Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Feb. 21, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Matson, Inc.
Entity Central Index Key	0000003453
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,368,198,911
Entity Common Stock, Shares Outstanding		43,119,933
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Revenue:
Ocean Transportation	$ 1,541.1	$ 1,498.0	$ 1,278.4
Logistics	400.5	386.9	435.8
Total Operating Revenue	1,941.6	1,884.9	1,714.2
Costs and Expenses:
Operating costs	1,619.1	1,510.1	1,433.5
Equity in income of related party Terminal Joint Venture	(15.8)	(16.5)	(6.6)
Selling, general and administrative	185.1	195.0	147.3
Total Costs and Expenses	1,788.4	1,688.6	1,574.2
Operating Income	153.2	196.3	140.0
Interest expense	(24.1)	(18.5)	(17.3)
Income before Income Taxes	129.1	177.8	122.7
Income tax expense	(48.6)	(74.8)	(51.9)
Net Income	80.5	103.0	70.8
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	80.5	103.0	70.8
Other Comprehensive Income (Loss):
Net gain (loss) in prior service cost	0.7	5.1	(31.4)
Amortization of prior service cost included in net periodic pension cost	(1.3)	(1.3)	(1.3)
Amortization of net loss included in net periodic pension cost	1.2	1.8	2.5
Foreign currency translation and other adjustments	0.1	0.7	0.4
Other comprehensive income	0.1	0.1
Total Other Comprehensive Income (Loss)	0.8	6.4	(29.8)
Comprehensive Income	$ 81.3	$ 109.4	$ 41.0
Basic Earnings Per-Share: (in dollars per share)	$ 1.87	$ 2.37	$ 1.65
Diluted Earnings Per-Share: (in dollars per share)	$ 1.85	$ 2.34	$ 1.63
Weighted Average Number of Shares Outstanding:
Basic (in shares)	43.1	43.5	43.0
Diluted (in shares)	43.5	44.0	43.4

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 13.9	$ 25.5
Accounts receivable, net	189.5	192.8
Prepaid expenses and other assets	70.8	59.6
Total current assets	274.2	277.9
Long-term Assets:
Investment in related party Terminal Joint Venture	82.4	66.4
Property and equipment, net	949.2	860.3
Goodwill	323.7	241.6
Intangible assets, net	236.6	139.1
Capital Construction Fund - cash on deposit	31.2
Deferred dry-docking costs	89.1	57.6
Other long-term assets	29.1	26.9
Total assets	2,015.5	1,669.8
Current Liabilities:
Current portion of debt	31.8	22.0
Accounts payable	170.5	164.9
Accruals and other liabilities	76.9	110.7
Total current liabilities	279.2	297.6
Long-term Liabilities:
Long-term debt	707.1	407.9
Deferred income taxes	348.8	310.5
Employee benefit plans	108.5	109.3
Uninsured claims and related liabilities	40.3	37.7
Multi-employer withdrawal liabilities	60.1	56.2
Total long-term liabilities	1,264.8	921.6
Commitments and Contingencies (Note 14)
Shareholders' Equity:
Common stock — common stock without par value; authorized, 150.0 million shares ($0.75 stated value per share); outstanding, 42.9 million shares in 2016 and 43.5 million shares in 2015	32.1	32.6
Additional paid in capital	289.8	287.9
Accumulated other comprehensive loss, net	(46.1)	(46.9)
Retained earnings	195.7	177.0
Total shareholders' equity	471.5	450.6
Total liabilities and shareholders' equity	$ 2,015.5	$ 1,669.8

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Common stock, shares authorized	150,000,000	150,000,000
Common stock, stated value (in dollars per share)	$ 0.75	$ 0.75
Common stock, shares outstanding	42,900,000	43,500,000

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net income	$ 80.5	$ 103.0	$ 70.8
Reconciling adjustments:
Depreciation and amortization	97.1	83.4	69.7
Deferred income taxes	39.7	50.7	2.7
Loss (gain) on disposal of property	0.9	1.2	(1.5)
Post-retirement (income) expense	(1.4)	2.0	(5.9)
Share-based compensation expense	11.2	12.2	8.7
Equity in income of related party Terminal Joint Venture	(15.8)	(16.5)	(6.6)
Distributions from Terminal Joint Venture		14.0
Tax benefit from equity issuance	2.2	2.6	0.8
Excess tax benefit from stock-based compensation	(0.3)	(0.9)	(1.1)
Changes in assets and liabilities:
Accounts receivable, net	14.4	13.5	(15.3)
Deferred dry-docking payments	(59.2)	(25.7)	(14.1)
Deferred dry-docking amortization	38.9	23.1	21.1
Prepaid expenses and other assets	(13.6)	(13.2)	17.3
Accounts payable, accruals and other liabilities	0.5	(9.4)	13.5
Other long-term liabilities	(37.3)	5.3	5.6
Net cash provided by operating activities	157.8	245.3	165.7
Cash Flows From Investing Activities:
Capital expenditures	(84.9)	(46.5)	(27.5)
Capitalized vessel construction expenditures	(94.5)	(21.3)	(0.4)
Proceeds from disposal of property and equipment	2.5	5.5	4.9
Cash deposits into Capital Construction Fund	(123.4)	(77.9)	(31.9)
Withdrawals from Capital Construction Fund	92.2	105.4	4.4
Payments for membership interests in Span Alaska, net of cash acquired	(112.6)
Payments for Horizon’s common stock, net of cash acquired, and other acquisitions		(29.0)
Net cash used in investing activities	(320.7)	(63.8)	(50.5)
Cash Flows From Financing Activities:
Proceeds from issuance of debt	275.0	75.0	100.0
Payments of debt	(20.5)	(20.5)	(11.4)
Payment of capital leases	(1.7)	(1.5)	(1.1)
Proceeds from revolving credit facility	1,103.0	588.0
Repayments of revolving credit facility	(1,048.0)	(588.0)
Payment of financing costs		(0.9)
Proceeds from issuance of common stock	1.2	2.2	5.8
Dividends paid	(32.2)	(30.8)	(28.7)
Repurchased of common stock	(38.0)	(4.9)
Tax withholding related to net share settlements of restricted stock units	(5.9)	(2.9)	(2.0)
Excess tax benefit from stock-based compensation	0.3	0.9	1.1
Payments of Span Alaska debt	(81.9)
Payments of Horizon debt and redemption of warrants, net		(466.0)
Net cash provided by (used in) financing activities	151.3	(449.4)	63.7
Net (Decrease) Increase in Cash and Cash Equivalents	(11.6)	(267.9)	178.9
Cash and Cash Equivalents, Beginning of the Year	25.5	293.4	114.5
Cash and Cash Equivalents, End of the Year	13.9	25.5	293.4
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	19.8	17.7	15.2
Income tax paid	15.6	40.0	30.2
Non-cash Information:
Capital expenditures included in accounts payable and accrued liabilities	$ 4.1	13.5	$ 1.6
Capital lease obligations		$ 1.8

Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at the beginning of the period at Dec. 31, 2013	$ 32.1	$ 261.9	$ (23.5)	$ 67.7	$ 338.2
Balance (in shares) at Dec. 31, 2013	42.8
Increase (Decrease) in Stockholders' Equity
Net income				70.8	70.8
Other comprehensive income (loss), net of tax			(29.8)		(29.8)
Excess tax benefit and share withholding		0.8			0.8
Share-based compensation		8.7			8.7
Shares issued	$ 0.3	3.5			3.8
Shares issued (in shares)	0.4
Dividends ($0.74, $0.70, and $0.66 per share) for the years 2016, 2015 and 2014 respectively				(28.7)	(28.7)
Balance at the end of the period at Dec. 31, 2014	$ 32.4	274.9	(53.3)	109.8	363.8
Balance (in shares) at Dec. 31, 2014	43.2
Increase (Decrease) in Stockholders' Equity
Net income				103.0	103.0
Other comprehensive income (loss), net of tax			6.4		6.4
Excess tax benefit and share withholding		2.6			2.6
Share-based compensation		12.2			12.2
Shares issued	$ 0.3	(1.0)			(0.7)
Shares issued (in shares)	0.4
Shares repurchased	$ (0.1)	(0.8)		(5.0)	(5.9)
Shares repurchased (in shares)	(0.1)
Dividends ($0.74, $0.70, and $0.66 per share) for the years 2016, 2015 and 2014 respectively				(30.8)	(30.8)
Balance at the end of the period at Dec. 31, 2015	$ 32.6	287.9	(46.9)	177.0	$ 450.6
Balance (in shares) at Dec. 31, 2015	43.5				43.5
Increase (Decrease) in Stockholders' Equity
Net income				80.5	$ 80.5
Other comprehensive income (loss), net of tax			0.8		0.8
Excess tax benefit and share withholding		2.2			2.2
Share-based compensation		11.2			11.2
Shares issued	$ 0.2	(4.9)			(4.7)
Shares issued (in shares)	0.3
Shares repurchased	$ (0.7)	(6.6)		(29.6)	(36.9)
Shares repurchased (in shares)	(0.9)
Dividends ($0.74, $0.70, and $0.66 per share) for the years 2016, 2015 and 2014 respectively				(32.2)	(32.2)
Balance at the end of the period at Dec. 31, 2016	$ 32.1	$ 289.8	$ (46.1)	$ 195.7	$ 471.5
Balance (in shares) at Dec. 31, 2016	42.9				42.9

DESCRIPTION OF THE BUSINESS	12 Months Ended
DESCRIPTION OF THE BUSINESS	Dec. 31, 2016
DESCRIPTION OF THE BUSINESS
DESCRIPTION OF THE BUSINESS	1.DESCRIPTION OF THE BUSINESS Matson, Inc., a holding company incorporated in January 2012 in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. The Company consists of two segments, Ocean Transportation and Logistics. For financial information by segment for the three years ended December 31, 2016, see Note 15. Ocean Transportation: Matson’s Ocean Transportation business is conducted through Matson Navigation Company, Inc. (“MatNav”), a wholly-owned subsidiary of Matson, Inc. Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia. MatNav also operates a premium, expedited service from China to Long Beach, California, and provides services to various islands in the South Pacific. In addition, subsidiaries of MatNav provide container stevedoring, container equipment maintenance and other terminal services for MatNav and other ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor. Matson’s fleet of 22 owned vessels and five chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc. (“SSA”), a subsidiary of Carrix, Inc. SSAT provides terminal and stevedoring services to various carriers at six terminal facilities on the U.S. West Coast, including to MatNav at three of those facilities (“Terminal Joint Venture”). Matson records its share of income in the Terminal Joint Venture in operating costs in the Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations. Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics is an asset-light business that provides a variety of logistic services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively “Transportation Brokerage Services”); (ii) less-than-container load consolidation (“LCL”) and freight forwarding services (collectively “Freight Forwarding Services”); (iii) warehousing and distribution services; and (iv) supply chain management and other services. Recent Acquisitions: On August 4, 2016, Matson Logistics completed its acquisition of Span Intermediate, LLC (“Span Alaska”), a market leading provider of LCL consolidation and freight forwarding services to Alaska (the “Span Alaska Acquisition”). On May 29, 2015, Matson completed its acquisition of Horizon Lines, Inc. (“Horizon”). As a result, Matson acquired Horizon’s Alaska operations and assumed all of Horizon’s non-Hawaii assets and liabilities (the “Horizon Acquisition”) (see Note 3).

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2.SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation: The Consolidated Financial Statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of significant intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. A controlling financial interest is one in which the Company has a majority voting interest or one in which the Company is the primary beneficiary of a variable interest entity. The Company accounts for its investment in the Terminal Joint Venture using the equity method of accounting (see Note 4). The Consolidated Financial Statements include the accounts and activities of Horizon from acquisition date on May 29, 2015, and Span Alaska from acquisition date on August 4, 2016 (see Note 3).

Fiscal Year: The period end for Matson, Inc. is December 31. The period end for MatNav occurred on the last Friday in December, except for Matson Logistics Warehousing, Inc. whose period closed on December 31. Included in these Consolidated Financial Statements are 53 weeks in the 2016 fiscal year, and 52 weeks in the 2015 and 2014 fiscal years for MatNav.

Foreign Currency Transactions: The United States (U.S.) dollar is the functional currency for substantially all of the financial statements of the Company’s foreign subsidiaries. Foreign currency denominated assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a component of Accumulated Other Comprehensive Loss within shareholders’ equity. The Company translates the result of operations of its foreign subsidiaries at the average exchange rate during the respective periods. Gains and losses resulting from foreign currency transactions are included in selling, general and administrative costs in the Consolidated Statements of Income and Comprehensive Income.

Use of Estimates: The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments, long-lived vessel and equipment impairment, capitalized interest, allowance for doubtful accounts, goodwill and other finite-lived intangible assets impairment, legal contingencies, uninsured liabilities, accrual estimates, pension and post-retirement estimates, multi-employer withdrawal liabilities, and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions.

Reclassification: Other receivables of $21.5 million have been reclassified from net accounts receivable to prepaid expenses and other assets in the Company’s Consolidated Balance Sheet at December 31, 2015 to conform to the current year presentation.

Cash and Cash Equivalents: Cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $21.3 million and $13.8 million at December 31, 2016 and 2015, respectively, and are reflected as current liabilities in the consolidated balance sheets.

Fair Value of Financial Instruments: The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The Company uses Level 1 inputs for the fair values of its cash and cash equivalents, and Level 2 inputs for its accounts receivable, capital construction fund – cash on deposit, and variable and fixed rate debt. The fair values of cash and cash equivalents, accounts receivable and variable rate debt approximate their carrying values due to the nature of the instruments. The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. The carrying value and fair value of the Company’s financial instruments as of December 31, 2016 and 2015 are as follows (in millions).


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
	December 31, 2016		Fair Value Measurements at December 31, 2016
Cash and cash equivalents	$	13.9	$	13.9	$	13.9	$	—	$	—
Accounts receivable, net		189.5		189.5		—		189.5		—
Capital Construction Fund - cash on deposit		31.2		31.2		—		31.2		—
Variable rate debt		55.0		55.0		—		55.0		—
Fixed rate debt		683.9		685.2		—		685.2		—


	December 31, 2015		Fair Value Measurements at December 31, 2015
Cash and cash equivalents	$	25.5	$	25.5	$	25.5	$	—	$	—
Accounts receivable, net		192.8		192.8		—		192.8		—
Fixed rate debt		429.9		443.8		—		443.8		—

Accounts Receivable, net: Accounts receivable represents amounts due from trade customers arising in the normal course of business. Accounts receivable are shown net of allowance for doubtful accounts receivable in the Consolidated Balance Sheets. At December 31, 2016, and 2015, the Company had assigned $174.7 million and $176.6 million of eligible accounts receivable, respectively, to the Capital Construction Fund (see Note 7).

Allowance for Doubtful Accounts: Allowances for doubtful accounts receivable are established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition of the Company’s customers and potential risks to collection, payment history and other factors which are regularly monitored by the Company. The changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2016 were as follows (in millions):


	Balance at		Expense		Write-offs		Balance at
Year	Beginning of Year		(Recovery)		and Other		End of Year
2016 (1)	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6
2014	$	4.1	$	1.8	$	(0.9)	$	5.0

(1)

2016 expense includes amounts recovered from previously reserved doubtful accounts.

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Prepaid Expenses and Other Assets	2016		2015
Income tax receivables	$	23.4	$	15.1
Insurance related receivables		17.6		18.3
Prepaid fuel		11.5		9.3
Other		18.3		16.9
Total	$	70.8	$	59.6

Impairment of Terminal Joint Venture Investment: The Company’s investment in its Terminal Joint Venture, a related party, is reviewed for impairment annually, or whenever there is evidence that fair value may be below carrying cost. An investment is written down to fair value if fair value is below carrying cost and the impairment is other-than-temporary. In evaluating the fair value of an investment and whether any identified impairment is other-than-temporary, significant estimates and considerable judgments are involved. These estimates and judgments are based, in part, on the Company’s current and future evaluation of economic conditions in general, as well as the Terminal Joint Venture’s current and future plans. These fair value calculations are highly subjective because they require management to make assumptions and apply judgments to estimates regarding the timing and amount of future cash flows, probabilities related to various cash flow scenarios, and appropriate discount rates based on the perceived risks, among others. In evaluating whether an impairment is other-than-temporary, the Company considers all available information, including the length of time and extent of the impairment, the financial condition and near-term prospects of the Terminal Joint Venture, the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value, and projected industry and economic trends, among others. Changes in these and other assumptions could affect the projected operational results and fair value of the Terminal Joint Venture, and accordingly, may require valuation adjustments to the Company’s investment that may materially impact the Company’s financial condition or its future operating results.

The Company has evaluated its investment in its related party Terminal Joint Venture for impairment and no impairment charges were recorded for the years ended December 31, 2016, 2015, and 2014.

Property and Equipment: Property and equipment are stated at cost. Certain costs incurred in the development of internal-use software are capitalized. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range up to the following maximum life:


Classification		Life
Vessels		40 years
Machinery and equipment		20 years
Terminal facilities		35 years

Capitalized Interest: The Company entered into agreements with shipyards for the construction of four new vessels to be utilized within the Company’s operations (see Note 5). The Company is funding the construction of these vessels through borrowings and cash flows generated by the Company. The Company determined that the construction of these vessels are considered qualifying assets for the purposes of capitalizing interest on these assets.

The Company’s policy is to capitalize interest costs during the period the qualified assets are being readied for their intended use. The amount of capitalized interest is calculated based on the amount of payments incurred related to the construction of these vessels using a weighted average interest rate. The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period. Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheet (see Note 5). During the three years ended December 31, 2016, 2015 and 2014, the Company capitalized $2.1 million, $0.4 million and $0.4 million of interest related to the construction of new vessels.

Deferred Dry-docking Costs: The Company’s U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and classification society requirements. These standards require that the Company’s vessels undergo two dry-docking inspections within a five-year period. However, the majority of the Company’s U.S. flagged vessels are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program. The UWILD program allows eligible vessels to have their intermediate dry-docking requirement met with far less costly underwater inspection.

The Company operates six non-U.S. flag vessels (one owned; one under a bareboat charter arrangement; and the remaining on time charter) in the Pacific Islands. The Company is responsible for ensuring that the owned and bareboat chartered vessels meet international standards for seaworthiness, which among other requirements generally mandate that the Company perform two dry‑docking inspections every five years. The dry-dockings of the Company’s time chartered vessels are the responsibility of the vessels’ owners.

As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the next regulatory scheduled dry-docking, which is usually over a two to five-year period. Routine vessel maintenance and repairs that do not improve or extend asset lives are charged to expense as incurred. Deferred dry-docking amortization amounts are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income.

Goodwill and Intangible Assets: Goodwill and intangible assets arise as a result of acquisitions made by the Company (see Notes 3 and 6). Intangible assets consisted of customer relationships which are being amortized using the straight-line method over the expected useful lives ranging from 3 to 21 years, and a trade name that has an indefinite life.

Impairment of Long-Lived Assets, Intangible Assets and Goodwill: The Company evaluates its long-lived assets, including intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units with the Ocean Transportation and Logistics reportable segments. Long-lived assets and finite-lived intangible assets are group at the lowest level reporting unit for which identifiable cash flows are available.

Long-lived Assets and Finite-lived Intangible Assets: In evaluating impairment, the estimated future undiscounted cash flows generated by each of these asset groups is compared with the amount recorded for each asset group to determine if its carrying value is not recoverable. If this review determines that the amount recorded will not be recovered, the amount recorded for the asset group is reduced to its estimated fair value. These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among other things, estimates of the timing and amount of future cash flows, expected useful lives of the assets, uncertainty about future events, including changes in economic conditions, changes in operating performance, changes in the use of the assets, and ongoing costs of maintenance and improvements of the assets, and thus, the accounting estimates may change from period to period. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted.

No impairment charges of long-lived assets were recorded for the years ended December 31, 2016, and 2014. During the year ended December 31, 2015, the Company recorded an impairment charge of $2.1 million related to the write-down of inactive vessels from its recorded net book value to its estimated fair value of zero. The impairment expense is included in Ocean Transportation operating costs on the Consolidated Statements of Income and Comprehensive Income. No impairment charges of finite-lived intangible assets was recorded for the years ended December 31, 2016, 2015 and 2014.

Indefinite-life Intangible Assets and Goodwill: In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The discounted cash flow approach requires the Company to use a number of assumptions, including market factors specific to the business, the amount and timing of estimated future cash flows to be generated by the business over an extended period of time, long-term growth rates for the business, and a discount rate that considers the risks related to the amount and timing of the cash flows. Although the assumptions used by the Company in its discounted cash flow model are consistent with the assumptions the Company used to generate its internal strategic plans and forecasts, significant judgment is required to estimate the amount and timing of future cash flows from the reporting unit and the risk of achieving those cash flows. When using market multiples of EBITDA, the Company must make judgments about the comparability of those multiples in closed and proposed transactions. Accordingly, changes in assumptions and estimates, including, but not limited to, changes driven by external factors, such as industry and economic trends, and those driven by internal factors, such as changes in the Company’s business strategy and its internal forecasts, could have a material effect on the Company’s financial condition or its future operating results.

The Company has evaluated its indefinite-life intangible assets and goodwill for impairment and determined that the fair value of each reporting unit substantially exceeds book value. No impairment charges were recorded for the years ended December 31, 2016, 2015 and 2014, respectively.

Accruals and other liabilities: Accruals and other liabilities consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Accruals and Other Liabilities	2016		2015
Payroll and vacation benefits	$	23.3	$	23.1
Uninsured claims and related liabilities - short term		18.4		27.1
Incentives and other benefits		9.6		20.7
Molasses tank farm removal accrual		3.1		7.4
Restructuring and severance accruals related to Horizon		—		5.0
Interest on debt		5.8		3.9
Multi-employer withdrawal liability - short-term (see Note 12)		4.1		4.1
Other liabilities		12.6		19.4
Total	$	76.9	$	110.7

Pension and Post-Retirement Plans: Certain Ocean Transportation subsidiaries are members of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multi-employer pension plans covering certain shoreside bargaining unit personnel. The subsidiaries directly negotiate multi-employer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single-employer defined benefit plans and defined contribution plans cover substantially all other employees.

The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rate of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. The effects of changing assumptions are included in unamortized net gains and losses, which directly affect accumulated other comprehensive income (loss). Additionally, these unamortized gains and losses are amortized and reclassified to income (loss) over future periods. Additional information about the Company’s pension and post-retirement plans is included in Note 11.

Uninsured Claims and Related Liabilities: The Company is uninsured for certain claims including, but not limited to, employee health, workers’ compensation, general liability, real and personal property. Where feasible, the Company obtains third-party excess insurance coverage to limit its exposure to these claims. When estimating its uninsured claims and related liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by indepeCan yndent third-parties. Periodically, management reviews its assumptions and the analyses provided by independent third-parties to determine the adequacy of the Company’s uninsured claims and related liabilities. The Company’s uninsured claims and related liabilities contain uncertainties because management is required to apply judgment and make long-term assumptions to estimate the ultimate cost to settle reported claims, and of claims incurred but not reported, as of the balance sheet date. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted.

Legal Contingencies: The Company’s results of operations could be affected by significant litigation adverse to the Company, including, but not limited to, liability claims, antitrust claims, claims related to coastwise trading matters, lawsuits involving private plaintiffs or government agencies, and environmental related matters. The Company records accruals for legal matters when the information available indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Management makes adjustments to these accruals to reflect the impact and status of negotiations, settlements, rulings, advice of outside legal counsel and other information and events that may pertain to a particular matter. Predicting the outcome of claims and lawsuits and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from those estimates. In making determinations of likely outcomes of litigation matters, the Company considers many factors. These factors include, but are not limited to, the nature of specific claims including un-asserted claims, the Company’s experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative dispute resolution mechanisms and the matter’s current status.

Recognition of Revenues and Expenses: Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs are recognized as incurred. Other ocean transportation operating costs such as terminal operating overhead and general and administrative expenses are charged to operating costs as incurred. Revenues and costs from terminal and other related services are recognized upon completion of the services. Revenues and costs from ship management services are recognized in proportion to the services performed.

Hawaii, Alaska, Guam and certain Pacific island service freight rates are provided in tariffs filed with the Surface Transportation Board of the U.S. Department of Transportation; for other Pacific island services, the rates are filed with the Federal Maritime Commission. The Alaska and China service rates are predominately established by individual contracts with customers.

Logistics transportation brokerage services revenue consists of amounts billed to customers for transportation brokerage services provided. The primary costs include third-party purchased transportation services. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. The Company reports revenue on a gross basis as the Company serves as principal in transactions because it is responsible for the contractual relationship with the customer, has latitude in establishing prices, has discretion in supplier selection, and retains credit risk.

Logistics warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. For customer dedicated warehouses, storage revenue is recognized as earned over the life of the contract. Storage revenue generated by the public warehouses is recognized in the month the service is provided according to the terms of the contract. Storage expenses are recognized as incurred. Handling and value-added packaging revenue and expense are recognized in proportion to the services completed. Logistics supply chain management and other services, and related costs are recognized in proportion to the services performed.

Dividends: The Company recognizes dividends as a liability when approved by the Board of Directors.

Share-Based Compensation: The Company records compensation expense for all share-based payment awards made to employees and directors. The Company’s various equity plans are more fully described in Note 13.

Income Taxes: Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the Consolidated Statements of Income and Comprehensive Income and/or Consolidated Balance Sheets.

The Company makes certain estimates and judgments in determining income tax expense for Consolidated Financial Statement purposes. These estimates and judgments are applied in the calculation of tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and Consolidated Financial Statement purposes. In addition, judgment is required in determining if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. A valuation allowance would be established if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods (see Note 10). Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period.

In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertain tax positions taken or expected to be taken with respect to the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could materially affect the Company’s financial condition or its future operating results.

Comprehensive Income (Loss): Comprehensive income (loss) includes all changes in Shareholders’ Equity, except those resulting from common stock transactions. Other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income are shown net of tax benefit (expense) of $0.7 million, $(5.0) million and $19.4 million for the years ended December 2016, 2015, and 2014, respectively. Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows (in millions):


					Non-								Accumulated
					Qualified		Foreign						Other
			Post		Pension		Currency		Interest				Comprehensive
	Pensions		Retirement		Plans		Translation		Hedge		Other		Income (Loss)
Balance at December 31, 2014	$	(45.0)	$	(7.2)	$	(0.5)	$	0.3	$	(0.7)	$	(0.2)	$	(53.3)
Net gain (loss) in prior service costs		3.7		1.4		0.5		—		—		(0.5)		5.1
Amortization of prior service cost		(1.3)		0.1		(0.1)		—		—		—		(1.3)
Amortization of net loss (gain)		0.9		1.0		(0.1)		—		—		—		1.8
Foreign currency translation adjustment		—		—		—		0.7		—		—		0.7
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2015		(41.7)		(4.7)		(0.2)		1.0		(0.6)		(0.7)		(46.9)
Net gain (loss) in prior service costs		—		0.7		(0.1)		—		—		0.1		0.7
Amortization of prior service cost		(1.4)		—		(0.1)		—		—		0.2		(1.3)
Amortization of net loss (gain)		1.7		(0.4)		—		—		—		(0.1)		1.2
Foreign currency translation adjustment		—		—		—		0.1		—		—		0.1
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2016	$	(41.4)	$	(4.4)	$	(0.4)	$	1.1	$	(0.5)	$	(0.5)	$	(46.1)

Basic and Diluted Earnings per Share (“EPS”) of Common Stock: Basic earnings per share are determined by dividing net income by the weighted-average common shares outstanding during the year. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested stock units. The computation of weighted average dilutive shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each of the years 2016, 2015, and 2014.

The denominator used to compute basic and diluted earnings per share for the three years ended December 31, 2016, were as follows (in millions):


	Year Ended December 31, 2016					Year Ended December 31, 2015					Year Ended December 31, 2014
			Weighted	Per				Weighted	Per				Weighted	Per
			Average	Common				Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share		Net		Common	Share
	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
Basic:	$	80.5	43.1	$	1.87	$	103.0	43.5	$	2.37	$	70.8	43.0	$	1.65
Effect of Dilutive Securities:			0.4		(0.02)			0.5		(0.03)			0.4		(0.02)
Diluted:	$	80.5	43.5	$	1.85	$	103.0	44.0	$	2.34	$	70.8	43.4	$	1.63

Rounding: Amounts in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements are rounded to millions, except for per-share calculations and percentages which were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different.

New Accounting Pronouncements: Revenue from Contracts with Customers: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The guidance establishes principles regarding the nature, timing, and uncertainty of revenue from contracts with customers. It removes inconsistencies in existing revenue requirements, provides a more robust framework for addressing revenue issues and improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The new standard will be effective for interim and annual reporting periods beginning after December 15, 2016.

The Company is in the process of evaluating the impact of adopting ASU 2014-19 on its Consolidated Financial Statements. The Company is currently reviewing customer contracts in each of its operating segments for all services provided, assessing the impact of applying ASU 2014-19, and comparing this to the Company’s historical revenue recognition criteria. Based upon the preliminary review of customer contracts, the Company believes that the Company’s revenue recognition policies are consistent with the requirements of ASU 2014-19. While the Company continues to assess all potential impacts of adopting ASU 2014-19, based upon information available to date, the Company does not expect the adoption of ASU 2014-19 to have a significant impact either on the timing or recognition of Ocean Transportation and Logistics revenues.

Leases: In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases in their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments, and a right-of-use asset for the underlying leased asset for the period of the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is in the process of evaluating this guidance.

Share-Based Awards: In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-19”). The amendments are effective for interim and annual reporting periods beginning after December 15, 2016. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The Company believes the adoption of ASU 2016-09 will not have a material impact on the Company’s Consolidated Financial Statements.

BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2016

BUSINESS COMBINATION

BUSINESS COMBINATION

3.BUSINESS COMBINATION

Span Alaska Acquisition: On August 4, 2016 (the “Effective Date”), Matson Logistics completed the purchase of 100 percent of the membership interests of Span Alaska pursuant to the terms of the Membership Interest Purchase Agreement, dated July 18, 2016. At the Effective Date, Span Alaska became a wholly-owned subsidiary of Matson Logistics. Span Alaska is an asset-light logistics company providing freight forwarding services primarily to the Alaska market. Span Alaska consolidates freight in Auburn, Washington, for shipment to Alaska and distribution through a network of terminals in Anchorage, Fairbanks, Wasilla, Kenai, Juneau and Kodiak. Span Alaska’s operations are recorded within the Logistics segment of the Company.

Total consideration paid by the Company on the Effective Date for the membership interests in Span Alaska including the repayment of Span Alaska’s debt and accrued interest, is as follows (in millions):


Span Alaska Consideration	Total
Membership interests	$	117.0
Span Alaska’s debt		81.9
Total	$	198.9

The Span Alaska Acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations (“ASU 805”). The assets acquired and liabilities assumed in the Span Alaska Acquisition were recorded based on fair value estimates as of the Effective Date, with the remaining unallocated purchase price recorded as goodwill. Such fair value estimates require significant judgment, and include estimates used in the valuation of property and equipment, and intangible assets. As of December 31, 2016, the Company has finalized the purchase accounting for the Span Alaska Acquisition.

The following table summarizes the fair values assigned to Span Alaska’s assets acquired and liabilities assumed at the Effective Date:


Purchase Price Allocation (in millions)	Total
Cash and cash equivalents	$	4.4
Accounts receivable		11.1
Prepaid and other current assets		0.9
Property and equipment		8.1
Intangibles – Customer relationships		79.3
Intangibles – Trade name		27.3
Other long-term assets		0.1
Accounts payable		(3.3)
Accruals and other current liabilities		(6.4)
Capital lease obligations		(1.2)
Span Alaska’s debt		(81.9)
Total identifiable assets less liabilities		38.4
Total consideration for membership interests		(117.0)
Goodwill	$	78.6

The amounts above include $0.4 million of purchase price adjustments recorded to the preliminary purchase price allocation initially recorded in the Company’s interim Condensed Consolidated Financial Statements for the three and nine-months ended September 30, 2016.

Property and equipment: Property and equipment of $8.1 million includes the fair value of terminal and transportation equipment (trucks, forklifts, trailers and containers) and other warehouse equipment, leasehold improvements and other office equipment.

Intangibles - The customer relationships and trade name intangible assets were recorded using information obtained from valuation specialists engaged by the Company to assist management with estimating the fair value of these intangible assets.

Customer relationships: Intangibles of $79.3 million related to customer relationships, and are being amortized using the straight-line method over 20 years. In determining the amortization period, the Company considered the historical trends of Span Alaska’s customers and related attrition rates. The Company also considered potential future attrition risks, existing competition, the costs associated with establishing a freight forwarding business including the need to develop a broad base of customer relationships over a period of time. Furthermore, the Company considered existing relationships with ocean transportation service providers in Alaska, and the potential impact of competition. As a result, the Company believes that Span Alaska’s customers are considered less vulnerable to attrition.

Trade name: Intangibles of $27.3 million related to the Span Alaska trade name, which was determined to have an indefinite life. Span Alaska has operated for a period in excess of 38 years, and its trade name is widely known in Alaska for high quality and reliable freight forwarding services. The Span Alaska operations will continue to be operated under the Span Alaska trade name, independent of Matson’s ocean transportation operation in Alaska.

Span Alaska’s debt: The Company repaid all of Span Alaska’s debt including accrued interest of $81.9 million, as of the Effective Date.

Goodwill: The Company recorded goodwill of $78.6 million from the Span Alaska Acquisition, which represents the excess of the fair value of consideration paid by the Company over the fair value of the underlying identifiable assets acquired and liabilities assumed. In accordance with ASC 805, goodwill will not be amortized, but instead will be tested for impairment at least annually, or whenever events or circumstances have occurred that may indicate a possible impairment.

Goodwill arises as a result of several factors including: (i) the Span Alaska Acquisition significantly expands Matson’s Logistics’ platform and Matson’s long-term commitment in the Alaska market; (ii) Span Alaska is a leading freight forwarding business and continues to be led by an experienced management team and assembled workforce with knowledge of the Alaska industry and of its customers; and (iii) the additional growth potential of Span Alaska.

The Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2016 include operating revenue of $22.8 million (after elimination of intercompany revenue), and operating income of $3.5 million, respectively, from Span Alaska’s operations, and in the Logistics segment. One-time acquisition related costs of approximately $3.0 million incurred as a result of the Span Alaska Acquisition, is included in selling, general and administrative costs in the Consolidated Statements of Income and Comprehensive Income.

Horizon Acquisition: On May 29, 2015, Matson completed its acquisition of Horizon whereby MatNav acquired Horizon’s Alaska operations and assumed all of Horizon’s non-Hawaii assets and liabilities (the “Horizon Acquisition”). Immediately before the completion of the Horizon Acquisition, Horizon sold certain of its subsidiaries to the Pasha Group (the “Pasha Transaction”) that: (i) conducted Horizon’s Hawaii operations (including owning the assets used to conduct such Hawaii operations and being responsible for the liabilities related thereto), and (ii) employed the Horizon employees who conducted its Hawaii operations. Horizon also completed the termination of its Puerto Rico operations during the first quarter of 2015. The Alaska operations are recorded within the Ocean Transportation segment of the Company.

Total consideration for the Horizon Acquisition was $495.4 million based on the fair value of common shares of $29.4 million, warrants of $37.1 million, and Horizon’s debt including accrued interest and breakage fees of $428.9 million. Immediately following the close of the Horizon Acquisition, the Company repaid the assumed debt and redeemed all of Horizon’s outstanding warrants.

The Horizon Acquisition was accounted for as a business combination in accordance with ASC 805. Assets acquired and liabilities assumed were recorded at estimated fair value at May 29, 2015, with the remaining unallocated purchase price of $217.7 million recorded as goodwill. The Company finalized its purchase accounting for the Horizon Acquisition as of June 30, 2016. The following table summarizes the fair values assigned to Horizon's assets acquired and liabilities assumed that were recognized as of the acquisition date, with purchase price allocation adjustments since the preliminary purchase price allocation previously disclosed as of December 31, 2015:


Purchase Price Allocation (in millions)	Preliminary Estimates		Adjustments		Final
Cash and cash equivalents	$	0.8	$	—	$	0.8
Accounts receivable		31.7		—		31.7
Other current assets		7.2		—		7.2
Deferred tax assets, net		45.6		0.7		46.3
Property and equipment		170.4		—		170.4
Intangibles - Customer relationships		140.0		—		140.0
Other long-term assets		4.1		—		4.1
Accounts payable		(22.8)		—		(22.8)
Accruals and other current liabilities		(32.1)		0.7		(31.4)
Multi-employer withdrawal liability		(60.6)		(4.9)		(65.5)
Capital lease obligations		(1.6)		—		(1.6)
Horizon's debt and warrants		(467.5)		—		(467.5)
Total identifiable assets less liabilities		(184.8)		(3.5)		(188.3)
Total cash paid for common shares		(29.4)		—		(29.4)
Goodwill	$	214.2	$	3.5	$	217.7

Purchase price allocation adjustments related primarily to the receipt of additional information that increased the fair value of the Puerto Rico multi-employer withdrawal liability, offset by fair value adjustments to deferred tax assets, and to accruals and other current liabilities.

The Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2016 include operating revenue and operating income from Horizon’s operations of $277.6 million and $20.0 million, respectively. One-time acquisition costs related to the Horizon Acquisition incurred during the year ended December 31, 2016 were not material and were $19.0 million during the year ended December 31, 2015.

Pro Forma Financial Information (Unaudited):

The following unaudited pro forma financial information presents the combined operating results of the Company, and those of Horizon (excluding its Hawaii operations) and Span Alaska, as if the Horizon and Span Alaska acquisitions had been completed at the beginning of each period presented below. The unaudited pro forma financial information includes the accounting effects of the business combination, including the amortization of intangible assets, depreciation of property and equipment, and interest expense. Unaudited pro forma operating revenue is presented after elimination of intercompany revenue.

The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the result of operations that would have been achieved if the Horizon and Span Alaska acquisitions had taken place at the beginning of the periods presented, nor should it be taken as an indication of our future consolidated results of operations.


	Years Ended December 31,
(in millions, except per-share amount)	2016		2015
Pro Forma Combined:
Operating revenue	$	1,974.2	$	2,076.4
Net income	$	84.9	$	107.7
Basic Earnings Per-Share:	$	1.97	$	2.48
Diluted Earnings Per-Share:	$	1.95	$	2.45
Weighted-Average Number of Shares Outstanding:
Basic		43.1		43.5
Diluted		43.5		44.0

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2016

INVESTMENT IN TERMINAL JOINT VENTURE

INVESTMENT IN TERMINAL JOINT VENTURE

4.INVESTMENT IN TERMINAL JOINT VENTURE

The Company accounts for its 35 percent ownership interest in the related party Terminal Joint Venture using the equity method of accounting. The Company records its share of income in the Terminal Joint Venture in operating costs within the Ocean Transportation segment, due to operations of the Terminal Joint Venture being an integral part of the Company’s Ocean Transportation business. The Company’s investment in the Terminal Joint Venture was $82.4 million and $66.4 million at December 31, 2016 and 2015, respectively.

The Company’s share of incomes recorded in the Consolidated Statements of Income and Comprehensive Income, and dividends received by the Company during the years ended December 31, 2016, 2015 and 2014 is as follows (in millions):


	Years Ended December 31,
Terminal Joint Venture	2016		2015		2014
Company Share of Net Income	$	15.8	$	16.5	$	6.6
Distributions Received	$	—	$	14.0	$	—

The Company’s Ocean Transportation segment operating costs include $177.8 million, $174.1 million and $164.8 million for the years ended December 31, 2016, 2015 and 2014, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $16.7 million and $19.5 million for terminal services payable to the Terminal Joint Venture at December 31, 2016 and 2015, respectively.

A summary of unaudited condensed financial information for the Terminal Joint Venture at December 31, 2016 and 2015 is as follows (in millions):


	As of December 31,
Condensed Balance Sheets (Unaudited)	2016		2015
Current assets	$	147.7	$	107.0
Non-current assets		138.5		121.2
Total Assets	$	286.2	$	228.2

Current liabilities	$	48.9	$	42.0
Non-current liabilities		14.8		9.4
Equity		222.5		176.8
Total Liabilities and Equity	$	286.2	$	228.2


	Years Ended December 31,
Condensed Statements of Operating Income (Loss) and Net Income (Unaudited)	2016		2015		2014
Operating revenue	$	740.9	$	621.0	$	586.2
Operating costs and expenses		706.5		610.2		589.7
Operating income (loss)		34.4		10.8		(3.5)
Net Income (1)	$	45.1	$	44.9	$	21.2

(1)Includes earnings from equity method investments held by the Terminal Joint Venture.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2016 and 2015, and depreciation expense in the three years ended December 31, 2016 includes the following (in millions):


	As of December 31, 2016
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,416.1	$	840.7	$	575.4
Containers and equipment		536.9		326.7		210.2
Terminal facilities and other property		43.2		35.3		7.9
Vessel construction in progress		124.5		—		124.5
Other construction in progress		31.2		—		31.2
Total	$	2,151.9	$	1,202.7	$	949.2


	As of December 31, 2015
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,384.8	$	787.4	$	597.4
Containers and equipment		496.0		307.8		188.2
Terminal facilities and other property		42.0		33.4		8.6
Vessel construction in progress		30.0		—		30.0
Other construction in progress		36.1		—		36.1
Total	$	1,988.9	$	1,128.6	$	860.3


	Years Ended December 31,
	2016		2015		2014
Depreciation Expense	$	86.0	$	76.4	$	66.8

The Company entered into agreements for the construction of two new Aloha Class container vessels, and two new Kanaloa Class combination container and roll-on/roll-off vessels at an estimated combined cost of approximately $925.3 million. The vessels are expected to be delivered during the periods from 2018 to 2020. Vessel construction in progress represents progress payments to the shipyards in accordance with the terms of the vessel construction agreements, and other related costs. Vessel construction in progress costs include capitalized interest of $2.9 million and $0.8 million as of December 31, 2016 and 2015, respectively.

Property and equipment includes assets subject to capital leases with a net book value of $6.4 million and $6.4 million, net of accumulated depreciation of $2.4 million and $1.1 million at December 31, 2016 and 2015, respectively. Amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $1.2 million, $0.6 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

6.GOODWILL AND INTANGIBLE ASSETS

Changes in the Company’s goodwill for the years ended December 31, 2016 and 2015 consist of the following (in millions):


	Goodwill
	Ocean
	Transportation		Logistics		Total
Balance at December 31, 2014	$	0.8	$	26.6	$	27.4
Additions - Horizon Acquisition		214.2		—		214.2
Balance at December 31, 2015		215.0		26.6		241.6
Additions - Horizon Acquisition		3.5		—		3.5
Additions - Span Alaska Acquisition		—		78.6		78.6
Balance at December 31, 2016	$	218.5	$	105.2	$	323.7

Intangible assets as of December 31, 2016 include the following (in millions):


	Intangible Assets
	Ocean
	Transportation		Logistics		Total
Gross Amount at December 31, 2015	$	140.6	$	10.8	$	151.4
Additions - Span Alaska Acquisition		—		106.6		106.6
Gross Amount at December 31, 2016		140.6		117.4		258.0
Accumulated Amortization		(11.0)		(10.4)		(21.4)
Net Amount at December 31, 2016	$	129.6	$	107.0	$	236.6

Additions to Logistics of $106.6 million during the year ended December 31, 2016, includes customer relationships and trade name intangible assets of $79.3 million and $27.3 million, respectively, acquired as part of the Span Alaska Acquisition (see Note 3). The Span Alaska customer relationships intangible assets are being amortized over 20 years. The trade name intangible asset has an indefinite useful life. Intangible assets as of December 31, 2016 consisted of customer relationships and trade name of $209.3 million, and $27.3 million, respectively.

Intangible assets as of December 31, 2015 include the following (in millions):


	Intangible Assets
	Ocean
	Transportation		Logistics		Total
Gross Amount at December 31, 2014	$	0.6	$	9.8	$	10.4
Additions - Horizon Acquisition		140.0		—		140.0
Additions - Other Acquisitions		—		1.0		1.0
Gross Amount at December 31, 2015		140.6		10.8		151.4
Accumulated Amortization		(4.2)		(8.1)		(12.3)
Net Amount at December 31, 2015	$	136.4	$	2.7	$	139.1

Additions to Ocean Transportation intangible assets of $140.0 million during the year ended December 31, 2015 related to customer relationships intangible assets acquired as part of the Horizon Acquisition, and are being amortized over 21 years (see Note 3).

Intangible asset related amortization expense was $9.1 million, $4.4 million and $1.3 million for 2016, 2015, and 2014, respectively. As of December 31, 2016, estimated amortization expenses related to intangible assets – customer relationships during the next five years and thereafter are as follows (in millions):


	Customer
Year	Relationships
2017	$	11.3
2018		11.2
2019		11.0
2020		11.0
2021		10.9
Thereafter		153.9
Total	$	209.3

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

CAPITAL CONSTRUCTION FUND	12 Months Ended
CAPITAL CONSTRUCTION FUND	Dec. 31, 2016
CAPITAL CONSTRUCTION FUND.
CAPITAL CONSTRUCTION FUND	7.CAPITAL CONSTRUCTION FUND The Company is party to an agreement with the U.S. Department of Transportation, Maritime Administration (“MARAD”) that established a Capital Construction Fund (“CCF”) program under provisions of the Merchant Marine Act of 1936, as amended (the “Merchant Marine Act”). The CCF program was created to assist owners and operators of U.S. flag vessels in raising capital necessary for the modernization and expansion of the U.S. merchant marine. CCF funds may be used for the acquisition, construction, or reconstruction of vessels, and for repayment of existing vessel indebtedness through the deferment of federal income taxes on certain deposits of monies and other property placed into the CCF. Qualified withdrawals from the CCF must be used for investment in vessels and certain related equipment built in the U.S., and for use between covered U.S. ports as described by the Merchant Marine Act (see Item 1 of Part 1 for additional information on Maritime Laws and the Jones Act). Participants of the CCF must also meet certain U.S. citizenship requirements. Deposits into the CCF are limited by certain applicable earnings and other conditions. Such deposits, once made, are available as tax deductions in the Company’s tax provision. Qualified withdrawals from the CCF do not give rise to a current tax liability, but reduce the depreciable basis of the vessels or certain related equipment for income tax purposes. However, if withdrawals are made from the CCF for general corporate purposes or other non-qualified purposes, or upon termination of the agreement, they are taxable with interest payable from the year of deposit. Amounts deposited into the CCF are a preference item for calculating federal alternative minimum taxable income. Deposits not committed for qualified purposes within 25 years from the date of deposit will be treated as non-qualified withdrawals over the subsequent five years. Under the terms of the CCF agreement, the Company may designate certain qualified earnings as “accrued deposits” or may designate, as obligations of the CCF, qualified withdrawals to reimburse qualified expenditures initially made with operating funds. Such accrued deposits to, and withdrawals from, the CCF are reflected in the consolidated balance sheets either as obligations of the Company’s current assets or as receivables from the CCF. As of December 31, 2016 and 2015, $174.7 million and $176.6 million of eligible accounts receivable were assigned to the CCF. Due to the nature of the assignment of eligible accounts receivables into the CCF, such assigned amounts are classified as part of accounts receivable in the consolidated balance sheets. At December 31, 2016 and 2015, the Company had $31.2 million and a nominal amount on deposit in the CCF invested in a money market fund, and is classified as a long-term asset in the Company’s Consolidated Balance Sheet, respectively.

DEBT

12 Months Ended

Dec. 31, 2016

DEBT

DEBT

8.DEBT

At December 31, 2016 and 2015, the Company’s debt consisted of the following (in millions):


	As of December 31,
	2016		2015
Term Loans:
5.79 %, payable through 2020	$	24.5	$	31.5
3.66 %, payable through 2023		59.3		68.4
4.16 %, payable through 2027		55.0		55.0
3.37 %, payable through 2027		75.0		—
3.14 %, payable through 2031		200.0		—
4.31 %, payable through 2032		37.5		37.5
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		75.0		75.0
Title XI Bonds:
5.34 %, payable through 2028		26.4		28.6
5.27 %, payable through 2029		28.6		30.8
Revolving credit facility		55.0		—
Capital leases		2.6		3.1
Total Debt		738.9		429.9
Less: Current portion		(31.8)		(22.0)
Total Long-term Debt	$	707.1	$	407.9

Description of Debt: The following is a description of the Company’s debt:

Term Loans: The 5.79 percent notes payable through 2020 are amortized by semi-annual principal payments of $3.5 million plus interest.

During the second quarter of 2012, the Company issued new unsecured, fixed rate, amortizing long-term debt of $170.0 million, which funded in three tranches, $77.5 million at an interest rate of 3.66 percent, $55.0 million at an interest rate of 4.16 percent, and $37.5 million at an interest rate of 4.31 percent. Interest is payable semi-annually. The notes began to amortize in 2015 with aggregate semi-annual payments of $4.6 million which continued through 2016, followed by $8.4 million in 2017 through mid-year 2023, $3.8 million through mid-year 2027, and $1.2 million thereafter.

In January 2014, the Company issued $100 million of 30-year senior unsecured private placement notes (the “2014 Notes”). The 2014 Notes bear interest at a rate of 4.35 percent, payable semi-annually. The 2014 Notes will begin to amortize in 2021, with annual principal payments of $5.0 million in 2021, $7.5 million in 2022 and 2023, $10.0 million from 2024 to 2027, and $8.0 million in 2028. Starting in 2029, and in each year thereafter until 2044, annual principal payments will be $2.0 million.

In July 2015, the Company entered into a private placement note purchase agreement for the issuance of $75.0 million of 30-year senior unsecured notes (the “2015 Notes”). The 2015 Notes bear interest at a rate of 3.92 percent, payable semi-annually. The 2015 Notes will begin to amortize in 2017, with annual principal payments of approximately $1.8 million through 2019. During the years 2020 to 2026, the annual principal payments will range between approximately $1.3 million and $8.0 million. Starting in 2027, and in each year thereafter, the annual principal payments will be approximately $1.5 million.

On September 14, 2016, the Company entered into an amended and restated private placement note purchase agreement (the “2016 Note Purchase Agreement”), pursuant to which the Company issued $200.0 million of 15-year final maturity senior unsecured notes (the “Series D Notes”). The Series D Notes bear interest at a rate of 3.14 percent, payable semi-annually. The Series D Notes will begin to amortize in March 2019, with semi-annual principal payments of $6.0 million in 2019. During the years 2020 to 2023, the semi-annual principal payments will be $9.2 million. Starting in March 2024, and in each year thereafter through maturity in September 2031, the semi-annual principal payments will be $7.15 million.

On December 21, 2016, the Company entered into a private placement note purchase agreement pursuant to which the Company issued $75 million in 11-year final maturity senior unsecured notes (the "Series A Notes"). The Series A Notes bear interest at a rate of 3.37% percent, payable semi-annually. The Series A Notes will begin to amortize in December 2021, with principal payments of $5.8 million in 2021 and $11.5 million per year, paid semi-annually, from 2022 through 2027.

Title XI Bonds: In September 2003, the Company issued $55.0 million in U.S. Government guaranteed vessel finance bonds (Title XI) to partially finance the delivery of the MV Manukai. The secured bonds have a final maturity in September 2028 with a coupon of 5.34 percent. The bonds are amortized by semi-annual payments of $1.1 million plus interest. In August 2004, the Company issued $55.0 million of U.S. Government guaranteed vessel finance bonds (Title XI) to partially finance the delivery of the MV Maunawili. The secured bonds have a final maturity in July 2029, with a coupon of 5.27 percent. The bonds are amortized by semi-annual payments of $1.1 million plus interest.

Revolving Credit Facility: In 2012, the Company entered into a $375.0 million, five‑year unsecured revolving credit facility with a syndicate of banks to provide the Company with additional sources of liquidity for working capital requirements and investment opportunities (the “Credit Facility”). The Credit Facility includes a $100 million sub-limit for the issuance of standby and commercial letters of credit, and a $50 million sub-limit for swing line loans. The Credit Facility also includes an uncommitted option to increase the Credit Facility by $75 million.

On July 30, 2015, the Company entered into an amendment to the credit facility (the “Credit Facility Amendment”). The Credit Facility Amendment includes an increase in the borrowing capacity to $400 million, and a five year extension of the maturity date to July 30, 2020. In addition, the Credit Facility Amendment includes a number of amended terms, including modifications to certain definitions and covenants, and includes an uncommitted option to increase the borrowing capacity of the Credit Facility Amendment by an additional $150 million.

The Credit Facility is subject to commitment fees, letter of credit fees, and interest on borrowings based on the Company’s ratio of total debt to EBITDA (the “Leverage Ratio”). Commitment fees and letter of credit fees are computed using rates tied to a sliding scale, which range from 0.15 percent to 0.30 percent, and 1.00 percent to 1.75 percent, respectively, based on the Consolidated Net Leverage Ratio, as defined within the Credit Facility Amendment. Interest rates on borrowings are based upon the Eurodollar Rate (LIBOR) plus 1.00 percent to 1.75 percent using a sliding scale based on the Consolidated Net Leverage Ratio. The Company may also select an interest rate at a Base Rate as defined in the Credit Facility Amendment, plus a margin that ranges from zero percent to 0.75 percent. Based upon the Company’s Consolidated Net Leverage Ratio, the interest rate applicable to any borrowings would have been approximately 1.97 percent at December 31, 2016.

The Company also entered into other amendments to its existing term loan agreements that included modifications to certain definitions and covenants, as defined within the agreements. Interest rates and other substantive terms remained unchanged.

As of December 31, 2016, the Company had $55.0 million of borrowings outstanding under the Credit Facility, and there were no borrowings outstanding as of December 31, 2015. As of December 31, 2016, the Company had $333.8 million of availability under the Credit Facility. The Company used $11.2 million of the sub-limit for letters of credit outstanding as of December 31, 2016.

Capital Leases: The Company’s capital lease obligations represent leasing of containers and other equipment, and have been classified as current and long-term debt in the Company’s Consolidated Balance Sheets.

Debt Guarantees: All of the Company’s debt as of December 31, 2016 was unsecured, except for $55.0 million in Title XI bonds, all of which are guaranteed by the Company’s significant subsidiaries. All of the Company’s debt is fixed rate debt except for borrowings under the Credit Facility.

Debt Covenants: Principal covenants contained in the Company’s Credit Facility and long-term fixed rate debt agreements as of December 31, 2016 include, but are not limited to:

Not permit the ratio of debt to consolidated EBITDA to exceed 3.25 to 1.00 for each fiscal four quarter period, except under certain pre-defined circumstances;

Not permit the ratio of consolidated EBITDA to interest expense as of the end of any fiscal four quarter period to be less than 3.50 to 1.00; and

Not permit the aggregate principal amount of Priority Debt (as defined in the 2016 Note Purchase Agreement) at any time to exceed 20 percent (subject to reduction to 17.5 percent upon the earlier of December 31, 2017 and upon the occurrence of certain events) of Consolidated Tangible Assets (as defined in the 2016 Note Purchase Agreement); and not permit the aggregate principal amount of Priority Debt that is not Title XI Priority Debt (as defined in the 2016 Note Purchase Agreement) at any time to exceed 10 percent of Consolidated Tangible Assets, as defined in the 2016 Note Purchase Agreement.

Principle covenants generally will restrict the incurrence of liens except for permitted liens, which include, without limitation, liens securing Title XI Debt up to certain thresholds, as defined within the agreements. The Company was in compliance with these covenants as of December 31, 2016.

Debt Maturities: At December 31, 2016, debt maturities during the next five years and thereafter are as follows (in millions):


Year	Total
2017	$	31.8
2018		30.7
2019		42.1
2020		48.4
2021		54.2
Thereafter		531.7
Total debt	$	738.9

LEASES

12 Months Ended

Dec. 31, 2016

LEASES

LEASES

9.LEASES

The Company leases certain property and equipment, and other facilities under various operating lease agreements, with terms that range from 1 to 50 years. Such leases generally include provisions for the maintenance of the leased assets, options to purchase the assets at fair value, and renewal options to extend the lease agreements.

Rent expense recorded in costs and expenses in the Consolidated Statement of Income and Comprehensive Income from operating leases totaled $68.6 million, $65.6 million and $58.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, and includes volume-based terminal rent. Additionally, rent expense for short-term and cancelable equipment rentals was $51.0 million, $39.9 million and $27.6 million in 2016, 2015, and 2014, respectively. Management expects that in the normal course of business most operating leases will be renewed or replaced by other similar leases.

Future minimum payments under operating leases as of December 31, 2016 were as follows (in millions):


Year	Total
2017	$	45.5
2018		37.3
2019		30.2
2020		24.9
2021		13.8
Thereafter		31.2
Total minimum lease payments	$	182.9

INCOME TAXES

12 Months Ended

Dec. 31, 2016

INCOME TAXES

INCOME TAXES

10.INCOME TAXES

Income tax expense for the years ended December 31, 2016, 2015 and 2014 consisted of the following (in millions):


	Years Ended December 31,
	2016		2015		2014
Current:
Federal	$	10.0	$	22.6	$	45.5
State		(1.3)		2.9		3.7
Total		8.7		25.5		49.2
Deferred:		39.9		49.3		2.7
Total income tax expense	$	48.6	$	74.8	$	51.9

Income tax expense for the years ended December 31, 2016, 2015, and 2014, differs from amounts computed by applying the statutory federal rate to income before income taxes for the following reasons:


	Years Ended December 31,
	2016		2015		2014
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	1.8	%	2.5	%	2.2	%
Valuation allowance	0.3	%	1.1	%	3.3	%
Foreign taxes	0.4	%	0.6	%	0.4	%
Deferred tax adjustment	0.1	%	1.1	%	(0.9)	%
Unrecognized tax benefits	(1.0)	%	0.4	%	(0.4)	%
Other — net	1.0	%	1.4	%	2.7	%
Effective income tax rate	37.6	%	42.1	%	42.3	%

The Company recorded a valuation allowance against operating losses related to a foreign subsidiary of $0.4 million, $1.8 million and $4.1 million in 2016, 2015 and 2014, respectively, as the Company determined the tax benefits associated with such losses may not be realized in future periods. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015, were as follows (in millions):


	As of December 31,
	2016		2015
Deferred tax assets:
Benefit plans	$	78.1	$	79.1
Federal net operating losses		52.1		68.0
Insurance reserves		9.9		15.4
State net operating losses		7.9		7.8
Foreign losses		4.9		5.7
Alternative minimum tax credits		31.0		3.6
Allowance for doubtful accounts		1.3		2.4
Reserves		2.4		—
Other		3.5		1.9
Total deferred tax assets		191.1		183.9
Valuation allowance		(11.9)		(12.6)
Total Deferred tax assets, net of valuation allowance		179.2		171.3

Deferred tax liabilities:
Basis differences for property and equipment		339.0		300.8
Capital Construction Fund		115.8		95.6
Intangibles		53.8		53.0
Deferred revenue		9.5		11.8
Joint ventures and other investments		9.9		10.6
Reserves		—		10.0
Total deferred tax liabilities		528.0		481.8
Deferred tax liability, net	$	348.8	$	310.5

The Company’s income taxes payable has been reduced by the tax benefits from share-based compensation. The Company receives an income tax benefit for exercised stock options calculated as the difference between the fair market value of the stock issued at the time of exercise and the option exercise price, tax-effected. The Company also receives an income tax benefit for non-vested stock when it vests, measured as the fair market value of the stock at the time of vesting, tax-effected. The net tax benefits from share-based transactions were $2.2 million, $2.6 million and $0.8 million for 2016, 2015 and 2014, respectively, and the portion of the tax benefit related to the excess of the amount reported as the tax deduction over expense was reflected as an increase to additional paid-in-capital in the Consolidated Statements of Shareholders’ Equity.

Net Operating Losses and Tax Credit Carryforwards: The Company’s net operating losses (“NOLs”) and tax credit carryforwards at December 31, 2016 and 2015, were as follows:


(in millions)	Expiration Date	2016		2015
U.S. Federal income tax NOLs	Various dates through December 31, 2034	$	190.0	$	194.2
U.S. State income tax NOLs	Various dates through December 31, 2034	$	192.8	$	192.4
Foreign income tax NOLs	No expiration date	$	17.6	$	20.2
U.S. alternative minimum tax credit	No expiration date	$	31.0	$	3.6

Valuation allowances recorded against all of the Company’s foreign income tax NOLs and a portion of the state income tax NOLs were $11.9 million and $12.6 million as of December 31, 2016 and 2015, respectively. The Company believes that it is more likely than not that the benefit from these amounts will not be realized.

The U.S. federal and state income tax NOLs in the Company’s filed income tax returns include unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of the Company’s domestic NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the federal and state income tax NOLs and tax credit carryforwards may expire before being applied to reduce future income tax liabilities.

Unrecognized Tax Benefits: Total unrecognized benefits represent the amount that, if recognized, would favorably affect the Company’s effective tax rate in future periods. The Company does not expect a material change in gross unrecognized benefits in the next twelve months. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):


Unrecognized Tax Benefits:	Amount
Balance at December 31, 2013	$	7.2
Changes in tax positions of prior years, net		0.5
Reductions for lapse of statute of limitations		(1.0)
Balance at December 31, 2014		6.7
Changes in tax positions of prior years, net		1.5
Additions from unrecognized tax benefits acquired		14.4
Reductions for lapse of statute of limitations		(0.5)
Balance at December 31, 2015		22.1
Changes in tax positions of prior years, net		(1.1)
Reductions for lapse of statute of limitations		(0.6)
Balance at December 31, 2016	$	20.4

Included in the balance of unrecognized tax benefits at December 31, 2016 are potential benefits of $4.3 million that, if recognized, would affect the effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. To the extent interest and penalties are not ultimately assessed with respect to the settlement of uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. Interest accrued related to the balance of unrecognized tax benefits totaled $0.4 million as of December 31, 2016 and 2015.

The Company is no longer subject to U.S. federal income tax audits for years before 2012. The Company is routinely involved in State, local income and excise tax audits, and foreign tax audits.

PENSION AND OTHER POST-RETIREMENT PLANS

12 Months Ended

Dec. 31, 2016

PENSION AND OTHER POST-RETIREMENT PLANS

PENSION AND OTHER POST-RETIREMENT PLANS

11.PENSION AND POST-RETIREMENT PLANS

Non-bargaining Plans:

The Company has two funded qualified single-employer defined benefit pension plans that cover certain non‑bargaining unit employees and bargaining unit employees. In addition, the Company has plans that provide certain retiree health care and life insurance benefits to substantially all salaried, non-bargaining employees hired before 2008 and to certain bargaining unit employees. Employees are generally eligible for such benefits upon retirement and completion of a specified number of years of service. The Company does not pre-fund these health care and life insurance benefits, and has the right to modify or terminate certain of these plans in the future. Most non-bargaining retirees pay a portion of the benefit costs.

Plan Administration, Investments and Asset Allocations: The Company has an Investment Committee that meets regularly with investment advisors to establish investment policies, direct investments and select investment options for the qualified plans. The Investment Committee is also responsible for appointing investment managers and monitoring their performance. The Company’s investment policy permits investments in marketable equity securities, such as domestic and foreign stocks, domestic and foreign bonds, venture capital, real estate investments, and cash equivalents. The Company’s investment policy does not permit direct investment in certain types of assets, such as options or commodities, or the use of certain strategies, such as short selling or the purchase of securities on margin.

The Company’s investment strategy for its qualified pension plan assets is to achieve a diversified mix of investments that provides for long-term growth at an acceptable level of risk, and to provide sufficient liquidity to fund ongoing benefit payments. The Company has engaged a number of investment managers to implement various investment strategies to achieve the desired asset class mix, liquidity and risk diversification objectives.

The Company’s target and actual asset allocations at December 31, 2016 and 2015 were as follows:


Asset Categories	Target		2016		2015
Domestic equity securities	53	%	62	%	62	%
International equity securities	15	%	13	%	13	%
Debt securities	22	%	17	%	18	%
Real estate	5	%	6	%	6	%
Other and cash	5	%	2	%	1	%
Total	100	%	100	%	100	%

The Company’s investments in equity securities primarily include domestic large-cap and mid-cap companies, but also includes an allocation to small-cap and international equity securities. Equity investments do not include any direct holdings of the Company’s stock but may include such holdings to the extent that the stock is included as part of certain mutual fund holdings. Debt securities include investment-grade and high-yield corporate bonds from diversified industries, mortgage-backed securities, and U.S. Treasuries. Other types of investments include funds that invest in commercial real estate assets, and to a lesser extent, private equity investments in technology companies. All assets within specific funds are allocated to the target asset allocation of the fund.

The expected return on plan assets is principally based on the Company’s historical returns combined with the Company’s long-term future expectations regarding asset class returns, the mix of plan assets, and inflation assumptions.

Actual return on plan assets for the periods presented are as follows:


Actual Return on Plan Assets	Returns
One-year return	8.3	%
Three-year return	4.0	%
Five-year return	9.4	%
Long-term average return (since plan inception in 1989)	8.3	%

The Company’s pension plan assets are held in a master trust and are stated at estimated fair values of the underlying investments. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Equity Securities: Domestic and international common stocks are valued by obtaining quoted prices on recognized and highly liquid exchanges.

Fixed Income Securities: Corporate bonds and U.S. government treasury and agency securities are valued based upon the closing price reported in the market in which the security is traded. U.S. government agency and corporate asset-backed securities may utilize models, such as a matrix pricing model, that incorporate other observable inputs when broker/dealer quotes are not available, such as cash flow, security structure, or market information.

Real Estate, Private Equity and Insurance Contract Interests: The fair value of real estate, private equity and insurance contract interests are determined by the issuer based on the unit values of the funds. Unit values are determined by dividing the fund’s net assets by the number of units outstanding at the valuation date. Fair value for underlying investments in real estate is determined through independent property appraisals. Fair value of underlying investments in private equity is determined based on information provided by the general partner taking into consideration the purchase price of the underlying securities, developments concerning the investee company subsequent to the acquisition of the investment, financial data and projections of the investee company provided by the general partner, and such other factors as the general partner deems relevant. Insurance contracts are principally invested in real estate assets, which are valued based upon independent appraisals.

The fair values of the Company’s pension plan assets at December 31, 2016 and 2015, by asset category, are as follows (in millions):


	Fair Value Measurements at December 31, 2016
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	7.8	$	7.8	$	—	$	—
Equity securities:
U.S. large-cap		67.1		31.6		35.5		—
U.S. mid- and small-cap		38.9		31.7		7.2		—
International large-cap		16.9		—		16.9		—
International small-cap		6.9		—		6.9		—
Fixed income securities:
U.S. Treasuries		8.9		—		8.9		—
Municipal bonds		9.3		—		9.3		—
Investment grade U.S. corporate bonds		5.3		—		5.3		—
High-yield U.S. corporate bonds		6.3		—		6.3		—
Emerging markets fixed income		0.5		0.5		—		—
Other types of investments:
Real estate partnership interests		10.8		—		—		10.8
Private equity partnership interests		0.1		—		—		0.1
Total	$	178.8	$	71.6	$	96.3	$	10.9


	Fair Value Measurements at December 31, 2015
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.9	$	6.9	$	—	$	—
Equity securities:
U.S. large-cap		64.5		48.6		15.9		—
U.S. mid- and small-cap		34.7		28.7		6.0		—
International large-cap		16.5		—		16.5		—
International small-cap		6.1		—		6.1		—
Fixed income securities:
U.S. Treasuries		5.6		—		5.6		—
Municipal bonds		5.3		—		5.3		—
Investment grade U.S. corporate bonds		2.4		—		2.4		—
High-yield U.S. corporate bonds		6.0		—		6.0		—
Emerging markets fixed income		10.4		10.4		—		—
Other types of investments:
Real estate partnership interests		10.3		—		—		10.3
Private equity partnership interests		0.2		—		—		0.2
Total	$	168.9	$	94.6	$	63.8	$	10.5

The table below presents a reconciliation of all pension plan investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2016 and 2015 (in millions):


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Real Estate		Private Equity		Total
Balance at December 31, 2014	$	9.3	$	0.3	$	9.6
Actual return (loss) on plan assets:
Assets held at the reporting date		1.1		(0.1)		1.0
Assets sold during the period		0.4		—		0.4
Purchases, sales and settlements, net		(0.5)		—		(0.5)
Balance at December 31, 2015		10.3		0.2		10.5
Actual return (loss) on plan assets:
Assets held at the reporting date		0.6		(0.1)		0.5
Assets sold during the period		0.5		0.1		0.6
Purchases, sales and settlements, net		(0.6)		(0.1)		(0.7)
Balance at December 31, 2016	$	10.8	$	0.1	$	10.9

Contributions to each of the qualified single-employer defined benefit pension plans are determined annually by the Company’s pension administrative committee, based upon the actuarially determined minimum required contribution under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, the Pension Protection Act of 2006, and the maximum deductible contribution allowed for tax purposes. In 2016, 2015 and 2014, the Company contributed $7.5 million, $4.7 million and $6.5 million, respectively, in pension contributions in these plans. The Company’s funding policy is to contribute cash to its pension plans so that it meets at least the minimum contribution requirements.

The benefit formulas for employees who are members of collective bargaining units are determined according to the collective bargaining agreements, either using final average pay as the base or a flat dollar amount per year of service.

Effective December 31, 2011, the Company froze benefit accruals under the final average pay formula for salaried, non-bargaining unit employees hired before January 1, 2008 and transitioned them to the same cash balance formula for employees hired on or after January 1, 2008. Retirement benefits under the cash balance formula are based on a fixed percentage of employee eligible compensation, plus interest. The plan interest credit rate will vary from year to year based on the ten-year U.S. Treasury rate.

Benefit Plan Assets and Obligations: The measurement date for the Company’s benefit plan disclosures is December 31 of each year.

The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2016 and 2015 are shown below (in millions):


					Other Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
	2016		2015		2016		2015
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	220.2	$	237.4	$	60.5	$	62.6
Service cost		3.9		3.3		1.5		1.5
Interest cost		9.7		9.5		2.7		2.5
Plan participants’ contributions		—		—		1.0		0.9
Actuarial loss (gain)		4.2		(17.9)		1.9		(3.1)
Benefits paid, net of subsidies received		(11.1)		(10.9)		(4.0)		(3.9)
Expenses paid		(1.5)		(1.2)		—		—
Benefit obligation at end of year		225.4		220.2		63.6		60.5

Change in Plan Assets:
Fair value of plan assets at beginning of year		168.9		178.9		—		—
Actual return on plan assets		15.0		(2.6)		—		—
Plan participants’ contributions		—		—		1.0		0.9
Employer contributions		7.5		4.7		3.0		3.0
Benefits paid, net of subsidies received		(11.1)		(10.9)		(4.0)		(3.9)
Expenses paid		(1.5)		(1.2)		—		—
Fair value of plan assets at end of year		178.8		168.9		—		—
Funded Status and Recognized Liability	$	(46.6)	$	(51.3)	$	(63.6)	$	(60.5)

Qualified pension and other-post retirement benefits plans obligations recognized in the consolidated balance sheets and expenses recognized in accumulated other comprehensive loss at December 31, 2016 and 2015 were as follows (in millions):


					Other Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
	2016		2015		2016		2015
Non-current assets	$	1.0	$	—	$	—	$	—
Current liabilities		—		—		(2.7)		(2.5)
Non-current liabilities, net		(47.6)		(51.3)		(60.9)		(58.0)
Total	$	(46.6)	$	(51.3)	$	(63.6)	$	(60.5)

Net loss, net of taxes	$	(49.1)	$	(50.8)	$	(4.4)	$	(4.7)
Prior service credit, net of taxes		7.7		9.1		—		—
Total	$	(41.4)	$	(41.7)	$	(4.4)	$	(4.7)

The information for qualified pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2016 and 2015 is shown below (in millions):


	2016		2015
Projected benefit obligation	$	223.2	$	218.0
Accumulated benefit obligation	$	222.9	$	217.7
Fair value of plan assets	$	175.9	$	166.2

The estimated net loss and prior service credit for the qualified pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, net of tax, in 2017 is $1.7 million. The estimated net loss and prior service cost for the other post-retirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, net of tax, in 2017 is $0.9 million.

Unrecognized gains and losses of the post-retirement benefit plans are amortized over five years. Although current health care costs are expected to increase, the Company attempts to mitigate these increases by maintaining caps on certain of its benefit plans, using lower cost health care plan options where possible, requiring that certain groups of employees pay a portion of their benefit costs, self‑insuring for certain insurance plans, encouraging wellness programs for employees, and implementing measures to mitigate future benefit cost increases.

Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the other post-retirement benefit plans during 2016, 2015, and 2014 are shown below (in millions):


	Pension Benefits						Other Post-retirement Benefits
	December 31,						December 31,
	2016		2015		2014		2016		2015		2014
Components of Net Periodic Benefit Cost:
Service cost	$	3.9	$	3.3	$	3.3	$	1.5	$	1.5	$	1.1
Interest cost		9.7		9.5		9.4		2.7		2.5		2.6
Expected return on plan assets		(13.4)		(14.0)		(14.1)		—		—		—
Amortization of net loss		5.5		6.4		3.0		1.2		2.2		0.6
Amortization of prior service cost		(2.3)		(2.3)		(2.3)		—		—		—
Net periodic benefit cost	$	3.4	$	2.9	$	(0.7)	$	5.4	$	6.2	$	4.3

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	1.6	$	(1.0)	$	25.4	$	1.2	$	(1.9)	$	5.9
New prior service cost		—		0.1		—		—		—		—
Amortization of net loss		(3.3)		(3.9)		(1.8)		(0.8)		(1.3)		(0.4)
Amortization of prior service credit		1.4		1.4		1.4		—		—		—
Total recognized in other comprehensive income	$	(0.3)	$	(3.4)	$	25.0	$	0.4	$	(3.2)	$	5.5
Total recognized in net periodic benefit cost and other comprehensive income	$	3.1	$	(0.5)	$	24.3	$	5.8	$	3.0	$	9.8

The weighted average assumptions used to determine benefit information during 2016, 2015, and 2014, were as follows:


	Pension Benefits						Other Post-retirement Benefits
	December 31,						December 31,
	2016		2015		2014		2016		2015		2014
Weighted Average Assumptions:
Discount rate (1)	4.40	%	4.50	%	4.10	%	4.60	%	4.60	%	4.20	%
Expected return on plan assets	8.00	%	8.00	%	8.25	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Initial health care cost trend rate (2)											7.10
Pre-65 group							6.60	%	6.80	%
Post-65 group							7.20	%	7.60	%
Ultimate health care cost trend rate							4.40	%	4.40	%	4.50	%
Year ultimate health care cost trend rate is reached (2)											2027
Pre-65 group							2037		2037
Post-65 group							2036		2036

(1)

The Company derives a single equivalent rate utilizing a yield curve constructed from a portfolio of high-quality corporate bonds with various maturities.

(2)

Starting in 2015, initial and ultimate health care trend rates used to determine obligations are different for pre-65 and post-65 populations.

In 2014, the Company adopted a modified version of the new mortality table (RP-2014) issued by the Society of Actuaries in October 2014 along with a modified mortality improvement scale for the purposes of determining the Company’s mortality assumption used in its defined benefit and other post-retirement plan liability calculations. The use of the new table resulted in an increase of approximately $17.6 million and $3.9 million to the projected benefit obligation for pension and other post-retirement benefits, respectively as of December 31, 2014.

If the assumed health care cost trend rate were increased or decreased one percentage point, the accumulated post-retirement benefit obligation, as of December 31, 2016, 2015, and 2014 and the net periodic post-retirement benefit cost for 2016, 2015 and 2014, would have increased or decreased as follows (in millions):


	Other Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
	2016		2015		2014		2016		2015		2014
Effect on total of service and interest cost components	$	0.9	$	0.9	$	0.7	$	(0.7)	$	(0.7)	$	(0.5)
Effect on post-retirement benefit obligation	$	11.5	$	9.4	$	10.0	$	(8.3)	$	(7.4)	$	(7.8)

Non-qualified Pension Plans: The Company has non-qualified supplemental pension plans covering certain employees and retirees, which provide for incremental pension payments from the Company’s general funds so that total pension benefits would be substantially equal to amounts that would have been payable from the Company’s qualified pension plans if it were not for limitations imposed by income tax law. A few employees and retirees receive additional supplemental pension benefits. Non-qualified pension plan obligations recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive loss at December 31, 2016 and 2015 are as follows (in millions):


	Non-qualified
	Pension Benefits
	December 31,
	2016		2015
Current liabilities	$	(1.0)	$	(1.2)
Non-current liabilities, net		(3.3)		(3.1)
Total	$	(4.3)	$	(4.3)

Net loss, net of taxes	$	(0.8)	$	(0.8)
Prior service credit, net of taxes		0.4		0.6
Total	$	(0.4)	$	(0.2)

A discount rate of 3.4 percent was used in determining both the 2016 and 2015 non-qualified pension plan obligations. The estimated net loss and prior service credit for the non-qualified pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, net of tax, in 2017 is $0.1 million.

Estimated Benefit Payments: The estimated future benefit payments for the next ten years are as follows (in millions):


	Qualified
	Pension		Non-qualified		Post-retirement
Year	Benefits		Pension Benefits		Benefits (1)
2017	$	12.4	$	1.0	$	2.7
2018		12.8		1.1		2.8
2019		13.1		0.2		2.9
2020		13.4		0.5		3.0
2021		13.7		—		3.1
2022-2026		73.0		2.7		16.7
Total	$	138.4	$	5.5	$	31.2

(1)

Net of plan participants’ contributions and Medicare D subsidies.

Defined Contribution Plans: The Company sponsors defined contribution plans that qualify under Sections 401(a) and 401(k) of the Internal Revenue Code. The Company may make discretionary matching contributions equal to a specified percentage of each participant’s 401(k) contributions. For the plan year ended December 31, 2016, the Company provided matching contributions of up to 6 percent of eligible employee compensation. The Company’s matching contributions expensed under these plans totaled $2.1 million, $2.0 million and $1.6 million for years ended December 31, 2016, 2015 and 2014. The Company may also provide a discretionary profit sharing contribution under the qualified defined contribution plans, to salaried, non-bargaining unit employees, if both a minimum threshold of Company performance is achieved and the Board has approved the profit sharing contribution. For certain eligible employees, supplemental profit sharing contributions are credited under a non-qualified plan to be paid after separation from service from the Company’s general funds so that total profit sharing contributions would be substantially equal to amounts that would have been contributed to the Company’s qualified defined contribution plans if it were not for limitations imposed by income tax law. There were no discretionary profit sharing contributions made in 2016. Profit sharing contributions expensed in 2015 and 2014 were $1.9 million and $1.6 million, respectively.

Multi-employer Bargaining Plans:

The Company contributes to multi-employer defined benefit pension plans under the terms of collective-bargaining agreements that cover its bargaining unit employees. Contributions are generally based on amounts paid for union labor or cargo volume. The risks of participating in multi-employer plans are different from single-employer plans because assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. Additionally, if one employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

The multi-employer pension plans are subject to the plan termination insurance provisions of ERISA and are paying premiums to the Pension Benefit Guaranty Corporation (“PBGC”). The statutes provide that an employer who withdraws from, or significantly reduces its contribution obligation to, a multi-employer plan generally will be required to continue funding its proportional share of the plan’s unfunded vested benefits. As of December 31, 2016, the Company’s estimated benefit plan withdrawal obligations were $220.8 million. Except as described in Note 12, no withdrawal obligations have been recorded by the Company in the consolidated balance sheets at December 31, 2016 and 2015 as the Company has no present intention of withdrawing from and does not anticipate termination of any of these plans.

Information regarding the Company’s participation in multi-employer pension plans is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2016 and 2015 is for the plan’s year-end at December 31, 2016 and 2015, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The funding improvement plan (“FIP”) or rehabilitation plan (“RP”) column indicates the status which is either pending or has been implemented. The last column lists the expiration dates of the collective-bargaining agreements to which the plans are subject.


			Pension
			Protection Act
			Zone as of		FIP/RP Status		Contributions of Matson
	EIN/Pension		December 31,		Pending/	5%	($ in millions)						Surcharge	Expiration
Pension Funds	Plan Number	Notes	2016	2015	Implemented	Contributor	2016		2015		2014		Imposed	Date (5)
Hawaii Terminals Multiemployer Pension Plan	20-0389370-001		Yellow	Yellow	Implemented	Yes	$	5.3	$	4.9	$	5.1	No	6/30/2019
Hawaii Stevedoring Multiemployer Retirement Plan	99-0314293-001		Yellow	Yellow	Implemented	Yes		3.5		2.8		2.9	No	6/30/2019
Master, Mates and Pilots Pension Plan	13-6372630-001		Green	Green	No	Yes		3.1		2.2		1.9	No	6/15/2023,
														6/15/2027
Masters, Mates and Pilots Adjustable Pension Plan	37-1719247-001		(1)	(1)	No	Yes		1.8		1.7		1.0	No	6/15/2023,
														6/15/2027
MEBA Pension Trust - Defined Benefit Plan	51-6029896-001	(2)	Green	Red	Implemented	Yes		4.1		3.2		2.1	No	8/15/2018,
														6/15/2022
OCU Trust Pension Plan	26-1574440-001		Green	Green	No	No		0.2		0.1		0.1	No	6/30/2023
MFOW Supplementary Pension Plan	94-6201677-001		Green	Green	No	Yes		—		—		—	No	6/30/2017
SIU Pacific District Pension Plan	94-6061923-001		Green	Green	No	No		0.6		—		—	No	6/30/2017
Alaska Teamster - Employer Pension Plan	92-6003463-024	(3)	Red	Red	Implemented	Yes		2.6		1.5		—	Yes	6/30/2018,
														6/30/2019,
														6/30/2020
All Alaska Longshore Pension Plan	91-6085352-001	(3)	Green	Green	No	Yes		0.1		0.5		—	No	6/30/2020
Western Conference of Teamsters Pension Plan	91-6145047-001	(3)	Green	Green	No	No		1.3		0.8		—	No	3/31/2018
Western Conference of Teamsters Supplemental Benefit Trust	95-3746907-001	(3)	Green	Green	No	No		—		—		—	No	3/31/2018
OPEIU Local 153 Pension Plan	13-2864289-001	(3)	Red	Red	Implemented	No		0.1		0.1		—	No	11/09/2017
Seafarers Pension Trust	13-6100329-001	(3) (4)	Green	Green	No	No		—		—		—	No	6/30/2017
Total							$	22.7	$	17.8	$	13.1

(1)

The Plan is not subject to the PPA funding requirements under IRS Section 432 as the Plan was not in effect on July 16, 2006.

(2)

In 2012, the Company agreed to contribute at least 11.7 percent of total wages paid to employees in covered Marine Engineer Benefits Association (“MEBA”) employment to the MEBA Pension Trust by a reallocation of the total labor cost under the collective bargaining agreement. The pension contribution rate was determined by the plan’s actuary to be necessary to maintain full funding of the pension plan and is fully offset by a reallocation of wages and other benefits.

(3)

Matson's contributions to these plans commenced after the Horizon Acquisition on May 29, 2015.

(4)

The Company does not make contributions directly to the Seafarers Pension Plan. Instead, contributions are made to the Seafarers Health and Benefits Plan, and are subsequently re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee.

(5)

Represents the expiration date of the collective bargaining agreement.

The Company also contributes to multi-employer plans that provide health and other benefits other than pensions under the terms of collective-bargaining agreements. Benefits provided to active and retired employees and their eligible dependents under these plans include medical, dental, vision, hearing, prescription drug, death, accidental death and dismemberment, disability, legal aid, scholarship program, wage insurance and license insurance, although not all of these benefits are provided by each plan. These plans are not subject to the PBGC plan termination and withdrawal liability provisions of ERISA applicable to multi-employer defined benefit pension plans. Information related to the Company’s health and benefit plans is as follows:


				Contributions of Matson
			5%	($ in millions)						Surcharge	Expiration
Health and Benefit Plans	EIN Number	Notes	Contributor	2016		2015		2014		Imposed	Date (3)
Stevedore Industry Committee Welfare Benefit Plan	99-0313967-501		Yes	$	4.9	$	3.8	$	3.1	No	6/30/2019
OCU Health and Welfare Trust	26-1574455-501		No		0.3		0.2		0.2	No	6/30/2023
SUP Welfare Plan, Inc.	94-1243666-502		Yes		3.1		2.9		2.7	No	6/30/2017
MEBA Medical and Benefits Plan	13-5590515-501		Yes		2.9		2.2		1.8	No	8/15/2018,
											6/15/2022
MFOW Welfare Fund	94-1254186-501		Yes		1.4		1.3		1.2	No	6/30/2017
ARA Pension and Welfare Plan	13-6083690-501		Yes		0.7		0.5		0.5	No	8/15/2021
Masters, Mates and Pilots Health and Benefit Plan	13-6696938-501		Yes		2.9		2.3		1.6	No	6/15/2023,
											6/15/2027
Seafarers Health and Benefits Plan	13-5557534-501	(1) (2)	Yes		3.1		1.8		—	No	6/30/2017
Alaska Teamster - Employer Welfare Trust	91-6034674-501	(2)	Yes		2.0		1.2		—	No	6/30/2018,
											6/30/2019,
											6/30/2020
All Alaska Longshore Health and Welfare Trust Fund	91-6070467-501	(2)	Yes		0.2		1.3		—	No	6/30/2020
Western Teamsters Welfare Trust	91-6033601-501	(2)	No		1.0		0.6		—	No	3/31/2018
Total				$	22.5	$	18.1	$	11.1

(1)

Contributions made to the Seafarers Health and Benefits Plan are re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee.

(2)

Matson's contributions to these plans commenced after the Horizon Acquisition on May 29, 2015.

(3)

Represents the expiration date of the collective bargaining agreement.

Multi-employer Defined Contribution Plans: The Company contributes to six multi-employer defined contribution pension plans. These plans are not subject to the withdrawal liability provisions of ERISA or the PBGC applicable to multi-employer defined benefit pension plans. Contributions made to these plans by the Company were $5.3 million, $3.8 million and $3.0 million in 2016, 2015 and 2014.

MULTI-EMPLOYER WITHDRAWAL LIABILITY

12 Months Ended

Dec. 31, 2016

MULTI-EMPLOYER WITHDRAWAL LIABILITY

MULTI-EMPLOYER WITHDRAWAL LIABILITY

12.MULTI-EMPLOYER WITHDRAWAL LIABILITY

Horizon ceased all of its operations in Puerto Rico during the first quarter of 2015, which resulted in a mass withdrawal from its multi-employer ILA-PRSSA pension fund (see Note 3). The Company estimated the mass withdrawal liability based upon the expected future undiscounted payments to be paid by the Company, discounted using the Company’s incremental borrowing rate. Payments of approximately $1.0 million are made quarterly to the ILA-PRSSA over a remaining period ending in March 2040. Future estimated annual payments to the multi-employer pension plan as of December 31, 2016 were as follows (in millions):


Year	Total
2017	$	4.1
2018		4.1
2019		4.1
2020		4.1
2021		4.1
Thereafter		76.3
Total future payments		96.8
Less: amount representing interest		(32.6)
Present value of remaining withdrawal liability		64.2
Current portion of withdrawal liability		(4.1)
Long-term portion of withdrawal liability	$	60.1

The current portion of $4.1 million of the mass withdrawal liability is included in accruals and other liabilities in the Consolidated Balance Sheet (see Note 2).

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

SHARE-BASED COMPENSATION

SHARE-BASED AWARDS

13.SHARED-BASED AWARDS

2016 Incentive Compensation Plan: The 2016 Incentive Compensation Plan (the “2016 Plan”) serves as a successor to the 2007 Incentive Compensation Plan, the 1998 Stock Option/Stock Incentive Plan, the 1998 Non-Employee Director Stock Option Plan, the Restricted Stock Bonus Plan and the Non‑Employee Director Stock Retainer Plan (the “Predecessor Plans”). Under the 2016 Plan, 2.5 million shares of common stock were reserved for issuance. Shareholders approved the 2016 Plan at the 2016 Annual Meeting of Shareholders.

The 2016 Plan consists of four separate incentive compensation programs: (i) the discretionary grant program, (ii) the stock issuance program, (iii) the incentive bonus program and (iv) the automatic grant program for the non‑employee members of the Company’s Board of Directors. Share-based compensation is generally awarded under three of the four programs, as more fully described below.

Discretionary Grant Program — Under the Discretionary Grant Program, stock options may be granted with an exercise price no less than 100 percent of the fair market value (defined as the closing market price) of the Company’s common stock on the date of the grant. Options generally become exercisable ratably over three years and have a maximum contractual term of 10 years.

Stock Issuance Program — Under the Stock Issuance Program, shares of common stock, restricted stock units or performance shares may be granted. Time-based equity awards generally vest ratably over three years. Provided certain three-year performance targets are achieved, performance-based equity awards generally vest on the three-year anniversary date of the grant.

Automatic Grant Program — At each annual shareholder meeting, non-employee directors will receive an award of restricted stock units that entitle the holder to an equivalent number of shares of common stock upon vesting, under the automatic grant program. Awards of restricted stock units granted under the program generally vest ratably over one or three years.

The shares of common stock authorized to be issued under the 2016 Plan may be drawn from shares of the Company’s authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or in private transactions.

Predecessor Plans: All predecessor plans have been superseded by the 2016 Plan. No further grants will be made under the predecessor plans.

Activity in the Company’s stock option plans for the year ended December 31, 2016, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


					Weighted		Weighted
			1998		Average		Average	Aggregate
	2007	1998	Director	Total	Exercise		Contractual	Intrinsic
	Plan	Plan	Plan	Shares	Price		Life	Value
Outstanding at December 31, 2015	403	42	16	461	$	21.90
Granted	—	—	—	—
Exercised	75	37	16	128	$	22.53
Forfeited and expired	9	—	—	9	$	20.84
Outstanding at December 31, 2016	319	5	0	324	$	21.67	3.3	$	4,437
Exercisable at December 31, 2016	319	5	—	324	$	21.67	3.3	$	4,437

The following table summarizes non-vested restricted stock unit activity through December 31, 2016, (in thousands, except weighted average grant-date fair value amounts):


	2007 Plan	2016 Plan	Total	Weighted
	Restricted	Restricted	Restricted	Average Grant-
	Stock Units	Stock Units	Stock Units	Date Fair Value
Outstanding at December 31, 2015	678	—	678	$	29.21
Granted	444	19	463		34.70
Vested	(416)	—	(416)		27.85
Canceled	(5)	—	(5)		34.36
Outstanding at December 31, 2016	701	19	720	$	33.35

A summary of compensation expense related to share-based awards for each of the three years in the period ended December 31, 2016, is as follows (in millions):


	Years Ended December 31,
Share-based expense (net of estimated forfeitures):	2016		2015		2014
Non-vested stock and restricted stock units	$	9.8	$	12.2	$	8.4
Stock options		—		—		0.3
Total share-based expense		9.8		12.2		8.7
Total recognized tax benefit		(3.8)		(4.8)		(3.4)
Total Share-based expense (net of tax)	$	6.0	$	7.4	$	5.3

Cash received by Matson upon option exercise	$	1.2	$	2.2	$	5.8
Intrinsic value of options exercised	$	2.0	$	9.2	$	3.4
Tax benefit realized upon option exercise	$	5.9	$	3.4	$	1.9
Fair value of stock vested	$	15.8	$	8.6	$	5.0

Application of alternative assumptions could produce significantly different estimates of the fair value of share‑based compensation and, consequently, significantly affect the related amounts recognized in the Consolidated Statements of Income and Comprehensive Income.

As of December 31, 2016, there was no unrecognized compensation cost related to non-vested stock options. As of December 31, 2016, unrecognized compensation cost related to non-vested restricted stock units and performance-based equity awards were $11.3 million. That unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 1.8 years.

REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2016

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

15.REPORTABLE SEGMENTS

Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s chief operating decision maker is its Chief Executive Officer.

The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income, exclusive of interest expense and income taxes. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s Terminal Joint Venture segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of the Terminal Joint Venture being an integral part of the Company’s Ocean Transportation business (see Note 4). Included in the reportable segment information below are 53 weeks in the 2016 fiscal year, and 52 weeks in the 2015 and 2014 fiscal years.

Reportable segment information for 2016, 2015, and 2014, are as follows (in millions):


	Years Ended December 31,
	2016		2015		2014
Operating Revenue:
Ocean Transportation (1)	$	1,541.1	$	1,498.0	$	1,278.4
Logistics (2)		400.5		386.9		435.8
Total Operating Revenue	$	1,941.6	$	1,884.9	$	1,714.2
Operating Income:
Ocean Transportation (1)(3)	$	141.3	$	187.8	$	131.1
Logistics (2)		11.9		8.5		8.9
Total Operating Income		153.2		196.3		140.0
Interest expense, net		(24.1)		(18.5)		(17.3)
Income before Income Taxes		129.1		177.8		122.7
Income taxes		(48.6)		(74.8)		(51.9)
Net Income	$	80.5	$	103.0	$	70.8

(1)

2016 and 2015 Ocean Transportation segment information include the operations of Horizon acquired as of May 29, 2015.

(2)

2016 Logistics segment information include the operations of Span Alaska acquired as of August 4, 2016.

(3)

Ocean Transportation segment information includes $15.8 million, $16.5 million and $6.6 million of equity in income from the Company’s Terminal Joint Venture, SSAT, for the years ended December 31, 2016, 2015, and 2014, respectively.


	As of December 31,
	2016		2015		2014
Identifiable Assets:
Ocean Transportation (1)	$	1,722.2	$	1,601.0	$	1,313.9
Logistics		293.3		68.8		87.9
Total Assets	$	2,015.5	$	1,669.8	$	1,401.8

Capital Expenditures:
Ocean Transportation	$	179.1	$	67.5	$	27.8
Logistics		0.3		0.3		0.1
Total Capital Expenditures	$	179.4	$	67.8	$	27.9

Depreciation and Amortization:
Ocean Transportation	$	92.6	$	81.4	$	66.6
Logistics		4.5		2.0		3.1
		97.1		83.4		69.7
Deferred dry-docking amortization - Ocean Transportation		38.9		23.1		21.1
Total Depreciation and Amortization	$	136.0	$	106.5	$	90.8

(1)The Ocean Transportation segment includes $82.4 million, $66.4 million and $64.4 million related to the Company’s Terminal Joint Venture equity investment in SSAT as of December 31, 2016, 2015, and 2014, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

QUARTERLY INFORMATION (Unaudited)

12 Months Ended

Dec. 31, 2016

QUARTERLY INFORMATION (Unaudited)

QUARTERLY INFORMATION (Unaudited)

16.QUARTERLY INFORMATION (Unaudited)

Segment results by quarter for 2016 and 2015 are as follows (in millions, except per-share amounts):


	Quarters in the Year Ended December 31, 2016
	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	366.1	$	370.9	$	398.0	$	406.1
Logistics (1)		88.1		96.8		102.4		113.2
Total Operating Revenue	$	454.2	$	467.7	$	500.4	$	519.3
Operating Income:
Ocean Transportation	$	33.0	$	33.9	$	42.7	$	31.7
Logistics (1)		1.6		2.2		3.5		4.6
Total Operating Income		34.6		36.1		46.2		36.3
Interest Expense		(4.9)		(6.5)		(6.0)		(6.7)
Income before Income Taxes		29.7		29.6		40.2		29.6
Income Tax Expense		(11.6)		(11.6)		(15.2)		(10.2)
Net Income	$	18.1	$	18.0	$	25.0	$	19.4

Basic Earnings Per Share:	$	0.42	$	0.42	$	0.58	$	0.45
Diluted Earnings Per Share:	$	0.41	$	0.42	$	0.58	$	0.44


	Quarters in the Year Ended December 31, 2015
	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation (2)	$	305.5	$	346.7	$	444.8	$	401.0
Logistics		92.7		100.9		99.5		93.8
Total Operating Revenue	$	398.2	$	447.6	$	544.3	$	494.8
Operating Income:
Ocean Transportation (2)	$	43.9	$	31.4	$	68.9	$	43.6
Logistics		1.0		2.3		2.9		2.3
Total Operating Income		44.9		33.7		71.8		45.9
Interest Expense		(4.3)		(4.6)		(4.7)		(4.9)
Income before Income Taxes		40.6		29.1		67.1		41.0
Income Tax Expense		(15.6)		(19.2)		(25.6)		(14.4)
Net Income	$	25.0	$	9.9	$	41.5	$	26.6

Basic Earnings Per Share:	$	0.58	$	0.23	$	0.95	$	0.61
Diluted Earnings Per Share:	$	0.57	$	0.23	$	0.94	$	0.60

(1)

2016 segment results include the operations of Span Alaska acquired as of August 4, 2016.

(2)

2016 and 2015 segment results include the operations of Horizon acquired as of May 29, 2015.

The following infrequent transactions impacted the Company’s quarterly segment results during 2016 and 2015 (in millions):


	Quarters in the Year Ended December 31, 2016
	Q1		Q2		Q3		Q4
Span Alaska Acquisition Related Costs (1):	$	(0.1)	$	(0.1)	$	(2.6)	$	(0.2)
Molasses Settlement (2):	$	—	$	—	$	—	$	(0.7)


	Quarters in the Year Ended December 31, 2015
	Q1		Q2		Q3		Q4
Horizon Acquisition Related Costs (3):	$	—	$	(12.4)	$	(5.1)	$	(1.5)
Molasses Settlement (2):	$	—	$	(11.4)	$	—	$	(1.9)

(1)

One-time costs related to the Span Alaska Acquisition included in selling, general and administrative costs (see Note 3).

(2)

Litigation settlement entered into by the Company during 2016 and 2015 resulting from molasses spill in September 2013, included in selling, general and administrative costs of the Ocean Transportation segment.

(3)

One-time costs related to the Horizon Acquisition included in selling, general and administrative costs.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Fiscal Year

Foreign Currency Transactions

Use of Estimates

Reclassification

Cash and Cash Equivalents

Fair Value of Financial Instruments


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
	December 31, 2016		Fair Value Measurements at December 31, 2016
Cash and cash equivalents	$	13.9	$	13.9	$	13.9	$	—	$	—
Accounts receivable, net		189.5		189.5		—		189.5		—
Capital Construction Fund - cash on deposit		31.2		31.2		—		31.2		—
Variable rate debt		55.0		55.0		—		55.0		—
Fixed rate debt		683.9		685.2		—		685.2		—


	December 31, 2015		Fair Value Measurements at December 31, 2015
Cash and cash equivalents	$	25.5	$	25.5	$	25.5	$	—	$	—
Accounts receivable, net		192.8		192.8		—		192.8		—
Fixed rate debt		429.9		443.8		—		443.8		—

Accounts Receivable, net

Allowance for Doubtful Accounts


	Balance at		Expense		Write-offs		Balance at
Year	Beginning of Year		(Recovery)		and Other		End of Year
2016 (1)	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6
2014	$	4.1	$	1.8	$	(0.9)	$	5.0

(1)

2016 expense includes amounts recovered from previously reserved doubtful accounts.

Prepaid expenses and Other Assets

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Prepaid Expenses and Other Assets	2016		2015
Income tax receivables	$	23.4	$	15.1
Insurance related receivables		17.6		18.3
Prepaid fuel		11.5		9.3
Other		18.3		16.9
Total	$	70.8	$	59.6

Impairment of Terminal Joint Venture Investment

The Company has evaluated its investment in its related party Terminal Joint Venture for impairment and no impairment charges were recorded for the years ended December 31, 2016, 2015, and 2014.

Property and Equipment


Classification		Life
Vessels		40 years
Machinery and equipment		20 years
Terminal facilities		35 years

Capitalized Interest

Deferred Dry-docking Costs

Goodwill and Intangible Assets

Impairment of Long-Lived Assets, Intangible Assets and Goodwill

Accruals and other liabilities

Accruals and other liabilities: Accruals and other liabilities consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Accruals and Other Liabilities	2016		2015
Payroll and vacation benefits	$	23.3	$	23.1
Uninsured claims and related liabilities - short term		18.4		27.1
Incentives and other benefits		9.6		20.7
Molasses tank farm removal accrual		3.1		7.4
Restructuring and severance accruals related to Horizon		—		5.0
Interest on debt		5.8		3.9
Multi-employer withdrawal liability - short-term (see Note 12)		4.1		4.1
Other liabilities		12.6		19.4
Total	$	76.9	$	110.7

Pension and Post-Retirement Plans

Uninsured Claims and Related Liabilities

Legal Contingencies

Recognition of Revenues and Expenses

Dividends

Dividends: The Company recognizes dividends as a liability when approved by the Board of Directors.

Share-Based Compensation

Income Taxes

Comprehensive Income (Loss)


					Non-								Accumulated
					Qualified		Foreign						Other
			Post		Pension		Currency		Interest				Comprehensive
	Pensions		Retirement		Plans		Translation		Hedge		Other		Income (Loss)
Balance at December 31, 2014	$	(45.0)	$	(7.2)	$	(0.5)	$	0.3	$	(0.7)	$	(0.2)	$	(53.3)
Net gain (loss) in prior service costs		3.7		1.4		0.5		—		—		(0.5)		5.1
Amortization of prior service cost		(1.3)		0.1		(0.1)		—		—		—		(1.3)
Amortization of net loss (gain)		0.9		1.0		(0.1)		—		—		—		1.8
Foreign currency translation adjustment		—		—		—		0.7		—		—		0.7
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2015		(41.7)		(4.7)		(0.2)		1.0		(0.6)		(0.7)		(46.9)
Net gain (loss) in prior service costs		—		0.7		(0.1)		—		—		0.1		0.7
Amortization of prior service cost		(1.4)		—		(0.1)		—		—		0.2		(1.3)
Amortization of net loss (gain)		1.7		(0.4)		—		—		—		(0.1)		1.2
Foreign currency translation adjustment		—		—		—		0.1		—		—		0.1
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2016	$	(41.4)	$	(4.4)	$	(0.4)	$	1.1	$	(0.5)	$	(0.5)	$	(46.1)

Basic and Diluted Earnings per Share (“EPS”) of Common Stock

The denominator used to compute basic and diluted earnings per share for the three years ended December 31, 2016, were as follows (in millions):


	Year Ended December 31, 2016					Year Ended December 31, 2015					Year Ended December 31, 2014
			Weighted	Per				Weighted	Per				Weighted	Per
			Average	Common				Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share		Net		Common	Share
	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
Basic:	$	80.5	43.1	$	1.87	$	103.0	43.5	$	2.37	$	70.8	43.0	$	1.65
Effect of Dilutive Securities:			0.4		(0.02)			0.5		(0.03)			0.4		(0.02)
Diluted:	$	80.5	43.5	$	1.85	$	103.0	44.0	$	2.34	$	70.8	43.4	$	1.63

Rounding

New Accounting Pronouncements: Revenue from Contracts with Customers

New Accounting Pronouncements: Leases

New Accounting Pronouncements: Share-Based Awards

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

Schedule of fair value measurement

. The carrying value and fair value of the Company’s financial instruments as of December 31, 2016 and 2015 are as follows (in millions).


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
	December 31, 2016		Fair Value Measurements at December 31, 2016
Cash and cash equivalents	$	13.9	$	13.9	$	13.9	$	—	$	—
Accounts receivable, net		189.5		189.5		—		189.5		—
Capital Construction Fund - cash on deposit		31.2		31.2		—		31.2		—
Variable rate debt		55.0		55.0		—		55.0		—
Fixed rate debt		683.9		685.2		—		685.2		—


	December 31, 2015		Fair Value Measurements at December 31, 2015
Cash and cash equivalents	$	25.5	$	25.5	$	25.5	$	—	$	—
Accounts receivable, net		192.8		192.8		—		192.8		—
Fixed rate debt		429.9		443.8		—		443.8		—

Schedule of changes in the allowance for doubtful accounts receivable

The changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2016 were as follows (in millions):


	Balance at		Expense		Write-offs		Balance at
Year	Beginning of Year		(Recovery)		and Other		End of Year
2016 (1)	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6
2014	$	4.1	$	1.8	$	(0.9)	$	5.0

(1)

2016 expense includes amounts recovered from previously reserved doubtful accounts.

Schedule of prepaid expenses and other assets

Prepaid expenses and other assets consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Prepaid Expenses and Other Assets	2016		2015
Income tax receivables	$	23.4	$	15.1
Insurance related receivables		17.6		18.3
Prepaid fuel		11.5		9.3
Other		18.3		16.9
Total	$	70.8	$	59.6

Schedule of estimated useful lives of property and equipment


Classification		Life
Vessels		40 years
Machinery and equipment		20 years
Terminal facilities		35 years

Schedule of accrued and other liabilities

Accruals and other liabilities consist of the following at December 31, 2016 and 2015 (in millions):


	As of December 31,
Accruals and Other Liabilities	2016		2015
Payroll and vacation benefits	$	23.3	$	23.1
Uninsured claims and related liabilities - short term		18.4		27.1
Incentives and other benefits		9.6		20.7
Molasses tank farm removal accrual		3.1		7.4
Restructuring and severance accruals related to Horizon		—		5.0
Interest on debt		5.8		3.9
Multi-employer withdrawal liability - short-term (see Note 12)		4.1		4.1
Other liabilities		12.6		19.4
Total	$	76.9	$	110.7

Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax

Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows (in millions):


					Non-								Accumulated
					Qualified		Foreign						Other
			Post		Pension		Currency		Interest				Comprehensive
	Pensions		Retirement		Plans		Translation		Hedge		Other		Income (Loss)
Balance at December 31, 2014	$	(45.0)	$	(7.2)	$	(0.5)	$	0.3	$	(0.7)	$	(0.2)	$	(53.3)
Net gain (loss) in prior service costs		3.7		1.4		0.5		—		—		(0.5)		5.1
Amortization of prior service cost		(1.3)		0.1		(0.1)		—		—		—		(1.3)
Amortization of net loss (gain)		0.9		1.0		(0.1)		—		—		—		1.8
Foreign currency translation adjustment		—		—		—		0.7		—		—		0.7
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2015		(41.7)		(4.7)		(0.2)		1.0		(0.6)		(0.7)		(46.9)
Net gain (loss) in prior service costs		—		0.7		(0.1)		—		—		0.1		0.7
Amortization of prior service cost		(1.4)		—		(0.1)		—		—		0.2		(1.3)
Amortization of net loss (gain)		1.7		(0.4)		—		—		—		(0.1)		1.2
Foreign currency translation adjustment		—		—		—		0.1		—		—		0.1
Other		—		—		—		—		0.1		—		0.1
Balance at December 31, 2016	$	(41.4)	$	(4.4)	$	(0.4)	$	1.1	$	(0.5)	$	(0.5)	$	(46.1)

Schedule of basic and diluted earnings per share

The denominator used to compute basic and diluted earnings per share for the three years ended December 31, 2016, were as follows (in millions):


	Year Ended December 31, 2016					Year Ended December 31, 2015					Year Ended December 31, 2014
			Weighted	Per				Weighted	Per				Weighted	Per
			Average	Common				Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share		Net		Common	Share
	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
Basic:	$	80.5	43.1	$	1.87	$	103.0	43.5	$	2.37	$	70.8	43.0	$	1.65
Effect of Dilutive Securities:			0.4		(0.02)			0.5		(0.03)			0.4		(0.02)
Diluted:	$	80.5	43.5	$	1.85	$	103.0	44.0	$	2.34	$	70.8	43.4	$	1.63

BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of pro forma financial information


	Years Ended December 31,
(in millions, except per-share amount)	2016		2015
Pro Forma Combined:
Operating revenue	$	1,974.2	$	2,076.4
Net income	$	84.9	$	107.7
Basic Earnings Per-Share:	$	1.97	$	2.48
Diluted Earnings Per-Share:	$	1.95	$	2.45
Weighted-Average Number of Shares Outstanding:
Basic		43.1		43.5
Diluted		43.5		44.0

Span Alaska

Schedule of total consideration paid for the membership interests in Span Alaska


Span Alaska Consideration	Total
Membership interests	$	117.0
Span Alaska’s debt		81.9
Total	$	198.9

Summary of estimated fair values assigned to Span Alaska’s assets acquired and liabilities assumed


Purchase Price Allocation (in millions)	Total
Cash and cash equivalents	$	4.4
Accounts receivable		11.1
Prepaid and other current assets		0.9
Property and equipment		8.1
Intangibles – Customer relationships		79.3
Intangibles – Trade name		27.3
Other long-term assets		0.1
Accounts payable		(3.3)
Accruals and other current liabilities		(6.4)
Capital lease obligations		(1.2)
Span Alaska’s debt		(81.9)
Total identifiable assets less liabilities		38.4
Total consideration for membership interests		(117.0)
Goodwill	$	78.6

Horizon

Summary of estimated fair values assigned to Span Alaska’s assets acquired and liabilities assumed


Purchase Price Allocation (in millions)	Preliminary Estimates		Adjustments		Final
Cash and cash equivalents	$	0.8	$	—	$	0.8
Accounts receivable		31.7		—		31.7
Other current assets		7.2		—		7.2
Deferred tax assets, net		45.6		0.7		46.3
Property and equipment		170.4		—		170.4
Intangibles - Customer relationships		140.0		—		140.0
Other long-term assets		4.1		—		4.1
Accounts payable		(22.8)		—		(22.8)
Accruals and other current liabilities		(32.1)		0.7		(31.4)
Multi-employer withdrawal liability		(60.6)		(4.9)		(65.5)
Capital lease obligations		(1.6)		—		(1.6)
Horizon's debt and warrants		(467.5)		—		(467.5)
Total identifiable assets less liabilities		(184.8)		(3.5)		(188.3)
Total cash paid for common shares		(29.4)		—		(29.4)
Goodwill	$	214.2	$	3.5	$	217.7

INVESTMENT IN TERMINAL JOINT VENTURE (Tables)

12 Months Ended

Dec. 31, 2016

INVESTMENT IN TERMINAL JOINT VENTURE

Schedule of company share of net incomes and dividends received from investments in terminal joint venture


	Years Ended December 31,
Terminal Joint Venture	2016		2015		2014
Company Share of Net Income	$	15.8	$	16.5	$	6.6
Distributions Received	$	—	$	14.0	$	—

Unaudited condensed financial information for the Terminal Joint Venture - Balance Sheet

A summary of unaudited condensed financial information for the Terminal Joint Venture at December 31, 2016 and 2015 is as follows (in millions):


	As of December 31,
Condensed Balance Sheets (Unaudited)	2016		2015
Current assets	$	147.7	$	107.0
Non-current assets		138.5		121.2
Total Assets	$	286.2	$	228.2

Current liabilities	$	48.9	$	42.0
Non-current liabilities		14.8		9.4
Equity		222.5		176.8
Total Liabilities and Equity	$	286.2	$	228.2

Unaudited financial information for the Terminal Joint Venture - Statement of Operating Income (Loss) and Net Income


	Years Ended December 31,
Condensed Statements of Operating Income (Loss) and Net Income (Unaudited)	2016		2015		2014
Operating revenue	$	740.9	$	621.0	$	586.2
Operating costs and expenses		706.5		610.2		589.7
Operating income (loss)		34.4		10.8		(3.5)
Net Income (1)	$	45.1	$	44.9	$	21.2

(1)Includes earnings from equity method investments held by the Terminal Joint Venture.

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2016

PROPERTY AND EQUIPMENT

Schedule of property and equipment

Property and equipment at December 31, 2016 and 2015, and depreciation expense in the three years ended December 31, 2016 includes the following (in millions):


	As of December 31, 2016
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,416.1	$	840.7	$	575.4
Containers and equipment		536.9		326.7		210.2
Terminal facilities and other property		43.2		35.3		7.9
Vessel construction in progress		124.5		—		124.5
Other construction in progress		31.2		—		31.2
Total	$	2,151.9	$	1,202.7	$	949.2


	As of December 31, 2015
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,384.8	$	787.4	$	597.4
Containers and equipment		496.0		307.8		188.2
Terminal facilities and other property		42.0		33.4		8.6
Vessel construction in progress		30.0		—		30.0
Other construction in progress		36.1		—		36.1
Total	$	1,988.9	$	1,128.6	$	860.3

Schedule of depreciation expense


	Years Ended December 31,
	2016		2015		2014
Depreciation Expense	$	86.0	$	76.4	$	66.8

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

GOODWILL AND INTANGIBLE ASSETS

Schedule of goodwill

Changes in the Company’s goodwill for the years ended December 31, 2016 and 2015 consist of the following (in millions):


	Goodwill
	Ocean
	Transportation		Logistics		Total
Balance at December 31, 2014	$	0.8	$	26.6	$	27.4
Additions - Horizon Acquisition		214.2		—		214.2
Balance at December 31, 2015		215.0		26.6		241.6
Additions - Horizon Acquisition		3.5		—		3.5
Additions - Span Alaska Acquisition		—		78.6		78.6
Balance at December 31, 2016	$	218.5	$	105.2	$	323.7

Schedule of intangible assets

Intangible assets as of December 31, 2016 include the following (in millions):


	Intangible Assets
	Ocean
	Transportation		Logistics		Total
Gross Amount at December 31, 2015	$	140.6	$	10.8	$	151.4
Additions - Span Alaska Acquisition		—		106.6		106.6
Gross Amount at December 31, 2016		140.6		117.4		258.0
Accumulated Amortization		(11.0)		(10.4)		(21.4)
Net Amount at December 31, 2016	$	129.6	$	107.0	$	236.6

Intangible assets as of December 31, 2015 include the following (in millions):


	Intangible Assets
	Ocean
	Transportation		Logistics		Total
Gross Amount at December 31, 2014	$	0.6	$	9.8	$	10.4
Additions - Horizon Acquisition		140.0		—		140.0
Additions - Other Acquisitions		—		1.0		1.0
Gross Amount at December 31, 2015		140.6		10.8		151.4
Accumulated Amortization		(4.2)		(8.1)		(12.3)
Net Amount at December 31, 2015	$	136.4	$	2.7	$	139.1

Schedule of estimated amortization expenses related to intangible assets

As of December 31, 2016, estimated amortization expenses related to intangible assets – customer relationships during the next five years and thereafter are as follows (in millions):


	Customer
Year	Relationships
2017	$	11.3
2018		11.2
2019		11.0
2020		11.0
2021		10.9
Thereafter		153.9
Total	$	209.3

DEBT (Tables)

12 Months Ended

Dec. 31, 2016

DEBT

Schedule of debt

At December 31, 2016 and 2015, the Company’s debt consisted of the following (in millions):


	As of December 31,
	2016		2015
Term Loans:
5.79 %, payable through 2020	$	24.5	$	31.5
3.66 %, payable through 2023		59.3		68.4
4.16 %, payable through 2027		55.0		55.0
3.37 %, payable through 2027		75.0		—
3.14 %, payable through 2031		200.0		—
4.31 %, payable through 2032		37.5		37.5
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		75.0		75.0
Title XI Bonds:
5.34 %, payable through 2028		26.4		28.6
5.27 %, payable through 2029		28.6		30.8
Revolving credit facility		55.0		—
Capital leases		2.6		3.1
Total Debt		738.9		429.9
Less: Current portion		(31.8)		(22.0)
Total Long-term Debt	$	707.1	$	407.9

Schedule of maturities of debt

At December 31, 2016, debt maturities during the next five years and thereafter are as follows (in millions):


Year	Total
2017	$	31.8
2018		30.7
2019		42.1
2020		48.4
2021		54.2
Thereafter		531.7
Total debt	$	738.9

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2016

LEASES

Schedule of future minimum payments under operating leases

Future minimum payments under operating leases as of December 31, 2016 were as follows (in millions):


Year	Total
2017	$	45.5
2018		37.3
2019		30.2
2020		24.9
2021		13.8
Thereafter		31.2
Total minimum lease payments	$	182.9

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of income tax expense

Income tax expense for the years ended December 31, 2016, 2015 and 2014 consisted of the following (in millions):


	Years Ended December 31,
	2016		2015		2014
Current:
Federal	$	10.0	$	22.6	$	45.5
State		(1.3)		2.9		3.7
Total		8.7		25.5		49.2
Deferred:		39.9		49.3		2.7
Total income tax expense	$	48.6	$	74.8	$	51.9

Schedule of effective income tax rate


	Years Ended December 31,
	2016		2015		2014
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	1.8	%	2.5	%	2.2	%
Valuation allowance	0.3	%	1.1	%	3.3	%
Foreign taxes	0.4	%	0.6	%	0.4	%
Deferred tax adjustment	0.1	%	1.1	%	(0.9)	%
Unrecognized tax benefits	(1.0)	%	0.4	%	(0.4)	%
Other — net	1.0	%	1.4	%	2.7	%
Effective income tax rate	37.6	%	42.1	%	42.3	%

Schedule of tax effects of temporary differences

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015, were as follows (in millions):


	As of December 31,
	2016		2015
Deferred tax assets:
Benefit plans	$	78.1	$	79.1
Federal net operating losses		52.1		68.0
Insurance reserves		9.9		15.4
State net operating losses		7.9		7.8
Foreign losses		4.9		5.7
Alternative minimum tax credits		31.0		3.6
Allowance for doubtful accounts		1.3		2.4
Reserves		2.4		—
Other		3.5		1.9
Total deferred tax assets		191.1		183.9
Valuation allowance		(11.9)		(12.6)
Total Deferred tax assets, net of valuation allowance		179.2		171.3

Deferred tax liabilities:
Basis differences for property and equipment		339.0		300.8
Capital Construction Fund		115.8		95.6
Intangibles		53.8		53.0
Deferred revenue		9.5		11.8
Joint ventures and other investments		9.9		10.6
Reserves		—		10.0
Total deferred tax liabilities		528.0		481.8
Deferred tax liability, net	$	348.8	$	310.5

Schedule of company’s net operating losses (“NOLs”) and tax credit carryforwards


(in millions)	Expiration Date	2016		2015
U.S. Federal income tax NOLs	Various dates through December 31, 2034	$	190.0	$	194.2
U.S. State income tax NOLs	Various dates through December 31, 2034	$	192.8	$	192.4
Foreign income tax NOLs	No expiration date	$	17.6	$	20.2
U.S. alternative minimum tax credit	No expiration date	$	31.0	$	3.6

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):


Unrecognized Tax Benefits:	Amount
Balance at December 31, 2013	$	7.2
Changes in tax positions of prior years, net		0.5
Reductions for lapse of statute of limitations		(1.0)
Balance at December 31, 2014		6.7
Changes in tax positions of prior years, net		1.5
Additions from unrecognized tax benefits acquired		14.4
Reductions for lapse of statute of limitations		(0.5)
Balance at December 31, 2015		22.1
Changes in tax positions of prior years, net		(1.1)
Reductions for lapse of statute of limitations		(0.6)
Balance at December 31, 2016	$	20.4

PENSION AND OTHER POST-RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

PENSION AND OTHER POST-RETIREMENT PLANS

Schedule of the Company's target and actual asset allocations


Asset Categories	Target		2016		2015
Domestic equity securities	53	%	62	%	62	%
International equity securities	15	%	13	%	13	%
Debt securities	22	%	17	%	18	%
Real estate	5	%	6	%	6	%
Other and cash	5	%	2	%	1	%
Total	100	%	100	%	100	%

Schedule of the Company's actual return on plan assets


Actual Return on Plan Assets	Returns
One-year return	8.3	%
Three-year return	4.0	%
Five-year return	9.4	%
Long-term average return (since plan inception in 1989)	8.3	%

Schedule of the fair values of the Company's pension plan assets, by asset category

The fair values of the Company’s pension plan assets at December 31, 2016 and 2015, by asset category, are as follows (in millions):


	Fair Value Measurements at December 31, 2016
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	7.8	$	7.8	$	—	$	—
Equity securities:
U.S. large-cap		67.1		31.6		35.5		—
U.S. mid- and small-cap		38.9		31.7		7.2		—
International large-cap		16.9		—		16.9		—
International small-cap		6.9		—		6.9		—
Fixed income securities:
U.S. Treasuries		8.9		—		8.9		—
Municipal bonds		9.3		—		9.3		—
Investment grade U.S. corporate bonds		5.3		—		5.3		—
High-yield U.S. corporate bonds		6.3		—		6.3		—
Emerging markets fixed income		0.5		0.5		—		—
Other types of investments:
Real estate partnership interests		10.8		—		—		10.8
Private equity partnership interests		0.1		—		—		0.1
Total	$	178.8	$	71.6	$	96.3	$	10.9


	Fair Value Measurements at December 31, 2015
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.9	$	6.9	$	—	$	—
Equity securities:
U.S. large-cap		64.5		48.6		15.9		—
U.S. mid- and small-cap		34.7		28.7		6.0		—
International large-cap		16.5		—		16.5		—
International small-cap		6.1		—		6.1		—
Fixed income securities:
U.S. Treasuries		5.6		—		5.6		—
Municipal bonds		5.3		—		5.3		—
Investment grade U.S. corporate bonds		2.4		—		2.4		—
High-yield U.S. corporate bonds		6.0		—		6.0		—
Emerging markets fixed income		10.4		10.4		—		—
Other types of investments:
Real estate partnership interests		10.3		—		—		10.3
Private equity partnership interests		0.2		—		—		0.2
Total	$	168.9	$	94.6	$	63.8	$	10.5

Reconciliation of all pension plan fair value measurements using significant unobservable inputs (level 3)


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Real Estate		Private Equity		Total
Balance at December 31, 2014	$	9.3	$	0.3	$	9.6
Actual return (loss) on plan assets:
Assets held at the reporting date		1.1		(0.1)		1.0
Assets sold during the period		0.4		—		0.4
Purchases, sales and settlements, net		(0.5)		—		(0.5)
Balance at December 31, 2015		10.3		0.2		10.5
Actual return (loss) on plan assets:
Assets held at the reporting date		0.6		(0.1)		0.5
Assets sold during the period		0.5		0.1		0.6
Purchases, sales and settlements, net		(0.6)		(0.1)		(0.7)
Balance at December 31, 2016	$	10.8	$	0.1	$	10.9

Schedule of change in benefit obligation and plan assets

The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2016 and 2015 are shown below (in millions):


					Other Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
	2016		2015		2016		2015
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	220.2	$	237.4	$	60.5	$	62.6
Service cost		3.9		3.3		1.5		1.5
Interest cost		9.7		9.5		2.7		2.5
Plan participants’ contributions		—		—		1.0		0.9
Actuarial loss (gain)		4.2		(17.9)		1.9		(3.1)
Benefits paid, net of subsidies received		(11.1)		(10.9)		(4.0)		(3.9)
Expenses paid		(1.5)		(1.2)		—		—
Benefit obligation at end of year		225.4		220.2		63.6		60.5

Change in Plan Assets:
Fair value of plan assets at beginning of year		168.9		178.9		—		—
Actual return on plan assets		15.0		(2.6)		—		—
Plan participants’ contributions		—		—		1.0		0.9
Employer contributions		7.5		4.7		3.0		3.0
Benefits paid, net of subsidies received		(11.1)		(10.9)		(4.0)		(3.9)
Expenses paid		(1.5)		(1.2)		—		—
Fair value of plan assets at end of year		178.8		168.9		—		—
Funded Status and Recognized Liability	$	(46.6)	$	(51.3)	$	(63.6)	$	(60.5)

Schedule of amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss


					Other Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
	2016		2015		2016		2015
Non-current assets	$	1.0	$	—	$	—	$	—
Current liabilities		—		—		(2.7)		(2.5)
Non-current liabilities, net		(47.6)		(51.3)		(60.9)		(58.0)
Total	$	(46.6)	$	(51.3)	$	(63.6)	$	(60.5)

Net loss, net of taxes	$	(49.1)	$	(50.8)	$	(4.4)	$	(4.7)
Prior service credit, net of taxes		7.7		9.1		—		—
Total	$	(41.4)	$	(41.7)	$	(4.4)	$	(4.7)

Schedule of information for qualified pension plans with an accumulated benefit obligation in excess of plan assets

The information for qualified pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2016 and 2015 is shown below (in millions):


	2016		2015
Projected benefit obligation	$	223.2	$	218.0
Accumulated benefit obligation	$	222.9	$	217.7
Fair value of plan assets	$	175.9	$	166.2

Schedule of components of the net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income


	Pension Benefits						Other Post-retirement Benefits
	December 31,						December 31,
	2016		2015		2014		2016		2015		2014
Components of Net Periodic Benefit Cost:
Service cost	$	3.9	$	3.3	$	3.3	$	1.5	$	1.5	$	1.1
Interest cost		9.7		9.5		9.4		2.7		2.5		2.6
Expected return on plan assets		(13.4)		(14.0)		(14.1)		—		—		—
Amortization of net loss		5.5		6.4		3.0		1.2		2.2		0.6
Amortization of prior service cost		(2.3)		(2.3)		(2.3)		—		—		—
Net periodic benefit cost	$	3.4	$	2.9	$	(0.7)	$	5.4	$	6.2	$	4.3

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	1.6	$	(1.0)	$	25.4	$	1.2	$	(1.9)	$	5.9
New prior service cost		—		0.1		—		—		—		—
Amortization of net loss		(3.3)		(3.9)		(1.8)		(0.8)		(1.3)		(0.4)
Amortization of prior service credit		1.4		1.4		1.4		—		—		—
Total recognized in other comprehensive income	$	(0.3)	$	(3.4)	$	25.0	$	0.4	$	(3.2)	$	5.5
Total recognized in net periodic benefit cost and other comprehensive income	$	3.1	$	(0.5)	$	24.3	$	5.8	$	3.0	$	9.8

Schedule of weighted average assumptions used to determine benefit information


	Pension Benefits						Other Post-retirement Benefits
	December 31,						December 31,
	2016		2015		2014		2016		2015		2014
Weighted Average Assumptions:
Discount rate (1)	4.40	%	4.50	%	4.10	%	4.60	%	4.60	%	4.20	%
Expected return on plan assets	8.00	%	8.00	%	8.25	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Initial health care cost trend rate (2)											7.10
Pre-65 group							6.60	%	6.80	%
Post-65 group							7.20	%	7.60	%
Ultimate health care cost trend rate							4.40	%	4.40	%	4.50	%
Year ultimate health care cost trend rate is reached (2)											2027
Pre-65 group							2037		2037
Post-65 group							2036		2036

(1)

The Company derives a single equivalent rate utilizing a yield curve constructed from a portfolio of high-quality corporate bonds with various maturities.

(2)

Starting in 2015, initial and ultimate health care trend rates used to determine obligations are different for pre-65 and post-65 populations.

Schedule of effect of one percentage point increase or decrease in other post-retirement benefits


	Other Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
	2016		2015		2014		2016		2015		2014
Effect on total of service and interest cost components	$	0.9	$	0.9	$	0.7	$	(0.7)	$	(0.7)	$	(0.5)
Effect on post-retirement benefit obligation	$	11.5	$	9.4	$	10.0	$	(8.3)	$	(7.4)	$	(7.8)

Schedule of amounts recognized on balance sheet and accumulated comprehensive income

Non-qualified pension plan obligations recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive loss at December 31, 2016 and 2015 are as follows (in millions):


	Non-qualified
	Pension Benefits
	December 31,
	2016		2015
Current liabilities	$	(1.0)	$	(1.2)
Non-current liabilities, net		(3.3)		(3.1)
Total	$	(4.3)	$	(4.3)

Net loss, net of taxes	$	(0.8)	$	(0.8)
Prior service credit, net of taxes		0.4		0.6
Total	$	(0.4)	$	(0.2)

Schedule of estimated benefit payments

The estimated future benefit payments for the next ten years are as follows (in millions):


	Qualified
	Pension		Non-qualified		Post-retirement
Year	Benefits		Pension Benefits		Benefits (1)
2017	$	12.4	$	1.0	$	2.7
2018		12.8		1.1		2.8
2019		13.1		0.2		2.9
2020		13.4		0.5		3.0
2021		13.7		—		3.1
2022-2026		73.0		2.7		16.7
Total	$	138.4	$	5.5	$	31.2

(1)

Net of plan participants’ contributions and Medicare D subsidies.

Schedule of information regarding the entity's participation in the multi-employer pension plans


			Pension
			Protection Act
			Zone as of		FIP/RP Status		Contributions of Matson
	EIN/Pension		December 31,		Pending/	5%	($ in millions)						Surcharge	Expiration
Pension Funds	Plan Number	Notes	2016	2015	Implemented	Contributor	2016		2015		2014		Imposed	Date (5)
Hawaii Terminals Multiemployer Pension Plan	20-0389370-001		Yellow	Yellow	Implemented	Yes	$	5.3	$	4.9	$	5.1	No	6/30/2019
Hawaii Stevedoring Multiemployer Retirement Plan	99-0314293-001		Yellow	Yellow	Implemented	Yes		3.5		2.8		2.9	No	6/30/2019
Master, Mates and Pilots Pension Plan	13-6372630-001		Green	Green	No	Yes		3.1		2.2		1.9	No	6/15/2023,
														6/15/2027
Masters, Mates and Pilots Adjustable Pension Plan	37-1719247-001		(1)	(1)	No	Yes		1.8		1.7		1.0	No	6/15/2023,
														6/15/2027
MEBA Pension Trust - Defined Benefit Plan	51-6029896-001	(2)	Green	Red	Implemented	Yes		4.1		3.2		2.1	No	8/15/2018,
														6/15/2022
OCU Trust Pension Plan	26-1574440-001		Green	Green	No	No		0.2		0.1		0.1	No	6/30/2023
MFOW Supplementary Pension Plan	94-6201677-001		Green	Green	No	Yes		—		—		—	No	6/30/2017
SIU Pacific District Pension Plan	94-6061923-001		Green	Green	No	No		0.6		—		—	No	6/30/2017
Alaska Teamster - Employer Pension Plan	92-6003463-024	(3)	Red	Red	Implemented	Yes		2.6		1.5		—	Yes	6/30/2018,
														6/30/2019,
														6/30/2020
All Alaska Longshore Pension Plan	91-6085352-001	(3)	Green	Green	No	Yes		0.1		0.5		—	No	6/30/2020
Western Conference of Teamsters Pension Plan	91-6145047-001	(3)	Green	Green	No	No		1.3		0.8		—	No	3/31/2018
Western Conference of Teamsters Supplemental Benefit Trust	95-3746907-001	(3)	Green	Green	No	No		—		—		—	No	3/31/2018
OPEIU Local 153 Pension Plan	13-2864289-001	(3)	Red	Red	Implemented	No		0.1		0.1		—	No	11/09/2017
Seafarers Pension Trust	13-6100329-001	(3) (4)	Green	Green	No	No		—		—		—	No	6/30/2017
Total							$	22.7	$	17.8	$	13.1

(1)

The Plan is not subject to the PPA funding requirements under IRS Section 432 as the Plan was not in effect on July 16, 2006.

(2)

(3)

Matson's contributions to these plans commenced after the Horizon Acquisition on May 29, 2015.

(4)

(5)

Represents the expiration date of the collective bargaining agreement.

Schedule of information related to the Company's health and benefit plans


				Contributions of Matson
			5%	($ in millions)						Surcharge	Expiration
Health and Benefit Plans	EIN Number	Notes	Contributor	2016		2015		2014		Imposed	Date (3)
Stevedore Industry Committee Welfare Benefit Plan	99-0313967-501		Yes	$	4.9	$	3.8	$	3.1	No	6/30/2019
OCU Health and Welfare Trust	26-1574455-501		No		0.3		0.2		0.2	No	6/30/2023
SUP Welfare Plan, Inc.	94-1243666-502		Yes		3.1		2.9		2.7	No	6/30/2017
MEBA Medical and Benefits Plan	13-5590515-501		Yes		2.9		2.2		1.8	No	8/15/2018,
											6/15/2022
MFOW Welfare Fund	94-1254186-501		Yes		1.4		1.3		1.2	No	6/30/2017
ARA Pension and Welfare Plan	13-6083690-501		Yes		0.7		0.5		0.5	No	8/15/2021
Masters, Mates and Pilots Health and Benefit Plan	13-6696938-501		Yes		2.9		2.3		1.6	No	6/15/2023,
											6/15/2027
Seafarers Health and Benefits Plan	13-5557534-501	(1) (2)	Yes		3.1		1.8		—	No	6/30/2017
Alaska Teamster - Employer Welfare Trust	91-6034674-501	(2)	Yes		2.0		1.2		—	No	6/30/2018,
											6/30/2019,
											6/30/2020
All Alaska Longshore Health and Welfare Trust Fund	91-6070467-501	(2)	Yes		0.2		1.3		—	No	6/30/2020
Western Teamsters Welfare Trust	91-6033601-501	(2)	No		1.0		0.6		—	No	3/31/2018
Total				$	22.5	$	18.1	$	11.1

(1)

Contributions made to the Seafarers Health and Benefits Plan are re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee.

(2)

Matson's contributions to these plans commenced after the Horizon Acquisition on May 29, 2015.

(3)

Represents the expiration date of the collective bargaining agreement.

MULTI-EMPLOYER WITHDRAWAL LIABILITY (Tables)

12 Months Ended

Dec. 31, 2016

MULTI-EMPLOYER WITHDRAWAL LIABILITY

Schedule of future estimated annual payments to the multi-employer pension plan

Future estimated annual payments to the multi-employer pension plan as of December 31, 2016 were as follows (in millions):


Year	Total
2017	$	4.1
2018		4.1
2019		4.1
2020		4.1
2021		4.1
Thereafter		76.3
Total future payments		96.8
Less: amount representing interest		(32.6)
Present value of remaining withdrawal liability		64.2
Current portion of withdrawal liability		(4.1)
Long-term portion of withdrawal liability	$	60.1

SHARE-BASED AWARDS (Tables)

12 Months Ended

Dec. 31, 2016

SHARE-BASED COMPENSATION

Stock Option Activity

Activity in the Company’s stock option plans for the year ended December 31, 2016, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


					Weighted		Weighted
			1998		Average		Average	Aggregate
	2007	1998	Director	Total	Exercise		Contractual	Intrinsic
	Plan	Plan	Plan	Shares	Price		Life	Value
Outstanding at December 31, 2015	403	42	16	461	$	21.90
Granted	—	—	—	—
Exercised	75	37	16	128	$	22.53
Forfeited and expired	9	—	—	9	$	20.84
Outstanding at December 31, 2016	319	5	0	324	$	21.67	3.3	$	4,437
Exercisable at December 31, 2016	319	5	—	324	$	21.67	3.3	$	4,437

Non-Vested Restricted Stock Unit Activity

The following table summarizes non-vested restricted stock unit activity through December 31, 2016, (in thousands, except weighted average grant-date fair value amounts):


	2007 Plan	2016 Plan	Total	Weighted
	Restricted	Restricted	Restricted	Average Grant-
	Stock Units	Stock Units	Stock Units	Date Fair Value
Outstanding at December 31, 2015	678	—	678	$	29.21
Granted	444	19	463		34.70
Vested	(416)	—	(416)		27.85
Canceled	(5)	—	(5)		34.36
Outstanding at December 31, 2016	701	19	720	$	33.35

Summary of Compensation expense and Other Measures Related to Share-Based awards

A summary of compensation expense related to share-based awards for each of the three years in the period ended December 31, 2016, is as follows (in millions):


	Years Ended December 31,
Share-based expense (net of estimated forfeitures):	2016		2015		2014
Non-vested stock and restricted stock units	$	9.8	$	12.2	$	8.4
Stock options		—		—		0.3
Total share-based expense		9.8		12.2		8.7
Total recognized tax benefit		(3.8)		(4.8)		(3.4)
Total Share-based expense (net of tax)	$	6.0	$	7.4	$	5.3

Cash received by Matson upon option exercise	$	1.2	$	2.2	$	5.8
Intrinsic value of options exercised	$	2.0	$	9.2	$	3.4
Tax benefit realized upon option exercise	$	5.9	$	3.4	$	1.9
Fair value of stock vested	$	15.8	$	8.6	$	5.0

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2016

COMMITMENTS AND CONTINGENCIES

Schedule of Commitments and Contractual Obligations

Commitments, including contractual obligations, excluding lease commitments (see Note 9), and pension and post-retirement plan commitments (see Note 11), include the following as of December 31, 2016 (in millions):


Commitments and Contractual Obligations	Total
Standby letters of credit (1)	$	11.2
Bonds (2)	$	32.7
Benefit plan withdrawal obligations (3)	$	220.8
Construction of vessels obligations (4)	$	803.9
Other capital obligations (5)	$	26.9

(1)

Standby letters of credit are required for the Company’s uninsured workers’ compensation and other insurance programs, and other needs.

(2)

Bonds are required for U.S. Customs and other related matters.

(3)

Benefit plan withdrawal obligations represent the withdrawal liabilities as of the most recent valuation dates for multiemployer pension plans, in which the Company is a participant. Management has no present intention of withdrawing from, and does not anticipate the termination of, any of the aforementioned plans.

(4)

Construction of vessels obligations represents contractual obligations entered into for the construction of four new vessels.

(5)

Other capital expenditure obligations include: (i) contractual capital project obligations (excluding construction of vessels obligations); and (ii) other dry-docking related obligations.

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14453-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14394-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14557-108349

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14615-108349

+ Details

REPORTABLE SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2016

REPORTABLE SEGMENTS

Schedule of reportable segment information

Reportable segment information for 2016, 2015, and 2014, are as follows (in millions):


	Years Ended December 31,
	2016		2015		2014
Operating Revenue:
Ocean Transportation (1)	$	1,541.1	$	1,498.0	$	1,278.4
Logistics (2)		400.5		386.9		435.8
Total Operating Revenue	$	1,941.6	$	1,884.9	$	1,714.2
Operating Income:
Ocean Transportation (1)(3)	$	141.3	$	187.8	$	131.1
Logistics (2)		11.9		8.5		8.9
Total Operating Income		153.2		196.3		140.0
Interest expense, net		(24.1)		(18.5)		(17.3)
Income before Income Taxes		129.1		177.8		122.7
Income taxes		(48.6)		(74.8)		(51.9)
Net Income	$	80.5	$	103.0	$	70.8

(1)

2016 and 2015 Ocean Transportation segment information include the operations of Horizon acquired as of May 29, 2015.

(2)

2016 Logistics segment information include the operations of Span Alaska acquired as of August 4, 2016.

(3)


	As of December 31,
	2016		2015		2014
Identifiable Assets:
Ocean Transportation (1)	$	1,722.2	$	1,601.0	$	1,313.9
Logistics		293.3		68.8		87.9
Total Assets	$	2,015.5	$	1,669.8	$	1,401.8

Capital Expenditures:
Ocean Transportation	$	179.1	$	67.5	$	27.8
Logistics		0.3		0.3		0.1
Total Capital Expenditures	$	179.4	$	67.8	$	27.9

Depreciation and Amortization:
Ocean Transportation	$	92.6	$	81.4	$	66.6
Logistics		4.5		2.0		3.1
		97.1		83.4		69.7
Deferred dry-docking amortization - Ocean Transportation		38.9		23.1		21.1
Total Depreciation and Amortization	$	136.0	$	106.5	$	90.8

QUARTERLY INFORMATION (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

QUARTERLY INFORMATION (Unaudited)

Schedule of quarterly financial information

Segment results by quarter for 2016 and 2015 are as follows (in millions, except per-share amounts):


	Quarters in the Year Ended December 31, 2016
	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	366.1	$	370.9	$	398.0	$	406.1
Logistics (1)		88.1		96.8		102.4		113.2
Total Operating Revenue	$	454.2	$	467.7	$	500.4	$	519.3
Operating Income:
Ocean Transportation	$	33.0	$	33.9	$	42.7	$	31.7
Logistics (1)		1.6		2.2		3.5		4.6
Total Operating Income		34.6		36.1		46.2		36.3
Interest Expense		(4.9)		(6.5)		(6.0)		(6.7)
Income before Income Taxes		29.7		29.6		40.2		29.6
Income Tax Expense		(11.6)		(11.6)		(15.2)		(10.2)
Net Income	$	18.1	$	18.0	$	25.0	$	19.4

Basic Earnings Per Share:	$	0.42	$	0.42	$	0.58	$	0.45
Diluted Earnings Per Share:	$	0.41	$	0.42	$	0.58	$	0.44


	Quarters in the Year Ended December 31, 2015
	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation (2)	$	305.5	$	346.7	$	444.8	$	401.0
Logistics		92.7		100.9		99.5		93.8
Total Operating Revenue	$	398.2	$	447.6	$	544.3	$	494.8
Operating Income:
Ocean Transportation (2)	$	43.9	$	31.4	$	68.9	$	43.6
Logistics		1.0		2.3		2.9		2.3
Total Operating Income		44.9		33.7		71.8		45.9
Interest Expense		(4.3)		(4.6)		(4.7)		(4.9)
Income before Income Taxes		40.6		29.1		67.1		41.0
Income Tax Expense		(15.6)		(19.2)		(25.6)		(14.4)
Net Income	$	25.0	$	9.9	$	41.5	$	26.6

Basic Earnings Per Share:	$	0.58	$	0.23	$	0.95	$	0.61
Diluted Earnings Per Share:	$	0.57	$	0.23	$	0.94	$	0.60

(1)

2016 segment results include the operations of Span Alaska acquired as of August 4, 2016.

(2)

2016 and 2015 segment results include the operations of Horizon acquired as of May 29, 2015.

Schedule of infrequent transactions impacting the segment results

The following infrequent transactions impacted the Company’s quarterly segment results during 2016 and 2015 (in millions):


	Quarters in the Year Ended December 31, 2016
	Q1		Q2		Q3		Q4
Span Alaska Acquisition Related Costs (1):	$	(0.1)	$	(0.1)	$	(2.6)	$	(0.2)
Molasses Settlement (2):	$	—	$	—	$	—	$	(0.7)


	Quarters in the Year Ended December 31, 2015
	Q1		Q2		Q3		Q4
Horizon Acquisition Related Costs (3):	$	—	$	(12.4)	$	(5.1)	$	(1.5)
Molasses Settlement (2):	$	—	$	(11.4)	$	—	$	(1.9)

(1)

One-time costs related to the Span Alaska Acquisition included in selling, general and administrative costs (see Note 3).

(2)

One-time costs related to the Horizon Acquisition included in selling, general and administrative costs.

DESCRIPTION OF THE BUSINESS (Details)	12 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Dec. 31, 2016 segment facility item	Aug. 04, 2016
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2
Number of owned vessels in fleet \| item	22
Number of chartered vessels \| item	5
Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35.00%
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast \| facility	6
MatNav \| Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast \| facility	3
Span Alaska
BUSINESS COMBINATION
Percentage interest acquired		100.00%

SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fiscal Year
Fiscal Period Duration	371 days	364 days	364 days
Reclassification amount		$ 21.5
Cash and Cash Equivalents
Outstanding checks in excess of funds on deposits	$ 21.3	13.8
Capital Construction Fund - cash on deposit	31.2
Accounts Receivable
Eligible accounts receivable assigned to CCF	174.7	176.6
Allowance for doubtful accounts
Balance at Beginning of year	6.6	5.0	$ 4.1
Expense (Recovery)	(0.3)	2.0	1.8
Write-offs and Other	(2.1)	(0.4)	(0.9)
Balance at End of Year	4.2	6.6	$ 5.0
Prepaid and Other Assets:
Income tax receivable	23.4	15.1
Insurance	17.6	18.3
Prepaid fuel	11.5	9.3
Other	18.3	16.9
Total	70.8	59.6
Quoted Prices in Active Markets (Level 1)
Cash and Cash Equivalents
Cash and cash equivalents	13.9	25.5
Significant Observable Inputs (Level 2)
Cash and Cash Equivalents
Accounts receivable, net	189.5	192.8
Capital Construction Fund - cash on deposit	31.2
Variable rate debt	55.0
Fixed rate debt	685.2	443.8
Carrying value
Cash and Cash Equivalents
Cash and cash equivalents	13.9	25.5
Accounts receivable, net	189.5	192.8
Capital Construction Fund - cash on deposit	31.2
Variable rate debt	55.0
Fixed rate debt	683.9	429.9
Fair Value Measurement
Cash and Cash Equivalents
Cash and cash equivalents	13.9	25.5
Accounts receivable, net	189.5	192.8
Capital Construction Fund - cash on deposit	31.2
Variable rate debt	55.0
Fixed rate debt	$ 685.2	$ 443.8

SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Impairment of Investment
Impairment charges related to investment in Terminal joint venture \| $	$ 0.0	$ 0.0	$ 0.0
Long-lived Assets
Estimated fair value of inactive vessels \| $		0.0
Capitalized Interest
Interest Costs Capitalized \| $	$ 2.1	0.4	0.4
Dry-docking
Number of dry-docking inspections to be made within a specified period \| item	2
Period within which number of specified dry-docking inspections to be made	5 years
Number of non-U.S. flag vessels in operations \| item	6
Number of non-U.S. flag vessels owned \| item	1
Number of non-U.S. flag vessels under bareboat charter \| item	1
Dry-dock inspections interval, minimum	2 years
Dry-dock inspections interval, maximum	5 years
Vessels
Depreciation
Useful life	40 years
Machinery And Equipment
Depreciation
Useful life	20 years
Terminal Facilities
Depreciation
Useful life	35 years
Operating costs
Long-lived Assets
Impairment charges related to long-lived assets \| $	$ 0.0	$ 2.1	$ 0.0

SIGNIFICANT ACCOUNTING POLICIES - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Intangible assets
Impairment charges related to finite-lived intangible assets	$ 0.0	$ 0.0	$ 0.0
Impairment charges related to indefinite-lived intangible assets and goodwill for impairment	0.0	0.0	$ 0.0
Accrued and other liabilities
Payroll and vacation liabilities	23.3	23.1
Uninsured claims and related liabilities - short term	18.4	27.1
Incentives and other benefits	9.6	20.7
Molasses tank farm removal accrual	3.1	7.4
Restructuring and severance accruals related to Horizon		5.0
Interest on debt	5.8	3.9
Multi-employer withdrawal liability - short-term (see Note 12)	4.1	4.1
Other liabilities	12.6	19.4
Total	$ 76.9	$ 110.7
Customer Relationships. \| Minimum
Intangible assets
Expected useful lives	3 years
Customer Relationships. \| Maximum
Intangible assets
Expected useful lives	21 years

SIGNIFICANT ACCOUNTING POLICIES - COMPREHENSIVE INCOME (LOSS) AND SUBSEQUENT EVENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	$ 450.6	$ 363.8	$ 338.2
Net gain (loss) in prior service cost	0.7	5.1	(31.4)
Amortization of prior service cost	(1.3)	(1.3)	(1.3)
Amortization of net loss (gain)	1.2	1.8	2.5
Foreign currency translation and other adjustments	0.1	0.7	0.4
Other	0.1	0.1
Balance at the end of the period	471.5	450.6	363.8
Comprehensive Income (Loss):
Tax benefit (expense) on other comprehensive income (loss)	0.7	(5.0)	19.4
Pension Benefits
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(41.7)	(45.0)
Net gain (loss) in prior service cost		3.7
Amortization of prior service cost	(1.4)	(1.3)
Amortization of net loss (gain)	1.7	0.9
Balance at the end of the period	(41.4)	(41.7)	(45.0)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(4.7)	(7.2)
Net gain (loss) in prior service cost	0.7	1.4
Amortization of prior service cost		0.1
Amortization of net loss (gain)	(0.4)	1.0
Balance at the end of the period	(4.4)	(4.7)	(7.2)
Non-Qualified Plans
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.2)	(0.5)
Net gain (loss) in prior service cost	(0.1)	0.5
Amortization of prior service cost	(0.1)	(0.1)
Amortization of net loss (gain)		(0.1)
Balance at the end of the period	(0.4)	(0.2)	(0.5)
Foreign Currency Transaction
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	1.0	0.3
Foreign currency translation and other adjustments	0.1	0.7
Balance at the end of the period	1.1	1.0	0.3
Interest Hedge
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.6)	(0.7)
Other	0.1	0.1
Balance at the end of the period	(0.5)	(0.6)	(0.7)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.7)	(0.2)
Net gain (loss) in prior service cost	0.1	(0.5)
Amortization of prior service cost	0.2
Amortization of net loss (gain)	(0.1)
Balance at the end of the period	(0.5)	(0.7)	(0.2)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(46.9)	(53.3)	(23.5)
Net gain (loss) in prior service cost	0.7	5.1
Amortization of prior service cost	(1.3)	(1.3)
Amortization of net loss (gain)	1.2	1.8
Foreign currency translation and other adjustments	0.1	0.7
Other	0.1	0.1
Balance at the end of the period	$ (46.1)	$ (46.9)	$ (53.3)

SIGNIFICANT ACCOUNTING POLICIES - BASIC AND DILUTED EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Income
Net Income, Basic									$ 80.5	$ 103.0	$ 70.8
Net Income, Diluted									$ 80.5	$ 103.0	$ 70.8
Weighted Average Common Shares
Basic (in shares)									43.1	43.5	43.0
Effect of Dilutive Securities (in shares)									0.4	0.5	0.4
Diluted (in shares)									43.5	44.0	43.4
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 0.45	$ 0.58	$ 0.42	$ 0.42	$ 0.61	$ 0.95	$ 0.23	$ 0.58	$ 1.87	$ 2.37	$ 1.65
Effect of Dilutive Securities (in dollars per shares)									(0.02)	(0.03)	(0.02)
Net income, Diluted (in dollars per share)	$ 0.44	$ 0.58	$ 0.42	$ 0.41	$ 0.60	$ 0.94	$ 0.23	$ 0.57	$ 1.85	$ 2.34	$ 1.63

BUSINESS COMBINATION - CONSIDERATION PAID (Details) - USD ($) $ in Millions			3 Months Ended							12 Months Ended
	Aug. 04, 2016	May 29, 2015	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets acquired and liabilities assumed
Multi-employer withdrawal liabilities			$ (60.1)				$ (56.2)			$ (60.1)	$ (56.2)
Goodwill			323.7				241.6			323.7	241.6	$ 27.4
Repayments of Span Alaska debt										81.9
Estimated future benefit payments
Mass withdrawal liability undiscounted payments			96.8							96.8
Customer relationships
Assets acquired and liabilities assumed
Expected useful lives	20 years
Span Alaska
Business acquisition
Percentage interest acquired	100.00%
Number of years in operation	38 years
Total cash consideration
Membership interests	$ 117.0
Total debt assumed	81.9
Total payments	198.9
Assets acquired and liabilities assumed
Cash and cash equivalents	4.4
Accounts receivable	11.1
Prepaid and other current assets	0.9
Property and equipment	8.1
Intangibles – Customer relationships	79.3
Intangibles – Trade name	27.3
Other long-term assets	0.1
Accounts payable	(3.3)
Accruals and other current liabilities	(6.4)
Capital lease obligations	(1.2)
Span Alaska's debt	(81.9)
Total identifiable assets less liabilities	38.4
Goodwill	78.6
Repayments of Span Alaska debt	81.9
Total consideration for membership interests	(117.0)
Condensed Consolidated Statements of Income and Comprehensive Income
Operating revenue										22.8
Operating Income										3.5
One-time acquisition related costs			0.2	$ 2.6	$ 0.1	$ 0.1				3.0
Span Alaska \| Trade Names
Assets acquired and liabilities assumed
Intangibles – Trade name	27.3
Span Alaska \| Customer relationships
Assets acquired and liabilities assumed
Intangibles – Customer relationships	$ 79.3
Span Alaska \| Adjustments
Assets acquired and liabilities assumed
Total identifiable assets less liabilities				$ 0.4
Horizon
Total cash consideration
Common shares		$ 29.4										29.4
Warrants		37.1
Total debt assumed		428.9
Total payments		495.4
Assets acquired and liabilities assumed
Cash and cash equivalents												0.8
Accounts receivable												31.7
Other current assets												7.2
Deferred tax assets, net												46.3
Property and equipment												170.4
Intangibles – Customer relationships												140.0
Other long-term assets												4.1
Accounts payable												(22.8)
Accruals and other current liabilities												(31.4)
Multi-employer withdrawal liabilities												(65.5)
Capital lease obligations												(1.6)
Total identifiable assets less liabilities												(188.3)
Common shares		$ (29.4)										(29.4)
Goodwill												217.7
Horizon's debt and warrants												(467.5)
Condensed Consolidated Statements of Income and Comprehensive Income
Operating revenue										277.6
Operating Income										20.0
One-time acquisition related costs							$ 1.5	$ 5.1	$ 12.4		$ 19.0
Estimated future benefit payments
Quarterly payments to ILA-PRSSA over an estimated period			$ 1.0							$ 1.0
Horizon \| As previously Reported
Total cash consideration
Common shares												29.4
Assets acquired and liabilities assumed
Cash and cash equivalents												0.8
Accounts receivable												31.7
Other current assets												7.2
Deferred tax assets, net												45.6
Property and equipment												170.4
Intangibles – Customer relationships												140.0
Other long-term assets												4.1
Accounts payable												(22.8)
Accruals and other current liabilities												(32.1)
Multi-employer withdrawal liabilities												(60.6)
Capital lease obligations												(1.6)
Total identifiable assets less liabilities												(184.8)
Common shares												(29.4)
Goodwill												214.2
Horizon's debt and warrants												(467.5)
Horizon \| Adjustments
Assets acquired and liabilities assumed
Deferred tax assets, net												0.7
Accruals and other current liabilities												0.7
Multi-employer withdrawal liabilities												(4.9)
Total identifiable assets less liabilities												(3.5)
Goodwill												$ 3.5

BUSINESS COMBINATION - PROFORMA (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Pro-forma Combined
Operating revenue	$ 1,974.2	$ 2,076.4
Net income	$ 84.9	$ 107.7
Basic Earnings Per Share (in dollars per share)	$ 1.97	$ 2.48
Diluted Earnings Per Share (in dollars per share)	$ 1.95	$ 2.45
Weighted Average Number of Shares Outstanding:
Basic	43.1	43.5
Diluted	43.5	44.0

INVESTMENT IN TERMINAL JOINT VENTURE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments in affiliates
Investment in related party Terminal Joint Venture	$ 82.4	$ 66.4
Financial information for equity method investment
Company Share of Net Income	15.8	16.5	$ 6.6
Distributions Received		14.0
Current assets	147.7	107.0
Noncurrent assets	138.5	121.2
Total assets	286.2	228.2
Current liabilities	48.9	42.0
Noncurrent liabilities	14.8	9.4
Equity	222.5	176.8
Total Liabilities and Equity	286.2	228.2
Operating revenue	740.9	621.0	586.2
Operating costs and expenses	706.5	610.2	589.7
Operating Income (loss)	34.4	10.8	(3.5)
Net Income	$ 45.1	44.9	21.2
SSAT \| Ocean Transportation
Investments in affiliates
Ownership interest accounted in the related party terminal joint venture (as a percent)	35.00%
Cost of services from transactions with unconsolidated affiliate	$ 177.8	174.1	$ 164.8
Accounts payable and accrued liabilities	$ 16.7	$ 19.5

PROPERTY AND EQUIPMENT - SUMMARY (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Cost	$ 2,151.9	$ 1,988.9
Accumulated depreciation of property and equipment	1,202.7	1,128.6
Property and equipment, net	949.2	860.3
Depreciation Expense	86.0	76.4	$ 66.8
Property and equipment subject to capital leases	6.4	6.4
Cost for construction of containerships	925.3
Capitalized interest	2.1	0.4	0.4
Net of accumulated depreciation	2.4	1.1
Amortization expenses	1.2	0.6	$ 0.3
Vessels
Property and equipment
Cost	1,416.1	1,384.8
Accumulated depreciation of property and equipment	840.7	787.4
Property and equipment, net	575.4	597.4
Containers and equipment
Property and equipment
Cost	536.9	496.0
Accumulated depreciation of property and equipment	326.7	307.8
Property and equipment, net	210.2	188.2
Terminal facilities and other property
Property and equipment
Cost	43.2	42.0
Accumulated depreciation of property and equipment	35.3	33.4
Property and equipment, net	7.9	8.6
Vessel construction in progress
Property and equipment
Cost	124.5	30.0
Property and equipment, net	124.5	30.0
Capitalized interest	2.9	0.8
Other construction in progress
Property and equipment
Cost	31.2	36.1
Property and equipment, net	$ 31.2	$ 36.1

GOODWILL AND INTANGIBLE ASSETS - GOODWILL (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Changes in the Company's goodwill
Balance at the beginning of the period	$ 241.6	$ 27.4
Balance at the end of the period	323.7	241.6
Ocean Transportation
Changes in the Company's goodwill
Balance at the beginning of the period	215.0	0.8
Balance at the end of the period	218.5	215.0
Logistics
Changes in the Company's goodwill
Balance at the beginning of the period	26.6	26.6
Balance at the end of the period	105.2	26.6
Span Alaska
Changes in the Company's goodwill
Additions	78.6
Span Alaska \| Logistics
Changes in the Company's goodwill
Additions	78.6
Horizon
Changes in the Company's goodwill
Balance at the beginning of the period		217.7
Additions	3.5	214.2
Horizon \| Ocean Transportation
Changes in the Company's goodwill
Additions	$ 3.5	$ 214.2

GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-lived Intangible Assets
Gross Amount at the beginning of the year	$ 151.4	$ 10.4
Additions		1.0
Gross Amount at the end of the year	258.0	151.4	$ 10.4
Accumulated Amortization	(21.4)	(12.3)
Net Amount	236.6	139.1
Aggregate intangible asset amortization	9.1	4.4	1.3
Estimated amortization expenses related to intangibles
2017	11.3
2018	11.2
2019	11.0
2020	11.0
2021	10.9
Thereafter	153.9
Net Amount	209.3
Horizon
Finite-lived Intangible Assets
Additions		140.0
Span Alaska
Finite-lived Intangible Assets
Additions	106.6
Estimated amortization expenses related to intangibles
Net Amount	27.3
Span Alaska \| Trade Names
Finite-lived Intangible Assets
Indefinite-Lived intangible asset acquired	27.3
Indefinite-Lived intangible asset	27.3
Customer Relationships. \| Span Alaska
Finite-lived Intangible Assets
Finite-Lived intangible assets acquired	79.3
Estimated amortization expenses related to intangibles
Net Amount	$ 209.3
Expected useful life	20 years
Ocean Transportation
Finite-lived Intangible Assets
Gross Amount at the beginning of the year	$ 140.6	0.6
Gross Amount at the end of the year	140.6	140.6	0.6
Accumulated Amortization	(11.0)	(4.2)
Net Amount	129.6	136.4
Ocean Transportation \| Horizon
Finite-lived Intangible Assets
Additions		140.0
Ocean Transportation \| Customer Relationships. \| Horizon
Finite-lived Intangible Assets
Finite-Lived intangible assets acquired		$ 140.0
Estimated amortization expenses related to intangibles
Expected useful life		21 years
Logistics
Finite-lived Intangible Assets
Gross Amount at the beginning of the year	10.8	$ 9.8
Additions		1.0
Gross Amount at the end of the year	117.4	10.8	$ 9.8
Accumulated Amortization	(10.4)	(8.1)
Net Amount	107.0	$ 2.7
Logistics \| Span Alaska
Finite-lived Intangible Assets
Additions	$ 106.6

CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	12 Months Ended
CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Maximum period to commit fund deposits for qualified purposes	25 years
Period over which deposits will be treated as non-qualified withdrawals	5 years
Cash Deposits Into CCF	$ 123.4	$ 77.9	$ 31.9
Accounts receivable, net	189.5	192.8
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	174.7	176.6
Cash \| Long-term Assets
Capital Construction Fund - cash on deposit	$ 31.2	$ 31.2

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Aug. 31, 2004	Sep. 30, 2003
Debt
Capital leases	$ 2.6	$ 3.1
Total Debt	738.9	429.9
Less current portion	(31.8)	(22.0)
Total Long-term Debt	707.1	407.9
5.79%, payable through 2020
Debt
Total Debt	$ 24.5	31.5
Interest rate (as a percent)	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 59.3	68.4
Interest rate (as a percent)	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 55.0	55.0
Interest rate (as a percent)	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 75.0
Interest rate (as a percent)	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 200.0
Interest rate (as a percent)	3.14%
4.31%, payable through 2032
Debt
Total Debt	$ 37.5	37.5
Interest rate (as a percent)	4.31%
4.35%, payable through 2044
Debt
Total Debt	$ 100.0	100.0
Interest rate (as a percent)	4.35%
3.92%, payable through 2045
Debt
Total Debt	$ 75.0	75.0
Interest rate (as a percent)	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 26.4	28.6
Interest rate (as a percent)	5.34%			5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 28.6	$ 30.8
Interest rate (as a percent)	5.27%		5.27%
Revolving Credit Facility
Debt
Total Debt	$ 55.0

DEBT - DESCRIPTION (Details) $ in Thousands				1 Months Ended				3 Months Ended	12 Months Ended
DEBT - DESCRIPTION (Details) $ in Thousands	Dec. 21, 2016 USD ($)	Sep. 14, 2016 USD ($)	Jul. 30, 2015 USD ($)	Jul. 31, 2015 USD ($)	Jan. 31, 2014 USD ($)	Aug. 31, 2004 USD ($)	Sep. 30, 2003 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2017	Dec. 31, 2016 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2015 USD ($)
Debt
Letters of credit										$ 11,200
Debt maturities
2017										31,800
2018										30,700
2019										42,100
2020										48,400
2021										54,200
Thereafter										531,700
Total Debt										$ 738,900		$ 429,900
Minimum
Debt
Ratio of consolidated EBITDA to interest expense										3.50
Maximum
Debt
Debt covenant, required ratio of debt to consolidated EBITDA										3.25
Revolving Credit Facility
Debt
Long-term Line of Credit										$ 55,000		0
Debt instrument term											5 years
Maximum borrowing capacity under revolving credit facility			$ 400,000								$ 375,000
Uncommitted option to increase credit facility			$ 150,000								75,000
Unused portion of credit facility										$ 333,800
Interest rate applicable to any borrowings										1.97%
Debt maturities
Total Debt										$ 55,000
Revolving Credit Facility \| Forecast
Debt
Debt covenant, required principal amount of priority debt as a percentage of consolidated tangible assets									17.50%
Revolving Credit Facility \| Extension of maturity
Debt
Debt instrument term			5 years
Revolving Credit Facility \| Minimum
Debt
Credit facility commitment fee percentage										0.15%
Revolving Credit Facility \| Minimum \| London Interbank Offered Rate (LIBOR)
Debt
Variable rate margin										1.00%
Revolving Credit Facility \| Minimum \| Base rate
Debt
Variable rate margin										0.00%
Revolving Credit Facility \| Maximum
Debt
Debt covenant, required principal amount of priority debt as a percentage of consolidated tangible assets										20.00%
Debt covenant, required principal amount of priority debt (excluding Title XI) as a percentage of consolidated tangible assets										10.00%
Credit facility commitment fee percentage										0.30%
Revolving Credit Facility \| Maximum \| London Interbank Offered Rate (LIBOR)
Debt
Variable rate margin										1.75%
Revolving Credit Facility \| Maximum \| Base rate
Debt
Variable rate margin										0.75%
Standby and commercial letters of credit
Debt
Maximum borrowing capacity under revolving credit facility											100,000
Letters of credit										$ 11,200
Standby and commercial letters of credit \| Minimum
Debt
Line of credit fees percentage										1.00%
Standby and commercial letters of credit \| Maximum
Debt
Line of credit fees percentage										1.75%
Swing Line Loans
Debt
Maximum borrowing capacity under revolving credit facility											$ 50,000
5.34%, payable through 2028
Debt
Debt issued							$ 55,000
Interest rate (as a percent)							5.34%			5.34%
Semi-annual payments							$ 1,100
Debt maturities
Total Debt										$ 26,400		28,600
5.79%, payable through 2020
Debt
Interest rate (as a percent)										5.79%
Annual principal payments										$ 3,500
Debt maturities
Total Debt										$ 24,500		31,500
5.27%, payable through 2029
Debt
Debt issued						$ 55,000
Interest rate (as a percent)						5.27%				5.27%
Semi-annual payments						$ 1,100
Debt maturities
Total Debt										$ 28,600		30,800
Senior Unsecured Long Term Debt
Debt
Debt issued					$ 100,000
Debt instrument term					30 years
Interest rate (as a percent)					4.35%
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2021
Debt
Annual principal payments					$ 5,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2022 and 2023
Debt
Annual principal payments					7,500
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2024 to 2027
Debt
Annual principal payments					10,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2028
Debt
Annual principal payments					8,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2029 and thereafter until 2044
Debt
Annual principal payments					$ 2,000
4.35%, payable through 2044
Debt
Interest rate (as a percent)										4.35%
Debt maturities
Total Debt										$ 100,000		$ 100,000
Unsecured debt
Debt
Debt issued								$ 170,000
Unsecured debt \| Debt Instrument Redemption 2015 through 2016
Debt
Semi-annual payments								4,600
Unsecured debt \| Debt Instrument Redemption 2017 through mid-year 2023
Debt
Semi-annual payments								8,400
Unsecured debt \| Debt Instrument Redemption Mid-year 2023 through mid-year 2027
Debt
Semi-annual payments								3,800
Unsecured debt \| Debt Instrument Redemption After mid-year 2027
Debt
Semi-annual payments								1,200
Unsecured debt, tranche maturing in 2023
Debt
Debt issued								$ 77,500
Interest rate (as a percent)								3.66%
Unsecured debt, tranche maturing in 2027
Debt
Debt issued								$ 55,000
Interest rate (as a percent)								4.16%
Unsecured debt, tranche maturing in 2032
Debt
Debt issued								$ 37,500
Interest rate (as a percent)								4.31%
Notes 30 years
Debt
Debt issued				$ 75,000
Debt instrument term				30 years
Interest rate (as a percent)				3.92%
Notes 30 years \| Debt Instrument Redemption After 2026
Debt
Annual principal payments				$ 1,500
Notes 30 years \| Debt Instrument Redemption 2017 through 2019
Debt
Annual principal payments				1,800
Notes 30 years \| Minimum \| Debt Instrument Redemption 2020 through 2026
Debt
Annual principal payments				1,300
Notes 30 years \| Maximum \| Debt Instrument Redemption 2020 through 2026
Debt
Annual principal payments				$ 8,000
Senior Unsecured Series A Notes
Debt
Debt issued	$ 75,000
Debt instrument term	11 years
Interest rate (as a percent)	3.37%
Senior Unsecured Series A Notes \| Debt Instrument Redemption 2021
Debt
Semi-annual payments	$ 5,800
Senior Unsecured Series A Notes \| Debt Instrument Redemption 2022 through 2027
Debt
Semi-annual payments	$ 11,500
The Senior Unsecured Notes (The "Series D Notes")
Debt
Debt issued		$ 200,000
Debt instrument term		15 years
Interest rate (as a percent)		3.14%
Maturities of Long-term Debt
Semi-annual principal payments in year 2019		$ 6,000
Semi-annual principal payments in 2020 to 2023		9,200
Semi-annual principal payments in 2024 to 2031		$ 7,150

LEASES (Details) - USD ($) $ in Millions	12 Months Ended
LEASES (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Leases
Rent expenses for short-term and cancelable equipment	$ 51.0	$ 39.9	$ 27.6
Future minimum payments under operating leases
2017	45.5
2018	37.3
2019	30.2
2020	24.9
2021	13.8
Thereafter	31.2
Total minimum lease payments	182.9
Costs And Expenses
Leases
Rent expense	$ 68.6	$ 65.6	$ 58.3
Minimum
Leases
Term of existing operating leases	1 year
Maximum
Leases
Term of existing operating leases	50 years

INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal									$ 10.0	$ 22.6	$ 45.5
State									(1.3)	2.9	3.7
Total									8.7	25.5	49.2
Deferred:									39.9	49.3	2.7
Total income taxes expense	$ 10.2	$ 15.2	$ 11.6	$ 11.6	$ 14.4	$ 25.6	$ 19.2	$ 15.6	$ 48.6	$ 74.8	$ 51.9
Difference of Income tax expense from amounts computed by applying the statutory federal rate to income from continuing operations before income taxes
Computed federal income tax expense (as a percent)									35.00%	35.00%	35.00%
State income tax (as a percent)									1.80%	2.50%	2.20%
Valuation allowance (as a percent)									0.30%	1.10%	3.30%
Foreign taxes (as a percent)									0.40%	0.60%	0.40%
Deferred tax adjustment (as a percent)									0.10%	1.10%	(0.90%)
Unrecognized tax benefit (as a percent)									(1.00%)	0.40%	(0.40%)
Other-net (as a percent)									1.00%	1.40%	2.70%
Effective income tax rate , Percent, Total									37.60%	42.10%	42.30%
Valuation allowance related to foreign subsidiary losses									$ 0.4	$ 1.8	$ 4.1
Deferred tax assets:
Benefit plans	78.1				79.1				78.1	79.1
Federal net operating losses	52.1				68.0				52.1	68.0
Insurance reserves	9.9				15.4				9.9	15.4
State net operating losses	7.9				7.8				7.9	7.8
Foreign losses	4.9				5.7				4.9	5.7
Alternative minimum tax credits	31.0				3.6				31.0	3.6
Allowance for doubtful accounts	1.3				2.4				1.3	2.4
Reserves	2.4								2.4
Other	3.5				1.9				3.5	1.9
Total deferred tax assets	191.1				183.9				191.1	183.9
Valuation allowance	(11.9)				(12.6)				(11.9)	(12.6)
Total Deferred tax assets, net of valuation allowance	179.2				171.3				179.2	171.3
Deferred tax liabilities:
Basis differences for property and equipment	339.0				300.8				339.0	300.8
Capital Construction Fund	115.8				95.6				115.8	95.6
Intangibles	53.8				53.0				53.8	53.0
Deferred revenue	9.5				11.8				9.5	11.8
Joint ventures and other investments	9.9				10.6				9.9	10.6
Reserves - Liabilities					10.0					10.0
Total deferred tax liabilities	528.0				481.8				528.0	481.8
Deferred tax liability, net , Total	$ 348.8				$ 310.5				$ 348.8	$ 310.5

INCOME TAXES - OPERATING LOSS AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Operating Loss and Tax Credit Carryforwards
Alternative minimum tax credit carryforwards	$ 31.0	$ 3.6
Valuation allowances	11.9	12.6
U.S. Federal Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	190.0	194.2
State Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	192.8	192.4
Foreign Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	$ 17.6	$ 20.2

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net tax benefits from share-based transactions	$ 3.8	$ 4.8	$ 3.4
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Balance at beginning of the period	22.1	6.7	7.2
Changes in tax positions of prior years, net		1.5	0.5
Changes in tax positions of prior years, net	(1.1)
Additions from unrecognized tax benefits acquired		14.4
Reductions for lapse of statute of limitations	(0.6)	(0.5)	(1.0)
Balance at the end	20.4	22.1	6.7
Unrecognized tax benefits that, if recognized, would impact the effective rate	4.3
Interest accrued related to unrecognized tax benefits	0.4	0.4
Stock options
Net tax benefits from share-based transactions	$ 2.2	$ 2.6	$ 0.8

PENSION AND POST-RETIREMENT PLANS - ASSET ALLOCATION (Details) - plan	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee benefit plans
Number of single-employer defined benefit pension funded plans	2
Pensions
Employee benefit plans
Target allocation (as a percent)	100.00%
Asset allocations (as a percent)	100.00%	100.00%
One year returns (losses) on plan assets (as a percent)	8.30%
Three year returns (losses) on plan assets (as a percent)	4.00%
Five year returns (losses) on plan assets (as a percent)	9.40%
Long-term average return on plan assets since inception (as a percent)	8.30%
Pensions \| Domestic equity securities
Employee benefit plans
Target allocation (as a percent)	53.00%
Asset allocations (as a percent)	62.00%	62.00%
Pensions \| International equity securities
Employee benefit plans
Target allocation (as a percent)	15.00%
Asset allocations (as a percent)	13.00%	13.00%
Pensions \| Debt securities
Employee benefit plans
Target allocation (as a percent)	22.00%
Asset allocations (as a percent)	17.00%	18.00%
Pensions \| Real estate
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	6.00%	6.00%
Pensions \| Other and cash
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	2.00%	1.00%

PENSION AND POST-RETIREMENT PLANS - FAIR VALUE (Details) - Pensions - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pension and Post-retirement Plans
Total	$ 178.8	$ 168.9	$ 178.9
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total	0.1	0.2	$ 0.3
Fair Value Measurement
Pension and Post-retirement Plans
Total	178.8	168.9
Fair Value Measurement \| Cash
Pension and Post-retirement Plans
Total	7.8	6.9
Fair Value Measurement \| U.S. large-cap
Pension and Post-retirement Plans
Total	67.1	64.5
Fair Value Measurement \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	38.9	34.7
Fair Value Measurement \| International large-cap
Pension and Post-retirement Plans
Total	16.9	16.5
Fair Value Measurement \| International small-cap
Pension and Post-retirement Plans
Total	6.9	6.1
Fair Value Measurement \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.9	5.6
Fair Value Measurement \| Municipal bonds
Pension and Post-retirement Plans
Total	9.3	5.3
Fair Value Measurement \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	5.3	2.4
Fair Value Measurement \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	6.3	6.0
Fair Value Measurement \| Emerging markets fixed income
Pension and Post-retirement Plans
Total	0.5	10.4
Fair Value Measurement \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	10.8	10.3
Fair Value Measurement \| Private equity partnership interests
Pension and Post-retirement Plans
Total	0.1	0.2
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Pension and Post-retirement Plans
Total	71.6	94.6
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| Cash
Pension and Post-retirement Plans
Total	7.8	6.9
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. large-cap
Pension and Post-retirement Plans
Total	31.6	48.6
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	31.7	28.7
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| Emerging markets fixed income
Pension and Post-retirement Plans
Total	0.5	10.4
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Pension and Post-retirement Plans
Total	96.3	63.8
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. large-cap
Pension and Post-retirement Plans
Total	35.5	15.9
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	7.2	6.0
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International large-cap
Pension and Post-retirement Plans
Total	16.9	16.5
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International small-cap
Pension and Post-retirement Plans
Total	6.9	6.1
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.9	5.6
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Municipal bonds
Pension and Post-retirement Plans
Total	9.3	5.3
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	5.3	2.4
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	6.3	6.0
Fair Value Measurement \| Significant Unobservable Inputs (Level 3)
Pension and Post-retirement Plans
Total	10.9	10.5
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	10.8	10.3
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total	$ 0.1	$ 0.2

PENSION AND POST-RETIREMENT PLANS - RETURN ON PLAN ASSETS (Details) - Pensions - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Changes in plan assets:
Balance at the beginning of the period	$ 168.9	$ 178.9
Actual return (loss) on plan assets:
Balance at the end of the period	178.8	168.9
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Changes in plan assets:
Balance at the beginning of the period	0.2	0.3
Actual return (loss) on plan assets:
Assets held at the reporting date	(0.1)	(0.1)
Assets sold during the period	0.1
Purchases, sales and settlements, net	(0.1)
Balance at the end of the period	0.1	0.2
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3)
Changes in plan assets:
Balance at the beginning of the period	10.5	9.6
Actual return (loss) on plan assets:
Assets held at the reporting date	0.5	1.0
Assets sold during the period	0.6	0.4
Purchases, sales and settlements, net	(0.7)	(0.5)
Balance at the end of the period	10.9	10.5
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Changes in plan assets:
Balance at the beginning of the period	10.3	9.3
Actual return (loss) on plan assets:
Assets held at the reporting date	0.6	1.1
Assets sold during the period	0.5	0.4
Purchases, sales and settlements, net	(0.6)	(0.5)
Balance at the end of the period	$ 10.8	$ 10.3

PENSION AND POST-RETIREMENT PLANS - STATUS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pensions
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 220.2	$ 237.4
Service cost	3.9	3.3	$ 3.3
Interest cost	9.7	9.5	9.4
Actuarial loss (gain)	4.2	(17.9)
Benefits paid, net of subsidies received	(11.1)	(10.9)
Expenses paid	(1.5)	(1.2)
Benefit obligation at end of year	225.4	220.2	237.4
Changes in plan assets:
Balance at the beginning of the period	168.9	178.9
Actual return on plan assets	15.0	(2.6)
Employer contribution	7.5	4.7	6.5
Benefits paid, net of subsidies received	(11.1)	(10.9)
Expenses paid	(1.5)	(1.2)
Balance at the end of the period	178.8	168.9	178.9
Funded Status and Recognized Liability	(46.6)	(51.3)
Other Post-retirement Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	60.5	62.6
Service cost	1.5	1.5	1.1
Interest cost	2.7	2.5	2.6
Plan participants' contributions	1.0	0.9
Actuarial loss (gain)	1.9	(3.1)
Benefits paid, net of subsidies received	(4.0)	(3.9)
Benefit obligation at end of year	63.6	60.5	$ 62.6
Changes in plan assets:
Plan participants' contributions	1.0	0.9
Employer contribution	3.0	3.0
Benefits paid, net of subsidies received	(4.0)	(3.9)
Funded Status and Recognized Liability	$ (63.6)	$ (60.5)

PENSION AND POST-RETIREMENT PLANS - AMOUNTS INCLUDED IN FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee benefit plans
Non-current liabilities, net	$ (108.5)	$ (109.3)
Pensions
Employee benefit plans
Non-current assets	1.0
Non-current liabilities, net	(47.6)	(51.3)
Total	(46.6)	(51.3)
Net loss, net of taxes	(49.1)	(50.8)
Prior service credit (net of taxes)	7.7	9.1
Total	(41.4)	(41.7)
Benefit obligation	225.4	220.2	$ 237.4
Fair value of plan assets at end of year	178.8	168.9	178.9
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017	1.7
Other Post-retirement Benefits
Employee benefit plans
Current liabilities	(2.7)	(2.5)
Non-current liabilities, net	(60.9)	(58.0)
Total	(63.6)	(60.5)
Net loss, net of taxes	(4.4)	(4.7)
Total	(4.4)	(4.7)
Benefit obligation	63.6	60.5	$ 62.6
Nonqualified Pensions Benefits
Employee benefit plans
Current liabilities	(1.0)	(1.2)
Non-current liabilities, net	(3.3)	(3.1)
Total	(4.3)	(4.3)
Net loss, net of taxes	(0.8)	(0.8)
Prior service credit (net of taxes)	0.4	0.6
Total	(0.4)	(0.2)
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017	0.1
Post Retirement
Employee benefit plans
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017	$ 0.9
Amortization period of unrecognized gains and losses	5 years
Qualified Pension Plans
Employee benefit plans
Benefit obligation	$ 223.2	218.0
Accumulated benefit obligation	222.9	217.7
Fair value of plan assets at end of year	$ 175.9	$ 166.2

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
New prior service cost	$ (0.7)	$ (5.1)	$ 31.4
Amortization of net loss	(1.2)	(1.8)	(2.5)
Amortization of prior service cost	1.3	1.3	1.3
Effect of one percentage point change in the assumed health care cost trend rates
Effect of one percentage point increase on total of service and interest cost components	0.9	0.9	0.7
Effect of one percentage point increase on post-retirement benefit obligation	11.5	9.4	10.0
Effect of one percentage point decrease on total of service and interest cost components	(0.7)	(0.7)	(0.5)
Effect of one percentage point decrease on post-retirement benefit obligation	$ (8.3)	$ (7.4)	(7.8)
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Discount rate used to determine obligation (as a percent)	3.40%	3.40%
Pensions
Components of Net Periodic Benefit Costs:
Service cost	$ 3.9	$ 3.3	3.3
Interest cost	9.7	9.5	9.4
Expected return on plan assets	(13.4)	(14.0)	(14.1)
Amortization of net loss	5.5	6.4	3.0
Amortization of prior service cost	(2.3)	(2.3)	(2.3)
Net periodic benefit cost	3.4	2.9	(0.7)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
Net loss (gain)	1.6	(1.0)	25.4
New prior service cost		0.1
Amortization of net loss	(3.3)	(3.9)	(1.8)
Amortization of prior service cost	1.4	1.4	1.4
Total recognized in other comprehensive income	(0.3)	(3.4)	25.0
Total recognized in net periodic benefit cost and other comprehensive income	$ 3.1	$ (0.5)	$ 24.3
Weighted Average Assumptions:
Discount rate (as a percent)	4.40%	4.50%	4.10%
Expected return plan assets (as a percent)	8.00%	8.00%	8.25%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Projected benefit obligation change			$ 17.6
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)			17.6
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	$ 225.4	$ 220.2	237.4
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(49.1)	(50.8)
Amount recognized as prior service credit, net of tax	7.7	9.1
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost	(41.4)	(41.7)
Other Post-retirement Benefits
Components of Net Periodic Benefit Costs:
Service cost	1.5	1.5	1.1
Interest cost	2.7	2.5	2.6
Amortization of net loss	1.2	2.2	0.6
Net periodic benefit cost	5.4	6.2	4.3
Current liabilities	2.7	2.5
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
Net loss (gain)	1.2	(1.9)	5.9
Amortization of net loss	(0.8)	(1.3)	(0.4)
Total recognized in other comprehensive income	0.4	(3.2)	5.5
Total recognized in net periodic benefit cost and other comprehensive income	$ 5.8	$ 3.0	$ 9.8
Weighted Average Assumptions:
Discount rate (as a percent)	4.60%	4.60%	4.20%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Initial health care cost trend rate (as a percent)			7.10%
Initial health care cost trend rate, Pre-65 group (as a percent)	6.60%	6.80%
Initial health care cost trend rate, Post-65 group (as a percent)	7.20%	7.60%
Ultimate health care cost trend rate (as a percent)	4.40%	4.40%	4.50%
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	$ 63.6	$ 60.5	$ 62.6
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(4.4)	(4.7)
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost	(4.4)	(4.7)
Qualified Pension Plans
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	223.2	218.0
Nonqualified Pensions Benefits
Components of Net Periodic Benefit Costs:
Current liabilities	1.0	1.2
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(0.8)	(0.8)
Amount recognized as prior service credit, net of tax	0.4	0.6
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost	$ (0.4)	$ (0.2)
Post Retirement
Weighted Average Assumptions:
Projected benefit obligation change			3.9
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)			$ 3.9

PENSION AND POST-RETIREMENT PLANS - ESTIMATED BENEFIT PAYMENTS (Details) $ in Millions	Dec. 31, 2016 USD ($)
Estimated future benefit payments
2017	$ 4.1
2018	4.1
2019	4.1
2020	4.1
2021	4.1
2022-2026	76.3
Total future payments	96.8
Pensions
Estimated future benefit payments
2017	12.4
2018	12.8
2019	13.1
2020	13.4
2021	13.7
2022-2026	73.0
Total future payments	138.4
Nonqualified Pensions Benefits
Estimated future benefit payments
2017	1.0
2018	1.1
2019	0.2
2020	0.5
2022-2026	2.7
Total future payments	5.5
Post Retirement
Estimated future benefit payments
2017	2.7
2018	2.8
2019	2.9
2020	3.0
2021	3.1
2022-2026	16.7
Total future payments	$ 31.2

PENSION AND POST-RETIREMENT PLANS - DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
401(K) plan
Defined Contribution Plans
Employer matching contribution (as a percent)	6.00%
Employer matching contribution expenses	$ 2.1	$ 2.0	$ 1.6
Profit sharing plan
Defined Contribution Plans
Profit sharing expense recorded	$ 0.0	$ 1.9	$ 1.6

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Multiemployer Plans
Multiemployer Plans, Accumulated Benefit Obligation	$ 220.8
Benefit plan withdrawal obligation	64.2
Minimum
Multiemployer Plans
Employer matching contribution to MEBA Pension Trust (as a percent)				11.70%
Multiemployer Benefit Pension Plans
Multiemployer Plans
Contributions of Matson	$ 22.7	$ 17.8	$ 13.1
Multiemployer Benefit Pension Plans \| Minimum \| Green Zone
Multiemployer Plans
Funded status of multiemployer plan (as a percent)	80.00%
Multiemployer Benefit Pension Plans \| Maximum \| Red Zone
Multiemployer Plans
Funded status of multiemployer plan (as a percent)	65.00%
Multiemployer Benefit Pension Plans \| Maximum \| Yellow Zone
Multiemployer Plans
Funded status of multiemployer plan (as a percent)	80.00%
Multiemployer Benefit Pension Plans \| Hawaii Terminals Multiemployer Pension Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	$ 5.3	4.9	5.1
Multiemployer Benefit Pension Plans \| Hawaii Stevedoring Multiemployer Retirement Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	3.5	2.8	2.9
Multiemployer Benefit Pension Plans \| Master Mates And Pilots Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	3.1	2.2	1.9
Multiemployer Benefit Pension Plans \| Masters, Mates and Pilots Adjustable Pension Plan
Multiemployer Plans
Contributions of Matson	1.8	1.7	1.0
Multiemployer Benefit Pension Plans \| O C U Trust Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.2	0.1	0.1
Multiemployer Benefit Pension Plans \| SIU Pacific District Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.6
Multiemployer Benefit Pension Plans \| Alaska Teamster - Employer Pension Plan \| Red Zone
Multiemployer Plans
Contributions of Matson	2.6	1.5
Multiemployer Benefit Pension Plans \| All Alaska Longshore Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.1	0.5
Multiemployer Benefit Pension Plans \| Western Conference of Teamsters Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	1.3	0.8
Multiemployer Benefit Pension Plans \| O P E I U Local 153 Pension Plan \| Red Zone
Multiemployer Plans
Contributions of Matson	0.1	0.1
Multiemployer Health and Benefit Plans
Multiemployer Plans
Contributions of Matson	22.5	18.1	11.1
Multiemployer Health and Benefit Plans \| Stevedore Industry Committee Welfare Benefit Plan
Multiemployer Plans
Contributions of Matson	4.9	3.8	3.1
Multiemployer Health and Benefit Plans \| O C U Health and Welfare Trust
Multiemployer Plans
Contributions of Matson	0.3	0.2	0.2
Multiemployer Health and Benefit Plans \| S U P Welfare Plan, Inc.
Multiemployer Plans
Contributions of Matson	3.1	2.9	2.7
Multiemployer Health and Benefit Plans \| M E B A Medical and Benefits Plan
Multiemployer Plans
Contributions of Matson	2.9	2.2	1.8
Multiemployer Health and Benefit Plans \| M F O W Welfare Fund
Multiemployer Plans
Contributions of Matson	1.4	1.3	1.2
Multiemployer Health and Benefit Plans \| A R A Pension and Welfare Plan
Multiemployer Plans
Contributions of Matson	0.7	0.5	0.5
Multiemployer Health and Benefit Plans \| Masters, Mates and Pilots Health and Benefit Plan
Multiemployer Plans
Contributions of Matson	2.9	2.3	1.6
Multiemployer Health and Benefit Plans \| Seafarers Health and Benefits Plan
Multiemployer Plans
Contributions of Matson	3.1	1.8
Multiemployer Health and Benefit Plans \| Alaska Teamster - Employer Welfare Trust
Multiemployer Plans
Contributions of Matson	2.0	1.2
Multiemployer Health and Benefit Plans \| All Alaska Longshore Health and Welfare Trust Fund
Multiemployer Plans
Contributions of Matson	0.2	1.3
Multiemployer Health and Benefit Plans \| Western Teamsters Welfare Trust
Multiemployer Plans
Contributions of Matson	1.0	0.6
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Red Zone
Multiemployer Plans
Contributions of Matson		$ 3.2
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	$ 4.1		$ 2.1

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED CONTRIBUTION PLANS (Details) - Multi-employer defined contribution pension plans $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) plan	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Defined Contribution Plans
Number of Multiemployer Plans \| plan	6
Employer contributions \| $	$ 5.3	$ 3.8	$ 3.0

MULTI-EMPLOYER WITHDRAWAL LIABILITY (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Estimated future benefit payments
2017	$ 4.1
2018	4.1
2019	4.1
2020	4.1
2021	4.1
Thereafter	76.3
Total future payments	96.8
Less: amount representing interest	(32.6)
Present value of remaining withdrawal liability	64.2
Current portion of withdrawal liability	(4.1)	$ (4.1)
Long-term portion of withdrawal liability	60.1
Horizon
Multiemployer withdrawal liability
Quarterly payments to ILA-PRSSA over an estimated period	$ 1.0

SHARE-BASED AWARDS - SUMMARY (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) plan $ / shares shares
Stock options
Activity in the entity's stock option plans
Outstanding, beginning of period (in shares)	461
Exercised (in shares)	128
Forfeited and expired (in shares)	9
Outstanding, end of period (in shares)	324
Exercisable, end of period (in shares)	324
Weighted average exercise price
Outstanding, weighted average exercise price, beginning of period (in dollars per share) \| $ / shares	$ 21.90
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	22.53
Forfeited and expired, weighted average exercise price (in dollars per share) \| $ / shares	20.84
Outstanding, weighted average exercise price, end of period (in dollars per share) \| $ / shares	21.67
Exercisable, weighted average exercise price, end of period (in dollars per share) \| $ / shares	$ 21.67
Outstanding, weighted average contractual life, end of period	3 years 3 months 18 days
Exercisable, weighted average contractual life, end of period	3 years 3 months 18 days
Outstanding, aggregate intrinsic value, end of period (in dollars) \| $	$ 4,437
Exercisable, aggregate intrinsic value, end of period (in dollars) \| $	$ 4,437
Restricted Stock Units
Share-based compensation
Options granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	$ 34.70
Restricted Stock Units \| Automatic Grant Program \| Minimum
Share-based compensation
Vesting period of awards granted	1 year
Restricted Stock Units \| Automatic Grant Program \| Maximum
Share-based compensation
Vesting period of awards granted	3 years
2016 Plan
Share-based compensation
Common stock initially available for future issuance (in shares)	2,500
Number of separate incentive compensation programs \| plan	4
Number of share based compensation plans within the entity's incentive compensation programs \| plan	3
2007 Plan \| Discretionary Grant Program
Share-based compensation
Minimum exercise price as a percentage of fair market value of common stock	100.00%
Exercisable period	3 years
Expiration Term	10 years
2007 Plan \| Stock options
Activity in the entity's stock option plans
Outstanding, beginning of period (in shares)	403
Exercised (in shares)	75
Forfeited and expired (in shares)	9
Outstanding, end of period (in shares)	319
Exercisable, end of period (in shares)	319
2007 Plan \| Time-Based Restricted Stock Units \| Stock Issuance Program
Share-based compensation
Vesting period of awards granted	3 years
2007 Plan \| Performance-Based Restricted Stock Units \| Stock Issuance Program
Share-based compensation
Vesting period of awards granted	3 years
1998 Plan \| Stock options
Activity in the entity's stock option plans
Outstanding, beginning of period (in shares)	42
Exercised (in shares)	37
Outstanding, end of period (in shares)	5
Exercisable, end of period (in shares)	5
Predecessor Plan 1998 Directors' Plan \| Stock options
Activity in the entity's stock option plans
Outstanding, beginning of period (in shares)	16
Exercised (in shares)	16
Outstanding, end of period (in shares)	0

SHARE-BASED AWARDS - RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	678
Granted (in shares)	463
Vested (in shares)	(416)
Cancelled (in shares)	(5)
Outstanding, end of period (in shares)	720
Weighted Average Grant-Date Fair Value
Outstanding, weighted average grant-date fair value, beginning of period (in dollars per share) \| $ / shares	$ 29.21
Granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	34.70
Vested, weighted average grant-date fair value (in dollars per share) \| $ / shares	27.85
Cancelled, weighted average grant-date fair value (in dollars per shares) \| $ / shares	34.36
Outstanding, weighted average grant-date fair value, end of period (in dollars per shares) \| $ / shares	$ 33.35
2007 Plan
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	678
Granted (in shares)	444
Vested (in shares)	(416)
Cancelled (in shares)	(5)
Outstanding, end of period (in shares)	701
2016 Plan
Non-vested restricted stock unit activity
Granted (in shares)	19
Outstanding, end of period (in shares)	19

SHARE-BASED AWARDS - EXPENSE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based expense (net of estimated forfeitures)
Total share-based expense	$ 9.8	$ 12.2	$ 8.7
Total recognized tax benefit	(3.8)	(4.8)	(3.4)
Total Share-based expense (net of tax)	6.0	7.4	5.3
Cash received by Matson upon option exercise	1.2	2.2	5.8
Intrinsic value of options exercised	2.0	9.2	3.4
Tax benefit realized upon option exercise	5.9	3.4	1.9
Fair value of stock vested	15.8	8.6	5.0
Non-vested stock and restricted stock units
Share-based expense (net of estimated forfeitures)
Total share-based expense	9.8	12.2	8.4
Non-vested restricted stock units and performance-based equity awards
Share-based expense (net of estimated forfeitures)
Unrecognized compensation cost	$ 11.3
Unrecognized compensation cost, weighted average period for recognition	1 year 9 months 18 days
Stock options
Share-based expense (net of estimated forfeitures)
Total share-based expense			0.3
Total recognized tax benefit	$ (2.2)	$ (2.6)	$ (0.8)
Unrecognized compensation cost	$ 0.0

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2016 USD ($) item
Commitments, Guarantees and Contingencies
Standby letters of credit	$ 11.2
Benefit plan withdrawal obligation	64.2
Construction of vessels obligations	803.9
Other capital obligations	$ 26.9
Number of new vessels to be constructed \| item	4
State of Hawaii investigation
Environmental Matters
Settlement amount	$ 0.7
Benefit plan withdrawal obligations
Commitments, Guarantees and Contingencies
Benefit plan withdrawal obligation	220.8
U.S. Customs bond
Commitments, Guarantees and Contingencies
Bonds	$ 32.7

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended								12 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment results
Fiscal Period Duration									371 days	364 days	364 days
Number of reportable segments \| segment									2
Operating Revenue	$ 519.3	$ 500.4	$ 467.7	$ 454.2	$ 494.8	$ 544.3	$ 447.6	$ 398.2	$ 1,941.6	$ 1,884.9	$ 1,714.2
Operating Income	36.3	46.2	36.1	34.6	45.9	71.8	33.7	44.9	153.2	196.3	140.0
Interest expense, net	(6.7)	(6.0)	(6.5)	(4.9)	(4.9)	(4.7)	(4.6)	(4.3)	(24.1)	(18.5)	(17.3)
Income before Income Taxes	29.6	40.2	29.6	29.7	41.0	67.1	29.1	40.6	129.1	177.8	122.7
Income tax expense	(10.2)	(15.2)	(11.6)	(11.6)	(14.4)	(25.6)	(19.2)	(15.6)	(48.6)	(74.8)	(51.9)
Net Income	19.4	25.0	18.0	18.1	26.6	41.5	9.9	25.0	80.5	103.0	70.8
Assets	2,015.5				1,669.8				2,015.5	1,669.8	1,401.8
Capital Expenditures									179.4	67.8	27.9
Depreciation and Amortization									97.1	83.4	69.7
Deferred dry-docking amortization									(38.9)	(23.1)	(21.1)
Depreciations and amortizations including deferred dry-docking amortizations									$ 136.0	$ 106.5	$ 90.8
Ocean Transportation
Segment results
Fiscal Period Duration									371 days	364 days	364 days
Operating Revenue	406.1	398.0	370.9	366.1	401.0	444.8	346.7	305.5	$ 1,541.1	$ 1,498.0	$ 1,278.4
Operating Income	31.7	42.7	33.9	33.0	43.6	68.9	31.4	43.9	141.3	187.8	131.1
Assets	1,722.2				1,601.0				1,722.2	1,601.0	1,313.9
Capital Expenditures									179.1	67.5	27.8
Depreciation and Amortization									92.6	81.4	66.6
Deferred dry-docking amortization									38.9	23.1	21.1
Ocean Transportation \| SSAT
Segment results
Equity in earnings from affiliates	15.8				16.5				15.8	16.5	6.6
Equity method investments	82.4				66.4				82.4	66.4	64.4
Logistics
Segment results
Operating Revenue	113.2	102.4	96.8	88.1	93.8	99.5	100.9	92.7	400.5	386.9	435.8
Operating Income	4.6	$ 3.5	$ 2.2	$ 1.6	2.3	$ 2.9	$ 2.3	$ 1.0	11.9	8.5	8.9
Assets	$ 293.3				$ 68.8				293.3	68.8	87.9
Capital Expenditures									0.3	0.3	0.1
Depreciation and Amortization									$ 4.5	$ 2.0	$ 3.1

QUARTERLY INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly information by segments
Operating Revenue	$ 519.3	$ 500.4	$ 467.7	$ 454.2	$ 494.8	$ 544.3	$ 447.6	$ 398.2	$ 1,941.6	$ 1,884.9	$ 1,714.2
Operating Income	36.3	46.2	36.1	34.6	45.9	71.8	33.7	44.9	153.2	196.3	140.0
Interest expense	(6.7)	(6.0)	(6.5)	(4.9)	(4.9)	(4.7)	(4.6)	(4.3)	(24.1)	(18.5)	(17.3)
Income before Income Taxes	29.6	40.2	29.6	29.7	41.0	67.1	29.1	40.6	129.1	177.8	122.7
Income tax expense	(10.2)	(15.2)	(11.6)	(11.6)	(14.4)	(25.6)	(19.2)	(15.6)	(48.6)	(74.8)	(51.9)
Net Income	19.4	$ 25.0	$ 18.0	$ 18.1	26.6	$ 41.5	9.9	$ 25.0	$ 80.5	$ 103.0	$ 70.8
Molasses Settlement	$ (0.7)				$ (1.9)		$ (11.4)
Net Income, Earnings Per Share:
Basic Earnings Per-Share: (in dollars per share)	$ 0.45	$ 0.58	$ 0.42	$ 0.42	$ 0.61	$ 0.95	$ 0.23	$ 0.58	$ 1.87	$ 2.37	$ 1.65
Diluted Earnings Per-Share: (in dollars per share)	$ 0.44	$ 0.58	$ 0.42	$ 0.41	$ 0.60	$ 0.94	$ 0.23	$ 0.57	$ 1.85	$ 2.34	$ 1.63
Span Alaska
Quarterly information by segments
Acquisition Related Selling, General and Administrative Costs	$ (0.2)	$ (2.6)	$ (0.1)	$ (0.1)					$ (3.0)
Horizon
Quarterly information by segments
Acquisition Related Selling, General and Administrative Costs					$ (1.5)	$ (5.1)	$ (12.4)			$ (19.0)
Ocean Transportation
Quarterly information by segments
Operating Revenue	406.1	398.0	370.9	366.1	401.0	444.8	346.7	$ 305.5	1,541.1	1,498.0	$ 1,278.4
Operating Income	31.7	42.7	33.9	33.0	43.6	68.9	31.4	43.9	141.3	187.8	131.1
Logistics
Quarterly information by segments
Operating Revenue	113.2	102.4	96.8	88.1	93.8	99.5	100.9	92.7	400.5	386.9	435.8
Operating Income	$ 4.6	$ 3.5	$ 2.2	$ 1.6	$ 2.3	$ 2.9	$ 2.3	$ 1.0	$ 11.9	$ 8.5	$ 8.9