousands)
    
    2006
    
    
    2005
    
    
    2004Operating Revenues
    
    $
    25,174
    
    
    $
    15,277
    
    
    $
    18,790Operating Income
    
    $
    13,846
    
    
    $
    9,118
    
    
    $
    13,594Net Income
    
    $
    7,089
    
    
    $
    6,448
    
    
    $
    11,578
 Terminal Management Company
 Rail-Ferry Service Rail-Ferry Service see Note H see Note H
 F-27
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Transloading and Storage Facility Company
 Rail-Ferry Service see Note H
 NOTE N  SUPPLEMENTAL CASH FLOW INFORMATION
 Year Ended December 31,(All Amounts in Thousands)
    
    2006
    
    
    2005
    
    
    2004Cash Payments:Interest Paid
    
    $
    10,949
    
    
    $
    9,603
    
    
    $
    10,370Taxes Paid
    
    $
    557
    
    
    $
    470
    
    
    $
    1,072
   NOTE O  FAIR VALUE OF FINANCIAL INSTRUMENTS AND DERIVATIVES
  December 31,
    
    
    December 31,2006
    
    
    2005Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair(All Amounts in Thousands)
    
    Amount
    
    
    Value
    
    
    Amount
    
    
    ValueInterest Rate Swap Agreements
    
    $
    959
    
    
    $
    959
    
    
    $
    217
    
    
    $
    217Foreign Currency Contracts
    
    $
    194
    
    
    $
    194
    
    
    $
    33
    
    
    $
    33Long-Term Debt
    
    
    ($149,234
    )
    
    
    ($149,508
    )
    
    
    ($171,995
    )
    
    
    ($172,972
    )
   Interest Rate Swap Agreements
  F-28
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Foreign Currency Contracts
   Long-Term Debt
  Amounts Due from Related Parties
  Restricted Cash
  Marketable Securities
  (All Amounts in Thousands)
 December 31, 2006Net Gain (Loss)Security Type
    
    Carrying Value
    
    Fair Value
    
    Net of TaxesEquity Securities
    
    $
    3,644
    
    
    $
    4,446
    
    
    $
    521Corporate Debt Securities
    
    
    2,127
    
    
    
    2,099
    
    
    
    (20
    )$
    5,771
    
    
    $
    6,545
    
    
    $
    501
 December 31, 2005Net Gain (Loss)Security Type
    
    Carrying Value
    
    Fair Value
    
    Net of TaxesEquity Securities
    
    $
    3,487
    
    
    $
    4,288
    
    
    $
    521Debt Securities Issued by U.S. Treasury
    
    
    250
    
    
    
    249
    
    
    
    Corporate Debt Securities
    
    
    2,127
    
    
    
    2,077
    
    
    
    (33
    )$
    5,864
    
    
    $
    6,614
    
    
    $
    488
 F-29
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE P  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
  December 31,
    
    December 31,(All Amounts in Thousands)
    
    2006
    
    2005Accrued Voyage Expenses
    
    $
    26,411
    
    
    $
    26,783Self-Insurance Liability
    
    
    2,868
    
    
    
    1,985Lease Incentive Obligation
    
    
    1,839
    
    
    
    1,700Accrued Salaries and Benefits
    
    
    1,706
    
    
    
    97Accrued Interest Expense
    
    
    623
    
    
    
    942Accrued Customs Liability
    
    
    578
    
    
    
    166Accrued Insurance Premiums
    
    
    362
    
    
    
    431Trade Accounts Payable
    
    
    31
    
    
    
    3,585Other Short-Term Liabilities
    
    
    
    
    
    
    37Accrued Leasehold Improvement Costs
    
    
    
    
    
    
    7,527Accrued Payroll Taxes
    
    
    
    
    
    
    4,170$
    34,418
    
    
    $
    47,423
 NOTE Q  DISCONTINUED OPERATIONS
   Year Ended December 31,(All Amounts in Thousands)
    
    2005
    
    
    2004Discontinued Operations:Loss from Operations
    
    $
    (1,133
    )
    
    $
    (629
    )Loss on Disposal of Assets
    
    
    (769
    )
    
    
    Tax Benefit
    
    
    632
    
    
    
    220$
    (1,270
    )
    
    $
    (409
    )
  F-30
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE R  QUARTERLY FINANCIAL INFORMATION  (Unaudited)
 (All Amounts in Thousands Except Share Data)
 Quarter EndedMarch 31
    
    
    June 30
    
    
    Sept. 30
    
    
    Dec. 312006
    
    
    Revenues
    
    $
    68,330
    
    
    $
    70,080
    
    
    $
    77,633
    
    
    $
    58,838
    (1)Expenses
    
    
    61,592
    
    
    
    65,925
    
    
    
    73,375
    
    
    
    53,353Impairment Loss
    
    
    
    
    
    
    8,866
    
    
    
    
    
    
    
    -Gross Voyage Profit (Loss)
    
    
    6,738
    
    
    
    (4,711
    )
    
    
    4,258
    
    
    
    5,485Income (Loss) from Continuing Operations
    
    
    2,086
    
    
    
    (6,464
    )
    
    
    (936
    )
    
    
    22,362
    (2)Net Income (Loss) Available to Common Stockholders
    
    
    1,486
    
    
    
    (7,064
    )
    
    
    (1,536
    )
    
    
    21,762Basic and Diluted Earnings (Loss) per Common Share:Net Income (Loss) Available to Common Stockholders -
Basic
    
    
    0.24
    
    
    
    (1.15
    )
    
    
    (0.25
    )
    
    
    3.56Net Income (Loss) Available to Common Stockholders 
Diluted
    
    
    0.24
    
    
    
    (1.15
    )
    
    
    (0.25
    )
    
    
    2.75
    (3)2005
    
    
    Revenues
    
    $
    68,823
    
    
    $
    67,731
    
    
    $
    63,561
    
    
    $
    62,041Expenses
    
    
    59,684
    
    
    
    59,200
    
    
    
    59,358
    
    
    
    58,134Gross Voyage Profit
    
    
    9,139
    
    
    
    8,531
    
    
    
    4,203
    
    
    
    3,907Income (Loss) from Continuing Operations
    
    
    4,423
    
    
    
    4,169
    
    
    
    (202
    )
    
    
    (124
    )Loss from Discontinued Operations
    
    
    (330
    )
    
    
    (196
    )
    
    
    (643
    )
    
    
    (101
    )Net Income (Loss) Available to Common Stockholders
    
    
    3,526
    
    
    
    3,373
    
    
    
    (1,445
    )
    
    
    (825
    )Basic and Diluted Earnings (Loss) per Common Share:Net Income (Loss) Available to Common Stockholders  Basic
    
    
    0.58
    
    
    
    0.55
    
    
    
    (0.24
    )
    
    
    (0.14
    )Net Income (Loss) Available to Common Stockholders  Diluted
    
    
    0.51
    (3)
    
    
    0.49
    (3)
    
    
    (0.24
    )
    
    
    (0.13
    )
 (1)
    
    The decrease in revenue in the fourth quarter of 2006 was primarily related to a decrease
in cargo volume on our LASH liner service due in part to the sale of one of the vessels in
that service.
 (2)
    
    Income from continuing operations in the fourth quarter of 2006 included a gain of
$22,598,000, before taxes, on the sale of our entire 26.1% investment in Belden Shipholding
Pte Ltd, a company that owns and operates cement carrier vessels. The sale was pursuant to
an unsolicited offer.
 (3)
    
    Restated to correct the calculation of the effects of the convertible shares from
convertible exchangeable preferred stock (see Note S).
 F-31
    Table of Contents  INTERNATIONAL SHIPHOLDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE S  EARNINGS PER SHARE
 in thousands except share
amounts):
 Year Ended December 31,2006
    
    
    2005
    
    
    2004NumeratorNet Income available to Common Stockholders
    
    $
    14,648
    
    
    $
    4,629
    
    
    $
    12,785Plus Preferred Stock Dividends
    
    
    2,400
    
    
    
    
    
    
    
    $
    17,048
    
    
    $
    4,629
    
    
    $
    12,785DenominatorFor Basic Earnings Per Common Share
    
    
    6,116,036
    
    
    
    6,083,005
    
    
    
    6,082,887Plus:Effect of dilutive stock options
    
    
    6,542
    
    
    
    31,505
    
    
    
    9,415Effect of dilutive convertible shares
    
    
    2,000,000
    
    
    
    
    
    
    
    For Diluted Earnings Per Common Share
    
    
    8,122,578
    
    
    
    6,114,510
    
    
    
    6,092,302Basic Earnings per CommonShare
    
    $
    2.40
    
    
    $
    0.76
    
    
    $
    2.10Diluted Earnings per Common Share
    
    $
    2.10
    
    
    $
    0.75
    
    
    $
    2.10
  F-32
    Table of Contents  SIGNATURES
  INTERNATIONAL SHIPHOLDING CORPORATION 
(Registrant)May 15, 2007
    By  /s/ Manuel G. EstradaManuel G. EstradaVice President and Chief Financial Officer  INTERNATIONAL SHIPHOLDING CORPORATION 
(Registrant)May 15, 2007
    By  /s/ Manuel G. EstradaManuel G. EstradaVice President and Chief Financial Officer S-1
    Table of Contents  EXHIBIT INDEX
 ExhibitNumber
    
    Description(31.1)
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002(31.2)
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002(32.1)
    
    Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(32.2)
    
    Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002